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societ -4- - #4693, November 10. 2 a.m., from Paris us as to removal of war plants. Plants which had been reserved for Soviet Union also presented no problem since they had been largely dismantled Issue came down to 15 to 20 plants, consisting for most part of synthetic oil and rubber plants and steel plants. Synthetic plants, in my view, did not present security hazard. As for steel. issue turned on examination of actual plants. In response to question by Schuman for facts on ques- - tion as to steel capacity involved, Robertson said it was matter of two plants, August Thyssen at Hamborn and Reichswerke at salzgitter. At beginning of war, former had capacity of 2.3 million tons of steel annually and latter capacity of 1 million tons annually Because of war damage and removals, Hamborn plant could only produce from capacity now left (re- fitting of which would take 9 to 12 months) 600,000 tons of pig iron and only 117,000 tons of steel. Reichswerke, on same basis, could produce 500,000 tons in about 6 months. Finishing capacity of Hamborn plant practically gone. Schuman said that if dismantling of these plants were now stopped, we would be forced allow Germans restore them and suggested this might occur with benefit of ECA aid. I assured him categorically that neither direct American aid nor counterpart funds could be used to replace any equipment removed from dismantled plants. During course of discussion, I suggested that among principles on which our settlement should be based is that no change in limit on steel production would be involved. In view of Bevin's reluctance to discuss specific plants in large meeting, I proposed that meeting be restricted to three Foreign Ministers and High Com- missioners. Before going into closed session, we agreed on settle- - ment of one outstanding point regarding limitation on German shipping which has remained unresolved for ( DECLASSIFIED E. O. 11652, Sec. 3(E) and S(D) or (E) S ome months. Dept. of State letter, 7-65-213 . chib By NLT- HC , NARS Date 9-9-76

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    "ocrText": "societ\n-4- - #4693, November 10. 2 a.m., from Paris\nus as to removal of war plants. Plants which had been\nreserved for Soviet Union also presented no problem\nsince they had been largely dismantled Issue came\ndown to 15 to 20 plants, consisting for most part of\nsynthetic oil and rubber plants and steel plants.\nSynthetic plants, in my view, did not present security\nhazard. As for steel. issue turned on examination of\nactual plants.\nIn response to question by Schuman for facts on ques- -\ntion as to steel capacity involved, Robertson said it\nwas matter of two plants, August Thyssen at Hamborn\nand Reichswerke at salzgitter. At beginning of war,\nformer had capacity of 2.3 million tons of steel\nannually and latter capacity of 1 million tons\nannually Because of war damage and removals, Hamborn\nplant could only produce from capacity now left (re-\nfitting of which would take 9 to 12 months) 600,000\ntons of pig iron and only 117,000 tons of steel.\nReichswerke, on same basis, could produce 500,000\ntons in about 6 months. Finishing capacity of\nHamborn plant practically gone.\nSchuman said that if dismantling of these plants were\nnow stopped, we would be forced allow Germans restore\nthem and suggested this might occur with benefit of\nECA aid. I assured him categorically that neither\ndirect American aid nor counterpart funds could be\nused to replace any equipment removed from dismantled\nplants. During course of discussion, I suggested that\namong principles on which our settlement should be\nbased is that no change in limit on steel production\nwould be involved.\nIn view of Bevin's reluctance to discuss specific\nplants in large meeting, I proposed that meeting be\nrestricted to three Foreign Ministers and High Com-\nmissioners.\nBefore going into closed session, we agreed on settle- -\nment of one outstanding point regarding limitation on\nGerman shipping which has remained unresolved for\n(\nDECLASSIFIED\nE. O. 11652, Sec. 3(E) and S(D) or (E)\nS ome months.\nDept. of State letter, 7-65-213\n. chib\nBy NLT- HC , NARS Date 9-9-76"
}