740.00119 EW/5–2248: Telegram

The United States Delegate to the Inter-Allied Reparation Agency (Dorr) to the Secretary of State 1

confidential

1055. OE from Dorr. 1. Assembly yesterday considered Yugoslav protest re stoppage deliveries from US zone (remytel 1027, May 19, repeated Berlin 49, London 992). Albanian delegates likewise complained of similar stoppage deliveries their governments. Yugoslavia, Albania alleged USA violating Paris Act and threatening existence [Page 753] IARA. Cited disastrous effect stoppage on their economies and expense maintaining inspection dismantling teams Germany as further reasons assembly should endeavor obtain prompt settlement. Czechoslovakian delegate advised shortage rail cars given by zonal authorities as explanation for interruption deliveries his government, although both Yugoslav and Albanian alleged this not real reason. Czech cited press reports that equipment from Paraxol [Kügelfischer?] Works was returned to plant while en route Czechoslovakia by rail. Asked USA consider permitting recipient countries supply own wagons for transporting reparation deliveries.

2. I repeated earlier statement (mytel 1035, May 20, repeated London 100, Berlin 513) that I was unprepared make full reply to foregoing, although indicated willingness make inquiries my government and communicate results to Assembly.

3. Entire matter treated like hot potato by other delegates, Belgium, supported by Greek, urged that Assembly take no final position until secretariat makes full inquiry into facts, and USA submits statement. As two previous inquiries addressed to USA zonal authorities by secretariat had produced nothing new, Rueff inclined agree further efforts by secretariat likely fruitless. During brief intermission he drafted interim resolution acceptable both sides which Assembly quickly adopted fifteen to zero. Will forward exact text Monday, but gist is as follows:4

A.
Assembly notes USA [Yugoslav?], Albanian, Czech declarations and that by US A delegation.
B.
Asks USDel provide requested info earliest possible date.
C.
Decides keeps matter on agenda for next session.

4. Assembly then adjourned after setting June 7 as opening date next session. Department will recognize necessity preparing statement for communication to Assembly by June 7. I would appreciate opportunity comment upon proposed statement and hope Department can transmit same sufficiently in advance of June 7 to enable me do so.

Sent department 1055, repeated London 102, Berlin 54.

[
Dorr
]
  1. Telegrams from and to Dorr were transmitted via the facilities of the Embassy in Brussels.
  2. Not printed. It reported that the IARA Secretary General had circulated a letter from the Yugoslav delegation to the IARA, dated May 15, asking that the question of the stoppage of the delivery of reparation and restitution items from the U.S. zone of occupation of Germany to Yugoslavia he placed on the agenda of the IARA Assembly. The letter, which summarized earlier Yugoslav protests to American authorities, proposed that the IARA Assembly request the United States Government to take the necessary measures to resume reparation deliveries to Yugoslavia (740.00119 EW/5–1948). The resumption of reparation deliveries to Yugoslavia had earlier been requested in a Yugoslav Embassy note of April 19 to the Department of State, not printed (740.00119 EW/4–1948). In telegram 755, May 20, to Brussels, Dorr was instructed by the Department to make no official reply to the substance of the Yugoslav protest but to reiterate previous statements that the matter was under consideration in Washington on the basis of a formal Yugoslav communication to the State Department (740.00119 EW/5–1948).
  3. Not printed.
  4. The text of the resolution summarized here was transmitted to the Department in telegram 1092, May 28, from Brussels, not printed (740.00119 EW/5–2848).