740.00119 Potsdam/7–2345

No. 918
United States Delegation Working Paper 1

Memorandum

The question of the western boundaries of Poland has both political and economic aspects.

By agreement at Yalta,2 the western boundaries of Poland can only finally be fixed in the peace settlement.

Meanwhile, the Poles, under the aegis of the Soviet Armies, have moved their western boundary to the Oder–Neisse line.3

The President has several times pointed out that this unilateral action introduces into Germany a fifth occupying nation, contrary to agreement.4

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While continuing to maintain this position, we should attempt to reach agreement with the Soviets on the economic aspects of this matter.

Supply—Trade arrangements should be made for the exchange of substantial amounts of foodstuffs, coal, and other necessary products customarily provided by the Soviet Zone, including the area occupied by Poland, for products customarily supplied by the rest of Germany. While such production and interchange have been temporarily disrupted by war, much can now be speedily resumed.

Reparation, etc.—The Soviet Zone, including the area occupied by Poland, contains between 45 and 50 percent of the area and wealth of Germany. Soviet and Polish claims for reparation amount to about the same percentage of total claims. Soviet and Polish claims for reparation by removals of capital equipment (including “war booty or trophies”), current production, or stocks of goods should be met solely from the Soviet Zone. The claims of other nations should be met from the other zones.

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

  1. The source copy bears the following manuscript notation by Mosely: “Collado, note for Sec’y talk with Molotov July 23.” See ante, p. 274.
  2. See document No. 1417, section vi.
  3. See the map facing p. 1152, post.
  4. See ante, pp. 208, 251.