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GOURIDENTIA
- -6 -
troatment of the four Zones in many of them.
13. It is to be noted that the final two lines of Article
III, paragraph 19 do not dissassociate all reparations a.s such from
the import-export programs of Germany. They simply mean that removals
to the USSR of capital equipment from the Western Zones (Art. IV, para.
4), shall not be used to balance off or pay for "imports approved by
the Control Council" as part of the general import program for Gormany
as a whole. That part of the value of each shipment "exchanged" under
4 (a) will be matched by earmarked imports under a special trade agree-
ment with the USSR: that part of the value of each shipment to be pro-
vided without "payment" under 4 (b) will be made "free" rogardless of
import necessities.
Single Economic Unit
14. The Borlin Protocol made specific the agreement of the
Allies to treat Gormany "as a single economic unit" throughout the
period of occupation. This is definitely stated in Article III,
Paragraph 14, and is roferred to by implication in many other sections.
The Protocol also specificelly provides that in the organization of
"the German economy primary emphasis shall be given to the development
of agriculture and peaceful domestic industrios.' (Article III,
as
paragraph 13) The acheivement of the demilitarization, industrial
SERVICE 2
disarmament, and reparations objectives provided for by the Protocol
to
will depend in large part upon recognition of the fact that German
productive capacity throughout Germany will have to be transformed,
with greater reliance being placed upon manpowor than upon machinery,
COMI FIDENTIAL
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"ocrText": "GOURIDENTIA\n- -6 -\ntroatment of the four Zones in many of them.\n13. It is to be noted that the final two lines of Article\nIII, paragraph 19 do not dissassociate all reparations a.s such from\nthe import-export programs of Germany. They simply mean that removals\nto the USSR of capital equipment from the Western Zones (Art. IV, para.\n4), shall not be used to balance off or pay for \"imports approved by\nthe Control Council\" as part of the general import program for Gormany\nas a whole. That part of the value of each shipment \"exchanged\" under\n4 (a) will be matched by earmarked imports under a special trade agree-\nment with the USSR: that part of the value of each shipment to be pro-\nvided without \"payment\" under 4 (b) will be made \"free\" rogardless of\nimport necessities.\nSingle Economic Unit\n14. The Borlin Protocol made specific the agreement of the\nAllies to treat Gormany \"as a single economic unit\" throughout the\nperiod of occupation. This is definitely stated in Article III,\nParagraph 14, and is roferred to by implication in many other sections.\nThe Protocol also specificelly provides that in the organization of\n\"the German economy primary emphasis shall be given to the development\nof agriculture and peaceful domestic industrios.' (Article III,\nas\nparagraph 13) The acheivement of the demilitarization, industrial\nSERVICE 2\ndisarmament, and reparations objectives provided for by the Protocol\nto\nwill depend in large part upon recognition of the fact that German\nproductive capacity throughout Germany will have to be transformed,\nwith greater reliance being placed upon manpowor than upon machinery,\nCOMI FIDENTIAL"
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