611.62A/3–3052: Telegram
No. 174
The United States High Commissioner
for Germany (Conant) to the Department of
State1
4410. Conference with Chancellor for one and one half hours this morning. He presented new memorandum which will follow in separate telegram.2
Chancellor emphasized importance of real accomplishment his trip in connection with forthcoming elections as he felt the opposition party was not in a condition to take the responsibilities for government either internally or externally. Unless he can show some signs restoration German sovereignty he fears serious political consequences for future government. With this background laid emphasis on possible designation of US High Commissioner as carrying also title Ambassador and raising status German Mission to Embassy. Pointed out Austrian situation as precedent. Felt psychological importance of such changes could not be stressed too much. He attached importance to fact French HICOM also signs himself as Ambassador of France. HICOG’s position will be set forth in subsequent message.3
[Page 420]Chancellor attaches great importance to putting into effect immediate machinery for clemency war criminals, whether in the form of a mixed commission, provided for under the treaties, or a special bilateral commission of similar nature which he feels we have power to do unilaterally. HICOG’s position on war criminals will be sent shortly.
I took advantage of reference in memorandum to defense contribution to raise, at Draper’s request, timing of further discussions in Paris on Ministerial level.4 Chancellor was worried that if these took place too soon before Bundesrat vote, “extremely high” figure mentioned in Paris of a billion and a quarter DM’s per month would seriously affect chances of ratification because of danger that this would become known in debate. On other hand he recognizes that prolonged delay will prejudice possibilities of agreement prior to NATO meeting. It was agreed, however, that Schaeffer would go to Paris on April 17 with other Ministers and discuss this matter in hope of reaching a solution in time, but that no agreement would be finalized until after Bundesrat ratification. Figure Chancellor used I am told is too high, but any discussions in Washington about low figure which Schaeffer offered will be countered with protest at high figure which is too high, but any discussions in Washington about low figure which Chancellor claims was asked of Germany in Paris. Chancellor will argue any such figure as 1.25 billion DM per month is utterly impossible for Germany to bear. My personal opinion is that any detailed discussion of this Washington would not be fruitful.
On refugee problem, Chancellor pointed out that Berlin refugees were only part of a much larger problem. We agreed. He will push for a loan for housing and give details. Our view here supports his general position and I should like to be able to argue at high level for this recognizing it is a departure from past practice and may involve new orientation US policy.
As regards cultural agreement, Chancellor has no objection to its taking form of executive agreement. Says German position anyway is that no Parliamentary ratification required.
Chancellor promised rapid action on tax relief for off-shore procurement. Maltzan will give Harris further details re German requests with respect to patents and trade-marks, as well as reciprocal trade agreements and simplification of customs procedure.
Although Saar not mentioned in new German memorandum, Chancellor recognizes that this problem must be discussed while he is in US. He categorically refuses to recognize Saar solution as condition [Page 421] precedent to treaty ratification. He repeated his previous argument that he and Schuman had reached agreement on main lines of political as well as economic settlement, and his complaint that Bidault has not carried thru on this basis. He expects, however, to meet with Mayer to discuss the Saar problem as soon as it can be arranged without appearing to appear to by-pass Bidault. He believes meeting on May 12 in Paris will give this opportunity. He reiterates willingness to resume discussions at any time and states anxiety to come to earliest solution, pointing out that Saar population will probably itself decide not to join either France or Germany.