Report, Annex 5 to Council of Foreign Ministers Report 3, Reparation
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OCR Page 1 of 8Annex 5 to CFM 3
REPARATION
The Problem
To make a final effort to obtain Soviet agreement to the United States
interpretation of the provisions of the Berlin Protocol regarding reparation
to be paid by Germany, and to provide for the contingeney of a failure to
obtain such agreement.
TRUMAN
ARCHIVES S. "NATIONAL RECORDS AND
Discussion
SERVICE'*
The crux of the reparation the Moscow mesting of the CFM
was reparation from current production. The USSR, with the limited concur-
,
rence of France, which insisted that German coal exports be given priority
over current reparation, made acceptance of the principle of a substantial
volume of such reparation the absolute condition to Soviet acceptance of
economic unity. European countries not represented on the CFM had already
supported the principle of such reparation, aspecially in the form of coal,
and of transit and other services, before the Deputies at London.
All four powers on the CFM agreed on the necessity for an upward revi-
sion in the German level of industry, although the Soviet agreement was
conditioned by the demand for reparation from current production. The Secretary
indicated the willingness of the US to study the possibility of limited
reparation from current output as compensation "for the plants which were
destined for removal under the 1946 level of industry but which would not
be available under an upward revision of the level of industry." It was stipulated
that
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