Memorandum, Report of Drafting Committee on Protocol of German Reparation

REPORT OF DRAFTING COMMITTEE ON PROTOCIL OF GERMAN REPARATION No agreement was reached by the Committee on a protodil on German reparations. The U.S. and U.K. representatives considered that, in return for the percentages of capital equipment allocated to the Soviet Union under the terms of paragraph 4 of the attached draft, the U.S.S.R. had agreed to refrain from asserting a claim to German external assets, gold captured in Germany or securities of German corporations in the Western Zones, Therefore, the U.S. and U.K. repre- sentatives maintained that German external assets should be included in paragraph 3, as a source of reparation to coun- tries other then the U.S.S.R. Lacking this, the percentages in peragraph 4 would be unacceptable to the U.S. and U.K. representetives. The Soviet representative considered that no agreed deci- sion had yet been taken regarding relinouishment by the U.S.S.R. of a claim to external assets, gold and securities. There- fore the Soviet representatives did not accept the addition of German external assets in paragraph 3 and recommended that the matter should be referred to the Heads of Government. The attached draft would be acceptable to the U.S. and U.K. representatives upon condition that the Soviet repre- sentatives confirm the above underst anding regarding external assets, gold and securities. The Soviet representative stated that he could not agree with the way this question had been raised. TRUMAN XI,ID