862.85/1215: Telegram

The Acting Secretary of State to the Ambassador in France (Wallace)

1420. For Boyden B–93.

Your B–209, August 18.

1.
There should be clear, formal recognition that evaluation of ex-German ships is under exclusive jurisdiction of Reparation Commission. No agreement instructing Inchcape to dispose of ships allotted to England should be allowed to compromise this principle.
2.
After principle is formally accepted that Reparation Commission shall evaluate ships as of the date on which they were delivered by Germany, Department recognizes that respective Governments should be permitted to dispose of ships allotted to them as they see fit. Insistence on valuation of ships by Commission before permitting them to be sold might involve unnecessary delay.
3.
Position of Italy that ships should be sold for account of Reparation Commission does not seem to be necessary, though it might be [Page 423] wise to have on record statement that various governments will accept valuations of Commission and become responsible for values of all ships sold or held when Commission fixes such values.
Davis