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

London Embassy Files: File—850 Marshall Plan: Telegram

The Deputy Administrator of the Economic Cooperation Administration ( Bruce ) to the Economic Cooperation Administration Mission in the United Kingdom

secret

[ Washington ,] November 19, 1948—4 p. m.

ECATO 414. To Finletter for Saul Nelson. Reference Repto 1572 November 15.¹

1. Subject: ECA and Ruhr International Authority.

2. Reference your recommendation as to position of ECA in regard to power of Ruhr Authority. It is view of ECA Washington which has been fully discussed with and agreed by Harriman that we should neither go down the line in support of State Department position or maintain an attitude of strict neutrality. Believe that ECA should not take initiative in discussions this matter but should give mild support to State Department expression of views. While you may express agreement with State Department views, our position should essentially be a passive one in these negotiations.

3. State Department and Department of the Army now working on revision of draft annex on relationship of Ruhr Authority to OEEC which may be acceptable to Clay. Suggest taking no position until that has been presented.

Bruce

1. Not printed; in it Saul Nelson reported on the differences of view between State Department officers and OMGUS representatives on the U.S. Delegation to the London Conference on the Ruhr regarding the relationship to be established between the proposed International Authority for the Ruhr and O.E.E.C. State Department officers maintained that Bizonal economic aid programs would have to be coordinated with the proposed I.A.R. before being submitted to the O.E.E.C. According to Nelson, the E.C.A. could adopt one of two viewpoints regarding the difference of view: either E.C.A. could maintain a neutrality in the argument or it could support the State Department position fully. (CFM Files, Lot M–88, Box 130, File—Incoming telegrams Ruhr Conf.)