740.00119 Control (Germany)/10–2546: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received 11:40 p.m.]
2454. My despatch 7210, October 1.87 Protracted discussion has taken place in 84th and 85th meetings Coordinating Committee regarding reparations progress report. In last meeting October 24 Soviet member considered report unsatisfactory since agreed lists of plants had not yet been presented for allocation. He proposed (1) [Page 631] all plants declared available be immediately allocated between USSR and IARA without prior notification; (2) Economic Directorate be instructed to allocate all evaluated plants and allocation be made at least twice month as evaluations proceed; (3) evaluation of all plants declared available be accelerated and report of evaluated plants be made by Economic Directorate every 2 weeks so that allocations could be made. With respect to (1) United States member suggested substitution of phrase “48 hours after economic unification” instead of “immediately”. In response to French complaint that delays had left IARA with little work to do, Clay pointed out French had submitted reservations against many evaluated plants. He was willing to proceed with any list of plants against which no reservations had been made but he insisted that plants be classified industry by industry since it was essential to know which plants would leave Germany for reparations and which would be left for peacetime economy. The only exception from this rule would comprise general equipment in war plants which he had already suggested be made available in bulk. British member could not agree to allocation prior to evaluation and he maintained his reservation that British administration might have to retain certain plants to make good deficit to zone resulting from failure to apply economic unity. Soviet member observed that Clay was still pursuing his “illegal policy” in stopping reparations which were part of question of economic unity. He said allocation of general equipment from war plants was only small part of reparations problem. Clay reported that he would maintain his position as long as Soviets put “illegal obstacles” in way of economic unity and that he did not like Soviet member’s choice of language. Conclusion of debate was that Economic Directorate be instructed to proceed as soon as possible with drafting lists of plants against which no reservations had been submitted.
Sent Department as 2454; repeated Moscow as 337; Paris as 348 and Brussels for Dorr as 115.
- Not printed; in this despatch the Soviet representative on the Economic Directorate complained that of the 2,000 to 2,500 plants to be removed from the western zones, 675 had so far been offered, 114 evaluated, and only 5 dismantled. Of the estimated 3 million tons which were to be shipped, only 1 percent had been sent. The United States member said that the total number of plants would be closer to 1,850. (740.0019 EW/10–146)↩