TO DEAN ACHESON April 7, 1947

47.04.07A (329w)

TO DEAN G. ACHESON April 7, 1947 Radio No. DELSEC 1397. Secret Moscow, USSR

For Acheson from Marshall. There follows now brief of private conversation I had with Bevin on 5 April:1 Bevin felt that the British would soon propose a prompt determination of revised level of industry in Germany based on 10 million tons of steel per year as foundation, with stipulation that no additional costs for British taxpayer would be permitted. He recognized that this procedure would involve a re-determination of the reparations plant transfers, and that some compensation would be necessary. He felt this could be done as a practical application of Potsdam rather than a departure from it. Bevin expressed concern over progress of reparations through plant removals and stated that it was an unprofitable procedure, particularly for Russia, where reports indicate that machinery of transferred plants is now lying out in the open on railroad sidings. I explained to Bevin the delicacy of discussing reparations in recompense for the non-transfers of plants previously allocated. I stressed our desire to avoid not only additional expense to the American taxpayer, but also any basis of payment which would be a continued source of altercation. I agreed that American and British representatives should get together to see if they could work out an agreed US-British proposal to put forward at the conference table. Mr. Bevin brought up the establishment of a high commissioner in Singapore, which would be the British point of outlook in the Far East. He hoped we would station a liaison officer there, and stated that no such proposal had been made to the Soviets. He did not ask for an answer at this time, and gave me no papers on the subject. Memorandum of conversation follows by courier pouch.

NA/RG 59 (Central Decimal File, 740.00119 Council/4–747)

1. The ninety-minute meeting and lunch took place in Marshall’s quarters in Spasso House. The Memorandum of Conversation is in Foreign Relations, 1947, 2: 309–11.