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DEPARTMENT INCOMING DIVISION OF OF DECLASSIFIED CENTRAL SERVICES STATE E.O. 11652, Sec. 3(E) and 5(D) or (E) TELEGRAM TELEGRAPH SECTION Dept. of State letter, Aug. 10, 1972 By NLT-LL NARS Date 7-23-25 DSH-31 Moscow via War This telegram must be closely paraphrased be- Dated June 30, 1945 fore being ommunicated to anyone. (SCORET) REC'd 1:20 p.m., July lst Secretary of State Washington 2357, June 30, Midnight FROM PAULEY FOR SECRETARY OF STATE One. The Russian reparation plan includes transfers of shares of GErman corporations as indicated in Crimea protocol. Two. WE propos E to oppos E such transfers on following grounds : (A) Value of shares will be limited by Economic s ecurity program. MorEOVER acceptance of shares may furnish an incentive for maintaining facilities useful for war and for rebuilding. GErman industry generally. (B) Ownership of GErman corporations through share holdings is unnecessary for full collection of reparations in kind. Full control over GErman Economy will be by occupying pow ers during reparation period and during such period no addi- tional benefits could be secured from dividends on shares since annual reparation in kind presumably will be Exacted up to the : ARCHIVES AN SERVICE" WECOROS NATIONAL