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

CFM Files: Lot M–88: Box 126: File—IAR Documents

Proposal by the United States Delegation to the London Conference on the Ruhr¹

secret

[London,] 12 November, 1948.

RC/3

Agreement on International Authority for the Ruhr

Whereas international security and the general economic recovery of Europe require that the coal, coke and steel resources of the Ruhr shall not in the future be used for the purpose of aggression, but solely in the interests of peace, and that, in furtherance of their common political and economic well-being, all countries cooperating in the common economic good shall hereafter be assured access to these resources on an equitable basis;

And, whereas it is desirable that there be a close association of the economic life of those countries of Europe, including Germany, which are working together in the common interest, and that trade among them should be facilitated by lowering trade barriers and by other means;

Now, therefore, in furtherance of the foregoing purposes, the governments of Belgium, France, Luxembourg, the Netherlands, the United Kingdom of Great Britain and Northern Ireland and the United States of America agree as follows:——

article i

the authority

There is hereby established an International Authority for the Ruhr, hereinafter referred to as the “Authority”, the composition, powers and functions of which are as set forth herein.

article ii

definitions

1. The Ruhr

For the purposes of the present agreement, the Ruhr shall mean _____________.

2. Occupying Powers

The term “Occupying Powers”, when used in the present Agreement, shall mean the Government of France, the Government of the United Kingdom and the Government of the United States.

3. Occupation Authorities

The term “Occupation Authorities”, when used in the present Agreement, shall mean the Occupying Powers’ representatives who are exercising occupational responsibility in Germany on behalf of their Governments.

4. Occupying Powers Concerned and Occupation Authorities Concerned

The terms “Occupying Powers Concerned” and “Occupation Authorities Concerned”, when used in the present Agreement, shall mean those Occupying Powers or Occupation Authorities who share the responsibility for the economic administration of that part of Germany which includes the Ruhr.

5. German Government

The term “German Government” when used in the present Agreement shall include any provisional German Government approved by the Occupying Powers.

6. Control Period

The term “Control Period”, when used in the present Agreement, shall mean that period during which the Occupying Powers retain such authority in Germany as will enable them to carry out their undertakings with respect to insuring the implementation of the decisions and the exercise of the rights of the Authority. The Occupying Powers shall determine, for the purposes of the present Agreement when the Control Period has terminated.

article iii

organisation and membership

1. The members of the Authority are the signatory governments and Germany.

2. The functions of the Authority shall be exercised by a Council. membership of which will consist of representatives of the members of the Authority. Alternate representatives may be named at the discretion of the members.

3. (Designation of German Representative)

4. There shall be an Executive Secretary of the Authority, who will serve as head of the staff of the Authority.

5. (Privileges and Immunities)

article iv

administration

1. The headquarters of the Authority shall be at such place in North Rhine-Westphalia as the Council may determine.

2. The Council shall adopt its own rules of procedure.

3. The chairmanship of the Council shall be rotated quarterly among the representatives of the signatory governments on the Council, in such manner as the Council may determine.

4. The Council shall meet as necessary. The Council shall keep minutes of its meetings, and shall maintain a register of its decisions.

5. The Executive Secretary shall be appointed by the Council in accordance with such procedure and on such terms as it may determine, and will be subject to its supervision. He will perform such duties as the Council may determine. He will be entitled to participate, without right of vote, in all meetings of the Council.

6. The Executive Secretary shall appoint his staff in accordance with staff regulations to be approved by the Council, subject to the paramount consideration of securing the highest standards of integrity, efficiency and technical competence. The general pattern of organization of his staff will be approved by the Council.

7. The responsibilities of the Executive Secretary and of the staff shall be exclusively international in character. In the discharge of their duties, they shall not seek or receive instructions from any government or from any other authority. They shall refrain from any action which might prejudice their position as international officials. Each member of the Authority undertakes to respect the international character of the responsibilities of the Executive Secretary and his staff, and will not seek to influence them in the discharge of their duties.

8. The annual budget will be prepared by the Executive Secretary for approval by the Council.

9. Each member government will be responsible for compensating its representative on the Council, and for paying his travelling and subsistence expenses, except in the case of travel on Authority business, costs of which shall be borne by the Authority.

10. The expenses of the Authority will be borne by the members in direct proportion to the respective voting rights, as set forth in Article V hereof. Until a German Government is formed, the expenses to be borne by Germany shall be met in such manner as may be determined by the Occupation Authorities concerned.

11. The official languages of the Authority shall be English, French and German.

article v

voting

1. All decisions of the Authority will be reached by numerical majority of the aggregate of votes allocated to its several members, except as indicated in Articles VIII and IX.

2. The voting rights of the several members of the Authority in its Council shall be as follows:

United States	3 votes
United Kingdom	3 votes
France	3 votes
Germany	3 votes
Netherlands	1 vote
Belgium	1 vote
Luxembourg	1 vote

3. Until the Occupying Powers decide otherwise, the votes allotted to Germany shall be cast by the Occupying Powers concerned.

