740.00119 EW/12–1048: Telegram
The Acting Secretary of State to the United States Political Adviser for Germany (Murphy), at Berlin1
1946. For Murphy and Clay. Reourtel 1933,2 further discussion with ECA and Army results in agreement that negotiations by U.S. Military Governor re prohibited and restricted industries will be carried out under instructions initiated in State in formulation of which views of ECA and Army will be coordinated.
If negotiations result in any industry remaining in prohibited or restricted category, plants declared surplus in such industry will not be subject Humphrey Committee review, except in steel industry where Humphrey Committee recommendations as to specific plants will be given consideration.
Plants declared surplus in other industries will be reviewed by Humphrey Committee.
Above agreement subject to following two considerations:
- a.
- With respect to applicability of paragraphs 2 (a) and (b), London’s 5157 repeated Berlin 1931, to industries such as synthetic rubber, we may wish to see only those portions of plants destroyed or removed as is necessary to make prohibition or restriction effective and leave remainder in Germany for production of needed non-prohibited or non-restricted items.
- b.
- With respect to restricted industries, in addition to steel, principle would be maintained keep sufficient capacity, to include necessary margin so that as practical matter, the limited production could be attained.
With reference continuance negotiations prohibited and restricted industries, Government position to be furnished soonest.