862.515/11–1347: Telegram

The Acting Secretary of State to the Embassy in France

secret
urgent

4314. British Emb Washington has communicated to Dept its Government’s suggested course of action with French concerning introduction French currency Saar (reDeptel 4229, Nov 1379). First step would be parallel UK–US representations Paris designed persuade French to take no immediate action under powers voted by Assembly and urging postponement currency exchange.

After you have concerted with British colleague, make immediate representations to French along following lines: by aide-mémoire of Nov 580 Dept made known to French Emb its position regarding Saar currency. Since that time French Govt has received from Assembly necessary authorization to introduce French currency into Saar. This has not changed Dept position. Actual change of currency would be a further and most important step toward economic incorporation of Saar into France. Since French, UK and US deputies CFM have agreed to placing German boundary questions on CFM agenda, US considers currency change would be inappropriate immediately before CFM meeting and would give some justification to claim that unilateral action on boundaries had been taken. US, therefore, urges that French refrain from implementing Assembly action prior to clarification of CFM results.

For your info only, British further suggest “If these representations failed, a formal protest coupled with a statement that pending the outcome of the CFM, HMG and the USG would be willing to leave present arrangements for interzonal trade undisturbed provided that the French for their part would undertake: (a) not to alter the present basis of that trade by diverting to France that part of Saar production [Page 1101] which now goes to the Combined Zone, and (b) not to ask that exports from the Saar to the Combined Zones be credited to the French offset account.”81

Reptd. to Berlin and London for Emb and Secdel.

Lovett
  1. Ante, p. 1098.
  2. The substance of the Department’s aide-mémoire under reference is set forth in telegram 4229, November 13, to Paris, p. 1098.
  3. In his telegram 5040, November 24, from Paris, not printed, Ambassador Caffery reported that the British Embassy in Paris had not received instructions regarding parallel American-British representations to the French Government (862.515/11–2447). Telegram 4386, December 2, to Paris, not printed, replied that since the Saar currency exchange had been announced by the French in the Allied Control Council for Germany and in view of the British Embassy’s lack of instructions, it was believed by the Department that there would be no useful purpose in further protest or representations in Paris (862.515/11–2447).