740.5/10–651: Telegram

The Acting Secretary of State to the Embassy in the United Kingdom 1


1881. For Gifford from Byroade. Ref Deptels 1486, Sept 14 and 1657, Sept 25.2 As you know, we have to work out, in accordance with the [Page 1648] Directive of the FonMins,3 the basis for handling the financial support of Allied troops in Ger under the contractual arrangements as well as financial support for German forces. We have now reached agreement with the Brit and Fr that these discussions will also begin in London on Oct 10. We recognize that it is unlikely that it will be possible to get consideration for decisions on this subj prior to the Brit elections. However, a good deal of useful work can be done in analyzing the problem, getting complete cost estimates and working on problems of procedure. Our intention has been to have Reinstein, with the assistance of reps of Defense, ECA and Treas, get work started on this basis. Once the issues have been defined and the elections are out of the way, we wld try to reach decisions or get the question in shape for consideration at a Mins mtg. At that point, we think that someone of Asst Secy level shld take over the negots and see them through their final stages. We hope that Thorp might be able to do this.

I recognize that it is quite an imposition on the Emb, but I wonder whether it wld be possible for Holmes to head up the del on financial questions on a temporary basis, pending the arrival of someone from Wash for this purpose. I do not think that, in the light of the election, the discussions in the early weeks wld be likely to require that he spend any significant amount of time on the subj. We wld, however, in view of our later plans, like to estab the level at which the discussions will eventually be carried on. [Byroade.]

  1. This telegram was drafted by Reinstein and cleared in substance by Knight.
  2. Neither printed. The former transmitted a summary of the fourth meeting of the three Western Foreign Ministers (for the U.S. Delegation minutes of this meeting, see p. 1272); the latter reported the U.S. position on security controls which was also to be discussed in London beginning October 10. (396.1–WA/9–1451 and 740.5/9–2551)
  3. For the text of the Foreign Ministers instruction on Germany to the Allied High Commission, see WFM T–5a, p. 1197 and footnotes thereto.