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TOP SECROI - 10 - (4) Soviet Enterprises in the Eastern Zone. The Western Powers agreed on the following summary statement in CFM/P/49/3 concerning the Soviet "A.G.°S in Eastern Germany V Any industrial enterprise in Germany whose ownership or control was acquired after May 8th, 1945, by or on behalf of any foreign powers would be surrendered and disposed of in accordance with appropriate German legislation unless such acquisition has quadripartite approval and the interest so approved is subjected to german law." The experts of the Western Powers agreed on the following arguments which would be used against Soviet ownership of these enterprises. (a) Control over the productive facilities of one section of Germany by a foreign power was incompatible with the economic unity of the country. (b) Soviet control of the enterprises con- stituted a permanent interference in the Eastern Zone which was economically and politically dangerous to a unified Germany. 2 (c) The Potsdam Agreement did not sanction the acquisition of enterprises by any of the occupying powers. It provided that the repara tion claims of the Soviet Union should be met by removals from the Soviet Zone and from appropriate German external assets. There was considerable difference of opinion among the Western Powers over the actual procedure for bringing about the relinquishment of Soviet control over the A.d. S. One point at issue concerned what should be done if, after should then claim the right to remove the equipment of the agreeing to relinquish control over the A.G.° S the Soviets A.G. °s to the Soviet Union as reparations. In discussion of this point, Mr. Acheson observed "that 1t might be difficult to deny the Russians rights under Potsdam to 1. USDEL Working Paper/" rev. 1, May 29, 1949, VII. 2. Preliminary Tripartite Conversations: Report to the Foreign Ministers, May 20, 1949, p. 3. 3. USDEL Working Paper/? rev. 1, May 29, 1949, VII. HARRY S. TRUMAN LIBRARX TOP SECREAL

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    "ocrText": "TOP SECROI\n- 10 -\n(4) Soviet Enterprises in the Eastern Zone.\nThe Western Powers agreed on the following summary\nstatement in CFM/P/49/3 concerning the Soviet \"A.G.°S\nin\nEastern Germany V Any industrial enterprise in\nGermany whose ownership or control was acquired after\nMay 8th, 1945, by or on behalf of any foreign powers\nwould be surrendered and disposed of in accordance\nwith appropriate German legislation unless such\nacquisition has quadripartite approval and the\ninterest so approved is subjected to german law.\"\nThe experts of the Western Powers agreed on the\nfollowing arguments which would be used against Soviet\nownership of these enterprises.\n(a) Control over the productive facilities\nof one section of Germany by a foreign power was\nincompatible with the economic unity of the\ncountry.\n(b) Soviet control of the enterprises con-\nstituted a permanent interference in the Eastern\nZone which was economically and politically\ndangerous to a unified Germany. 2\n(c) The Potsdam Agreement did not sanction\nthe acquisition of enterprises by any of the\noccupying powers. It provided that the repara\ntion claims of the Soviet Union should be met by\nremovals from the Soviet Zone and from appropriate\nGerman external assets.\nThere was considerable difference of opinion among\nthe Western Powers over the actual procedure for bringing\nabout the relinquishment of Soviet control over the A.d. S.\nOne point at issue concerned what should be done if, after\nshould then claim the right to remove the equipment of the\nagreeing to relinquish control over the A.G.° S the Soviets\nA.G. °s to the Soviet Union as reparations. In discussion\nof this point, Mr. Acheson observed \"that 1t might be\ndifficult to deny the Russians rights under Potsdam to\n1. USDEL Working Paper/\" rev. 1, May 29, 1949, VII.\n2. Preliminary Tripartite Conversations: Report to the\nForeign Ministers, May 20, 1949, p. 3.\n3. USDEL Working Paper/? rev. 1, May 29, 1949, VII.\nHARRY S. TRUMAN LIBRARX\nTOP SECREAL"
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