Foreign Relations of the United States: Diplomatic Papers, 1945, Europe, Volume IV

851.001/8–1745: Telegram

The Ambassador in France (Caffery) to the Secretary of State

Paris, August 17, 1945—5 p.m.
[Received August 17—4:25 p.m.]

4971. Alphand⁸² informed Labouisse⁸³ this morning informally and unofficially that memoranda had been prepared for submission to General de Gaulle covering four groups of “economic” questions which it was possible de Gaulle might wish to take up at Washington. Alphand stated that he did not know as yet whether the General would take up all of these matters.

The matters in question are as follows:

1. The first memorandum deals with France’s territorial interests in Germany:

(a) It contemplates severing the Saar economically from Germany and having it operated as a part of the French customs union,

(b) It contemplates having the left bank of the Rhine together with certain bridgeheads across the Rhine controlled by France for some time to come;

(c) It contemplates international control of the Ruhr by France, Belgium, the Netherlands and the British; and, if they are interested, by the US and the USSR also.

2. The second memorandum deals with reparations and restitution. The French apparently accept the fact that the Potsdam Protocol on this subject⁸⁴ fixes the pattern and that it is now too late for them to change any basic provisions. However, they will be interested in:

(a) Securing a broad definition of “restitution”;

(b) Having arrangements for the distribution of the produce of “German mines” as a first claim on reparations;

(c) Making arrangements whereby French looted property, whether stolen by the Germans or acquired by them or their satellites under color of legal title and whether now situated in the western or eastern zones of Germany, is returned to France;

(d) Some interim arrangement between the US, France and Great Britain for dealing with German assets in western Europe and the neutral countries (see Embassy’s 4962, Aug. 16 in this connection⁸⁵).

3. The third memorandum deals with French reconstruction problems. The French will continue to need substantial American aid but the French Govt has as yet no agreed economic policy for the future. The French apparently feel that their planning is largely dependent upon present and future American trade and financial policies. For example, it is believed the French will want to know whether we will be prepared to negotiate “bilateral” trade and financial agreements; the decree [degree?] to which we will be prepared to reduce tariffs; and what we want to do pursuant to article VII of the Lend-Lease Agreement.⁸⁶

4. The fourth memorandum deals with Indochina (in this connection see Embassy’s 4919, Aug. 14⁸⁵).

Alphand emphasized that the above-mentioned memoranda had not as yet been approved by de Gaulle and that he did not know if they would be presented nor, if presented, in what form. However, in view of fact that Alphand is accompanying de Gaulle to Washington and that Peter, director of economic side of the Ministry of Colonies, is also going, it would appear that the French do intend to stress economic matters and possibly along the lines outlined above.

Caffery

82. Hervé Alphand, French Director of Economic Services.
83. Henry R. Labouisse, Adviser on Economic Affairs, with rank of Minister, at the American Embassy in France.
84. See Report on the Tripartite Conference of Berlin, August 2, 1945, Conference of Berlin (Potsdam), vol. ii, pp. 1499, 1505–1506.
85. Not printed.
86. Signed February 28, 1945. For documentation regarding negotiations between the United States and France, see Foreign Relations, 1944, vol. iii, pp. 748 ff.; for text of agreement, see Department of State Executive Agreement Series No. 455, or 59 Stat. (pt. 2) 1304.
85. Not printed.