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Memorandum for the Record, by the Director of the Office of European Affairs (Matthews) and the British Deputy Under-Secretary of State for Foreign Affairs (Hall-Patch)

[New York,] December 2, 1946.

In arriving at the agreement of 2 December, 1946, the representatives of the U. S. and the U. K. accepted the following points of detail:

1.
Subject to the provisions of paragraphs 3 and 4 below, the sum of $29,300,000 to be made available to the Joint Export-Import Agency under the provisions of paragraph 6 (d) (i) of the main agreement shall be regarded by the Government of the United States as being in full settlement of all claims which they may have against the Government of the United Kingdom under the understanding reached in September 1945 for the pooling of the proceeds of exports from their two zones of Germany.
2.
On or after 1st January, 1947, the Government of the United Kingdom shall pay to the credit of the Joint Export-Import Agency, as may be agreed, the said sum of $29,300,000 with full payment to be effected by 1st April, 1947.
3.
The whole of any sum which the Government of the United Kingdom may receive from the Government of France for transportation charges on coal exported from Germany through the French Zone before the 1st April, 1946, shall be assigned by the Government of the United Kingdom to the Joint Export-Import Agency, over and above the sum of $29,300,000 referred to in paragraph 1 above.
4.
The following provisions shall govern the settlement of accounts for coal and electric power between Germany and Austria:—
(a)
The whole of any sum which the Government of the United Kingdom may receive for coal exported to Austria from the United Kingdom Zone of Germany prior to 1st April, 1946, shall be assigned by the Government of the United Kingdom to the Joint Export-Import Agency, over and above the sum of $29,300,000 referred to in paragraph 1 above.
(b)
The cost of coal imported from the United Kingdom Zone in Germany into Austria for the consumption of the occupying forces shall be paid by the occupying Powers.
(c)
The cost of coal imported from the United Kingdom Zone in Germany into Austria for civilian consumption in the period May 1945 to December 1946 inclusive shall be regarded as a charge on the Austrian Government.
(d)
The proceeds of electric power exported from Austria to Germany in the period May 1945 to December 1946 inclusive shall be applied to the payment of coal imported for civilian consumption in that period. The remaining coal debt shall be collected as and when Austria is capable of discharging it over the calendar years 1947, 1948 and 1949.
5.
Trade and commerce between the area and Austria will be a responsibility in Germany of the Joint Export-Import Agency which will negotiate with appropriate agencies in Austria. Imports into and exports from the area will be treated as a common responsibility. However, the Joint Export-Import Agency will not undertake indirect financial assistance to the Austrian economy at the expense of the German economy.
6.
In implementation of sub-paragraph 6(d) (iv) of the main agreement the Government of the United Kingdom will make available to the Joint Export-Import Agency the equivalent of their share in United States dollars at the same time and to the same amount as the corresponding contribution in kroner by the United States is made available.

H. Freeman Matthews
E. L. Hall-Patch