840.50 Recovery/9–547: Telegram
The Secretary of State to the Embassy in the United Kingdom
us urgent
niact
3841. For Ambassador. War and State have agreed that economic plans of bizonal area should be discussed with CEEC with view to integrating bizonal area into a European recovery program.
Before making any announcement to CEEC, agreement with British obviously necessary. Pls take this matter up with Brit urgently to obtain their approval of joint statement to be made to CEEC substantially as follows:
“Answers have already been furnished to CEEC questionnaires covering the bizonal area of Germany administered by the US and UK. In addition, the CEEC has received the revised level of industry plan agreed between the US and UK for the bizonal area.1 The US and UK recognize that the CEEC, in developing a program for economic recovery, will discuss the various national plans and requirements of participating countries with a view to achieving the maximum European self-help and the most efficient use of existing facilities. The bizonal area in Germany potentially can make a substantial contribution to European recovery. Integration of the bizonal area into a European recovery program carried out by all participating countries will facilitate the contribution which the bizonal area can make while at the same time further the self-support of that area, which is a necessary part of European economic recovery.
The US and UK are therefore prepared to discuss with the CEEC the economic programs of the bizonal area to the same extent that CEEC discusses the plans and requirements submitted by the participating countries. The purpose of such discussions would be to develop recommendations as to the use of facilities in the bizonal area, the priorities in industrial reactivation and in the use and allocation of scarce materials in the same manner as CEEC is considering the same subjects with respect to the participating countries, all with the purpose of achieving an integrated recovery program covering both the participating countries and the bizonal area. The bizonal area cannot fulfill its potential of assistance to European recovery unless the needs of its presently depressed economy are recognized. It is to be understood that such discussions will be on a technical basis. Furthermore, the US and UK must always take into account their special responsibilities as occupying powers and the very large expense now involved in maintaining the bizonal area. Within the above principles, the US and UK are prepared to give careful consideration to recommendations made by CEEC with respect to integrating the bizonal area into a broader recovery program. The US further wishes to emphasize that its participation in such discussions is not to be construed as US Govt approval of any program that may be developed nor as [Page 410] any commitment with respect to US aid to carry out any recovery program.”
If Brit agree to joint statement,2 it is proposed that OMGUS representatives who are familiar with level of industry plan and economic situation in bizonal area would immediately join US representatives now attached to Paris Embassy to work on CEEC matters, with perhaps additional staff from War and State. Statement would be delivered to CEEC and arrangements made for prompt consultation.
Will Clayton and Ambs Caffery and Murphy pls send London urgently any comments repeating to Dept. War has agreed to this message.3
Sent London, rptd Paris, Geneva for Clayton, Berlin.
- See footnote 3, p. 332.↩
- See last paragraph, telegram 4951, September 12, from London, p. 429.↩
- Ambassador Murphy on September 8, replied in telegram 340 from Frankfurt as follows: “I concur in text of proposed statement to CEEC. It seems unquestionable to us here that Anglo-American zones of western Germany can and should make substantial contribution to European recovery and without such contribution recovery program is obviously jeopardized. We are also glad to note that alongside question of priorities in industrial reactivation emphasis is also laid on needs of Germany’s presently depressed economy. You of course recognize inherent risk in this approach of temptation on part of European countries to obtain indirect financing from US and possibility of an easy tendency to interpret military government commitments in this connection as US Government commitments.” (840.50 Recovery/9–847)↩