Foreign Relations of the United States, 1951, European Security and the German Question, Volume III, Part 2

396.1–ISG/4–1551: Telegram

The United States Delegation at the Intergovernmental Study Group on Germany to the Secretary of State ¹

confidential

London, April 15, 1951—4 p. m.

Sigto 596. Roundup of ISG discussions. Discussions were resumed April 9 and substantial progress made during week.

1. First discussion took place by steering committee on procedures for dealing with contractual arrangements affecting interests of foreign-occupation powers (last para Brussels’ directive) on basis of paper submitted by British del, IGG/P(51)74.² Discussion began with rehash of argument which took place at joint mtg in Bonn (ref Bonn 653, March 21, rptd London 178, Paris 190³). French rep objected to making contractual arrangements in form of intergovernmental agreements and permitting other govts to adhere to them. US and UK reps stated that certain subjects cld only be dealt with by agmts having intergovtl character. Question was not merely one of the legal status of agreements in Germany but also in allied countries. They proposed that, in such cases, surrender of reserved power be included in separate instrument from substantive agreement dealing with subj matter. French rep accepted this concept. Comite then agreed on tentative identification of subjects involving interests of other countries and extent of interest, to be used as basis for further discussion of procedure for determination of countries concerned. Discussion to be resumed April 19.

2. Steering comite reviewed procedure for discussion of debt settlement and agreed revision wld be necessary in order to provide more adequate preparation for conference with Gers, other govts and creditor interests. Discussions are continuing. Meanwhile working party drew up plans for administrative arrangements.

3. Legal Comite submitted disagreed report on waiver of claims,⁴ French rep continuing to object to waiver. Steering comite discussion resulted in some progress. It was agreed to exclude from discussion claims arising from the exercise of supreme auth, although US and UK reps reserved rights of their govts to obtain from FedRep general waiver of financial claims against their govts in connection with settlement postwar civilian supply debt. Alternative drafts are being prepared, in form of waiver by FedRep and HICOM law, on wartime private claims. Drafts also being prepared on waiver of wartime govt claims. Legal comite was instructed to consider further French assertion unconditional surrender and various postwar agreements can be used to bar claims arising since surrender which are not related to exercise supreme authority.

4. Steering comite had first discussion divesting of title law which it agreed must be considered in relation to disposition of Control Council Law 5. Discussion continuing.

5. Working party on reparation reported on the residual issues, other than those connected with safehaven program, in which governmental decision is required. Report not yet discussed by steering comite.

6. Outstanding points on restitution discussed and seemed on way to early final solution. British indicated they were not ready to discuss general claims law, which it was agreed to take up in connection with Israeli reparation claim.⁵

7. Discussion in steering comite indicated French and British not prepared at this time to accept US proposal return to Gers of Ger libraries in Italy. British proposed one last effort to settle problem quickly on basis compromise agreement reached in May 1950. If this proved impossible, alternatives then to be considered. Discussion continuing.⁶

8. French made statement in steering comite of French intention to call conf of signatories to Ruhr Agreement after signature Schuman Plan, indicating they plan send letter to Gers at time of signature, outlining proposals they would make to other signatories. Discussion was deferred pending receipt by signatories govts of letter.

1. Repeated to Frankfurt and Paris.
2. Not printed.
3. For the part of Bonn telegram 653 dealing with contractual relations, see p. 1467.
4. IGG/P(51)77, dated April 12, not printed.
5. On March 12 identic notes had been transmitted to the United States, the United Kingdom, and France by the Israeli Government asking for assistance in obtaining $1.5 billion in reparations from Germany. Copies of the Israeli note, the joint reply of July 5 by the three powers, stating that they were unable to obtain reparations from Germany on behalf of other states pending a final peace treaty, and documentation relating to its drafting are in files 262.84A41/, 396.1–ISG/, and 398.10–GDC.
6. On May 16, 1950, representatives of the United States, the United Kingdom, and France, meeting in London, agreed that the disposal of the titles of the library of the former German Archaeological Institute, the Hertziana Library, the library of the former German Historical Institute, all at Rome, and the library of the former German Institute of the History of Art, at Florence, should be reserved for a final peace treaty with Germany. Pending final disposition a protocol was to be drawn up with the Italian Government providing for Italian administration of the libraries under lease to the International Union of Institutes. Further documentation on the disposition of the libraries is in files 662.65231 and 396.1–ISG.