Pauley Files

No. 881
The Representative on the Allied Commission on Reparations (Pauley) to the Secretary of State1

My Dear Mr. Secretary: I am in receipt of a copy of a letter sent by Sir David Waley of the British Delegation to Mr. Maisky. The letter to him states that he accepts the American Plan2 with a slight amendment clarifying “as a first charge” and adding “the needs of occupying forces”. These amendments are satisfactory to our Delegation.

Sincerely yours,

Edwin W. Pauley
[Enclosure]

The Under-Secretary in the British Treasury (Waley) to the Chairman of the Allied Commission on Reparations (Maisky)

Dear Mr. Maisky: We have now had an opportunity to examine the United States proposal on Reparations and related matters which was handed to us the other night. We are ready to agree in these proposals subject to lines 5, 6 and 7 of paragraph b reading as follows:—

“Either to pay, as a first charge, for necessary approved imports not otherwise paid for or, if such payment for imports has been effected, for its own reparation account or for the reparation account of any other United Nation entitled to reparation”[.]

The insertion of the words “as a first charge” expresses without ambiguity the point to which we have so often drawn attention. The insertion of the word “reparation” is only a drafting amendment. In this connection it seems desirable to define what we mean by “the needs of the occupying forces” and I enclose a memorandum giving our views on this matter.

I am sending a copy of this letter to Ambassador Pauley.

I am [etc.]

S. D. Waley
[Page 818]
[Subenclosure]

Memorandum by the U. K. Delegation

The programme of minimum required imports for Germany as a whole should include the supplies which the Armies of Occupation import in the form of food, petrol, oil lubricants and similar supplies and in the form of non-warlike stores, e. g. medical stores, works stores, furniture, etc. On the other hand, the cost of imported warlike stores (including vehicles and signal equipment as well as such obviously warlike items as guns and ammunition and clothing and also pay and allowances drawn by the troops outside Germany) would be at the cost of the Occupying Forces and not included in the programme of imports which have to be covered by German exports.

  1. Printed from a carbon copy on which there is an uncertified typed signature.
  2. document No. 925.