Foreign Relations of the United States, 1952–1954, Germany and Austria, Volume VII, Part 1

662A.00/5–1452: Telegram

No. 34
The United States High Commissioner for Germany (McCloy) to the Department of State¹

secret priority

Bonn, May 14, 1952—8 p.m.

2823. Adenauer in 13 May session with High Commissioners reported results of weekend mtgs with Cabinet and reps of coalition parties at which time he was asked to raise fol seven major points with High Commissioners.²

(A) Declaration of State of Emergency:

Chancellor said SPD was centering on Art 5, gen convention as one of main issues in campaign against contractuals. He stressed importance attached by coalition to this art and need for making distinction between emergency created by external attack and one brought on by internal disturbance. He also said art cld be made more acceptable in appearance and extraordinary measures taken only where FedRep and EDC are not in position to deal with situation. Chancellor said Ger proposals mainly involved matters of form rather than substance. Kirkpatrick and I replied that deletion of phrase “if they find that” in para 2 present text involved major change of substance, particularly in view fact this phrase had been employed in text from outset. I stated further that any change this key art wld require most careful consideration and asked for submission Ger draft. This draft (text of which being cabled separately³) rearranges order of paras and provides, inter alia, that when Ger EDC contingents are formed, FedRep wld have right of objection to declaration state of emergency with final decision taken by NATO Council together with EDC commissariat. We agreed to discuss matter further at mtg with Chancellor Thurs.⁴

(B) Deconcentration:

See immed fol cable report this subj, Bonn to Dept 2822 rptd London 922, Paris 912.⁵

(C) Exemption from equalization of burdens taxation:

Question of exemption of UN companies from equalization of burden taxation was reopened and Schaeffer proposed procedure whereby companies wld pay tax and UN shareholders these companies wld be reimbursed. I replied that we had considered this proposal on previous occasions and found it too complex and, therefore, not practical. Kirkpatrick outlined Allied arguments for exemption and stressed unfavorable reaction of Allied govts to change in view fact that companies had been informed settlement already reached on this point. Chancellor then asked for ltr from High Commissioners stating reasons for rejection proposal, implying that on this basis he was willing to let matter drop.

(D) War Criminals:

Mtg discussed problems procedure to be followed by clemency board and arrangements for custody. (See Art VI paras 8 and 11 of SPCOM/P (52) 23 (A) of 10 May 1952⁶). (Reported separate cable⁷).

(E) Nondiscrimination by Ger authorities:

Chancellor referred to provision in rights and obligations convention that “no person shall be prosecuted or prejudiced in his civil rights or econ position by action of Ger courts or authorities solely on ground that has sympathized with or aided policies and interests of any one or more of three powers, or that he has, within scope of gen convention or related convention, or within scope of cooperation and assistance envisaged in Art 4 of this convention, furnished info or services to forces, auths, or agencies of any one or more of three powers, or a power concerned, or to any person acting under authority of any of them.” He said that on Ger side phrase “within scope of gen convention or related conventions” was not understood and that it seemed to introduce element of distrust into what he described as “honest partnership”. Kirkpatrick explained purpose of inclusion this phrase was to accommodate FedRep by placing limitation on application of this provision. After further discussion, Chancellor said he wld consider it again and might be able to suggest clearer formulation for consideration Thurs.

(F) Occupation Damages:

After brief discussion on issues cited in para 3, Bonn sent Dept 2770, rptd Paris 896, London 775 of 11 May,⁸ mtg agreed to consider this matter after discussions regarding division of FedRep contrib to def were further advanced.

(G) Rights and Obligations of Unified Ger:

Mtg agreed to fol Ger proposal for amendment Art VII of gen convention:

• “1. (No change).
• “2. Pending the peace settlement, the three powers and the FedRep will cooperate to achieve, by peaceful means, their common aim of a unified Ger enjoying a liberal-democratic constitution, like that of the FedRep, and integrated within the Eur community.
• “3. The three powers and the FedRep agree that a unified Ger shall be entitled to the rights and be bound by the obligations of the FedRep under the present convention and the related conventions and the treaties for the formation of an integrated Eur community, as adjusted according to their terms or by agmt of the parties thereto.
• “4. (No change).”⁹

(Mtg agreed to certain minor amendments to gen convention proposed by Gers to give it more public appeal. Text being air-pouched).¹⁰

McCloy

1. Repeated to Paris for Draper and MacArthur and to London.
2. On May 11 McCloy had transmitted an account given him by Blankenhorn of an 11-hour meeting on May 10 between Adenauer and his Cabinet and the leading coalition leaders. Although the outlook in the meeting at first seemed very dark, Blankenhorn stated that the Chancellor was convinced at the end that he had made real progress in overcoming objections to the contractuals, even though only the general convention and parts I and II of the acts and interests convention had been discussed. (Telegram 2768 from Bonn, 762A.00/5–1152)
3. Telegram 2824 from Bonn, May 14. (662A.00/5–1452)
4. On May 16 McCloy reported that at their meeting with the Chancellor on Thursday, May 15, the High Commissioners rejected the German proposal and presented certain counterproposals designed to meet as far as possible the desiderata of the Federal Republic. Adenauer accepted this counterproposal as did the Department of State. McCloy’s report was transmitted in telegram 2857 from Bonn. (662A.00/5–1652) The Department of State acceptance was transmitted in telegram 3194 to Bonn, May 17. (662A.00/5–1652) For the agreed text of Article 5, see Document 51.
5. This telegram and telegram 2816 from Bonn, both dated May 14, reported on the discussions on May 13 concerning the acts and interests convention. (862A.054/5–1452 and 662A.00/5–1452)
6. Not printed. (CFM files, lot M–88, box 187, “Convention—Agreement on Acts etc. Part I—General Provisions”)
7. Telegram 2808 from Bonn, May 14. (662.0026/5–1452)
8. Not printed. Paragraph 3 states that payments by the Federal Republic in satisfaction of damage claims could be charged against the German defense contribution. (762A.0221/5–1152)
9. For final text of Article 7, see Document 51.
10. In addition to the subjects covered here and referenced in the above footnotes, the Chancellor and the High Commissioners discussed the date of the signing of the contractuals. McCloy reported on this discussion in telegram 2826 from Bonn, May 14. (662A.00/5–1452)