United States Delegation Working
Memorandum to Ambassador Pauley
In accordance with your instructions, your staff has reviewed the “Proposed Agreement on the Political and Economic Principles to Govern [Page 779] the Treatment of Germany in the Initial Control Period”2 and respectfully submits the following comments and suggestions:
(I) Insert the following at the beginning of the first sentence:
“Subject to the policies and provisions of any Agreements entered into between the Governments of the USSR, UK, and USA, …”4
(11) (b) The terms “starvation, disease and civil unrest” are noted. Under this, the area commander may in his own discretion maintain any plants that he may desire. This is broad power.
(d) The only financing that should be permitted should be incident to exports which are required for approved imports. Otherwise, our policy that exports should be a first charge against imports, would be undermined.
(13) Sentence should be amended by insertion of clause as indicated by underscoring:5
“During the period of occupation, the German Reich as its boundaries existed on December 31, 1987, shall be treated as a single economic unit.”