740.00119 EW/12–2045: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received December 21—10:16 a.m.]
1299. A Soviet representative on the Reparations Deliveries and Restitution Directorate at its meeting on 6 December, stated that the Soviet Delegation was interested to know what categories of goods the Allies will wish to receive as reciprocal deliveries from the USSR for the 15 percent of industrial plant and equipment made available to the USSR–Poland as reparation deliveries from the Western Zones. Although the US representative expressed the opinion that this question should be raised in the Economic Directorate, the matter is left open and further discussion is contemplated at future meetings of the R. D. and R. Directorate.
It has been noted from Agwar message No. W–77595, 22 [20] October that the United States expects to claim substantial portion of reciprocal deliveries to meet import requirements in Germany and Austria as well as the other supply commitments of the US, and it is assumed that this has been under discussion at the Paris Reparation Conference.
Some indication as to types of materials desired will be given in the R. D. and R. Directorate. Selections will be made from those listed in the Potsdam Protocol and food products will be emphasized. All discussion and presentations will assume as unquestioned that deliveries [Page 1481] will come from outside the boundaries of Germany as administered by the Control Council. I should appreciate receiving urgently any specific recommendations which the Department may have as regards materials to be requested as reciprocal deliveries, and also any suggestions which Minister Angell may have as a result of the discussions at Paris. In recommending priority for reciprocal deliveries, it would be especially useful to know what proportion of the reciprocal deliveries is likely to be included in the US reparation share.
If any substantial proportion of reciprocal deliveries are in the form of raw materials which are used to produce commodities for consumption in all four zones in Germany, the question of allocation against reparation shares would appear to be a complex one. Question is raised whether or not it would be acceptable under US policy to have materials allotted against our reparation share which would be used in this manner without provision of some offset against other western occupying nations. To the extent that reciprocal deliveries are used in this manner, it also appears that the Soviets will benefit inasmuch as there seems to be no way of charging amount against her reparation account. If the materials were priced and charged as approved imports, this would seem to nullify their character as reciprocal deliveries and place them in the same category as imports provided by other occupying nations, i.e. wheat shipments now being made by the US. Inasmuch as IARA (Inter-American Separations Agency) will allot reciprocal deliveries, I should like to know also to what extent it is considered desirable that it participate in the indication of priority materials and the arrangements for effecting deliveries, unless this point is covered in the IARA charter which has not yet been received here.
Sent to Department as 1299, repeated to Paris for Angell as 179.