Foreign Relations of the United States: Diplomatic Papers, 1945, European Advisory Commission, Austria, Germany, Volume III

740.00119 E.W./9–2445

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

Washington, September 24, 1945—7 p.m.

535. Reference is made to Deptels 412,⁷⁴ 430⁷⁵ and Embtel 88⁷⁶ from Moscow. Following is for info and for communication to Clay. Secretary states that USSR asked at first session Council Foreign Ministers (CFM) to discuss German reparations, submitting memorandum⁷⁷ as follows:

(a) Whereas no practical steps have yet been taken to implement decision of Potsdam on German reparations and particularly advance deliveries;

(b) Therefore CFM should fix definite schedule for determination by Control Council of equipment removable from three western zones (not later than December 1); advance deliveries (not later than Oct 15); actual export of equipment eligible as advance deliveries (not later than Nov 1) (FonOff letter to Moscow Embassy⁷⁸ states Jan 1);

(c) CFM should ask Control Council to approve list of enterprises, equipment of which to be made available to USSR as its 25 per cent of deliveries from Western Germany;

(d) CFM should ask Control Council to dispatch immediately to western zones mixed commissions of specialists to prepare material required by Control Council in carrying out determination of advance deliveries and final amount and character.

(e) USSR is willing to have Separation Commission move to Berlin.

Secretary stated he did not want to discuss German reparation at present sessions CFM, but agreed that determination of amount and character of removals should be expedited. He stated he would issue instructions that this be done. Accordingly, Dept has asked War Dept to instruct US Group CC to proceed urgently with compilation of lists advance deliveries and to make every effort to expedite final determination. War Dept instruction asks US Group CC to select plants specially constructed for and devoted by Germans during hostilities entirely to production of arms, ammunition, implements of war, aircraft (and air engines) and sea-going ships as first list of equipment eligible for advance deliveries and to follow this by further lists from metals, chemicals, machinery and other industries directly required for making war, as these can be eliminated from industries required for minimum peacetime economy. Dept suggests that date of final determination may lose importance if Control Council issues successive and full lists of equipment eligible for advance deliveries during October and November.

You will note in Embtel 88 of Sept 18 that Soviet Govt is also agreeable to supplying Control Council and Reparation Commission with information on presence of equipment left in Soviet zone of occupation and will also give mixed commissions of specialists opportunity to become familiar with this equipment on spot. Dept suggests that since Reparation Commission’s reconvention in Berlin must wait until deputy to Ambassador Pauley is chosen and sent to Berlin (probably end of October), US element in Control Council receive information from Soviet as offered.

Dept’s views on mixed commissions, now that Soviet Govt agrees to their dispatch east as well as west, is that General Clay should press in Control Council for their early constitution and dispatch, possibly one for each zone. Consideration should be given in Control Council to inclusion of specialists from countries claiming reparations but not occupying powers on commissions, possibly two different countries being represented along with four occupying powers on each commission, making eight countries on four commissions. Country representation can be arranged in Control Council. Dept and Murphy will invite named govts to supply specialists to commission to visit US zone.

Sole remaining point of disagreement between USSR position and that of Dept is in allocation machinery for filling Soviet 25 percent share in reparations from Western Germany. Soviet originally asked that initial allocation be made by Reparations Commission, 25 per cent to USSR, 75 per cent to all others. Reply to Aide-Mémoire in Embtel 88 from Moscow states USSR wants Control Council to make original 25 per cent–75 per cent allocation. Dept feels strongly USSR should join Inter-Allied Reparation Agency for allocating with all other claimants and should not have favored position resulting from initial allocation between Soviet and all others. Point will doubtless be taken up with Brit and Fr reps in London, in discussion of organization of IARA. Meanwhile Dept feels that Control Council should not act on Soviet submission of list of plants desired as advance deliveries in so far as allocation of these plants to USSR is concerned. Dept repeats request for reporting of list by you to Dept and to London.⁷⁹

Sent to USPolAd, Berlin as 535, repeated to London as 8388, Paris as 4472, Moscow as 2052.

Acheson

74. Same as telegram 1964, September 6, 7 p.m., to Moscow, p. 1283.
75. Telegram 430, September 10, 5 p.m., to Berlin, was a repeat of telegram 7761 to London, summarizing the discussions which had already taken place concerning the respective roles of the Allied Commission on Reparations and the Allied Control Council in the formulation of the German reparations plan (740.00119–Council/9–1045).
76. Same as telegram 3303, September 18, 1 p.m., from Moscow, p. 1294.
77. For text of the Soviet memorandum, September 14, see C.F.M. (45) 15, vol. ii, p. 158.
78. See telegram 3303, September 18, 1 p.m., from Moscow, p. 1294.
79. Telegram 619, September 25, 11 p.m., from Berlin, reported that additional copies of the lists had been forwarded; see footnote 8, p. 1274.