862.6362/9–1247: Telegram
The Political Adviser for Germany (Murphy) to the Acting Secretary of State
secret
urgent
Berlin, September 12, 1947—10 p.m.
3087. Personal for Lovett.
Below is text of cable71
OMGUS to War reporting results Berlin coal discussions.
Three principal points have been covered in tripartite coal talks
with agreement on first two. We are able to meet French requirements
for coke to their complete satisfaction. We have also reviewed
French proposals for withdrawal of Saar coal and consider them
acceptable. Concomitant adjustment of sliding scale to reflect such
withdrawals similarly agreed. All Saar discussions on hypothetical
basis with French readily admitting that no withdrawals would be
made until settlement Saar status.
[Page 1094]
Agreement on coke reads as follows:
- “1. The three delegations considered the requirements
of coke exports as submitted by the French delegation
and agreed that those requirements were within the
capacity of the German coking industry at the levels of
production of the coal industry as anticipated in the
reply given to the Committee of European Economic
Cooperation.
- “2. They recommend that a statement be made to ECO or its successor
organization that when the daily gross clean hard coal
output of the Ruhr and Aachen reaches 300,000, 330,000,
350,000 and 400,000 tons per day, the bizonal
authorities will be able to include within the total
export of net merchantable fuel 7.6, 8.4, 9.2 and ten
million tons of coke respectively, if in fact this
tonnage of coke is required by the member countries of
the organization.
- “3. At the same time the members of the organization
should be informed that if this proportion of coke is
exported to the receiving countries, it will be
necessary to alter the proportions of other qualities of
fuel made available for export.
- “4. The attention of ECO or its successor organization should be
drawn to the fact that the increased proportion of coke
exports may tend to accentuate the already apparent
transport difficulties owing to the greater bulk of coke
as compared with coal.
- “5. In the event that the increased coking program
necessary to meet the estimated total coke requirement
for both indigenous and export consumption results in
the bizonal area being unable to utilize economically
the whole production of gas, the export tonnage level
shall be adjusted to account for the losses of gas due
to such excess coke production caused by export
demands.
- “6. Any surplus gas arising from the circumstances
referred to in paragraph five above and exported from
Germany shall be calculated on an equivalent coal
tonnage value and deducted from the German coal
deliveries to the nation importing the gas.”
Agreement on Saar hypothesis reads as follows:
- “1. As a hypothesis, which it would be useful to look
into without commitment pending discussions at
government level, the three delegations examined the
French proposals for the gradual removal of Saar
production from the German pool.
- “2. It was agreed that the time factor envisaged in
the plan appeared a reasonable one from the experts
point of view on the assumption that it would come into
force before the allocations are adopted for the first
quarter of 1948 and did not reach its finality until
Ruhr-Aachen output reached 330,000 tons per day, which
is the output envisaged during the fourth quarter of
1949 in the replies made by the bizonal authorities to
the Committee of European Economic Cooperation.
- “3. The three delegations examined the figures
included in the French proposals for the French zone and
the Saar internal requirements. The figures show an
increase in consumption in the truncated French zone of
approximately 20% over the range of the table. The three
delegations felt that this was acceptable.
- “4. The French delegation point out that the table has
been calculated on the basis that the French zone’s
proportion of the net merchantable fuel available to the
three western zones is 12.5% as calculated in the table
submitted by the British delegation, but that this does
not prejudice the possibility of future
adjustments.”
Salient portions of Saar tables are (one thousand metric tons):
| Ruhr-Aachen Daily Output |
Annual Saar Contribution to German Pool |
Percent of Bizonal Net Merchantable Production to be
Shipped to Export and French Zone |
| 250 |
5897 |
22. 4 |
| 260 |
5700 |
22. 7 |
| 270 |
5058 |
23. 3 |
| 280 |
4279 |
24. 1 |
| 290 |
3936 |
24. 2 |
| 300 |
2980 |
24. 9 |
| 310 |
2322 |
25. 5 |
| 320 |
1404 |
26. 2 |
| 330 |
|
27. 3 |
On last point, regarding projection of Moscow
sliding scale, after most careful bizonal scrutiny of minimum
requirements we reached conclusion that not even present 25% top
export rate could be justified during period of Ruhr-Aachen
production increase from 330,000 to 400,000 tons daily, if we were
to reach full level of industry output when coal production reached
400,000. However, in view of our instructions, we offered to
maintain 25% export rate from 330,000 to 440,000 although this means
deferring attainment new level of industry until 440,000 ton figure
reached, which to all practical purposes would nullify its
establishment. We accept that maximum production of 440,000 tons
must be reached in Germany for new level of industry to be reached
in full, but do not see how we can do any more. We asked French to
accept our undertaking (a) not to cut export rate below present top
of sliding scale and (b) to reexamine entire position when factors
involved can be more accurately assessed.
Sergent expressed satisfaction
with friendly manner in which meeting had been conducted but said
there would be disappointment over inability to agree on projection
of sliding scale at higher percentage. He will go to Paris to
discuss situation in detail and expects return here early next week.
We made it quite plain that all agreements of conference must be
accepted as a whole in satisfaction of French reservations at
London, and that while not asking for a public announcement of
acceptance of the new level of industry, we would expect no sniping
from government quarters. Unless we received such assurances we said
we could not undertake to ratify any of the agreements of the
conference.
[Page 1096]
An agreed tripartite announcement was issued this morning as follows:
- “1. The tripartite conference on coal and coke which,
as the outcome of the recent London conference has been
meeting in Berlin for the past few days, has considered
the various aspects of the questions which were referred
to it.
- “2. The conclusions reached and matters still pending
will require further study and consultation before a
final announcement can be made, including reference to
the respective governments. It is expected that further
meetings of the conference will take place in the coming
week.”
French particularly asked that nothing be said to the press beyond
this announcement.
Sent Department personal for Lovett as 3087, to London personal for Douglas 333, to Paris personal for
Caffery as 408.
