740.00119 EW/4–2248: Telegram

The Acting Secretary of State to the Embassy in the United Kingdom


1442. For Douglas from Saltzman. Urtels Niact 1625,1 1629.2 Dept’s views on resumption of allocations of reparations follow. Army is requesting Clay’s comments, following which will telegraph definite instructions.

It is desirable that flow of reparations equipment to IARA be resumed promptly. Difficulties are reluctance to allocate to Soviet Union, re-examination dismantling lists now in progress, and breakdown quadripartite machinery. Re-examination of lists no obstacle to resumption, because present allocations are contemplated only of plants not being considered for retention in Germany to produce items in worldwide short supply. Breakdown quadripartite machinery facilitates handling problem Soviet deliveries.

Propose that US, UK and French informally agree to direct allocation to IARA by individual zone commanders, not touching plants being considered for retention and stopping well short of the 75% of total remaining on list. If public announcement necessary, should be described as interim measure to meet the needs of IARA countries, pending clarification of future of quadripartite machinery.

There is precedent for this action in British and French emergency delivery schemes during US stop-order, under which approximately 29,700,000 RM worth of equipment was allocated to IARA members solely on notice of availability from British or French zone commander.

Foregoing procedure does not contemplate any allocations to U.S.S.R., since it is necessitated by Soviet failure to participate in quadripartite machinery. This point would be pressed strongly with British and French. Contemplate you inquire how much equipment remains to be delivered to U.S.S.R. from U.K. and French zones under previous allocations, and that unless amount and character of equipment [Page 200] is insignificant, you urge that deliveries of these plants be withheld.

Agree entirely with your views on report of technical mission (urtel Niact 1665 Apr 213), but doubt that report can be completed and reviewed by Clay and this Govt in time to be used at present session London. If report is reasonable, assume this Govt would be able authorize its use in negotiations without detailed study, and that Clay would agree. Dept would not wish report to be used as basis international negotiations, however, without some knowledge of contents. Suggest therefore this question be deferred until more is known about the report and when it will be available. [Saltzmann.]

  1. Ante, p. 190.
  2. Not printed, but see footnote 2. p. 190.
  3. Ante, p. 196.