America at war! (1941–) – Part 5

740.00119 EW/7-1845: Telegram

The Acting Secretary of State to the Assistant Secretary of State

[Washington,] July 18, 1945
Secret
56

(For Assistant Secretary Clayton.)

Bucharest has seen a letter from Russians to Rumanian Prime Minister informing latter that German-held shares in Rumanian oil corporations “pass into the patrimony of the Soviet Union as partial compensation for damages caused to USSR by Germany.” Objectionable features of this are obvious. It (1) asserts Soviet desire for share interests as reparation or otherwise; (2) manifests USSR intention to obtain exclusionary control Rumanian oil industry; (3) bypasses current Four Power discussions regarding treatment of German assets in ex-enemy and neutral countries from economic security and reparations points of view; and (4) raises serious question regarding looted property.

Accordingly, it is suggested that positive steps be taken at Potsdam Conference to forestall this action.

In addition to basing our objections to proposed Russian action upon as many of the foregoing grounds as can be mentioned to Russians, following arguments could be advanced:

  1. No shares can be subjected to control or disposition as German by Soviet for its individual advantage unless it is established that they were not acquired by the Germans in looting transactions outlawed by United Nations’ declaration of January 5, 1943. It might be added that US would have to be satisfied that particular shares were not United Nations’ property which had been looted by Germans;

  2. shares which have met above burden of proof (i.e. shown conclusively to have been German owned through legitimate transactions) should be governed by general principles to be established by Four Powers regarding treatment of German assets in ex-enemy or neutral countries. It should be emphatically denied that such assets in Rumania pass into patrimony of USSR alone as compensation by Germany for war damage. US cannot admit competence of USSR to assert unilaterally ownership rights to German assets in ex-enemy or neutral countries. Without exception US has treated such assets coming within its control in these countries as subject to trusteeship on behalf of all four occupying powers. Similar standard of conduct expected of Soviet Union and must be strongly insisted upon. It should be obvious to Soviet Government that in three neutral Western European countries, German external assets will be principally under control of British and ourselves.

  3. Article 8 of Rumanian Armistice5 pledges the Rumanian Government not to allow the expropriation of any form of German property without the permission of the Allied (Soviet) High Command. While we recognize that protests can hardly be based on actual wording of this article, this Government maintains control should be exercised on behalf of and with respect to interests of other United Nations, particularly since Article 18 provides that Allied (Soviet) High Command, in controlling execution of Armistice, acts on behalf of the Allied Powers.

Please inform Harriman and Pauley. Inform whether this message should be repeated to Moscow and Bucharest for information.

[GREW]


800.85/7-1845: Telegram

The Acting Secretary of State to the Assistant Secretary of State

[Washington,] July 18 [1945]
Secret
57

For Clayton.

Following is for your information in event Admiral Land’s attendance at conference leads to discussion of question of inviting Italy to join United Maritime Authority. Italy has intimated its desire to be invited to join UMA and British Foreign Office has inquired as to Department’s views. Foreign Office suggests awaiting conclusion peace treaty with Italy. We have been discussing subject informally with WSA. Opinion within Department leans toward extending invitation now, in line with broad general policy of promoting resumption of responsible Italian participation in international affairs and strengthening Italian political and economic status. WSA considers invitation inopportune at this time for fear of jeopardizing smooth operations UMA. Its opposition is based on (1) apprehension of French, Greek and Yugoslav resentment, (2) belief that Italian political status first be clarified as by admission Italy to United Nations and (3) doubts as to competence Italian authorities and shipping operators to function in accordance with UMA requirements. We are not fully in concurrence these objections insofar as they touch on political relations and contemplate requesting more detail as to question of competence, particularly as to steps Italy would have to take to remove this objection. However at WSA request we intend to leave issue in statu quo until Admiral Land’s return particularly as WSA state they are taking steps meanwhile to improve Italian position by substituting specific charter arrangements in place of Admiral Cunningham Agreement as basis for control of Italian ships, by considering possibility of including provisions in charters to compensate Italy for shipping services, and by formulating with Ministry of War Transport arrangements for greater Italian participation in UMA operations in Zone III Mediterranean area.

[GREW]

The Navy Department to the Commander, U.S. Naval Forces in Europe

Washington, 18 July 1945
Secret
routine

This is serial No. 33. CominCh and CNO addressed ComNavEu for action and ComNavForGer for info and directed info to be forwarded CominCh and CNO.

