840.50 Recovery/9–1747: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
5033. For the Secretary and Lovett. 1. Have not answered in detail because course of action reported after meeting with Clayton in Paris and the Executive Committee CEEC on the tenth and eleventh seemed to meet all the points raised. Moreover your cable not received until the twelfth after return from Paris. (Deptel 3950, September 11; Embtel 4888, September 9).
2. As previously reported, Bevin satisfied with course of action and procedure agreed to as result of the meetings referred to in paragraph one above.
3. As to Bevin’s remarks that Soviet had threatened to withhold coal from some countries, details are as follows:
About ten days ago, when the Scandinavian countries were meeting to consider a customs union, the Soviet threatened to withhold from [Page 435] them deliveries of coal if they proceeded with their discussions. This information given me from two sources in the Foreign Office and confirmed in conversations Paris yesterday.
4. As a result of several conversations with Bevin and other members of the Foreign Office, am convinced Department’s feeling that the British have been “sticky” at the Paris Conference was due to following consideration.
Emphasis which they thought we would place upon a continuing organization for purpose of indicating, without regard to national frontiers, the plant facilities which would first be brought into production necessarily entailed, in their view, the allocation of a relatively large list of raw materials and of the finished products among at least several participating countries. This sort of an undertaking, the British felt, would necessarily mean an impairment of sovereignty and as a result the withdrawal from the conference of several of the member countries. Thus, the British felt the schism in Europe would be broadened and deepened at a particularly inopportune time. Several of the participating countries expressed the same view.
5. Now, however, that the above procedure is not being pressed by the Department, Bevin and the British are completely satisfied and have, I am confident, exerted every effort to persuade the conference to meet, as nearly as is possible among sixteen participating countries, all of the basic principles which have been suggested by us to the conference.
6. Believe it much preferable to press for the inclusion of the bizonal areas after the “first report” has been received and when, should it be necessary, the conference is reconvened for the purpose of either modifying the first report or preparing a second. Can explain this to you fully when we meet in Washington.