740.00119 EW/12–1245: Telegram

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

7136. From Angell No. 142. Draft final act being cleared among British, French and ourselves for presentation to heads of delegations meeting tomorrow morning. French and British consider that IARA (Inter-Allied Reparations Agency) charter and understanding regarding division of shares should be cast in some form known to international law for binding inter-governmental undertakings. This raises an internal question regarding manner in which US will signify its adherence to results of this conference. Department will recall that in mytel 4341 I suggested that Repmem principles advocated by me for unanimous conference agreement be cast in form of recommendations, in manner of usual treatment of similar matters in conferences with other American Republics. Deptstel 36 to me42 approved this suggestion. In view of British and French position on shares and IARA and because of important relationships between section on apportionment of shares and the recommendations I have [Page 1456] introduced and supported, I recommend that I be authorized to agree to a final act organized as follows:

1.
Final act to open with a conference recommendation reading “the Paris Conference on Reparation recommends that the Governments represented at the Conference conclude the agreement on reparation from Germany, on the establishment of an inter-Allied reparation agency and on the restitution of monetary gold, which is set forth below”.
2.
Preamble of Agreement referred to reads:

“The Governments of blank, in order to implement the protocol on German reparation between the Governments of the United Kingdom of Great Britain and Northern Ireland, the Union of Soviet Socialist Republics and the United States of America, signed at Potsdam on Aug 1, 1945,43 in order to obtain an equitable division among themselves of the total assets available to them as reparation from Germany (hereinafter referred to as German reparation), and to settle an equitable procedure for the restitution of monetary gold, in order to establish an inter-Allied reparation agency, have agreed as follows:”

3.
Under the heading of “Reparation From Germany” the agreement would contain material on division of shares and the various unanimously agreed papers along lines my Repmem instructions,44 as amended and modified with Dept approval.
4.
IARA charter and gold pot sections respectively would follow.
5.
The penultimate section would read: “This agreement shall come into force as soon as it has been signed by Governments collectively entitled to not less than 50 percent of the aggregate of shares in category ‘A’ (all forms of reparation other than plant removals and ships) of German reparation.”
6.
Document would be concluded by signature clause reading: “The signature of each contracting Government shall, for the purposes of the present agreement, be deemed to cover its colonies, overseas territories and territories under its protection, or sovereignty, or mandate.
In witness whereof, the undersigned, duly authorized by their respective Governments, have signed the present agreement, prepared in English and French, the two texts being equally authentic, in a single copy, which shall be preserved in the archives of the Government of the French Republic.”

I would sign only conference recommendation quoted paragraph 1. After appropriate Washington action, Dept would instruct Ambassador here to sign 6 and formally bind US. I have put this matter to Dept because I believe it had hithertofore been assumed in Dept that my actions here would require no more by way of implementation in US than have the recommendations of various inter-American conferences. Final act now under consideration calls for additional US action, such as that for executive agreements, to bring it into force. Please instruct with greatest urgency. [Angell.]

Caffery
  1. Reference is to telegram 6555, November 12, 8 p.m., from Paris, not printed.
  2. Department’s telegram 5348, November 16, 8 p.m., to Paris; for an extract, see p. 1389.
  3. Conference of Berlin (Potsdam), vol. ii, p. 1485.
  4. None printed.