The United States Political Adviser for Germany ( Murphy ) to the Secretary of State

1200. Reference OMGUS cable CC–19760 dated 3 December 194563 from Clay concerning modification of JCS 1067 and also Department’s [Page 1573] cable 855, November 13, 1945, 8 p.m.64 stating that Department continues to support article 47 concerning complete or partial servicing of German internal debt.

Matter of internal debt was brought up in Finance Directorate and an informal discussion developed in which the British supported complete servicing of the debt, the French a partial servicing of the debt, and the Russian and American representatives a complete repudiation. I believe that we should avoid any modification of article 47 which would allow American representatives to support a complete repudiation of the internal debt.65

  1. Not printed; it registered General Clay’s opposition to major revisions of JCS 1067.
  2. Not printed; for summary, see footnote 35, p. 1562.
  3. Telegram 1143, December 27, 6 p.m., to Berlin, informed Mr. Murphy that the War Department had been apprised of his opinions and that the State Department had requested from the War Department “a reasoned statement of the case for total repudiation including evaluation of consequences for banking, insurance, and other institutions holding large portion of assets in form of government debt.” (862.51/12–745)