Office of the Historian

740.00119 EW/4–1448: Telegram

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

secret
Washington, April 14, 1948—5 p. m.

1314. There follow terms of reference of technical mission on reparations as approved by Agriculture, Commerce and Interior and accepted by State and Army. This is intended to be precise text agreed by Douglas and Mission and accepted by Clay, as communicated to Dept by London’s 1494 April 11, 1500 April 12 and telephone conversation Douglas–Saltzman April 12.1

[Page 750]
1.
The task of the technical mission is to study German plants scheduled for dismantling which are technically equipped to produce critical items of world wide short supply, and to recommend which, if any, of such plants should be retained for production in Germany in order best to achieve the objectives of the European Recovery Program. In arriving at its recommendations the mission will:
A.
Review, in consultation with British and French representatives in London, the lists of plants scheduled for dismantling with a view to determining which plants may be equipped to produce critical items.
B.
Make a technical examination of such plants with a view of determining the feasibility of bringing them into substantial production within a reasonable period of time for the benefit of European recovery.
C.
Study and evaluate the feasibility of, and time required, for the reestablishment of the plants in the IARA countries which are participants in the ERP.
2.
The examination of plants in each of the zones of occupation will be carried out by the mission in collaboration with the appropriate military government officials, and the commander of each zone will be requested to furnish technical consultants and to afford the mission all appropriate facilities for carrying out its task. In the US zone of occupation such examination of plants will be carried on under the authority of the military governor and pursuant to arrangements all appropriate facilities for carrying out its task. In the US zone of occupation such examination of plants will be carried on under will be carried on under the authority of the respective zonal commanders and pursuant to arrangements made by Ambassador Douglas with the Governments of the UK and France.
3.
The US military governor will be kept informed of the findings of the mission even though a formal report may not have been drafted by the mission before its departure from Germany. Upon completion of its task the mission will submit to the cabinet working party a final report embodying its recommendations, of which a copy shall be furnished simultaneously to the commander of the US zone of occupation.
4.
The technical mission is to be a fact-finding group whose function is to make a report to the Cabinet committee concerned. It is not empowered to conduct inter-governmental negotiations. Its findings will be considered at a US governmental level.
5.
The purposes and work of the technical mission will be considered secret and no publicity will be given thereto unless the Department [Page 751] of State with the concurrence of other interested departments shall so determine.

Sent London as 1314, Berlin as 657, Paris as 1218. Berlin please pass to Technical Mission2 and CINCEUR.

Lovett
  1. In telegram 1449, April 8, from London, not printed, Ambassador Douglas transmitted draft terms of reference for the Cabinet Technical Mission on Reparations. This draft was a revision of the terms of reference transmitted to Ambassador Douglas in telegram 1160, April 3, to London, p. 742. It incorporated the views of General Clay and the Ambassador’s own suggestions made in the light of attitude of the British. (740.00119 EW/4–848) Between April 8 and 12, the draft was further perfected during consultations between Ambassador Douglas and members of the Technical Mission and in accordance with comments from the Department of State. Although the British Foreign Office was not in a position to accept or reject the terms, British views were taken into consideration. The messages and records under reference here represent the final Stage in the redrafting of the terms of reference; none printed.↩
  2. The Technical Mission on Reparations flew from London to Berlin late on April 12.↩