740.00119 Council/9–2745

The Ambassador in the United Kingdom (Winant) to the Acting Secretary of State

10081. This is Delsec 77 from Reinstein.

1.
Dearborn and I attended fourth meeting of Interallied Reparations Agency Organizing Committee on 27 Sept.
2.
Waley suggested that in view of the difficulties in securing agreement on the precise terms of reference procedure and membership of IAEA it might be well to postpone settlement of these matters and leave them to proposed conference of officials on 7 Nov. Both Denmark and Egypt would be invited to conference. His draft of invitation is being sent as separate telegram.90 Revised memo would be submitted as attachment.
3.
The conference of officials would discuss terms of reference and procedure of IAEA as well as shares in reparations. Invitations to IAEA would be sent to Denmark and Egypt. If conference resulted [Page 1318] in their exclusion from shares in reparations they could then be excluded from IAEA without embarrassment. I indicated that the US would probably not insist on a renewal of the invitation to the USSR although I had not yet received final instructions.
4.
This seems to me a sensible proposal which goes a considerable way towards meeting our objections to excessive dictation to the smaller countries. I do not think it would delay the substantive functioning of IARA although its formal constitution would be postponed. It could probably not be established until late in November or beginning December. I suggested that the invitation to the conference should indicate that it is expected that IARA will come into existence very shortly thereafter and that the member governments should have staff ready to participate.
5.
I promised to try to obtain instructions by Saturday 29 Sept on Waley’s new proposal. It is hoped meeting on that afternoon can agree to the proposed conference of officials and to the form of the invitation thereto.
6.
The problem of restitution remains the outstanding cause of disagreement. Waley agrees that as much as possible should be left to ACC and zone commanders but doubts that latter are best fitted to settle conflicting claims to looted property. He thinks such questions should be settled by an agency on which all claimants are represented and is strongly opposed to the creation of a separate international agency merely for that purpose. I expressed the US position but think he has a point in regarding IARA as a logical arbiter. It was agreed that issue could be postponed until Nov meeting.
7.
Rueff urged that an executive committee should be set up not later than 10 Oct to start looking into the staffing and housekeeping problems of IARA. Waley agreed to supply a British member of such a committee by 10 Oct. It is highly desirable that a US member should be available.
8.
Rueff stated that his Govt had agreed to Brussels as the seat for IARA, Since the British refuse to consider Germany because of lack of accommodation for even their own MG91 officials Brussels was agreed.
9.
It was agreed that the proposed meeting of 10 Oct concerning the French share in reparations should take place in Lisbon and not in Paris as originally scheduled.

Sent Dept as 10081, repeated to Paris as 625, USPolAd, Berlin as 148, and Moscow as 329. [Reinstem.]

Winant
  1. Telegram 10096, September 28, 4 p.m., from London, informed the Department that the draft was being revised and would not be telegraphed at present (740.00119 Council/9–2845).
  2. Military Government.