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United States Department of State / Foreign relations of the United States diplomatic papers, 1937. The British Commonwealth, Europe, Near East and Africa

Germany,   pp. 319-405 PDF (32.6 MB)

Page 359

he stated that his Government would not be willing to give effect
to the Munich agreement unless both the sabotage claimants and the
present awardholders would be willing to regard payment of funds
now in the German special deposit account as a complete satisfaction
of all private claims.)
At Mr. Moore's request Mr. Hackworth explained that the claim-
ants and the awardholders could not see their way clear to surrender
all future expectancies but would be willing to meet the Ambassador
half way by surrendering 50 percent of such expectancies on awards;
that this would amount to a saving to the German Government of
some forty-two million dollars on its obligations to the United States,
which was believed to be a very liberal concession. Dr. Paulig re-
plied that if awards were entered by the Commission pursuant to
the Munich settlement Germany's obligation would in fact be in-
creased by eight million dollars, notwithstanding the 50 percent
surrender on expectancies. He stated that under the Munich settle-
ment the sabotage claimants were to waive all right to any future
payments after the special deposit account had been exhausted. Mr.
Martin observed that this statement was based upon the assumption
that in the absence of such a settlement there would be no awards in
the sabotage claims, and that Dr. Paulig was mistaken in thinking
that the claimants by the Munich settlement waived future expectan-
Ties. He stated that this had been made very clear to the German
negotiators at Munich at different times during those discussions.
The Ambassador stated that he felt that his Government would not
accept anything less than a complete cancellation, after exhaustion
of the special deposit account, of all future rights of private claim-
ants; that it was his view that the claims should proceed before the
Commission in the regular way; that his Government felt confident
that the situation had not- changed since the decision of the Com-
mission in 1930 and that the next decision, like that one, would be in
favor of his Government; that any compromise settlement however
worded would leave the impression that Germany was guilty of the
acts of sabotage complained of and that his Government could not
make such a sacrifice without a like sacrifice on the other side. Mr.
Martin stated that the Commission had found that acts of sabotage
had been committed by Germany in the United States but had not
found that the acts here complained of had been so committed. The
Ambassador stated that was the point he had in mind and that he
felt that the position of his Government was impregnable. Mr.
Moore remarked that the idea was to carry out the Munich arrange-
ment and that he wondered what the Ambassador thought of the pos-
sibility of the Commission's recognizing that agreement and whether
the proposed compromise settlement would not be more favorable to

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