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TOP SECRET E.O. 11652, Sec. 3(E) and 5(D) OI Dept. of State letter, Aug, 10, (B) -5- Dorte 6.26.75 1972 equipment; (2) a German living standard equal to the average for Middle Europe; (3) the entire ares of the old Reich to be considered a.s subject to reparations; (4) no reduction of German capacity for optical goods and textiles, as the Soviets consider these two indus- tries can yield a large part of their proposal for re- curring reperations of one billion dollars a year. Embassy Moscow Reports on Removal of Tood Supplies from Poland and Czechoslovakia In reply to the Depart- ment's request for information on food and other essen- tial supplies being moved from Poland or Czechoslovakia by the Soviets or used by Soviet military forces there, Imbassy Moscow reports that data are inadequate to permit a decision on withholding UNRRA's supplies. Ambessador Harriman recommends that a decision be postponed until US missions at Warsaw and Prague have had an opportunity to investigate the situation and report. Russia Proposea Direct Omership of German Corpora- tions. Ambessador Pauley has cabled that the Russien reparation plan contemplates the transfer of shares of German Corporations, as indicated in the Crimen protocol. This position is being opposed by the US delegation and Pauley reports that he understends the British are also opposed. The basis for Pauley's position is that (1) the value of the shares will be limited by the economic security program, since acceptance of shares may furnish en incentive for maintaining facilities useful for war; (2) full collection of reparations within a definite period ean be exacted without such ownership; (3) there would be the danger of cartel control of German industry for the ARCHIVES s. "NATIONAL SERVICE** RECORDS AND : correct

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    "ocrText": "TOP SECRET\nE.O. 11652, Sec. 3(E) and 5(D) OI\nDept. of State letter, Aug, 10, (B)\n-5-\nDorte 6.26.75 1972\nequipment; (2) a German living standard equal to the\naverage for Middle Europe; (3) the entire ares of the\nold Reich to be considered a.s subject to reparations;\n(4) no reduction of German capacity for optical goods\nand textiles, as the Soviets consider these two indus-\ntries can yield a large part of their proposal for re-\ncurring reperations of one billion dollars a year.\nEmbassy Moscow Reports on Removal of Tood Supplies\nfrom Poland and Czechoslovakia In reply to the Depart-\nment's request for information on food and other essen-\ntial supplies being moved from Poland or Czechoslovakia\nby the Soviets or used by Soviet military forces there,\nImbassy Moscow reports that data are inadequate to permit\na decision on withholding UNRRA's supplies.\nAmbessador Harriman recommends that a decision be\npostponed until US missions at Warsaw and Prague have\nhad an opportunity to investigate the situation and\nreport.\nRussia Proposea Direct Omership of German Corpora-\ntions. Ambessador Pauley has cabled that the Russien\nreparation plan contemplates the transfer of shares of\nGerman Corporations, as indicated in the Crimen protocol.\nThis position is being opposed by the US delegation and\nPauley reports that he understends the British are also\nopposed. The basis for Pauley's position is that (1)\nthe value of the shares will be limited by the economic\nsecurity program, since acceptance of shares may furnish\nen incentive for maintaining facilities useful for war;\n(2) full collection of reparations within a definite\nperiod ean be exacted without such ownership; (3) there\nwould be the danger of cartel control of German industry\nfor the\nARCHIVES s. \"NATIONAL SERVICE** RECORDS AND\n:\ncorrect"
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