740.00119 EW/4–348: Telegram

The Acting Secretary of State to the Embassy in the United Kingdom

secret   niact

1160. Personal from Saltzman to Douglas. Reurtel 1339 April 3.1 Following are terms of reference of Technical Mission as agreed here subject to your comments and Clay’s. Contemplated to authorize you agree to such limitations thereof as are necessary and appropriate to obtain adequate cooperation from those governments, subject to reference of any important points to Washington.

“1. The purpose of the Technical Mission is to study plants preliminarily determined by the Cabinet working group or by the authorities of the respective zones of occupation to be technically equipped to produce critical items for European recovery which are in world-wide short supply, and to recommend which, if any, of such plants should be retained in Germany in order best to help achieve the objectives of the European Recovery Program. In arriving at its recommendations the Mission will

give consideration to the feasibility of promptly bringing the plants into substantial production, without at the same time adversely affecting the planned recovery either of the German economy or of the nations participating in the European Recovery Program. In so doing it shall give consideration to all factors involved including, but not limited to, the availability of and competing demands for manpower, raw materials, food, fuel, power, transportation and similar [Page 743] items, both in Western Germany and in other countries participating in the European Recovery Program;
study and evaluate the feasibility of and time required for the reestablishment of the plants in the IARA countries which are participants in the European Recovery Program.

2. The examination of plants in the United States zone of occupation will be made under the authority and pursuant to arrangements made by the Mission with the Military Governor of the U.S. Zone of Occupation. He will be informed of these terms of reference.

3. The examination of plants in the British and French zones of occupation will be made under the authority of the respective zonal commanders, and pursuant to arrangements with the governments of the United Kingdom and of France. Arrangements with these governments will be made by Ambassador Douglas, and all negotiations with the British and French Governments which are appropriate to carry out the purposes of the Technical Mission will be conducted by Ambassador Douglas or pursuant to his direction.

4. The purposes and work of the Technical Mission will be considered secret, and no publicity will be given thereto unless the Department of State with the concurrence of the other interested departments shall so determine.”

Foregoing terms agreed by working group before your 1342 April 32 received. How do you think we should proceed to reconcile two approaches?

Although all of foregoing terms fully agreed question left open whether there should not be included as an additional item proviso that Moscow sliding scale for coal deliveries be adopted as a guiding principle. Will advise you soonest of outcome further negotiations this point. [Saltzman.]

  1. Not printed; it reported that the British Foreign Office was preparing draft terms of reference for the Cabinet Technical Mission on German Reparations which was soon to arrive in Europe to take up its work (740.00119 EW/4–348). The text of the British draft terms of reference was subsequently transmitted to the Department of State in telegram 1342, April 3, from London, not printed (740.00119 EW/4–348).
  2. Not printed; see previous footnote.