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

CFM Files: Lot M–88: Box 133: File-—Ruhr Authority, Vol. I: Telegram

The Under Secretary of the Army (Draper) to the United States Military Governor for Germany (Clay), at Berlin

secret
priority

[Washington,] 17 November 1948.

Warx 92764. Personal to Clay from Draper. USMA pass to Hannaman and at request State Dept pass to Ambassador Douglas. From SAOUS.

1. Reference to MA London’s 74227¹ and FMPC 1008,² have now had opportunity to discuss Ruhr Authority problem with Saltzman and Nitze. While the following does not cover all the points involved, this may help to clarify position here. We are agreed:

A. Ruhr Authority becomes operative just before new German Government is established.

B. Regardless of responsibilities or authority given to either Ruhr Authority or OEEC in agreement under discussion, it is understood that final authority with respect to allocation between indigenous use and export of coal, coke and steel (subject only to international agreement such as the Moscow sliding scale³) rests in the Bizonal (or Trizonal) authorities and ultimately under the JEIA Agreement in the US Military Governor.

This is on the understanding that the occupation authorities (US Military Governor under the JEIA Agreement) have the right to set aside the authority findings to the extent that it is considered necessary on financial grounds.

This understanding is derived from the agreed minute on Article 6B of Annex C of the London Agreement⁴ which refers to the Bizonal Fusion Agreement and any Trizonal Fusion Agreement which may be concluded. Ambassador Douglas instructions specifically mention this understanding and authorize him to state it to the other governments if he considers it necessary.

C. That present language of draft annex covering OEEC relation: undesirably complicated. Effort being made to redraft in simplified form to submit to Berlin and London for consideration.

D. Para 1 of Hannaman’s 74227 being discussed further here but believe this can probably be largely resolved by further discussions in London.

2. There remains the question of appointment of the US representative by either Military Government or by the Government itself here.
We are still discussing this problem with State and will give you comments.

3. State requests that copy of this message be passed to Douglas. State concurs in this message.

[

Draper

]

1. November 12, p. 479.
2. November 15, p. 498.
3. On April 19, 1947, during the Fourth Session of the Council of Foreign Ministers, held at Moscow, Secretary of State Marshall, British Foreign Secretary Bevin, and French Foreign Minister Bidault agreed on a sliding scale of coal exports from the Western Zones of Occupation of Germany. For the texts of the exchange of communications between Secretary Marshall and Foreign Minister Bidault constituting this “Moscow Sliding Scale Agreement”, see Foreign Relations, 1947, vol. ii, pp. 486–488. Following discussions in Berlin in September 1947, the Moscow Sliding Scale Agreement was revised somewhat and extended to the end of 1948; see telegram 3244, October 1, 1947, from Berlin, ibid., p. 1096, and annotations thereto. In his message CC–6580, November 3, 1948, from Berlin, not printed, General Clay advised that French authorities in Germany had asked for an extension of the Moscow Sliding Scale Agreement. General Clay observed that lapse of the agreement would cause tine whole problem to fall into the new perspective of the prospective International Ruhr Authority and might involve an increased scale of German coal exports (CFM Files, Lot M–88, Box 133, File—Ruhr Authority, vol. i ). Telegram Warx–92841, November 18, to General Clay, not printed, authorized agreement to a one-year extension in the Moscow Sliding Scale Agreement (CFM Files, Lot M–88, Box 133, File—Ruhr Authority, vol. i ).
4. Annex C to the Report on the London Conference on Germany, June 1. p. 309, is the same as document TRI/16 (Final), May 26, p. 285. The “Agreed Minutes” under reference are set forth in document TRI/23 (Final), May 26, p. 290.