Pauley File
President Truman to the United States Representative on the Allied Commission on Reparations (Pauley)84
White House No. 336. Reference your cable August 5th84a about turning over gold captured in Germany to the various liberated European countries, I am informed that the State Department is opposed to asserting any lien on this gold. The State Department apparently is of the opinion that the gold captured in Germany should be distributed pro rata among countries having claim to gold in accordance with proved losses of gold.
I think that in these matters the State Department opinion should prevail.
In view of the fact that the Berlin Conference has set up the Council of Foreign Ministers to handle the matters of major importance which require clearance with the other Allies, and in view of the fact that the fundamentals of agreement on reparations were reached at that conference, I think it would be preferable that, in [Page 1262] the future, you communicate directly with Secretary Byrnes on these matters. I feel that he should handle them directly, in the same way as other matters of foreign policy are treated.
I do remember that our original arrangement was that you report directly to the President. But under existing circumstances I think it would expedite matters and relieve me of considerable work if you would submit matters in the first instance to him.
With kindest regards and sincere appreciation for all the work and efforts you have been exerting.