840.6362/5–1747: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
2796. Urtel 21421 and Lasco 323 and urtel 21431 helpful. Please be assured no commitment has been made re French or British position on UK request for ECO allocations of coal. We have consistently informed the British in substance as follows:—(1) We are unwilling to take any position that would cause undue bitterness and damage the effectiveness of ECO. We must be left completely free to judge the merits of the case without prejudice. (2) We object effort to bargain US coal for Saar coal.
Foreign Office is as anxious as we are to preserve ECO as effective instrumentality. It is for this reason UK is submitting provisional application to ECO (see Salco 493) contingent upon availabilities.
Makins gave Embassy his personal views and story of Paris talks and outlined French proposition but emphasized informality because matter had not yet been cleared by Bevin.
[Page 511]When Makins and Brook arrived in Paris to talk with Alphand, French pointed out that contemplated British request for coal was embarrassing for them from all points of view—psychological, political and economic. They were, therefore, forced to consider some compensating advantage for British request. Alphand suggested semiofficially that as contemplated in the Moscow agreement there should be tripartite notification to ECO that Saar production was to be considered a part of indigenous French production, but that this should be done prior to quadripartite agreement to transfer of Saar.
Makins gave French his personal view that such action might not be possible until questions of Saar frontiers and reparations value of Saar had been settled. He intimated to them that integration of Saar production into French indigenous production and applications of ECO allocations formula thereto probably would result in less coal to other ECO recipients, and therefore opposition by them.
French indicated that they did not require support of UK in ECO to meet possible opposition there. Alphand then outlined a scheme which French considered might avoid opposition. When tripartite notification was given they would undertake to maintain existing Saar commitments to export coal until Ruhr production reached 250,000 tons daily. Until this figure reached they would not benefit from Saar. Thereafter French benefit from Saar would increase pari passu with rise in Ruhr production until latter reached 320,000 tons daily. At this point French would receive full benefit arising from consideration of Saar production as part of French indigenous production. Obviously this scheme would cause no immediate loss to ECO pool and might obviate opposition of other ECO members.
French submitted some figures to British of effect of considering Saar production part of French indigenous production; they believed result would be very advantageous to them. British experts considered French figures not entirely accurate and they suggested some changes which are being considered by French. It is expected that both British and French experts will discuss these figures next week.
Makins thinks that British probably will not object to French proposals in principle but he feels that result would not give French as much coal as they believe likely. Matter being considered further by British who intend to communicate with us prior to reply to French.2
- Both telegrams dated May 16, 7 p.m.↩
- Both telegrams dated May 16, 7 p.m.↩
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In telegram 2184. May 20, the Department replied:
↩“Position taken with British (first paragraph urtel 2796 May 17) noted with approval.
“Dept concerned over trend UK–French discussions as reported reference telegram. Pls inform FonOff that US considers premature any discussion in ECO based on the transfer of Saar to France or any ECO allocation predicated on understanding for the treatment of Saar coal as indigenous French output. Any French proposals on Saar should be discussed in first instance at inter-governmental level. Pls advise US member ECO.” (840.6362/5–1747)