362.115 St 21/61a: Telegram
The Acting Secretary of State to the Commission to Negotiate Peace
3145. Supplementing Department’s September 15th relative German tank steamers.46 Dulles47 reached Department just after [Page 546] sending of this telegram. He points out that in view of the non-representation of United States on Supreme Economic Council the Supreme Council is the only body upon which the United States is represented which has authority to dispose of this matter.
He points out (1) that question of whether these boats should be utilized by Allies or left to Germany for utilization was given consideration first at the time of the negotiated Brussels Agreement and secondly by special Committee appointed to consider reparation for Scapa Flow sinking. On both of these occasions it was agreed to leave these boats to Germany for utilization. (2) The need of Germany for petroleum products is recognized and the receipt by Germany of such products is essential to enable Germany to reconstitute herself for making reparation payments.
In view of these facts and that the blockade of Germany has been raised by action of the Supreme Council which promised Germany freedom of commercial intercourse, the Department believes that the Mission should press vigorously for a decision by the Supreme Council which will permit of the utilization of the boats by Germany pending their being disposed of in conformity with the treaty provisions.