CAB129-45 — Page 268

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Armulated 13/4/51 (1pm) 13/4/51(1/m)

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THIS DOCUMENT IS THE PROPERTY OF HIS-BRITANNIC-MAJESTY'S GOVERNMENT)

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C.P.(51) 108

13TH APRIL, 1951

CABINET

COPY NO. 3L

SCHUMAN PLAN

ALLIED CONTROL OF GERMAN HEAVY INDUSTRY

Memorandum by the Secretary of State for Foreign Affairs

At the meeting of the Inter-Governmental Study Group on 10th April, an important statement of proposed policy towards German industry was made unofficially on behalf of the French Government. First, the French Government intends to propose that as soon as the Schuman Treaty is signed there should be discussions between the three Occupying Powers and, to the extent that they are concerned, the Benelux countries, about the conflict of jurisdiction between the Schuman Treaty institutions on the one hand and Allied controls over German coal and steel and the International Authority for the Ruhr (I.A.R.) on the other. Second, during these dis- cussions the French Government proposes to take the line that as soon as practicable after the Schuman Treaty comes into force through ratification in the Parliaments of member countries the functions of the I.A.R. and of the High Commission in respect of German coal and steel should cease, and the present limitations on German steel production and capacity under the Agreement on Industrial Controls should be removed. (cf. C.P.(51) 89, paragraph 17 of Annex, penultimate sentence). Third, the French Govern- ment will, at the time when the Treaty is signed, inform the German Government of their intentions and proposals as summarised above.

2.

Consideration of the attitude of His Majesty's Government towards these proposals is urgent. The discussions preceding the signature of the Schuman Treaty started on 12th April in Paris, and the Treaty will probably be signed very soon. Whether or not the French give publicity to their declaration of intentions, we may be sure that it will not remain a secret. The French no doubt anticipate that Dr. Adenauer will find their declaration a useful means of influencing German opinion in favour of the Schuman Plan, and they may well wish to gain some credit in Germany at the expense of their Allies. Ratification of the Treaty by the Parlia- ments of all member Governments is not likely to occur for a considerable period thereafter (if at all). The French proposals will not therefore take effect for some time, but their intention to announce their policy in advance means that the other Occupying Powers cannot afford to hesitate in making up their minds on the questions at issue, and in informing the Germans of their views. The United States Government can be expected fully to endorse the French proposals.

3.

In these circumstances, Ministers will no doubt wish to determine their policy on the main points raised by the French, i. e. the necessity for the continued existence of I.A.R., the Combined Coal and Steel Control Groups, and the need to maintain limits on German steel production and capacity.

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