740.00119 Control (Germany)/12–1048: Telegram

The Acting Secretary of State to the United States Political Adviser for Germany ( Murphy ), at Berlin

top secret   us urgent

1945. Dept has seen Clay’s signal CC–7026, Dec 9,1 to Army and agrees that differences re occ statute should be handled through diplomatic channels. Dept did not suggest intergovernmental conference but this was done by Fr and Brit.

Subject to urgent comments yourself and Gen Clay, with whom Army is communicating, Dept feels it might be advantageous to inform Brit Emb Monday, Dec 13, that we are prepared to discuss immediately basic points of difference with Brit on occ statute as outlined Clay’s message, namely, responsibility for DP’s and reservation financial and economic controls. (Ur Dec 3 letter1 containing supplementary info meantime received.) This step would enable us to put before Brit strongly our views, which are those of Gen Clay and might produce change Brit position at next Mil Govs meeting Dec 16. If this [Page 637] were the case it would strengthen subsequent concerted effort on Fr after Mil Govs meeting respecting remaining differences.

On assumption principal difficulties to be worked out with Fr relate only to court and occupation costs, in regard to which State and Army are now informed, we are prepared to initiate discussions with Fr Emb here. If necessary Brit could joint us here or act independently in London with Fr Emb. If these first discussions unsuccessful we and Brit could then make joint approach in Paris to Schuman.

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