740.00119 EW/10–1845
The Secretary of State to the Ambassador in France (Caffery)
4858. 1. Subject of this message is allocation of plants available for advance deliveries from western zones Germany under para 7 reparation section Berlin Protocol.
2. On Oct 5 General Clay was informed67 that agreement had been reached in London that initial allocation of industrial equipment removed from western zones as between Russia and Poland on the one hand, and other claimants on the other, will be made by Allied Control Council.
3. Clay has reported that in Oct 12 meeting of Control Council68 there existed confusion on this subject, apparently owing to fact that British and French representatives on CC had not yet been notified by their governments of the London decision.
4. Dept has since learned from Reinstein in London that British have instructed their group CC that Control Council should make such allocation. Clay is again being instructed today to press for agreement in Council to this effect.
5. Since French are the only power on Control Council blocking agreement on this point, you are requested to approach foreign office with a view to having them instruct their representative on CC to concur. You should point out:
- a.
- Any fear that the Council would unduly favor the Soviet Union in making such allocation is groundless. Clay was informed in Oct 5 telegram that Dept opposes present allocation of delivery to USSR of industrial equipment from western zones pending (a) appointment of US member of IARA who would act as Clay’s advisor on allocations in Control Council; (b) receipt by IARA of lists of plants desired by other claimants and (c) progress in resolution of counter deliveries issue and formulation of valuation principles. Thus the American representative would certainly not agree to large scale deliveries to USSR to the detriment of the interests of other claimants.
- b.
- The French obviously have a veto power by virtue of their membership on Control Council.
- c.
- Blockage on interim reparation deliveries by French and counter-blockage by Russians of restitution is leading to impasse in Control Council. French, by being reasonable on question of advance delivery allocation can break the vicious circle without actually sacrificing anything. On the other hand, continued blocking of agreement on this point can only serve to heighten USSR suspicions that western powers do not take seriously question of advance deliveries, and to increase already existing tension.
6. In your representation please emphasize to French that US regards this matter as one demanding urgent attention and that this is why your démarche is being made now without waiting for tripartite ACR meeting scheduled for Oct 29.
Sent to Paris as 4858. Repeat to Berlin as 688, Moscow as 2184, London as 9244.