740.00119 EW/12–2445: Telegram
The Ambassador in France (Caffery) to the Secretary of State
[Received December 27—9:10 a.m.]
7338. From Angell No. 177. Negotiation on distribution of shares in last few days of Conference as follows:
Shares as proposed by US, UK and France presented to Conference on December 13 (my telegram from Angell No. 15298) but discussion withheld until December 18 when all delegates other than those of the inviting governments, New Zealand, Canada and South Africa discussed their shares. Serious objections were stated by delegates of Belgium, Albania, Luxembourg and Egypt. Mild protests [Page 1490] were made by delegates of Denmark, Greece, Netherlands, Yugoslavia and other countries. Gutt99 spoke for Belgium and states that share did not adequately represent Belgium’s contribution to the war effort and that it was politically unacceptable to Belgian Parliament as it was too low in relation to shares of Netherlands and France. He protested strongly against entire lack of information on the procedure used for the setting of shares; and demanded, as a minimum a one percent increase in B category. Albania, Egypt and Luxembourg delegates stated that their objections were based upon a lack of real appreciation of their war efforts and that their quotas were only symbolic. The meeting adjourned with a comment by Rueff that the remarks of the various delegates would be taken into consideration in the apportionment of the 3.2% Canadian renunciation.
At subsequent meeting on December 19 the adjusted shares were presented after distribution of Canadian renunciation and a renunciation of 0.8% by South Africa. The distribution was made largely on a proportionate basis. (This distribution not sent to the Department.) The Belgian share was increased only 0.4% in B category as a greater increase not considered justifiable. No changes were made in the A category. At this meeting Gutt was not only obdurate but most unreasonable. His tactics were greatly resented by many of the delegates present. His opposition to the contemplated share distribution, together with support by Albania, Egypt and Luxembourg threatened completely to disrupt the Conference. Most reasonable and effective comments by Yugoslav delegate, likewise by Netherlands delegate, avoided complete breakdown of Conference.
The meeting was adjourned temporarily and delegates of inviting powers and of Yugoslavia met privately with those of Belgium, Luxembourg, Albania, Egypt and Greece. Gutt still remained obdurate and finally US, UK and France each reduced its share in category B by 0.15% so that Belgian share could be increased in total by 0.50% of which 0.10% was released to Luxembourg as promised in Gutt’s previous address to Conference. Additional 0.05% was released by US, UK, and France to make possible increase of Greek share in total by 0.25%. Some adjustment was likewise made in shares of other countries through voluntary reductions in order to provide small increases in shares of those countries which were most dissatisfied. Czechoslovakia and Yugoslavia both contributed to an increase in the Albanian share. Final shares indicated in my telegram from Angell 172, December 22.1 [Angell.]