740.00119 Control (Germany)/1–2149: Telegram

The Secretary of State to the United States Expert at the Technical Committee on Berlin Currency and Trade (Knapp), at Geneva

top secret
us urgent

60. For Knapp.

I. Dept commends your analysis Geneva discussions and effective presentation before Committee. Air Pouch material not yet received. How was this addressed?

II. Re questions raised by ur Niact 53.1

Do not share firm Brit and Fr objections to exchange of four experts replies. Probable that apart from US counter proposal Sovs informed through Committee of nature Western Experts replies and differences. In view reported more extensive Sov objections to Committee’s preliminary plan some advantage might be gained in obtaining more precise info by mutual exchange. We would be willing if Brit and Fr agree to authorize Committee to effect exchange by oral communication of substance respective replies.
Re ur suggestion to include clause in Committee’s proposal establishing financial committee to supervise execution of agreement, request you reserve such action until more is known re Sov comments, and further instructions sent from here.
Re Committee’s future alternative courses of action we likewise favor course four or combination of four and one on basis info presently available. Request your comments on how these might be affected by plan set forth below.

III. We are informally considering following approach:

We would again stress premise we have always maintained that Committee’s preliminary recommendations are unworkable because of split city admin and Sov political actions.

We would urge reconsideration our counter proposal as offering basis of standstill interim solution under circumstances of split city. Acceptance would afford provisional protection of legitimate interests Four Powers in Berlin and would permit lifting of blockade.
In line with Gen Clay’s previous suggestion we would indicate willingness to negotiate with Sovs re unification of city admin through discussion of new city constitution which was pending consideration before breakup of Kommandatura.
If this step successful we would then either separately or concurrently with scheduled CFM be prepared to reconsider neutral experts plan with appropriate amendments or a new plan for use single currency adapted to circumstances of uniform city admin to be established.

[Page 663]

Above under Sec III is purely for your info and comment to us. We have following questions. If Brit and Fr agreement obtained should we put this proposal forward in present Geneva discussions or to neutral SC members following Committee’s final report to SC President.

Dept not yet received Brit and Fr amendments Committee’s preliminary plan. Pls cable these since we would like to examine them before reaching definite decision on above.

For London, Paris and Berlin:

Above proposal is solely for your info and not to be discussed with Brit and Fr.2

  1. Extract printed supra.
  2. Repeated to London as 244, Paris as 187, and Berlin as 89.