740.00119 EW/11–145: Telegram
The Secretary of State to the Ambassador in France (Caffery)
5427. No. 18 for Angell. As previously indicated no understanding on restitution for Italy reached at CFM (Deptel 5221, Nov 8, for Angell No. 20) but Brit held that Italy should be treated as United Nation in this and other similar respects. (Urtel 6351, Nov 1, No. 10 from Angell.) Dept prepared to support policy of restitution for Italy and satellite countries with proviso that actual return of identifiable properties to these countries should be effected by the military only after program of restitution to liberated Allied countries well developed. Full share in gold pot for Italy and Hungary concomitant of such policy.
Dept agrees that Austria should participate fully in gold pot and that Albanian claim against pot should be fully admitted. Dept approves proposal that Italian, Hungarian and Austrian shares in pot be set aside for time being probably until final peace settlements are made with these countries.
Potsdam arrangements which provide that USSR will take care of Polands reparation claims not regarded as pertinent to question of whether Poland is to participate in gold pot. Dept regards gold pot as operating on principle of restitution and that Danzig and Poland fully entitled to share therein. Dept’s view is that Potsdam waiver by USSR of claim to gold in Germany does not affect rights of Poland and Danzig in this regard.
You are authorized to agree to inclusion in gold pot of all gold coins found in Germany (urtel 6418, Nov 5, No. 23 from Angell) except for coins of numismatic value which should be restituted directly if possible.
[Page 1404]Gold pot now completely cleared in this Govt as Treas has given final concurrence. Distribution of gold now in pot should proceed immediately after agreement is reached on such distribution. Dept prefers not to await recovery of looted gold from Switzerland and other countries before proceeding with distribution. Please ascertain Brit and French views on this point. Although it might be argued that recovery of Belgian gold is more important than immediate distribution, Dept prefers not to delay for such reason.
You will wish further to consider possible procedures in implementing gold pot. Dept’s view is that allocation of shares in pot is for determination by U.S., Brit and French Govts, not by military authorities. Determination of shares will require presentation of claims by Govts of countries from which Germans looted gold together with proof of such looting. Nature of invitation to submit such claims and method of processing claims should be referred to Dept after being worked out with Brit and French. You may also wish to consider presenting gold pot proposal to IARA meetings with view to obtaining reaction of interested Govts.