740.00119 EW/6–648: Telegram

The Secretary of State to the Embassy in the United Kingdom

top secret
niact

2123. For Douglas from Saltzman. Referring your 2425,1 2470,2 2488,3 2489,4 and Berlin’s 222 to you,5 Dept has considered comments of Generals Clay and Robertson and yourself concerning text of proposed instructions to military governors transmitted urtel 2425 June 2 and’ approves this text subject to (a) the separate agreement by British and French to the statement contained para III your cable, (b) willingness on part British and French to adopt agreed minute to effect that the consultation referred to in Para 2 of instructions is understood to include consultation not only for purpose of establishing uniform’ procedures but also to ensure full accord as between the three military commanders prior to final action on part of each with respect to-selection of equipment for notification to IARA and for Soviet set-aside in each zone. The purpose of this agreed minute is to retain our bargaining power to fullest extent possible without at same time providing for establishment of a formal tripartite machinery. For the reasons stated in Secdels 1575,6 15767 and 15788 Dept is anxious to avoid the implications inherent in the establishment of a formal 3-power procedure in substitution for the quadripartite allocating machinery. (c) Deletion last three sentences para 2 and insertion word “possible” before words “future delivery” in last sentence then remaining in para 2. Dept infers from Wisner’s report of your recent conversations with Bevin there is no reasonable prospect of persuading [Page 762] Brit to accept now our views re the 10% of the Soviet share. Therefore since Brit propose reserve question Soviet 10% deliveries, believe appropriate question entire Soviet share be reserved. Reservation of 15% will thus improve US bargaining position.

Dept agrees General Clay’s position (a) that presentation of reparations matter, if any, to German people should be governed by views of the military governors and (b) that no further discussion is warranted re past deliveries of 15% capital equipment not matched by reciprocal deliveries. However, this point so involved with disposition future deliveries of 15% that it cannot be resolved, separately. Suggest therefore withhold concession on this point, for added bargaining power, until future discussions on the entire 25% share.

Do you believe it would be appropriate to return to discussion of Soviet share after Brit have had opportunity to evaluate Soviet reaction to results London talks on Germany?

The list of plants transmitted by SecDel 15779 should be speedily given to Brit and Fr as constituting initial list referred to by para 3 (a) of instructions to military governors. Initial list should also include plants from Fr Zone and hence Fr should be asked to prepare immediately a limited list of plants from their zone which would include primarily war plants and plants which do not produce items in critical world short supply. This list should then be submitted to Dept urgently for clearance with Cabinet sub-committee, after which all three military governors could make plants available to IARA, at approximately the same time. Please advise Dept whether you prefer to give Brit and Fr SecDel 1577 list and ask Fr for their list or that Dept should act through Embassies here.

Sent London as 2123; repeated to USPolAd, Berlin as 1002; repeated to Brussels for Dorr as 873. [Saltzman.]

Marshall
  1. Ante, p. 754.
  2. Ante, p. 757.
  3. Not printed.
  4. Not printed.
  5. Same as telegram 1299, June 4, from Berlin, not printed, but see footnote 2 to telegram 2470, June 4, from London, p. 757.
  6. Not printed, but see footnote 4 to telegram 1987; Delsec 1722, May 7, from London, p. 228.
  7. Telegram 1746, May 13, p. 241.
  8. Not printed, but see footnote 1 to telegram 2163, Delsec 1741, May 19, from London, p. 254.
  9. Not printed.