129. Minutes of the Cabinet Meeting, White House, Washington, July 24, 1957, 10–11:35 a.m.1
[Here follows a list of persons present. The President presided at the meeting.]
[Page 306]Vested German Assets (CP 57–12/1 and Supplements A and B)2—In presenting the State Department recommendations as set forth in the Cabinet paper, Sec. Dulles emphasized how the whole principle of sanctity of private property in time of war was involved. He also noted how it would be helpful to our relationships with Germany if, assuming the action will sometime be accomplished, something could be done about it within the month. He pointed out that Treasury did not favor the action because of the charge that would be made against the closely balanced budget and the difficult debt situation. In response to Sec. Wilson, he stated that action must of course wait upon legislation but that an Administration statement of intent would serve the cause.
The President, after noting Sen. Smathers’ correspondence in opposition to such a proposal, suggested that the action contain a proviso which would limit the amounts that could be paid for lawyers’ fees such as the proviso that governed similar activity after World War II.
Acting Attorney General Rogers stated Justice’s belief that the Administration ought not to make any change in the position taken last April for return of vested German assets up to a limit of $10,000. If action should be taken, he hoped that a rash of court actions could be avoided by transferring to the German Government the responsibility of adjudicating and paying specific claims.
Sec. Humphrey spoke against the proposal on the basis that Germany was not poverty-stricken and that the United States would lose more than it would gain from an expansion of the program. Sec. Dulles replied with emphasis on the value to the United States to be considered as a country where it is safe to have private property.
Sec. Humphrey and Mr. Brundage urged that any action to be taken be based on a separate appropriation rather than on a diversion of funds from GARIOA payments.
The President ascertained the procedure that would be followed in carrying out payments and the extent to which “instructions” pertaining to German payments would be appropriate. Then he expressed his belief that the Administration ought to submit this proposal to the Congress as the only solution the Administration could find for a very vexing problem. He did not wish the United States to violate its traditional devotion to the sanctity of private property. [Page 307] After further discussion, he repeated his belief that the proposal should be submitted to Congress.
It was agreed that State would develop a statement in coordination with Justice for early release, and that Justice would be responsible for the legislation. It was further agreed that the matter would be taken up with the Leadership prior to any release. The Secretary urged that every effort be made to avoid any leakage of the proposed action. At this reference to leaks, the President asked whether any Cabinet members would object if he called in J. Edgar Hoover to look at some of these leaks which he found very exasperating. He cited a recent experience pertaining to a private query of his about certain provisions of the Cordiner report, a query which was recounted in the press very promptly. Sec. Dulles thought that such a request to the FBI would itself become known and cause great furor. The President, after stating his belief that Mr. Hoover at least ought to be able to operate without publicity, commented that he heard no objections and felt free to go ahead.
[Here follows discussion of unrelated subjects.]
- Source: Eisenhower Library, Whitman File, Cabinet Records, Germany 1957. Confidential. Drafted by Minnich.↩
- CP 57–12/1, July 10, was entitled “Return of Vested German and Japanese Assets—Payment of War Claims of American Nationals.” The two supplements, dated July 23, were entitled “Précis of the Recommendations of Cabinet Paper 57–12/1” and “Statement from the Department of Justice of Cash and Unliquidated Assets Less Reserves for Claims and Litigation as of June 30, 1957.” (Ibid.)↩