740.00119 EW/11–745: Telegram
The Secretary of State to the Ambassador in France (Caffery)
5401. For Angell No. 32. Dept endorses points 1 and 3 urtel no. 33, Nov 740 but wishes formal agreement to this effect concluded in AGO Germany since these are restitution questions for which ACC is proper forum. Dept also endorses point 2 but formal agreement on disposition of satellite currencies found in Germany should be concluded in quadripartite Allied Reparation Commission since this is matter of German external assets to meet Soviet reparation claims as provided for in Potsdam Agreement.
Agreement reached by you should therefore cover only points 4 and 5 which are properly questions of reparation from western zones. Dept approves these except that point 5 should be modified so that currency issued by uninvaded United Nations shall be regarded as in the nature of German assets in those countries as have recognized reparation claims against Germany and be delivered only to such countries for disposition in accordance with the procedures regarding German assets within their borders. Agreement should require treating currencies of uninvaded United Nations with no recognized reparation claims against Germany same as neutral currencies under point 4 and you should not recede from this position.
Repeated to USPolAd, Berlin as 909.