740.00119 Control (Germany)/3–3048: Telegram
The United States Political Adviser for Germany ( Murphy ) to the Secretary of State 1
726. Your 528, March 24,2 regarding Ambassador Caffery’s conversation with Schneiter and latter’s suggestion that French are somewhat confused regarding US wishes for early trizonal fusion and the possibility of an intervention by Schuman.[Page 153]
The following represent the views of General Clay and myself.
The timing of trizonal fusion would depend to considerable degree upon our ability to reach agreement not only as to trizonal fusion itself but also with respect to the timing of other measures. It would seem obvious that trizonal fusion without complete understanding on certain other matters might only lead to friction and extreme administrative difficulties.
It seems clear to us that it would be most desirable for trizonal fusion to be undertaken in connection with the establishment of a provisional government or administration for the territory embracing the three Western zones if such a provisional government or administration could be agreed prior to the adoption of a constitution and the creation of a constitutional government. Pending the establishment of such a government, it should be possible for the French zone to adopt bizonal policies, particularly in the financial and economic fields. We believe that the French zone should enter into the Land Union Bank and the Allied Banking Commission which will be responsible for its supervision. It should also enter into currency reform. The French also might well participate in the Joint Export-Import Agency provided their zone is financed under ERP and under the terms which now regulate the existing Anglo-American partnership. French participation in JEIA would of course necessitate a common customs policy as well as the elimination of trade barriers.
It would be our suggestion that the French Government be informed that it is the US view that trizonal fusion should become fully effective with the establishment of a provisional government or administration and/or a constitutional government for the three zones. An announcement to this effect would be made as soon as the type of government has been definitely determined and the date of its establishment fixed. The French should be advised that full trizonal fusion prior to that time would require difficult adjustments in present administrative arrangements. However, to indicate our unity of thought, it would be hoped that in announcing the date for full trizonal fusion it could be pointed out that the French had already joined us in the Allied Banking Commission, in common financial and economic policy to include currency reform and participation in the JEIA which would provide for a common customs program and for the elimination of all interzonal trade barriers. We feel that the French should be advised that the United States would welcome the earliest possible French participation on the basis outlined and would be prepared to accept an immediate trizonal fusion if desired by the French Government, recognizing fully the difficulties which would be faced in reconciling administrative procedures pending full and complete agreement on matters unresolved at present.
I am not certain whether the use of the word “government” above as [Page 154] a matter of terminology is difficult for the French in this connection. That is why the alternative word “administration” has been inserted.
Sent Department as 726; repeated to Paris for Caffery as 115.