Admiralty … [messages of July 7 and 11] indicate no US representation on Capcraft Commission or provision for protecting US interest in disposing of captured enemy small craft including tugs for immediate use in Pacific.

There is an immediate and urgent need for seagoing tugs in carrying out approved primary operations in the Pacific. Request you investigate and if desirable arrange equal representation on Capcraft Commission or set up counter commission for US account in order to secure all possible immediate assistance for Pacific seagoing tug requirements. Suggest substitution of captured German tugs for US tugs now operating ETO.

WSA and War Washington have been advised of Admiralty dispatches and feel their interest identical with ours and that you and local War and WSA representatives should handle to satisfactory conclusion.

868.00/7-1745

The Deputy Director of the Office of Near Eastern and African Affairs to the Assistant Secretary of State

Berlin Conference, July 18, 1945

Memorandum

Subject: GREEK ELECTIONS

The attached telegram No. 38, July 17, from the Department, makes our proposed telegram on Greek elections unnecessary.

The Department agrees with the British suggestion in substance but objects to the British text of a joint “invitation” to the Russians. The Department prefers that we and the British propose that the four powers supervise the elections rather than that the United States and the United Kingdom “invite” the Russians and French to participate. I think the Department’s point well taken and believe I can work out a suitable agreement with the appropriate member of the British delegation, if you would like me to try.

The Department also apparently wishes to limit the proposal to supervision of the Greek parliamentary elections and not to include the subsequent plebiscite regarding the King. The Department doubtless thinks that only one bridge should be crossed at a time. I agree.

G[EORGE] V A[LLEN]

740.00119 Potsdam/7-1845

The Acting Secretary of State to the Secretary of State

Washington, July 18, 1945
Secret

Memorandum for the Secretary of State

The Italian Ambassador called on me this morning and left with me the appended papers which he asked be sent to you for the President’s and your consideration during the present meeting at Potsdam. The Ambassador said that his Government is seriously worried about indications that a peace treaty for Italy might be drawn and that the British and Soviet Governments are inclined to make the terms as harsh as possible. He said that if this were done it would destroy Italian morale and make it impossible for Italy to recover its position in the world, which he believed was not in the best interests of the European nations. The Ambassador feared that the general lines for such a treaty would be laid down at the present meeting and would be accepted. He asks on behalf of his Government that the United States Government take a position at Potsdam which would avoid laying down harsh terms for Italy.

JOSEPH C. GREW

[Enclosure 1]

The Italian Ambassador to the Acting Secretary of State

Washington, July 18, 1945
N. 5760

My Dear Mr. Grew: I have just received from Rome instructions to officially thank the Department of State in the name of the Italian Government for the so encouraging assurances recently given to me and indicating the intention of the United States not to proceed to the signature of a treaty deemed inequitable or oppressive for Italy and to do their utmost, from the Potsdam Conference on, to avoid that such a tendency should prevail.

My Government have also deeply appreciated the verbal communication according to which it was the expectation of the United States Government, that before any Italian peace treaty be put in final form, a full opportunity be offered to the Italian Government to discuss it and present their views.

In consideration of the friendly spirit of such assurances, I want to convey to you personally the heartfelt and profound gratitude of my Government who have highly appreciated this new evidence of the purposes of equity and generous comprehension inspiring the United States toward the Italian nation, in the difficult international situation confronting it at the present time.

Please accept [etc.]

TARCHIANI

[Enclosure 2]

The Italian Ambassador to the Acting Secretary of State

Washington, July 18, 1945
N. 5759

My Dear Mr. Grew: My Minister of Foreign Affairs has directed me to convey to the Department of State our deepest gratitude for the action taken with regard to our declaration of war against Japan and for the very valuable advice given us.

Mr. De Gasperi has instructed me to tell the Department of State that the Italian Government is placing its highest hopes in the action that the President of the United States of America may deem it fitting to take at Potsdam for the purpose of alleviating the terms of a peace treaty for Italy. The Foreign Minister has also asked me to inform you of the following views the Italian Government has on the matter.

It is certain that, should particularly harsh peace terms be imposed upon Italy, even though not in the form of a veritable “Diktat”, thereby humiliating and thwarting the Italian nation, the orderly development of a working democracy in Italy would be seriously endangered.

. . . . . . . . . . . . . .

The basic necessity for Italy – as the Department of State fully realizes – is, at the present time, to be released from the Armistice terms, and to be internationally rehabilitated, so as to allow her to take part in the negotiations for the peace treaty in which she is concerned.

