740.00119 EW/7–1445: Telegram

No. 375
The Representative on the Allied Commission on Reparations ( Pauley ) to the Secretary of State 1
us urgent

2564. From Pauley to Secretary [of] State.

I refer to the statement of principles which all members of the Commission had agreed should be immediately submitted to their governments for approval. (See my 2441, July 6, 11 p.m.2). Although our Government and the British are in agreement, today Maisky said the Soviet would not take the last sentence of paragraph 8 which reads as follows: “In working out the economic balance of Germany the necessary means must be provided for payment of imports approved by the governments concerned before reparation deliveries are made from current production or from stocks of goods”. I stated that my own Government stands firmly on the principle that approved imports shall be a prior charge against approved exports of current production and stocks of goods and that I was sure that my Government would not recede from this position. I added that personally I felt so keenly on the subject that I would not recommend the deletion of this clause in the principles. It was left that the matter would have to be handled directly by the Big Three in their forthcoming meeting.

Repeated to Eisenhower and Clay as 14.

  1. Sent over the signature of Harriman. The gist of this message was included in telegram No. 35 of July 16 from Grew to Byrnes (file No. 800.00 Summaries/7–1645).
  2. Document No. 367.