740.00119 Council/12–947: Telegram
The Secretary of State to the Acting Secretary of State
Martel 52. For Lovett from Marshall. In yesterday’s discussion30 we came to a point in the British paper (which we were using) which deals with the sharing of deficits by the occupied powers and related subject of such past and future advances being the first charge on German exports. Molotov is attempting to utilize our position that these advances should be first charge on the balanced German economy as a greater burden and no better than reparations from current production.
General Clay tells me that in asking for appropriations to feed Germans in our zone, etc., the War Department has constantly assured Congress that these advances would be a charge against a future German Government for repayment. I would like to have your personal opinion, without however any discussion with members of Congress or others in Washington, as to whether in view of the development under the interim aid and ERP of the thesis of grants in aid without expectation of repayment for food and similar commodities whether the past and future advances to Germany will continue to be regarded as subject to repayment by the German Government or would be included in the category of grants in aid for which no payment would be expected.
I would like to have your views as soon as possible.
- Reference to the Council of Foreign Ministers’ 12th Meeting, December 8; see telegram 6381, Delsec 1531, December 8, from London, supra.↩