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United States Department of State / Foreign relations of the United States, 1947. The British Commonwealth; Europe

Europe,   pp. 196-654 PDF (168.7 MB)

Page 409

840.50 Recovery/9-547: Telegram
    The Secretary of State to the Embassy in the United Kingdom
SECRET                  WASHINGTON, September 5, 1947-11 a. m.
  3841. For Ambassador. War and State have agreed that economic
plans of bizonal area should be discussed with CEEC with view to
integrating bizonal area into a European recovery program.
  Before making any announcement to CEEC, agreement with British
obviously necessary. Pls take this matter up with Brit urgently to
obtain their approval of joint statement to be made to CEEC substan-
tially as follows:
  "Answers have already been furnished to CEEC questionnaires
covering the bizonal area of Germany administered by the US and UK.
In addition, the CEEC has received the revised level of industry plan
agreed between the US and UK for the bizonal area.' The US and UK
recognize that the CEEC, in developing a program for economic re-
covery, will discuss the various national plans and requirements of
participating countries with a view to achieving the maximum Euro-
pean self-help and the most efficient use of existing facilities. The
bizonal area in Germany potentially can make a substantial contribu-
tion to European recovery. Integration of the bizonal area into a
European recovery program carried out by all participating countries
will facilitate the contribution which the bizonal area can make while
at the same time further the self-support of that area, which is a neces-
sary part of European economic recovery.
  The US and UK are therefore prepared to discuss with the CEEC
the economic programs of the bizonal area to the same extent that
CEEC discusses the plans and requirements submitted by the par-
ticipating countries. The purpose of such discussions would be to
develop recommendations as to the use of facilities in 'the bizonal area,
the priorities in industrial reactivation and in the use and allocation
of scarce materials in the same manner as CEEC. is considering the
same subjects with respect to the participating countries, all with the
purpose of achieving an integrated recovery program covering both
the participating countries and the bizonal area. The bizo-nal area
cannot fulfill its potential of assistance to European recovery unless
the needs of its presently depressed economy are recognized. It is to be
understood that such discussions will be on a technical basis. Further-
more, the US and UK must always take into account their special
responsibilities as occupying powers and the very large expense now
involved in maintaining the bizonal area. Within the above principles,
the US and UK are prepared to give careful consideration to recom-
mendations made by CEEC with respect to integrating the bizonal
area into a broader recovery program. The US further wishes to em-
phasize that its participation in such discussions is not to be construed
as US Govt approval of any program that may be developed nor as
1 See footnote 3, p. 332.

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