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

740.00119 EW/10–148

The British Secretary of State for Foreign Affairs (Bevin) to the Secretary of State ¹

Paris, 1st October, 1948.

Dear Mr. Marshall: I think it might be useful if, following our conversation of September 28th,² I were to set down some suggestions as to how we might proceed in the matter of reparations from Germany.

2. I fully understand the obligation which Section 115F of the Economic Co-operation Act places upon Mr. Hoffman and yourself, and I am anxious to give you every possible assistance in hastening a solution of this problem. At the same time, you will understand the great importance which I attach to avoiding any step which has a perceptible effect on the rate of dismantling in Germany and which consequently would in my view endanger the whole reparations programme.

3. As regards dismantling, I am advised that the present position is as follows. There are 176 plants in the British Zone which have not yet been released from consideration by the United States Government. Of these, 37 have been completely dismantled. The total tonnage of these plants is, however, only about 13,000 tons, 74 plants are in the process of being dismantled. I consider that if dismantling were interrupted on these plants it might well be impossible ever to resume and that the consequences would not be confined to the particular plants in question. There remain 64 plants at which dismantling has not yet started, but it is due to begin at a number of these within the next few weeks.

4. The arrangements which I would propose for your consideration are as follows:—

(i) In connexion with the re-examination of the information about unreleased plants in the British Zone which Mr. Hoffman finds it necessary to undertake in order to discharge his responsibilities to Congress, I shall be glad to arrange for any questionnaires to be completed by United Kingdom representatives in the bizone. I believe that it would also be useful to have an early discussion with those specially concerned on the United States side either in London or Paris with a view to reaching agreement as soon as possible on which plants, if any, should be retained in Germany in the interest of the European Recovery Programme. The sooner we can agree on a precise policy in this respect, the sooner will the present uncertainty, which I regard as a serious obstacle to the execution of the reparations programme, be removed.

(ii) I am ready to arrange that no new dismantling shall begin at any of the 64 plants mentioned above where it has not yet started until December 15th. I would hope that the examination will have been completed and inter-Governmental agreement reached by that date. I am afraid that I cannot offer to delay any new dismantling beyond that date because to do so would, I believe, have serious effects on the reparations programme.

(iii) Equally, I am afraid that I cannot offer to stop or to interrupt dismantling at any of the plants where it has already begun. If, however, agreed decisions about retention can be taken quickly, I do not exclude the possibility that certain of these plants should be retained provided dismantling has not gone too far at the time when the decision is taken.

(iv) I would ask that a further substantial list of plants be released for allocation very soon, including those already dismantled or in which dismantling has reached an advanced stage and which are not considered of the highest priority from an E.R.P. point of view. I believe that it is essential to declare a further list of plants available for allocation in the near future, both in order to satisfy our friends in the Inter-Allied Reparations Agency, and in order to make it clear to the Germans that our reparations policy is being substantially maintained.

(v) I would ask that no investigation by United States experts should be conducted in the British Zone until such a declaration of further plants for allocation has been made.

(vi) With the same thoughts in mind I would urge that a public statement in terms to be agreed between us should be made as soon as possible, explaining the limited scope and temporary character of the examination proposed. This I believe necessary in order to avoid misunderstanding in Germany, which is already having its effect on the execution of the dismantling programme in the British Zone.

5. I earnestly hope that arrangements on the above lines will be acceptable to your Government. In the view of my Government they offer a practicable means of reconciling your Government under the E.C.A. with the need for a rapid completion of the reparations programme.

Yours sincerely,

Ernest Bevin

1. The text of this message was also transmitted in telegram 4434, October 8, from London, not printed (740.00119 EW/10–848). Telegram Martel 43, October 8, not printed, reported that this letter had been delivered at the American Embassy in Paris on October 2 but had inadvertently been misplaced and did not reach Secretary Marshall until October 8. (740.00119 EW/10–848)
2. See Secretary Marshall’s memorandum of conversation, p. 811.