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

851.504/3–2447: Telegram

The Acting Secretary of State to the Embassy in France

secret
us urgent

Washington, March 24, 1947—7 p. m.

1077. War despatching following cable General Clay:

“From WDSCA. Reurad CC–8312 March; ourade WX 88154, December; and WX 93587, March.¹

Since President, SecState and SecWar agreed permit French voluntary recruitment of German labor in US Zone in return French agreement on repatriation German POWs (reourad WX 88154, Dec), US committed to undertake discussions with French relating to recruitment of labor in US Zone Germany. Reurad CC 8362[8312?] assumed here and considered necessary qualified representative of yours will be present in Paris beginning March 26 for purpose participating in this phase negotiations. We do not regard quadripartite approval necessary for such discussions, or possible action as result of discussions, within US Zone since recruitment on voluntary basis not inconsistent with US, UK, French views expressed in ACA apropos earlier Russian drafting German technicians. Agree that recruitment must take place so as not to conflict with our obligations to British under Bi-Zonal Agreement.²

Negotiations with French arising from US request repatriation US captured POWs began March 4 and resolved themselves into three phases—repatriation proper, recruitment DPs, and recruitment free German labor. Repatriation agreement signed March 13. Re DPs, French willing reach agreement similar that to be concluded with Belgians, but are withholding signing until initiation discussions recruitment voluntary labor US Zone Germany. March 26 date set resumption negotiations last two phases.

Following will be used as basis of negotiations with French on recruitment US Zone:

1. Resettlement DPs has priority for US over recruitment free German labor and will be so treated administratively by US if not possible obtain French agreement this point. In view French Communist opposition to recruitment DPs on political grounds, and recent Bidault declaration Moscow re dispersal German population, doubt French would agree such stipulation in agreement, but we must insist on provision that recruitment German labor shall not interfere with or otherwise affect recruitment among DPs.

2. Recruitment will be directed in first instance at Germans presently unemployed.

3. Recruitment will be conducted under direction of Zonal Commander, and no labor will be recruited without approval of Zonal Commander who will take into consideration need for retention in US Zone of such labor as is strictly necessary to carry out three-year program for achievement self-sustaining economy in bizonal area pursuant to US–UK Agreement.

4. All labor will be recruited on voluntary basis.

5. Arrangements should be made to establish means for German labor voluntarily recruited for service in France and for German POWs electing voluntarily to remain in France to remit support allowances to their dependents in Germany. OMGUS has been authorized to introduce in Allied Control Authority general proposal for quadripartite procedures governing benevolent remittances from all countries to Germany. When and if adopted such agreed procedure should also govern remittances by German labor employed in France. Pending adoption general procedures, French should arrange interim procedure for remittances by German labor employed in France to French Zone and arrange with USSR authorities for remittances to USSR Zone by optants. US should undertake to obtain prompt British agreement to interim procedure for remittances to US–UK Zones. In all cases our view that agreement should be sought on acceptance by all Zonal Authorities in Germany of indigenous currency. In case of regular quadripartite procedure as well as interim procedure our view that indigenous currency of remitting country should be accepted without obligation on part of remitting country to convert such currency to dollars or sterling. Foreign currency equivalent of remittances should be available, however, for payment of imports from remitting country. In connection option plan for POWs now in France French Govt has proposed that it be permitted to utilize 1.2 billion Reichsmark acquired in Alsace Lorraine currency conversion and certain other marks or mark claims held by French nationals to make out-payments to beneficiaries of remittances by optants. It is probable French will make similar proposal in connection with remittances by voluntary recruits. Such arrangement as well as French proposal regarding exchange rate reported in AmEmbassy Paris 98³ to USPolAd would be unacceptable.

Request confirmation to Paris and Washington that qualified OMGUS representative will be in Paris March 26 to participate negotiations on basis stated above.

Sent Paris as 1077 rptd Berlin as 637 and Moscow for Delsec as 1371.

Acheson

1. None printed.
2. For text of the Memorandum of Agreement between the United Kingdom and the United States on the Economic Fusion of their Respective Zones of Occupation in Germany, December 2, 1946, see Department of State Treaties and Other International Acts Series (TIAS) No. 1575, or 61 Stat. (pt. 3), 2475. See also Foreign Relations, 1946, vol. v, pp. 481 ff.
3. Not printed.