740.00119 EW/12–2645
The Ambassador in France (Caffery) to the Secretary of State
[Received December 27—6:24 a.m.]
7352. From Angell No. 184. Purpose of this telegram to explain final text on shipping adopted by Paris Conference, which will be cabled to you in Final Act in day or two. It was not possible in short time available to reach agreement on all points in urtel for Angell No. 102, Dec 14,2 in part because of lack of instructions for other delegates. Our objective was therefore to settle in Final Act as many problems as could be agreed upon and not to prejudge settlement of other problems by special IARA Shipping Committee. Task made difficult by fact that certain WSA conditions urtel No. 102 would have required substantial revision of shipping provisions tentatively adopted 2 weeks before by Paris Conference subject to US reservation concerning priority in choice of ships held by it.
Was unable to obtain agreement to inclusion of following additional provisions in ship section of text finally adopted:
“(A) Any German merchant ship in which a signatory govt and its nationals have a substantial legal or equitable interest shall be allocated to such govt, if it so desires; (B) If the allocation between competing claimants is not determined by paragraph (A), account shall be taken of the quality and character of the tonnage lost and of the special needs of the various claimant countries.”
Norwegian objected to paragraph (A) on ground that it would not favor Norway obtaining whaler it desires and that financial interest criterion should be subordinated to paragraph (B) criterion. British would accept paragraph (A) only on condition that they receive whaler units.
Norwegian firmly insisted on criteria in paragraph (B) which Conference had tentatively adopted subject to above noted US reservation. Believe paragraph (B) constitutes an equitable and desirable principle, and indicated personal willingness to support it if subordinate to paragraph (A) criterion. Since US could not accept this paragraph without paragraph (A), however, it was necessary to omit both paragraphs from Final Act and defer settlement of allocation criteria to meeting of IARA Shipping Committee. Norwegian delegate stated for record at final meeting heads of delegations that he would sign Final Act with expectation that IARA Shipping Committee would adopt paragraph (B) criterion of allocation. Urge Dept to work out with WSA acceptable IARA allocation principle which would give fullest possible effect to para (B) criterion consistent [Page 1492] with importance attached by Dept & WSA to criterion of legal or equitable interest.
In addition, IAEA Shipping Committee will also be required to handle following problems on which agreement could not be reached in Paris Conference in time available:
- 1.
- Determination of losses on flag or ownership basis. British insist on flag basis, US and Norwegians insist on ownership basis. Norwegians question whether shareholding by nationals of one country in corporation whose ships fly flag of another country should somehow entitle former country to count losses of such ships in its own losses.
- 2.
- British, Norwegians, Dutch, Yugoslavs, Belgians and French objected strenuously to notion that shipping losses in Far Eastern war should be considered as basis for reparation from Germany and made statements for minutes of Paris Conference to this effect.
British willingness to accept paragraph 5 Deptel for Angell No. 102 only on condition that genuine prizes taken during war are excluded, as not being “allocated by Tripartite Commission” (my teletype conversation December 183), does not appear to be acceptable to WSA (Dept teletype conversation Dec 183). Consequently believe this question has not been definitely decided and must come before IARA Shipping Committee later.
Have already advised Dept concerning Europa (mytel from Angell No. 1734). [Angell.]