Conference files, lot 60 D 627, cf 365

Final Report of the Working Party on the Termination of the Occupation 1

confidential

[NPC (54) 50]

I. Introduction

The following procedure is one which can be applied, as may be decided, either before or at the same time as the entry into force of the arrangements for the German Defence Contribution. In this report the expression “the interim period” refers to the period between the termination of the occupation and the entry into force of the arrangements for the German defence contribution, if the two events are not simultaneous.

II. Procedure

It has been agreed that the Four Powers will sign, and if necessary under their respective constitutional procedures, ratify a Protocol which will bring into force all the Bonn Conventions,2 but which will delete or suitably amend out of date provisions.

[Page 1340]

While parts of the Convention on Relations, and of the Settlement Convention as amended (together with subsidiary documents relating or [to] either of them) will continue in force without time limit, the Forces and the Finance Conventions, as amended, and the Tax Agreement (together with subsidiary documents relating to any of them) will apply only during a limited period. The Forces Convention will continue in force until the entry into force of a new agreement based on the N.A.T.O. Status Agreement, supplemented by such provisions as are necessary in view of the special conditions existing in regard to the forces stationed in the Federal Republic. The Finance Convention, as amended, will continue in force until the entry into force of new financial arrangements providing support costs for the allied forces in the Federal Republic. The negotiations for the new agreements on the status of forces and on financial arrangements will begin as soon as the N.A.T.O. Council has accepted in principle the arrangements for a German defence contribution.

III. Detailed Examination of the Conventions

Annex A to this Report sets out a complete list of those parts of the Bonn Conventions which it has been agreed shall be considered for deletion or amendment. Agreement has been reached on a considerable number of points which in the attached list are marked with asterisks. On a number of other points further discussion is required but there is no disagreement on major matters of principle.

In addition to the matters referred to in Annex A, the German Delegation indicated that they would be raising the question of External Assets subsequently, without however suggesting any amendment to the Conventions.

IV. Interim arrangements in respect of disarmament and demilitarisation controls

It has been agreed that, during the interim period, controls over demilitarisation and disarmament shall be maintained by the reservation and the appropriate exercise by the occupation authorities of their existing reserved powers in these fields. The controls are however to be applied by a joint four-power commission which is to act by majority vote. In making this reservation, the protocol is to provide that the four signatories will review the problem at the end of 1954 in the light of the situation then existing with regard to the entry into force of the arrangements for the termination of the occupation. At the same time they will review the exercise of the controls with a view to permitting preparation by the Federal Republic for its future defence contribution.

V. Declaration of Intent

The Declaration of Intent at Annex B is to be issued at the conclusion of the Nine Power Conference.

[Page 1341]

Annex A

Note: Agreed proposals are indicated by an asterisk*

Convention on Relations

*Amend operative words of convention to refer to four parties

*Preamble. Delete.

*Article 1. Redraft as follows:

1.
On the entry into force of this Treaty the Governments of France, the United Kingdom and the United States will terminate the Occupation régime in the Federal Republic and will revoke the Occupation Statute and abolish the Allied High Commission and the offices of the Land Commissioners in the Federal Republic of Germany.
2.
The Federal Republic shall have accordingly the full authority of a sovereign State over its internal and external affairs.

*Article 2(1) (a). The right to station armed forces shall be exercisable fully only during interim period, after consultation or with consent, as the case may be, if military situation permits, thereafter only for exercise of other two reserved rights.

Outside the matters covered by the Forces Convention (which shall apply to Allied Forces stationed in the Federal Republic after it enters into force and until replaced by new agreements), the existing powers for the protection of the security of such forces especially against external threats, will continue only until the Federal Government obtains similar powers under Federal legislation; but the existing powers will only be exercised if the Federal Government has been consulted, in so far as the military situation permits, and has agreed that the circumstances (including the lack of legal powers enabling the Federal Government itself to take the necessary action) require such exercise.

Article 2(2).

*Article 3(4). (Free to have diplomatic relations with such states).

*Article 4 (2). See Article 2 (1) (a).

Article 4(3).

*Article 4 (4). Delete.

*Article 5. Substitute for emergency powers reserved right in respect of security to be exercised only until Federal Government has obtained similar powers for itself and if Federal Government agrees situation involving external threat requires it. (See Article 2(1) (a) above).

Paragraph 7. This paragraph to be replaced by an exchange of notes.

*Article 6(2). Delete second sentence, see Annex A below.

*Article 7(1) and 7(2). Delete reference to Three Powers. *Article 7(3). Delete,

*Article 8(1). Forces and Finance Conventions limited to period until new arrangements.

[Page 1342]

*Article 8(2). Redraft without changing the substance.

Article 9. The Three Allied Delegations wish to keep the Tribunal. The German Delegation reserves its position.

Article 9(3). Redraft with reference to Article 5 and query jurisdiction of Tribunal.

*Article 10. Improve review clause.

*Article 11. Delete, insert corresponding Article in Protocol.

*Annex A—Issue as separate declaration.

*Annex B— Review Article 11.

Forces Convention

Delete references to E.D.C. and make other consequential amendments.

Article 51 will have to be adjusted since the Convention’s duration is limited to a specified period.

Finance Convention

*Delete or suitably amend all references to E.D.C.

A list of such deletions and amendments is being prepared.

*Appropriate amendment of dates.

*Article 3—delete.

*Article 4.

