462.00R/9–245

The Ambassador in the Soviet Union (Harriman) to the Secretary of State

3140. To SecState for delivery to Pauley and for Clayton from Draper. Arrived Moscow yesterday as Pauley’s representative. Meeting Reparations Commission scheduled Monday141800. Today Waley handed me copy note to Soviet member Novikov attaching agenda proposed by Waley as follows:

1.
Reply to Control Council letter15 which already delivered to Reparations Commission and which asks to be informed now or later of any policies in relation to reparations which the Commission has fixed in addition to those included in the Potsdam Protocol;
2.
Appointment of inter-Allied reparation agency;
3.
Interim definition of restitution;
4.
Proposed conference on division of reparation deliveries from the Western Zones.

[Page 1279]

For your information cabling text of (1) draft reply to Control Council proposed by Waley (2) restitution proposal by Waley after consultation with French.

Understand Waley has already arranged FonOff send you proposed text of agreement16 for creation Inter-Allied Reparation Commission referred to in agenda Nr 2 as inter-Allied reparation agency. Assume you have this text which defines agencies duties to include receiving reparations claims from countries entitled thereto, all allocating materials between such countries from lists of such material when received from Control Council.

Text of above-mentioned draft reply to Control Council follows:

“1.
The Allied Commission on Reparations has the honor to acknowledge receipt of the Control Council’s letter dated the 30th August 1945.
“2.
The Commission consider that the policies in relation to reparation embodied in sections III and IV of the Berlin Protocol of August 1, 194517 enable the Control Council to begin the determination of the amount and character of the industrial equipment unnecessary for the German peace economy and therefore available for reparations. The Commission have not up to the present fixed any further policies in regard to such determination.
“3.
The Commission desires to be kept closely informed of the work of the Control Council in regard to such determination. The Commission have decided to appoint for this purpose a liaison committee in Berlin.
“4.
The Commission will be ready to consider any questions of policy which may arise during the above-mentioned determination or during the working out of practical arrangements for advance deliveries. They request that the Control Council will inform the Commission’s liaison committee as soon as any such questions of policy arise.
“5.
The Commission draw the attention of the Control Council to the need for pressing forward with all possible speed both the abovementioned determination and the practical arrangements for advance deliveries to all countries entitled to reparation in the form of industrial equipment from the Western Zones.

Above-mentioned restitution proposal follows:

1.
Identifiable property existing at the date of the invasion of the territories from which the property was removed should be restored to the government of that territory in so far as it can be recovered and irrespective of the form of dispossession by which it had come into enemy hands.
2.
In the first instance the property so restored shall provided it is covered by the terms of paragraph 1 above include: (a) monetary gold, valuables and securities; (b) works of art, religious, historical, [Page 1280] educational or cultural objects, libraries, scientific equipment and other laboratory or research materials related to organized inquiry into the arts and sciences; (c) heavy and power-driven industrial equipment and machinery unique in character; (d) rolling stock, other railroad or transportation equipment, communication and power equipment at such date and subject to such conditions as may be arranged with the Control Council and any other inter-governmental authority concerned with transportation questions.
3.
Replacement of property which no longer exists by similar property should be confined to category (b) above (works of art etc.).
4.
The above paragraphs 1 to 3 are without prejudice to the point of view of the French Government in regard to the restitution of monetary gold which will be further discussed as soon as possible by the governments concerned.
5.
The question whether any particular property comes within the scope of paragraph 1 above and the ownership of such property shall be determined by an inter-Allied agency to be appointed.” End of message.

[Draper]
Harriman
  1. September 3.
  2. See telegram 411, August 31, 1 p.m., from Berlin, p. 1274.
  3. Supra.
  4. Presumably the reference should be to the Report on the Tripartite Conference of Berlin, August 2; see Conference of Berlin (Potsdam), vol. ii, p. 1504.