Office of the Historian

740.00119 EW/12–645: Telegram

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

Paris, December 6, 1945—midnight.
[Received December 8—3:15 a.m.]

7026. From Angell No. 123. Mytel 74.22 Conference recommendation on monetary gold, was amended to include specific reference to Austria, Hungary and Italy in conformity Deptel 54 to me.23 Czech delegate has strong political objection to mentioning Hungary in final act at all, lest there be an implication from association that Hungary is getting some sort of favorable treatment. So far drafting suggestions designed to make clear disadvantageous results for Hungary of participation in pot have not convinced Czechs. They may, however. He does not object to similar inferences of respectability re Italy and Austria.

Yugoslav objection more serious because Soviets apparently have been consulted and have reacted. Yugoslavia asserts that Soviet gold renunciation at Potsdam24 applies only to gold found in pre-Anschluss Germany and hence that ultimate disposition of Hungarian gold found in Austria cannot be prejudged in part by applying pot reduction coefficient to it. Yugoslavia attempted similar argument re Italy, arguing that to bring Italy into pot would prejudge final settlement in which USSR vitally interested. This was successfully countered by argument that Italian gold in Germany is not identifiable and that pot was therefore only available device for determining Italy’s portion, fate of portion thus fixed to await peace. Arguendo, we stated Potsdam renunciation must have been understood to cover all gold found by Allied forces in “Grossdeutsches Reich” including Ostmark.

Since, however, it appears that Yugoslavia cannot recede without Soviet clearance, Waley has suggested to me that Hungarian gold, which is all identifiable by transaction of capture, be reserved in toto. If future developments permit, a portion of Hungarian gold could be distributed to pot participants. He agrees that Austria and Italy must be included because of lack of identifiability re their gold. I believe omission of Hungary could speed settlement here and hence agree with Waley.

Dept instruction desired. [Angell.]

Caffery
  1. See telegram 6755, November 23, 2 p.m., from Paris, p. 1405.↩
  2. See telegram 5534, November 27, 7 p.m., to Paris, p. 1419.↩
  3. See paragraph 10 of section III of the Protocol of Proceedings of the Berlin Conference, Conference of Berlin (Potsdam), vol. ii, p. 1487.↩