America at war! (1941–) – Part 5

7266

Proposal by the Soviet Delegation

[Babelsberg, July 23, 1945]
[Translation?]

Article 19 of ‘Economic Principles’

  1. After payment of Reparations enough resources must be left to enable the German people to subsist without external assistance. In working out the economic balance of Germany the necessary means must be provided for payment for imports approved by the Control Council. In case the means are insufficient to pay simultaneously on reparations account and for approved imports all kinds of deliveries (internal consumption, exports, reparations) have to be proportionally reduced.
740.00119 (Potsdam)/7-3145

Proposal by the Soviet Delegation

[Babelsberg, July 23, 1945]
[Translation?]

Article 19 of ‘Economic Principles’

  1. After payment of Reparations enough resources must be left to enable the German people to subsist without external assistance. In working out the economic balance of Germany the necessary means must be provided to pay for imports (in so far as they are approved by the Control Council). The exports to pay [for] such imports will have priority over Reparations and internal consumption.
740.00119 (Potsdam)/7-3145

Proposal by the Soviet Delegation

[Translation?]
Top secret
[Undated]

Plan of Reparations from Germany

  1. The total sum of Reparations 20 billion dollars which is accepted for consideration has to be covered approximately 50% by the way of once for all removals from the national wealth of Germany within two years after the capitulation and approximately 50% by the way of the annual deliveries in kind within 10 years after the capitulation.

  2. The once for all removals from the national wealth of Germany are to be exacted from the following branches of her economic life:

Billion dollars
1. War and chemical industries (aircraft production, tank production, naval shipbuilding, arms and ammunition production, production of powder and explosives, synthetic rubber and fuel, artificial fibre, cellulose, Koke-Chemie) 2,0-2,2
2. Iron and steel, non-ferrous metals, engineering (including electrical industry), coal, power stations 2,3- 2,7
3. Building industry, textiles, food industry, printing, transport (including water transport), communications (radio, telephone, telegraph), equipment of ports, warehouses, etc. 1,8- 2,0
4. Foreign investments and claims of Germany 1,1- 1,4
5. Shares of German enterprises (railways, ports, canals, etc.), foreign currency, precious metals 1,9- 2,3
6. Miscellaneous 0,9- 1,2
10,0- 11,8

For the purpose of removals German property situated on the territory of Germany in 1937 frontiers as well as German property abroad.

  1. To fix the following approximate list of goods with which the postwar Germany has to pay her annual deliveries in kind:
Coal, brickets Sugar
Chemicals (drugs, dyes, potassium etc.) Cattle, agricultural products Ceramics
Machinery, tools Medical instruments
Cement, building materials Optical apparatus
Timber, paper River shipbuilding

  1. To fix the total sum of annual deliveries in kind [at] 1 billion dollars per annum or 10 billion dollars in 10 years. To ask Allied Commission on Reparations to make more detailed calculations concerning these deliveries.

  2. The basis of calculations are prices of 1938 plus 15% on equipment and 10% on raw materials and finished goods.

  3. The rate of exchange: 1 dollar equals 3.5 marks.

740.00119 Potsdam/6-1945

Proposal by the Soviet Delegation

[Translation?]
Secret
[Undated]

On Advance Deliveries from Germany

  1. Pending the establishment of a permanent allied reparation agency, advance deliveries (removals) should be based upon the urgency of need of suffered Nations [nations which have suffered?] for rehabilitation purposes and should be made as advance deliveries with subsequent accounting of these deliveries as reparations or restitution, or for purchase account of the recipient nations.

  2. With respect to advance deliveries of capital goods to all United Nations, the following procedure should be adopted:

    a. Immediate establishment of a sub-commission of the Allied Commission on Reparations to be situated in Berlin, and to be composed of representatives of the nations participating in the Allied Commission on Reparations. This sub-commission should keep in constant consultation with the Control Council and should keep the Control Council informed of all its activities.

    b. The Allied Commission on Reparations will transmit to its sub-commission a list of industries from which advance deliveries of equipment will be allowed.

    c. Advance deliveries (removals) of capital equipment from those industries up to an agreed percentage of the movable assets, expressed in physical terms, may be made upon the approval or recommendation of the sub-commission. Shipping documents covering such advance deliveries (removals) shall include notification to the receiving country that in the final accounting such deliveries (removals) may be deemed by the Allied Commission on Reparations to be on account of reparations or restitution.

    d. Each of the occupying powers may remove or permit to be removed from its zone of occupation plant and equipment from any industries in such list, subject to the following conditions:

    1. With respect to any removal by an occupying power for its own account, the respective zone commander shall notify the sub-commission of the contemplated removal, giving the sub-commission2 an opportunity to enter such removal in the plan of advance deliveries.

    2. With respect to any removal from the zone of one occupying power for the account of another United Nation (whether or not such United Nation be an occupying power) such removal shall only be permitted upon the approval or recommendation of the sub-commission.

  3. With respect to advance deliveries to all United Nations of raw materials out of current production or inventories, such deliveries may be made upon the approval or recommendation of the sub-commission on the basis of the need of the claimants after due regard to the supplies available and the requirements of the occupation forces. Shipping documents covering such advance deliveries shall include notification to the receiving country that in the final accounting such deliveries may be deemed by the Allied Commission on Reparations to be on (1) export account to be paid for in acceptable currencies, (2) reparation, or (3) restitution.

  4. Adequate and uniform accounting controls shall be instituted with respect to all deliveries effected under the above proposed plan.

  5. Claimant nations should be notified of the establishment of the foregoing procedures for effecting urgently needed advance deliveries.

  6. It shall be mutually agreed that each of the occupying powers shall submit, within six months of the date hereof, a statement of all property removed from Germany after the termination of war with Germany.

Potsdam Conference (TERMINAL)