Foreign Relations of the United States, 1948, Germany and Austria, Volume II

740.00119 EW/6–1248: Telegram

The Secretary of State to the Embassy in the United Kingdom

secret
us urgent

Washington, June 12, 1948—9 p. m.

2213. For Douglas from Saltzman. Following is present status efforts obtain release plants from consideration Technical Mission and Cabinet Working Group on Reparations:

1. Not withstanding all arguments brought bear on technical mission smallest figure we have been able obtain as still under consideration for retention Germany is 326 whole plants and 13 part plants. Deducting this from 914 total plants listed in 3 zones, 575 whole and 13 part plants remain for allocation and delivery. Of these, 292, according figures here, have already been allocated. Result therefore is in vicinity of 283 whole and 13 part plants now freed for allocation by tech mission subject to para 2 below. This latter figure includes plants notified you Deptel 1577.¹ Mission has promised supply June 15 identifying serial numbers of plants involved.

2. Consent of release these plants has required approval 3 Cabinet Officers concerned. That has been obtained except that Secretaries Krug and Sawyer have conditioned their approval upon complete approval by Harriman of above stated findings of mission. Request you phone Harriman Paris urgently, explain (a) urgency causing tech mission to make interim report at request of Dept and Army (b) necessity of prompt availability plants for allocation (c) Mission’s recommendation release above quantities plants from further consideration, and obtain his approval to immediate allocation plants cleared by technical mission as not being further considered for retention Germany. Above figures of approx 283 whole and 13 part plants may be considered firm when Harriman’s approval obtained.

3. Discussion with members technical mission indicated there is serious possibility that final recommendations by technical mission may be retention Germany of close to 326 whole and 13 part plants. This means there will be no substantial further list available June 21 or whenever final report made, and there will be serious policy issue within this Govt before final recommendations of this Govt to Brit and French re plants to be retained Germany can be made. We suggest you use this information in your discretion, and in any event avoid indicating to Brit and French substantial further list can be made available soon, perhaps ever. We understand difficulties presented by these facts and are doing our utmost here.

4. Instructions to Clay set forth urtel 2425² as amended urtel 2583³ and telephone conversation June 10⁴ will be sent by Army as soon as you confirm approval by French Govt. List of plants and part plants will be sent at same time if available and Harriman’s approval obtained. [Saltzman.]

Marshall

1. Not printed.
2. June 2, p. 754.
3. Not printed.
4. No record has been found of the conversation under reference.