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OCR Page 1 of 6ANNEX I
GERMAN REPARATIONS
Agreed Principles.
The Allied Commission on Reparations has agreed on seven basic
principles (text attached).
Principle for Decision.
The ommission has failed to reach agreement on the underscored
last clause of an eighth principle:
"After payment of reparations, enough resources must be
left to enable the German people to subsist without external
assistance. In working out the economic balance of Germany,
5.
the necessary means must be provided for payment of imports
approved by the governments concerned before reparation
deliveries are made from current production or from stocks
is
of goods.
The United States Government fully concurs in these prin-
ciples and must insist that such necessary imports as are approved
by our governments shall constitute a first charge against exports
from Germany of current production and stocks of goods. To do other-
wise, will lead either to a repetition of our mistakes at the end of
the last war, or leave us unable to bring about the desired industrial
disarnament of Germany.
Definitions and Allocation of Reparations.
The United States proposes immediate agreement on defini-
tions of restitution, war booty, and reparations (text attached).
The Commission has agreed on a formula for allocation of reparations
between the U.S.S.R., U.K. and U.S. and a procedure for settling
the division of reparations among other countries (texts attached).
The United States Government feels that the definitions of
restitution, war booty, and reparations are so interrelated with the
formulae for allocation of reparations that agreement must be reached
on all of these matters simultaneously.
XI, ID
Terms
Subject
Potsdam Conference, 1945
Relations
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