Report, Annex 2 to Council of Foreign Ministers Report 3, Post Surrender Acquisitions in Germany
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OCR Page 1 of 3E. 0. 11652, Sec. 3(E) and 5(D) or (E)
DECLASSIFIED
of State letter, Aug. 9. 1973
By Dept. NLT- HC INARS Date
Annex 2 to CFM 3
POST SURRENDER ACQUISITIONS IN GERMANY
The Problem
To establish uniform principles governing the acquisition of new
interests in Germany; to review and set aside such previous acquisitions
as are inappropriate; and to stop unilateral Soviet and French postes
surrender acquisitions in Cermany.
ARCHIVES "NATIONAL AND
REOORDS
Discussion of the Problen
c SERVICE*
A draft directive covering the various aspects of the problem on this
subject was prepared for possible U.S. presentation at the Moscow meeting
of the CFM. It was not fully presented, however. The Secretary in one of
his statements at Moscow pointed out that the United States had not
permitted the acquisition of new interests in its Zone. The general
problem was also considered by the Coordinating Committee in connection
with Economic Principles, and all four delegations agreed that Foreign-
owned property in Germany should be subject to German Law and that Control
Council approval should be required in the future for all acquisitions of
property in Germany by foreign states or their nationals. The US, UK and
French delegations took the position that the provisions should be retro-
active to the surrender of Germany. The Soviet Delegation did not agree
that the provision should apply "to past acquisition made in connection
with reparations receipts". The French Delegation reserved its point of
view regarding the future regime of Ruhr industries.
Military Government laws in the British and American Zones in Germany
have continued, since the last meeting of the Council of Foreign Ministers,
to be applied so as to enforce a moratorium on new acquisitions in Germany
by non-Germans. Although identical Military Government laws exist in the
French Zone and the Fronch agreed in principle to a moratorium, both at
the Council of Foreign Ministers and in the Allied Control Authority, the
degree of actual enforcement by the French is not known. The United States
proposal for quadripartite agreement on a moratorium, which was before the
Allied
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