740.00119 EW/7–1047: Telegram
The Secretary of State to the United States Delegate to the Inter-Allied Reparation Agency ( Dorr ) at Brussels
urgent
962. For Dorr. Following is text OMGUS message received in response Wash comments on level of industry discussions97 (draft this message transmitted with Todd’s letter June 1998).
“Re WDSCA rad WX–81354.99
“I find it difficult to know whether paragraphs 2 and 3 are to govern our actions or if our actions are to be governed by paragraph 6. Both objectives cannot be accomplished at the same time. It is obvious that the revised level of industry will not leave very much of importance for IARA nations in the form of completed and usable German capital equipment of the type which they desire. While it will leave substantial steel and miscellaneous plants and separate machinery, it is apparent that the IARA nations are more interested in those plants in Germany which are important to German export and to immediate European needs. If the delivery of such plants to IARA nations is the governing factor as implied in paragraph 6, request you advise [Page 1109] us as to the minimum deemed essential for IARA nations, as this would automatically fix the level of industry to be left in Germany. Our calculations have not been based on delivering any specified quantities to IARA nations. They have been on the need for a German industry which will provide a self supporting economy with a low but reasonable standard of living which will contribute to European recovery. We are fully prepared to carry out any instructions relative to meeting IARA needs but we cannot negotiate under indefinite instructions which approve a revised level of industry only in the understanding that it also produces substantial reparation deliveries of complete and usable German capital equipment to carry out previous US commitments to IARA countries. Since these commitments were made by our government we feel that we should be advised as to what in its opinion will constitute their fulfillment. It is certain that in any event IARA countries will feel that they have not received their needs.
“Reply to detailed inquiries in urad will be made soonest.”1
Request ur comments urgently.
- Pursuant to an American-British agreement reached during the Fourth Session of the Council of Foreign Ministers in Moscow, March–April 1947, American and British occupation authorities in Germany had undertaken negotiations for a new level of industry plan for the western zones of Germany. Tentative agreement on a new plan was reached in early July. For documentation regarding the new level of industry plan, see pp. 977 ff.↩
- Not printed.↩
- In response to certain questions raised by American occupation authorities, a War Department cable was sent to General Clay [WX–81354, July 2, 1947, not printed] setting forth in paragraphs 1–3 certain considerations which were to guide him in determining the German requirements for capital equipment in order to enable Germany to contribute to European economic recovery and to become self-sustaining. Paragraph 6 of the cable, however, stated that the instructions were to be interpreted subject to the reservation that the new level of industry was to produce substantial reparation for the countries of the Inter-Allied Reparation Agency.↩
- The message quoted here was telegram CC–9790, July 6, 1947, from General Clay in Berlin to the War Department.↩