CFM Files: Lot M–88: Box 152: SFM Documents 1–40
Report of the Intergovernmental Study Group on Germany1
Intergovernmental Study Group on Germany
report to the foreign ministers
The Study Group submits to the Ministers of Foreign Affairs the following reports on the various items in its terms of reference:
- 1. Reports on the revision of the Occupation Statute:
(a) Formula regarding the legal status of the Federal Republic and interpretative minute.
(b) Report on the status of treaties of the former German Reich.
(a) Report on Claims.
(b) Report on other Economic and Legal issues arising out of the war.
- 4. Report on the Termination of the State of War.
- 5. Report on the implementation of Articles 18 and 19 of the Ruhr Agreement.
- 6. Report on the definition of German co-operation required to warrant the relinquishment of controls.
The recommendations made in these reports are based upon the following principles laid down by the Ministers in their declaration of the 14th May, 1950:—
- It seems necessary to enable a new phase to be opened in the relations between Germany and the Allies by building up the prestige and authority of the Federal Government and by considerably reducing the controls to which that Government is still subject. These controls should themselves be reduced to the minimum which is indispensable in order to safeguard the security and basic purposes of the occupation.
- In building up the powers and prestige of the German Government, the framework of the occupation regime, based on supreme authority, should be respected. Relations between the Germans and the Allies should, therefore, continue to be governed by a Statute of an imposed, and not negotiated, character. The occupation cannot be placed on a contractual basis.
- It is necessary to bring relations between Germany and the Allies back to normal, by eliminating the consequences of the state of war, on the understanding that the measures proposed should not be capable of being interpreted, in any way, as constituting a separate peace settlement with Western Germany.
In the preparation of its report, the Study Group has had the benefit of a large body of information prepared by the Allied High Commission concerning its experience under the existing Statute, as well as the views of the High Commission on measures which would have to be taken in certain cases to permit controls to be relaxed.
The Study Group has met with representatives of the Benelux countries from time to time to inform them of the progress of the work and to solicit the views of the Benelux countries with respect to certain matters of particular concern to them.
In view of the decision to convene a meeting of the Ministers in mid-September, it has been necessary to complete a report by the beginning of the month, thus shortening the period available to the Study Group by some weeks. In spite of the short time available, the Study Group has been able to discuss in substance all of the subjects referred to it, with the exception of the question of foreign interests in Germany. The Study Group has been able to submit agreed recommendations on all items of its Agenda, except certain points on the Occupation Statute and claims against Germany (see attached list). The recommendations, therefore, represent a wide area of agreement.
I. Summary of the Study Group’s Recommendations.
(a) Occupation Statute.
Separate reports are submitted on this item. The first is solely concerned with questions of substance and enumerates the points on which a reduction of Allied Powers, and an extension of the powers and competence of the German authorities, could be recommended.2 The second concerns the form which the proposed changes of substance might take, and on this it has not been possible to submit agreed conclusions.3 This is a point of particular importance, to which the special attention of Ministers is drawn.
The recommendations of the Group in effect profoundly alter the present Allied powers and amount to a considerable increase in the powers and competence of the German authorities. Among other things they would give the Federal Government wide powers in the field of foreign affairs and enable it to establish diplomatic relations with other countries of the free world. They would also provide for drastic reduction of controls in the internal field. It is essential to [Page 1250] obtain the benefit of any decisions that may be taken on these lines by giving them the best possible presentation from the viewpoint of German public opinion. The Study Group nevertheless recognizes that the method of such presentation raises difficulties, in view of the fact that in most cases Allied powers can be abandoned only in part or conditionally.
Two forms of revision have been proposed: the French and United Kingdom Delegations suggest a new revised Statute, accompanied by a declaration enumerating, in a positive manner, the new powers of the Federal Government. The United States Delegation has expressed its preference for altering the Statute by an instrument of revision which would set forth only the restrictions to be made in Allied powers or the areas in which the competence of the German authorities would be enlarged.
It has been agreed that each Delegation should prepare drafts on the basis of these two forms of revision, in order to enable the Ministers to reach a conclusion.
(b) Status of the Federal Republic and restoration of normal relations with the free world.
The Study Group has submitted a series of recommendations which, taken together, would provide a basis for the resumption, as far as possible, of normal relations between the Federal Republic and the countries of the free world.
Status of the Federal Republic.
