Pauley Files

No. 974
Draft Memorandum by the Assistant Secretary of State ( Clayton )1

Memorandum for General Clay

We request that you urge the Control Council to adopt the attached proposed principle on restitution to supplement the economic principles and the reparation agreement approved by the heads of Government.

W. L. Clayton

Proposed Principle on Restitution

Removals as restitution shall be governed by the following:

Upon application by any Allied Government, restitution may be made of the following categories of property, wherever found, if such property is identifiable and was removed from occupied territory by the enemy by whatever means:
Heavy industrial and agricultural equipment, and unique machinery;
Rolling stock and other railroad or transportation equipment;
Works of art, religious, historical, educational, or cultural objects, libraries, scientific equipment, and other laboratory or research materials related to organized inquiry into the arts and sciences.
All questions of restitution shall be dealt with on behalf of the injured property owners by the Allied Nations of which they are citizens, unless such Allied Nation shall make other arrangements with the Allied Nation from whose territories the property was removed.

  1. Pauley reported to Byrnes on August 10 that this memorandum “was not officially given to General Clay but [was] discussed with him and we mutually decided that in its presently proposed form it was incomplete and in view of the circumstances concerning the reparations agreement we should before taking definite action on a proposed definition on policy concerning restitution get the advice of other countries concerned in both restitution and reparation.” (File No. 740.00119 E. W./8–1045)
  2. Space was provided for Pauley’s signature also, but Pauley did not sign the draft memorandum. See footnote 1, supra.