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Their concept of "restitution", however, apparently goes
far beyond the mere restoration of identifiable objects
and would include the replacement of lost or destroyed
objects with similar or equivalent goods found in Germany
at the time of surrender.  It is believed that such a 
broad application of the principle of replacement is
undesirable.  Claims for lost or destroyed property should
be embraced in the reparation settlement; "replacement"
should be confined to unique objects such as art treasures,
and possibly gold.
 
4.   German Foreign Holdings
 
     "German" property in neutral and satellite countries
can be divided into three categories:
 
          1.  Looted Property: This is not properly
          German property, and the principle of res-
          titution has already been indicated.
 
          2.   Flight Capital.  This is property which 
          is and has been leaving Germany for refuge
          from post-hostilities Allied control.  Efforts
          are now being made to have the neutrals pre-
          vent ingress of such property, and to segre
          gate and control that which has already left
          Germany.
 
          3.  German Foreign Investment.  Control over
          this property is essential to the control of 
          this German economic system.  Cooperative U.S.
          and U.K. efforts are being made to conduct a
          census of such property, to have it segregated,
          and make it available for such disposition as
          may be agreed on among the Allies.
 
     A coordinated effort, particularly directly at the
neutrals, to control these classes of property is being
made.  The United States, United Kingdom, and USSR, among
others of the United Nations, have cooperated in the
issuance and endorsement of the following documents:
Declaration of January 5, 1943, declaring a policy of
refusal to recognize Axis acts of dispossession, in
whatever form; Gold Declaration of February 22, 1944,
declaring a policy of refusal to purchase gold from
nations which have not ceased gold purchases, directly
or indirectly, from the Axis; Bretton Woods Resolution
VI, calling on neutrals to take appropriate action with
respect to loot, flight capital, and German foreign
investment.