740.00119 EW/11–1245: Telegram
The Secretary of State to the Ambassador in France (Caffery)
5468. For Angell,43 No. 45. Before receiving your 44 (Emb’s 6556) Nov 1244 and 45 (Emb’s 6557) Nov 12,45 Dept had drafted and sent to Paris proposed text of note to neutrals on external assets. If not already done, please arrange that copy of this tel (Deptel 9901 Nov 9 [10] to London, rptd to you as 5257) be shown to you.
Our views on questions raised in your ref tel and in Angell 14 Nov 346 are as follows:
1. Our proposed note is designed to reveal only our general position to neutrals and request them to meet with us promptly at a fixed date for negotiations. This would reduce possibility of rejection of note as Fr fear, and also tend to prevent negotiation by diplomatic communication which would delay solution. In this respect, Brit proposed note and Fr proposal that negotiations be conducted by Missions on Iberian Peninsula and special delegations elsewhere are unacceptable. We believe more can be obtained by having neutrals meet with us individually in Washington or perhaps Paris where negotiations can be conducted by appropriate personnel from Brit, Fr and Am Govts. We suggest, therefore, that Brit note be changed in this respect to conform with our proposed note.
Although we feel that Brit note overstresses legalistic arguments, we see no objection to notes differing in form or emphasis if above changes are made. Only other change we recommend in Brit draft, if ours is unacceptable to them, is elimination of phrase in pgh 4(a) “with compensation to the German owners in German currency”. Vesting decree left this question open and we feel it is preferable to [Page 916] eliminate ref to compensation. Also we suggest that Brit modify their note to mention specific date on which negotiations should begin.
2. We agree with you that Fr plan for arbitrary percentage of net proceeds for neutrals is not acceptable. If concessions have to be granted, we suggest that they be worked out to discriminate between various types of neutral claims against Germany. Our present position is that concessions could be considered only with regard to prewar debts.
3. We do not agree that we bring into negotiations entire question of maintenance of Proclaimed List. If neutrals raise this question, we should be prepared to bargain on it but it is contrary to our interests to show a willingness to give up this control prematurely. It appears to us that we can most effectively ensure liquidation or reorganization of firms on our terms if we retain them on list until such time as arrangements satisfactory to us have been made.
4. Your pgh (c) on disposition of assets raises administrative question involving IARA47 relations with German external property commission of ACC. A subsequent cable being drafted deals with question of liquidation and administration as well as disposition of external assets.
5. Dept is considering question of sanctions raised in your ref tel and we feel strongly that agreement on this subject should be obtained before entering upon negotiations with neutrals. Supply sanction is not only one available and we are considering others involving frozen funds, seizure of neutrals’ property in Germany, etc.
6. We suggest that Swedes be tackled first in negotiations, with Swiss second, Spain third and Port fourth. We prefer Washington as situs but should like your views on desirability of holding negotiations in Paris which has advantage of central location and presence of all Allies concerned. However, can adequate housing and other arrangements be made?
Sent to Paris for Angell No. 45 as 5468, rptd to London as 10216, Madrid as 1902, Lisbon as 1816, Bern as 3393 and Stockholm as 2128.
- James W. Angell, United States Representative, Allied Commission on Reparations, and Chairman of the United States delegation, Paris Conference on Reparations.↩
- Not printed; it reported on a discussion between American, British, and French officials concerning possible approaches to the neutral governments on the subject of German external assets within their territory (740.00119 EW/11–1245).↩
- Not printed; this telegram transmitted the text of a British draft note to the neutrals on the German assets problem (740.00119 EW/11–1245).↩
- Telegram 6371 from Paris, not printed.↩
- Inter-Allied Reparations Agency.↩