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TEUNAR
SBOMET
- 2 -
E. SERVICE"
ARCHIVES AND
RECORDS
agresment with respact to a asttlement of the question of economic umi ty until
a satisfactory resolution was reached on the questions of Germen coal exports
and of the integration of the Saer into the French economy. With respect to
the specific U.S. proposals, the Franch indicated a reluctance to share the
burden of the present import deficit, and a preference for retaining Allied
direction of central German administrative agencies.
The Soviet Union made it clear that no agreement on sconomic unity could
be reached until the reparations issue was settled to their satisfaction. In
addition, the Soviets insisted on modifications of the U.S. proposals so as
to protect thair position on reparations, and in particular preserve the in-
terests they have acquired in German industrial enterprises. The Soviets also
disagreed with the U.S. proposals on other principal issues, relating ,to the
authority of the German central agencies, the sharing of an interim import
deficit, the definition and limitation of occupation costs, and the method of
instituting financial reforme
Since the break=up of the mseting of the Council of Foreign Ministers at
Moscow without agreement, the Allied Control Authority in Berlin has discussed
certain of the problems which had been raised, Success has been confined to an
agreement largely reached on the question of definition of occupation costs.
During the same period, discussions have proceeded from time to time with the
French on the questions of German coal exports and on the integration of the
Saar with France with a view of laying a basis for understanding with the French
on these issues should the French again relate them to the question of economic
unity.
The most significant development in regard to the question of economic unity
that has occurred since the Council of Forsign Ministers has been the decision
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"ocrText": "TEUNAR\nSBOMET\n- 2 -\nE. SERVICE\"\nARCHIVES AND\nRECORDS\nagresment with respact to a asttlement of the question of economic umi ty until\na satisfactory resolution was reached on the questions of Germen coal exports\nand of the integration of the Saer into the French economy. With respect to\nthe specific U.S. proposals, the Franch indicated a reluctance to share the\nburden of the present import deficit, and a preference for retaining Allied\ndirection of central German administrative agencies.\nThe Soviet Union made it clear that no agreement on sconomic unity could\nbe reached until the reparations issue was settled to their satisfaction. In\naddition, the Soviets insisted on modifications of the U.S. proposals so as\nto protect thair position on reparations, and in particular preserve the in-\nterests they have acquired in German industrial enterprises. The Soviets also\ndisagreed with the U.S. proposals on other principal issues, relating ,to the\nauthority of the German central agencies, the sharing of an interim import\ndeficit, the definition and limitation of occupation costs, and the method of\ninstituting financial reforme\nSince the break=up of the mseting of the Council of Foreign Ministers at\nMoscow without agreement, the Allied Control Authority in Berlin has discussed\ncertain of the problems which had been raised, Success has been confined to an\nagreement largely reached on the question of definition of occupation costs.\nDuring the same period, discussions have proceeded from time to time with the\nFrench on the questions of German coal exports and on the integration of the\nSaar with France with a view of laying a basis for understanding with the French\non these issues should the French again relate them to the question of economic\nunity.\nThe most significant development in regard to the question of economic unity\nthat has occurred since the Council of Forsign Ministers has been the decision"
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