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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 388

Eastern European exports of essential commodities to West. U.S.
does not require abrogation bilateral agreements with Eastern Euro-
pean countries. Foregoing views obtain so long as Eastern Europe not
clearly engaged in economic warfare against Western Europe.
  On relation of Germany to program, Dept considers that three
western zones, as unit or bizonal area plus French zone, be covered fully
into program. Revised level of industry agreement should be basis
for inclusion of bizonal area, with changes required in interest of
European-wide recovery recommended by conference on same basis
that conference makes similar recommendations for changes in Monnet
or other national plans. Rates of and priorities in reactivation of
German industry should likewise be discussed by conference as part of
similar discussion of achievement of other national plans. U.S. desires
earliest possible self-supporting German economy, but recognizes that
German recovery does not have priority over similar recovery else-
where in Europe, and that recovery in Germany should not receive
special impetus at expense of wider European recovery. On other
hand, Dept will not agree to system of allocations of German resources
or U.S. aid which would postpone German recovery until full re-
covery other countries has been assured.
                        F. ROLE OF U.N.
  Dept supports fullest practicable use of United Nations bodies and
specialized agencies in carrying out of program. This includes COnl-
tinued international allocation of coal through ECE Coal Committee
and food through IEFC Committees, and technical planning work in
ECE Committees on transport and power. Sympathetic to assignment
to ECE of additional functions related to program. But Dept recog-
nizes that coordination of European program and integration of UN
activities with needs of this special program will probably have to be
retained in organization composed only of participants (including
bizonal Germany). In view possibilities systematic obstruction to ECE
effectiveness, special European recovery organization must be able to
handle entire program and must be prepared to assume promptly func-
tions assigned to other organizations if they prove ineffective.
  Dept recognizes that present Conference cannot possibly make com-
plete blueprint for European recovery over next several years. Initial
program must conform to all above elements, but many details of its
application will remain for further study. Modifications are also to be
expected during negotiations with the U.S. before acceptance and in

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