740.00119 EW/6–2445: Telegram

No. 620
The Representative on the Allied Commission on Reparations ( Pauley ) to the Secretary of State 1
top secret

2250. Top sec from Pauley for the Secretary.

I am informed that the US has in effect waived any claim to reparation (other than compensation for damages to Amer property) from both Rumania and Hungary and that similar action is contemplated on the part of the Allied powers in the case of Austria. However, [Page 943] surplus of certain commodities available for export from Rumania, Hungary and Austria such as oils and agricultural products are presently being supplied Amer occupation forces in Germany from the US. If these supplies could be made available to such forces by reverse Lend-Lease from the Soviet Union which has just announced it is expecting to receive some of these commodities from Hungary and Rumania as reparations it would both greatly assist in waging war against Japan and increase the net amount of reparations which we may be able to secure from Germany. I shall appreciate anything you may be able to do along these lines and I shall be glad to assist here in our dealings with the Soviet Union in any way which you may suggest.2

  1. Sent to the Acting Secretary of State over the signature of Harriman.
  2. The Department was informed by the United States Delegation at Babelsberg on July 21 (telegram Victoby 181, file No. 740.00119 EW/7–2145) that, in view of a United States proposal made to the Berlin Conference (see vol. ii, document No. 1320), no further action on Pauley’s telegram No. 2250 was necessary, and that the reverse lend-lease issue had been dropped.