740.00119 EW/12–1348: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
Subject: Humphrey Committee—German reparations—prohibited industries.
5212. From Douglas and Humphrey for ECA and State Department. Meeting held December 11 Foreign Office chairmanship, Douglas, Humphrey, McCaffrey, Alphand, Stevens and others. UK and French presented lists plants they are willing to retain as follows: UK—119 plants; France—121 plants, of which 39 partial retention, 82 complete retention. This compares with Humphrey committee request 183 plants.
[Page 850]British figures, hurriedly prepared do not check exactly. Detailed calculation shows following:
[Here follows listing of plants proposed by the United Kingdom, France, and United States Delegations for retention in Germany.]
Details will be cabled later when definitive texts of British and French available and analysis made quantity plants they wish released.
UK comments largely dealt with security and level of industry. UK felt any final negotiation on list must be reviewed in light of decision to be taken on Ruhr and prohibited industries. Admitted possibility these decisions might increase retention list as well as possibility decrease as to chemical industry, UK said its proposal would be definitely increase capacity. As to steel, Coleclough (UK) felt reduction US figure justified since US did not take sufficiently into consideration French and US zone capacities. Stevens (UK) pointed out main anxiety in mechanical engineering list not security but desirability making more plants available to IARA.
Alphand stressed small size reparations asked by Allies and desirability sending out of Germany large numbers machine tools.
At start of meeting Douglas announced US position prohibited any restricted industries: plant capacity in excess required to produce level agreed on will be subject to reparations (or in prohibited industry cases destroyed) without review by ECA. This does not, however, apply to steel. Plants in industries deleted from prohibited or restricted list will be subject to review by ECA before final release reparations. In formulating governmental positions, various agencies of governments may be consulted. Thus in case of US, ECA would be consulted on general principles relating prohibited industries, even though it will not review specific plants.
Wilson and Geier left for Germany December 10 inspect further plants. Expected back December 13. Next meeting with British and French December 14. Price left SS America December 10.
Sent Department 5212, repeated Paris 1026, Brussels 159, Frankfurt 49, Berlin 646. [Douglas and Humphrey.]