CABINET MEETING, JUNE 27, 1947
THE PRESIDENT
Asked Steelman to bring up question of cutting off coal exports in view of threatened coal strike.
STEELMAN
Said there were 2 points of view with respect to this. One to continue until strike becomes a fact, the other to stop as of now.
MARSHALL
Had no particular view.
KRUG
Would like to embargo high type coals for cooking - metallurgical uses.
HARRIMAN
The matter should be studied carefully. Agrees that high grade coals should be restricted.
THE PRESIDENT
Agreed - asked Krug, Harriman & Steelman to get together and work out program.
MARSHALL
Feels that we should not cut off oil export to Russia unless we shut off exports to all other nations. Thinks the State Dept should take the responsibility.
KRUG
It will be embarrassing if we continue to ship oil to Russia as we are going to have serious shortages on West Coast.
THE PRESIDENT
We should cut off all exports if Russia is cut off.
MARSHALL
Thinks we should allow the Argentine to procure surplus Navy ships - in order to implement new policy toward that country and to provide work for American shipyards in reconverting such ships.
NAVY
Agrees.
WAR
Agrees.
THE PRESIDENT
Instructed War & Navy to procede with delivery to Argentina.
MARSHALL
Discussed the problems of providing support to Chinese Govt. We are providing surplus planes and other items - but there are 2 views with respect to this. The banking class resent our furnishing supplied to liberal group in China. They claim we are prolonging a bad situation. Thinks we should provide money for coal mines, railroads and a winter port. Thinks other Cabinet officers should maintain a polite silence if approached by Chinese officials. It is a ticklish situation as to whether we should provide arms & munitions to Chinese Nationalist Govt to further a Chinese civil war.
....(minor discussion)
MARSHALL
Discussed removal of capital assets out of occupied zones in Germany. Russia has maintained stubborn attitude - exacting demands which are out of proportion to removals by U. S. and Britain. Presents grave problem in working out reparations under provisions of Potsdam agreement.
PATTERSON
Gen Clay thinks we should go ahead with removals to countries other than Russia. Russia will remove plants not for own immediate benefit but for the damage it will do the British and U. S. reconstruction programs.
MARSHALL
Knows Clay's position but it has not produced results.
PRESIDENT
thinks whole transfer program should be held up.
11:10