840.6362/3–2147: Telegram
The Acting Secretary of State to the Embassy in the Soviet Union
618. Secdel 1362. London’s Salco–454 rptd Moscow for Secdel as 112.1 Ref prospective Brit request for ECO allocation coal from US following relevant to formulation US position:
[Page 496]Second quarter ECO allocations US coal are on basis 2.6 million tons exports to Europe per month. Achieving this rate requires closest coordination procurement, rail movement and shipping in US and allows no leeway for unforeseen difficulties. Resolving every uncertainty for third quarter in favor of export program US might be able to ship 2.9 million per month to Europe. Dept believes unrealistic to expect such increase because of (a) possible coal strike July (b) present export controls expire 30 June and unless renewed doubtful whether even present export levels can be maintained (c) expiration 30 June Maritime Comm authority to operate pool of ships which may result in inadequate flexible shipping available to move bulk coal and grain cargoes. Therefore only safe to assume that allocation US coal to Brit third quarter would reduce allocations to other ECO importers below second quarter levels. In addition Eire will become regular claimant due Brit inability to supply and probably Iceland. US coal now exported to Norway, Swed, Denm, Neth, Belg, France, Switz, Port, Italy, Greece, Finland, all through ECO, also Iceland, Eire. Largest allocations to France and Italy.
Brit statistics show internal consumption availability (production less exports and bunkers) 1946 approx. equal 1935–8 internal availability. Projected 1947 production of 200 million with no exports except expected bunkers will give internal availability 109 percent 1935–8 average. All other ECO importing countries have been and will be in 1947 well below 100% 1935–8 availability. On statistical basis therefore Brit position better than continental. Strain on ECO operation will be severe if Brit request presented.
President’s offer Feb 13 was emergency offer to divert cargoes afloat if ECO agreed and was related to internal transport tie-up in UK.
In view effect allocation US coal to Brit in third quarter on other Eur claimants, particularly France, and in view strong position French taking re coal in Moscow and effect on Ger exports of decisions on level of industry and reparation, Dept reluctant to take position on matter without comment from Secdel and suggests desirability of discussing directly with Bevin. (Sent Moscow for Secdel, rptd. London for Amb and Porter.)
- The Secretary of State was attending the meetings at Moscow of the Council of Foreign Ministers.↩