740.0011 E. W./7–1645
No. 893
The Representative on the Allied
Commission on Reparations (
Pauley
) to the Secretary of
State
[
Babelsberg
,] July 16, 1945.
My Dear Mr. Secretary: Because reparations
must include all transfers of property within the whole of the
German Reich as its
boundaries existed at the end of the year 1937, the relationship
between reparations and ceded German territory has been given
considerable study by our delegation.
Upon this subject, I attach a memorandum embodying four provisions
which I strongly recommend be included as a part of any agreement
entered into by the United States confirming the ceding of any
portion of Germany to other nations.
Respectfully,
[Attachment]
Memorandum by the United States Section,
Allied Commission on Reparations
1
Re: Relationship between Reparations and ceded
German territory
As a part of any agreement confirming the ceding of any portion
of Germany as its boundaries existed at the end of 1937, it
shall be provided that:
- 1.
- Any property or current production available for
removal from any ceded territory shall be first utilized
within Germany to whatever extent occupation authorities
require to avoid the necessity of imports into
Germany;
- 2.
- Thereafter, the value or proceeds of any property or
current production from any ceded territory available
for delivery outside of Germany shall be first used to
pay for approved imports into Germany;
- 3.
- If sufficient funds are available to pay for all such
approved imports, the proceeds or value of any assets
delivered from any ceded territory shall be treated as a
reparations deliveries [delivery]
to such nation or nations and in such amounts as may be
designated by the Allied Commission on Reparations, or a
permanent Reparations Agency to be created;
- 4.
- The value of all property remaining within the
boundaries of any territory ceded to any other nation
shall be counted as reparations. To the extent that the
current production of any such property is required to
be delivered for reparations, or, to defray the cost of
approved imports into Germany, an appropriate adjustment
in the value of such property shall be made.
