740.00119 Council/4–1947: Telegram
The Secretary of State to the Acting Secretary of State
urgent
1469. Delsec 1445. For Acheson from Marshall. Bevin yesterday discussed with me various questions relating to US-UK bizonal arrangements in Germany and British proposal to raise the level of industry of a bizonal basis with view to resuming and completing reparation deliveries as soon as possible. Immediately following telegram87 is an [Page 357] approved joint memorandum of our conversation. Note that Clay and Robertson will discuss bizonal problems further in Berlin and recommend jointly to Bevin and me.
Regarding level of industry, Bevin proposed immediate announcement of US-UK agreement to raise level of industry based on ten million tons steel production, to be followed by allocation of plants available for reparation on basis of Potsdam division. I suggested we postpone any announcement for six weeks or so and that we reserve decision on steel figure pending study in Berlin.
In my judgment necessary to resume reparation deliveries soon if IARA countries are to receive reparations and Germans are to know where they stand. But note second sentence of paragraph two of memo for timing in this matter. Do not believe it desirable politically to resume reparation deliveries except on basis of Potsdam division with four power allocation in ACC and deliveries to Soviet Union.
Repeated Berlin for Clay, as 302.
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