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HOUSE OF COMMONS
Foreign Affairs
[MR. BEVIN.] details of the Anglo-American proposals were communicated to the French Mili- tary Governor and also to the representa- tives of the Benelux countries at the end of August. There were discussions on the subject between the Military Gov-
ernors.
On 14th October the French Ambassa- dor in London left a note at the Foreign Office taking exception to the proposed settlement. This was followed by a further note on 20th October in which the French Government expressly re- served their position. After very careful consideration and consultation with the United States Government, His Majesty's Government replied on 4th November that they did not feel able to make any change in this policy, upon which they and the United States had decided. The law was accordingly promulgated on 10th November. There was no attempt, therefore, on our part to ignore the French, and I want to make that quite clear.
With regard to security I should like to make it clear that there is no difference between us. France has the right-so have we and all other neighbours of Germany-to be assured that the vast resources of the Ruhr shall not again be used for purposes of aggression. [HON. MEMBERS: Hear, hear."] What we have to do is to make sure of complete security in a way which will permit and encourage Germany, without loss of self- respect, to play a proper part in the economic reconstruction of Europe.
We are trying to meet France in this regard. As the House knows, we have invited the French Government and their representatives to join the coal and steel control groups, even though these matters are a purely Anglo-American responsi- bility.
If France had merged its zone with the two other zones and made it a trizone earlier, they would have been in on all this, but the financial responsi- bility of the whole business has rested on Britain and the United States. However, in spite of the fact that the trizonal nego- tiations have not yet been completed we have invited the French in on the control groups.
The establishment of a Ruhr authority was agreed in principle at the London conference earlier this year and, at present, its actual functions are being
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Foreign Affairs discussed. We are giving very sympd- thetic attention to the French proposal that the Ruhr authority should have cer- tain supervisory powers in regard to production, i.e. what is sometimes termed the International Control of Management. But I do not want to land the Ruhr industries into a position which produces a hostility like that aroused by the Ruhr occupation at the end of the last war, which sets back the opportunity to bring together these people on wider grounds and, I think, on better terms. I recog- nise the French susceptibilities. I will try to meet them in all the discussions. But I hope that our friends in France will realise that the one chance which has now come to try to bring the people together ought not to be lost.
Finally, we have completed the arrange- ments for setting up a Military Security Board, which was also agreed upon in principle at the London conference last summer. This is a subject which, I think, has not had the public attention it should have. It deserves more thought. We put this forward, regarding it as very vital from the point of view of security. We have to look forward to the time when the period of Military Government is finished. We have to create an organisa- tion upon which we can rely for the prevention of German rearmament, and I include, of course, industrial rearma- ment. If we can get the Security Board established on a proper footing, with all the requisite powers of inspection and enforcement, we shall have created the essential condition of European security in regard to Germany. On the other hand and I emphasise this--insofar as her industries are used for peaceful purposes, we want to ensure that Germany is given the chance to develop her own economy and to contribute to European recovery. Our object has been by these various means to establish the proper balance between the economic considera- tions and security, which preoccupies France in the approach to all these problems. We shall try to maintain that balance.
I think I have dealt with the points on Germany to which hon. Members indicated they wanted me to refer. The next problem is that of Austria-
Mr. Lipson (Cheltenham): Will the right hon. Gentleman say a word about the dismantling of the Ruhr industries?
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In connection with Western Union, about which there is a great deal of con- cern, I ought first to refer to the European Recovery Programme, for one of the biggest contributions to Western Union is the Marshall Aid Plan and the co- operation of the 18 countries under O.E.E.C. I hope I shall not be taken wrong by the United States when I say that they are great exponents of free enterprise in America, but wonderful planners outside.
9 DECEMBER 1948
Mr. Bevin: The dismantling problem our problems than to be holding people is still under discussion with the United in this position. States. The French are very concerned about the dismantling problem, as I have pointed out to the House from time to time; and their fears enter in here too. The question of reparations is a vexed one. I regret that it has taken so long to deal with this problem and that the disputes and disagreements have held us up. When we dealt with it in the Coali- tion Government, as some hon. Members opposite will remember, it was our idea that whatever we did in this field we should accomplish in about two years and finish with it. But there have been so many disagreements. I do not admit blame on this, but I am anxious that we should get agreement and that it should be final. Now this question has become mixed up to some extent with European recovery and is also connected with security and we who are responsible for the administration of our zone are torn by fears over these security problems on the French side and the European re- covery cost on the American side. I have met Mr. Hoffman this week. I have gone through the list again and hope to be able very soon to report to the Cabinet a final settlement of this problem so that the Germans and everyone will know where they are.
We have received a communication from the Austrian Government asking us to take up negotiations again for a Treaty. They have addressed that Note to the four Governments and His Majesty's Government for their part have readily agreed. Austria ought not to be left as she is at the moment; it is unfair to her. May I pay her this compliment. I went into this very fully only yesterday without representatives from Austria. Her people are working hard; her economy is very good under the circumstances and she is trying to do a great job under most difficult circumstances. I think it only fair that the four great Powers should try to settle the matter and get our troops out and allow her her freedom, in accordance with the solemn understanding reached in Moscow in 1943. On that basis we stood all the time in continuing to try to get this Treaty. I cannot help feeling that, whatever great difficulties the four great Powers may have between them- selves, it is rather bad form to visit these quarrels on smaller Powers and innocent people. It is better for us to try to settle
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Mr. Eden: With us it is the other way round.
Mr. Bevin: We believe in planning our own home first, and I think rightly so. I have no doubt that the experience the Americans are gaining abroad will ulti- mately reflect itself at home. The effort which is being made by these countries to work out this long-term programme is an extraordinary thing. Anyone who knows anything about the diversity of the economies of these countries and who has had to negotiate with them in the past, must realise how difficult it is to bring together one programme for all of them. It is quite understandable that at the moment they have not all agreed on a joint programme and therefore individual programmes are being put in. Any- one who has had to deal with Govern- ment Departments in his own country knows that reconciling differences is some job. When it is a question of
claims harmonising the
of all the
countries
when involved, especially dollars are involved, one can quite under- stand the divergence of opinion. But I am satisfied that, with the goodwill that exists, if patience is exercised Western Europe will in the end get a common long-term plan worked out. Once that has been achieved, the experience of it will be such that it will turn out to be one of the biggest contributions to the solidarity of the West in the economic field.
One difficulty which has arisen in this matter is our trade with our friends the French. I see that a good deal is said to the effect that Britain is dragging her feet, that we have too great an austerity programme, that we are not buying from the French all that we ought to buy, and
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