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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
(1937)

Germany,   pp. 319-405 PDF (32.6 MB)


Page 356


FOREIGN RELATIONS, 1937, VOLUME II
May 19 some $11,000,000 out of the proceeds of the contemplated
awards to the sabotage claimants (the contemplated awards to the
sabotage claimants would produce a present theoretical payment to
them of about $22,000,000) ; and (2) that the sabotage claimants would
give up all unpaid amounts remaining after the payments on the con-
templated awards. This would imply a giving up on the part of Class
III sabotage claimants of some $22,300,000.
  The German Agent further said that he had had recent conversa-
tions with Mr. Morris, representing the awardholders, and Mr. Mc-
Cloy, representing the sabotage claimants, and had been told by these
gentlemen that their clients were not in a position to consider giving up
more than about 50%o of the unpaid amounts on the above basis.
This information the German Agent said he had cabled to the Foreign
Office.
  The German Agent further said that he had been informally fur-
nished with a copy of the agreement of May 19 on May 21 and had
cabled the substance thereof to Berlin and had also forwarded a copy
thereof by mail. He also said that he had been furnished with an
official copy of the agreement with my letter of May 24. In this situ-
ation the German Agent said that Berlin was fully advised as to all
the circumstances before they made their recent decision.
  In addition to the difficulties heretofore suggested by the German
Agent he pointed out to me today the further difficulty arising out
of the protests by German nationals against the final consummation
of the agreement.
  I told the German Agent that late yesterday afternoon I received
a letter from Mr. McCloy and that this morning I received a letter
from Mr. Morris advising me in substance as he had already been
advised informally by the two groups of claimants as to their willing-
ness to waive 50% of the so-called expectancies. This waiver, I said,
implied a definite abatement of Germany's financial obligations to the
United States on account of the awards of the Commission in the
amount of approximately $41,500,000, which amount, I said, repre-
sented to my mind a definite and substantial reduction in Germany's
financial obligations. I further said that it also contemplated a prompt
winding up of the Commission that, as I understood, was desired by
both Governments.
  I pointed out to the German Agent that if the agreement of May 19
were not finally consummated it would mean another year or more of
work on the part of the Commission, and that personally I felt satis-
fied that we would eventually receive a favorable decision that would
imply further financial obligations on the part of Germany in an
amount in excess of $50,000,000, and that to my mind the consum-
356


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