If, therefore, the action of the President of the United States and of the American Delegation at the Potsdam Conference should encounter obstacles and difficulties …, the Italian Government would deem it more preferable if provisional solutions could be adopted which, although settling the fundamental problem of the moral and juridical status of Italy, would leave open the more controversial questions, such as those of Venezia Giulia, of the final settlement of the Italian colonies, and of the fleet (the latter being bound to constitute, in the firm intention of the Italian Government, an important part of the Italian contribution to the war against Japan).

The Italian Government shall be extremely grateful to the United States if, were such a necessity to arise, they would consider it possible to withhold final decisions which would allow Italy to make some headway against opposing international currents, after having, of course, succeeded in attaining on a general basis her international rehabilitation. This would leave to time and to the evolution of the European events in general and of the Balkan situation in particular the possibility of working out with more chances of equitable solutions, a far-reaching and constructive European settlement.

. . . . . . . . . . . . . .

In bringing to your knowledge, according to instructions received, the above-mentioned viewpoints of the Italian Government, I shall be very grateful to you, Mr. Grew, if you will kindly communicate the foregoing to the President of the United States or to the American Delegation at Potsdam.

I avail myself [etc.]

TARCHIANI

The State-War-Navy Coordinating Committee to Members of the Committee Panel at Babelsberg

Berlin, 18 July 1945
Top secret
Memorandum for: Mr. Dunn
Mr. McCloy
Admiral Gardner

Subject: UNITED STATES POLICY REGARDING DARDANELLES AND KIEL CANAL

References: JCS 1418 SERIES

The attached memorandum to the Secretary of State, embodying a report by the Joint Chiefs of Staff on recommended U.S. policy concerning the Dardanelles and the Kiel Canal, is circulated for informal consideration.

It is requested that you indicate your concurrence or comments.

For the State-War-Navy Coordinating Committee:
H A GERHARDT
Colonel, GSC Acting Secretary SWNC

740.00119 Potsdam/7-1845: Telegram

The Ambassador in the United Kingdom to the Political Adviser to the Representative on the European Advisory Commission

London, 18 July 1945
Secret
urgent

Tripartite Conference Babelsberg for Mosely from Winant serial number 4307

Please read Dept’s 5766 July 14 to London repeated to Hoechst as 112. No word to date received at Soviet Embassy here from Moscow permitting clearance and signature of additional requirements agreement and agreement amending agreement on zones Germany.


740.00119 Potsdam/7-1845: Telegram

The Ambassador in the United Kingdom to the Political Adviser to the Representative on the European Advisory Commission

London, 18 July 1945
Secret
urgent

Tripartite Conference Babelsberg for Mosely from Winant serial number 4307.

… No word to date received at Soviet Embassy here from Moscow permitting clearance and signature of … agreement amending agreement on zones Germany.

The Pittsburgh Press (July 18, 1945)

JAP WAR TOPS TRUMAN’S BIG THREE LIST
Peace plan can follow, Allies told

Must spare lives, President says
By Merriman Smith, United Press staff writer

Carriers raid Tokyo again

Coast of Japan afire from Navy shells as Nips report new blow

Huge tax loophole –
Refugees clean up in market at U.S. expense

Play rising market while ‘visiting’ here
By Henry J. Taylor, Scripps-Howard special writer

Military men say –
Invasion needed to beat Japan

Enemy too full of fight to quit now
By Lyle C. Wilson, United Press staff writer

Army may bump riders in coaches

All railcars put at troop disposal

16 in Army listed in Red inquiry

Joe Lash among those named

Mystery of the century –
‘Hitler not here,’ Argentina says

But rumors persist in Buenos Aires

Poll: 69% of public still favors peacetime military drill

Congressional hearings on plan result in little change of sentiment
By George Gallup, Director, American Institute of Public Opinion

You can’t sail ships closer to Japan and still float

Half-a-ton of steel per second poured into enemy war plants by U.S. battleships
By Richard W. Johnston, United Press staff writer

Formosa pounded by U.S. bombers

I DARE SAY —
Mama knows best

By Florence Fisher Parry

Bus plunges into creek; baby drowns

44 passengers, driver rescued


Evicted veteran’s family ‘loaned’ mansion for home

Invalidated officer wife, 3 children overawed; will stay until they get house

‘Europe after the war’ –
Atlantic spanned, customs cleared, four meals eaten – all in 18 hours

Press aviation editor flies to London to begin tour of battle-ravaged Europe
By Henry Ward

Senators to probe Chennault move