At its meeting of September 30, 1950, the Cabinet agreed to an announcement that the Canadian Government proposed to terminate the state of war with Ger-many as soon as it was in a position to do so. This announcement was made in the form of a press release on October 26, 1950.

2. The United Kingdom, the United States and France have proposed that action by various Allied countries to terminate the state of war should be taken at about the same time. The action to be taken by these powers has been deferred pending the enactment of legislation by the German Federal Republic to terminate the state of war in German law and thereby remove any disabilities to which Allied nation­als may be subject in that country as a consequence of the state of war. The Ger­man legislation has now been enacted.

3. It is expected that the United Kingdom will take formal action to terminate the state of war early in the week of July 9, that the United States will, at about the same time, take the preliminary steps for Congressional action, and that the French Government will issue a decree on or about July 15. It will be proposed to other Allied Governments who have not already declared the termination of the state of war, to take simultaneous action. The Governments which have already declared termination of the state of war are Pakistan and India.

4. The Department of Justice has advised that the legal state of war with Germany may be terminated through exercise of the Royal Prerogative to declare war or peace by means of a Proclamation authorized by an Order-in-Council.

5. The Department of Justice further advises that from the point of view of Cana­dian municipal law there would appear to be no objection to terminating the state of war and it would not appear that the termination of the state of war will affect the operation of any federal statutes. The Department of Justice comments that ter­mination of the state of war with Germany may have an effect on some outstanding contracts or under Provincial law. It can be presumed in respect of the last men­tioned observation that the results would be those that are intended to occur when the state of war is, in fact, terminated. Insofar as pre-war German debts are con­cerned the German Government has given an undertaking to negotiate.

6. The termination of the state of war will not affect the legislation upon which the Custodian relies for the control of German assets and will not prejudice the position in respect of any claims for reparations or other claims against Germany arising out of the war.

7. The termination of the state of war will leave open the question of the revival of former treaties with Germany. The views of all Departments of Government in respect of treaties with Germany with which they are concerned are being sought. The extent to which particular treaties shall be revived or shall be regarded as ter­minated, will then be agreed in negotiation with the Federal Republic of Germany.

8. It is proposed that concurrently with the formal Proclamation of the termina­tion of the state of war, a public statement will be made to the effect that the termi­nation of the state of war will leave open the settlement of all outstanding questions with Germany arising out of the war which may be determined in a treaty of peace or by other agreements, with particular reference to reparations and the retention of German assets. This announcement will also make clear that the termination of the state of war does not affect in any way the Allied agreements and declarations regarding control machinery for Germany which have been made since the surren­der of the German Reich.

9. All Departments of Government have been consulted and the reservations which it is proposed should be made as to the effect of the announcements are in accord with the recommendations received.

10. As soon as the state of war has been formally terminated, it is proposed that Canada should establish direct diplomatic relations with the Federal Republic of Germany. It is proposed that the Head of the Canadian Mission in Bonn, The Honourable T.C. Davis, K.C., now accredited to the Allied High Commission, should then be accredited as Canadian Ambassador to the Federal Republic of Germany.

11. I recommend that approval should now be given to termination of the state of war with Germany, the publication of a Proclamation to be made concurrently with the action to be taken by the other Allied Governments. If Cabinet agrees, submis­sion to Council will be made accordingly for the issue of a Proclamation.¹⁵

BROOKE CLAXTON

¹⁵ Approuvé par le Cabinet le 27 juin 1951. La proclamation a été publiée le 10 juillet 1951. Voir Gazette du Canada, le 14 juillet 1951, volume 85, p. 1927.
Approved by Cabinet, June 27, 1951. Proclamation issued on July 10, 1951. See Canada Gazette, July 14, 1951, Volume 85, p. 1903.