Extracted text

OCR Page 1 of 6
ANNEX 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