800.515/5–2648
Official Report by Seymour J. Rubin, Chairman of the United States Delegation to the Conference on Economic Security, Paris, April 26–May 7, 19481
1. Background:
On April 7, 1948 the Department in an aide-mémoire handed to the British and French Embassies, referred to the unsatisfactory situation arising by reason of failure of the Swiss Government to comply with the terms of the Swiss-Allied Accord of May 25, 1946 on the subject of German assets in Switzerland.2 The Department suggested that a meeting be held at Paris within the current month among representatives of the governments of the U.S., U.K. and France to arrive at an immediate agreement among themselves on steps to be taken satisfactorily to resolve the impasse.
The U.K. and French governments speedily accepted the suggestion of the Department, and urged an enlargement of the scope of the conference to include other problems pertaining to the economic security program of the three governments.
2. Agenda:
- a.
- Action to be taken to resolve the impasse with the government of Switzerland regarding the implementation of the Swiss-Allied Accord of May 25, 1946.3
- b.
- Action to be taken to settle with the government of Portugal the problem of looted gold acquired by Portugal, so that gold might be restored to the countries from which looted, and the Portuguese-Allied Agreement of February 1947 on the liquidation of German assets might come into effect.4
- c.
- Action to be taken to resolve issues outstanding in negotiations with the government of Spain on the subject of German assets in that country, so that an accord might be signed forthwith.
- d.
- Action to be taken with regard to German assets in certain countries of both hemispheres not members of the Inter-Allied Reparation Agency but which were involved in the war against Germany.
3. Participation:
Delegations of the three countries invited attended. There were no observers.
[Here follow Sections 4, 5, and 6 describing the members of the United States Delegation, the travel itinerary of the Delegation, and the headquarters of the Delegation and of the Conference.]
7. The Opening Plenary Session:
Mr. François de Panafieu, Chairman of the French Delegation opened the conference by pointing up the urgent need of the countries entitled to reparation from Germany under the Paris Reparation Agreement for the proceeds of German assets in the neutral countries of Europe, in order that the economic recovery of Europe might be advanced, and the economic security of Europe be safeguarded. These informal comments were concurred in by Mr. Rubin arid by Mr. Francis W. McCombe of the British Foreign Office, Chairman of the British Delegation. Thereafter the conference proceeded immediately to the agenda.
8. The conference sat primarily throughout the plenary session except for two committee sessions for drafting purposes. Mr. de Panafieu, as chairman of the host government, acted as chairman of the conference.
[Here follow Sections 9, 10, 11, 12, and 13 dealing with the official languages of the Conference, the policy with regard to the press, the work of the committees, entertainment and official functions, and the closing plenary session.]
14. Conclusions:
- a.
- All items of the agenda were covered, and determination of action to be taken forthwith by the three governments was made. The substance of the determinations is classified. If the action agreed upon with respect to Switzerland has satisfactory results, U.S. participation in a further conference in this series will be necessary, not only to permit solution of problems between Switzerland on the one hand arid the three powers on the other, but to allow the three powers themselves to compose differences among them that will undoubtedly arise. To the holding of such a conference among themselves and with Switzerland, should it be necessary, the three powers at the conference have committed themselves.
- b.
- From the standpoint of the Government and the people of the United States, the potential benefits to be derived from the accomplishments of the conference are extensive. Economic security against the improper use of German assets in the neutral countries of Europe would be fortified; and large financial resources would accrue to [Page 859] the United States and other countries members of the Inter-Allied Reparation Agency.
- This report was transmitted by Mr. Rubin to the Secretary of State under cover of a brief letter of May 26, not printed. Rubin’s supplementary, confidential report sprinted infra. ↩
- The Department’s aide-mémoire of April 7, not printed, is briefly summarized in paragraph 7 of the extract from Current Economic Developments, No. 147, April 19, p. 854.↩
- See footnote 4 to the extract from Current Economic Developments. No. 147, p. 854.↩
- See footnote 8 to the extract from Current Economic Developments, No. 147. p. 856.↩