740.00119 EW/9–2448: Telegram

The Acting Secretary of State to the Secretary of State, at Paris1

secret

Telmar 10. For the Secretary from Saltzman. Hoffman committee of industrialists who are to re-examine dismantling in connection recovery program has decided not to undertake assignment unless and until British and French have agreed to suspend temporarily any further dismantling, allocation or shipment respecting plants still under consideration numbering presently approximately 179 in British Zone and 90 in French Zone. Such suspension already requested by us in notes to Bevin and French Ambassador Washington, which requested also cooperation with activities in Germany of Hoffman committee representatives.

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Committee considers basic steel industry, largely concentrated British Zone, fundamental to entire study and that dismantling in steel industry tantamount in most plants to destruction, eliminating possibility reconstruction of the plants later without large cost in manpower and materials. Unofficial reports indicate British have stepped up dismantling steel plants.

Anticipate British objection that, since dismantling substantially complete U.S. Zone, it is inconsistent for us request different treatment British Zone. U.S. Zone has small basic steel capacity.

Hoffman states if British refuse suspend dismantling, he will probably have to withdraw his field investigation group, soon to go to Germany, and make public announcement of his reason for doing so. Hoffman suggests and I concur that you should point out to Bevin that continuation of dismantling plants under ECA review can have most serious consequences with Congress and U.S. public. Report that dismantling stepped up already in U.S. press and Hoffman believes British exposing themselves to severe criticism and may do great damage to European recovery program.

Request that if practical you obtain definite answers from Bevin and Schuman as to suspension and cooperation. [Saltzman.]

Lovett
  1. Secretary Marshall was in Paris as the head of the United States Delegation to the Third Regular Session of the General Assembly of the United Nations; which opened on September 21.