Foreign Relations of the United States, 1948, Germany and Austria, Volume II

CFM Files: Lot M–88: Box 119: MGC Papers

Report by the Military Governors of the Western Zones of Occupation of Germany to the London Conference on Germany ¹

secret

[ Frankfurt ,] 14 April, 1948.

MGC/P(48)16

1. In accordance with instructions received from their respective Governments, the French, United States and British Commanders-in-Chief in Germany have caused a study to be made of certain matters remitted to them as a result of the recent conversations held in London in February and March 1948.

2. They agreed to set up Working Parties to examine each of these subjects and to report to them. The list of the subjects and the composition of the Working Parties is given in Appendix “A” (MGC/P(48)1) attached.

3. The Commanders-in-Chief further invited the representatives of the Benelux countries in Germany to present their views on, and to discuss, the matters affecting them. This invitation was accepted and the Benelux representatives have participated on this basis in the discussion of Items 1, 5 and 6 of Appendix “A”.

4. On the proposal of the British Commander-in-Chief, the Commanders-in-Chief also agreed to invite the representatives in Germany of Australia, Canada and the Union of South Africa to submit to them any views which they might have on the matters under discussion. The representatives of Australia and Canada have submitted in writing expressions of their views² which were considered by the Commanders-in-Chief and are available to the Conference.

5. The Commanders-in-Chief now wish to report as follows on the items on their Agenda as given in Appendix “A”:—

(a) Working Party No. 1. Proposal for close association between the Military Governors and the representatives of the Benelux countries in Germany. An agreed paper is submitted at Appendix “B”. In so far as this paper envisages an association between the Benelux countries and tripartite institutions of any kind, it is pointed out that no tripartite machinery at present exists in Germany other than that set up to deal with the meetings just concluded in Berlin. The proposed measures for close co-operation between the Benelux countries and the Bizonal Area and the Benelux countries and the French Zone are already operable.

(b) Working Parties 2, 3 and 4

As will be seen from Appendix “A” these Working Parties dealt with the various aspects of co-operation and co-ordination of economic-affairs as between the Bizonal Area and the French Zone, including the implications of their ultimate fusion.

Discussions took place as a result of which the points of view of the three delegations were clarified and recorded on many matters of detail.³

The Commanders-in-Chief have not agreed to approve the results of these discussions nor have they agreed to the desirability of forwarding them to the London Conference. Each Commander-in-Chief is, therefore, forwarding to his Government’s representative such records of these discussions as he considers desirable together with his comments thereon.

The Commanders-in-Chief are agreed that there is considerable divergence in the extent to which matters are handled by German officials in the Bizonal Area and by the Allied officials in the French Zone. The United States and United Kingdom Commanders-in-Chief consider that in all fields where this divergence obtains it is not practicable to carry out an effective harmonization. The French Commander-in-Chief considers that in these cases harmonization is more difficult but not impossible.

A number of details, however, have been agreed which will be most helpful when agreement in principle is reached.

(c) Working Party No. 5—Future Political Organisation of Western Germany.

The report of this Working Party⁴ reveals numerous important divergences of opinion.

Views presented on this subject by Australia and Canada have been considered by the Commanders-in-Chief.

The Commanders-in-Chief have not agreed to approve this report nor to forward it to the London Conference, but it will be available for reference.

(d) Working Party No. 6—Safeguarding the Rights of Foreign Powers in Germany.

The Report of this Working Party is attached at Appendix “C”.⁵

(e) Working Party No. 7—Machine Tool Holdings.

There has been some doubt as to the field which the Commanders-in-Chief were required to investigate. The Commanders-in-Chief agreed that they had been asked to complete the survey of the stocks of Machine Tools in Western Germany. The French delegation was under instructions to discuss also certain matters regarding the Prohibited and Restricted Industries and Reparations. The U.S. and U.K. Commanders-in-Chief expressed a willingness to discuss these matters at any time but not within the framework of the discussions covered by this report.

The Working Party, therefore, concentrated its attention on the survey of Machine Tools.

The Report of the Working Party is attached at Appendix “D”.⁶

6. The Commanders-in-Chief express their regret that they were unable to make further progress.

Lucius D. Clay	B. H. Robertson	Koenig
General, U.S. Army,	General	General
Commander-in-Chief	Commander-in-Chief	Commander-in-Chief
and Military Governor	and Military Governor	and Military Governor
U.S. Zone of Occupation in Germany	British Zone of Occupation in Germany	French Zone of Occupation in Germany

Appendix “A”

Terms of Reference of the Working Parties of the Military Governors’ Conference ⁷

secret

Terms of Reference of Working Parties Set Up in Berlin in Accordance With Decisions of London Conference

1. To study arrangements for a close association between the Military Governors and the representatives of the Benelux Countries in Germany.

2. Measures to improve economic co-operation between the Bizonal Area and the French Zone, particularly in regard to:

(a) Circulation of persons and trade.

(b) Foreign trade.

3. The study of the arrangements which have been made for the administration of the Bizonal Area with a view to exploring the possibilities of a fusion of the French Zone with the Bizonal Area.

4. To examine the practical implications of the possible fusion, mentioned in paragraph 3 above, as affecting the Allied partners to the fusion arrangement.

