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

740.00119 Control (Germany)/10–1345

The United States Political Adviser for Germany (Murphy) to the Secretary of State

[Extracts]

Berlin, October 13, 1945—1 p.m.
[Received 1:45 p.m.]

767. The thirteenth meeting of the Coordinating Committee was held on October 12 with General Koeltz presiding.

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The Reparations, Deliveries and Restitution Directorate had, in late September, sent to the Committee an agreed plan⁵⁷ for immediate restitution of “easily identifiable” property on cases of urgent necessity on an interim basis. At the last two meetings, Russian member⁵⁸ had blocked this paper, which the others all support, on the basis that it was under discussion at London.⁵⁹ At this meeting, he claimed that the definitions of “restitution” and of the property involved are not clear, and that there is a question of facility of transport. French member explained at length: (a) that the document only covers restoration of easily identifiable stolen articles; (b) that this is an interim procedure intended only to cover clear cases; (c) that any case where doubt exists would be dealt with later; (d) if any mistake is made there is provision for its correction; and (e) the procedure only covers situations where there are no transport difficulties. He stressed the moral effect of the delay on public opinion in the looted countries. General Sokolovsky stated that Russia had been looted more seriously than other countries, and suggested that French industrialists had helped the German war effort. Since the discussion was obviously fruitless, the matter was referred back to the RD and R Directorate for study with the statement that the French, British and US members agreed to the urgency and importance of the paper.

The Soviet delegate had submitted in August a paper⁶⁰ naming 40 industrial plants in the western zones and requesting that they be turned over to the Soviets as advance reparations. The Economic Directorate subsequently reported that 15 of these plants are now available for advance deliveries and named another 15 plants as also available.⁶¹ No allocation of these plants to any country was suggested in the Directorate’s report. General Clay made it clear that other plants might become available later and agreed to General Sokolovsky’s request that representatives be sent to examine those listed. General Sokolovsky then indicated that he understood that all the listed plants were to go to the USSR under the Potsdam Agreement, arguing (1) that the entire report was based on the Soviet paper; and (2) that only the Soviet is entitled to advance deliveries of reparations under the Potsdam Agreement. The question was raised as to whether the Control Council has the right to make allocations of property as reparations. General Clay stated that while the Council can decide what is available generally he did not think it could make allocations. French and British had the impression that the Reparations Commission should make the allocations but were not certain. General Sokolovsky referred to an earlier meeting for the Council at which he had announced that the Soviet Government consented to the matter being decided by the Council in Berlin in consultation with the Reparation Commission.⁶² On the basis of this statement he apparently believed that the Council could now allocate the factories listed to the Soviets. In view of the confusion and of the seriousness of this matter, the three western members agreed to ask instructions of their governments at once. The Department’s instructions are urgently requested. Does it authorize allocations by the ACC of industrial equipment available for reparation?

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Murphy

57. This document, CORC/P (45) 89, dated September 28, had been presented to the Coordinating Committee with accompanying reservations by the United States and French Delegations on certain points; copy transmitted to the Department with despatch 1069, October 8, from Berlin, neither printed (740.00119–Control (Germany)/10–845).
58. Gen. Vassily Danilovich Sokolovsky.
59. For discussion on restitution at the Council of Foreign Ministers in London, see vol. ii, entries in index under Council of Foreign Ministers: Reparations from Germany.
60. See footnote 8, p. 1274.
61. List of these plants contained in CORC/P (45) 100; copy transmitted to the Department with despatch 1155, October 18, from Berlin, neither printed.
62. Meeting referred to is the sixth meeting of the Allied Control Council; see telegram 569, September 20, 10 p.m., from Berlin, p. 836, especially the last paragraph.