740.00119 Control (Germany)/7–2446: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received July 24—3 p.m.]
1785. 1. At 66th meeting Coordinating Committee July 23 a lively interchange took place between General Clay and General Kurotchkin45 who has taken Dratvin’s place at recent meetings, concerning Russian proposal that a better system of listing and safeguarding plants subject to reparation was needed on ground that equipment was missing or stolen from several plants in US and British zones which had been allocated to Soviet Union. Reading from prepared statement Kurotchkin said he raised this question in interest of Western countries as well as Soviet Union. He asserted that certain plants declared available for reparation existed only on paper and that robbery of equipment and its sale to Germans was common. Potsdam and Control Council agreements were thus being violated on two scores: Germany was not being properly demilitarized and reparations deliveries were being circumvented. In US zone ten aviation plants subject to reparations were found to have no equipment whatsoever. Linking these developments with Clay’s decision on cessation of deliveries, Kurotchkin said these facts were part of chain of measures breaking down reparations in Western zones and that world public opinion was unable to understand US action. He proposed control authority should place responsibility on zone commanders for inventorying plants available for reparations and for protecting inventoried property and that measures should be taken to trace stolen equipment in order that immediate return to Soviet Union and Western countries be made.
General Clay explained that as had already been reported to Quadripartite Industry Committee certain plants in US zone were found to have less equipment than originally assumed while others constituting war potential had been destroyed. As to charge of looting he [Page 582] said it was below dignity of US to reply to such accusation. Clay then returned attack by skillfully raising basic issues which Soviet delegate was forced to sidestep. He asked whether Soviet proposal contemplated complete inventory of plants in Russian zone subject to reparations. If Soviets would furnish such list he would too. He asserted that Soviets had advantage of at least knowing that aviation plants in US zone do not produce planes while US had no such knowledge as regards Soviet zone. US is equally interested in Potsdam reparations agreement from two standpoints of German demilitarization and maintenance of level of peacetime industry. Clay said that as regards Western nations he would render account at any time but with respect to Soviets US was no longer living on one-way street. He mentioned that while quadripartite evaluation teams were admitted to US zone inter-Allied Committees on Level of Industry were refused entry into Soviet zone and US had no opportunity to examine plants there. Clay asserted that it was as important for US to know what is left for level of industry as [what?] is taken away for reparations. He was willing to refer Soviet proposal to Economic Directorate but would instruct his representative that inventorying of reparations plants before their declaration of availability or removal must apply to all four zones.
British member pointed out that Soviet paper would be unnecessary if Soviets had accepted US proposal for investigation of economic demilitarization. Beyond stating that Soviet commander will act in full accordance with Potsdam reparations decisions Soviet chairman had no further comments and agreed to reference to Economic Directorate of question of inventorying.
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Repeated Moscow as 193; Brussels as 88 for Dorr.
- Col. Gen. Pavel Alekseevich Kurochkin, Soviet member, Coordinating Committee, Allied Control Council for Germany.↩