862.515/11–1547: Telegram

The Ambassador in France (Caffery) to the Secretary of State

confidential
urgent

4899. After brief debate Assembly yesterday voted 416 to 184 a law introduced by government establishing French franc as currency of Saar region (mytel 4855, November 1377).

This law was suddenly deposited in Assembly; jammed through Foreign Affairs and Finance Committees yesterday morning; debated and passed by Assembly yesterday afternoon; immediately referred to Council of Republic and passed by that body last night.

In his speech defending measure M. Bidault, replying to arguments that measure was premature since economic union of Saar with French had not yet been approved, said that new law was merely another preliminary measure and that he expected that approval of big powers would be received during coming session of Conference of Foreign Ministers. He added that in any case Saar question must be definitely and rapidly settled “and will be in any circumstances”. Bidault blamed Soviets exclusively for delay in approval and said “Allies had been kept informed of French intentions”. The only criticism of bill came from Communists who termed it unilateral decision on part of France re problem which could only be settled by great powers. Communist speakers went on to characterize proposed union of Saar with France as tip from US in reward for France’s giving up reparations and her proper share of Ruhr coal. Communists also charged that law would require issuing of 48 billion francs in additional currency and place unbearable burden on neighboring French departments, which would now have to feed Saar population.

[Page 1100]

Law provides that entry into effect will be determined by later decrees but in debate Bidault indicated government’s intention of implementing law without delay.78

Sent Department 4899; repeated London 839, to Moscow 531 and Berlin 422.

Caffery
  1. Not printed.
  2. French currency was introduced into the Saar on November 20. The French representative on the Allied Control Council for Germany announced the action at the Council’s 75th Meeting, November 21; see telegram 3611, November 22, from Berlin, p. 900.