862.00/11–1047
Memorandum of Conversation, by the Associate Chief of the Division of Western European Affairs ( Wallner )
Mr. Berard was invited to call at the Department to receive the Department’s oral reply to the French Embassy’s aide-mémoire of November 19, 194782 concerning the introduction of franc currency in the Saar.
Mr. Wallner made the following points:
- (1)
- by aide-mémoire dated November 5, 1947 the Department informed the French Embassy of its view that any change in the status of the Saar should be effected in an orderly and agreed manner and that pending such agreed change of status the US would continue to treat the Saar as part of the French zone for purposes of trade in the bizonal area;
- (2)
- the US Government has at no time agreed to the introduction of the franc into the Saar;
- (3)
- the Department reaffirms the position stated in its aide-mémoire of November 5 and accordingly sees no useful purpose in the French suggestion for a meeting of experts in London to discuss the consequences of the currency conversion, and
- (4)
- in respect to the new element in the French aide-mémoire regarding a change in the administration of the Saar mines, the Department fully reserves its position.
Mr. Wallner added that while the French aide-mémoire had indicated British agreement with the French position and with the French suggestion for a conference of experts, conversations with the British Embassy gave the definite impression that the British Government, like our own, regarded the introduction of the franc into the Saar as premature and inopportune.
[Page 1102]Mr. Berard took careful note of the above remarks and replied that he regretted the impression that apparently prevailed in the Department to the effect that the French Government was seeking to obtain the retroactive acquiescence of the US Government to the currency conversion. He stated that the currency conversion had not been decided on for the purpose of forcing American recognition of a further step in the incorporation of the Saar into the French economy. He said that the decision had been taken for purely technical reasons based on the present favorable sentiments of the Saar population towards France, sentiments which might later prove less favorable to such conversion. He said he quite understood the American position in refusing to recognize the conversion but that he was deeply disturbed at the practical implications of our refusal to discuss the effects of this conversion on trade between the Saar and the bizonal area. He expressed his fear that this would cause disruption of the normal economic exchanges between the two regions, possibly to the detriment of the American zone.
Mr. Wallner replied that the French should not worry too much about the American zone. He added that whatever the reasons for the conversion, it had created a very poor impression in Washington and that it would appear to be the part of wisdom for the French Government in these difficult times to avoid steps concerning Germany which produced friction with the British and American Governments.
In parting Mr. Berard again expressed his concern at the practical effects of our refusal to discuss the consequences of the conversion on trade between the Saar and the bizonal area.