Foreign Relations of the United States, 1951, European Security and the German Question, Volume III, Part 2

462A.62B31/7–2651: Telegram

The Secretary of State to the Office of the United States High Commissioner for Germany, at Frankfurt¹

secret   priority

Washington, July 31, 1951—7 p. m.

807. You will have noted from Deptel 701 of July 30 to Paris, rptd Fkft as 768², that we attach great importance to HICOM’s taking steps at Aug 2 meeting to put additional countermeasures into effect unless Soviets or East Germans have retreated from previous position before that time.

With receipt of Fkft’s 797 of July 26³ it has become clear to us for first time that iron and steel goods, hops, and mineral oils are only items prohibited for interzonal trade. We note that items of importance to SovZone such as machinery, chemicals, and rubber products can still move. This info has strengthened our belief that complete termination interzonal trade would penalize Soviets considerably more than at present and offers best possibility of ending present impasse. Soviets have had ample forewarning this possibility and further warning considered undesirable. Seems very probable that measures short of complete or virtually complete termination interzonal trade would not arrest continuing deterioration situation. Also believe that decisive action necessary now since with passage of time it is probably becoming increasingly difficult for Soviets to retreat.

Although not familiar with details of countermeasures proposed by econ comite (urtel 602, July 20⁴) we urge that HICOM instruct FedRep prohibit further extension validity any Warenbegleitscheine for either Vorgriff A or Vorgriff B account. We assume this would result in complete cessation movement of goods in interzonal trade. However, if measures already agreed by econ comite, while not resulting in complete cessation trade, wld effectively halt all important essential and strategic goods, and if these measures are maximum Fr will accept at Aug 2 mtg, we wld consider HICOM agreement on these measures satisfactory.⁵

Acheson

1. This telegram, drafted by Wyman and Rogers and cleared with Byroade, was repeated to Bonn, Berlin, Paris, and London.
2. Not printed.
3. Not printed; it reported that interzonal deliveries from the Federal Republic had been restricted to soft account goods (Vorgriff B) and that no deliveries under hard accounts (Vorgriff A, machinery, chemicals and rubber goods) had been permitted (462A.62B31/7–2651).
4. Not printed; it reported that the French were still hesitant to apply further countermeasures in the event that the offer to sign the interzonal trade agreement failed to break the deadlock over Warenbegleitscheine, and it indicated that the nature of the further countermeasures had already been agreed by the Economic Committee of the High Commission. (462A.62B31/7–2051)
5. At their meeting on August 2, the Allied High Commissioners agreed to intensify the commercial airlift to Berlin, decided to put forward another draft letter to be exchanged between the German delegations on August 20, and agreed that the accounts under the trade agreement which had been previously extended as temporary measures to August 2 should not be extended further. (Telegram 83 from Bonn, August 2, 398.10-GDC/8–251)