Foreign Relations of the United States, 1955–1957, Central and Southeastern Europe, Volume XXVI

104. Telegram From the Embassy in Germany to the Department of State¹

Bonn, April 27, 1957—5 p.m.

4185. Personal for the Secretary from Bruce.² Chancellor recalled Hallstein to Bonn this morning. After long conversation between themselves, Hallstein sent for me and asked that following message from Chancellor be communicated to you immediately.

Chancellor was informed yesterday that Department of Justice intended shortly to offer for sale American securities representing ownership of Stinnes Works in Ruhr area. Chancellor had referred to this matter, although not specifically by name, in his letter of March 26, 1957, to President Eisenhower.³ Stinnes case in his opinion is unique in connection with disposition of German assets in United States—is only instance where all physical property is located in Germany. Moreover majority of stock of company is owned by German citizens actually resident in Germany although other members of Stinnes family domiciled in America have minority interest.

There are 30,000 workers in the various Stinnes plants with a considerable Communist minority amongst them. These Communists have been hopefully expectant of some such action as is now reported to be contemplated by the United States Government. In addition other political elements unfavorable to him will capitalize on issue.

He attaches very great importance to this affair in connection with his campaign. He feels that in the Bundestag as well he will be bitterly criticized for not having been able to negotiate more successfully in this regard with the United States Government. He wonders if the administration could not decide to put off any final decision in this case until after the German election. That will give him a chance to say he is still making representations in this regard and will as well (for your private information) try to develop plans in case the ultimate decision is completely adverse which might include an attempt to have German interests buy in the securities at public sale.

Bruce

1. Source: Department of State, Central Files, 611.62A231/4–2757. Secret; Priority.
2. David K.E. Bruce was appointed Ambassador to Germany on March 14 and presented his credentials on March 17.
3. This letter discussed the question of German prewar assets in the United States. (Department of State, Presidential Correspondence: Lot 66 D 204, Adenauer to Eisenhower)