Foreign Relations of the United States, 1946, The British Commonwealth, Western and Central Europe, Volume V

740.00119 Council/8–2446: Telegram

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

secret

Paris, August 24, 1946—5 p.m.
[Received August 24—4:20 p.m.]

4219. DelSec 854. Clay reported to Secretary informal approach by Sokolovsky, as well as at lower level, concerning possible addition current production schedule to German reparations program. While level of industry concept would be maintained, dismantling would be postponed, perhaps as much as 10 years, and current production from such plants taken as reparations. Smith reports such suggestion consistent with Russian indigestion of capital goods obtained as war booty and reparations and great need for current production items. British have heard of this Berlin conversation and have been assured here that the suggestion involved a major modification of Potsdam and could only be considered at CFM level.

Sent Dept as 4219; repeated London as 641 and Berlin as 316.

Caffery