Office of the Historian

840.6362/5–2247: Telegram

The Ambassador in the United Kingdom (Douglas) to the Secretary of State

restricted
us urgent
London, May 22, 1947—4 p. m.

2875. This is Salco 494 from MEA. 1. APC meeting 22 May agreed following scheme third quarter allocations re UK request for US coal:

a.
At level US coal 2.6 tons per month previously agreed formula will be used without UK participation.
b.
At level 3.0 million tons per month formula will be used but giving UK priority to purchase any coal refused by any country. Other member countries will not have right to compete for this coal.
c.
UK to have right to purchase first 200,000 tons over 3.0 million tons.
d.
Any further tonnage which will become available above 3.2 to be offered pro rata to all countries receiving US coal. UK to participate according to US pattern for 3.2 million tons availability but without priority in purchasing coal which may be refused by other countries.

2. All countries except France would have agreed to more liberal treatment UK. UK reaccepted [received? this proposal with regret but had received instructions to accept in order to reach agreement without sharp conflict.

3. US distribution at levels 2.6, 3.0 and 3.4 million tons will be forwarded soonest along with detailed recommended allocations.

Douglas