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

396.1–ISG/4–3051: Telegram

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

confidential

London, April 30, 1951—6 p. m.

Sigto 650. Round up of ISG discussions since Sigto 596 Apr 15.²

1. Debts. Agreement was reached on procedure for development Ger debt settlement. Procedure envisages estab tripartite Ger debt commission about May 15. Commission wld be responsible for necessary preparatory work for develop of settlement plan in consultation with other govts concerned and interested private groups. Commission wld consult creditor interests of three countries in London beginning Jun 25, with Fed Govt invited to participate in discussions beginning Jul 5. Govts of other main creditor countries wld be invited to send observers to this mtg, which wld be informal and exploratory in character. With benefit of these consultations and any views obtained from other sources, commission will make preparations for conf of all govts and private, groups having significant interest in problem in London beginning late Sept. Gen announcement wld be made on May 15 concerning procedure and principles which three govts feel shld govern the settlement plan. Proposed procedure will be incorporated in report to be submitted to three govts during coming week.

2. Relationship of non-occupation powers to contractual arrangements with FedRep. Substantial progress was made in discussion of procedure for dealing with problems involving these powers. Informal working paper submitted by Brit del based on discussions, but incorporating some Brit proposals has been sent informally to BGA and Reber. Paper being further revised and report will be submitted by USDel after consultation with HICOG and Dept officers in London at beginning of week.

Meanwhile, Neth del has submitted note³ (copies being pouched) indicating its interest in problem. Belg and Luxem dels have been invited to make similar statements, which will be discussed with Benelux dels May 8.

3. Waiver of claims. Agreement was reached on report to govts, subject to final clearance within UK Govt and views of Benelux dels which will be obtained May 8. Report contained in separate tel.⁴

4. Restitution. Agreement also reached on (report except as to gen claims for compensation to victims of Nazi persecution. It was agreed to recommend this subj be considered by govts after proposals recd from FedRep in connection with surrender reserved power on DP’s and refugees. ISG also agreed on reply to note from Neth del expressing disagreement with draft report. Several changes were made in report in response to Neth views, but study group rejected Dutch claim to restitution of property indirectly looted as reparations claim which cld only be considered in peace settlement. Final report will be submitted to govts within week.⁵

5. Reparation.

(a) Str Comite completed survey of outstanding residual issues and concluded there were few govtl decisions required in connection with surrender reserved power except as to divesting of title law (together with related question of disposition of Ace law 5) and implementation in Ger of safehaven agreements. On latter point it was tentatively agreed, assuming Swiss accord is implemented, that only action needed was to obtain from FedRep gen undertaking to carry out Swiss accord arrangements and allied obligations under Swedish and Spanish agreements, including gen obligation to make compensation to former owners of assets (but not specific compensation plan).

(b) Divesting to title law. ISG agreed to recommend to HICOM immediate enactment of law divesting title to property removed as reparations or restitution. Discussion of law re Ger external assests continuing. Report in separate tel.⁶

(c) Israeli reparation claim. Agreement was reached on gen lines of reply to recent Israeli note to three govts. It was agreed claim cannot be considered now and must be taken up in connection with peace treaty. There was no agreement on time of reply, US urging that reply be deferred until more progress had been made in dealing with several other issues (notably question of gen claims referred to in para 4 above) in which the Israeli Govt has an interest.

6. Ger libraries in Italy. Agreement was reached on plan for interim admin of libraries by internatl union of cultural institutes in Rome. Ultimate ownership will be determined in peace settlement with way left open for return of libraries to Gers. Detailed documents for signature being drafted.

7. Agreement was reached on supplementary report re fon interests in Ger covering definition of UN natls and access to mixed arbitral tribunal. Report being drafted and will be submitted to govts within week.⁷

Study group hopes to complete by May 5, subject to consultation with Benelux, work on all subjs except debt settlements and possible divesting of title law. Remaining work on debt settlement includes preparations for creation of debt commission and subsequent confs with other interests. USDel is also proposing final report summarizing progress on substantive issues re debt discussed in ISG which will be remitted to debt commission.

1. Repeated to Frankfurt and Paris.
2. Ante, p. 1403.
3. IGG/P(51)93, dated April 25, not printed (CFM files, lot M–88, box 197).
4. Sigto 646, supra.
5. The final report was circulated as IGG/P(51)89 Final, dated May 4. The Netherlands Delegation note of March 21 and the ISG reply of May 4 comprise Appendix II to IGG/P(51)89 Final (CFM files, lot M–88, box 197).
6. Sigto 649, not printed (396.1–ISG/4–3051).
7. The final report was circulated as IGG/P(51)103 Final, dated May 11 (CFM files, lot M–88, box 197).