Office of the Historian

The War Department to the United States Military Governor for Germany (Clay) at Berlin48

[Washington,] 26 July 1947.

War 82897. Personal for Clay from Royall and Personal for Murphy from Marshall, State and War Departments agree49 that US Government will support vigorously the level of industry agreement reached by you with Robertson and defend it against any suggestions from other nations for modification, unless amendment may be found necessary in case of genuine threat to the success of the European economic plan (Marshall Plan) or in the face of a threatened collapse of democracy in France.

State and War Departments agree that in any event full power of decision concerning matters arising out of bizonal fusion will rest entirely with the U.S.–U.K. Governments, and that on any such matters requiring mutual consent of U.S.–U.K. Governments, there will continue to be full coordination between State and War before the U.S. Government proposes or agrees to any modifications, amendments or decisions in such matters.

It is also agreed between State and War that in view of the recognized urgency of the situation in Germany, it is the desire of this Government that announcement of the new bizonal level of industry agreement should be made as soon as possible, consistent with overall [Page 1010] European developments. It is the expectation that it will be possible to make the announcement not later than September 1st.

The exact course to be followed as to the time and method of implementing the level of industry agreement is being discussed between War and State Departments as are various questions relating to the Ruhr coal matter. As soon as the two Secretaries reach an understanding on those or related matters you will be notified.

  1. The source text for this telegram is included in the files of the Office of European Affairs, Division of Western European Affairs, Lot 53 D 246, file “Germany–General”.↩
  2. Representatives of the Department of State and the War Department met on July 26 to discuss a proposed memorandum of understanding between the two Departments concerning the treatment of Germany, the level of industry plan, and Ruhr coal production. Various drafts of the proposed memorandum of agreement are included in the EUR/WE files, Lot 52 D 246, file “Germany–General”.↩