Office of the Historian

462.00/R8–3045

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

Berlin, August 30, 1945—10 p.m.
[Received 11 p.m.]

409. At the request of the British representative to the Allied Reparation Commission who is in Berlin en route to Moscow for the meeting of the Commission, scheduled for August 31, General Clay and I met informally with him and the French representative. Waley said that he would like to obtain help and guidance from the Control Council regarding the amount and character of things which are to be removed from Germany under the Potsdam Agreement. Waley also referred to the letter which has now been approved by the Control Council for transmission to the Reparation Commission on the subject of removals.5

Waley submitted the draft of the text of an agreement6 to be proposed to the Government for the creation of an Inter-Allied Reparation Commission to which all countries entitled to receive Reparation from the Western Zones shall be invited to appoint members. According to this draft, the seat of the committee would be at Berlin or at such other place in Germany as it may determine in consultation with the Control Council. Its functions would be:

(a)
To receive from the Control Council lists of the material available for reparations;
(b)
To receive from the countries entitled to reparation, lists of the material which they desire to receive;
(c)
To allocate material between the countries entitled to receive reparation;
(d)
To ensure the equitable application of the plan as between the different countries;
(e)
To perform such other functions as are entrusted to it under the reparation plan.

Clay informed Waley that while personally he saw no objection in principle to such an arrangement, he had no instructions from his Government and could not answer officially. Clay pointed out the material and practical difficulties relating to housing, communications, transport, etc., now prevailing in Berlin and doubted whether suitable accommodations could be made for this additional organization. Waley said that the British view was that this new agency could well sit at Paris or London, but that since its work would be closely related to that of the Control Council close association between the two agencies would be indispensable.

Waley also stated that it was the obligation of the Control Council to inform the Separation Commission regarding what is administratively possible to deliver under the heading of restitution. The French representative Rueff also asked a number of pertinent questions regarding plans for the restitution of agricultural and industrial property. Clay replied that he was without instructions from his Government on the subject of restitution and that as far as he knew there is as yet no approved definition. Clay referred to the formula which has been communicated to him by Ambassador Pauley of which Waley had a copy, but stated that thus far he had received no instructions from his Government. Both French and British representatives said that they urgently desired an expression of opinion regarding deliveries of objects of art, gold, securities, and industrial machinery. Waley felt that this matter should be dealt with in stages and asked whether instructions from the American Government could not be cabled to Ambassador Harriman in time for the forthcoming meeting.

Rueff urged a three-way agreement on the delivery of the captured gold, all of which is stored in the American Zone. Waley emphasized that in the British view only gold identifiable as owned by the claimant could be returned under the heading restitution. The balance would be for division under the law of averages as reparation. He said that he appreciated that the American policy under the goldpot theory differed from the British position.

Rueff also raised the question of a definition of war booty but both the French and the British finally agreed that it would be best to avoid raising the issue during the forthcoming meeting.

Sir Percy Mills7 also raised a firm objection to the recent Russian [Page 1274] proposal to the Control Council for advance delivery of a considerable list of industrial equipment from the Western Zones.8 Clay is requesting the War Department to supply foregoing and I should appreciate the Department’s comments.

Repeated to Moscow as 36. Please inform Ambassador Pauley.

Murphy
  1. See telegram 411, August 31, 1 p.m., from Berlin, infra.↩
  2. Sent to the Department with despatch 885, August 31, from Berlin, not printed.↩
  3. Head of the Economic Division, British Element of the Allied Control Commission for Germany.↩
  4. This proposal had been discussed at the fourth meeting of the Coordinating Committee of the Allied Control Council on August 27 and referred to the Economic Directorate for further study (740.00119 Control (Germany)/8–2945). The list, submitted on August 23, specified 40 plants in which the Soviet Union was interested; copy, designated CORC/P (45)20, transmitted to the Department with despatch 877, September 1, from Berlin, not printed.↩