862t.01/17: Telegram

The Secretary of State to the Ambassador in France ( Wallace )

666. Your 848, March 29.

In telegram 613, March 26, Department stated that it approved despatch of German troops into neutral zone if such “additional troops appear to be necessary to restore orderly conditions.” This pre-supposed their withdrawal when this purpose was accomplished. It remains opinion of Department that advance of Allied troops into unoccupied Germany could only have unfortunate consequences in further irritating Germans perhaps even to extent of bringing about common action between communist forces in Ruhr region and German government troops. In such eventuality the situation would indeed be critical. It now appears from Dresel’s account of his conversation with Haniel, reported also to you, that German counter proposal that if German troops remain in Ruhr district more than four weeks French should have right to occupy Frankfort region is sufficient guarantee of German withdrawal and this arrangement Department would approve. It is believed that disorder can be quelled in less than four weeks but if at expiration of that time Allied officers with German troops report presence of these troops still needed, Department would be glad to consider again its position as to further Allied advance in unoccupied Germany.

As to return with arms of Reichswehr troops now interned in British zone, Department perceives no reason for reversing its former opinion. If German government troops are to be permitted to restore order it would appear unfortunate to reduce the number of effectives to be used in the neutral zone because of a technicality, but if these troops are returned with arms German Government should be informed that this is permitted because of critical situation and cannot be considered as constituting a precedent.

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Above to be used only if situation has not materially changed. Unofficial press reports today indicate possibility of such change.

Colby