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

CFM Files: Lot M–88: Box 118: File—TRI Documents

Paper Agreed Upon by the London Conference on Germany¹

secret

TRI/16 (Final)

International Control of the Ruhr

Whereas international security and general economic recovery require:

—that the resources of the Ruhr shall not in the future be used for the purpose of aggression but shall be used in the interests of peace;

—that access to the coal, coke and steel of the Ruhr, which was previously subject to the exclusive control of Germany, be in the future guaranteed without discrimination to the countries of Europe cooperating in the common economic good;

Whereas it is desirable for the political and economic well-being of these countries and a democratic Germany that there be close association of their economic life;

Whereas it is important that trade between the countries mentioned in the preceding paragraph should be facilitated by lowering trade barriers and by any other means,

The Governments of the United States, United Kingdom and France, after consultation with the Governments of the Netherlands, Belgium and Luxembourg, have agreed as follows:

1. An international control shall be set up in the Ruhr and exercised by an International Authority for the Ruhr (hereinafter called the International Authority); the International Authority shall be organised forthwith and shall begin to exercise its functions at a time to be determined by the contracting Governments, and in any case before the establishment of a provisional German Government.

2. The International Authority shall be composed of representatives of the United States, United Kingdom, France, Netherlands, Belgium, Luxembourg and Germany.

3. The International Authority shall take its decisions by majority vote. The United States, United Kingdom, France and Germany shall have three votes each, and the Netherlands, Belgium and Luxembourg one vote each.

4. Until the contracting Governments decide otherwise, the representative of Germany shall be designated and the vote for Germany exercised by those Powers which share the responsibility for the economic administration of that part of Germany which includes the Ruhr (hereinafter called “the Occupying Powers concerned”).

5. The functions of the International Authority shall, subject to existing or future international agreements among the Contracting Governments concerning the allocation of coal, coke and steel, be as follows:—

(a) subject to the provisions of Article 6 below, to make the division of coal, coke and steel from the Ruhr as between German consumption and export, in order to ensure adequate access to supplies of these products, taking into account the essential needs of Germany

(b) to ensure that the German authorities do not institute, carry out or permit artificial measures or discriminatory practices which would distort the movement of Ruhr coal, coke and steel in international trade, except for measures of protection approved by the International Authority

(c) to exercise, in the circumstances envisaged in Article 10(b) below, the powers described in Article 9(b) below.

(d) During the period in which the Occupying Powers concerned exercise supreme authority (which period is hereinafter called “The Control Period”) to bring to the attention of the occupation authorities concerned measures which would ensure, and thereafter itself to ensure, safeguard and protection for coal, coke and steel enterprises in the Ruhr involving foreign interests, within the framework of existing or future agreements between the Allied Governments represented on the Authority.

6. (a) The findings of the International Authority under the provisions of Article 5(a) shall be consistent with the programmes of the C.E.E.C. for the recovery of the participating countries.

(b) During the Control Period, or until such earlier time as may be agreed upon by the Contracting Governments, the findings of the International Authority under the provisions of Article 5(a) will be transmitted to the Military Governors for implementation. The Military Governors will proceed with the implementation of these findings (1) to the extent consistent with any agreements relative to the provision of financial assistance to Germany which are now or may come in effect between any two or more of the Contracting Governments; and (2) in accordance with the terms of any existing international agreement among the Contracting Governments, or extension thereof, with respect to the allocation of coal and coke.

7. The International Authority shall have the right:

(a) to receive regular reports on production, distribution and consumption of Ruhr coal, coke and steel;

(b) to demand additional reports on these subjects whenever necessary;

(c) to verify the information at its disposal by enquiries on the spot and by subpoena and examination of witnesses;

(d) to call for information about supplies of coal, coke and steel from sources other than the Ruhr.

8. During the Control Period the occupation authorities concerned will maintain adequate control over the management in the Ruhr coal and coke industry.

9. During the Control Period, or until such earlier time as may be agreed upon by the Contracting Governments, the occupation authorities concerned will maintain

(a) such powers in respect of the coal, coke and steel industries of the Ruhr as will enable the International Authority to perform the functions and exercise the rights assigned to it in Articles 5 and 7 above, and as may be necessary to ensure that the decisions with respect to the export of these products from Germany are carried out:

(b) such further powers as may be necessary to enforce the disarmament of Germany, including power to control the supply of Ruhr coal, coke and steel to any industries which may be prohibited or limited in the interests of security by agreement among the Contracting Governments or under the terms of any international agreement to which they shall become party.

10. (a) When the occupation authorities concerned relinquish the powers referred to in Article 9(a) the German authorities shall be responsible to the International Authority for enabling it to perform the functions and exercise the rights assigned to it in Articles 5 and 7 above and shall take such measures as may be necessary to ensure that the decisions of the International Authority are carried out.

(b) When the occupation authorities concerned relinquish the further powers referred to in Article 9(b) these powers shall be transferred to such international body as may be designated for these purposes by the Peace Settlement or by any international Agreement to which the Allied Governments represented on the Authority are parties, and the Authority shall co-operate with that international body in such ways as shall be prescribed by the Peace Settlement or by such international agreement. If no such international body is set up, these powers shall be transferred to the Authority but shall be exercised only by the Allied representatives on the Authority.

11. Should the German Government not carry out the decisions of the International Authority, the latter may, by a majority vote of the Allied representatives, find that the German Government is in default on its obligations and recommend, to the occupation authorities during the Control Period, and thereafter to the Allied Governments represented on the Authority, the application of the necessary enforcement measures, provided however that before such enforcement measures are applied the German Government shall be given a reasonable opportunity for a hearing. At the expiry of the Control Period, these enforcement measures shall be applied in accordance with the relevant provisions of the Peace Settlement or any international agreement to which the Allied Governments represented on the Authority are parties.

12. This Agreement constitutes a statement of principles which shall form the basis for a more detailed agreement setting up the International Authority.

London, 26 May, 1948.

1. This paper was approved at an informal meeting of the London Conference on Germany on the afternoon of May 27. Agreed interpretations of various articles of this paper were set forth in document TRI/23 (Final), May 26, p. 290. Telegram 2269, May 25, from London, not printed, reported that Ambassador Douglas had made clear to the Conference that the United States reserved its position on this paper subject to consideration of the entire work of the Conference (740.00119 Council/5–2548). Telegram 2295, May 27, from London, not printed, reported that Douglas had restated the American reservation at the informal meeting of May 27 (740.00119 Council/5–2748).

   This paper was Annex C to the Report of the London Conference on Germany, p. 309.