740.00119 EW/11–147: Telegram
The Acting United States Delegate to the Inter-Allied Reparation Agency (Daspit) to the Secretary of State
1703. OE from Daspit. Assembly26 October 30 rehearsed reactions to new plant list anticipation visit next Wednesday Sir Cecil Weir, bizonal economics chief.
I had privately asked Rueff to refer to limits imposed on Assembly by part II, article 227 and he did so before calling on Yugoslavia to open debate.
Yugoslavia made three points: (1) Since list28 did not reach IARA via Control Council, constitutional problem created for IARA, since Paris act preamble bases reparation on Potsdam. (2) Invited other nations to join in protest at low level of reparation which contrary to Potsdam provision that German people compensate to greatest extent for aggression. (3) Current production should be instituted in lieu of 10 billion reichsmarks IARA originally expected.
I expressed regret that advice of President disregarded, asked that minutes be edited so as eliminate portions of Yugoslav statement that did not lie within proper scope IARA’s concern, and moved adjournment on ground political issues raised were not proper subject Assembly debate and their discussion dangerous to harmony and effectiveness of agency.
Followed long and inconclusive discussion Article II, part two. Pointed out by some delegates that under rules, President had responsibility for calling speakers to order. Rueff stated there was difference [Page 1129] in shading between French and English texts part II, Article 2 and that in his opinion French text justified expression disappointment with plants actually declared available. Stated however that current production dangerous question and he had several times considered ruling speaker out of order this point.
When became obvious Assembly would defeat adjournment motion, withdrew it, expressing confidence that President would exercise wisdom in holding further debate within proper limits. Debate which followed very moderate in tone.
Czechoslovakia advocated more detailed advance information so that IARA countries could make plans on overall basis, expressed disappointment no plants producing raw materials for ammunitions or armament plants available. French seconded latter point specifically desired plant for manufacturing submarine diesel cylinders.
Dutch made strong statement that revival German peaceful industry would contribute more to recovery IARA countries than few machines IARA could expect as reparation.
British recalled Potsdam first-charge principle on current production. French urged speed-up allocation, at present rate would take 18 months allocation new list, in addition to dismantling lag. Suggested cross index new numbers with ACA numbers for purpose identification.
Albanian said by-pass of Control Council rendered void part one Articles 2 and 3, opening up possibility new claims by member governments against Germany and against equipment allocated by IARA in future.
I pointed out that IARA crossing bridges in advance, since statement of McJunkins and Whitham forwarding list clearly showed the list did not constitute allocation to IARA, but an advance list sent for information, and that IARA had no cause to assume normal procedure would not be followed in formal declaration of availability. Further discussion suspended until after meeting with Weir. Yugoslavs and Albanians indicated introduction of strong protest resolution being considered.
Assembly extensively debated Rueff suggestion for press release repeating statements Clay, Robinson, Wilkinson, Bevin to counteract impression that new list would destroy German industry.
Albania strongly opposed on grounds such statement implied satisfaction with new list and when number other delegates showed lack enthusiasm, idea abandoned.
Sent Department 1703, repeated Berlin 139.
- The Assembly of the Inter-Allied Reparation Agency, meeting in Brussels, September–November 1947.↩
- The citation here is to the Agreement on Reparation from Germany, Establishment of an Inter-Allied Reparation Agency, and Restitution of Monetary Gold, signed in Paris on December 21, 1945; for text, see Department of State Treaties and Other International Act Series No. 1655, 61 Stat. (pt. 3) 3157, or Inter-Allied Reparation Agency: Report of the Secretary General for the Year 1947, Annex II.↩
- The reference here is to the list of plants in Germany subject to reparation transmitted to the IARA in the letter of October 14 from McJunkins and Whitham, supra.↩