740.00119 EW/11–345
The Ambassador in France (Caffery) to the Secretary of State
[Received November 3—1:54 p.m.]
6369. From Angell. For Dept only. In the discussions of the preparatory conference on the gold distribution question both the UK and France raised the question of the inadequate character of data supplied by the US in regard to identifiability of gold recovered in the American Zone in Germany. Waley said that the treatment given British observers by Colonel Bernstein and associates had been “most discourteous”.
The French representative although not commenting on the character of treatment received by French observers in American Zone confirmed that their observer had been informed that official detailed report of gold holdings had been transmitted to Treasury in Washington.
In view of the fact that I had no gold data other than those already communicated to British and French after being informed by General Clay and Ambassador Murphy that they knew of no other data, I informed both British and French that each of their Govts had received all information available to my own Govt regarding this key question. It was therefore a matter of some embarrassment when the French representative at the end of the meeting gave us a detailed statement previously unknown to my group of the disposition by destinations of Belgian gold (turned over to Germans by French). He said French observer had obtained data on informal basis from Bernstein’s staff and that he understood that it had been transmitted to Washington.
The informational situation on gold is such that it is capable of raising questions of our good faith as well as impairing our ability to anticipate positions to be taken by other govts in this controversial question. As illustration of latter we would have been able to anticipate French position on our “gold pot” thesis had we known that Belgian gold with exception of minute amount was not in lot of gold recovered in Germany.
While the question of responsibility for this situation is one for Dept to determine, it is essential in connection with future course of negotiations here that I receive immediately all present and subsequent information at disposition of Treasury and Bernstein regarding assayers reports, Reichsbank records and other information relevant to gold distribution question. Inasmuch as conference will have to deal with this question I perceive no reason why full information should not be transmitted to representatives all claimants.
Telegraphic reply requested. [Angell.]