Memorandum of Conversation with Secretary of State Dean Acheson and Foreign Minister of France Robert Schuman

680 CoM 275 rop Setpember 27, 1949. MEMORANCUN OF CONVERSATION $. WITH THE FRENCH FOREIGN MINISTER en AND Mr. Schuman colled at hia request and asid that he had points which he wished to mention. 1. German Devaluation. He said there was a mecting of the High Commissioners now in session at Bonn, which had recessed pend- ing an opportunity for the French to comunicate with Mr. Schuman. He proposed to me that the Fronch would vote for the 20% de- valuation, provided he and I entered into an oral agreement as follows: "The American Government will fully cooperate with the Fronch Government to eliminate Before the first of January, 1950 the disparity between the export and domea- tie prices of German coal, with the exception of special cases. After writing this down, I referred to the suggested unilateral declaration by the Unit ed States High Commissioner, as contained in Mr. NcCloy's latest telegram and requested by the French, and gaid that Mr. MeCloy could not give this declaration, and that I would support him in his refusal to do so. However, I understood that Mr. McCloy was prepared to write a letter to Mr. Poncet ex- pressing his intention and desire to work toward this and in the light of the facts as developed. Mr. schuman said that this suggestion of his would not involve Mr. McCloy, but would be betwaen Mr. Schuman and me. I said that I could not onter. into any arrangements which had not been fully discussed with Mr. McCloy and after he and the Department had a thorough understanding. It was the policy of our Government to give Mr. McCloy toe nallest discretion. I asked whether the British were to be brought in on this agreement. Mr. Schuman said that was impossible, for the British opposed the policy involved aince they had different export and import prices for their own coal. I told Mr. Schuman that I would try to let him know before eight o'clock, after I had communicated with Mr. McCloy. DECLASSIFIED E. O. 11652, Sec. 3(E) and S(D) or (E) TOD Dept. of State letter, 333.33 By NLT- HC . NARS Date 4.27.76