740.00119 (Potsdam)/7–3145

No. 933
United States Delegation Working Paper1

Memorandum

Russians want of total reparations 50%
(Although, on formula which has been agreed to, they realize that the demands of countries other than the occupying powers, may cut this down a little.)
[Page 883]Since the Russian Zone now contains of the wealth of Germany 45%
it follows that the Russians should get from the other 3 zones the remaining 5%
(Although in the area to be ceded to Russia in East Prussia they get fee ownership to all property there, worth at least one billion dollars more than the simple right to take reparation from the same area.)
It is estimated that the Ruhr contains 50% of the removables in the U. K., U. S. & French Zones. Probably 40% of these removables can be taken as reparations and still leave sufficient to meet the minimum German requirements, as agreed upon.
This is equivalent to 20% of the removables of the whole U. S., U. K., French Zones. It is proposed to offer the Russians one half of this 20% equivalent to 10% of the whole. Half of this would be free, to balance the above-mentioned 5% deficit. The other half (5% of the whole) would be traded to the Russians for food, coal and other necessary supplies from their zone.
(Reparations to Poland would be more than balanced by the fact that they are acquiring fee ownership to very valuable property in the area which they expect to have ceded to them in the peace settlement.)
  1. Another copy of this paper (file No. 740.00119 Potsdam/8–245) is headed: “Statistical Proposal—Prepared by Clayton, not fully used”.