Foreign Relations of the United States: Diplomatic Papers, 1945, European Advisory Commission, Austria, Germany, Volume III

740.00119 EW/10–2645

The Secretary of State to the Ambassador in France (Caffery)

Washington, October 26, 1945—8 p.m.

5005. For Angell Number 1.

1. While memo on external assets⁷⁹ states that further facts on German property in Austria are required before US position can be fixed definitively, Dept believes you should have general statement of principles, to be later modified in light of facts, for discussions on subject which British want to initiate. Dept’s tentative views are that creation of economically self-supporting and independent Austria as per Moscow Declaration⁸⁰ is consideration outweighing desirability of obtaining additional property for reparation pool. Punishment of Austria via reparation removals is of course not involved. For these reasons, Dept holds in principle German property in Austria should primarily remain there as part of Austrian economy. Exceptions may and probably should be made of post-1938 factories which are devoted almost entirely to war purposes and which cannot be converted at reasonable expense to civilian uses; and of plants which clearly involve uneconomic use of resources. Dept does not favor at present any suggestion of leaving German property in Austria whilst transferring title to foreign ownership as reparation payment. Such transfers, it is felt, would unduly burden Austrian balance of payments and prejudice growth of economically independent state.

2. Dept has approved two proposals made by Clay respecting reparation transfers. First, it approved suggestion that ACC transmit to various countries entitled to claim reparation from Germany lists of plants declared by ACC eligible for advance deliveries, requesting answer to be made in 14 days whether such countries are interested in receiving any such plants as reparation. This replaces Dept’s earlier idea that USPolAd circulate such lists; if adopted, it will involve USSR recognition of right of other countries to contest USSR claim to listed 40 plants as advance deliveries. Second, Dept approved proposal that after ACC declared factory available for advance deliveries, field survey of factory should be made to determine whether factory be removed for reparation as single unit or whether it is capable of being divided into several units which could be allocated separately. This survey would, under Clay proposal, be completed within 21 days of ACC declaration on plant.

3. Dept outgoing telegrams to US delegation to ACR will be numbered in series with designation “for Angell” and number as above. Please designate incoming telegrams “From Angell” and assign them consecutive numbers.

Byrnes

79. Not printed; the document referred to was one of the preliminary instructions on policy from the Department of State to the United States Representative on the Allied Commission on Reparations, designated Repmems; the paper dealing with German Foreign Assets was Repmem 4.
80. Reference is to the Declaration on Austria, November 1, 1943, issued at the Tripartite Conference of Foreign Ministers, held in Moscow October 18–November 1, 1943; for text, see Foreign Relations, 1943, vol. i, p. 761.