740.00119 EW/10–1548
The President of the Inter-Allied Reparation Agency (Rueff) to the Secretary of State 1
Sir: As President of the Inter Allied Separation Agency I have been charged by its Assembly to ask you to be good enough to bring to the notice of the United States Government certain matters on which this Agency urgently requests information.
On 5 July, 1948, the Agency was notified by the United States Zone Commander, in accordance with normal procedure, that certain plants in the United States Zone of Germany were available for allocation as Reparation to Member Governments of this Agency. At the same time the United States Zone Commander stated that the equipment in these plants had been dismantled and that shipment could be started immediately. He requested the Agency to allocate these plants at the earliest possible date. Accordingly, the Assembly of this Agency, by virtue of its powers under the Paris Agreement on Reparation of January, 1946 proceeded forthwith to allocate these plants among its Member Governments.
Subsequently, several Governments, Members of the Agency, to whom certain of these plants had been finally allocated, were informed by the United States Zone Commander that deliveries were suspended. Representatives of these Governments informed the Secretary General of this Agency of this state of affairs, and requested him to enquire into the apparent contradiction between the United States Zone Commander’s letter of 5 July, 1948,2 and the information they had now received. The Secretary General sent a letter to the United States Zone Commander on 23 September, 1948,2 asking him whether it was correct that delivery of these plants had been suspended, and if so, the reason for this decision.
A reply was received in writing, stating that the delivery of the equipment in these particular plants was being held in abeyance pending completion of a study being made by the Economic Cooperation Administration for the possible need of the retention of these plants in Germany.
This reply has caused Member Governments of this Agency surprise and grave concern, since it would seem to suggest that their rights, deriving from the Paris Agreement on Reparation of January, 1946, of which the United States Government is a Signatory, may be overridden in connection with a study by a body foreign to this Agency, [Page 826] and which would appear to have no functions nor authority in relation to the majority of the Signatories of the Paris Agreement.
I wish to emphasize that the allocation of a reparation item to a Member Government of this Agency does not arise from a bilateral agreement arrived at by one of the Occupying Powers and the Government concerned. It is the result of a decision of the Assembly of this Agency, after taking into consideration the rights and interests of the nineteen Governments represented. It would be difficult to conceive that this decision could be set aside by a unilateral renunciation on the part of a recipient Government, for such a renunciation could not fail to affect the rights and interests of all the other Governments, signatories to the Paris Agreement on Separation.
It follows that the effect of withdrawals, whether temporary or permanent, is gravely prejudicial not only to the plans for economic reconstruction put in hand by Member Governments of this Agency, but also to the operations of the Inter Allied Reparation Agency as a whole, which is thereby seriously impeded in carrying out its functions under the Paris Agreement on Reparation. The Agency understands that further withdrawals are contemplated for the same reason as has been given by the United States Zone Commander. If this be so, the situation will deteriorate still further.
In view of the foregoing, I am sure you will understand why I have been charged by the Assembly of this Agency to request you to be good enough to inform this Agency at your earliest convenience of the United States Government’s position in this matter.
I have [etc.]