740.00119 EW/11–1145: Telegram

The Secretary of State to the Ambassador in France (Caffery)

5426. No. 34 for Angell. Urtel 6543, Nov 11, No. 42 from Angell.

1.
Italy Italian gold valued about $25 million found in northern Italy is now in Allied custody at Rome. Gold has not been included in pot.
Re French “conditions”
(1)
Dept opposed to inclusion in pot of all Italian gold wherever located. Dept does not regard $25 million of Italian gold uncovered in northern Italy as properly belonging in pot since this gold never removed from Italy by Germans.
(2)
Dept does not understand nature of French claim against Italy for 15 tons of gold. Please request Rueff for more info on this. Was gold actually paid to suppliers of war material to Italy? From what country was such material delivered?
(3)
Dept willing to make three-power approach to Swiss concerning Belgian gold received by Swiss after United Nations declaration of Jan 5, 1945 [1943]42 and is canvassing procedures that might be followed.
Dept is willing to have immediate Italian participation in pot. Dept will not, however, oppose French insistence that restitution to Italy of Italian share in pot be deferred until peace settlement.
2.
Austria Dept believes Austria should participate in pot. U.S. policy is not to recognize any acquisition of Austrian property by Germany since Anschluss. View is that United Nations declaration of Jan 5, 1943 regarding forced transfers of property to which French National Committee was party covers German post-Anschluss acquisitions in Austria. Reestablishment of Austrian independence [Page 1403] should be under as favorable conditions as possible. Recovery by Austria of part of gold taken by Germans would contribute to creation of such conditions.
3.
Hungary Dept’s view is that Hungary should participate in pot and that disposition of Hungarian share be held in abeyance until peace settlement. For bargaining purposes only you may take position that whole amount Hungarian gold should be kept out of pot, if French prove reluctant to permit Hungarian participation.
4.
Albania Dept agrees Albanian gold should be restored in full by Italy. Dept views this as similar to Belgian claim against French for Bank of Belgium gold delivered to Germans. On basis of present info Dept fails to appreciate French 15 ton claim as similar.
Byrnes
  1. See footnote 14, p. 1379.