400.62A9/2–1750

The Chancellor of the Federal Republic of Germany ( Adenauer ) to the Chairman of the Allied High Commission for Germany ( McCloy )1

5801/0703/50

Sir: With reference to the letter from the Joint Export-Import Agency, dated 28 Nov 1949—ECON/FT–500—to the Minister of Economics concerning Retrictions and Prohibitions on Movement of Certain Items and Commodities,* may I inform you of the following:

The measures suggested by the Allied High Commission are of particularly far-reaching significance for the Federal Republic of Germany. They not only touch German trade with the Eastern countries, but also with the Soviet zone of Germany. Under the existing circumstances the Federal Government cannot disregard the need for such measures, and is therefore ready to put into effect the restrictions and prohibitions on the export and import of certain articles and commodities, as demanded.2 Coupled with this decision, however, the Federal Government would earnestly request to be placed on a footing of complete equality with other participant countries as regards these restrictions on its trade.

May I mention that heretofore the Federal Republic of Germany has not enjoyed the same treatment as other countries. I enclose herewith a memorandum3 giving more details on this matter. I take the liberty in this connection to point out specially the following aspects:

The complete positive lists as drawn up by the United States so far have been applied only to exports from the United States proper [Page 74] and from the Federal Republic of Germany. In the other countries of Europe, a control is exercised, if at all, according to the so-called Anglo-French List,4 comprising only 70 to 80% of the items of the complete United States list. The Federal Government feels it is specially important that uniform positive lists be drawn up and put into effect as soon as possible for all participant countries.

Furthermore, the trade agreements at present in force constitute a special problem.

In the discussions which have taken place to date in Paris on this question the view has been put forward that these trade agreements should continue to be fulfilled, even where they cover items contained in the positive lists. The Federal Republic of Germany has in this connection been placed at a disadvantage since the United States’ lists had already been applied to Germany’s trade agreements, while, for example, British agreements with Eastern countries contained items of commodities which were ruled out for Germany. Here, too, the Federal Government is moved to insist on equal treatment and therefore asks to have it brought about that either all countries cease to supply commodities shown on the positive lists regardless of their obligations under any trade agreements, or, should for basic principles the fulfilment of the agreements be felt to be desirable, that German industry be allowed to supply the corresponding items to Eastern countries during the period in question.

For the rest, may I point out that, as shown in the enclosed memorandum, the Federal Republic of Germany will through these measures suffer losses in its foreign trade amounting to 150 to 200 million $, to which must be added a loss of from 40 to 50 million $ in its trade with the Soviet zone. In addition, the economy of Berlin will suffer losses which very likely can be made up only by higher subsidies.

Accept [etc.]

Adenauer
  1. This letter was referred by the Allied General Secretariat of the Allied High Commission for Germany to the Foreign Trade and Exchange Committee of the Allied High Commission as document AGSec (50)207, February 6, 1950. The source text was transmitted to the Department of State as an enclosure to despatch 235, February 17, from Frankfort, not printed. John J. McCloy was United States High Commissioner for Germany. The chairmanship of the Allied High Commission rotated among the American, British, and French High Commissioners.
  2. Subject title as used in HICOM/P(49) 74. Actual text reads “Restrictions and Prohibitions on the Export and Import of Certain Commodities”. [Footnote in the source text. Under reference here is a letter from the Allied High Commission to the Federal Republic of Germany, dated November 25, 1949, and delivered November 28, requesting the Federal Republic to assume the responsibility for the administration of security export controls until then administered by agencies of the tripartite occupation authorities. Documentation regarding this letter is printed in Foreign Relations, 1949, vol. v, pp. 61 ff.]
  3. Under cover of a letter of April 4 to the Allied High Commission, not printed, Chancellor Adenauer presented the detailed plans and instructions covering the proposed new German Federal export control procedure. Allied High Commission approval of the procedures was conveyed in a letter of April 21 to the Federal Government, not printed. The texts of these communications were included as enclosures to despatch 783, May 8, from Frankfort, not printed (400.62A9/5–850). The new procedures went into effect in the Federal Republic on May 10.
  4. Not printed.
  5. The “Anglo-French List” was an earlier version of the International Lists referred to in footnote 3, p. 67.