740.00119 EW/7–2245

No. 908
United States Delegation Working Paper1

Suggested Position on Economic Questions Relating to Germany, Poland, and Reparations

1. The Allied Commission on Reparations in Moscow has made important progress, agreeing on a number of principles and providing the basis on which other major issues can be settled at this conference. With such decisions, the task of “reparations” becomes largely an operating problem. The Commission has therefore completed its work, and future operations fall within the competence of the Control Council and the Zone Commanders. There shall be established a committee of representatives of United Nations which participated directly in the war to advise the Control Council on allocation among claimants.

2. The agreed material on economic treatment of Germany and reparations contained in the report of the Economic Sub-Committee2 shall be approved.

3. A definition of restitution shall be adopted and representatives of the Allied Nations shall be permitted to move freely about the four zones and shall be given appropriate facilities to identify their property falling within this definition.

4. No attempt shall be made to distinguish between “war booty” and “reparaturns” as regards capital equipment within the 1937 German borders. The Control Council shall establish detailed policies with respect to industrial disarmament and the kinds and quantities of capital equipment which must be destroyed or removed (Economic Principles #10 and 14a).3 Within the framework of such [Page 850]policies, the Zone Commanders shall administer the removals of capital equipment from their respective zones.

5. In practice Soviet and Polish claims will be met from the eastern zone.

6. There is agreement in the Economic Sub-Committee that sufficient exports from Germany must be set aside to pay for necessary imports as well as to provide immediate means for reimbursement for all net advances made by the occupying powers for financing necessary imports into Germany.

Goods available from current production and stocks in hand for reparation deliveries shall be administered as set forth in 1, 4 and 5.

7. Arrangements shall be made for the exchange between areas occupied and administered by Poland and the rest of Germany of foodstuffs, coal, and other necessary products customarily provided from the eastern area for products of the other regions of Germany, in order that there may be achieved the objectives of Economic Principle #14, especially paragraphs (b) and (c).

  1. The file copy bears the following manuscript notation by Mosely: “Collado July 22, 1945 Potsdam”.
  2. Documents Nos. 863 and 902.
  3. See the attachment to document No. 863.