740.00119 EW/12–845: Telegram
The Acting Secretary of State to the Ambassador in France (Caffery)
Washington, December
17, 1945—7 p.m.
5900. For Angell No. 105. Approval by Dept urtels 15282 and 15683 with following provisos:
- 1.
- Para E—We would prefer writeoff limitation to first A category and then B, or less satisfactory proportionate reduction in A and B. Free choice of writeoffs seems undesirable to Dept but you are authorized to accept if necessary.
- 2.
- Para F—Since reparation account and delivery for industrial equipment 2 years or less and since your para E relates external assets in UN and industrial equipment shares it is essential that accounting for German assets in UN be accomplished pari passu with industrial equipment. That is, if result of para E, a Govt chooses to forego some of plant share, accounting for external assets must prevent excess deliveries of plant. Similarly if the adjustment is in remainder of category A, accounting must be made in time to adjust receipts of remainder.
- 3.
- Dept considers important that provision be made for accounting to IARA and auditing under uniform procedures German assets in UN as mentioned urtel 130 (7075, Dec 8).
- 4.
- Re teletype conference Dec 14, para 8, suggest you consider applying uniform percentage (say 5%) writeoff to cover taxes, liens, unsecured claims, etc. We are concerned that writeoffs may be unreasonably excessive and administration difficult under any other proposal.
- 5.
- Dept assumes shares mentioned urtel 152 are after allowance for share of victims of Nazi persecution.
- 6.
- Deptel 5874 for Angell 102,84 cleared by WSA and Maritime Commission.
- 7.
- Reurtel 156, Dec 16, French proposal on preamble approved though you might consider advisability of adding before word “agreed” the words “of this Protocol and the provisions” to ensure that reparation assets include Russian reciprocal deliveries, war booty and ships not specifically designated as reparation at Potsdam.
Acheson