862.60/8–2347: Telegram
The Acting Secretary of State to the Embassy in the United Kingdom
3653. For the Ambassador and Gen. Clay from State and War. In connection impending discussions with French re level of industry, Depts considering related question of resumption of reparation deliveries. When resumption deliveries discussed in a June Cabinet meeting, no decision was reached but consensus was that either there should be no resumption reparation deliveries to any country or that reparation deliveries should be resumed to Eastern and Western countries alike. Since then State Dept has reviewed problem and has reached following tentative conclusions:
- 1.
- It is desired if possible to avoid actual resumption of reparations deliveries until we are able to know the results of the CFM meeting in November. On other hand, prejudgement of results next CFM meeting should be avoided.
- 2.
- At the same time the forthcoming announcement of the level of industry makes it important to give some indication that we are looking toward resumption of reparations deliveries.
- 3.
- Therefore suggest that announcement concerning the level of industry include a statement developing the idea suggested for the preamble that the new level will “provide a firm basis for listing plants to be retained in Germany and plants available for removal as reparations”. Should also be stated that such determination will be commenced at once by the bizonal authorities but without any statement as to when or to whom reparations deliveries will be resumed.
- 4.
- The determination of plants available for removal will presumably take some time and may provide a sufficient means of delaying deliveries until the November meeting.
Views of Douglas and Clay and Murphy requested regarding foregoing in light of the effect on administration bizonal area and in light probable British reaction.