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SECRET
-7- -
The US proposal for a zonal division of reparation shares was first
formally submitted to the Economic Sub-Committee of the Foreign Ministers
on July 25th. It had been informally discussed both in this Sub-Committee
and between Secretary Byrnes and Mr. Molotov prior thereto, The first
draft of the US proposal, to which the British had informally subscribed,
was as follows:
shall
TRENTH
RECORDS SERVICE a
AMD
I'US PROPOSAL ON REPARATIONS AND RELATED MATTERS
to
"In accordance with the recommendations of the Allied Commission on
Reparations, the Government of the United Kingdom, the United States and
the Union of Soviet Socialist Republics have agreed on the following program
for the exaction from Germany of reparations and other Allied levies:
by
"A. Available reparations shall be divided among claimant nations to
the extent that they have borne the burden of the war, have suffered losses,
and organized victory over the enemy.
"B. Except as otherwise directed by the Allied Control Council each
of the four Powers occupying Germany - the United Kingdom, the United States,
the USSR, and remove or permit to be removed from its zone of
occupation capital equipment, current production, and stocks of goods
either to pay for necessary approved imports not otherwise paid for or after
such payment for imports has been effected for its own account or for the
reparation account of any other United Nation entitled to reparations.
intro
Removals shall not be such as would be incompatible with the production
and maintenance of goods and services required to meet the needs of the
occupying forces and to maintain in Germany the approved standards of
living, including such exports as are required to pay for approved imports
for the occupying forces and the population of Germany. Removals should
not be such as would be inconsistent with the treatment of Germany as a
ret
single economic unit.
"C. In exacting removals for reparation and other Allied levies, the
occupying Powers shall be governed by the following principles:
11
Removals of property shall be primarily such as to assist in
bringing to an end the war-making power of Germany by eliminating that
part of Germany's industrial capacity which constitutes war potential.
"2. Removals shall be such as will speed recovery and reconstruction
in countries devastated at German hands,
olsy
products
be
by
the
Soviets.
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"ocrText": "SECRET\n-7- -\nThe US proposal for a zonal division of reparation shares was first\nformally submitted to the Economic Sub-Committee of the Foreign Ministers\non July 25th. It had been informally discussed both in this Sub-Committee\nand between Secretary Byrnes and Mr. Molotov prior thereto, The first\ndraft of the US proposal, to which the British had informally subscribed,\nwas as follows:\nshall\nTRENTH\nRECORDS SERVICE a\nAMD\nI'US PROPOSAL ON REPARATIONS AND RELATED MATTERS\nto\n\"In accordance with the recommendations of the Allied Commission on\nReparations, the Government of the United Kingdom, the United States and\nthe Union of Soviet Socialist Republics have agreed on the following program\nfor the exaction from Germany of reparations and other Allied levies:\nby\n\"A. Available reparations shall be divided among claimant nations to\nthe extent that they have borne the burden of the war, have suffered losses,\nand organized victory over the enemy.\n\"B. Except as otherwise directed by the Allied Control Council each\nof the four Powers occupying Germany - the United Kingdom, the United States,\nthe USSR, and remove or permit to be removed from its zone of\noccupation capital equipment, current production, and stocks of goods\neither to pay for necessary approved imports not otherwise paid for or after\nsuch payment for imports has been effected for its own account or for the\nreparation account of any other United Nation entitled to reparations.\nintro\nRemovals shall not be such as would be incompatible with the production\nand maintenance of goods and services required to meet the needs of the\noccupying forces and to maintain in Germany the approved standards of\nliving, including such exports as are required to pay for approved imports\nfor the occupying forces and the population of Germany. Removals should\nnot be such as would be inconsistent with the treatment of Germany as a\nret\nsingle economic unit.\n\"C. In exacting removals for reparation and other Allied levies, the\noccupying Powers shall be governed by the following principles:\n11\nRemovals of property shall be primarily such as to assist in\nbringing to an end the war-making power of Germany by eliminating that\npart of Germany's industrial capacity which constitutes war potential.\n\"2. Removals shall be such as will speed recovery and reconstruction\nin countries devastated at German hands,\nolsy\nproducts\nbe\nby\nthe\nSoviets."
}