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an undertaking by the occupying powers to guarantee
to the German people a standard of living equal to
the European average. The purpose was rather to
leav.e in Germany the necessary productive capacity
to make such a standard of living available to the
Germans. Furthermore, it was not the intent of the
negotiators that the standard of living of the German
people would be frozen indefinitely at a given level.
If the general European standard of living rose,
then the Allied Control Council would be justified in
raising the German standard correspondingly. This had
been recognized earlier by the Soviet representative
on the Reparations Commission in the discussions at
Moscow when he observed that the Allies should not
obligate themselves to hold the German standard of
living down to any set figure. Mr. Maisky remarked
that the Germans were an industrious and stingy
race who could be expected to try to raise their
standards above those initially computed.
B. RELATION OF REPARATIONS TO ECONOMIC UNITY
Paragraph 14 of the Economic Principles of the
Potsdam Agreement reads in part as follows:
"During the period of occupation
Germany shall be treated as a single economic
unit. To this end common policies shall be
established in regard to:
*
"(f) Reparations and removal of industrial
war potential;
"In applying these policies account shall
be taken, where appropriate, of varying local
conditions. "
Yalta
1
ACR Report, Appendix 41, p. 4.
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"ocrText": "TOP SECRET\n- 67 -\nan undertaking by the occupying powers to guarantee\nto the German people a standard of living equal to\nthe European average. The purpose was rather to\nleav.e in Germany the necessary productive capacity\nto make such a standard of living available to the\nGermans. Furthermore, it was not the intent of the\nnegotiators that the standard of living of the German\npeople would be frozen indefinitely at a given level.\nIf the general European standard of living rose,\nthen the Allied Control Council would be justified in\nraising the German standard correspondingly. This had\nbeen recognized earlier by the Soviet representative\non the Reparations Commission in the discussions at\nMoscow when he observed that the Allies should not\nobligate themselves to hold the German standard of\nliving down to any set figure. Mr. Maisky remarked\nthat the Germans were an industrious and stingy\nrace who could be expected to try to raise their\nstandards above those initially computed.\nB. RELATION OF REPARATIONS TO ECONOMIC UNITY\nParagraph 14 of the Economic Principles of the\nPotsdam Agreement reads in part as follows:\n\"During the period of occupation\nGermany shall be treated as a single economic\nunit. To this end common policies shall be\nestablished in regard to:\n*\n\"(f) Reparations and removal of industrial\nwar potential;\n\"In applying these policies account shall\nbe taken, where appropriate, of varying local\nconditions. \"\nYalta\n1\nACR Report, Appendix 41, p. 4.\nTOP SECRIST"
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