740.00119 EW/12–1048: Telegram

The Ambassador in the United Kingdom (Douglas) to the Secretary of State

secret

Subject: Humphrey Committee and Reparations.

5205. From Douglas and Humphrey for ECA and State Department. December 9 Douglas delivered detailed list of German plants scheduled for reparations to Stevens (UK) and Alphand (France), showing recommendations of Humphrey Committee for retention and release.

Summary of figures follows: Total plants on ECA list August 31, 1948 381 original releases before examination 12 sub-allocated plants released 13 allocated plants released 20 total releases prior to London meeting 45 total 336 recommended for release by engineers 21 recommended for release by Wolf Mission 44 subtotal 65 total 271 additional releases approved by committee in London meeting 44 total 227 French voluntary retention list 43 total 184 sub-allocated plant (ACA 12) not yet released (in addition to ACA 18, included in steel [Page 847] retention list) one total 183 recommended for retention 183 consisting of part plants 59 whole plants 124 total 183.1

Copy of list being airmailed to Washington, Paris, Brussels, ECA Frankfurt, OMGUS Berlin.

Figures given above undergoing slight revision, in steel plants. List of steel plants given UK and France today shows almost half plants retained are retained in part only. No such arrangements made in respect chemical, non-ferrous and other plants examined by engineers, which are total retentions or total releases.

Pursuant agreement meeting December 9 Stevens, Whitham (UK), Alphand, Rueff, Coignard (France), Douglas, Humphrey Committee, Saltzman (US), the list will be examined by British and French and suggestions to be made by them December 11 if possible what plants on retention list they especially desire have released. Further meeting with UK and France December 14, following which Humphrey Committee will be in position formulate conclusions.

Specific arguments at present are chiefly concerned with wire and tubing production in steel plants and list 18 small mechanical engineering plants which Committee not disposed to release.

Weight to be given political and security factors has been subject of lengthy discussion. Humphrey’s position is that his Committee does not consider itself qualified evaluate these factors. However Committee recognizes they exist, and attempts to reach a business solution of problem, how many plants should be retained in Germany. British and French complain more specific evaluation of these factors necessary, since once Humphrey Committee report published it will be difficult to secure agreement satisfactory to American people at substantially lower level than that recommended in report.

Agreement on reparations list before Humphrey Committee leaves (December 14) not considered possible since British and French representatives have stated they must report to their Ministries before making commitment. However margin of disagreement substantially narrowed result London meeting.

Not contemplated there will be intermediate release any plants before Humphrey Committee’s report submitted which may not be before next year. Rueff (French representative, also official of IARA) satisfied on this point.

Sent Department, repeated Paris 102, Brussels 158, Berlin 643, Frankfurt ECA 48. [Douglas and Humphrey.]

Douglas
  1. The parenthetical references in this sentence are to industrial plants appearing on the consolidated Allied Control Authority lists.