Pauley Files

No. 963
Proposal by the Soviet Delegation [?]1

Reparation claims of USSR shall be made by removals from the zone of Germany occupied by the USSR.
The USSR undertakes to settle the reparations claims of Poland from its own share of reparations.
The reparations claims of the United States, the United Kingdom and other countries entitled to reparations shall be made from the western zones.
In addition to the reparations to be taken by the USSR from its own zone of occupation, the USSR shall receive additionally from the western zones:
15 per cent of such usable and complete industrial capital equipment, in the first place from the metallurgical, chemical and machine manufacturing industries unnecessary for a peace economy, and should be removed from the western zones of Germany, in exchange for an equivalent value of food, coal, potash, zinc, timber, clay products, petroleum and petroleum products, and such other commodities as may be agreed upon.
10 per cent of such industrial capital equipment as is unnecessary for a peace economy, and should be removed from the western zones, to be transferred to the Soviet Government on reparations account without payment or exchange of any kind in return.
Removals of industrial capital equipment shall be completed within two years of the date hereof in exchange for products to be delivered by the USSR in agreed instalments within five years of the date hereof. The determination of the amount and character of the industrial capital equipment unnecessary for a peace economy and therefore available for reparation shall be made by the Control Council under policies fixed by the Allied Commission on Reparations, with the participation of France, subject to the final approval of the zone commander in the zone from which the equipment is to be removed.
The amount of equipment to be removed from the western zones on account of reparations must be fixed within six months from now at the latest.2
  1. This paper, undated and without title, was found in the Pauley Files in a folder marked “Russian Proposals”. It is apparently a revision of document No. 1425 prepared following the discussion at the Eleventh Plenary Meeting, July 31. Cf. the attachment to document No. 972.
  2. There is the following penciled addendum partly in Pauley’s handwriting (cf. ante, p. 517, and post, document No. 1425):

    To be included in the Protocol.

    “in consideration of higher percentages in paragraphs 4 (a) and (b), the U. S. S. R. withdrew the claim previously advanced to receive on account of reparations:

    • a. Shares of industrial and transport enterprises in the Western zones to the total amount of $500 million;
    • b. 30% of all German foreign assets;
    • c. 30% of German gold which came into the hands of the Allies.”