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TOP SECRET - 191 -- had passed under the control of the Soviet Government as the result of the armistices with Finland and Rumania. President Truman emphasized the need for German shipping in the war against Japan and in bringing supplies for the rehabilitation of Europe. "The meeting agreed in principle that without prejudice to the preparation of a scheme for the division of surrendered German merchant ships, all such ships should be available for use in support of the Allied war effort against Japan. "The British Delegation maintain their point of view that in the division of the surrendered German merchant shipping, account should be taken of the shipping taken as reparation by the Soviet Union from the Satellite States. Account should also be taken of the need for providing ships for local German purposes, in accordance with any recommendations which may be made by the Allied Control Council for Germany. Subject to these conditions, the British Delegation renew the suggestion made by Mr. Churchill on the 19th July that a fourth part be made available for division between the other Allied States whose merchant marines have suffered substantial losses at the hands of Germany. The share of the Soviet Union would in that case be one quarter of the total available. "The shares of the various Allied States would be counted as reparation receipts. "(4) The British Delegation cannot agree to the timetable proposed by the Soviet Delegation, since, as pointed out above, there is much essential preliminary investigation and listing to be done before the transfer of ships can begin. The British Delegation suggest that the follow- ing timetable should be approved in principle by the Conference: " (a) TOP SECRET

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    "ocrText": "TOP SECRET\n- 191 --\nhad passed under the control of the Soviet\nGovernment as the result of the armistices\nwith Finland and Rumania. President Truman\nemphasized the need for German shipping in\nthe war against Japan and in bringing\nsupplies for the rehabilitation of Europe.\n\"The meeting agreed in principle that\nwithout prejudice to the preparation of a\nscheme for the division of surrendered\nGerman merchant ships, all such ships\nshould be available for use in support of\nthe Allied war effort against Japan.\n\"The British Delegation maintain their\npoint of view that in the division of the\nsurrendered German merchant shipping,\naccount should be taken of the shipping taken\nas reparation by the Soviet Union from the\nSatellite States. Account should also be\ntaken of the need for providing ships for\nlocal German purposes, in accordance with\nany recommendations which may be made by\nthe Allied Control Council for Germany.\nSubject to these conditions, the British\nDelegation renew the suggestion made by\nMr. Churchill on the 19th July that a fourth\npart be made available for division between\nthe other Allied States whose merchant\nmarines have suffered substantial losses at\nthe hands of Germany. The share of the\nSoviet Union would in that case be one\nquarter of the total available.\n\"The shares of the various Allied\nStates would be counted as reparation\nreceipts.\n\"(4) The British Delegation cannot\nagree to the timetable proposed by the\nSoviet Delegation, since, as pointed out\nabove, there is much essential preliminary\ninvestigation and listing to be done before\nthe transfer of ships can begin. The\nBritish Delegation suggest that the follow-\ning timetable should be approved in principle\nby the Conference:\n\" (a)\nTOP SECRET"
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