740.00119 Council/2–2448: Telegram
The Ambassador in the United Kingdom ( Douglas ) to the Secretary of State
710. Delsec 1574. In session Tripartite Conference today1 USDel presented reparation proposals calling for tripartite agreement in (1) temporary suspension of dismantling of plants that will be reviewed by special cabinet group for possible retention in Germany and in interest of maximizing their contribution to ERP, and British and French cooperation such review and (2) cessation of plant deliveries to Soviet Union except in return for commodities. British stated proposal raised serious question concerning Potsdam agreement and effect in Germany of suspension of dismantling arid particularly of possible action substituting new plants for those retained in Germany. (Re latter question USDel urges Department authorize it to abandon if necessary proposal for substitution in view strong British opposition and General Clay’s conviction shared by USDel that earmarking as reparation of plants which Germans previously assured would be retained would have extremely unfortunate repercussions in Germany) agreement reached to establish small working party to examine scope and clarify first part of US proposal. Any necessary clarification of second part US proposal will take place in informal talks among heads delegations.
Sent Department as 710, repeated USPolAd Berlin 27, Paris 63, Moscow 30, The Hague 9, Brussels 18, Luxembourg 2, Oslo 4, Copenhagen 9, Stockholm 13 and Rome 29.