June 16, 1975, was a pivotal day in the history of the American Council on Germany.
Fifty years ago today, the ACG was deeply privileged to receive a $1 million grant from the German government. At a White House ceremony German Federal President Walter Scheel handed a check earmarked for the Council to U.S. President Gerald Ford – and the ACG’s John J. McCloy Fund was born.
The generosity of the German government – and its confidence in the work of the Council – was a gamechanger for the organization. This gift laid the foundation for a range of programs and activities designed to strengthen German-American relations. It also gave us the wherewithal to be an enduring actor in the transatlantic community.
Looking back, Willy Brandt’s Ostpolitik (starting in 1969) marked a major shift in West Germany’s foreign policy, seeking improved relations with East Germany and the Eastern Bloc. Under Presidents Nixon and Ford, the United States cautiously supported Ostpolitik as part of broader efforts at détente, aiming to ease Cold War tensions with the Soviet Union. U.S. support was critical in assuring NATO allies that Brandt’s outreach would not weaken Western cohesion. The early 1970s saw debates over burden-sharing within NATO. The U.S. expected West Germany to increase its defense contributions. Despite disagreements, military cooperation remained strong, and West Germany was a central part of the NATO alliance. There was economic friction. The collapse of the Bretton Woods system in the early 1970s led to tensions between the U.S. and West Germany over currency values and trade balances. The strong Deutsche Mark and growing West German export strength contributed to U.S. concerns about trade imbalances and inflation.
Against this backdrop, in the runup to America’s Bicentennial Chancellor Helmut Schmidt called upon Dr. Alex Möller, former German Finance Minister, to propose ways for the German government to participate in the celebrations. The hope in Bonn was to facilitate longer-term cooperative ventures involving the two countries.
The German government also sought to honor John J. McCloy, who was appointed U.S. High Commissioner for Germany in 1949 and served as the top U.S. official in the defeated nation. Reflecting on this role, he wrote that “our goal was to transform Germany from an occupied enemy into a trusted and reliable partner.” In his distinguished career, spanning the private and public sectors, Mr. McCloy served nine U.S. Presidents. He remained a strong believer in the value of the German-American relationship – and was the ACG’s founding Chairman. He remained active in the American Council on Germany until shortly before his death in 1989.
The Fund that took his name embodied John J. McCloy’s passion for building people-to-people connections, particularly among the younger generation. The premise of the funding was that “German and American relations would be helped substantially by developing a body of talented people with deep professional and personal interest in the issues of concern to both countries.” In establishing the McCloy Fund, the Federal Republic defined its major purpose as “the furtherance of exchanges between the United States and the Federal Republic of Germany and especially of important social groups not now covered by other existing programs.” Further, “the primary emphasis will be on bringing together young people of the two countries …” After considerable discussion, the ACG Board agreed to accept the gift, provided no conditions were attached.
The McCloy Fund allowed the ACG to undertake a range of programs – including the John J. McCloy Fellowships, giving young professionals in the fields of art, journalism, labor unions, law, and state and local government, and later agriculture and environmental affairs, the opportunity to travel between Germany and the United States to meet professional counterparts and exchange best practices.
Today, there are thousands of alumni of ACG programs whose professional development was shaped by the experiences they had as a result of the Council. These programs are the living legacy of Mr. McCloy, a true architect of the postwar world order whose commitment to transatlantic dialogue was unwavering. The Council remains deeply grateful for the German government’s generosity and its vote of confidence. The ACG’s McCloy Fund paved the way for myriad initiatives to strengthen the German-American partnership for fifty years. Today’s economic friction and debates over burden-sharing echo what we witnessed five decades ago. As we look ahead to the ACG’s 75th anniversary in 2027, the Fund will bear fruit far into the future – ensuring that any setbacks are temporary and our partnership prevails.