Office of the Historian

740.00119 EW/3–348: Telegram

The Ambassador in the United Kingdom (Douglas) to the Secretary of State

top secret
urgent
niact
London, March 3, 1948—8 p. m.

851. For Lovett from Douglas. Enibtel 850, March 3.1

1.
This afternoon, at a meeting with Strang and Robertson for the British; Massigli, Alphand and Koenig for the French; Murphy, Saltzman and myself for the US, we again reviewed the question of the matter of reparations, and particularly the second part of our proposals; namely, that part having to do with the suspension of dismantling of a limited number of plants.
2.
Robertson again repeated his views about substitution, and stated that any substitution would be contingent upon German agreement which, in effect, meant that it could not be relied upon.
3.
The French asserted the substitution would make the proposal much easier for them to accept. They raised the legal question, however, as to whether, in the event quadripartite allocation of reparations were terminated, the agreement of December of 1945 providing for the allocation of plants to the IARA countries within the specified total percentages to which each of the IARA countries was entitled, would be invalidated because of the reference contained in this agreement to the Potsdam agreement of 1945.

This question is now under review.

4.
It would be of inestimable assistance to us if, failing to give us a list of the categories of plants which are subject to re-examination with a view to determining the plants, if any, which should be retained in Germany in lieu of being dismantled and equipped for reparations, you could give us, very urgently, the maximum number of plants the dismantling of which might be discontinued and which would be retained in Germany.
5.
Will advise you promptly as to further developments.

Sorry I cannot at the moment comply with your request to give you a suggestion which you might put to the Cabinet. Hope will be able to do so tomorrow.

6.
If you could give us some leeway as to substitution so that we would not have to push the British in one direction and the French in another it would, I think, be helpful.
Douglas
  1. Supra.↩