840.50 Recovery/3–348: Telegram

The Secretary of State to the United States Political Adviser for Germany (Murphy)

secret
us urgent

403. For Ambassador Murphy from Lovett. London’s 853 Mar 31 reports agreement that plenary CEEC meeting Mar 15 will invite Bizone and French Zone to participate in subsequent preparatory working group. Dept believes Bizone should accept and be prepared to attend.

Purpose preparatory working group is to draft terms of reference of continuing organization and draft multilateral agreement. Bizone representation on this working party should represent and speak for Bizone as a whole and include necessary advisers from both elements who are competent in relevant fields such as trade (JEIA), finance, manpower, etc. Agreement on representation including advisers should be reached between US and UK military governors. Purpose and scope of ERP and CEEC are far beyond trade relationships. Economic cooperation sought under ERP, and of which CEEC is vehicle, has as ultimate objective closer integration of Western Europe. In this way it is a correlative of and parallel to the political and security arrangements sought under Bevin’s proposals for Western Union.2 Full cooperation of the Brit is necessary if larger objectives are to be achieved. While Bizonal representation would be advised by such special groups as JEIA on matters within their jurisdiction, US position and predominance in ERP matters seems fully protected by fact that ERP funds are within sole control US. Responsibility for furthering long-range objective of integrating Western Zones into Western Europe should be fully shared by Brit whose political position and influence in Europe essential. Hence seems undesirable to stress US dominance in financing Germany to extent which would diminish Brit responsibility and help in attaining ultimate objectives.

Dept sent Ambassador Douglas for comment its tentative views on the structure and functions continuing CEEC organization (695 Feb 29). Douglas commented in London’s 855 March 3.1 Revised Dept [Page 390] views will be sent USPolad promptly.3 Depcirtel (1:00 a. m. Feb 29) which was sent Berlin in Sect II, Para 3, states Depts general views re multilateral agreements.

Above documents provide guidance on US views on principal matters to be considered by working group. Any further views will be sent Berlin. Dept sending to Paris reps fully briefed on US purposes ERP, organization and multilateral pledges. Bizonal rep at Paris working group should consult with Dept reps. Sent Berlin; rptd London for info.

Army concurs this msg and is sending instructions to Clay.4 [Lovett.]

Marshall
  1. Not printed.
  2. For documentation regarding the United States interest in Western European Union and the formation of the North Atlantic Treaty Organization, see pp. 1 ff.
  3. Not printed.
  4. These views were sent in a circular telegram on March 10, 1948, 7:00 a. m., not printed. This made no substantial modification of the United States position. (840.50 Recovery/3–1048)
  5. Gen. Lucius Clay, Commander in Chief, U.S. Forces in Europe, Military Governor, U.S. Zone in Germany.