740.00119 E.W./9–1845

The Chargé in the Soviet Union (Kennan) to the Secretary of State

3303. Translation of text of letter dated Sept 16 from Soviet Foreign Office:

“Acknowledging Mr. Harriman’s letter of Sept. 7,44 on the question of reparations, the Soviet Government expresses its readiness to approach the United States Government concerning those proposals which correspond with the decisions taken at the Berlin Three-Power [Page 1295] Conference and may hasten the fulfillment of those decisions. At the same time, the Soviet Government regards it as its duty to declare that it cannot agree with those proposals of the United States Government which conflict with the decisions of the Berlin Conference. Thus, the Soviet Government takes the position that a change in the decisions taken at the Berlin Conference cannot be effected unilaterally by any given government. These changes may be effected only by joint decisions of the three governments which took part in the Berlin Conference.

Proceeding to concrete questions, the Soviet Government considers it necessary to point out the following considerations:

1. The Soviet Government does not object to the proposal of the United States Government that further meetings of the Allied Separations Commission should be transferred from Moscow to Berlin.

2. Likewise, the Soviet Government agrees that the Allied Reparations Commission should work in Berlin in close contact with the Control Council. It stands to reason that the decisions about the amount and character of industrial equipment, subject to reparations, must be taken by the Control Council, as provided for in paragraph 6 of the decisions of the Berlin Conference on Reparations from Germany.

Moreover, the Soviet Government considers that for obtaining the fulfillment of the decisions adopted by the Conference on the question of reparations, a date should be established for acceptance of the final plan of reparations by the Control Council earlier than Feb. 1, 1946, as proposed in your letter.

3. The Soviet Govt recalls that in accordance with proposals of the American Delegation, the Berlin Conference established a different procedure for collecting reparations in the Eastern (Soviet) Zone and in the Western Zones. In the Eastern Zone this problem has been charged to the Soviet authorities and in the Western Zones to the Allied authorities. Evidently, however, in the Eastern as well as in the Western Zones, as was decided at the Berlin Conference, a common policy of the Allies must be carried out in relation to reparations from Germany as a whole, taking into account the necessity of maintaining in Germany an average standard of living, not exceeding the average standard of European countries.

In order to accomplish the above, the Soviet Govt will supply the Control Council and the Allied Reparations Commission with the necessary information on the presence of equipment which has been left in the Soviet Zone of occupation and will also give mixed commissions of specialists the opportunity to become familiar with this equipment on the spot.

It follows, however, from the preceding, that there is no necessity for drawing up a single plan of reparations collections for all four zones, as is mentioned in your letter. The Berlin Conference not only did not contemplate the drawing up of such a four-zone plan (it accepted the principle proposed by the American Delegation of collection of reparations by zones—an Eastern Zone and Western Zones), but established one procedure of reparations collections in the Eastern Zone and another in the Western Zones.

4. Regarding the proposals of the British Govt concerning the creation of a small, new inter-Allied agency, which, as you state, is [Page 1296] also supported by the US Govt, the Soviet Govt considers it necessary to state that, in its opinion, this question is the decision of the appropriate interested Govts, mentioned in paragraph 3 of the decisions [of] the Berlin Conference on Reparations from Germany, noting for its part, moreover, that the creation of such a new agency was not provided for at the Berlin Conference. Indeed, the question of distribution of reparations between the Soviet Union and Poland on the one hand, and between the United States, Great Britain and other countries having the right to reparations on the other, in the opinion of the Soviet Union, should be left to the decision of the Control Council, in the order established by paragraph 6 of the Berlin decision on reparations.

5. Regarding the proposal of the United States Government as to the order of disposition of German external assets, the Soviet Government has no objection to your proposal insofar as it affects the Soviet Union.

6. Finally, the Soviet Union considered it necessary to hasten a decision of the question of advance deliveries of equipment to account of reparations, which was provided for as a special item (paragraph 7) of the decisions of the Berlin Conference.

In view of the foregoing, the Soviet Government has given instructions that at the Council of Ministers of Foreign Affairs in London the following proposals be presented:

1.
To transfer the Allied Reparations Commission from Moscow to Berlin for the purpose of hastening the fulfillment of the decisions of the Berlin Three-Power Conference on Reparations from Germany.
2.
To commission the Control Council in Berlin, in close contact with the Allied Reparations Commission to define not later than December 1, 1945 the amount and character of industrial capital equipment subject to removal from the Western Zones of Germany to the account of reparations and also to approve the list of enterprises the equipment of which should be transferred to the Soviet Union in fulfillment of paragraph 4 of the decisions of the Berlin Conference on Reparations from Germany.
3.
To commission the Control Council not later than October 15 to approve the list of enterprises, the equipment of which should be transferred as advance deliveries, in accordance with paragraph 7 of the decisions of the Berlin Conference, so that the exportation of that equipment may be begun not later than January 1.
4.
To propose without delay to the Control Council to send to the Western Zones of Germany a mixed commission of specialists for the preparation of materials needed by the Control Council for the purpose of executing the measures set forth in points 2 and 3 above.

Accept, Mr. Chargé d’Affaires, my assurances of high esteem.” A. Y. Vyshinski.

Sent to Department; repeated to Berlin for Reparation Commission as 88 and to London for Ambassador Harriman as 462.

Kennan
  1. See telegram 3212, September 8, 6 p.m., from Moscow, p. 1285.