Foreign Relations of the United States, Diplomatic Papers, 1945, European Advisory Commission, Austria, Germany, Volume III

740.00119 EW/12–545: Telegram

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

Washington, December 5, 1945—6 p.m.

5681. For Angell No. 68. Dept believes you should strongly oppose Belgium and Netherlands proposals (reurtel Angell 102⁹).

1. Selection of actual plants must be left to ACC on quadripartite basis since they have responsibility for shaping future German economy. Severe restrictions such as outlined in proposals would retard whole reparation program.

2. Proposals put premium on pre-war property claims against Germany as opposed to all others. While quantitatively most important claims such as budgetary costs, destruction, deaths, etc. will be settled by a small percentage, under subject proposal pre-war claims to actual German property would be settled nearly 100 percent. Moral aspect also poor as proposal gives undue weight to pre-war trading and investments with Germany over destitution caused by war.

Byrnes

9. See telegram 6930, December 1, from Paris, p. 1436.