740.00119 EW/5–1748: Telegram
The United States Political Adviser for Germany (Murphy)1 to the Secretary of State
1149. Personal for Lovett from Murphy. Your 842, May 13.2 Department’s insistence on action by individual zone commanders in the allocation of plants to IARA and its stated reluctance to establish tripartite machinery for future allocation of plants to western claimants is puzzling to us here. After weeks of negotiations with UK, France and Benelux in London in which the USSR did not participate, it would appear that we are on verge of agreement regarding recommendations for establishment of a western German Government and an international control authority for the Ruhr. Important progress has been made towards trizonal fusion. In addition, three western powers have established and are participating in a western German Bank Deutscherlaender and an Allied Banking Commission on a tripartite basis. Furthermore, a currency reform on a tripartite basis is under active consideration. While inconsistency itself is not always undesirable I am exceedingly puzzled over the reasons for our reluctance to act in the reparations field in harmony with other features of our German policy, many of which are in the political, financial and economic fields of equal or even greater importance. If convenient I would appreciate more guidance from the Department on this point as there are obviously factors involved of which I am ignorant.