740.00119 Control (Germany)/12–548: Telegram

The United States Political Adviser for Germany (Murphy) to the Embassy in the United Kingdom

top secret

908. Clay has requested that I repeat for your information his CC–6977, December 5 to Draper:

Reurad W–80662,1 if French insist on Ruhr paper to effect western German govt then it seems to follow they are insisting on full adherence to London agreement and logically would have to accept Ruhr authority under terms of London agreement.

“However, if this is French stand, I would suggest the following alternative which while not committing us at this time to further controls, leaves the question at least part way open, Alternative proposal follows:

“During the control period (continuance of military govt) security is assured by military govt acting through the military security board and the coal and steel control groups. Prior to the relinquishment of military govt responsibilities which include the coal and steel control groups, the military security board will study and recommend to their govts the control responsibilities now exercised by the steel and coal control groups which should be transferred to the Ruhr authority. End of alternative.

“This brings security board in picture, recognizes the possibility of additional controls being given to Ruhr authority while at same time avoiding commitments on ownership and management. Coal and steel groups particularly are charged with prevention of ownership and management to former Nazis and to prevention of cartelization of industries. Actually, they have no other control over ownership and their supervision of management is policy-wise at top level. If this alternative could be adopted, it might save situation for all.”

Sent London personal for Douglas 908, repeated Dept [personal for Saltzman and Hickerson 2876], Paris personal for Caffery 1000.

Murphy
  1. Not printed.