740.00119 (Potsdam)/7–2945

No. 952
United States Delegation Working Paper1

Draft—Case 1 (Agreement)

The Conference reviewed the work of the Allied Commission on Reparation and found itself in agreement on the principal aspects of the policy to be pursued in exacting reparation from Germany. It agreed that as far as possible reparation should take the form of immediate deliveries of existing capital equipment. Such deliveries will be carried out primarily for the purpose of eliminating Germany’s war potential. In particular, they will serve to reduce the productive capacity of the metals, machinery and chemical industries, which have been expanded far beyond peacetime needs. Such removals will also promote the economic reconstruction of Allied countries which have been devastated by German aggression.

The Conference recognized that the need of the Soviet Union for equipment to rebuild its heavy industries could not be adequately met from the resources of Eastern Germany. Accordingly, the three governments agreed that, in addition to transfers from the Soviet zone and Greater Berlin, the Soviet Union will receive substantial deliveries of equipment from the Ruhr–Westphalia industrial area.

The Soviet Union will make available from its zone considerable quantities of food and raw materials in order both to reduce as far as possible the necessity for imports into Western Germany and to assist in meeting the needs of other Allied Nations. These deliveries [Page 913]will permit more effective use of European supplies and will help to relieve the strain on overseas supplies and shipping.

The Control Council for Germany was charged by the Conference with working out detailed arrangements for giving effect to these agreed principles. The three governments will consult other Allied nations regarding the allocation of reparation to be exacted from Germany.

Draft—Case 2 (no agreement)

The Conference reviewed the work of the Allied Commission on Reparation but was unable to reach a decision at this time on a definitive program of reparation. The three governments therefore agreed that each of the occupying powers may exact reparation on an interim basis from its own zone in Germany. Each occupying power will also be entitled to make interim deliveries from its zone to other Allied countries which have been devastated by German aggression.

The Conference agreed that reparation deliveries will be carried out primarily for the purpose of eliminating Germany’s war potential. In particular, they will serve to reduce the productive capacity of the metals, machinery and chemical industries, which have been expanded far beyond peacetime needs. Such removals will also promote the economic reconstruction of Allied countries.

  1. Authorship not indicated.