The United States Political Adviser for Germany ( Murphy ) to the Secretary of State
[Received October 11—8:20 p.m.]
753. There is given below the text of a preliminary draft of the United States proposal regarding establishment of Allied Export-Import Authority for Germany. These tentative proposals were drawn up in the office of Fred Winant and after having been informally shown to Economics, Political and Finance Divisions are being turned over to the Russian representative. If the Department wishes to cable comments or criticisms of the proposals, there will be sufficient time as the matter will have to be submitted to the Economic Directorate even if it should obtain immediate clearance by the Export-Import Sub-Committee.
Paragraph 3 d refers to funds which have been derived under the existing agreement (see our telegram 487, September 10, 9 p.m. and 593, September 23, 3 p.m.). This paragraph is not designed to allow zonal commanders to determine trade patterns nor to avoid quadripartite agreement on imports.[Page 1532]
“1. Establishment of Allied Export-Import Authority for Germany.
There is hereby established an Allied Export-Import Authority for Germany which shall be an agency of the Allied Control Authority. The Allied Export-Import Authority for Germany will consist of a board of directors and an executive officer. The board of directors will be composed of the members of the Export-Import Sub-Committee or persons designated by such members; the executive officer will be chosen by and operate under the direction of the board of directors; assistant executive officers will be appointed by the zone commanders in each zone. The salary of the executive officer and the assistant executive officers will be fixed by the board of directors and will be paid out of the proceeds of German exports.
2. Functions of Allied Export-Import Authority for Germany.
The functions of the Allied Export-Import Authority for Germany are:
- To authorize and if necessary to arrange for the sale of exports, including the collection, storage, transportation and delivery of goods, and the receipt of payment therefor.
- To authorize and if necessary to arrange for the purchase of approved imports, including the transportation and delivery of goods, and payment therefor.
- In consultation with other interested agencies of the Allied Control Authority, to formulate from time to time and to submit export-import programs for approval by the Control Council or its authorized agency. The first tentative program is set forth in paragraph 4 and 5 below, covering the period from 1 November 1945 to 30 June 1946. The preliminary data on which this program is based will be reviewed in the light of the latest available information, and a revised program submitted by 15 December, 1945, to cover the period from 1 January 1946 to 30 June 1946. Thereafter programs will be reviewed quarterly and submitted semi-annually or more frequently as directed by the Control Council.
- To collect and analyze data necessary for the preparation of export-import programs; to maintain records of import and export transactions; to prepare and submit such reports as may from time to time be required by the Allied Control Authority.
- To exercise such other functions as may be delegated to it in order to insure the proper financing and implementation of approved export-import programs.
- To organize its operations and employ such personnel in addition to the executive officer as may be necessary to the discharge of the foregoing functions.
3. Statement of policy.
It is agreed:
- That in order to provide funds for approved imports, payment will be made at the rate of not less than 80 percent of the established price of all exports from current production and stock, beginning 1 August 1945.
- That such payment will be made to approved banks for the account of the Allied Export-Import Authority for Germany in [Page 1533] United States dollars or any other currency acceptable to the Control Council or its authorized agency, at prices fixed on the basis of policies established by the Control Council or its authorized agency.
- That any funds credited to the special account of the Control Council set up in paragraph 4, CONL/P(45)32, approved by the Control Council on 20 September 1945,88 will be transferred to the account of the Allied Export-Import Authority for Germany. Payments made from this special account and obligations incurred by the special account will be taken into consideration in such transfer.
- That the funds derived from such payments and transfers will be used by the Allied Export-Import Authority for Germany to discharge obligations arising out of import programs which have been approved by the Control Council or the zonal commanders, as authorized in paragraph 4, CONL/P(45) 32, approved by the Control Council, 20 September 1945.
- That on matters pertaining to financing the Allied Export-Import Authority for Germany will operate under policies established by the Finance Directorate.
- That as soon as practicable a central German administrative department will be set up in the field of foreign trade. At that time the functions of the Allied Export-Import Authority, set forth in paragraph 2 above, will be transferred to the extent deemed advisable, to the German department and thereafter the Allied Export-Import Authority will control and supervise the operations of such department.”