Ext 6116/46(S) 'Secret Weekly Political Intelligence Summaries, nos 356-416, August 1946-November 1947' [‎32v] (64/978)

dismantle the job would be continued with
workers employed by the Allies. This,
coupled with General Clay s earlier warn
ing that non-co-operation would reduce the
willingness of the Occupying Powers to
help Germany with supplies, seems to have
put a slight—if temporary—damper on
German indignation. It is reported that
the German Economic Council in Frank
furt received the news with resentment but
also with relief that it now knew the worst
and that it was not quite as bad as had
been expected. The Zonal Advisory
Council in the British zone adjourned
when it heard the news but there is
apparently no suggestion of it refusing to
meet for the next sitting. On the 18th
October senior British officials met party
leaders and trade unionists in the Ruhr.
The KPD was not represented—and pre
sumably had not yet received complete
instructions on its line of attack. In spite
of general criticism of the plan no
immediate intention was revealed of
encouraging resistance to dismantling.
The Prime Minister of Lower Saxony,
Kopf, a Social Democrat, has also tele
phoned to premiers throughout the
Bi-zonal area recommending that they
should refrain from spontaneous comment
or action on the plan. Nevertheless all this
is probably only a temporary lull in the
storm. The workers are clearly waiting
for a lead from their unions, and while
Kopf may counsel moderation there is a
strong chance of serious difficulties when
work actually begins.
The most violent source of opposition at
present is the CDU where Adenauer has
burst out with references to the “ projec
ted plundering of German industry ” in
contravention of international law.
Ollenhauer of the SPD has echoed
Schumacher’s warning that the party
could not expect German workers to help
dismantle plants used for peaceful produc
tion. The most serious trouble may yet
come from the Communists. Despite the
co-operative and anti-communist attitude
of many of the trade unionists of long
standing the KPD has been infiltrating the
ranks of the unions and Works’ Councils.
It will naturally be unscrupulous in its
attempts to win over Western Germany
and is not hampered by unwillingness to
deprive the area of Anglo-U.S. aid. In
any case there remain for exploitation
by one group or another the strongly-
rooted belief that German economy can
recover if dismantling takes place and the
awareness of many Germans that this
belief is shared by many organs of opinion
in Great Britain and the United States.
The Anglo-U.S. talks in Washington to
review the Bi-Zonal Agreement have not
yet been concluded. H.M. Government
are now studying proposals to bridge the
gap between the view of the respective
delegations on current dollar payments as
outlined in last week's Summary. Part ^
the disagreement now centres upon the
U.S. claim that all sterling balances of the
Joint Export/Import Agency An office of the East India Company and, later, of the British Raj, headed by an agent. should con
tinue to be freely convertible into dollars
whenever the dollar balance falls below
$20 million. Somewhat less difficulty
is being encountered over the actual
reorganisation of the Joint Export/Import
Agency An office of the East India Company and, later, of the British Raj, headed by an agent. to give the U.S. authorities a share
of control more proportionate to their con
tribution of funds although even here it is
feared that there is a risk of devolving too
much authority on the Agency An office of the East India Company and, later, of the British Raj, headed by an agent. as a whole.
Besides the plenary sessions of the con
ference, private talks have been held of a
thorough and helpful nature. An impor
tant feature throughout has been the
leading part played by General Clay who
on this occasion has been sympathetic to
British views and is fully alive to the need
of presenting this country’s case to the best
advantage with Congress. He has asked
for an assurance to Congress that British
military administration and forces will
not be withdrawn until the end of the occu
pation. In private Sir William Strang
pressed home the significance of the present
talks by telling General Clay that the
United Kingdom could maintain occupa
tion forces in Germany only if the United
States, by relieving her of the present
dollar burden, made it possible for her to do
so. General Clay fully realises this, but
is asking for a firm short-term assurance
as well as the general assurance already
given that Great Britain will fulfil all her
obligations unless prevented by circum
stances outside her control. The cost for
the current year of maintaining armed
forces and the control staffs in the British
zone is over £80 million.
The importance of clear public under
standing on these points is increased by
the possibility that the Russians may sug
gest at the November Conference that all
troops should be evacuated from Germany.
This move would naturally be mainly for
propaganda purposes. Treatment of this
and other problems connected with the
forthcoming conference have been dis
cussed informally in Washington. Once
again the United States Government seem
unwilling for a prolonged conference in
which they are not hopeful of any
decisions, but they are sympathetic to
Mr. Bevin’s desire that nothing should be