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Potsdam
The first-charge principle was considered
initially by the Economic Sub-Committee at Potsdam.
The sub-committee deliberated for several days
without reaching agreement. The American and
British representatives proposed including in the
section on Economic Principles the following compre-
hensive statement regarding the import program and
the first-charge principle:
"The Control Council shall formulate as
soon as possible a program of minimum required
imports for Germany as a whole. Such a program
shall include provision for equitable inter-
zonal distribution of supplies available within
Germany so as to minimize the net deficit for,
and imports into, Germany as a whole. Responsi-
bility for the procurement and financing of
approved imports for Germany as a whole shall
be shared on a basis to be negotiated in the
Control Council. Reimbursement for all net
advances made for approved imports into
Germany shall be a first charge against the
proceeds of both exports of capital equipment
and of current production and stocks of goods
from Germany. "1
It will be noted that this went even further than
previous proposals, for it sought to make the first-
charge principle apply not only to the proceeds from
the export of current production and stocks, but also
to the proceeds from the export of capital equipment
as well. In other words, nearly all types of repara-
tions would be subject to the first-charge principle.
The Soviet member of the Economic Sub-Committee
did not accept the American-British proposal and
expressed the view that "reparations deliveries should
have priority and that imports into Germany should, if
necessary,
1
Economic Sub-Committee (Potsdam) "Report to the
Foreign Secretaries" , July 20, 1945. (collado Papers,
No. . 5.)
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"ocrText": "TOP SECRET\n- 76 -\nPotsdam\nThe first-charge principle was considered\ninitially by the Economic Sub-Committee at Potsdam.\nThe sub-committee deliberated for several days\nwithout reaching agreement. The American and\nBritish representatives proposed including in the\nsection on Economic Principles the following compre-\nhensive statement regarding the import program and\nthe first-charge principle:\n\"The Control Council shall formulate as\nsoon as possible a program of minimum required\nimports for Germany as a whole. Such a program\nshall include provision for equitable inter-\nzonal distribution of supplies available within\nGermany so as to minimize the net deficit for,\nand imports into, Germany as a whole. Responsi-\nbility for the procurement and financing of\napproved imports for Germany as a whole shall\nbe shared on a basis to be negotiated in the\nControl Council. Reimbursement for all net\nadvances made for approved imports into\nGermany shall be a first charge against the\nproceeds of both exports of capital equipment\nand of current production and stocks of goods\nfrom Germany. \"1\nIt will be noted that this went even further than\nprevious proposals, for it sought to make the first-\ncharge principle apply not only to the proceeds from\nthe export of current production and stocks, but also\nto the proceeds from the export of capital equipment\nas well. In other words, nearly all types of repara-\ntions would be subject to the first-charge principle.\nThe Soviet member of the Economic Sub-Committee\ndid not accept the American-British proposal and\nexpressed the view that \"reparations deliveries should\nhave priority and that imports into Germany should, if\nnecessary,\n1\nEconomic Sub-Committee (Potsdam) \"Report to the\nForeign Secretaries\" , July 20, 1945. (collado Papers,\nNo. . 5.)\nTOP SECRET"
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