740.00119 EW/12–1445: Telegram
The Acting Secretary of
State to the Ambassador in France (Caffery)
Washington, December
14, 1945—8 p.m.
5874. For Angell No. 102. The content of following telegram in process of
being cleared with WSA and Maritime Commission and no definitive action
may be taken on subject until their clearance obtained by first of next
week. Since they have had hand in drafting, likelihood is that Admiral
Land60 will clear telegram in present form.
“Prepared to put entire one-third American share German merchant
fleet into IARA subject to following understanding:
- “1. WSA cannot afford risk of failing to retain Europa through arbitration
procedure in event of claims being advanced by other
nations. Accordingly they consider informal agreement on
this point with Brit, French, Dutch and Norwegians
essential.
- “2. In cases where the US Govt believes that American
citizens may have a legal or equitable interest in a
vessel WSA states it should be agreed that such vessel
will be allocated to the US share and similar treatment
accorded to other nations. Similar arrangement reached
in Tripartite negotiations on merchant ship
division.
- “3. Allocation will be in accordance with relative
gross global tonnage losses calculated either on gross
tonnage or d.w.t. basis and not in accordance with
losses by category. Assume Brit not requiring US
commitment that losses in particular categories will be
considered in IARA allocation. Losses should be
calculated on ownership basis, not on flag basis, for an
agreed period and with provision for reconciliation of
data on losses. For purposes of division and calculating
[Page 1470]
losses,
it appears necessary to have two groups of vessels; i.e.
large and small and the dividing line should be at 1600
tons gross.
- “4. Valuation of Tripartite Commission will be
accepted with addition of 15 percent.
- “5. All ships allocated by Tripartite Commission to UK
and US will be put into IARA irrespective of fact
whether or not they were captured or acquired through
capitulation.
- “6. Value of ships allocated will be charged against
plant and equipment quota.
“Very tentative WSA calculations indicate UK and US shares of global
ship losses 45.3 and 20.7 percent respectively on gross tonnage
basis or 45.5 and 21.3 percent respectively on D.W.T. basis. WSA
calculations not confined to ship losses arising out of European
war. Believe agreed figures on ship losses should be worked out by
subcommittee of IARA but WSA considers any attempt to attribute ship
losses to European as distinct from Far Eastern war impossible and
undesirable. However in this connection consideration might be given
to terminating losses on VE-day for purposes of this division.”
