Office of the Historian

740.00119 Control (Germany)/11–945: Telegram

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

Washington, December 29, 1945—5 p.m.

11131. London’s 12851 Dec 7, 778 Paris, 367 Bern, 677 Stockholm, 318 Madrid, 261 Lisbon; Stockholm’s 3613 Dec 11,75 1866 London, 212 Paris; and Paris’ 7163 Dec 14,75 149 from Angell, Angell’s 14 to London, 6 to Bern, 4 to Madrid.

(1)
Omission of phrase “acting in behalf of Control Council” is deemed satisfactory by Dept in view of fact that negotiations will in any event be based on Vesting Decree. It is necessary by reason of interdepartmental clearances, sanctions question, overall relations with neutrals, that negotiations be conducted on diplomatic level rather than by ACC.
(2)
Concerning point 6 London’s 12851, Dept recommends second sentence pgh 5 Dept’s note (9901 Nov 9 [10] to London, 5257 Paris, 1845 Madrid, 1768 Lisbon, 2083 Stockholm, 3271 Bern) should be changed to read “and to devote these resources to the relief, reparation and rehabilitation of countries devastated or depleted by German aggression”.
(3)
While Dept concurs fully with Brit desire to present notes as soon as possible, Dept believes it important to reach agreement on application of sanctions before presentation of notes. In view of desire for Swiss to negotiate (see 4 below), Dept considers that delay presentation of notes is feasible since we can informally advise Swiss that we will be prepared to meet with them early next year. Dept suggests that we aim for Jan 28 as date at which to institute negotiations with Swiss and early part Jan as latest date for presentation of notes. London’s and Paris’ immediate consideration of Dept’s sanctions tel would facilitate presentation notes and institution negotiations. London’s 13124 Dec. 14,76 799 Paris, 378 Bern, 327 Madrid, 267 Lisbon, 683 Stockholm, appreciated in this respect.
(4)
Dept concurs that in view representations of Swiss Ministers London and Wash for negotiations with Swiss, Swiss should come first, with request for Wash as situs. This would appear to be satisfactory to Stockholm in view pgh 2 its 3613 Dec 11. However, note to Swedes could set forth tentative date for which invitation would be made.
(5)
Despite Swiss Aide-Mémoire77 requesting negotiations, Dept believes it would nevertheless be desirable to present proposed note to Swiss which at time of presentation can be pointed out to be acceptance of their offer to negotiate (London’s 13174 Dec. 15,803 Paris; Angell’s 145, Paris’ 7137 Dec. 12 Angell’s 5 to Bern, 3 to Madrid, 12 to London). In this way we will be able to make clear to Swiss our terms of reference for negotiations. Before making final decisions, Dept would appreciate receiving Bern’s views.
(6)
With ref Paris’ 7604 [7004] Dec. 6,78 113 from Angell, 848 to London, Dept appreciates Angell’s recommendation that status of ACC reps should be determined and clearly stated in advance. Dept is currently considering this question with War Dept and Clay, taking into full consideration Angell’s comments his 113, and will advise you of decision reached. You will be advised further on this.
(7)
With ref Angell’s 145 (Paris’ 7137 Dec. 12,79 12 from Angell to London), Dept appreciates very much his cooperation. With ref situation Madrid, negotiations with Spain can be conducted after Swedes and Swiss negotiations and, if necessary, nature of negotiations there can be altered. Dept is presently clearing with Treas tel to Madrid authorizing sale of Bakumar80 as recommended by Madrid.
(8)
With ref pgh 4 Stockholm’s 3613 Dec 11, it seems likely that reparations agreement will provide for some of Germany’s external assets to accrue to US. However, consideration is being given to a procedure which will circumvent any weakening of our moral argument. Since we plan to permit desirable local neutral interests first crack at purchasing German-owned or controlled cos, neutrals possible fear of Allied imperialistic attempts would be unjustified. In view of London’s apparent clearance of Wash as situs, Brit Legs opposition would presumably be corrected by appropriate directions from London. Fr approval Wash duly noted and appreciated (Paris’ 7163 Dec 14).
(9)
Concerning Stockholm’s pgh 3, its 3613 Dec 11, Dept agrees fully on necessity reaching agreement with Brit, Fr on both inducements and sanctions prior to negotiations. Dept appreciates Leg’s comments re Russia, unilateral sanctions and Brit special interests, and its decisions will naturally take into consideration these aspects problem. Dept agrees Stockholm’s 3649 Dec 1481 that all three notes to Swedes should be identical with respect to specific date. London and Paris are requested to press this point with Brit and Fr. Specific tentative date can be agreed to once date for Swiss is set.

Sent to London as 11131 rptd Paris as 6076 for Angell NE 108, Bern as 3727, Stockholm as 2300, Madrid as 2088 and Lisbon as 1964.

Acheson
  1. Not printed.↩
  2. Not printed.↩
  3. Not printed; see footnote 56, p. 920.↩
  4. Not printed; see footnote 53, p. 918.↩
  5. Not printed.↩
  6. Not printed; this message dealt mainly with Mr. Angell’s efforts to get the French to agree to the United States draft note contained in telegram 9901, November 10, to London, p. 912.↩
  7. Bakuera, Kusche and Martin, S. A.↩
  8. Not printed.↩