Foreign Relations of the United States: Diplomatic Papers, 1945, European Advisory Commission, Austria, Germany, Volume III

740.00119 Council/10–245

The Ambassador in the United Kingdom (Winant) to the Acting Secretary of State

London, October 2, 1945.
[Received October 2—7:40 p.m.]

10246. Delsec 95. At 1 October meeting of IARA (Inter-Allied Reparations Agency) organizing committee the following two notes and accompanying memorandum to Governments with potential claims to German reparations were agreed subject to the approval of the Department and with respect to IAEA facilities in Germany of General Clay.

Note No. I

The Governments of the French Republic, the United Kingdom of Great Britain and Northern Ireland and the United States of America are informed that the Control Council in Germany are likely in the near future to determine that certain capital industrial equipment in the western zones of Germany will be available for advance deliveries in accordance with paragraph 7 of the agreement on reparation reached at the Potsdam Conference. It is understood that the equipment available is likely to consist mainly of plants of the metal and chemical industries and of machine tools and similar equipment.

The Three Governments would be glad to know whether the blank Government desires to put forward a request to receive any type of such plant or equipment or any individual plants by way of advance deliveries or otherwise and to state to which of their needs they attach most importance and urgency. It is of course to be understood that the share of any Government which does not put forward any request for advance deliveries will not be prejudiced when the time comes for allocating capital industrial equipment available for reparations in accordance with paragraph 6 of the agreement on reparations reached at the Potsdam Conference. The Three Governments will bear in mind all requests received but can of course give no assurance that it will be possible to make plant and equipment availability by way of advance deliveries or otherwise.

Note No. II

The Provisional Government of France and the Governments of the United Kingdom of Great Britain and Northern Ireland and the United States of America have invited the Government of blank to supply by October 1, 1945, data relating to the reparation claim of the Government of blank against Germany and the value of prewar German assets situated in its territory.

(2) The Three Governments now invite the Governments of blank to appoint a representative to a meeting of officials to be held in London on November 7, 1945 to consider the data supplied by the governments concerned and to prepare the way for an Inter-Governmental Agreement on the allocation of reparation receipts as between these governments.

(3) The Three Governments further suggest that this conference of officials should make recommendations to their Governments in regard to the appointment of an Inter-Allied Reparation Agency. A memorandum on this subject is enclosed which might form the basis of discussion. The Three Governments consider that the agency should if possible start its work by December 1st, 1945.

Memorandum Relating to Inter-Allied Reparation Agency

(1) The Governments of the French Republic, the United Kingdom of Great Britain and Northern Ireland and the United States of America propose the establishment of an Inter-Allied Reparation Agency (hereinafter referred to as The Agency) to which the countries entitled to reparations from Germany other than the USSR and Poland shall be invited to appoint members. It will be recollected that the share of those two countries has been otherwise dealt with.

(2) The functions of The Agency will be:

(a) To receive from the Control Council in Germany lists (with valuation) of the industrial capital equipment available to member Governments for reparation under Articles 6 and 7 of Section IV of the Potsdam Protocol.⁹⁷

(b) To receive from the Member Governments lists of the industrial capital equipment from the western zones which they desire to receive as reparations under the above mentioned Articles 6 and 7.

(c) To allocate material between the Member Governments,

(d) To ensure the equitable application of the plan as between the different Member Governments insofar as this is not a matter for the Control Council to decide,

(e) To perform such other functions as are entrusted to it in regard to the allocation of reparation.

(3) The President and Secretary General of The Agency and the Chairman of the Committee of Five referred to below will be appointed by the Governments of the UK, USA, and France.

(4) The Secretariat General will draw up programmes for the allocation of material between the member countries taking into account their respective needs and will submit their programmes to The Agency. In case two or more countries desire to receive the same material the matter will be referred to a Committee of Five of which the delegations to The Agency representing the Governments of the UK, the USA and France shall be permanent members. The other two members shall hold office in rotation for a period of 2 months and shall be the delegates of the other Member Governments chosen in the alphabetical order of the names of the countries concerned in the French language. The decisions of the Committee of Five shall be final, each member having one vote.

(5) On all questions other than those referred to in the preceding paragraph and in paragraph 7 the Committee will decide by vote, each delegate being entitled to one vote.

(6) The question of fixing the seat of The Agency in Brussels is under discussion with the Belgian Government. The Agency will also have an office at such place or places in Germany as may be agreed with the Control Council.

(7) Each Member Government will meet the expenses of its own delegation. The common expenses of The Agency [other than those met by the German Government in accordance with]⁹⁸ paragraph 8 below will be borne by the Member Governments in proportion to their shares in German reparations. The annual budget of The Agency will be subject to the approval of The Agency and for this purpose the voting power of each Member Government will be in proportion to its share in German reparations.

(8)

(i) The Control Council and the Commanders in Chief in their several zones will be requested to ensure to The Agency to its members and to the staff of The Agency and of its members (other than German nationals and other persons recruited locally) the following facilities:

(a) The free provision at the cost of the German authorities of such local services and local currency as may be required in Germany for their accommodation and transport and approved by the zone commander concerned.

(b) Their exemption from all German taxation including customs duties;

(c) Their exemption from exchange restrictions and from suit and legal process in any German court;

(d) The inviolability of their premises and their archives subject to the right of search where a crime has been committed under Military Government law.

(e) Appropriate freedom of communication by cypher and otherwise with their respective Governments to the same extent as that enjoyed by Military Missions attached to the Control Council.

(ii) The above facilities shall only be granted to any of the personnel specified in this paragraph when his name has been notified to the Control Council.

(9) All other facilities which the Agency may require in Germany shall be the subject of agreement between it and the Control Council or the Commander in Chief in their respective zones.

10. Subject to the provisions of paragraph 8 the personnel mentioned therein shall be subject in each zone to the same regulations as apply in that zone to officers of corresponding rank, status and nationality in the service of or attached to the Commander in Chief of that zone or the Control Council. (End text.)

Foregoing to be transmitted to claimant governments simultaneously through Missions in Washington, London and Paris. It is desired to present notes soon as possible. Please instruct if that satisfactory.

Winant

97. Reference is actually to section IV of the Report on the Tripartite Conference of Berlin; see Conference of Berlin (Potsdam), vol. ii, p. 1506.
98. These words, which were in the final text of the memorandum, had presumably been omitted from this telegram through a garble.