396.1–ISG/2–2251: Telegram
The United States Delegation at the Intergovernmental Study Group on Germany to the Secretary of State 1
Sigto 465. Following are USDel comments on recommended instructions re German debt undertaking:2
[Page 1429]1. We were successful in knocking out number of points raised by British and French which seemed to us unessential. Some we were able to depreciate to points of translation, and proposal to ask for statement German willingness to resume payment is put forward only as a desirable point. Six points which are to be dealt with by change in German letter and in Allied acknowledgement in our judgment involve significant points of substance which would affect ultimate negotiations on debts. We have tried in every case to frame proposal and justification in a way which would facilitate German acceptance.
2. British urged strongly giving HICOM a draft of alternative to the sentence on commercial debts in Article III. We urged that strong and reasoned statements to Germans that sentence was unacceptable, was more likely to produce quick settlement than attempt to redraft. We said we could agree to no alternative. We would report British suggestions, which was put up as a last ditch alternative, to Washington but could offer no hope of acceptance. Sentence suggested by British is as follows: “While ensuring fair and equitable terms for all interests affected, the plan should provide inter alia for the possibility of a settlement of private commercial debts”.
British are communicating their proposal unilaterally to UK element HICOM with statement of US position. If any compromise proposal is to be accepted on this subject, we thought it best to allow it to arise as result of discussions with Germans and be dealt with through HICOM.
3. French claimed that German rewording of acknowledgement was admittedly made by Germans to state position that FedRep is successor to Reich. They pressed for various forms of words or statements designed to convey Allied disagreement with German position. Point was eventually disposed of by statement in Allied reply that agreement is one “concerning the question of German indebtedness covered in these letters.” (i.e. not dealing with political matters).
French are unilaterally informing French element of HICOM that this language covers points of clarification referred to in paragraph 2 of instructions.
4. It should be noted that we have made agreement one between governments, with High Commissioners acting individually for their respective governments. In USDel view, this represents change favorable to Germans and may perhaps be of some assistance in facilitating German acceptance.