396.1–ISG/2–2751: Telegram
The United States Delegation at the Intergovernmental Study Group on Germany to the Secretary of State 1
Sigto 474. At present rate of progress, we see no hope of completing work of ISG until late April. We had hoped to complete all old agenda items except debts by the end of February. Foreign interest and restitution can be wound up in another week or ten days. When PLI will be completed is uncertain. Discussions on debts are going more slowly than we had originally anticipated. It seems unlikely that stage one on debt discussions can be completed before the end of April.
Neither British nor French have displayed desire for speed on additional work resulting from Brussels agreement. British believe it would be desirable to have general discussion between the alternates and special committee of HICOM 2 before ISG takes up question of procedure referred to under last paragraph of Brussels agreement. British have asked Kirkpatrick to propose such a meeting in HICOM informally to US and French High Commissioners.
They suggested that meeting should be after list of subjects for study has been given to Germans and in any event not until March 6.
Two items (reparations and claims) recommended by HICOM for ISG study have not been approved by governments. Informal discussion with Sauvagnargues indicates French not prepared at this time to act on recommendation. They question whether any action should be taken on waiver of claims. While as reported separately, they have agreed to explore subject informally, they are not willing to have it go formally on ISG agenda.3 In addition, they wish to defer action until proposed meeting of alternates with special committee of HICOM has taken place.
In view of foregoing, our target date for winding up of ISG agenda, bringing debt discussions to end of stage one, is end of April. We contemplate short recess at Easter of steering committee and possibly of claims committee. This would permit Reinstein and possibly one or two members of the delegation to return to Washington for consultation during week following Easter. Agreement on this schedule not yet reached with British and French.
Telegram follows on personnel questions involved in ISG discussions. Within next few days will telegraph on location and arrangements for subsequent discussion on debts.