396.1/3–2151: Telegram
The United States High Commissioner for Germany (McCloy) to the Secretary of State 1
653. AGSec from Slater. Following is brief summary report of mtg between HICOM special comit and ISG alternates (Reinstein, Stevens chairman, and Sauvagnargues) held Bonn–Petersberg 20 Mar 1951:
[Here follow paragraphs 1 and 2 which deal with contractual relations, printed page 1467.]
(3) Economic and finance problems.
(a) PLI .
Stevens reported signature by three heads of delegations in London on Friday of PLI report which is now awaiting governmental approval.
(b) Restitution.
Stevens stated ISG report on restitution was on verge of completion but subj to one disagreed point relating to internal restitution which wld have to be held over for later discussion.
(c) Fon Interests.
Stevens reported vast bulk of report had been completed but that one disagreed point concerning “compensation in lieu of restoration where restoration is impossible” wld have to be discussed after Easter recess.
(d) Debt Settlement Plan.
Stevens briefly outlined “four stages” and emphasized that problem wld have to be settled with Gers outside ordinary context negots for contractual arrangements.
(e) Waiver of Claims.
Mtg noted that agrmt has not yet even been reached on definition of prob of “waiver of claims.”
(f) Deconcentration.
Leroy-Beaulieu, Fr econ adviser, emphasized that Allies must find way to ensure that Allied program of deconcentration will not be negated by Gers after occupying powers withdraw from Germany.
(4) IAR .
Mtg considered that question of future status of IAR cld be raised with govt as important subj for inter-governmental study. (However Fr afterwards indicated they did not consider that mtg had agreed recommendation to govts on this question.)
Mtg discussed, without reaching conclusion, question of association of Benelux with study of future status IAR and whether or not FedRep, as IAR member, shld also be associated with such study.
(5) Stevens reported status of all matters now being discussed within ISG and expressed hope that ISG wld conclude, except for debt settlement consideration which wld take many months, most intensive [Page 1391] phase of its labors by middle of May. He thought it was too early to say what wld happen to ISG after that date. [Slater.]
- Repeated to London, Paris, and Frankfurt.↩