4. Anything herein to the contrary notwithstanding, the votes allotted to Germany shall not be cast on any question or matter involving decisions under Articles VIII or IX.

article vi

functions and powers

1. The Authority shall make a division of coal, coke and steel from the Ruhr as between German consumption and export. Such division shall:

(a) ensure adequate access to supplies of these products by countries cooperating in the common economic good, taking into account the essential needs of Germany.

(b) be in accordance with the terms of any existing agreement among the Occupying Powers or extension or other modification thereof, with respect to the allocation of coal and coke.

(c) be consistent with the objectives set forth in The Convention for European Economic Cooperation and with the programs of the Organization for European Economic Cooperation.

The export allocations of the Authority shall be in terms of minimum quantities of coal, coke and steel to be made available for export from the Ruhr.

2. The Authority is authorized to examine governmental measures, price and trade practices, or other commercial arrangements instituted or permitted by the German authorities which affect the coal, coke, and steel of the Ruhr. If the Authority determines that such measures, practices, or arrangements are artificial or discriminatory and are of such a nature as (a) to impede access by other countries to the coal, coke, and steel of the Ruhr, (b) to distort the movements of Ruhr coal, coke and steel in international trade, or (c) otherwise to prejudice the accomplishment of the purposes of the present Agreement, the Authority shall decide that such measures, practices, or arrangements shall be terminated. In making its determinations under this Paragraph the Authority shall have due regard for measures required in the interests of international peace and security, for Germany’s obligations under the Convention, for European Economic Cooperation, and for the need of the German authorities to afford legitimate protection to the commercial and financial position of Germany in international trade.

3. During the Control Period, or until such earlier time or times as may be agreed upon by the Occupying Powers, decisions under Paragraphs 1 and 2 of this Article shall be transmitted by the Authority to the Occupation Authorities concerned for implementation. Thereafter, such decisions shall be transmitted to the German Government for implementation.

4. During the Control Period, the Authority may bring to the attention of the Occupation Authorities concerned measures which would ensure, and thereafter itself ensure, a 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 signatory governments; provided that when and to the extent that the protection of such foreign interests is entrusted to any agency created or designated by any international agreement to which the signatory governments are parties, the functions of the Authority in this matter shall cease. After the termination of the Control Period the Authority shall issue appropriate orders to the German Government.

5. In order that the Authority may properly perform the functions described in this Article and in order that it may determine whether its decisions are being appropriately carried out, the Authority shall have the right:

(a) to receive regular reports and such additional reports as it considers necessary on production, distribution, and consumption of Ruhr coal, coke and steel;

(b) to receive such information as it considers necessary concerning supplies of coal, coke, and steel available to Germany from sources other than the Ruhr, and concerning exports from Germany of such products from sources other than the Ruhr;

(c) to make in Germany such investigations, including the examination of witnesses, as it considers necessary to verify the information at its disposal.

In the exercise of these rights, the Authority is authorized to make inquiries of government officials, firms and individuals, and to examine records and installations.

article vii

implementation

1. During the Control Period, or until such earlier time or times as may be agreed upon by the Occupying Powers, the Occupation Authority concerned shall:

(a) proceed with the implementation of the decisions of the Authority reached under paragraph 1 of Article VI, (i) to the extent consistent with any agreements relative to the provision of financial assistance to Germany which are now in effect or may come into effect between any two or more of the Occupying Powers; and (ii) in accordance with the terms of any existing international agreement among the Occupying Powers, or extensions or modifications thereof, with respect to the allocation of coal and coke.

(b) take appropriate action to ensure the carrying out of the decisions of the Authority made in accordance with the provisions of paragraph 2 of Article VI.

(c) consider the recommendations of the Authority made in accordance with the provisions of paragraph 4 of Article VI.

(d) take such action as is necessary to enable the Authority to exercise the rights provided for in paragraph 5 of Article VI.

(e) ensure the enjoyment of the privileges and immunities provided for in paragraph 5 of Article III.

2. During the Control Period, the Occupation Authorities shall, in the event the Authority finds the German Government in default, as provided in Article VIII, apply such enforcement measures as they consider necessary and appropriate after considering the recommendation of the Authority with respect thereto.

3. After the Control Period, or after such earlier time or times as may be agreed upon by the Occupying Powers, the German Government shall be responsible for:

(a) the implementation of the decisions of the Authority made in accordance with the provisions of paragraphs 1 and 2 of Article VI.

(b) compliance with the orders issued by the Authority under paragraph 4 of Article VI.

(c) taking such action as is necessary to enable the Authority to exercise the rights provided for in paragraph 5 of Article VI.

(d) ensuring the enjoyment of the privileges and immunities provided for in paragraph 5 of Article III.

