CAB129-45 — Page 512

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Page 512

Page 512

age

Arculatsol

24/5/51 (1pm)

√385

HE DOCUMENTS OFERTY OF HIS BRITANNIC MATY' SERNMENT)

MA SA KA e cu um 173 soul man ang ko sam da se da ca nu va la de BOU

CONFIDENTIAL

C.P.(51) 139

24TH MAY, 1951

CABINET

COPY NO.

31

GERMAN DEBT SETTLEMENT

Memorandum by the Secretary of State for Foreign Affairs

I circulate herewith, for the information of my colleagues, the text of a communication and enclosures regarding arrangements for arriving at a German debt settlement (Appendix A). In agreement with the United States and French Governments, it is proposed to issue these documents in the near future to interested Governments and other parties, and subsequently to the Press.

2.

The documents themselves are largely self-explanatory. I might, however, recall that the three Foreign Ministers agreed in New York in September, 1950 (C.P.(50) 222 of 6th October, 1950, paragraph 6), that undertakings regarding liability for the pre-war Reich debt and the debts arising out of economic assistance furnished to Germany by the three Powers since the war should be obtained from the German Federal Govern- ment; and that the Inter-Governmental Study Group on Germany should prepare a plan for handling outstanding claims against Germany in accord- ance with an agreed statement of principle. The statement of principle provided inter alia:-

3.

(i)

(ii)

(iii)

that if a settlement plan were worked out and agreed procedures

and controls established to govern it, the three Governments would agree to modify the priority of their claims in respect of post-war economic assistance to the extent necessary to permit the fulfilment of such an agreed plan;

that the plan should provide for the settlement both of pre-war

external public and private debts of all types and of claims for post-war economic assistance;

that claims relating to war damage to United Nations property in

Germany and to expenditure on external occupation costs should not be included in the plan.

The undertaking from the Federal Republic was obtained by an exchange of letters of the 6th March (Enclosure 1 of Appendix A) as mentioned in C.P.(51) 74 of 9th March, 1951, paragraph 3. The work in the preparation of a settlement plan has now reached a point at which it seems desirable to enter into a series of consultations with interested parties; and I have agreed after consultation with the Chancellor of the Exchequer that a special body, to be known as the Tripartite Commission on German Debts, should be set up in order to represent the interests of the three

Governments in these consultations and in the ensuing negotiation587

age

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armelated 24/8/51 (1pm) √385

HIS DOCUMENTS FROPERTY OF HIS BRITANNIC MA19 GERNMENT)

CONFIDENTIAL

C.P.(51) 139

24TH MAY, 1951

CABINET

COPY NO.

31

GERMAN DEBT SETTLEMENT

Memorandum by the Secretary of State for Foreign Affairs

I circulate herewith, for the information of my colleagues, the text of a communication and enclosures regarding arrangements for arriving at a German debt settlement (Appendix A). In agreement with the United States and French Governments, it is proposed to issue these documents in the near future to interested Governments and other parties, and subsequently to the Press.

2.

The documents themselves are largely self-explanatory. I might, however, recall that the three Foreign Ministers agreed in New York in September, 1950 (C.P.(50) 222 of 6th October, 1950, paragraph 6), that undertakings regarding liability for the pre-war Reich debt and the debts arising out of economic assistance furnished to Germany by the three Powers since the war should be obtained from the German Federal Govern- ment; and that the Inter-Governmental Study Group on Germany should prepare a plan for handling outstanding claims against Germany in accord- ance with an agreed statement of principle. The statement of principle provided inter alia:-

3.

(i)

(ii)

(iii)

that if a settlement plan were worked out and agreed procedures

and controls established to govern it, the three Governments would agree to modify the priority of their claims in respect of post-war economic assistance to the extent necessary to permit the fulfilment of such an agreed plan;

that the plan should provide for the settlement both of pre-war

external public and private debts of all types and of claims for post-war economic assistance;

that claims relating to war damage to United Nations property in

Germany and to expenditure on external occupation costs should not be included in the plan.

The undertaking from the Federal Republic was obtained by an exchange of letters of the 6th March (Enclosure 1 of Appendix A) as mentioned in C.P.(51) 74 of 9th March, 1951, paragraph 3. The work in the preparation of a settlement plan has now reached a point at which it seems desirable to enter into a series of consultations with interested parties; and I have agreed after consultation with the Chancellor of the Exchequer that a special body, to be known as the Tripartite Commission on German Debts, should be set up in order to represent the interests of the three Governments in these consultations and in the ensuing negotiations.