850.33/6–2151: Telegram
The Chargé in the United Kingdom ( Holmes) to the Secretary of State 1
6725. Stevens called Emb Offs to FonOff this afternoon re Brit attitude Schuman Plan discussions reported Embtel 6707 June 21.2 He said Dept’s views had been considered at inter-departmental official level mtg this morning and as result interested deps wld be prepared to recommend to cabinet that Brit modify position outlined Paris 7886 June 193 rptd London 2104. Before doing so however FonOff wld appreciate Dept’s views on modified proposal contained [Page 124] in fol paper and wld like to receive them as far in advance as possible of cabinet mtg scheduled for June 28.
- “1. Fed Govt shall be informed by HICOM in confidence
that, prior to conclusion of agreement between 3
occupation govts that Ruhr Auth, restrictions on Ger
crude steel production and capacity, and functions
of Allied coal and steel groups which do not relate
to deconcentration under Law 27 shall be abolished
as soon as Schuman Treaty is ratified by
respective parliaments and as necessary machinery
under that treaty is set up, it will be necessary
for them to provide an assurance re equitable
apportionment of raw materials required for West def
in, inter alia, fol terms:
- “(a) Fed Govt undertakes to license for export to UK 50 percent, and to US 25 percent of its total exports of steel scrap for period from 1 Aug ’51 to 31 Dec ’52 and further that quantities so licensed shall be not less than 40,000 tons per month to UK, and 20,000 tons per month to US for period from 1 Aug ’51 to 31 Dec ’51. These figures shall be regarded as including fulfillment of balance of prospective backlogs outstanding as of 31 July ’51, provided that these backlogs as of that date do not exceed in case of UK 62,000 tons and in case of US blank tons.
- “(b) Fed Govt undertakes to license for export to UK 30 percent of its total exports of semi-finished steel for period from 1 Aug 51 to 31 Dec 52, provided that supplies of semi-finished steel currently being furnished to US under special arrangements shall not count as exports for this purpose
- “2. US Govt, HMG (and Fr Govt) undertake to render each other all possible assistance in ensuring fulfilment by Fed Govt of assurances indicated in (1) above”
Dept will note that principal changes in original Brit position are:
- (a)
- Altho scrap and semi-finished steel question still linked to removal of controls Brit no longer insist that Gers give evidence of better performence in scrap deliveries prior to agreement on removing controls. In other words approval wld be given to lifting controls in return for assurances from Ger with respect to deliveries of type normally given in trade agreements and similar to those given in past.
- (b)
- Brit no longer insist on public announcement either tripartite or unilateral of Ger agreement to scrap deliveries.
In explanation of Brit position Stevens stressed importance such deliveries to UK def effort and failure of Gers to live up to past commitments in respect to these materials. He also observed that unlike US UK has few means of pressure to bring to bear on Gers and therefore feels it must make full use of such bargaining points as it has available.
In response to our request for further details on failure of Gers to carry out previous commitments with respect to scrap Stevens [Page 125] pointed out that gentleman’s agreement of last winter provided for delivery of 500,000 tons from Nov 1, 1950 to June 30, 1951 and 100,000 tons per month for remainder of ’51. Gers had cut down 500,000 ton commitment to 410,000 and had made it plain that nothing even approaching 100,000 tons per month cld be expected for remainder this year. UK–Ger trade agreement of last summer provided for 500,000 tons in ’50 and 200,000 in first half of ’51. Using this lower figure as target actual deliveries thru June 30, ’51 assuming receipt of 30,000 tons in June wld fall short by 92,000 tons. Gers have refused to make any current commitments with respect to deliveries in last half of ’51 and have mentioned figures as low as 10,000 tons per month. Stevens indicated HICOG has been kept fully informed re Ger performance.