740.00119 Council/5–1848: Telegram
The Ambassador in the United Kingdom (Douglas) to the Secretary of State
2148. Delsec 1740. Informal meeting territorial talks today1 discussed Benelux letter of May 122 which proposes setting up commissions to study Benelux territorial and economic claims on Germany and to submit recommendations before September 1.
Van Verduynen stressed these claims put forward in order seek legitimate compensation for war losses; that present plan to constitute [Page 250] German Government early date indicated importance reaching decision these claims soon as possible since Benelux had no confidence they would ever be met if left to German Government.
Massigli stated his government sympathized Benelux position and believed it was high time set up commission to examine Benelux claims on understanding final solution would await peace settlement. He too felt that longer compensation delayed less likely obtain satisfaction.
Strang mentioned various difficulties involved in considering these claims at this time when western Germany being integrated into western Europe under ERP. He felt question should be considered in light of these new circumstances and must also consider effect substantial territorial changes would have on German economy. Furthermore there is formal difficulty in having three powers take even provisional decisions affecting external boundaries of Germany.
Van Verduynen made clear he was not asking present meeting decide claims but merely set up commission to study claims which he felt had not as yet been given sufficient consideration.
Douglas indicated surprise that Benelux raised question economic military claims which not on agenda present meeting. He mentioned complications involved such as extra territorial rights and claims antedating war. Article 2 (A) of Reparations Agreement of 1946 was drawn up for purpose settling economic claims. He felt strongly they should not be discussed at present meeting. He had no objection discussing territorial claims, which were on agenda, but referred to Article 2 (B) of Separations Agreement which envisages possibility of submission of political, territorial or other demands in connection with peace settlement. Since we are not making peace settlement here in London he wondered whether it was appropriate to discuss such claims in detail.
Van Verduynen said he would have no objection to this if there were any immediate prospect of having peace settlement. He stressed relationship between economic and territorial claims, point which he recalled was clearly stated in Benelux claims presented to CFM Deputies. His government, realizing full compensation could not be met by cession of territory, had supplemented demands by certain economic claims. He made clear in reply to questions by Douglas that economic claims would increase if less satisfaction obtained on territorial demands and vice versa.
De Gruben believed recommendation (decision) taken here in London had definite bearing on peace settlement as they would later presumably be made part of that peace settlement with German Government. He too referred to close relationship between territorial and economic claims, both of which based on principle of compensation.
[Page 251]Douglas saw difficulty in dealing with territorial claims of Benelux only when certain other governments also had similar claims against Germany. He hoped Benelux would review demands for compensation in addition to reparations in light of new situation, particularly in light of passage of ERP. He made clear in this connection that effect of approving additional compensation by Germany would either (1) impose still heavier burdens US Government or (2) increase level of industry in Germany.
Van Verduynen replied that he understood situation but still hoped it would be possible to set up special commission to examine problem in all its aspects, taking into account not only interests of Germany, but interests of other countries.
Douglas stated he was principally worried regarding Benelux economic claims, which he was not willing to have studied by special commission. He had no objection considering question of setting up commission to examine territorial claims, if it were understood that no major modifications in western boundaries were involved. He indicated US Government could only approve minor frontier rectifications and then only if wishes of population of affected areas were taken into account.
Strang agreed with Douglas and meeting adjourned without reaching agreement. Question will be discussed further tomorrow.
Sent Department 2148. (Department please pass Moscow as 81); repeated USPolAd Berlin 133, Paris 218, Brussels 77 (Brussels please keep Luxembourg informed), The Hague 41, Oslo 38, Copenhagen 32, Stockholm 51 and Rome 131.