The United States High Commissioner for Germany (McCloy) to the Secretary of State
9. For Acheson from McCloy.
Department pass to Treasury for Martin, ECA for Hoffman and DA for Voorhees.
Following decision taken at meeting of HICOM held 0600 hours this date:
Decision of the Allied High Commission on the revaluation of the Deutsche mark the Council of the High Commission decides as follows:
- The Allied High Commission does not interpose any objection to the Government of the Federal Republic of Germany establishing a conversion value for the Deutsche mark in terms of United States dollars at the rate of 0.238 United States dollars per Deutsche mark.
The High Commission recognizes that any discriminatory practices and dumping which may exist must be eliminated and measures must be taken looking toward the elimination of any subsidies, direct or indirect, granted in order to support such discriminatory practices and dumping; this should be accomplished by January 1, 1950. The [Page 472] High Commission has ordered that any inquiry order by the High Commission on discriminatory trade practices, action will be taken within seven days to ensure that the interests of coal importing countries are not prejudiced by the present devaluation of the Deutsche mark. This may be achieved by (a) maintaining the same price in Deutsche marks for export coal as before the present devaluation; or (b) adjusting the export and/or the internal prices of coal so as to ensure that the differential between the two is not wider than before the present devaluation. The Government of the Federal Republic of Germany is to submit to the High Commission measures to implement the foregoing.
Done at Bonn, Petersberg, September 27, 1949, A. François-Poncet, French HICOM for Germany—John J. McCloy, US HICOM for Germany—B. M. Robertson, UK HICOM for Germany.
Due to necessity for permitting German Cabinet to act, request no publicity until released here. Deeply appreciate support of Secretary and Department in a very trying situation.
Sent Department, repeated Paris for Bruce and Harriman, Brussels 1 for OSR, London 4 for Holmes, Luxembourg 1, The Hague 1.