Evening star., 1947-07-27
Three-Power ParIeys
On Germany May be
Key TO Europe's S Fate
by the Assoeioted Press

IVY ~ LUiVpS } tUtV
BY the Associated Press
LONDON, July 26.-British diplo-
mats believe the economic future of
Europe depends on Forthcoming at
tempts of Britain, the United States
and France to solve the problem of
western Germany.
Authoritative British sources said
tonight there are possibilities of
widespread success and equally
widespread failure when the three
nations grapple with the questions
of German industrial production
and the future of the Ruhr with its
giant coal potential.
They said they considered a sue
cessful conclusion of the negotia-
tions, strengthening European econ
omy with agreed measures on Ger
man steel, coal and chemicals, might
darken the prospects of writing a
German peace treaty here next
November.
Russians May Fear Accord.
Soviet Russia might look on agree
ment as the formation Of an eco
nonic bloc against her, they said.
On the other hand, these sources
said, if the United States. Britain
and France fail to agree on the
rebuilding of Germany, a period of
diplomatic conflict" might follow
which could have "a disastrous ef-
feet" on the Marshall Plan for the
economic revival Of Europe.
Two sets of discussions have been
scheduled.
The first, between Britain and
the United States, will be held in
Washington ION an official level
in the next week or two, to consider
means Of stepping up coal produc-
ton in the British-controlled Ruhr,
the industrial nerve center of the
Western zones.
Europes Position Seen.
The second will be among France,
Britain and America to consider
French objections to an Anglo
American agreement to raise the
level of German industrial produc-
ton. They probably will be con-
Quoted through normal diplomatic
channels, a British Foreign ONCE
spokesman said.
If, as a result of these conferences
q partition of Germany emerges,
British sources stated their con-
viction that it was likely to mean
little else than Europe's partition"
These factors have impelled the
three powers to hold their talks:
l. A continuing industrial stagna-
ton in the Ruhr has begun to
menace the economic structure of
the merged Anglo-American oc-
cupation zones.
2. Dollar short Britain, now pay
ing so per cent of the upkeep of
the two zones, is prepared only to
shoulder 20 per cent of the burden,
leaving the rest to the United States.
Although such a request has not
yet been submitted formally to the
State Department. it will soon be
raised, British informants said.
3. Ruhr coal production mas hcv-
cred around daily average of about
100000 tons instead of the 350,000
tons daily average which the United
States believes to be necessary to
avert not only repetition OF last
winters fuel crises in Germany but
also collapse of any European recov-
cry program.
4. Frances protest against an
Anglo-American agreement, not yet
announced by the two governments,
to raise the level of German indus
trial production and to call off
further dismantlement of Germany's
war industries.
British Experts Due in U. S.
Three or four British experts will
fly to Washington next week. Brit
ain had wanted to widen the scope
of the Washington conference so
that she could put across her de-
mand for financial relief.
British officials said today that
while the Americans still wanted the
talks to be confined to stepping up
coal, output, they would be ready to
LohC d blOdQ VIC" vi Vic
necessary to achieve improvements
The British are expecting that the
talks will touch upon questions other
than management, equipment and
working conditions.
Authoritative sources said the
wider problem of the control and
ownership of the Ruhr mines was
not on the agenda but it was certain
to come up. Britain still maintains,
they said, that socilization would
give Che German miners a greater
incentive to work. In any case, they
argued, it was "unthinkable" either
to return the mines to former Nazi-
minded owners or to hand them over
to private United States interests.
France had made it clear, mean
while, that she favors reserving
decisions on Germany's industrial
levels for the Foreign Ministers
council in November
One source said Foreign Secretary
Bevin fears" that if the United
States should give Germany priority
aid it might give impetus to the
struggle of French Communists to
win governmental power.
He said French Communists have
been opposing their country's par
ticipation in the Marshall aid
Europe program, arguing that
America intended, through such a
dollar-aid scheme, to rebuild Ger
many industrially and even military
against Russia.