740.00119 Council/5–448: Telegram
The Secretary of State to the Embassy in the United Kingdom
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1601. Secdel 1570. Dept continues feel that allocations to IARA shld be on basis individual Zone Commander’s notification (para 3, Deptel 1442, Apr 221) especially in view previous acceptance by IARA of allocations from Brit and French zones on this basis. Assumed that tripartite action referred to Delsec 17062 contemplates this procedure being followed simultaneously but not jointly by the Zone Commanders. Dept’s views regarding deliveries to satellites contained Deptel 1561, Apr 30.3 Examination of inventories referred to therein by Dept indicates that probably more than half of tonnage of equipment allocated to satellites from US zone wld be deliverable on basis indicated Deptel 1561. Further discussions being carried on with Army Dept.
Dept cannot agree that there is unrestricted authority vested in Zone Commander arbitrarily to withhold reparation deliveries which have been previously agreed to for release by him and allocated to IARA by full quadripartite action. Dept willing support withholding only where strong reasons based upon direct US interests can be offered in explanation. IARA allocation only official act upon which delivery of equipment to a particular country is based and therefore IARA allocation presumes delivery. IARA allocation process frequently requires one country yield its claim for specific equipment against guarantee that other equipment will be received.
Suggest you consult Dorr re probable effect restriction satellite deliveries upon IARA allocation arrangements. Dept inclined feel that allocations by IARA shld be honored by delivery except where the items involved fall within the ban described in Deptel 1561, and that utmost efforts be made within limits Paris Act and rules of IARA to prevent future allocation any equipment on prohibited list. Gen Clay has reported previously that administrative delays offer insufficient ground avoiding delivery satellite nations. The informal stop-order he has issued has led to current efforts Yugos and Czechs bring matter officially before IARA.
Dept agrees that initiative shld not be taken re quadripartite allocations. In event Soviets seek quadripartite allocations without reference other quadripartite matters, Dept feels that US rep shld not participate in any such limited discussions. In event circumstances change in such way as to make comprehensive quadripartite discussion feasible and desirable, reparation allocations will be considered in the [Page 223] light of all circumstances then obtaining. No inclination here, however, agree to any allocations to Soviets except on basis current exchange for reciprocal commodities up to 15% of total amounts equipment becoming available and in no event permitting delivery equipment falling within limits Deptel 1561.
Agreement Cabinet members concerned has now been obtained permit notices of availability to IARA those plants on approved lists No. 1–4 which were given to Brit and French during Tech Mission’s discussion at London (London’s 1487, Apr 104). Agreement is subject to reservation, however, that any new facts developed by Tech Mission before its return cld be made basis for requesting withdrawal any particular plant. Since this list was further discussed in Germany, however, and list of plants in US zone which were not to be studied confirmed, list is believed quite firm. If necessary working party can be requested provide lists of plants which can be allocated immediately upon reassembling in Wash. In any event working party will have completed its work before any official allocation action can be taken by IARA.
Rptd Brussels for Dorr as 658, USPolAd, Berlin as 786.
London requested repeat Delsec 1706 to Brussels for Dorr.