740.00119 EW/11–2045: Telegram
The Ambassador in France (Caffery) to the Secretary of State
[Received November 21—4:30 p.m.]
6722. From Angell No. 70. Further on treatment of Russian reciprocal deliveries. After exchange of UK and US memoranda41 submitted to three-party meetings November 12 and 13 Waley transmitted following note to Rueff and me on November 19 [16].
“My Government points out that the Potsdam Agreement clearly suggests that the 15% of the plant and equipment removed from the Western Zones as reparations which Russia will receive is something more than her proper share and would otherwise have gone to the Western Powers. In view of this and particularly in view of the fact that paragraph 19 of the economic principles specifically excludes from the first charge all equipment removed from the Western Zones [Page 1402] and the products delivered by Russia against her 15% my Government have reached the conclusion after careful consideration that goods delivered by Russia against her 15% should be regarded as belonging to the other claimant powers and that either the goods themselves or the cash proceeds from their sale should be distributed by IAEA (Inter-Allied Separations Agency).”
Since this view is consistent with US position and with indicated views of French, I consider matter settled in principle. Shall attempt to secure UK and French concurrence to an agreed memorandum.
Sent Department; reported to USPolAd Berlin as 10 from Angell and 214 from Paris. [Angell.]
- Neither printed.↩