Foreign Relations of the United States: Diplomatic Papers, 1945, European Advisory Commission, Austria, Germany, Volume III

740.00119 Council/9–1745

The Acting Secretary of State to the Ambassador in the United Kingdom (Wincant)

Washington, September 17, 1945—8 p.m.

8077. Secdel³⁹ 68. Dept understands French will bring up question of restitution of looted property in Council of Foreign Ministers. Reinstein⁴⁰ on your staff is acquainted with background of restitution question.

Dept sympathetic with French view that restitution should be accelerated. Restitution of works of art from US zone of occupation in Germany now proceeding. General Clay recently requested clearer definition of U.S. restitution policy⁴¹ and stated his view that restitution of identifiable articles taken without payment by Germany should be made to extent that such restitution (a) does not interfere with agreed reparations program, and (b) will not result in relief needs in Germany which would lead to U.S. financing in part such restitution. Clay proposed claimant governments be invited to submit lists of looted property and be permitted after examination of such lists to send small missions to assist in identification and return of looted property. At suggestion of Dept and with Pauley’s approval War Dept has sent instructions to Clay approving his restitution proposal for immediate application in U.S. Zone with modifications making clear that (1) it is unnecessary to investigate question of payment by Germany for property taken from occupied countries, (2) interference with agreed reparation program will be avoided by maintaining system of receipts and records, and (3) restitution of looted property should not be delayed on ground return of such property would give rise to import requirements. Moreover under these instructions restitution will for present be confined to United Nations and will not include gold, silver and securities regarding which U.S. policies are being formulated. Similar instructions going to General Clark⁴² in Austria. Dept is inviting Govts of United Nation countries to submit lists of looted property with some indication of priority attached to return of individual items or categories of items in terms of reconstruction needs.

Meanwhile Dept also proposing directive on restitution for issuance by JCS to be submitted to CC, Germany and AC, Austria for agreement on application in all zones of occupation. This draft directive also confines restitution for present to United Nations and makes no provision as yet for immediate restitution of gold, silver or securities. Also no provision made yet for replacement in kind for work[s] of art because Dept considers decision on this question can wait until it is ascertained what proportion of looted art can be found and returned.

In view of these developments and fact that Marshal Montgomery⁴³ has also received instructions on restitution French should be urged strongly to submit their views on restitution to Control Councils in Germany and Austria for negotiation.

Acheson

39. Designation for Department telegrams sent to the United States Delegation to the Conference of Foreign Ministers in London.
40. Jacques Reinstein, Associate Chief, Division of Financial Affairs, Economic Adviser, United States Delegation to the Council of Foreign Ministers.
41. See telegram 447, September 4, 8 p.m., from Berlin, p. 1282.
42. Gen. Mark W. Clark, Commanding General, United States Forces in Austria; United States High Commissioner for Austria; United States Representative, Allied Council for Austria.
43. Field Marshal Sir Bernard Montgomery, Commander in Chief, British Forces of Occupation in Germany; Military Governor, British Zone in Germany; British Representative, Allied Control Council for Germany.