IrJHS D O C U M E N T - I S
T H E - P R O P E R T Y - O F - H I S B R I T A N N I C MA-^ E S T Y ^ S G O V - E R N M E N T - )
S E C R E T
C.P.C51) 164
15TH JUNE,
COPY NO. O
/
1951 CABINET
SCHUMAN TREATY: ALLIED CONTROL OF
HEAVY INDUSTRY
GERMAN
M e m o r a n d u m b y the S e c r e t a r y of State for F o r e i g n
Affairs
In C . P . ( 5 1 ) 1 4 7 I p u t b e f o r e m y c o l l e a g u e s t h e p r o b l e m o f t h e
future of e x i s t i n g A l l i e d c o n t r o l s o v e r G e r m a n h e a v y i n d u s t r y in the light
of t h e S c h u m a n T r e a t y .
It w i l l b e r e c a l l e d t h a t t h e F r e n c h a r e a n x i o u s
to i s s u e a public s t a t e m e n t that, a s the S c h u m a n T r e a t y c o m e s into effect,
e x i s t i n g A l l i e d c o n t r o l s s h o u l d be a b o l i s h e d ; the p r i n c i p a l o b j e c t of s u c h a
s t a t e m e n t would be to facilitate the ratification of the S c h u m a n T r e a t y in the
German Federal Parliament.
M y c o l l e a g u e s i n v i t e d m e o n 5th June
( C . M . ( 5 1 ) 40th C o n c l u s i o n s , Minute 2) to d i s c u s s with the M i n i s t e r of S u p p l y
"whether a further a t t e m p t could not be m a d e to a s s u r e o u r s e l v e s of
adequate supplies of s e m i - f i n i s h e d s t e e l f r o m G e r m a n y before w e a g r e e d
in p r i n c i p l e that the existing A l l i e d c o n t r o l s o v e r the G e r m a n c o a l and
s t e e l i n d u s t r i e s should be abandoned a s s o o n a s the S c h u m a n T r e a t y c a m e
into effective operation".
2,
T h e M i n i s t e r of Supply and m y s e l f h a v e in c o n s e q u e n c e r e c o n s i d e r e d
the p r o b l e m of the future of e x i s t i n g A l l i e d c o n t r o l s .
We a g r e e that it i s
i m p o r t a n t at the p r e s e n t j u n c t u r e to t a k e e v e r y o p p o r t u n i t y of e n s u r i n g
e s s e n t i a l r a w m a t e r i a l supplies f r o m G e r m a n y for B r i t i s h d e f e n c e i n d u s ­
t r i e s . It i s p r o v i n g i n c r e a s i n g l y d i f f i c u l t t o g e t a d e q u a t e s u p p l i e s o f s c r a p
or of semi-finished steel products f r o m the G e r m a n s , either under current
trade negotiations or under the general guarantee given by the F e d e r a l
Chancellor to the High C o m m i s s i o n e r s in M a r c h , 1 9 5 1 , to the effect that
"the F e d e r a l G o v e r n m e n t w i l l c o - o p e r a t e in the equitable a p p o r t i o n m e n t of
m a t e r i a l s , products and s e r v i c e s which a r e or m a y be in short supply or
r e q u i r e d for the c o m m o n defence".
3.
A t the s a m e t i m e I r e g a r d it a s i m p o r t a n t to d e t e r m i n e a s s o o n a s
p o s s i b l e w h a t l i n e w e s h a l l take a b o u t t h e f u t u r e of e x i s t i n g A l l i e d c o n t r o l s ,
since the F r e n c h and United States G o v e r n m e n t s have for s o m e time now
b e e n p r e s s i n g u s to send a representative to a further conference on the
subject, and a r e p a r t i c u l a r l y anxious to o p e n d i s c u s s i o n s e a r l y in the w e e k
beginning 17th June.
4.
I r e c o m m e n d to m y c o l l e a g u e s that the F o r e i g n Office should send
a r e p r e s e n t a t i v e to d i s c u s s i o n s at P a r i s a s p r o p o s e d b y the F r e n c h , and that
he s h o u l d be e m p o w e r e d to a g r e e (or to r e c o m m e n d to G o v e r n m e n t s ) that
existing controls o v e r G e r m a n heavy industry should be abolished (as
r e c o m m e n d e d in C.P.(5l) 147), when the appropriate m a c h i n e r y under the
S c h u m a n Treaty c o m e s into operation, subject h o w e v e r to the important
c o n d i t i o n that the n e e d s of the B r i t i s h d e f e n c e i n d u s t r y for G e r m a n r a w
m a t e r i a l s (i, e. s c r a p and s e m i - f i n i s h e d s t e e l p r o d u c t s ) a r e f r o m n o w
onwards adequately met.
5.
This condition can be fulfilled in two
( i )
( i i )
ways:­
The G o v e r n m e n t s concerned can i s s u e a joint declaration that
existing controls over German heavy industry will be abolished
at the appropriate t i m e , subject to adequate fulfilment by the
G e r m a n s of the g u a r a n t e e on " e q u i t a b l e a p p o r t i o n m e n t " g i v e n
by the F e d e r a l Chancellor in M a r c h , 1951 (see p a r a g r a p h 2
above).
We c a n join with the other G o v e r n m e n t s c o n c e r n e d in i s s u i n g a
joint d e c l a r a t i o n of p r i n c i p l e a b o u t the a b o l i t i o n of e x i s t i n g
Allied controls, and simultaneously m a k e a unilateral d e c l a r a ­
tion both to the other Occupying P o w e r s and to the G e r m a n s that
we will, after ratification of the S c h u m a n T r e a t y , only c o n f i r m
our a g r e e m e n t to the abolition of c o n t r o l s if our d e f e n c e n e e d s
a r e being a d e q u a t e l y m e t u n d e r the "equitable a p p o r t i o n m e n t
guarantee".
A j o i n t d e c l a r a t i o n b y a l l G o v e r n m e n t s c o n c e r n e d , a s e n v i s a g e d i n (i) a b o v e ,
w o u l d p r o b a b l y c a r r y m o r e w e i g h t w i t h t h e G e r m a n s , but c o u l d h a r d l y b e
phrased s o a s to c o v e r our defence n e e d s alone and would therefore have
m o r e general application.
A u n i l a t e r a l d e c l a r a t i o n , a s e n v i s a g e d in (ii)
above, m i g h t be l e s s binding but would have m o r e specific application to
our vital n e e d s .
6.
I i n v i t e m y c o l l e a g u e s to e n d o r s e the r e c o m m e n d a t i o n of p a r a g r a p h
4 a b o v e and to e x p r e s s t h e i r opinion on w h i c h of the two m e t h o d s s u g g e s t e d
in the p r e c e d i n g p a r a g r a p h w o u l d be m o r e s u i t a b l e for the a t t a i n m e n t of
our objective.
H.M.
Foreign Office,
15TH JUNE,
S.W.1,
1951.