Foreign Relations of the United States, 1949, Council of Foreign Ministers; Germany and Austria, Volume III

Department of Defense Files

The Department of the Army to the United States Military Governor for Germany ( Clay )

top secret
priority

Washington , 12 May 1949.

WARX 88559. Fr CSCAD cite EUR. MA Paris pls pass to Harriman for info. Reurad May, CC 8532.¹ Controls of 1A and 1B lists is subj.²

1. State was aware of problem of 1A and 1B controls during discussions in New York for lifting blockade and nothing in detailed conversations commits US beyond language of Four Power communiqué.³ It was not intended that this agreement would affect 1A and 1B lists and one line of reasoning may be that discussions and agreement was confined to restrictions and counter restrictions which were part of blockade. Our understanding is that documentation was rqd for all shipments to Soviet Zone prior to 1 Mar 48. We do not construe blockade agreement to rq US not to have controls or to permit free trade.

2. We wish to avoid specific issue on 1A and 1B lists and request you use whatever adm devices possible to achieve this purpose. We have thought that most desirable im arrangement for this and other purposes might be to revert to barter trade under interzonal trade agreement of character in force prior to blockade.

3. What agency will handle trade relations with Soviet Zone? Will it be JEIA? Would appreciate advice whether you have discussed list problem with British or French. In view approaching conversations with them and CFM, desirable Washington and CFM delegation be kept closely infod of developments. Presume you are also in touch with Harriman and Collisson ⁴ on this problem.

4. Appreciate this will make difficulty for you and foresee possible necessity instr as situation develops. As you know, relations with Soviets in this field present difficult problems rqg careful handling and urgent that we be infod soonest of any indication that Soviets may attempt to press issue of 1A and 1B lists controls. Active consideration being given here to position which should be taken in this event which will of course rq careful coordination with British and French. Ur suggestions would be appreciated.

[ Magruder ]

1. Not printed; in it Hays asked whether interzonal licenses for passage of prohibited goods consigned to the Soviet zone and Berlin should be refused or delayed. (Department of Defense files)
2. The reference here is to lists of goods and materials which the United States wanted to prohibit completely (1A) or restrict (1B) from being traded with the Soviet Union and the eastern bloc. For documentation relating to United States policy on East–West Trade, see volume v .
3. For the text of the Four-Power communiqué, May 5, which reported the lifting of restrictions on trade and communications with Berlin and the convoking of the Council of Foreign Ministers, see editorial note, p. 750.
4. Norman H. Collisson, Chief of the ECA Mission to Bizonia.