740.00119 Control (Germany)/11–1748: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
266. Personal for Saltzman and Hickerson. I attended at Frankfurt yesterday a meeting of the three Military Governors for a discussion of the following subjects:2
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7. Limited and prohibited industries. Koenig referred to this question, and Clay stated that he would be glad to hear the views of his [Page 833] colleagues, but that Military Governors are not in position to act until ECA Administrator Hoffman has made his final report. Further discussion of this question was postponed. Koenig referred in this connection to items relating to atomic energy, stating that French Government had instructed him to raise this question within the framework of limited and prohibited industries. French desire all atomic industry items to be prohibited and suggested it would be desirable that this matter be given priority by the Military Security Board3 after list of limited and prohibited industries has been finally established. It was pointed out by the US and UK that they had already discussed this matter but agreed that the discussion would be enlarged to include the French both regarding exports and imports and also under the heading of security as a long-range proposition. Clay pointed out that JEIA is now the only agency actually in a position to control exports.
Naval construction. The economic advisers were instructed to prepare a paper summing up the differences in the point of view regarding ship construction.
Robertson raised the question of the duration of the restrictions relating to limited and prohibited industries. He said that the UK believes that the agreement now being negotiated4 would apply up to the conclusion of the peace treaty, but that the UK contemplates that these restrictions would be maintained in the peace treaty. Koenig said that his government contemplates permanent limitations and prohibitions. Clay emphasized that his authority to discuss this matter extended only to the period of occupation. Robertson also raised a question regarding the application of Control Council Law No. 435 regarding items which could be manufactured only by special permission and referred to white phosphorus. It was agreed that this question should be carefully examined by the economic advisers in consultation with the Military Security Board.6
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- For other portions of this telegram, reporting on the discussion by the Military Governors of the work of the Parliamentary Council in Bonn, see p. 440.↩
- For portions of General Clay’s report on this meeting, covering the discussion of the work of the Committee on Allied Controls and the Tripartite Working Party on the Occupation Statute, see message CC–6781, November 18, from Clay, p. 630.↩
- Regarding the Military Security Board, see pp. 665 ff.↩
- Regarding the efforts of the working party of the Military Governors to negotiate an agreement covering prohibited and limited industries in Western Germany, see the editorial note, p. 668.↩
- Allied Control Council Law No. 43, December 20, 1946, defined those war materials whose manufacture, importation, etc. were prohibited.↩
- The question of limited and prohibited industries was briefly discussed again by the American, British, and French Military Governors at their meeting in Frankfurt on November 30. General Clay again stated that he could not take a position on the matter until E.C.A. Administrator Hoffman had made his report on reparations.↩