Office of the Historian

862.6362/10–147: Telegram

The Political Adviser for Germany (Murphy) to the Director of the Office of European Affairs (Hickerson)

secret
Berlin, October 1, 1947—8 p.m.

3244. Personal for Hickerson. The following cable was sent September 30 by General Clay to War:

“Reference your WX 87,260.72

“Please inform State Department that we have just been advised by French Military Government that draft of agreement under discussion by tripartite coal conference has been referred to Bidault in New York and will probably be taken up with State Department. We are surprised that matter still under discussion here should be referred to such high governmental level, but under circumstances request you inform State as follows:

“Our cable CC–157273 of September 11 outlined progress in coal talks at that date. Since then two sessions have been held in attempt to formulate mutually acceptable statement of extension of Moscow sliding scale and Sergent took with him to Paris for clearance with Alphand our proposed draft communiqué which reads:

  • “‘1. In order to take account of the reservations made by the French Government during the tripartite talks in London on the bizonal level of industry, discussions have now taken place in Berlin between the French, American and British authorities on the distribution of coal and coke from western Germany.
  • “‘2. The French delegation asked that there should be an adjustment of the present arrangements to permit of a greater proportion of coke in the present export allocation. It was agreed that such an adjustment can be made, and the bizonal authorities have undertaken to export coke, if required by the importing countries, as follows:
  • “‘When daily gross clean hard coal output in the Ruhr-Aachen reaches 300,000 tons, to export 7.6 million tons of coke; 330,000 tons, to export 8.4 million tons of coke.
  • “‘It is anticipated that with hard coal output rising above 330,000 tons daily, coke exports can be increased further in accordance with the requirements put forward in the conversations.
  • “‘3. With regard to the projection of the scale to show allocations for export when production rises to higher figures than those shown on the scale, it was agreed that it would not be advantageous to settle this matter definitely at this stage. The rate at which coal production can be increased is difficult to foresee. Likewise, the pace at which bizonal economy can be brought up to the level established by the new bizonal plan is difficult to assess, though it has been agreed that it shall be at a pace not greater than that at which the recovery of the democratic countries of Europe takes place.
  • “‘It was agreed to extend the operation of the present sliding scale to the end of 1948, at which time, at the latest, its extension will be examined.
  • “‘The British and American representatives gave assurances that they would participate in this latter examination with full sympathy for the needs of the democratic countries of Europe and with a view to establishing export allocations at not lower than the percentage obtaining at the top of the present sliding scale.
  • “‘During the period in which coal production is increasing to 440,000 tons daily every effort will be made to obtain increased efficiency in the utilization of coal so as to make an export target of 30 percent possible thereafter. This percentage would be calculated on the same basis as the percentages in the present sliding scale.’

“We have had no reaction from Paris until advice today that matter had been referred to Bidault in New York.74

“Our most careful calculations indicate that our undertaking to maintain 25 percent export ratio until Ruhr-Aachen production [Page 1098] reaches 440,000 tons daily will not give us sufficient coal to attain new level of industry until 440,000 ton output is achieved. We have therefore been unwilling to consider any undertaking to increase export percentage until 440,000 ton level is reached. As indicated in the last paragraph of draft communiqué, we are prepared to envisage 30 percent for exports thereafter.

“French have indicated that even if we reached agreement on sliding scale extension, they would still wish to take up with us their reservation on the level of machine tool production, the manufacture of chlorine, and on the matter of prohibited industries. We stated that we would be glad to discuss these matters at any time, but that agreement in such discussions could not be made a condition for acceptance of the level of industry plan. We expressly stipulated that agreement on the three points on the agenda must be accepted in full satisfaction of the official French reservations.”

Sent Department 3244, Paris personal for Caffery by air pouch.

Murphy
  1. Not printed.↩
  2. The text of telegram CC–1572 was transmitted in telegram 3087, September 12, from Berlin, p. 1093.↩

  3. Foreign Minister Bidault headed the French Delegation to the Second Regular Session of the United Nations General Assembly, meeting in New York, September 16–November 29, 1947. For the records of the Secretary of State’s conversations with Bidault in New York on September 18 and October 8, see pp. 680 and 682.

    Agreement on the communiqué regarding the Tripartite Berlin coal talks of September 1947 was reached in November, but final action on the communiqué was postponed pending a collateral agreement regarding the withdrawal of French reservations to the revised plan for the level of industry in the United States-United Kingdom zones of occupation of Germany; see telegram W–90954, November 22, to Berlin, and footnote 72, p. 725. Regarding the communiqué as finally released to the press on December 23, 1947, see the editorial note, p. 1103.

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