5. To continue the discussions undertaken at London on the future political organization of Western Germany, as set out in document TRI/4.⁸

6. To study the question of safeguarding the rights of foreign owners of the coal and steel industries in the Ruhr and elsewhere in Germany.

[Sub-Appendix]

Composition of Working Parties Set Up in Berlin in Accordance With Decisions of London Conference

1.	Mr. Steel (Br.)
	M. Seydoux (Fr.)
	Mr. Riddleberger (US)
2.	Sir Cecil Weir (Br.)
	Sir Eric Coates (Br.)
	M. Leroy Beaulieu (Fr.)
	M. Filippi (Fr.)
	Mr. Wilkinson (US)
	Mr. Bennett (US)
3.	Mr. Chaput de Saintonge (Br.)
	M. Sabatier (Fr.)
	Dr. Litchfield (US)
4.	Sir Cecil Weir (Br.)
	Sir Eric Coates (Br.)
	M. Leroy Beaulieu (Fr.)
	M. Filippi (Fr.)
	Mr. Wilkinson (US)
	Mr. Riddleberger (US)
5.	Mr. Steel (Br.)
	M. Seydoux (Fr.)
	Dr. Litchfield (US)
6.	Mr. Harrison (Br.)
	Mr. Young (Br.)
	M. Humbert (Fr.)
	Mr. Wilkinson (US)
	Mr. Bennett (US)

Appendix “B”

Final Report of Working Party Number 1 of the Military Governors’ Conference ⁹

secret

Proposal for Close Association Between the Military Governors and the Representatives of the Benelux Countries in Germany

In order to give effect to the recommendations of the London discussions of February–March 1948 respecting a close association between the Military Governors of the U.K., U.S. and French Zones and the representatives of the Benelux countries in Germany, the following report of Working Party No. 1 is submitted.

1. With respect to discussions now being held in Berlin, it was agreed that the reports and/or recommendations of the three Military Governors would be made available to the Benelux representatives at the conclusion of the meetings on those subjects which are of direct interest to them. This will enable the Benelux Governments to be adequately informed of the results of the Berlin discussions before the talks are resumed in London in April of this year. Furthermore, it is noted that the Benelux representatives have expressed their views upon the subjects considered by this working party and those relating to the future political organisation of Western Germany (Working Party No. 5) and to the question of safeguarding the rights of foreign owners of the coal and steel interests in the Ruhr (Working Party No.6).

2. With respect to continuing this cooperation in the future, it was agreed that for the Bizonal area items pending before the Bipartite Board (of interest to the Benelux countries) would so far as possible be communicated to their representatives before the meeting of the Board. The Benelux countries would then be able to submit their comments on such items and these could normally be considered, by the Board in the course of its meeting. Furthermore, the representatives of the Benelux countries would be immediately informed of decisions taken by the Bipartite Board and would be given the minutes for those items which are not exclusively of interest to the Board.

3. An arrangement similar to that outlined in Paragraph 2 above will be put into effect with respect to the French Zone under which information respecting both impending developments and decisions will be communicated to the representatives of the Benelux countries.

4. With respect to information provided in Frankfurt and Baden-Baden, it is recognised that this should be done through the consular representation of the Benelux countries established in those cities.

5. For the purpose of assuring a regular contract and for providing background information, both on developments in the Bipartite Board and in the French Zone, meetings will be held at stated intervals between the respective Political Advisers of the three Military Governments on the one hand and the representatives of Benelux countries on the other. Each Political Adviser would also, upon request, arrange for interviews between representatives of the Benelux countries and other officials of the respective Military Governments, both in Berlin, Frankfurt and Baden-Baden.

1. This Report was generally agreed upon at the Fourth and final meeting of the Military Governors Conference at Berlin on April 12; see General Clay’s telegram CC–3854, supra. Regarding the signing at Frankfurt of the final text of this Report, see telegram 888, April 15, from Berlin, infra. At the resumed London Conference on Germany, this Report was circulated as document TRI/11, April 16, 1948.
2. The views of the Australian and Canadian Military Missions in Berlin to the Military Governors Conference were circulated as documents MGC/P(48) 9, April 8 and MGC/P(48) 14, April 9, respectively, neither printed (CFM Files, Lot M–88, Box 119, MGC Papers).
3. The text of the Final Report of Working Party No. 2, document MGC/P(48) 11, April 7, 1948, is not printed; for a summary of the subjects discussed by the Working Party, see telegram 797, April 5, from Berlin, p. 166. Neither the Final Report of Working Party No. 3, document MGC/P(48) 10, April 9, 1948 nor the Final Report of Working Party No. 4, document MGC/P(48) 6, April 6, 1948, is printed; for brief summaries of the contents of these reports, see telegram 766, April 2, from Berlin, p. 160.
4. Document MGC/P(48) 8, April 9, 1948, p. 170.
5. The full text of this report is not printed, but for a summary of its contents, see telegram 845, April 13, from Berlin, p. 177.
6. Not printed.
7. This paper had been circulated separately as document MGC/P(48) 1, March 20, 1948.
8. Not printed, but its substance is set forth in telegram 894, Delsec 1616, March 5, from London, p. 131.
9. The Final Report printed here was also circulated separately as document MGC/P(48) 7, April 6, 1948, and was Annex B to the Report of the London Conference on Germany, p. 309.