740.00119 Council/6–2046: Telegram
The Acting Secretary of State to the Secretary of State, at Paris
2968. Secdel 313. Fol OMGUS message Nr. CC 6920 of June 14 and reply being sent to General Clay reptd for ur info:28
“We have reported on a number of occasions rumors that the Fr are removing machinery from Fr Zone in Ger without regard to reparations agreements. Fr reps have admitted to removal of approx 5000 machine tools to Fr without going through reparations procedure. Information now available to us indicates that these removals are likewise giving no consideration to the agreed level of industry to be left to Ger and in many cases are removals from plants determined essential to minimum Ger economy. It has come to our attention that 228 machines have been removed from firm of Jetter and Scheerer and that 438 additional machines have been requisitioned for removal. This firm is principal manufacturer of surgical instruments in Ger. The continued manufacture of these instruments is permitted in Level of Industry Plan to provide exports from Ger to meet cost of essential imports. Removal of these machines will obviously increase the financial liabilities for all deficit areas in making Ger self supporting. In addition thereto it will directly affect US Zone in Ger since there is no manufacture of surgical instruments in US Zone which must depend on trade with Fr Zone to secure such instruments. In view of this direct violation of our agreements it is our intent here to advise Fr that we propose to discontinue restitution until this problem is mutually and satisfactorily resolved. Realizing repercussions of such a step we would appreciate ur comment soonest.”
“Re ur CC–6920, 14 June. This Govt agrees with serious view which you take regarding unilateral removals from Fr zone and especially those which are contrary to level of industry agreement. However, it does not appear desirable at this time to halt restitution deliveries to Fr. Pls submit by priority cable, repeating to Paris for Secdel, complete data on all removals of which you have knowledge which adversely affect Level of Industry agreement giving source, dates and other details where available. Based upon this information, it is then proposed that protest will be made to Fr at govtal level. In the meantime you should make informal protest to Fr rep Coordinating Committee, pointing out serious view US Govt takes failure to adhere to quadripartite agreements and obligations to non-occupying [Page 571] powers entitled to reparation. Please report reactions French representative in full.
Foregoing does not mean that this Govt would necessarily continue to approve restitution deliveries to Fr if her actions as regards reparation removals continue to violate Level of Industry Agreement.”
Sent to Paris 2968 reptd Brussels for Dorr29 683.