CFM Files: Lot M–88: Box 125: File—Tripartite Agreement Regarding the Saar

Economic Agreement Between the United States, the United Kingdom, and France Regarding the Saar

secret

In January and February 1948, US, French and British experts met in Berlin to settle technical problems resulting from the economic attachment of the Saar to France. The following agreement was signed in Berlin on 20 February 1948:

I. Saar Coal

Agreement was reached that the coal produced in the Saar Territory shall be considered as a common resource with the coal produced in France. A letter has been sent by the three governments (American, French and British) to the Economic Commission for Europe to notify it of the agreement reached on this subject (see Appendix A1). The agreement foresees a period of transition between the old and the new regime. During this period the Saar is pledged to deliver to the Combined British and US Zones of Germany and the French Zone of Germany the following quarterly tonnages of hard coal: second quarter, 1948, 825,250 tons; third quarter, 1948, 577,750 tons; fourth quarter, 1948, 330,250 tons; first quarter, 1949, 82,500 tons; second quarter, 1949, nil. The distribution of coal in Germany and the adaptation [Page 74] of the sliding scale as agreed at Moscow will be effected in accordance with Appendix B.2

II. Saar Separations

It has been agreed that the total sum to be deducted from reparations of capital equipment due to France, on account of the separation of the Saar Territory from the German Economy, should be 70 million Reichsmarks. This sum is calculated according to the same principles as govern the valuation of reparations plant. An agreed letter (as shown in Appendix C3) will be addressed to IARA by the three governments to notify it of the agreement thus reached.

It has been further agreed that the American and British Governments will give to their representatives at the IARA the necessary instructions so that these representatives will accord a favorable reception to the French Government’s request that the above mentioned debit to the French reparations account should be spread over a period of time.

III. Exchange of Trade

The following agreement was reached:

(1)
Trade between the Bizone and the Saar will be put on a Foreign Trade basis as from 1 April 1948. All payments resulting from trade will be made through the mechanism established between the Franc Area and the Combined Zone (US/UK) of Germany. This arrangement, however, will not apply to such deliveries of Saar Coal to the Bizone as will still be made under the agreed plan for the withdrawal [Page 75] of Saar coal from the German pool. Coal prices in Reichsmark will be based on the equivalent Ruhr prices.
(2)
The Germans will be instructed to draw up a Bizone/French Zone Trade Agreement for the period April/December, 1948, with definite delivery quotas either side, which gives a surplus of deliveries from the French Zone to the Bizone of 50 million Reichsmarks. Coal deliveries from the Bizone to the French Zone will not be included in the trade agreement. Coal will be charged to customers at prevailing Ruhr Reichsmark prices. The commodities exchanged should not merely meet the specified money totals but should also, as far as possible, be of comparable economic value.
(3)
Mixed committees, Allied and German, shall be established to watch this trade and to adjust deliveries in order to ensure the requisite surplus of deliveries from the French Zone to the Bizone. The French Military Government and the Military Governments (US/UK) will consult together to ensure that the necessary adjustments are made in the trade agreement if it appears that the agreed delivery quotas cannot be fulfilled and that the requisite surplus of deliveries from the French Zone, to the Bizone will not be achieved.
(4)
This arrangement will remain in force until the end of 1948. Discussions will be initiated not later than September 30, 1948, to determine the arrangements to apply after the end of 1948.
(5)
Any proposal from either side for supplies of coal in excess of those shown in Appendix B shall be subject to fresh agreement for such supplies.

IV. Transferring to Foreign Trade Basis

Agreement was also reached on the technical methods to be employed in transferring trade between the Bizonal Area and the Saar from ah Interzonal Trade basis to a Foreign Trade basis.

  • L. Wilkinson
  • Cecil M. Weir
  • Paul Lerot Beauueu
  1. Appendix A is not here printed; it was the text of a letter of January 26, 1948, from the United Kingdom Delegation to the Economic Commission for Europe to the Executive Secretary of the Commission. Regarding the letter, see footnote 2 to telegram 259, February 1, from Berlin, p. 55.
  2. Appendix B is not here printed. 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. 486488.
  3. The agreed draft letter to be addressed to the Inter-Allied Reparation Agency by the Governments of the United States, the United Kingdom, and France read as follows:

    “We have the honor to inform you that the American, British and French Commanders in Chief have agreed to fix at RM 70 million the total amount which should be deducted from reparations of capital equipment due to France, on account of the economic separation of the Saar from Western Germany. This sum has been determined according to the same principles that govern the valuation of reparations plant. It has been calculated to include:—

    (a)
    Industrial equipment in the Saar that would have been removed as reparations if the Saar had remained an integral part of the German economy.
    (b)
    Industrial equipment additionally retained in Western Germany in order to maintain the German economy at the permitted level despite the loss of the Saar.

    We shall be obliged if you will communicate the contents of this letter to the Member Nations.” (CFM Files: Lot M–88: Box 125: File—Saar Documents)