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6. I therefore ask my colleagues to approve the recommendations that:
(i) we should agree to the disappearance of the International Authority for the Ruhr, of those functions of the Allied Coal and Steel Groups which do not concern the reorganisation of the German coal and steel industries, and of the existing controls on German crude steel production and capacity, to take effect as soon as practicable after the Schuman Treaty becomes operative.
(ii) We should enter into discussions at the earliest convenient moment with other interested Powers about the modalities of the abolition of these Allied controls.
418
ة
Foreign Office, S.W. 1.
28th May, 1951.
H. M.
ANNEX A
SCHUMAN PLAN AND ALLIED CONTROLS IN GERMANY
Record of a Discussion on 21st May between British, French and American
Officials
A brief record of the clarifications obtained from the French at yesterday's conference on various points of the Schuman Treaty is given below. The questions put to the French were based on Annex B of the paper of the Official Working Party on the Schuman Plan. (F.G. W.P. (51) 24.) The principal French spokes- man was Hirsch, of Monnet's staff, supported by Leroy-Beaulieu, the French Economic Adviser in Germany.
(a) Controls by Military Security Board
In the French view, all controls over German steel capacity, including that of electric arc furnace capacity, should disappear after the ratification of the Schuman Plan. The controls enforced through the Military Security Board over the end uses of finished steel would, however, remain in force.
(b) Reorganisation under Allied High Commission Law No. 27
Hirsch confirmed the statement already made by Leroy-Beaulieu to the Allied High Commission in Germany to the effect that the Schuman Treaty was not intended to cover the process of deconcentration and reorganisation of the German coal, iron and steel industries. It would therefore remain a responsibility of the Allied High Commission, even after the ratification of the Schuman Treaty, to complete reorganisation under Law No. 27, including the protection of foreign interests and such measures as might be necessary to ensure against "re-nazification."
(c) Control of Investments by the Allied Coal and Steel Groups
It was agreed that, pending the completion of reorganisation under Law No. 27, the Allied Coal and Steel Groups (or any successor body) should exercise control over the investments of the existing coal and steel companies for the limited purposes of protecting foreign interests and carrying out the deconcentration programme. This control might continue for these limited purposes after the High Authority had begun to exercise its powers under Article 54 of the Treaty. At this stage German investment schemes would be submitted to the High Authority (for consideration from an economic point of view) through the Coal and Steel Groups as trustees for the shareholders.
(d) Position of Allied Countries under the Schuman Treaty
The French explained that, in their view, holding companies controlling iron and steel companies would be subject to the provisions of Article 66 (i) of the Treaty
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