4. During the Control Period, the Occupation Authorities concerned will maintain adequate control over the management in the Ruhr coal and coke industry.

article viii

default

1. Should the German Government fail to take any action required by paragraph 3 of Article VII of the present agreement, the Authority may, after a decision supported by a majority of the votes allocated to the signatory governments, call the attention of the German Government to such failure, by service of notice thereof in writing upon the German representative on the Authority. Such notice shall afford the German Government a reasonable time within which to correct such failure, or in the alternative, to appear before the representatives of the signatory governments on the Authority and present reasons why it should not be declared in default in its obligations hereunder.

2. In the event the German Government continues its failure to take such action after receiving notice as provided in paragraph 1 of this Article, and in the absence of a showing to the satisfaction of the representatives of the signatory governments on the Authority why it should not be declared in default in its obligations hereunder, the representatives of the signatory governments may, after a decision supported by a majority of the vote allotted to them, declare the German Government to be in default.

3. In the event the German Government is declared to be in default, written notice thereof, accompanied by a statement of the circumstances which resulted in such declaration of default, shall be transmitted to the German Government. The representatives of the signatory governments on the Authority may then, after a decision supported by the majority of votes allotted to them make recommendations as to the necessary and appropriate measures to be applied.

4. During the Control Period, the recommendations provided for in paragraph 3 of this Article shall be made to the Occupation Authorities. Thereafter, the recommendations will be made to the signatory governments.

article ix

disarmament

1. During the Control Period, or until such earlier time as may be agreed upon by the Occupying Powers, the occupation authorities concerned shall maintain such 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 industry which may be prohibited or limited in the interests of security by agreement among the Occupying Powers or under the terms of any international agreement to which they may become parties.

2. After the termination of the Control Period, or at such earlier time as may be agreed upon by the Occupying Powers, the powers referred to in paragraph 1 of this Article 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 signatory governments are parties, and the Authority shall cooperate with that international body in such ways as shall be prescribed by the peace settlement or international agreement. If no such international body is established, these powers shall be transferred to the Authority to be exercised by the representatives of the signatory governments thereon in a manner to be agreed upon at that time by the signatory governments.

article x

general provisions

1. The Authority may establish such formal or informal relationship with the United Nations, its principal organs and subsidiary bodies, and with the Specialized Agencies and other intergovernmental bodies, as may facilitate the performance of its functions.

2. The Authority shall not require any action which would be inconsistent with the obligations which have been assumed on behalf of Germany in Economic Cooperation Agreements with the United States.

3. Nothing in the present Agreement shall affect the obligations of the signatories of the Convention for European Economic Cooperation under that Convention.

article xi

effective date, duration, and provision for amendment

1. The present Agreement shall enter into force as soon as it is signed on behalf of the Government of France, the Government of the United Kingdom of Great Britain and Northern Ireland, and the Government of the United States of America and shall, subject to the provisions of paragraph 5 of this Article, continue in force until the coming into effect of a peace settlement for Germany and thereafter as may be provided in such peace settlement.

2. Belgium, Luxembourg, and The Netherlands may become parties to the present Agreement by signature, and the Agreement shall enter into force with respect to each of those states upon signature of the Agreement in its behalf.

3. The organization of the Authority shall begin immediately after the present Agreement comes into force.

4. The International Authority shall begin to exercise its function on a date to be established by the Occupying Powers, but in any event prior to the establishment of a Provisional German Government.

5. The present Agreement may be amended by the agreement of all of the signatory governments on recommendations of the Authority and may be terminated by agreement between the Occupying Powers after consultation with the other signatory governments.

6. The present Agreement is executed in the English, French and German languages, of which the English and French texts are authentic.

7. The original of the present Agreement shall be deposited with the Government of the United Kingdom which shall transmit certified copies thereof to each, of the Governments on behalf of which it is signed.

Opened for signature at London this _________ day of _____ 194 ____.

In Witness Whereof the undersigned representatives, duly authorized by their respective Governments, have signed this Agreement on the dates appearing opposite their signatures.

For the Government of Belgium:

For the Government of France:

For the Government of Luxembourg:

For the Government of The Netherlands:

For the Government of the United Kingdom of Great Britain and Northern Ireland:

For the Government of the United States of America:

1. The proposal printed here was circulated to the London Conference on the Ruhr at its second meeting, November 12; see telegram 4853, Ruhrto 3, November 12, from London, supra. This draft text conformed closely to a draft agreement prepared by the Department of State’s Informal Working Group on International Control of the Ruhr, designated document ICR 28, November 6. Document ICR 28 appears to be the draft agreement under reference in paragraph 14 of instruction 459, November 10, to London, p. 465. Copies of ICR 28, the so-called “Washington draft”, appear to have been taken to London by members of the U.S. Delegation to the Conference and discussed with representatives from OMGUS. A copy of ICR 28 was subsequently transmitted to London as an enclosure to instruction 467, November 15, not printed (740.00119 Control (Germany)/11–1548). Variations between the draft printed here and the text of ICR 28 were reported in telegram 4861, Ruhrto 6, November 15, from London, not printed. (740.00119 Control (Germany)/11–1548)