800.602/10–1845
The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received 6:15 p.m.]
802. The fourteenth meeting of the Coordinating Committee took place on October 16 with the French member presiding.
. . . . . . .
The principal discussion of the coordination [Coordinating Committee?] meeting concerned the Soviet claim for advance deliveries on account of reparations and the Economic Directorate’s report that 30 factories are available.66 The British member stated that the British Government would agree that the Control Council have the authority to allocate property as between Russia and Poland on one hand and the western countries on the other. General Clay stated that that had been his position at the last meeting. The French member stated that his Government agreed that Council may do this with the assistance of the Reparations Commission. This had been the Russian position at the last meeting.
The British member then stated as follows:
- (1)
- It is clear that the Reparations Commission will not meet for some time and it is desirable to expedite this matter;
- (2)
- The British do not agree with the Soviet statement that only the Soviets are entitled to interim reparations under the Potsdam Agreement, but believe that all claimant countries are so entitled;
- (3)
- Some indication is necessary of what each claimant country wants;
- (4)
- Some sort of evaluation of available property is necessary;
- (5)
- The Control Council must decide whether plants can be
subdivided and if so to what extent. He therefore proposed as
follows:
- (1)
- That a list of available factories be circulated to all claimant countries with the instruction that within two weeks they formulate lists of those they want;
- (2)
- That a committee of the Economic Directorate make recommendations within two or three weeks as to (a) what units of allocation should be used, and (b) broad assessment showing the relative value of the units so decided upon;
- (3)
- That the Council make allocations on the basis of these facts, one quarter to Soviets and three quarters to the western governments;
- (4)
- That the Finance Directorate work out a system of more precise evaluation (the British would accept one similar to the Soviet system in the satellite countries);
- (5)
- That a complete inventory and evaluation then be made;
- (6)
- That provision then be made for inspection of packing and shipping.
The Soviet member then made a somewhat bitter speech about the two and a half month delay on the Soviet claim for advance reparations. He claimed that the British member was back to discussing general principles again and all that had been done on the Soviet claim was wasted, and the claim put back on an indefinite basis. He stated that this claim is in conformity with Potsdam and that by now reopening the whole problem of reparations the other members are reopening the Potsdam Agreement. Finally he stressed that the Soviet claim was the only claim made for advance reparation deliveries and that it had a right to be examined and settled, but he denied that he had ever said that only the Soviets had a right to advance deliveries.
The British member replied with some warmth that it was unfair to accuse the British Delegation of delaying matters in this way when the whole matter of method and allocation had been under discussion on the governmental level. Until this was settled the Council could make no progress. He stated that his proposal is intended to speed matters up. The US member made a statement that the US does not agree that the Soviets alone should receive advance deliveries and wished to protect the interest of all its Allies. On the other hand, the US has urged the speediest action in the Reparations Commission and elsewhere, and will cooperate in any agreement that will expedite action. It was agreed (for Reinstein in London) that the British proposals will be studied with expedition.
[Here follows last paragraph of telegram, printed on page 883.]