762A.0221/1–2551: Telegram
The United States High Commissioner for Germany (McCloy) to the Secretary of State
481. Verbatim text. AGSec from Slater. Following is summary of executive session HICOM Council held Bonn–Petersberg 25 January 1951:
1. Implementation of New York decisions. (Reference Bonn sent Frankfort 543 pouched Department 24 January;1 and Bonn sent Frankfort 544 pouched Department 24 January)1.
Kirkpatrick gave résumé of private meeting held last night with Adenauer concerning FedRep’s pre and postwar debt assurances. Adenauer, after citing difficulties he had been having with Bundestag foreign affairs committee, stated that as result of his most recent negotiations, he believed that if the following 4 conditions were met, he would be able to receive the necessary support of the Bundestag committee:
- (a)
- HICOM agreement that FedRep would in fact be able to negotiate settlement plan with Allies rather than merely having plan imposed on them;
- (b)
- HICOM agreement that FedRep would not be forced to accept a fixed figure with respect to postwar debts but rather would have an opportunity to negotiate in certain individual items;
- (c)
- HICOM agreement that FedRep would not have to state in debt assurance that they “had assumed the pre and postwar debts” but rather could employ such language as “had a firm responsibility for pre and postwar debts”;
- (d)
- HICOM agreement that certain German properties abroad could be charged off against FedRep debt.
Kirkpatrick stated that although he would have to clear position with London, he personally would agree to first 3 conditions but rejected [Page 1412] the 4th.2 In defending this position he stressed that only a small portion of the debt would be paid in any event; that HICOM should be able to agree that FedRep could negotiate a settlement plan as it would be impossible to impose or enforce a plan in which they were not a party to the negotiations; that determination of amount of FedRep debt was not as important as striking a realistic figure which would not be larger than their ability to pay.
Finally, he stated Adenauer intends to submit to HICOM informally an outline of FedRep’s position re debt assurance within 48 hours. This outline will be considered upon receipt by HICOM financial advisers who will submit recommendations for line to be taken at early meeting between Adenauer and Council. (Will cable text FedRep outline upon receipt.)
[Here follow numbered paragraphs 2 and 4 in which McCloy reported on the HICOM–Federal Republic discussions on German participation in Western defense and on negotiations concerning co-determination in German coal and steel companies. For the text of paragraph 3, see page 1458.]
McCloy