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Printed for the Cabinet. May 1952

SECRET

C. (52) 161

CABINET OF ARE

RECORD COPY

13th May, 1952

CABINET

Copy No. 73

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GERMANY: MANUFACTURE OF SHORT-RANGE GUIDED MISSILES

MEMORANDUM BY THE SECRETARY OF STATE FOR FOREIGN AFFAIRS

When the three Foreign Ministers discussed the control of German armaments production with the Federal Chancellor in London in February, he agreed that long-range and guided missiles should, subject to definition, be included among those war materials which could not be made in exposed strategic areas of the European Defence Community (i.e., Germany), except by the unanimous decision of the E.D.C. Council of Ministers.

2. Dr. Adenauer has now claimed the right to make short-range guided weapons, particularly for anti-aircraft defence, subject to the general armaments pro- duction procedure of the E.D.C. draft treaty (i.e., that such weapons should appear on List I, and not on List II). We have so far resisted this request, in accordance with the conclusion of the Defence Committee on 30th April, on the grounds that (a) these very important weapons should not be made in an exposed area, where their factories might fall into enemy hands (so far as we know, the Russians have not yet succeeded in making them-nor have we and the Americans); and (b) if the Germans were allowed to make short-range weapons, they might be able compara- tively soon to make long-range weapons. We said that we would, however, be prepared to discuss means whereby the Germans could co-operate with the E.D.C. countries, the Americans and ourselves, in research regarding short-range guided missiles and their development, and consider German participation in their manufacture in a non-exposed area. German units in E.D.C. would get their share of such weapons wherever they might be produced.

3. Early last week the Germans proposed that there should be a common programme of research and development, with German participation in production in a non-exposed area, to the apparent exclusion of all national programmes and on condition that short-range guided missiles should not be on the E.D.C. treaty List II, which is subject to unanimous decision of the E.D.C. Council of Ministers, but on List I. Later Dr. Adenauer was induced to agree to drop this latter condi- tion, but he continued to insist on a firm offer in writing for Western Germany to participate in joint research and development and manufacture in a non-exposed

area.

4. The Americans want the Germans to develop short-range guided missiles, and do not wish them to be subject to unanimous decision by the E.D.C. Council of Ministers. The "common programme" proposal would, I understand, prob- ably be acceptable to the French. Our position is more difficult, both technically and politically, for reasons set out below. There are four possible courses:

(a) To maintain our insistence that short-range weapons should not be made in exposed strategic areas (i.e., that they should be kept on List II of the E.D.C. draft treaty) and decline to enter into any form of commit- ment which might involve the United Kingdom in participation in a

common programme.'

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This line would almost certainly not be supported by the Americans, in which case it would be resisted by the Germans and a deadlock would ensue.

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