740.0011 EW Peace/3–447: Telegram
The Director of the Office of European Affairs (Matthews) to the Secretary of State 53
urgent
niact
963. From Matthews. I went over at some length with Chauvel and Couve de Murville yesterday various questions coming before the [Page 188] CFM meeting at Moscow. They seemed well informed of our view from reports of French Embassy at Washington. They had little to add on French position. They attach considerable importance to the Austrian Treaty and feel there is a fifty-fifty chance of completing it at Moscow. They believe the Soviet Govt really wants a treaty provided a satisfactory formula can be found on German assets. They agree with the British and with us that it is important for the Austrian deputies to start work immediately after the conference opens, particularly on the economic clauses. Even Gousev, they said, seemed agreeable.
They do not expect much agreement on German problems. They stress basic differences between Soviet position and US-British position on reparations; and on structure of permanent German Govt between US-French position and Soviet demands for high centralization.
On reparations they seem to have no firm position but are worried lest the Soviet plan for reparation from current production inevitably will result in building up Germany’s industrial machinery potential contrary to French security interests.
They stressed the importance they attach to discussions on coal and insist that they must have some idea of longer range coal allocations. They say that unless they know this they cannot estimate possibilities for executing the Monnet plan and they must know where they stand.
They said they would support our four power treaty but like the British desire to see such matters as level of industry included in the supervisory functions of the Control Mission. They will, I think, likewise try to tie in the treaty with their proposals on the Ruhr.
They expect the conference to last a month.
Repeated London 192 and Berlin 86.
- This telegram was sent through the facilities of the Embassy in Paris.↩