1. Expropriation on the basis of occupation law or occupational jurisdiction (1945 to 1949) cannot be reversed. The governments of the Soviet Union and GDR see no possibility of revising measures taken at that time. The government of the FRG acknowledges this in view of historical developments. It is of the opinion that the right to make a final decision on possible state compensation must be reserved for a future all-German parliament.

2. Trusteeship administration and similar measures limiting use of real estate, businesses, and other property must be rescinded. In this way, citizens whose property devolved to state administration as a result of flight from the GDR or for other reasons will regain control of their property.

3. In principle, confiscated real estate will be returned to former owners or their heirs, taking account of the cases listed in a) and b):

a) Restitution of property rights to real estate and buildings whose use of function was changed, in particular through public use in construction of complex housing and settlement, employment for commercial purposes, or inclusion in a new commercial unit, is not possible by its nature. In such cases, compensation will be paid to the extent it has not already been compensated for under regulations applying to citizens of the GDR.

b) Where a citizen of the GDR has lawfully obtained ownership or rights of, or usage to, property to be reconveyed, a socially acceptable settlement is to be made with the former owner through exchange of property of comparable worth or through monetary compensation. This also applies to property sold to third parties by state trustees. Details remain to be clarified.

c) Where former owners or their heirs have a claim to restitution, compensation may be chosen instead. The issue of compensation for changes in value will be dealt with separately.