The Study Group has agreed on a formula defining the attitude of the three Governments vis-à-vis the Federal Republic and also an interpretative minute defining exactly the scope of this formula.4 This formula has been drafted in a way calculated to reinforce the prestige and authority of the Federal Government to the maximum extent possible whilst avoiding the considerable difficulties which would be raised, both from the point of view of the powers of the Occupation authorities and from that of relations with the U.S.S.R., by a recognition of the Bonn Government as the de jure government of all Germany. The formula also enables the Federal Republic to assume, on a provisional basis and with due regard to the limited territorial scope of its authority, the rights and obligations of the former Reich.
In regard to the Status of the treaties of the former German Government, a proposal for a practical solution has been made, under the terms of which the various interested governments, as well as the Federal Government, would be invited to declare which of the treaties they would like to see revived.5 It would then be for the High Commission, after consultation with the Federal Government, to declare the treaties in question applicable to the Federal Republic.
It is also recommended that the Federal Government should assume responsibility for the pre-war external debt of the former German Reich.6 This would establish a basis for the provisional settlement of these obligations as part of a more general arrangement on claims. The Study Group has, however, been unable to submit agreed recommendations on a plan for dealing with Claims. Although there was agreement on certain aspects of the problem, it was not possible to agree on the basic question of the scope of the plan.
Termination of State of War
The Study Group considered that the formal continuation of the state of war with Germany in Allied municipal law constituted one of the principal obstacles to the integration of the German Federal Republic in the Western community. The Study Group recognised that, in view of the unconditional surrender and the assumption of supreme authority in regard to Germany, it was sufficient for the various Allied countries concerned to take the necessary action in municipal law, in order to settle this problem.7 It is accordingly recommended that such action be taken by the three Occupying Powers. It is hoped that this would be followed by similar action by other friendly powers.
Under the legal system in the United States, special problems arise in connection with the termination of the state of war with Germany. These are being investigated. If they cannot be solved, the United States may find it difficult to terminate the state of war without some qualification or limitation.
It should be emphasized that the termination of the state of war in the manner recommended above in no way affects the obligations of Germany nor the rights and powers of the Occupying Powers, and does not prejudice the peace settlement.
(c) Articles 18 and 19 of the Ruhr Agreement.
The Study Group has examined the question of the transfer of powers contemplated on Articles 18 and 19 of the Agreement establishing the International Authority for the Ruhr. It came to the conclusion that it was premature to reach a decision on this matter.8 It should be pointed out that the Study Group’s recommendations do not include any change in the provisions of the Occupation Statute concerning controls in regard to the Ruhr. The question of transfer therefore remains reserved for later examination.
The various recommendations outlined above are all inter-related and constitute a single programme.[Page 1252]
II. Implementation of the Group’s recommendations.
The Study Group recognise that the programme outlined above should not be implemented until the Germans have given concrete proof of their good-will.
The measures of co-operation required of the Germans may be subdivided as follows:
- those involving undertakings e. g. in the case of equitable treatment of foreign nationals, Displaced Persons, and refugees and with respect to the Claims question;
- those involving specific action, which would constitute a prerequisite for the abandonment of controls in certain fields.
The Study Group considers that the undertakings referred to in (1) above should be embodied in an agreement on the Petersberg model.9 It would be desirable that these undertakings be endorsed by the Federal Legislature, so as to make clear their binding character on the Federal Republic.
Every precaution should be taken to avoid giving the impression that the agreements constitute a first step in the direction of a negotiated Statute on the lines requested by Chancellor Adenauer in his recent memorandum.10 There should be no change in the present Statute before the Federal Government has given the above-mentioned undertakings. When these undertakings have been given the revision of the Statute will come into force. The reserved powers will be relinquished to the extent recommended in the various fields independently of one another, as and when the conditions laid down have been fulfilled.
It will be necessary for Ministers to determine when announcements shall be made of the terms of the revision of the Statute, and any other decisions to be made public.
III. Additional Decisions Needed From the Ministers.
- In the light of the recommendations which have been made by the Study Group, it is recommended that the Governments of the Occupying Powers review the Agreement on Tripartite Controls and the Charter of the Allied High Commission.11
- There has as yet been no review of the Statement of
Principles Governing the Relationship between the Allied
Kommandatura and [Page 1253]
Greater Berlin.12 The Study Group also recommends that the
Ministers charge the High Commission with the review and
revision of the Berlin Statement of Principles in the light
of the decisions taken with respect to the Occupation
Statute for the Federal Republic. The following principles
should guide the High Commission in its work.