The arrangements with regard to support costs should be as follows:

1.

In the period between the termination of the occupation on the basis of the London understandings, and the entry into force of the arrangements for the German defence contribution, the Federal Republic will provide a monthly average contribution of DM 600 million for the support of the armed forces of other Powers stationed in the Federal territory; of this, DM 100 million a month will be earmarked for particular defence measures agreed jointly between the Three Powers and the Federal Republic. Expenditures for the N.A.T.O. Infrastructure Programme are included in this sum. Payment for claims for occupation damages can be included therein. The arrangement set out above will not in any case continue beyond June 30, 1955.

If the arrangements for the German defence contribution have not come into force before 30 June 1955 negotiations will take place between the four governments.

2.

(a) During the first twelve months after the entry into force of the arrangements on the defence contribution of the Federal Republic, the Federal Government will make available for the support of the non-German forces stationed in the Federal territory a total amount of DM 3, 200 millions. This amount shall be made available on the following schedule:

  • DM 400 million a month for the first two months
  • DM 300 million a month for the next four months
  • DM 200 million a month for the last six months

[Page 1343]

If the arrangements for the defence contribution of the Federal Republic enter into force after the 1st of July 1955, this undertaking shall no longer apply, but negotiations shall take place between the Federal Republic and the Three Powers on the contribution of the Federal Republic to the support of the forces referred to for a period not exceeding 12 months, (b) The Three Powers recognise the right of the Federal German Republic to propose that the above arrangements on support costs be re-examined should it consider that the burden imposed by the build-up of the agreed German forces justifies such re-examination. In this event, the parties concerned will examine all the relevant factors and if found necessary will agree to amend the above arrangements on support costs. (c) In accordance with the spirit of Article 3 of the North Atlantic Treaty the Federal Government agrees that at the end of the period laid down in subparagraph (a) above they will be prepared to negotiate with other member governments of N.A.T.O. who have forces stationed in the Federal Republic in respect of questions relating to the support (for example goods and services) of those forces having regard to the requirements of the forces of the Federal Republic.

3.

In view of its close connexion with support costs the Committee also discussed the question of occupation costs prior to the termination of the occupation regime in the Federal Republic. It has been agreed that the Federal Government will provide for a period of three months from the 1st of October an average monthly sum of DM 600 million for occupation costs and mandatory expenditures. The occupying powers undertake to make a consistent effort to ensure that the present carry over of unspent funds for occupation costs and mandatory expenditures will not increase and shall be substantially reduced as rapidly as possible. To this end the occupying powers will give appropriate instructions to their respective High Commissioners and to their stationed forces. The authorities of the three occupying Powers and the German authorities will cooperate fully for this purpose and will assist each other by exchanging relevant information and in any other appropriate ways. It was agreed that this undertaking should also be applicable in respect of the carryover during the interim period.

The substance of the last part of paragraph 3 of Article 4, and of paragraph 5 of the same Article suitably amended in accordance with subsequent arrangements, should be retained.

*Article 18 (1) delete

Article 19

The German Delegation desire the omission of this Article. The other delegations agree that subparagraph (a) requires review in the light of the changes to be made in Articles 3 and 4, but do not agree with the complete suppression of this Article.

Settlement Convention

Chapter 2. *Article 1. Delete. This Article to be replaced by a letter.
*Article 2. Delete.
*Article 3. Delete.
[Page 1344]*Articles 4–9. Delete, and substitute new provisions in Chapter 1 or in a new chapter on transitional provisions, which will ensure that the programme of deconcentration shall be carried out to the end. There shall be no provision against future reconcentration, since this is covered by the Coal and Steel Community Treaty.
*Article 10. Delete. German legal opinion to be furnished.
Chapter 3. *Article 3(5) (a) (b) (c). Delete and exchange notes on comparable facilities.
Chapter 7. *Article 1(a) (b)(c). delete.
*Article 3. delete.
*Article 5. delete.
Chapter 8 and Annex. *Delete.
Chapter 10. *Article 7. List can be reviewed.
Chapter 11. *Delete this chapter. Insert a provision in Chapter 1 or in a new chapter on transitional provisions covering requisitioned property unless otherwise covered under German law. Exchange Notes on some of its subject matter.

Annex B

Declaration of Intent

Recognizing that a great country can no longer be deprived of the rights properly belonging to a free and democratic people, and

Desiring to associate the Federal Republic of Germany on a footing of equality with their efforts for peace and security,

The Governments of France, the United Kingdom and the United States of America desire to end the Occupation regime as soon as possible.

The fulfilment of this policy calls for the settlement of problems of detail in order to liquidate the past and to prepare for the future, and requires the completion of appropriate Parliamentary procedures.

In the meantime, the Three Governments are instructing their High Commissioners to act forthwith in accordance with the spirit of the above policy. In particular, the High Commissioners will not use the powers which are to be relinquished unless in agreement with the Federal Government, except in the fields of disarmament and demilitarisation and in cases where the Federal Government has not been able for legal reasons to take the action or assume the obligations contemplated in the agreed arrangement.

  1. This report was approved during the 14th Plenary meeting of the Nine-Power Conference. An earlier draft of this report, which was circulated as document NPC (54) 45, is in the Conference files, lot 60 D 627, CF 365.
  2. Documentation concerning the Bonn Conventions of May 26, 1952, and their subsequent revision is presented in volume vii .