Dismantling: Consideration of the proposals of the Federal Chancellor.
Germany's accession to the International Ruhr Authority.
Germany's acceptance of the Military Security Board.
Decartelisation.
Internal German Problems.
Operation of the Occupation Statute.
(15) Germany's representation abroad.
(c)
Termination of state of war with Germany.
4.
(a) Attitude to the so-called German Democratic
Republic.
In spite of certain difficulties, to which I will refer later, my discussions with M. Schuman and Mr. Acheson were very frank and friendly and I was very pleased to see how much of the ground which we covered was common to us all. In particular, we all recognised the need for a new programme to carry us forward until the time comes at the end of next year for the Occupation Statute to be reviewed, and it was also recognised that we ought all to be ready to make some concessions for the sake of reaching agreement on our joint policy.
5.
The actual decisions which resulted from our talks were embodied in a Directive to the three High Commissioners, which is annexed. This Directive is to be used by the High Commission as a general guide for the development of Allied policy in Germany, aiming eventually at the creation of a more normal situation in Germany and the establishment of more normal relations between Germany and other countries, subject always to the necessary measures for security. The Directive is also to be used by the High Commission as a basis for negotiation with the German Federal Chancellor with a view to establishing agreement with the Federal Government on the programme which is to be followed. I do not think it necessary to draw my colleagues' attention to the details of the Directive, apart from certain points mentioned below.
6.
By far the most important and difficult part of our discussions in Paris was connected with Section III of the Directive, which deals with the question of reparations and security, including the dismantling problem. This part of the Directive raised great problems for M. Schuman and the French Government, since any arrangement which would result in a high level of steel-producing capacity being left in Germany is likely to arouse much opposition in the French Chamber and among the French people. Moreover any modification of the existing reparations programme involving a departure from the agreements which had been reached earlier in the year in Washington might be expected to cause difficulties with the Governments represented on the Inter-Allied Reparations Agency. On the Pager672nd 1097 very serious difficPage67bf1097e had been encountering in the British Zone in the work of demolition, and the strong probability that the programme was likely to break down of its own accord for lack of German labour to carry
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