740.00119 EW/7–2345

No. 874
The Chief of the Division of Central European Affairs ( Riddleberger ) to the Assistant Secretary of State ( Dunn )1
secret

Memorandum for Mr. Dunn

In connection with Molotov’s proposal2 that payment for a minimum import program approved by the Control Council would be the first charge on German exports, the following should be borne in mind with reference to the powers of the Control Council:

Article 1 of the Agreement on Control Machinery in Germany3 stipulates that supreme authority will be exercised by the four Commanders in Chief, each in his own zone of occupation, and also jointly in matters affecting Germany as a whole in their capacity as members of the Control Council. Article 3 (c), however, stipulates that decisions of the Control Council must be unanimous. This means, of course, that any minimum import program would have to be approved by the unanimous decision of the Control Council. In the absence of unanimity in the Council, the authority of the zone commanders would obviously remain supreme.

It can therefore be assumed that if there be no agreement in the Control Council on a minimum import program, the American zone commander would not have to make reparation deliveries from the U. S. zone. However, this point should no doubt be made very clear to Molotov if we contemplate accepting his proposal.

  1. Printed from an unsigned carbon copy.
  2. See documents Nos. 872 and 873.
  3. Signed at London, November 14, 1944, as amended by a further agreement signed at London, May 1, 1945. For texts, see Treaties and Other International Acts Series No. 3070; United States Treaties and Other International Agreements, vol. 5, pt. 2, p. 2062. Text of the agreement of November 14, 1944, also in Foreign Relations, The Conferences at Malta and Yalta, 1945, p. 124.