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

396.1–ISG/2–2151: Telegram

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

secret  niact

London, February 21, 1951—noon.

Sigto 456. To be delivered to Richard Kearney GEA at 9:30 a. m. Re Tosig 429, February 25 [18], repeated Frankfort 5723, Paris 5384,² discussion with British and French has resulted in agreement to propose following changes in letter of debt acknowledgment:

1. Elimination of sentence on private commercial debt in third paragraph part III. There was a discussion of possible alternative drafts but it was felt less time consuming to eliminate than to negotiate changes. Proper therefore to tell Germany that three governments could not prior to initiation of negotiations agree to statement that certain of their citizens holding particular classes of debts would receive preferential treatment over others. With elimination this sentence, believe can keep preceding sentence unchanged since it would merely state desire to provide normalization without singling out any particular class of debt.

2. Examination of German text indicates second sentence of second paragraph of part III would assure participation for debtor and creditor governments only and not for private interests. It was suggested slight drafting changes would cover representation private interests and also remove implication satellite governments must be brought in. Believe Germans will agree readily.

3. Elimination of phrase “which have occurred since 8 May 1945” in fourth paragraph part III. Appreciate language inserted by Germans probably intended to cover refugee problem and loss of external assets. However, clear implication of sentence is that Western Germany has been impoverished under allied administration. Aside from fact implication is highly objectional politically, believe statement would give wonderful opportunity for Communist propaganda.

USDel pressing for urgent action and has succeeded in persuading British and French to drop number of points on which they proposed changing draft of German letter. Hope recommendations can be completed Thursday February 22.

Reinstein telephoning Kearney, February 21, 10 a.m., Washington time re paragraph 4 Tosig 429.³

1. Repeated to Frankfurt and Paris.
2. Not printed; it reported that the Department of State agreed that the governmental position on German debt assumption should be coordinated in the ISG. (396.1–ISG/2–1851)
3. No memorandum of this telephone conversation has been found in Department of State files.