740.00119 (Potsdam)/7–3145

No. 882
United States Delegation Working Paper 1

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

Economic Principles

[Editor’s Note.—The opening paragraphs of this text are identical with paragraphs 10 to 16 of the attachment to document No. 863, except that:

The final sentence of paragraph 10 has been amended to read: “Productive capacity not needed for permitted production shall be removed in accordance with the reparations plan recommended by the Allied Commission on Reparations and approved by the Governments concerned, or if not removed shall be destroyed.”
The changes recommended in paragraphs 3 (b) and 3 (c) of document No. 878 have been made in paragraphs 14 (d) and 13 (e) and (g), respectively.]

17. Removals as restitution shall be governed by the following:

Upon application by any Allied Government, restitution may be made of the following categories of property, wherever found, if [Page 819] such property is identifiable and was removed from occupied territory by the enemy by whatever means:2
Heavy industrial and agricultural equipment, and unique machinery;
Rolling stock and other railroad or transportation equipment;
Works of art, religious, historical, educational, or cultural objects, libraries, scientific equipment, and other laboratory or research materials related to organized inquiry into the arts and sciences.
All questions of restitution shall be dealt with on behalf of the injured property owners by the Allied Nations of which they are citizens, unless such Allied Nation shall make other arrangements with the Allied Nation from whose territories the property was removed.

18. Appropriate steps shall be taken to exercise control and the power of disposition over German owned external assets, in accordance with the Declaration of ——— 3 1945.

19. Ownership by nationals of United Nations or neutral nations shall not impede the carrying out of Paragraph 10. Removals from Germany of properties of nationals of United Nations or neutral nations shall be governed by the following:

Properties of nationals of United Nations.
Governments of the United Nations shall be invited to submit statements to the Control Council covering the nature and extent of property in Germany of their “respective nationals, and Allied representatives shall have facilities and free access [to] such properties for the purpose of investigating claim and appraising properties.
Where practicable and desired by the government of the owner, removal shall be effected without transfer of title.
In all other cases, compensation shall be provided by the establishment of Reichsmark deposits to the account of the government of the owners, on the basis of valuations by the Control Council. The country receiving such removed property shall make arrangements, prior to the removals to liquidate such deposit accounts in acceptable foreign exchange in payments spread over a short period of years.
Properties of nationals of neutral nations.
Governments of neutral nations shall be permitted to file with the Control Council statements covering the nature and extent of property in Germany of their respective nationals[.] Reichsmarks in the amount of the valuations made by the Control Council shall be deposited to the account of such governments by way of compensation.

[Page 820]

20. Measures shall be promptly taken:

to effect essential repair of transport; (b) to enlarge coal production;
to maximize agriculture output; and
to effect emergency repair of housing and essential utilities.

  1. The “Index of Attachments to Summary of the Negotiations in the Economic Sub-Committee” (file No. 740.00119 (Potsdam)/7–3145) lists this paper as follows: “Proposed Redraft of Economic Principles—not used.”
  2. In a copy of this document in the Pauley Files, this entire paragraph is underscored (here represented by italics) to indicate new language. The same is true of paragraph 19 below and its subparagraph (a).
  3. Blank in the original.