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Little has been written about the important aspectsfor international relations of the private propertyrestitution issue in Europe and, in spite of itssalience, this issue did not receive extensivecoverage in the relevant literature. This thesis aimsat filling some of the gap in the relevant literatureas it explores the case of the Sudeten Germansexpelled from Czechoslovakia between 1945 and 1948with their property being expropriated under theBenes Decrees. The analysis concentrates on therelations between Germany and Austria (as the hoststates for the Sudeten minority) on one side and theCzech Republic on the other. Despite the fact that itwould be natural for Austria and Germany to promoterights of its citizens, the Sudeten Germanrestitution claims has never been a priority in theforeign policy of the two countries. To resolve thisapparent contradiction the thesis argues thatadvocates of the Sudeten German rights have possessedlow degree of influence on the domestic level.Nevertheless, manipulation of the issue by thepolitical forces in all three countries has beencomplicating interstate relations.