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CONF IDENTIA - -28- - to individual claimants is a decision not concerned with the admini- stration of Germany it is planned that this function will be performed by a permanent Reparations Agency made up of representatives of all the major claimant nations. It is intended that the Reparations Agency shall be created in the near future. (j) The final word of paragraph 4, !simultaneously", means that the bookkeeping for removals of industrial capital equipment to the USSR from the Western Zones shall show that each plant and each piece of equipment removed is to be delivered free to the extent of 40 percent of its agreed value, as determined by the Control Council. The remaining 60 percent of the value is to be covered by import con- tracts and schedules agreed between the Western Zones, acting jointly, and the USSR. While the Zone Commander may make deliveries to the USSR, after the interim or the final program has been determined under paragraphs 6 and 7, it would be well to insist upon the early con- clusion of the required "trade agreement" called for under paragraph Kansas MATIONAL ARO the 4 (a). . It is the purpose of this final clause of paragraph 4 to give the USSR "free" deliveries pari passu with "trade" deliveries, and to protect the Zone against making all the "free" deliveries first before coming to the "trade" deliveries. Paragraph 5. The determination of the amount of equipment to be removed on account of reparations from the Western Zones is a task which will require not only vigorous action within each Western Zone, but also, CONF TIDENTIAL

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    "ocrText": "CONF IDENTIA\n- -28- -\nto individual claimants is a decision not concerned with the admini-\nstration of Germany it is planned that this function will be performed\nby a permanent Reparations Agency made up of representatives of all\nthe major claimant nations. It is intended that the Reparations Agency\nshall be created in the near future.\n(j) The final word of paragraph 4, !simultaneously\", means\nthat the bookkeeping for removals of industrial capital equipment to\nthe USSR from the Western Zones shall show that each plant and each\npiece of equipment removed is to be delivered free to the extent of\n40 percent of its agreed value, as determined by the Control Council.\nThe remaining 60 percent of the value is to be covered by import con-\ntracts and schedules agreed between the Western Zones, acting jointly,\nand the USSR. While the Zone Commander may make deliveries to the\nUSSR, after the interim or the final program has been determined under\nparagraphs 6 and 7, it would be well to insist upon the early con-\nclusion of the required \"trade agreement\" called for under paragraph\nKansas MATIONAL ARO the\n4 (a). .\nIt is the purpose of this final clause of paragraph 4 to give\nthe USSR \"free\" deliveries pari passu with \"trade\" deliveries, and to\nprotect the Zone against making all the \"free\" deliveries first before\ncoming to the \"trade\" deliveries.\nParagraph 5.\nThe determination of the amount of equipment to be removed\non account of reparations from the Western Zones is a task which will\nrequire not only vigorous action within each Western Zone, but also,\nCONF TIDENTIAL"
}