Foreign Relations of the United States, 1950, Central and Eastern Europe; The Soviet Union, Volume IV

762A.00/4–1750: Telegram

The United States High Commissioner for Germany (McCloy) to the Secretary of State

secret
priority

Frankfort, April 17, 1950—4 p. m.

3174. Have considered carefully your 2352 (April 6) concerning specific items which might be discussed Foreign Ministers in order to facilitate moving ahead in western Germany. I appreciate limited time available and that specific issues should be discussed only if decision indispensable to progress. Have also taken into account approach and thoughts expressed in FM D A–4/2,¹ and certainly agree time has come when FM should give careful consideration to broad outlines of our future program.

With these thoughts in mind I have reviewed which problems at minimum should be settled promptly by governments and which it does not seem possible that HICOM can settle at its level, our aim being to achieve best atmosphere possible during critical months between now and forthcoming elections in Soviet zone. No need to recount to you areas we feel we are most vulnerable in the economic and political fields, since these covered during my recent visit home and at Rome meeting of Ambassadors. My comments on your numbered paragraphs follow:

1. Berlin:

I agree with your endorsement of Rome proposal for Ministers declaration of our determination to remain in Berlin. The wording of such a declaration is extremely important in order to avoid impression that question of withdrawal from Berlin was at any time under consideration. I will bring to London draft declaration to this effect. I believe also that attempt should be made to reach agreement on incorporation of Berlin into western Germany as twelfth land even though it may not be announced at end of conference. Such announcement might be inconsistent with whatever might be agreed and published concerning the larger program for unification of Germany or inclusion of Germany in western European organization. In this event twelfth land announcement might well be reserved to later more auspicious date. As to matter of free access to Berlin, recall that at Paris CFM this matter considered extremely technical and believe experience indicates this not subject for Foreign Ministers to discuss.

2. Communist Youth Rally:

Do not believe FM should make any specific reference to youth demonstration in Berlin at this time, but would prefer to reserve this until after May 1 pending possible later developments in situation. Similarly, do not feel that advance notification to UN, or value of neutral observers can be determined at this time. We believe that matter can be handled with present resources and are concerned lest appeal to international body be interpreted as show of weakness or lack of self-confidence.

3. Refugee Situation:

Beyond continued economic support of DP’s and expellees and new efforts to achieve better distribution among three zones, there seems little HICOM can do in alleviating this serious and burdensome problem. Believe three governments, however, could usefully establish study group which would put in hand survey of (1) world-wide emigration possibilities, (2) utilization of German technicians and skills in Point Four and other technical assistance programs for undeveloped areas, and (3) basis on which ECOSOC could push further solutions of this problem. Principles of foregoing might be approved and study group initiated by three Ministers.

4. International Organizations:

Since adoption of inter-governmental working party report on German participation in international organizations² do not feel that any circumstances have arisen which would call for change in recommendations contained therein. Germany’s entrance into international organizations has been as fast as could reasonably be expected subject to unusual circumstances such as CRC and IWO [ ILO?] However, feel there is still reluctance on part of French to give German Government full membership without Allied supervision. We are conscious of legal question which arises and are giving thought to question here. Feel that there will be no delay resulting from German inability to accept membership.

5. Federal Republic Economic Situation:

Agree Ministers should in general avoid detailed discussions, and that general line directed at minimizing controls on German economy is sound. However, in several respects security restrictions are producing situation rapidly approaching boiling point. Specifically restrictions on shipbuilding, resulting in unemployment at Bremen and Hamburg, and ceiling on steel, now rapidly becoming favorite retreat of Germans in attempting to explain failure of efforts to reduce unemployment, are matters beyond HICOM control. For this reason we have proposed general review of security measures including level of industry and PLI. Believe serious thought should be directed this subject on which more will follow in reply urtel 2450, April 11.³ Meantime, suggest possibility Bevin–Schuman interest this subject may be intended to undercut just such re-examination security controls as we propose, perhaps by argument that Germans are proceeding to liberalize unrealistically along lines dictated by American economic thinking and therefore that solution German economic problem lies chiefly in introduction proper governmental controls more in keeping with current and particularly European conditions. While we agree Federal Republic approach excessively “laissez faire” in terms ECA requirements, our approach is that progressively liberalized western European economy has little to fear and much to gain from strengthened more productive German economy as basis for firm establishment democratic government in western Germany.

6. Saar:

Tentatively suggest US should not raise Saar issue (subject results Bundestag debate and subsequent events). If French and British raise question would put emphasis on concern we feel at effects in Germany as result unanswered allegation that Saar regime cannot meet democratic standards allies are seeking to instill in western Germany, rather than on plebiscite as such. In this regard possibility of UN trusteeship should be studied.

In summary feel that Foreign Ministers should take up following specific items:

(1) Berlin declaration

(2) Refugee situation

(3) German economic situation

(a) Review of level of industry and PLI

(b) Shipbuilding for export

(c) Decartelization (Law 75 if not settled prior)

(4) Pattern of controls both in general terms and as subject maybe affected by its relationship to FM D A–4/2 and to (3) above.

Two additional items are possible for CFM agenda. First is relation of IAR to HICOM. Proposal for transfer of functions of HICOM to IAR as contained in French aide-mémoire⁴ we understand will be discussed by preparatory group. Second subject is revision of occupation statute. Again feel that preliminary work must be done on lower level preferably by explorations in HICOM. Also since this subject linked to larger program presented in FM D A–4/2 and work thereon would be conditioned by any progress made along approach mentioned therein. However, I am prepared to have preparatory group discuss both these subjects in preliminary May 1–8 talks in London.

Reurtel 2473, April 11, our 2949 April 7⁵ is primarily list of papers. Other points raised answered by foregoing and reply your 2450 now being prepared. While aware necessity limiting specific German issues, strongly believe Ministers meeting at this juncture must advance solutions basic European problems on agenda as primary means of addressing most urgently required over-all decisions respecting Germany. Lack of substantial solution would be interpreted as failure on both sides of curtain.

McCloy

1. Not printed, but see footnote 1, p. 682.
2. Not printed.
3. Not printed; it asked McCloy for an elaboration of his thoughts on any new and realistic consideration which the Foreign Ministers might give to the German security question. (762A.00/4–1150)
4. The French aide-mémoire under reference here has not been identified further.
5. Neither printed; they discussed the lists of papers to be prepared for the Foreign Ministers meeting and subjects that should be discussed in London or in Frankfort by the High Commissioners. (762.00/4–750)