No. 65

862A.3314/7–951: Telegram

The Secretary of State to the Embassy in the United Kingdom 1
confidential

159. Thorp, Lewis and Buttenwieser emphasized to Erhard and Krekeler Fri importance US attaches satisfactory solution scrap problem. Although indicating willingness to endeavor increase scrap collections, Erhard reiterated Ger view that Ger domestic requirements must first be met before export requirements considered. Thorp flatly rejected this concept, pointing out that if US adopted such view re certain raw materials, for example, sulphur, there wld be little for Eur countries. Thorp also pointed out unfortunate [Page 129] repercussions if impression developed that Gers did not intend abide by commitments.

Erhard emphasized he cld not make any commitment on specific figures or percentages without Cabinet approval, that earlier arrangement based on unduly optimistic view of scrap collections shld be renegotiated.

After mtg Gers took pains to explain to Lewis that Erhard had not meant to say all Ger domestic requirements must be met before there cld be export. Were vague as to exactly what Erhard had meant but implied willingness discuss percentage allocation betw retention and export provided Ger cld be assured “reasonable” amount. Emphasized Ger efforts increase scrap collections.

Assume HICOG will resume scrap discussion upon Erhard’s return.2

Acheson
  1. Drafted by Camp and Geoffery W. Lewis of GER. Repeated to Frankfurt.
  2. In telegram 251 from London, July 12, Gifford reported that a “FonOff rep” had told a member of the Embassy staff that in view of Erhard’s “evasive attitude” in scrap discussions at Washington. British representatives in Bonn would press him upon his return for acceptance of the U.S.–U.K. scrap proposal made on June 26 or for a new German proposal. Gifford added that the Foreign Office saw no purpose in resuming the meeting of the Paris conference on the abolition of the Ruhr Authority until a satisfactory settlement was achieved on the German scrap issue. (862A.3314/7–1251) On July 19, the Department informed the Embassy in the United Kingdom in telegram 456 that it had once again raised with Erhard and his colleagues before their departure for Germany the importance which the United States attached to a satisfactory resolution of the scrap problem, reiterating the arguments summarized in telegram 159. (862A.3314/7–1951) In telegram 93 from the Liaison and Political Reports Division in Bonn to the Office of the U.S. High Commissioner for Germany, at Frankfurt, July 23, McCloy reported press statements that at a meeting with scrap metal industry representatives at Dusseldorf on July 19, Erhard ‘launched strong plea for necessity of increasing collection of scrap metal in Federal Republic”. (Bonn Mission files, McCloy Project, lot 311, D(51)1028)