740.00119 EW/11–1445: Telegram
The Secretary of State to the Ambassador in France (Caffery)
5312. For Angell No. 26. In teletype conversation Nov 12 Clay and Murphy requested permission War and State Depts to allocate to USSR 50% by value of plants on first list of advance deliveries. Dept stated it had no objection to allocation 50% of list by value in principle, provided that no allocation of specific plants on list was made until comments of countries possibly entitled to claim reparations from western zones on this list had been received. These comments due Nov 14 in response to telegraphic from Murphy, and were requested in form of cable to Murphy, copy to Angell.
Clay is prepared to hold up allocation of specific plants including Fischer Ball Bearing plant at Schweinfurt and ship building plant at Bremen until Nov 15. If you receive expression of interest in plants on first list which you know or suspect has not been communicated to Murphy for Clay, please advise Murphy for Clay of this interest prior midnight Nov 14.
Clay has suggested that over-all division between USSR and western claimants should be based not on conflicting claims to specific plants but on equitable division industry by industry. Dept has asked him delay formulating proposal of this character until it is learned whether both USSR and western claimants desire cross section of reparation removals, on theory it is possible in certain industries no conflict will arise.
Clay is bearing in mind needs and desires western claimants. At earliest date possible to advise him firmly these needs and desires, suggest you communicate with him on this problem.
Sent to Paris, repeated to Berlin as 868.