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-73- - -
The first-charge principle was accordingly
included in the British draft proposal on repara-
tions at Yalta, as follows: "In fixing the amount
of reparations to be exacted from Germany
account shall be taken of
the requirements of
the occupying forces and Germany's need to acquire
from time to time sufficient foreign currency from
her exports to pay for her current imports and the
pre-war claims of the United Nations on Germany.
"1
It will be noted that in the original proposal, the
British wanted to give not only necessary imports,
but also occupation costs and pre-war claims a
priority over reparations. The British proposals
regarding the first charge were not accepted by the
other delegations at Yalta, and it was partly for
this reason that the British so firmly opposed the
$20 billion plan advocated by the Soviets.
U.S. Policy Formulation
Soon after Yalta, the United States became
converted to the first-charge principle. The new
American policy, as developed by the Informal
policy Committee on Germany and approved by the
President on May 18, 1945, was as follows:
"The first charge on all approved exports
for reparation or otherwise (other than
removals of existing plant and equipment)
shall be a sum necessary to pay for approved
imports. Accordingly, to the extent necessary
to pay for such minimum German imports as may
be determined to be essential, recipient
countries should be required to pay for German
exports, except removals of existing plant and
equipment. Imports for which payment will be
sought shall include supplies imported by the
occupying forces for displaced persons and
German civilians. "2
Moscow
¹Attachment No. 4 to FM (Yalta). Feb. 10, 1945,
12:00 noon.
2
IPCOG 2/1, para. 3(d).
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"ocrText": "TOP SECRET\n-73- - -\nThe first-charge principle was accordingly\nincluded in the British draft proposal on repara-\ntions at Yalta, as follows: \"In fixing the amount\nof reparations to be exacted from Germany\naccount shall be taken of\nthe requirements of\nthe occupying forces and Germany's need to acquire\nfrom time to time sufficient foreign currency from\nher exports to pay for her current imports and the\npre-war claims of the United Nations on Germany.\n\"1\nIt will be noted that in the original proposal, the\nBritish wanted to give not only necessary imports,\nbut also occupation costs and pre-war claims a\npriority over reparations. The British proposals\nregarding the first charge were not accepted by the\nother delegations at Yalta, and it was partly for\nthis reason that the British so firmly opposed the\n$20 billion plan advocated by the Soviets.\nU.S. Policy Formulation\nSoon after Yalta, the United States became\nconverted to the first-charge principle. The new\nAmerican policy, as developed by the Informal\npolicy Committee on Germany and approved by the\nPresident on May 18, 1945, was as follows:\n\"The first charge on all approved exports\nfor reparation or otherwise (other than\nremovals of existing plant and equipment)\nshall be a sum necessary to pay for approved\nimports. Accordingly, to the extent necessary\nto pay for such minimum German imports as may\nbe determined to be essential, recipient\ncountries should be required to pay for German\nexports, except removals of existing plant and\nequipment. Imports for which payment will be\nsought shall include supplies imported by the\noccupying forces for displaced persons and\nGerman civilians. \"2\nMoscow\n¹Attachment No. 4 to FM (Yalta). Feb. 10, 1945,\n12:00 noon.\n2\nIPCOG 2/1, para. 3(d).\nTOP SECRET"
}