740.00119 EW/12–1145: Telegram
The Secretary of State to the Ambassador in France (Caffery)
Washington, December
11, 1945—8 p.m.
5790. For Angell No. 85. Urtel From Angell 130.37
- 1.
- Discussion unclear regarding external assets in individual United Nations exceeding individual B quotas. Do you mean these assets exceed amount which would be derived by applying B percentage to external assets only? Or do you mean these exceed individual share of total amount which would be derived from reciprocal deliveries, external assets, and other non-plant reparation?
- 2.
- Our view is that B pot should not be subdivided. Thus in former case excess holdings external assets should reduce share of reciprocal deliveries, etc. by corresponding amount. Do not reduce plant quota until share of all other assets exhausted.
- 3.
- In latter case excess holdings external assets should reduce share of plant and equipment by corresponding amount. If excess so great as to wipe out plant claim, grant adjustment to permit some plant reparation.
- 4.
- Anxious to avoid situation in which other countries would obtain increased share in non-plant assets other than German assets in United Nations at expense of US. Any offsetting reduction in their share in plant assets would not benefit US since latter in no position to take more than 12 percent of plant assets. US share in all non-plant assets should remain 28 percent. Furthermore, desirable that Belgium, Netherlands and other former occupied and devastated countries cited Para 5 urtel 150 [130] maintain their share plant assets substantially unreduced in order to assist rehabilitation their economies.
Byrnes