US Presidency
1945

This formula of taking reparations by zones will lead to less friction among the Allies than the tentative basis originally proposed for study at Yalta. The difficulty with this formula, however, is that the industrial capital equipment not necessary for German peace economy is not evenly divided among the zones of occupation. The western zones have a much higher percentage than the eastern zone, which is mostly devoted to agriculture and to the production of raw materials. In order to equalize the distribution and to give Russia and Poland their fair share of approximately 50 percent, it was decided that they should receive, without any reimbursement, 10 percent of the capital equipment in the western zones available for reparations. As you will note from the communique, a further 15 percent of the capital equipment in the western zones not necessary for Germany's peace economy is also to be turned over to Russia and Poland. But this is not free.