Office of the Historian

740.00119 Council/5–1348: Telegram

The Secretary of State to the Embassy in the United Kingdom

secret
us urgent
Washington, May 13, 1948—7 p. m.

1746. Secdel 1576. 1. Dept’s preference for action by individual zone commanders re allocation plants to IARA (re Secdel 1575, May 101 and Delsec 1729, May 122) is based on reluctance to create new tripartite machinery in place of existing quadripartite machinery. Our general position has been that quadripartite machinery still exists and we do not wish to take the initiative in setting up rival organisms. We believe that proposals in Secdel 1575 provide for tripartite action in substance and should be acceptable to Brit and Fr. All we are concerned with is that formal action should be taken by individual zone commanders. Action by individual commanders is well recognized and lias precedent in reparation allocations (ref Deptel 1442, Apr 223).

2. Dept does not envisage any negotiations with Soviets for reciprocal deliveries except through quadripartite machinery in Berlin. If and when quadripartite discussions resumed Berlin, resuming deliveries [Page 242] to Soviets on basis Delsec 1722 May 74 cld be brought up for discussion after full consultation among military governors of three western zones.

3. We contemplate three governments would jointly issue public announcement, preferably at London, at end of your current discussions, along following lines:

In view of the fact that the ACA in Berlin, through which allocations to IARA are normally made, is not functioning, the three governments have agreed to instruct their respective zone commanders in Germany as an interim measure to make available to IARA the 75% share of German reparations to which IARA members are entitled under the Potsdam Agreement. The zone commanders will also be instructed to set aside in Germany for future disposition an amount of equipment corresponding to what the USSR would have received under quadripartite allocation.

4. It will not be feasible obtain list specific plants and equipment not to be delivered to satellites in time for your use London.

5. Serial numbers plants UK and US Zones which have been cleared for allocation follow in separate tel.5

Sent London as 1746; repeated Brussels for Dorr as 712; repeated Berlin as 842.

Marshall
  1. Not printed, but see footnote 4, p. 229.↩
  2. Not printed; it asked why the Department objected to the creation of a tripartite allocation mechanism (740.00119 Council/5–1248).↩
  3. Ante, p. 199.↩
  4. Ante, p. 228.↩
  5. The telegram under reference, 1749, Secdel 1577, May 14, to London, is not printed.↩