Cablegram 4 (extracts) CANBERRA, 8 January 1945
SECRET
Reparations.
1. We are somewhat concerned at manner in which question of
reparations in Europe is being approached. We have examined United
Kingdom and United States Departmental studies on subject,
American submission to Moscow Conference, and proposal last
September for discussion in European Advisory Council (see D.1405
that separate arrangements are being made under successive
European Armistices regarding the amount of reparations,
allocation and method of delivery . . . Proposals made regarding
Hungarian draft armistice (see D.1815 [2]) suggest that United
States Government is now accepting piece-meal approach to
reparations and is willing to establish separate machinery for
supervision of reparations in each enemy country and to lay down
principles of reparation payment in each separate Armistice.
[matter omitted]
3. It is important-
(A) To prevent reparations from becoming cause of disputes;
(B) To ensure that reparations are used as an instrument for the
rehabilitation of Europe and
(C) To ensure that they are not an obstacle to post-war trade and
prosperity.
4. The seemingly haphazard way in which the subject is now being
handled would appear to leave such hopes small prospect of
realisation. You are asked to convey informally to United Kingdom
Authorities our concern at position and to forward any information
that may be available regarding prospects of establishing
comprehensive supervision over European reparations.
[AA:A1066, H45/1015, i]
1 Dispatched 18 September 1944. On file AA:A989, E44/360/3/1.
2 Dispatched 16 December 1944. In AA:A3195, 1944, Folder, Inwards
Top Secret Master Sheets, from Secdomin, D Series, September-
December, 1.44731/32.
[1]). In spite of these comprehensive proposals it now appears
