740.00119 EW/10–1348: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State, at Paris
748. Hoffman, Harriman and I had long meeting with Bevin and some of his advisers this morning on reparations.1 Spent most of the remainder of day with the advisers,2 and subsequently saw Bevin late this afternoon. As a result, the following paper was prepared:
“The reparations and dismantling programme of the British Zone has hitherto been operated on a basis of agreement in connection with the level of industry and in cooperation with the other governments concerned. The US Government have requested a reconsideration of this programme in the light of the European recovery programme and have accordingly appointed a committee, called the Humphrey Committee, to investigate certain plants in the three zones, to determine whether or not they would be better operated in Germany in connection [Page 824] with the recovery programme or should be dismantled and removed elsewhere. Accordingly they have requested that the British Government should, so far as their zone is concerned, cooperate fully with the Humphrey Committee, with a view to facilitating its work of investigation both in the British Zone and elsewhere into the possibility of retaining in Germany, in the interests of ERP, plants at present scheduled for reparations. The committee will be asked to maintain close contact with British representatives as its work progresses.
They have further requested that continued dismantling in the British Zone will be of such a character as will not prevent the eventual retention in Germany in the interests of ERP of any plante under review by the Humphrey Committee excluding those already allocated by IARA.
Mr. Hoffman will urge the Humphrey Committee to give priority in their examination to the plants on which dismantling has already started.
Mr. Hoffman will further urge the Humphrey Committee to give early attention to preparing a list of plante in which they have no further interest in order that such plants can be made available to IARA for allocation.
Before any examination of plants is conducted in the British Zone a press statement will be issued in agreed terms explaining the nature of the investigation, emphasizing its limits, scope and duration and the fact that, subject to its findings, the reparations programme is unaffected and will be brought to as speedy a conclusion as possible.
The Foreign Secretary undertook to examine the technical implications of these proposals, to submit them to the Cabinet, to consult with the French Government and to notify the US Government of his position at an early date.”3
Hoffman accepted the above paper on behalf of ECA … I made it clear, however, for the record, that the above paper represented a cooperative effort to arrive at a solution of the problems which confronted both governments, and did not reflect Hoffman’s original request.
British Cabinet will meet on Friday when Bevin will present the paper quoted above. After it has been approved, as seems most likely, a formal communication will be addressed to me outlining the agreement reached probably on Friday.4
Sent Paris (for the Secretary and Harriman) as 748, repeated Department as 4496.
- Regarding the meeting under reference here, see the memorandum of conversation by Hendrick, p. 818.↩
- See Hendrick’s memorandum of conversation, supra. ↩
- The text of the paper quoted here was subsequently transmitted to the Department of State as a memorandum from the British Embassy, dated October 14, 1948, not printed (740.00119 EW/10–1448).↩
- See Foreign Secretary Bevin’s letter of October 16 to Ambassador Douglas, p. 827.↩