501.BC/11–348: Telegram
The Secretary of State to the Acting Secretan
urgent
Delga 580. For Lovett from Jessup. Reply your 4245, November 1,1 SYG has become very active. He has talked twice with Vishinsky and has gotten “green light” for proceeding with technical studies by Sobolev and Feller under SYG’s direction. We have indicated generally we have no objection to SYG making technical study on matter before UN and shall be glad to furnish all information to Feller. Lie desires to proceed at present in greatest secrecy. Lie proposed to Vishinsky that secretariat experts should either proceed to draft general principles on currency or at once draw up detailed regulations. Vishinsky said first alternative was probably more in line now but that second alternative was fundamentally the best.2 Jessup in weekend visit to Berlin had discussed all angles with people there and appreciates their necessities as indicated in your reftel. On the other hand, he gained impression that Berlin fully appreciates general diplomatic situation of relation with other governments in UN discussions at Paris. Contrary to impression indicated your 4215, October 29,3 we have been proceeding with staff work here looking toward course four rather than course two,4 but consistent with decision three Foreign Ministers carefully avoiding giving impression we are anxious for solution. Discounting at 1000 to one probability Soviet desire for real settlement of Berlin situation, we still feel Paris situation requires further acquiescence in any neutral effort productive of some result which we could accept without prejudice our fundamental position, as final test of Soviet willingness to reach agreement. If that move fails, [Page 1248] procedure under course two of Delga 503 along lines your reftel should be considered. We understand importance attributed to tenth or twentieth of month but believe November 10 not feasible under all the circumstances. Also believe final decision re twentieth must be postponed to determine trend and effect current efforts of SYG. Lie is seeing Cadogan and Parodi this morning. In brief conversation with Jessup last night Cadogan indicated no objection to the general approach Lie has in mind but since Lie had already arranged to see him I did not discuss details of Lie’s activity. Cadogan had received no instructions yet along lines of new currency measures in Western sectors.
The Secretary and Dulles concur in these general recommendations.5 Repeated London as 1174; Berlin for Murphy and Clay as 678; Department relay Moscow as 576. [Jessup.]
- Not printed: in it the Department of State expressed its view that the “wait and see period” was drawing to a close, and the decision must shortly be taken on the introduction of the western mark in Berlin, because of the deteriorating economic conditions in the city. At the same time the introduction of the currency must be coordinated with the diplomatic initiatives of the western powers at the United Nations. (501.BC/11–148)↩
- On October 31, Gross prepared a memorandum for Jessup in which he gave a detailed account of Lie’s activities during the last week of October on the Berlin case. This memorandum is in file 740.00119 Control (Germany)/10–3148.↩
- Not printed.↩
- The references here are to paragraphs 4 and 2 of Delga 503, October 27, from Paris, p. 1236.↩
- In telegram 4716, November 4, from London, not printed (740.00119 Control (Germany)/11–448), Douglas also concurred in the recommendation that the-three western powers should proceed, at the proper moment, along the lines of paragraph 4 of Delga 503, p. 1236, and in the desirability of continuing the tactics agreed with Bevin and Schuman at the meeting of the three Foreign Ministers October 27 (Delga 509, October 27, from Paris, p. 1238).↩