Foreign Relations of the United States, 1947, Council of Foreign Ministers; Germany and Austria, Volume II

862.6362/11–2547

Agreed Paper by the Bipartite Board⁵⁹

restricted
BIB/P(47)80

[Berlin,] 16th July 1947.

Interim Agreement for Internal US/UK Use on German Coal Organization

1. It has been agreed between U.S. and U.K. Military Governments that governmental regulation of coal is to be separated from the operational management of the coal industry.

2. The normal governmental regulation of the coal industry would be a function of German government under the Economic Council, and in turn under the Executive Administration for Economics just as in the case of other industries. The governmental regulation of coal would be actually performed by a Department of the Executive Administration for Economics, with a civil servant appointed as head of the department. These matters pertaining to governmental regulation, such as safety regulations, mine labor ordinances, provisions for governmental subsidies, and governmental allocations of coal would be handled by the Department. Proposed legislation in this field would be prepared and recommended by the Executive Administration for Economics to the Executive Committee for enactment by the Economic Council. Requests for needed subsidies would be made by the Economics Administration to the Finance Administration and the Executive Committee. Coal allocations, subject to export and other allocations directed by Military Government, will be the responsibility of the Executive Administration for Economics, in accordance with the coal allocation policy. Governmental regulation of the coal industry would not, however, include the control of production or the supervision of the normal management functions of the industry.

3. The management of the coal industry would include production, distribution and all other functions of management in the German coal industry. Management will be exercised by a German General Director and a Board of Directors. A General Director will be appointed immediately by the Bipartite Board but the Board of Directors will be named only when the ownership status has been resolved as governmental, private or a five year trusteeship. In the meantime, the General Director would report to a US/UK control group in Essen, acting through the Control Office in Frankfurt for the Bipartite Board.

The General Director would name eight Directors of Departments subject to US/UK approval and each supervising one of the following functions:

a. Production

b. Safety, Engineering and Planning

c. Distribution and Sales

d. Mining Supplies and Procurement

e. Mine Housing, Incentives and Welfare

f. Labor Relations

g. Finance, Accounting and Statistics

h. Public Relations

59. This paper was agreed upon by the Bipartite Board at its Fourteenth (Extraordinary) Meeting on July 16, 1947. The source text was transmitted to the Department as enclosure 2 to despatch 11370, November 25, 1947, from Berlin, not printed.