740.00119 EW/6–2245: Telegram

No. 389
The Political Adviser in Germany (Murphy) to the Acting Secretary of State

36. With reference to the division by agreement between the US, UK, USSR and France of the Naval and merchant fleets of Germany, Ambassador Pauley has informed General Eisenhower that, as US Representative on the Allied Reparations Commission, it is his view that as long as the US is at war with Japan the division of both the German naval and merchant fleet is strictly a military matter. The division of the German merchant fleet, however, is a matter within the ultimate concern of the Reparations Commission, and Pauley added that it was desired that a careful record and description of the ships involved be made with a view to future discussion and reparations accounting. In this connection Pauley asked Eisenhower’s permission to appoint as observer at the discussions of the division of the German Merchant Fleet Captain John Faigle USN of the Reparations Commission staff.