Memorandum from the Department of State to President Harry S. Truman

DEPARTMENT OF STATE WASHINGTON MEMORANDUM FOR THE PRESIDENT Subject: German Interim Financing 1. There is full agreement among the Department of State, the Treasury Department, the War Department and the Foreign Economic Administration regarding pro- posals which should be made to the British, the French and the Soviets with respect to procurement and interim financing of essential German imports. Such proposals would, of course, state that the sum necessary to pay for imports into Germany should be a first charge on all German exports from current German production or stocks on hand. These proposals, as recently advanced to the British, are contained in the attached memorandum. 2. In recent discussions the War Department has pointed out that up to the present its financial respon- sibility for supplies for Germany has not included imports necessary to meet all of the objectives of the Government of the United States included in the direc- tive to General Eisenhower. In particular, the War Department has confined its financing to imports for the consumption of occupying forces, displaced persons, and such minimum consumption by German civilians as is necessary to prevent disease and unrest. This would exclude imports necessary to effectuate approved programs of reparation, restitution and relief of Allied countries, and imports made necessary by reason of the elimination or restriction of particular German industries for dis- armament purposes. 3. The War Department has not indicated any un- willingness to accept any of these responsibilities but NATIONAL AND ARCHIVES SERVICE" RICORDS sensure