- For political reasons, the revisions of the Occupation Statute should be followed to the maximum extent possible in the Berlin Statement of Principles, while taking into account the special considerations arising out of Berlin’s position.
- The reserved powers in the Statement of Principles which are not in the present Occupation Statute should also be revised so as to grant the maximum freedom to the Berlin City Government and people consistent with the special considerations mentioned above.
- The U.S. and U.K. Delegations recommend that the Foreign Ministers should consider what action should be taken in regard to the Agreement on Prohibited and Limited Industries, with reference to which the U.S. Delegation has submitted a proposal which is attached.13 The French Delegate stated that he would inform government of the recommendation and of the proposal.
IV. Further Work.
The attention of the Ministers is called to the fact that a certain number of questions raised in the present report are to be the subject of subsequent and more detailed study. In addition, the recommendations submitted by the Study Group involve decisions of principle which, if adopted, would require implementation. They would constitute directives to whatever bodies were charged by the Ministers with the further work required to place the recommended programme into effect.
The following recommendations of the Study Group require further work, at least initially, on the governmental level:
- Preparation of a revised Occupation Statute or instrument of revision.
- Further study of reserved power over foreign interests.
- Drafting of German undertakings with respect to debts.
- Preparation of a plan for handling claims.
- Preparation of notifications concerning former German treaties.
- Review of Agreement on Tripartite Controls.
- Review of Charter of the Allied High Commission.
- Implementation of Article 18 and 19 of the Ruhr Agreement.
In cases where further study at governmental level is not required, implementation of the Ministers’ decisions should, unless otherwise indicated in the Study Group’s recommendations, be undertaken by the High Commission. With respect to items 6 and 7, there should be close consultation with the High Commission.
If the Ministers decide that the Agreement on Prohibited and Limited Industries should be reviewed, this subject should also be dealt with on the governmental level.
- Attached to the source text was a cover sheet, dated September 7, not printed, which Indicated that this paper was designated Document 15 [D–3] when it was submitted far the consideration of the Foreign Ministers. Another copy of the report in file 396.1–ISG/9–550 bears the signature of Massigli, Gainer, and Holmes, the representatives to the Study Group of France, the United Kingdom, and the United States, respectively. The report was discussed by the Ministers at their third and fifth meetings on September 13 and 18.↩
- IGG (50) 98 Final, attachment 1a, p. 1255.↩
- IGG (50) 125, attachment 1b, p. 1264.↩
- IGG (50) 103 Final, attachment 2a, p. 1266.↩
- IGG (50) 115 Final, attachment 2b, p. 1267 ↩
- IGG (50) 113 Final, attachment 3a, p. 1268.↩
- IGG (50) 93 Final, attachment 4, p. 1271.↩
- IGG (50) 76 Final, attachment 5, p. 1272.↩
- For text of the Petersberg Protocol, dated November 22, 1949, see Foreign Relations, 1949, vol. iii, p. 343.↩
- Of August 29; scheduled for publication in volume iv.↩
- For text of the Agreement as to Tripartite Controls, see Foreign Relations, 1949, vol. iii, p. 181; for the text of the Charter of the Allied High Commission, see Germany 1947–1949: The Story in Documents (Washington, Government Printing Office, 1950), pp. 398–406.↩
- For text of the statement of principles, see Germany 1947–1949: The Story in Documents (Washington, Government Printing Office, 1950), pp. 324–326.↩
- For text of the Prohibited and Limited (Restricted) Industries Agreement, see ibid., pp. 266 ff. For the text of the United States proposal, see IGG (50) 108, unnumbered attachment, p. 1275.↩
- Attached to the source text was a cover sheet, dated September 4, not printed, which indicated that this report was approved at the 8th plenary meeting of the ISG.↩
- The brackets in this and the following attachments are in the source texts.↩
- For the text of High Commission Law No. 27, Reorganization of German Coal and Iron and Steel Industries, see Laws, Regulations, Directives, and Decisions of the Allied High Commission for Germany, from September 21, 1949 to September 20, 1950 (Bonn–Petersberg, Allied General Secretariat, undated), p. 155.↩
- Not found in Department of State files.↩
- Attachment 4, below.↩
- Attachment 1a, p. 1255.↩
- For the text of the Ruhr Agreement, see Foreign Relations, 1948, vol. ii, p. 484.↩