Office of the Historian

Pauley Files

No. 968
The General Counsel of the Delegation to the Allied Commission on Reparations (Marshall) to the Representative on the Allied Commission on Reparations (Pauley)

[Babelsberg,] July 31, 1945.

Memorandum to Ambassador Pauley

Mr. Collado and Mr. Despres, of the State Department, are firm in their belief that the following subjects should be included in the final agreement between the Big Three:

1.
Restitution;
2.
Property of United Nations nationals located in Germany;
3.
German external assets.

Mr. Collado and Mr. Despres, however, have undertaken to cover these subjects by way of additions to the Economic Principles which the State Department will submit.

We do not, however, feel that this relieves you of the necessity of urging both a declaration by the Big Three on German assets abroad, [Page 929] and the issuance of an appropriate vesting decree by the Control Council (copies attached).1

You will also, of course, want to check over carefully any proposed definition of restitution although it would no longer seem to be a major factor in the reparations plan under the new proposal.

So far as the Economic Principles are concerned we have checked these over carefully and other than the proposed amendment conforming these principles to the British proposal on “first charge” no further amendments are necessary other than the deletion of the last sentence of 14–(d) and the entire paragraph 18, both of which the State Department have agreed to handle.2

Paragraph 18 deals with supplies for the Greater Berlin area and this is no longer necessary in view of the supply arrangements for food, etc., now incorporated in the reparations plan.

J H[oward] Marshall
  1. No attachments found. Cf. documents Nos. 1000 and 1003.↩
  2. See documents Nos. 878 and 885.↩