740.00119 EW/10–1245

The United States Political Adviser for Germany (Murphy) to the Secretary of State

759. Reference Department’s 535, September 24, 7 p.m. suggesting establishment of mixed commissions for reparations studies.

1.
Pursuant to this suggestion, Assistant Deputy for Trade and Finance,54 OMGUS,55 has prepared for Coordinating Committee an [Page 1344] order for appointment of mixed commissions to inspect industrial capital equipment, paraphrase of which follows.
2.
Begin paraphrase. It is desired to hasten determination of industrial capital goods which will be removed as reparations from Western Zones in Germany. To this end mixed commissions will be established to conduct in four zones of Germany field examinations upon following bases.
3.
Soviet Zone. A commission, consisting of one delegate appointed by each occupying power (a total of four), shall inspect industrial capital equipment which USSR advises will remain in Soviet Zone after reparations deliveries and in addition all available pertinent records. Purpose is to determine productive capacity of this equipment in ascertaining level of industry necessary to German peace economy envisaged Potsdam Agreement.
4.
US, UK, and French Zones. To ascertain value, productive capacity, and availability for reparations of industrial plants and equipment in three Western Zones, one commission for each zone is authorized to undertake the necessary field examinations of equipment and records. Each commission shall have seven members selected as follows: Each occupying power will designate one member for each commission and jointly, through Economics Directorate, powers will appoint to each commission an additional three members to represent those countries recognized as reparations claimants. These latter three members will be chosen from a group of nine to which Czechoslovakia, Denmark, Egypt, Greece, Netherlands, Norway, and Yugoslavia may nominate one representative each, to which Belgium and Luxembourg together may nominate one delegate and to which Australia, Canada, India, New Zealand, and South Africa jointly may nominate one delegate.
5.
Each recognized claimant country will be requested through appropriate channels by ACA56 Secretariat to make nominations suggested above by October 1945 and names of members nominated will be transmitted to Economics Directorate. Latter, after approving nominations, will assign to each commission for Western Zones three of these nominees as outlined above.
6.
Representative of nation occupying zone in question shall be chairman of commission. Subject to appeal to Economics Directorate, Chairman shall decide any disagreements which may arise in any commission. End paraphrase.
7.
Department’s comments and recommendations urgently requested so formation of commissions may proceed without delay.

Sent Department 759; repeated to London as 105.

Murphy
  1. Laird Bell.
  2. Office of Military Government United States (in Germany).
  3. Allied Control Authority.