Memorandum from Gen. George C. Marshall Fleet Admiral William D. Leahy

1 FOP SECRET WAR DEPARTMENT OFFICE OF THE CHIEF OF STAFF WASHINGTON 2 July 1945 MEMORANDUM FOR ADMIRAL LEAHY : SUBJECT: Dissolution of SHAEF The U.S. Ambassador to Belgium, Mr. Sawyer, has repeatedly reported to the State Department the necessity for continuance of some centralized economic control over Western Europe, and had recommended that Supreme Headquarters, Allied Expeditionary Force, or some similar combined agency be continued for that purpose. He has most recently reported that at a conference, attended among others by Lt General Morgan of SHAEF and him- self, "it was decided to make one final effort to secure a decision to postpone dissolution of SHAEF on 1 July as planned" Mr. Sawyer believes that this problem may require a decision by the President and Mr. Churchill. This is but one of a number of reports by U.S. diplomatic personnel indicating that the question of continuation of combined command in Europe may be raised by the Prime Minister with the President. The usual reason advanced for retention of combined command has been that the economy of the liberated countries and of Germany are interdepen- dent, and that the liberated countries cannot exist without imports, parti- cularly coal, from Germany. It is stated that the military governors in Germany, anxious to administer as efficiently as possible their respective zones, will concern themselves primarily with the rehabilitation of their own zones, utilizing all the economic resources of their zones for that purpose and thus leave none or insufficient quantities for export to the liberated countries. This, it is implied, would result in a situation in which the U.S. would find itself aiding a defeated enemy at the expense of its Allies. The CCS have agreed that SHAEF will be terminated on 1 July, or as early as practicable thereafter, the exact time to be determined by General Eisenhower. In spite of this agreement, it appears from Mr. Sawyer's and other messages that an attempt may be made, possibly by Mr. Churchill, to have the President reverse this decision and continue SHAEF or some similar agency as an over-all economic authority for Western Europe. Attached is a draft memorandum on this matter which you may wish to present to the President, if the question is raised with him. TRUMAN is ARCHIVES "NATIONAL SERVICE* AND DECLASSIFIED PORVICTORY E.O. 11652, Sec. 3(E) and 5(D) or OES Bi BUY UNITED White Chief of Staff OSD letter, May 3, 1972 STATES WAR NARS Date 6.29.26 BONDS AND STAMPS SEORET