Memorandum of Conversation with Secretary of State Dean Acheson, Charge d'Affaires of the Federal Republic of Germany Heinz Krekeler, Dr. Ludwig Erhard, Otto Friedrich, and G. W. Lewis

139 ARCHIVES NATIONAL AND DEPARTLENT OF STATE RECORDS 861 . is SERVICA** 173 MEMORANDULI OF CONVERSATION SUBJECT: Visit of Dr. Erhard with the Secretaryo July 5, 1951 PARTICIPANTS: The Secretary of State Dr. Ludwig Erhard, Economic linister, German Federal Republic. Herr Heinz Krekeler, Charge d'Affaires, German Federal Republic. Herr Otto Friedrich, Adviser to Dr. Erhard Liro Go W. Lewis, GER COPTES TO: s/s) GEA - lir. Liargolies ECA - liro Foster GPA - liro Laukhuff E - Thorp GAI - lir. Kellermann EUR HICOG RA Dr. Erhard, Herr Krekeler and Herr Friedrich accompanied by Mr. Leris called on the Secretary at 4:30 this afternoon. After conveying the greetings and good wishes of Chancellor Adenauer to the Secretary Dr. Erhard stated that he wanted to make clear first of all that the purpose of his visit to this country was not to ask for anything but to explore ways in which Gerwany could contribute to the building of the strength of the West. He stated that the Germans are very grateful for Liarshall Plan aid but anxious to do as mich for thenselves without external assistance as possible. Dr. Erhard then went on to say emphatically that the Germans were firmly with the West and that no responsible German believed in neutralism. He thought that Germany could maite a very substantial economic contribution to the defense of the West and could do so before they had made the decision, which he believed to be incvitable, in favor of military participations He considered that making an effective economic contribution would make the other step easier and more natural. In addition, such an economic contribution would step up the pace of production in Germany and thereby help in the solution of the economic and social problems which now face the Germans and which are being played to the limit by the Communists in West Germany. These economic and social problens are principally (1) unemployment (2) shortage of coal (3) the necessity for large food and rast material imports at a high cost. With respect to unemployment Dro Erhard pointed out that there were now 1.6 million unemployed out of a total working population of about 16 million. With respect to the lack of coal Dr. Erhard said that he hoped the US would realize that if the Germans were required to export coal during the next taro quarters at the rate established by the International Authority for the Ruhr (6.2 million tons per quarter) German production would have to be cut back and there would be serious political and psychological repercussions among the German people. DECLASSIFIED Dr. Erhard E. O. 11652, Sec. 3(E) and 5(D) or (E) Dept. of State letter, Aug. 9, 1973 CONFIDENTIAL Bax NLT- HC NARS Date 6.25.26