Foreign Relations of the United States Diplomatic Papers, 1937, The British Commonwealth, Europe, Near East and Africa, Volume II

462.11L.5232/903

Memorandum by the Counselor of the Department of State (Moore)⁵⁴

Although the note of the German Ambassador of April 5, 1937, regarding the so-called sabotage claims pending before the Mixed Claims Commission, United States and Germany, has been acknowledged, in view of the present situation it seems desirable that some reference should be made to the statements therein contained, as follows:

1. That Mr. Robert W. Bonynge, the American Agent before the Mixed Claims Commission, and Mr. Harold H. Martin, his Counsel, who were sent to Germany, did not “choose to call at the Foreign Office” but instead had their discussions at Munich with Hauptmann von Pfeffer;

2. That the Munich settlement presupposed that it was to be the first step in an energetic effort to improve the relations between the two countries; and

3. That the effect aimed at was finally to dispose of in their entirety all claims still pending before the Mixed Claims Commission, but that it has become apparent in the meantime that the presuppositions on which the settlement was based cannot materialize and reference is made in this relation to the protests lodged with this Government by the holders of earlier awards by the Commission against the outcome of the Munich discussions, which protests this Government had instructed its Agent to submit to the Commission and to acquiesce in the requests of the awardholders to be heard by the Commission.

As to the first of the numbered paragraphs it should be remarked, as has previously been explained to the present German Ambassador, that Messrs. Bonynge and Martin did not call at the German Foreign Office for the reason that on reaching Germany they were met by a representative of the German Government, Mr. von Deichmann, and were advised by him that the negotiations would be held in Munich with Herr von Pfeffer. Messrs. Bonynge and Martin state that they at no time received any intimation that they should call at the German Foreign Office.

As to the second of the numbered paragraphs it should be said that the correspondence exchanged between the Department of State and its Embassy in Berlin and between the Embassy and officials of the German Government makes it perfectly clear that the settlement of the sabotage claims was not in anywise to be conditioned upon the discussion or settlement of other matters. The pertinent parts of this correspondence have been filed with the Mixed Claims Commission by the American Agent.

With respect to the third of the above-mentioned points raised in the note of April 5 it should be remarked that, in view of the protests made by the awardholders against the Munich settlement, and inasmuch as that settlement required action by the Commission, it was thought only proper that the whole situation should be considered by the Commission; hence the instruction to the American Agent that he should not oppose the petitions of the awardholders to be heard. This matter, however, has now become academic in view of the recent arrangement between the awardholders and the sabotage claimants by which their conflicting interests and views have been reconciled.

Washington , July 8, 1937.

54. Copies of the memorandum were given to Mr. Thomsen of the German Embassy and to Mr. Martin of the Mixed Claims Commission.