Pauley Files

No. 864
United States Delegation Working Paper1

Memorandum

With reference to the “Proposed Agreement on the Political and Economic Principles To Govern the Treatment of Germany in the Initial Control Period, Text as Submitted to the Foreign Secretaries by Economic Sub-Committee”,2 the following recommendations are made:

Economic Principles

Paragraph 13: Proposed alternative substitute for first sentence:

“During the period of occupation, Germany shall be treated as a single economic unit and the Allied Control Council shall have authority to issue directives to insure the consistent application of this principle in all zones of occupation.”

“During the period of occupation, Germany shall be treated as a single economic unit except in those instances as the Allied Control Council shall otherwise determine.”3

[Page 800]

Paragraph 13: There shall be added a further sub-section upon which common policies shall be established in Germany during the period of occupation, as follows:

(g) finance, transportation, and communications.

Paragraph 14 (d)4 on page 3, should either be stricken or amended to read as follows:

“Except with the approval of the Control Council or except where determined by the Government concerned to be required for the payments of necessary imports, no grant or credit to Germany or Germans by any foreign persons or Governments shall be permitted.”

  1. Authorship not indicated.
  2. Attachment to document No. 863.
  3. Another version of this working paper substitutes “may otherwise direct” for the last three words of this paragraph.
  4. Another version of this working paper indicates that only the last sentence of paragraph 14 (d) is affected by this recommendation.