Pauley Files

No. 1041
Draft of Report by the Economic Subcommittee1


Draft Report of the Economic Sub-Committee

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A. Economic Principles

The U. S. and U. K. representatives have agreed to paragraph 13 (c)3 of the Economic Principles only on the assumption that “Germany” is Germany as it existed on the 31st December, 1937. On this assumption they maintain that the principle should be accepted that, in the absence of special reasons to the contrary, the food and fuel requirements of the Greater Berlin area should be drawn from those areas in Germany from which they were derived before the war. On the other hand, if any part of Germany as it existed on the 31st December, 1937 is to be administered by, or transferred to, Poland, suitable arrangements should be made for the rest of Germany, including the Greater Berlin area, to have a prior claim to the surplus food and coal produced in such transferred territory to meet deficiencies in local supplies. This arrangement should last at least for so long as the extreme shortage of coal and foodstuffs [Page 1025] continues. The Soviet representatives do not accept this principle and maintain that, whatever the frontiers of Germany may be, equitable distribution of essential commodities between zones should take place.

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  1. The text here printed includes a number of minor manuscript revisions.
  2. For the other sections of this draft report, see document No. 859.
  3. See appendix A to document No. 859.