740.00119 (Potsdam)/5–2446

No. 352
Briefing Book Paper 1
[Extract]2
top secret

Policy Toward Germany

. . . . . . .

Agreement on German Exports Prior to a Reparation Settlement

This Government recognizes that it may be necessary for each of the occupying powers to make available to the countries for which they have some supply responsibility German goods and equipment urgently needed for relief and rehabilitation. In many cases, it will be impossible to await the conclusion of formal agreements on reparation before undertaking such exports from Germany. This government, however, would like to obtain agreement among the occupying powers, (1) that such exports should be confined to goods and equipment which are urgently needed for the relief and rehabilitation of liberated countries, with special emphasis on railroad rolling stock, coal, and textiles, and (2) that a complete record be kept of all goods and equipment taken out of Germany for this purpose and that this record be made available promptly to the Control Council.

[Appendix A—Extracts]
Draft Agreement on Treatment of Germany in the Initial Control Period
top secret

. . . . . . .

9. Allied controls shall be imposed upon the German economy but only as may be necessary:—

(a)
to carry out programmes, as prescribed by higher authority,3 of industrial disarmament and demilitarisation, of reparations, of relief for liberated areas and of other supplies as may be notified;

. . . . . . .

[Page 508]

10. No action shall be taken in execution of the reparations programme or otherwise which would tend to support basic living standards in Germany on a higher level than that existing in any one of the neighboring United Nations.4

11. The first charge on all approved exports for reparations or otherwise shall be a sum necessary to pay for approved imports.5

12. Recurrent reparations should not by their form or amount require the rehabilitation or development of German heavy industry and should not foster the dependence of other countries upon the German economy.6

. . . . . . .

  1. Annex 2 to the attachment to document No. 177.
  2. For the full text of this paper and its appendix, see document No. 327.
  3. The words “as prescribed by higher authority” have been stricken from the draft in Byrnes’ and Matthews’ copies of the Briefing Book.
  4. The following manuscript notation appears in the margin of Byrnes’ copy of the Briefing Book opposite this paragraph: “out”. In Matthews’ copy this paragraph has been stricken from the draft.
  5. In Matthews’ copy this paragraph has been marked to be stricken from the draft.
  6. In Matthews’ copy this paragraph has been stricken from the draft and the following manuscript substitute written in the margin: “12. The principles governing the exaction of reparations from Germany are set forth in Annex i to this agreement.”