REPORTS OF THE COMMISSIONS



  The imposition on Roumaima of the obligation to make reparation
and restitution and also to pay compensation for damage done to
United Nations property on Roumanian territory may well satisfy
the reasonable claims of the United Nations on Rouimania in the
proportion and to the extent provided for in the other Articles of the
present Peace Treaty. Therefore, it is absolutely superfluous to impose
on Roumania, openly or covertly, other obligations which will be a
heavy burden on the Roumanian economy.
  If Roumania is allowed to dispose of her assets abroad at her own
discretion this will have a very favourable effect both on the economic
rehabilitation of the country and on its foreign trade relations.
  The Ukranian Delegation proposes that Article 26 be adopted in the
following wording:
  "The rights of the Roumanian Government and of Roumanian
natural and juridical persons in respect of Roumanian property and
other Roumanian assets on the territory of the Allied and Associated
Powers, in so far as these rights were restricted as a result of Rou-
mania's participation in the war on the side of Germany, will be
restored after the entry into force of the present Treaty."

                            [Annex 101
    Statement by the United States Delegation on Article 27

  Two alternative and unreconcilable proposals were presented in the
draft treaty. The U.S.S.R. proposal would remove any restrictions
in respect of Roumanian property in Germany and restored the rights
of Roumanian owners with regard to the disposal of such property.
It further provided that Roumania should be entitled to restitution
from Germany of identifiable looted property, such restitution to be
carried out under the direction of the powers occupying Germany.
The U.K.-U.S.-French proposal provided for a complete waiver by
Roumania of all claims against Germany and German nationals
except pre-war claims, such waiver to be without prejudice to any
dispositions in favour of Roumania or Roumanian nationals that
might be made by the powers occupying Germany.
  The position of the 17.S. Delegation is that there is no just or equi-
table alternative to a complete waiver of claims against Germany by
a defeated satellite. Under the terms of the Paris Agreement on
Reparation, the Allied and Associated Powers had already made
such a renunciation of claims against Germany, and the comparable
article in the Italian treaty had provided for a complete renunciation
by Italy. There would be no basis for defending a mode of treatment
which would accord to some ex-enemy states rights which were denied
to another ex-enemy state and which had been waived by the Allied
Powers.



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