462.00R/8–3145

The British Embassy to the Department of State

Aide-Mémoire

As the State Department is aware the Governments of Belgium, Norway, Greece, The Netherlands, Luxembourg, Czechoslovakia, Yugoslavia, Denmark, Egypt, Canada, Australia, New Zealand, South Africa and India have now been invited by His Majesty’s Government in the United Kingdom, the United States Government and the French Provisional Government to submit claims for reparation from the three Western Zones of Germany as provided by the Potsdam Agreement.

It is, therefore, necessary to consider urgently the constitution and function of an Inter-Allied Separation Commission which will be responsible for implementing the Reparation Agreement insofar as the functions concerned are not performed by the Control Council.

Attached is a preliminary paper, which has yet to be submitted for Ministerial approval in London, proposing the establishment of such an Inter-Allied Separation Commission.

His Majesty’s Embassy is instructed to state that this paper by no means represents the final views of His Majesty’s Government and that as no reparation deliveries even of an interim nature can easily be made until machinery exists for handling them it is in their opinion a matter of some urgency to agree on what this machinery should be. They have, therefore, in mind to submit a document along these lines during the forthcoming discussions in Moscow and the purpose of communicating the draft informally to the United States Government (and the French Provisional Government) at the present [Page 1276] time is to enable the latter to send any comments they may wish to their representatives at the Moscow talks.

His Majesty’s Embassy is instructed to draw particular attention to paragraph 6 of the draft. It had originally been the view of His Majesty’s Government that the voting system must ensure that the Controlling Powers have the last word. They are, however, reluctant to propose plural votes for themselves and rather than this at present prefer to propose that each member should have one vote, subject of course to paragraph 6 (2). There remains, however, the danger of one or all of the Controlling Powers, on the basis of a majority vote of such a body, finding themselves bound to some decision which, as Controlling Powers, they would be reluctant to accept. A possible solution would be to insert a new sub-section (3) of paragraph 6 which would provide that, once a reparation plan including percentages had been agreed, the vote should be according to percentages. This should ensure that the Controlling Powers would be in a position to out-vote the others on any question in which a conflict of interest between the Controlling Powers and the other Powers concerned arose. Such an arrangement would appear to be equitable from the point of view of a reparation claimant.

Paragraphs 8 and 11 of the draft are subject to discussion in greater detail with the British representatives on the Control Council.

His Majesty’s Government are in some doubt about the Poles. It could be argued that there is no obligation to recognize a Polish claim to membership as the Poles are only entitled to a fixed percentage of the Russian share. On the other hand the Poles are certainly interested inasmuch as they are due to receive deliveries, under the terms of their agreement with the Soviet Union, from the Western Zones and His Majesty’s Government see no harm in inviting them to be members if they desire.

[Enclosure]

The Governments of the United Kingdom, United States, U.S.S.R. and France are agreed that as soon as a general reparation plan has been accepted by all the Allies concerned it will be necessary to create an inter-Allied Reparation Commission to which all countries entitled under the plan to receive reparation shall be invited to appoint members in order to carry out following functions.

(a)
To ensure equitable applications of the plans as between different countries entitled to reparation in so far as this is not a matter for Control Council to decide.
(b)
To receive from Control Council lists of material available for reparation.
(c)
To receive from countries entitled to reparation lists of material which they desire to receive as reparation.
(d)
To allocate material between countries entitled to receive reparation in accordance with reparation plan.
(e)
To perform such other functions as are entrusted to it under reparation plan.
2.
Governments of United Kingdom, United States, U.S.S.R and France being satisfied that assistance of such a Commission is required at once in advance of general agreement on a reparation plan in order that provisions of article 7 of agreement on reparations reached at Potsdam may be satisfactorily, carried out, have agreed to invite following Governments who have suffered from German aggression and contributed to victory, to take part in Constitution of I.A.E.C. viz., Belgium, Netherlands, Norway, Poland, Luxemburg, Czechoslovakia, Yugoslavia, Greece, Canada, South Africa, Australia, New Zealand and India.
3.
Pending agreement on a general reparations plan, the I.A.E.C. shall
(a)
receive from Control Council lists of material available as advance deliveries in accordance with article 7 of Potsdam Agreement
(b)
receive from Countries entitled to receive reparation lists of material which they desire to receive as reparation.
(c)
allocate material between countries represented on I.A.E.C. taking account of urgency of their needs.
4.
In determining allocation of material available for advance deliveries, the I.A.E.C. will have regard
(a)
to provisions of Article 4 of the Potsdam Agreement
(b)
to any other policies which may be agreed by Allied Commission on Reparations,
(c)
to an equitable distribution which shall not prejudge the proportions which may be laid down at a later date by reparation plan.
5.
The I.A.E.C. shall not be empowered to do anything which might diminish the responsibilities of the Control Council either generally or as laid down in regard to reparation by the Potsdam Agreement.
6.
  • 1) Each member shall be entitled to one vote.
  • 2) The Governments of U.S.S.E. and Poland shall not exercise their votes in matters in which under provisions of the Potsdam Agreement they have no direct interest.
7.
The seat of the committee shall be at Berlin or at such other place in Germany as it may determine, in consultation with the Control Council.
8.
The Control Council and Commanders in Chief in their several zones shall ensure to the Committee, to its members, and to staff committee and to its members (other than German nationals) the following facilities. [Page 1278]
(a)
the free provision at cost of German authorities of local supplies and services and local currency required for their provisioning, maintenance, accommodation and transport,
(b)
their exemption from all German taxation including customs duties,
(c)
their exemption from suit and legal process in any German court,
(d)
the inviolability of their premises to13
(e)
freedom of communication by cypher and otherwise with their respective governments to the same extent as that enjoyed by military missions attached to the Control Council.
9.
The foregoing facilities shall only be granted to any of the personnel specified in paragraph 9 when his name has been notified to the Control Council.
10.
All other facilities which the committee may require in Germany shall be the subject of agreement between it and the Control Council or the Commanders in Chief in their respective zones.
11.
Subject to conditions of paragraph 9, the personnel mentioned therein shall be subject in each zone to the same regulations as apply in that zone to officers of corresponding rank, status and nationality in the service of the organization attached to the Commander in Chief of that zone or the Control Council.
  1. Apparently the word “to” should have been crossed out, as were the rest of the words on this line of the file copy.