ABSTRACT
This chapter explores the efforts to reclaim German assets confiscated at the outbreak of World War II, a process closely tied to the revival of bilateral trade, the return of West German businesses to South Asia, and financial aid negotiations with India. Focusing on AEG-Telefunken and Siemens, the study reveals that while the financial impact was limited, the issue quickly gained political significance. From 1952, negotiations shifted to an intergovernmental level, with India adhering to post-war interallied agreements and West Germany demanding symbolic concessions in return for large-scale aid. German businesses closely monitored the discussions, with the Federal Government achieving phased solutions. By late 1958, confiscated assets could be reinvested in India, a development Siemens swiftly capitalized on due to its re-established Indian operations. In contrast, AEG, which opted to export to South Asia rather than restore its local presence, faced a seven-year delay. The chapter highlights the intersection of politics and business in post-war economic diplomacy, demonstrating how corporate strategies adapted to evolving international negotiations.
