Office of the Historian

C.F.M. Files: Lot M–88: Box 2061: CFM Documents

Proposal by the United Kingdom Delegation to the Council of Foreign Ministers27

secret
C.F.M.(46) 224
Paris, 11 July, 1946.

German Questions

In order to put into practice the principles of treating Germany as an economic whole and to regulate in an orderly manner the taking of reparations from current production the four Powers agree that:

(1)
there should be equitable distribution of indigenous resources throughout Germany;
(2)
Indigenous resources surplus to the approved requirements of one zone must be made available to meet deficit in the approved requirements of other zones. The Control Council for Germany should establish procedures whereby the four occupying Powers may satisfy themselves that this principle is being effectively carried out.
(3)
If a surplus of current production in any zone is not required in that zone or in any other zone, it may only be exported as reparation if there is no deficit in the balance of payments of any other zone. Should such a deficit exist the surplus must be treated as a commercial export and paid for in an acceptable currency, the proceeds being used towards meeting the said deficit. The proceeds of exports from stocks shall be treated similarly.

  1. This paper was circulated to the Council of Foreign Ministers at the end of its 39th Meeting, July 10, 1946, and was discussed by the Council at its 40th Meeting, July 11, 1946. For the United States Delegation Records of the meetings under reference, see pp. 877 and 880.↩