462A. 62B31/12–151: Telegram

The Acting Secretary of State to the Office of the United States High Commissioner for Germany, at Bonn1

secret   priority

514. Reurtels 580 Nov 30, and 582 Dec l.2 a. Dept appreciates full reporting recently on IZT negots, but we are much concerned over holes in Western embargo dike which are apparently already developing. In our view, any exceptions to embargo (unless clearly warranted by most exceptional circumstances), even though themselves not of primary importance to East, give East an indication that Western position is not so immovable that further concessions cannot be obtained. This has proved all too true in past. We will not even approach solution to this Berlin problem, Dept feels, until we have been able to exert full economic pressure and until East concludes that such pressure will continue and cannot be largely negated by so-called small exceptions. We had intended our phrase in Deptel to Bonn 3853HICOG is authorized to take any steps it considers necessary and advisable to effect trade cessation” to include at least referring undesirable FedRep proposals to HICOM council and govts if necessary to prevent their acceptance. This authorization continues.

Under present circumstances, we feel FedRep proposal to extend WBS for “about DM 3 millions” likely to nullify for considerable period effectiveness embargo, for reasons given above. Exception for water pipe, if used to combat typhoid and if balanced by equivalent brown coal deliveries to Berlin, may in our view be permissible. (We should of course take full propaganda advantage this transaction). What are probable counter-deliveries for DM 3 millions and for fish? Wld not excepting fish from embargo enable East to hint that recent widespread advertisements by fish handlers in KPD press (Bremen Des 2294) resulted in exception?

On the possibility that chance remains for reversal FedRep position re extension WBS and since we fear that further FedRep concessions cld altogether nullify effect embargo, suggest matter be taken up with Chancellor either unilaterally or thru HICOM, immed upon his return,5 since Chancellor has appeared much more in sympathy with larger issues of this problem than Erhard or working level reps [Page 1889] (who appear more activated by desire promote exports to Sov Zone). It might be emphasized to Chancellor that East has benefited since beginning WBS problem through Western delay, indecision and “small” concessions, of which paramont was signing of agmt on understanding that its implementation wld be contingent upon certain action by East. This action has not been satisfactorily evident to date and there is no reason to expect that it will be forthcoming so long as East can obtain or believes it will in future be able obtain shipments from West in any event. Any concessions our part, except for most obviously warranted exceptions and particularly in light of widespread favorable press stories pointing to “complete” trade cessation, wld be immed interpreted by East as indication that further and more important concessions are obtainable through stubbornness. We believe Chancellor shld be informed FedRep officials appear favor only minimum effort to carry out threat reported his letter of Sept 20.6

Dept reiterates that it considers it of utmost importance to impose maximum pressure on East through trade weapon. Any moves by West which relax this pressure are interpreted by Sovs as signs of weakness and therefore nullify purpose of embargo.

b. Re further concessions desired by FedRep (urtel 582), Dept does not feel that such are warranted, at least until effect embargo has become evident.

Webb
  1. This telegram, drafted by Rogers and Montenegro, and cleared with Riley, Hillenbrand, Olson, and EDS, was repeated to Berlin, London, Paris, and Moscow.
  2. Neither printed; they reported on meetings between Federal Republic officials and representatives of the High Commission during which the Germans requested extension of trade between the zones until December 31 and asked particularly for Warenbegleitscheine for shipments of steel, machinery, chemicals, rubber, and fish. (462A.62B31/11–3051 and 12–151)
  3. Same as telegram 3124, supra.
  4. Not printed.
  5. Chancellor Adenauer was in the United Kingdom for a state visit.
  6. Not printed. For the substance of this letter, see telegram 2532, September 19, p. 1872.