862.515/11–1347: Telegram
The Secretary of State to the Embassy in France
4229. Dept notified recently of French intention to introduce French currency in Saar middle Nov and requested therefore to negotiate new agreement on trade between bizonia and Saar providing for settlement any balances in dollars within framework trade offset payment agreement between bizonia and France. French given Aide-Mémoire75 expressing US surprise introduction French currency in Saar particularly in view expressed US intent to expedite tripartite decision on official change Saar status after CFM in connection trizonal fusion talks. US therefore could not recognize de facto incorporation Saar into French economy through introduction French currency by conclusion new trade agreement. Understood here Brit took same position. OMGUS advised to continue treating Saar trade as French zone trade.
On Nov 6 French submitted new note76 intimating intention to proceed despite US attitude and renewing request we participate in tripartite expert discussion in London to settle technical questions arising out of proposed French action. Present thinking here is to reaffirm [Page 1099] US position, to maintain we cannot recognize de facto or de jure French steps incorporating Saar into French economy in advance agreed decision on change in status of Saar. Before reaffirming this, Dept communicating through BritEmb with Brit govt to make sure latter concurs. Latter step thought necessary because French note claims Brit agreement to meeting of experts provided US agrees.
Sent to Paris and repeated to USPolAd, Berlin, as Depts. 2300 and to London for Murphy and Gallman as Depts. 4832.