Foreign Relations of the United States, 1947, The British Commonwealth; Europe, Volume III

840.50 MEA/2–1347

Memorandum of Telephone Conversation, by Miss Miriam Camp of the Office of the Assistant Secretary of State for Economic Affairs

[Washington,] February 13, 1947.

Participants:	Mr. Paul Porter, Acting Chief, Mission For Economic Affairs, American Embassy, London
	Mr. Stinebower and Miss Camp, A–T

I. Paul Porter spoke with Mr. Stinebower¹ and Miss Camp on the telephone at 11:30 a. m. today. He reported that there had been statements in the British press and questions in Parliament about the possibility of diversion to the United Kingdom of coal now being shipped from the United States to Europe. Specifically, Mr. Porter referred to statements in the press quoting remarks by Captain Conway² and by ex-Governor Lehman.³ He said that he had been informed by the British that they did not wish for political reasons to buy coal in the United States at present and that they felt these public statements and any more similar statements would have the effect of forcing their hand and making it extremely difficult to withstand the public demand to import coal.

Mr. Porter referred to two telegrams which had been sent from the Embassy, in particular to a telegram of February 11 sent US Urgent,⁴ in which it was stated that it was believed both the Ministry of Fuel and Power and the Foreign Office would oppose imports of U.S. coal in view of their commitments to ECO and their feeling that British competition for ECO coal would adversely affect British influence with other ECO countries, in particular France.

Mr. Porter requested Mr. Stinebower to make sure that the British attitude was known at sufficiently high levels throughout the Government so that any further statements which would tend to build up British public pressure to import coal could be avoided.

Mr. Stinebower informed Mr. Porter that he had no knowledge that any action was being contemplated with respect to diversion of coal to the United Kingdom and that he assumed if anything were afoot he would have been informed in view of his responsibility for ECO matters.

Mr. Stinebower further undertook to see that appropriate steps were taken to avoid the issuance of further statements which might prove embarrassing.

II. Following this conversation we learned that a statement had been released to the press from the White House at 10:30 this morning saying that the United States Representative on the European Coal Organization was being instructed to support the United Kingdom Representative if he requested the ECO to authorize the diversion of coal to the United Kingdom.⁵

III. Mr. Stinebower therefore telephoned Mr. Porter to inform him of this action, which had already become known in the United Kingdom.

Mr. Porter said that the Ministry of Fuel and Power was disturbed by the announcement and that he (Mr. Porter) was receiving inquiries from the press. He asked whether the diversion of coal would be subject to the agreement of ECO countries, and Mr. Stinebower confirmed that that was his understanding.

Mr. Stinebower explained to Mr. Porter that the press release also contained a fresh appeal by the President for the continuation of the authority of the Maritime Commission to operate Government-owned vessels. Mr. Porter felt this feature of the press release would be welcomed by the British authorities.

Mr. Stinebower said that Mr. Porter would be receiving an urgent telegram giving him instructions to support any British request for coal which might be made to the European Coal Organization and also by telegraph the text of the White House release.

Mr. Stinebower said that no mention of double bunkering⁶ was made in the press statement; that he understood that the British had requested double bunkering. He inquired whether Mr. Porter felt a press release on U.S. willingness to provide double bunkering would be useful. Mr. Porter hesitated to give an off-hand opinion and requested us to withhold issuance of a press release until he had had an opportunity to consult with the Ministry of Fuel and Power.

Mr. Porter asked us to find out from Captain Conway what coal there was a possibility of diverting, in particular whether there was any coal now afloat in United States ships for which title had not yet passed to the recipient government. We promised to send this information to Mr. Porter as soon as possible.

Mr. Porter said that he had planned to be in Paris next week for the meetings on restitution of transportation equipment but suggested that it might be better for him to remain in London and for Mr. McClure⁷ to handle the Paris meetings. Mr. Stinebower agreed, and undertook to inform Mr. Radius.⁸

IV. Following this telephone call I ascertained from Mr. Lister⁹ that the U.S. Coal Committee had already agreed to the double bunkering of British ships and that Mr. Corey Wright (British) had already informed London. Mr. Lister said a press release from the U.S. Coal Committee was already in preparation but that it would be held until he was informed by us that it should be released.

Mr. Lister also said there was no coal now afloat to which the United States still held title. He undertook to find out and prepare a telegram on the coal now afloat or about to be shipped, giving quantities, ownership, etc.

I have spoken to Mr. Radius, and he agrees that Mr. Porter should not be asked to leave London at this juncture but that Mr. McClure should handle any meetings in Paris. However, Mr. Radius said that he understood the meetings were now to be held in London rather than Paris.

1. Leroy D. Stinebower, Special Assistant to the Assistant Secretary of State for Economic Affairs (Thorp).
2. Granville Conway. Coordinator of Emergency Export Programs, formerly Administrator of the War Shipping Administration.
3. Herbert H. Lehman, former Governor of New York, was the first Administrator of the United Nations Relief and Rehabilitation Administration (UNRRA). Governor Lehman in an undated telegram had appealed to President Truman to send “shiploads” of coal to Great Britain to relieve the coal shortage there; the text of the letter was printed in the New York Times on February 12, 1947.
4. Telegram 938, Salco 423, from London, February 11, supra.
5. For text, see telegram 734, infra.
6. Reference is to the bunkering of ships in U.S. ports with sufficient coal to complete a round trip.
7. Russell S. McClure was U.S. delegate to the International Congress on River Transportation which met at Paris in 1947; in March he was assigned to the Paris Embassy as an attaché.
8. Walter A. Radius was Deputy Director of the Office of Transport and Communications; in March he was appointed Director.
9. Louis Lister, International Resources Division.