862A.10/2–1751: Telegram
The United States High Commissioner for Germany (McCloy) to the Secretary of State 1
549. AGSec from Slater. Following is verbatim text of draft debt assurance letter to HICOM from Adenauer received this date. (Note that second letter referred to in Frankfort sent to Department 6641 repeated information Paris 613, London 554, Bonn 210 February 102 has been withdrawn and is not being forwarded to HICOM.) Adenauer in cover note stresses that draft text has been approved not only by Federal Republic Cabinet but also has unanimous approval [Page 1419] of Bundestag foreign affairs committee. He requests that this draft be forwarded to governments together with HICOM recommendation that it be accepted, and states that as soon as Allied Governments concur, he shall sign text and forward it to HICOM.
Here following verbatim text:
“In reply to your letter of 23 October 1950—AGSec (50)23393—I have the honor to inform you as follows:
“I. The Federal Republic hereby confirms that it assumes responsibility for the pre-war external debt of the German Reich, including those debts of other corporate bodies subsequently to be declared liabilities of the Reich, as well as for interest payments and other charges on securities of the government of Austria to the extent that such payments and charges became due after 12 March 1938 and before 8 May 1945.
“In the determination of the manner in which and the extent to which the Federal Republic will fulfill this responsibility, account will be taken of the general situation of the Federal Republic including, in particular, the effects of the limitations on its territorial sovereignty and its capacity to pay.
“II. The Federal Government acknowledges hereby in principle the debt arising from the economic assistance furnished to Germany since 8 May 1945, to the extent to which responsibility for such debt has not previously been acknowledged in the agreement on economic cooperation concluded on 15 December 1949 between the USA and the Federal Republic, or for which the Federal Republic has not already assumed responsibility under Article 133 of the basic law. The Federal Government is ready to accord the obligations arising from the economic assistance priority over all other foreign claims against Germany or German nationals.
“The Federal Government regards it as appropriate to regulate any questions connected with the recognition and settlement of these debts by bilateral agreements with the governments of the countries which have rendered economic assistance, patterned on the agreement concluded with the USA on 15 December 1949. The Federal Government takes for granted that these agreements will contain an arbitration clause to deal with possible cases of dispute. The Federal Government is prepared at once to enter into negotiations for the conclusion of such agreements with the governments concerned.
“III. The governments of the USA, the UK and France and the government of the Federal Republic of Germany are agreed that it is in the interest of the re-establishment of normal economic relations between the Federal Republic and other countries to work out as soon as possible a settlement plan which will govern the settlement of public and private claims against Germany and German nationals.
“All interested governments, both creditors and debtors, including the Federal Republic, shall participate in working out this plan.
“The settlement plan should deal in particular with those claims the settlement of which would best achieve the objective of normalizing the economic and financial relations of the Federal Republic with other [Page 1420] countries. It should therefore provide for the possibility of a direct settlement of private commercial debts.
“The settlement plan will take into account the general economic position of the Federal Republic, in particular the increase of its burdens and the reduction in its material wealth which have occurred since 8 May 1945. The general effect of this plan shall neither dislocate the German economy through undesirable effects on the internal financial situation nor unduly drain existing or potential German foreign-exchange resources. It shall also not add appreciably to the financial burden of any occupation power.
“The governments concerned may obtain expert opinions on all questions arising out of the negotiations on the settlement plan and on the capacity to pay.
“The result of the negotiations shall be set forth in agreements. It is agreed that the plan will be provisional in nature and subject to revision as soon as Germany is reunited and a final peace settlement becomes possible. Signed Adenauer.”
McCloy
- Repeated to London, Frankfurt, and Paris.↩
- Ante, p. 1414.↩
- For text, see Foreign Relations, 1950, vol. iv, p. 767.↩