Memorandum from James S. Lay to the National Security Council, with Attachment

TOP SECRET The President E. 11652, Sec. 3(E) and S(D) or (E) DECLASSIFIED O. NSC 6.24.33 11/12/1974 OSD letter, April NATIONAL SECURITY COUNCIL By NLT- HC ? NARS Date 10-375 WASHINGTON TRUMAN September 24, 1948 s MEMORANDUM FOR THE NATIONAL SECURITY COUNCIL SUBJECT: Industrial Facilities Made Available for Reparations Under State Department Proposal REFERENCE: NSC 13/1 At the request of the Acting Secretary of State the en- closed memorandum on the above subject is circulated herewith for the information of the National Security Council in connection with paragraph 20b(2) of NSC 13/1. No action on the enclosure has been requested by the Department of State. Mr. Lovett referred to the provision in paragraph 20b(2) that "SCAP should be directed to determine, announce publicly, and make available for reparations claims, categories and quantities of industrial facilities and equipment which are in excess of the levels finally agreed to between State and Army De- partments. He stated that discussions between the Departments of State and the Army and General MacArthur had largely revolved around the question of what these levels should be. Mr. Lovett also stated that in his final letter of September 17 before leaving for Paris, Secretary Marshall had submitted his conclusions on this question to Secretary Royall with the hope that Mr. Royall would find it possible to accept them. Mr. Lovett then presented the con- clusions as attached in the enclosure for the information of the Council. JAMES S. LAY, JR. Acting Executive Secretary TOP SECRET