740.00119 EW/9–3045

The United States Representative on the Allied Commission on Reparations (Pauley) to the United States Military Governor for Germany (Eisenhower)

My Dear General: The attached Proposed Principle on Restitution was prepared by and has the approval of the State Department. I submitted it for the consideration of the Allied Commission on Reparations in Moscow on August 12, 1945. No action was taken, however, since the Representative of the Soviet Government on the Commission indicated he was unauthorized at the present time to discuss restitution as a matter which necessarily fell within the jurisdiction of the Commission.

In the meantime, you as the U.S. Zone Commander are authorized in so far as the U.S. Representative on the Allied Commission on Reparations is concerned to conduct removals on the basis of this definition without any further or additional approval as heretofore required from Moscow on June 27, 1945.81 However, in any case where “restitution” of property, other than art objects, of the character defined in this proposed definition is requested by any allied government, any removal of such property should be made only if the government of the receiving country agrees, by executing a formal receipt stating that the property in question may ultimately be deemed “restitution”, “reparation”, or an “export” for which payment shall be made in an acceptable currency. Unconditional “restitution” of art objects is authorized by a memorandum previously submitted by Assistant Secretary of State Clayton and myself.82

I will appreciate it if you will keep the necessary administrative records on any removals of the foregoing character which may be made and forward to me a report on this subject from time to time.


Edwin W. Pauley
[Page 1261]

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 and power driven industrial and agricultural equipment, and unique machinery;
Rolling stock, other railroad or transportation equipment, communication and power 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.83
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. See Conference of Berlin (Potsdam), vol. i, pp. 513515.
  2. Ibid., vol. ii, p. 924.
  3. Subsequently, War Department telegram 70762, September 27, from the Civil Affairs Division of the War Department, informed General Clay in Berlin that Mr. Pauley agreed that interim restitution should not be limited to these categories although most goods were expected to fall within them. (Copy obtained from the Department of the Army files.)