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(a) It would show that we take the Bundestag resolution
seriously and might therefore gain us some political support from the Germans;
(b) It would give the Social Democratic Party and the Trade Unions
a chance to bring pressure upon the Federal Government to adopt the view which we ourselves hold about the immediate sale of shares in the unit companies.
It must be recognised that the Americans and French may well oppose such reference on the grounds indicated in paragraph 5 above; but their objections might be met, as there suggested, by our intention to make a contractual arrangement with the Federal Government ensuring against the return of former owners to positions of power within the new unit companies.
11. If this suggestion is accepted, the United Kingdom High Commissioner would in the forthcoming discussion with his colleagues take the initiative in proposing the course outlined in the preceding paragraph; only if they did not accept this course, would he proceed to a vote on the main issue, whether the sale of shares of the 'unit companies" to private owners before a general decision by the Federal Government on ownership is contrary to the terms of the preamble to Law 27. At the same time he could find means of making it clear to the Germans that he has tried to safeguard the interests of the Bundestag in this case.
12. If the United Kingdom High Commissioner is outvoted on the inter- pretation of the preamble it is undoubtedly open to him to appeal to Governments under paragraph 7(b) of the Agreement on Tripartite Controls, which permits any High Commissioner to appeal when in his opinion a majority decision of the Council conflicts with an inter- governmental agreement relating to any of the subjects in paragraphs 2(a) and (b) of the Occupation State (which include "deconcentration"). The preamble to Law 27 certainly represents an intergovernmental agreement of this nature, and the American interpretation of it is contrary to the sense of that agreement as accepted by His Majesty's Government. But if the decision goes against us in the High Commission, there is little prospect of getting it reversed at governmental level. Nevertheless, the Anglo-American difference on this point in the High Commission is of such importance that it must if necessary be referred to Governments; and it is recommended that the United Kingdom High Commissioner be instructed to appeal to Governments if he is outvoted on the inter- pretation of the preamble to Law 27.
Foreign Office, S. W.1.,
March, 1951.
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G.R..
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