Moscow Embassy Files: 711.9 Reparations Commission II
The American Chargé in the Soviet Union (Kennan) to the People’s Commissar for Foreign Affairs of the Soviet Union (Molotov)
Dear Mr. Molotov: I have just been requested by Ambassador Pauley to transmit to you the following communication from him on the subject of the future activity of the Reparations Commission.
“Paragraph 6 of the section dealing with Reparations of the Berlin, Protocol provides that the determination of the amount and character of the industrial capital equipment unnecessary for the German. [Page 1245] peace economy and therefore available for Reparations 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 commanders in the zone from which the equipment is to be removed. Paragraph 7 of this same section provides for the same procedures as respects advance deliveries. A careful analysis of the economic and political principles incorporated in the Berlin protocol reveals that the policies which must guide the Control Council and the zone commanders in determining the amount and character of the foregoing removals have been clearly defined in paragraph 3 of the section on political principles and paragraphs 11, 14, 15, 18, and 19 of the section on economic principles. I am sure that you will agree that these policies already embody those that we had tentatively agreed upon in Moscow for the exaction of Reparations.
“Clearly, therefore, there is no present need of any further fixing of policies by the Allied Commission on Reparations. The Allied Control Council, together with the zone commanders, can thus proceed immediately with the task, assigned to them by the Chiefs of State, by administering the Reparations plan and of determining the extent and manner of removals from Germany as reparations. Accordingly, I submit that the only matter remaining at the present time for the agenda of the meeting of the Allied Commission on Reparations to be held in Moscow on August 7 is the formalizing of such policies as have already been decided upon by the Chiefs of State in the political and economic principles of the Berlin Protocol.”
Ambassador Pauley has requested that this communication be brought to the attention of Mr. Maiski.
Sincerely yours,