Foreign Relations of the United States: Diplomatic Papers, The Conference of Berlin (The Potsdam Conference), 1945, Volume II

740.00119 E. W./7–2545

No. 930
The Representative on the Allied Commission on Reparations ( Pauley ) to the Assistant Secretary of State ( Clayton )¹

[ Babelsberg ,] July 25, 1945.

Dear Mr. Clayton : Attached are estimates of both ourselves and the Soviet Union on the comparative percentage of wealth in the Soviet occupied zone. In view of our present discussions I am sure they will be of interest to you.

Very truly yours,

Edwin W. Pauley

[Attachment 1]

[ Babelsberg ,] July 25, 1945.

Estimated Wealth in U. S. S. R. Zone of Occupation

1937 Boundaries

	U.S.Estimate	U.S.S.R.Estimate
	Percent	Percent
Industry & Mining	39.3	35.3
Agriculture	48.0	48.0
	87.3	83.3
Increase in industry due to removals into Eastern areas during war	5.0	3.0
	92.3	86.3
*Average	46.1	40.9
Add 3 percent as value of land ceded to USSR	3.0	0.0
	49.1	40.9

[Attachment 2]

Volume of Production in Soviet Zone and Berlin as Percentage of Total Germany—1936

		Per Cent
All Manufacturing		40.0
	Non-ferrous metals	40.7
	Machinery	42.1
	Electrical engineering	61.5
	Precision and optical instruments	50.9
	Non-ferrous metals products	44.5
	Ceramics and glass	49.5
	Saw mills	42.0
	Wood processing	46.6
	Paper and wood pulp	52.3
	Printing	50.8
	Textiles	44.4
	Apparel	61.3
	Liquor	50.7
	Utilities	44.2
	Building and miscellaneous	46.4
Mining		29.8
All Industrial Production (Manufacturing and mining)		39.3

Source: “Die Deutsche Industrie”, Reichsamt fur Wirtschaftliche Planung, Berlin 1939.

Note: The only administrative units which overlap zone boundaries are Brunswick, Bremen, Anhalt and Schaumburg–Lippe. Detailed statistics for industrial employment showed that 78 percent of the industrial employment in these areas was in territory now in the Soviet-occupied zone. Accordingly, 78 per cent of the industrial production of these areas was assumed to fall in this zone.

1. Printed from the ribbon copy, which bears only a typed signature.
2. U.S.weights agriculture and industry as equal in importance.U.S.S.R. weights industry as three times as important as agriculture.[Footnote in the original.]