740.00119 EW/9–446: Telegram
The Chargé in the Soviet Union (Durbrow) to the Secretary of State
[Received September 5—6:10 a.m.]
3392. There follows Embassy translation text of Soviet note, dated September 1, signed Dekanosov,61 replying to Embassy’s note of June 18 (Deptel 1105, June 17, 10 a.m., repeated Berlin 1333, Paris 880 [2880] for Secdel 276): [Page 601]
“In connection with the Ambassador’s letter No. 407 of June 18, I am instructed to communicate to you the following:
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“1. The Soviet Government does not object in principle to the proposal of the Government of the US of America that the Allied Control Council in Germany examine the question of a compensation procedure for property withdrawn in Germany on reparations account, in which the United Nations or individual citizens thereof have an interest. The Soviet Government considers at the same time that it is more expedient to examine the proposal in question after the Control Council has decided the basic reparations questions.
“The Soviet Government has more than once directed the attention of the Government of the US of America to the fact that the Control Council, as a result of the position taken by the American and English representatives, has not as yet carried out the decisions of the Berlin conference concerning the specified quantity of plant subject to removal from the western zones of Germany and to transfer to the Soviet Union and to other governments having a right to receive reparations. The decision concerning advance delivery has also not been carried out, since even from the first list of factories, of which the equipment was destined for advance delivery account, the Soviet Union up to the present time has received not more than 3.5–4 percent. At the same time, the American military authorities in Germany have issued a stop order on the dismantling of plant. These measures are in manifest contradiction to the decision of the Berlin conference on reparations.
“Of late, facts have become known to the Soviet Government indicating that the equipment of enterprises destined for dismantling for reparations account is being pilfered by German firms or resold to the latter. Thus, for example, the factories numbered 82, 84, 85, 87, 89, 90, 97 and others destined for dismantling for reparations account, prove to be without equipment, since it was transferred to German firms or pilfered by Germans. Reports are also being received concerning the purchase by foreign firms of stocks in armament factories.
- “2. The Soviet Government is deprived of the possibility of informing the Control Council concerning cases of dismantling of enterprises in the Soviet zone of occupation in which there was foreign capital, because at the time of carrying out the dismantling the Soviet military authorities did not have at their disposition information regarding the presence of foreign interests in given enterprises. The Soviet military authorities in Germany are prepared, however, to examine, as stated above the claims of citizens of the United Nations regarding their property, located in the Soviet zone of occupation, if the necessary evidence is presented attesting the presence of the interest of those citizens in one or more enterprises.
- “3. As regards the proposal for the establishment of the principle of compensation for removed property which belongs to citizens of the United Nations, the Soviet Government has no objection to the examination of the question in the Control Council. The Soviet Government at the same time considers that there ought not to be compensation for citizens of the United Nations having interests in German armament enterprises, the equipment of which might be dismantled for reparation account or destroyed, since such compensation [Page 602] would appear to be an encouragement to the owners who had aided the arming of Germany for aggressive purposes.
- “4. The Soviet Government cannot agree with the declaration that the US of America reserves the right to demand compensation from the recipients of reparations in the name of its citizens for removed property in which these citizens have an important interest. The Soviet Government considers that all claims of citizens of the United Nations in connection with compensation for their property withdrawn from Germany should be directed only against Germany and not against the recipients of reparations.”
Sent Berlin 214, Paris 346 for Secdel.
[On September 6, at Stuttgart, Germany, Secretary of State Byrnes delivered an address restating United States policy on Germany; for text, see Department of State Bulletin, September 15, 1946, page 496.]
- Vladimir Georgyevich Dekanozov, Soviet Deputy Minister for Foreign Affairs.↩