862.5151/9–2349: Telegram

The Office of the United States High Commissioner for Germany to the Embassy in France 1

top secret
priority

210. For Bruce.

This refers to your 61 of 22 September2 re your conference with Premier. With respect to third incident can only think this based on Premier’s complete misunderstanding of what took place at Bonn September 21 meeting with Germans. To post you on this subject I am repeating to you, Harriman and Holmes my yesterday’s cable number 2473 to State Department,3 outlining what actually took place. Coal price was never discussed nor did US or any other Allied representative mention 25 percent. He further misinformed with re to Americans [Page 456]insisting upon larger devaluation than Germans themselves had demanded. US and Allied representatives merely listened to German proposals and expressed no opinion with re to 25 percent figure, which came as complete surprise to them since earlier in day Erhard informally told Shepard Morgan that 23.8 cent [percent?] figure was the one Germans had in mind. Your dispatch was received during meeting here today three Allied financial advisers. Morgan and Buttenwieser apprised French adviser of above points and he, together with French representatives present at September 21 meeting, confirmed correctness of above statements. Furthermore, he informed Morgan and Buttenwieser of general contents his advice to Paris which confirmed that no mention of subjects indicated above was contained his report.

Greatly regret Premier’s misunderstanding and consequent difficult interview for you, but as French representatives here now posted as to Premier’s misinformation assume they will clear up his misapprehensions as assume you will too.

Sent Paris 210 for Bruce; repeat to OSR, Paris for Harriman, repeated Berlin 157 for McCloy, London 188 for Holmes, Department 2539 for Secretary and Under Secretary; repeat ECA Washington for Foster.

McCloy
  1. The source text is the copy in the Department of State files.
  2. Same as telegram 3947, p. 451.
  3. Ante, p. 452.