Office of the Historian

740.00119 Control (Germany)/11–2948: Telegram

The Secretary of State to the Embassy in the United Kingdom

secret
Washington, November 29, 1948—7 p. m.

4460. ToRuhr 15. Agreement now reached with Army and ECA that annex to Agreement on IAR–OEEC relationship would be too formal and rigid a method of dealing with procedural problem. Instead following, which would allow for future adjustment as may be [Page 536] necessitated by changes OEEC programming procedures or other developments proposed for your consideration:

“With respect to Article VI, Paragraph 1–C,1 the following understanding has been reached on the procedure which will be followed to ensure that the Authority’s determinations with respect to the export of coal, coke and steel from the Ruhr are consistent with the programs of the OEEC. It is understood that this procedure will be subject to such changes as experience indicates may be necessary.

1.
When economic programs for submission to the OEEC are being prepared by the responsible authorities in Western Germany, proposals included in such programs with respect to the export of Ruhr coal, coke and steel and the amounts to be retained in Germany shall be submitted to the Authority. The Authority shall review such proposals and make tentative findings with respect to the export of Ruhr coal, coke and steel for the period covered by the program.
2.
During the Control Period the Authority’s finding shall be incorporated by the responsible authorities in Western Germany in the overall program submitted to the OEEC to the extent that such findings are consistent with the terms of any existing agreement among the Occupying Powers governing the export of coal or coke from Germany and with any agreements relative to the provision of financial assistance to Germany which are now or may come in effect between any two or more of the Occupying Powers. The determination of whether the findings of the Authority are consistent with such agreements will be made by the Occupation Authorities in Germany who will, therefore, have final authority with respect to the Western. German program submitted to the OEEC.
3.
As the review of the program proceeds in the OEEC the representatives of Western Germany may consider and agree to such changes in the coal, coke and steel sections of the program as appear justified. The program as finally adopted by the OEEC shall be transmitted to the Authority by the Western German authorities. The Authority shall take such action as may be necessary to ensure that its findings are consistent with such programs.”

Request (a) your comments on foregoing; (b) your comments on type of understanding, if any, e.g. agreed minute.

Identical telegram being sent by Army to Clay.2

Please pass to Hannaman.

Marshall
  1. The reference here is to the U.S. draft agreement on international authority for the Ruhr, document RC/3, November 12, p. 484.↩

  2. The message was sent to General Clay as WX 80332, November 29. In his message FMPC 1093, November 30, to the Under Secretary of the Army, General Clay replied as follows:

    “Reurad WX 80332. I have no further comment as I have already expressed my views that the procedure is cumbersome and will always place US representative exercising US dominant voice in conflict with Ruhr authority. Appeals to govt and friction are inevitable. It is a lessening of our position.

    “It is interesting to note that this proposal which does make the task of US representative in Germany more difficult was first suggested by US members of delegation and was only then picked up by British and French.

    “I think State Dept will find that when its representative takes over in Germany, his task will be made more difficult.” (CFM Files, Lot M–88, Box 130, File—Incoming telegrams Ruhr Conf)

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