740.00119 Control (Germany)/11–1945: Telegram

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


1049. 1. The 21st meeting of the Coordinating Committee, Russian member presiding today disposed of a long agenda expeditiously and smoothly.

2. On first point respecting advance deliveries on account of reparations, US member stated he was authorized to accept Soviet reservation claiming 50% of such deliveries of plants from the Western Zones. As regards the three plants originally allocated to Soviets, [Page 1391] US withdrew Bayerische Motorenwerke factory at Munich, since French had protested it contained large number of tools stolen from France by force. A second plant was withdrawn because it was not on Soviet list of claims. In place of these two factories US offered to the Soviets 50% of ballbearing works at Schweinfurt and 75% of shipyard at Bremen. General Clay stressed that these offers would be contained in 25% ultimate total available to the Russians in reparations. He pointed out that US has filed no claims against the first list for advance reparations, except for certain parts of the dye works at Ludwigshafen.

Soviet member thanked General Clay for his statement.

British member expressed sympathy with Soviet position, stating however, that his Government would like to examine bids received before final decision. He considered that if the demands from other countries were reasonable the latter should not object to 50% allocation to Russians on advance deliveries. British member insisted that any allocation in excess of 25% should, however, be adjusted in future allocations. He asked for opportunity to examine General Clay’s proposal in greater detail.

French member agreed essentially with British position but stated he must reserve final approval until Coordinating Committee made known its decision regarding looted property.

General Clay then stated that if French took this position he must reserve his decision on looted property as long as French reserved their position on the establishment of central administration for Germany. French member let this remark pass. General Clay then stated he had a declaration to make for the record, namely, that US had made clear its understanding for the interests of other countries by not claiming any reparations until the claims of other countries were satisfied.

Coordinating Committee agreed to put question of advance deliveries on agenda of next meeting of Control Council.

At a later point in the discussion, Coordinating Committee decided to permit the Economics Directorate to notify interested countries through diplomatic channels as soon as particular plants became available for advance delivery, without waiting to include therein composite lists. On British proposal Economics Directorate will also be requested to present recommendations concerning advance deliveries as between Soviet Union and the western nations. French member announced that he had received the claims from the Belgian and Dutch Governments, the former having submitted its total demands for advance deliveries.

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4. On the subject of restitution of looted property, (see my 984, November 10, 10 a.m.31) French member referred to gesture by his Government in renouncing priority of restitution over reparations and objected that on the subject of identifiable looted objects, Soviet compromise proposal spoke of compensation and US proposal only provided for restitution of such objects in very rare cases. French member submitted new paper, summary of which will be sent in separate telegram,32 which will be considered at next meeting of Coordinating Committee.

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  1. Not printed; in this telegram Mr. Murphy reported that the Coordinating Committee had agreed at its nineteenth meeting on November 6 on the text of a message to be transmitted on behalf of the Allied Control Council to the interested United Nations inviting them to submit to the zonal commanders lists of materials to which claims for restitution were to be made (740.00119 EW/11–1045).
  2. Telegram 1050, November 17, 9 p.m., from Berlin, summarized the French request for despatch to France of materials from Germany needed for industrial recovery (740.00119 EW/11–1745).