762A.0221/4–1951

The United States Member on the Intergovernmental Study Group on Germany ( Holmes ) to the French Member on the Intergovernmental Study Group on Germany ( Massigli )1

secret

I wish to inform you that I am recommending to the United States Government that it approve in the shortest possible time the recommendations which the Intergovernmental Study Group on Germany has today agreed to submit to Governments on the revision of the Prohibited and Limited Industries Agreement. At the same time, I should like to make clear that the United States Delegation regards the recommendations as constituting only an interim measure and that it had been the hope of the United States Government that a more far-reaching and definitive set of proposals could have been worked out.

The draft agreement which we have recommended to Governments for approval provides the possibility of early review under certain conditions and in any event by the end of the year. It is the view of the [Page 1387] United States Government that, aside from any other circumstances which may call for review of the Agreement, once agreement has been reached on German participation in defense, far-reaching revisions of the controls over German industry will be required. The Brussels agreement provides for certain safeguards, including the prohibition of the production of certain military items. Subject to these safeguards, it provides that German production should contribute to the greatest extent possible to the support of the German contribution in manpower, and to such other phases of the common defense as may be reasonable and within its capabilities. In the view of the United States Government, the maintenance of any prohibitions or limitations, on German industry, except the prohibitions specifically provided for in the Brussels agreement and any additional prohibitions or controls necessary to give them effect, would be inconsistent with the policies laid down in the Brussels agreement. In the view of the United States Government these additional prohibitions or controls should include only the control of atomic energy, the prohibition of the production of civil aircraft, and possibly the prohibition of certain electronic tubes. The maintenance of other prohibitions and limitations would interfere with the objective of maximizing the German production contribution to defense outside the field of prohibited items.

Needless to say, the German productive effort will have to be coordinated with that of the member countries of the North Atlantic Treaty Organization, and appropriate arrangements will have to be made for this purpose.

I am addressing a similar letter to Sir Donald Gainer.

Sincerely yours,

J. C. Holmes
  1. The source text was the fourth enclosure to the circular airgram referred to in footnote 1, p. 1395. Copies of this letter were handed to Massigli and Gainer following the plenary meeting on March 16.