740.00119 EW/11–645: Telegram

The Secretary of State to the United States Political Adviser for Germany (Murphy)

888. BritEmb has urged Dept not to approve allocation to USSR-Poland of appreciably more than 25 percent of aggregate value of plants now declared available for reparation. In reply Dept has taken following position:

1.
No plants beyond three now set aside for Soviet Union should be allocated until possible to examine statements which other claimants have been asked to submit by November 14 in response to request that they indicate extent of interest in any plants declared available for reparation.
2.
Until examination of such statements impossible to determine whether or not USSR-Poland should get more than 25 percent of plants. If possible to allocate more than 25 percent to USSR-Poland without disregarding expressed interest of other claimants, Dept has no objection in principle to such allocation.
3.
USSR-Poland should get at least 25 percent of plants on first list, and, if allowed more, corresponding cuts must be made in subsequent allocations. Division into 25 percent and 75 percent shares [Page 1389] unnecessary in case of each list of plant and equipment available for reparation, but with successive allocations greater care must be exercised to ensure that final global allocation corresponds to these shares.

Please inform General Clay.

Repeated to AmEmb, Paris, for Angell and to AmEmb, London.

Byrnes