Evening star., 1943-12-12
Russia Wants
Germans to Pay
BIZ O1pen L. Scott.

damage they have caused. Russia is
raising the question this time by max.
ing very clear that she expects repara-
ton from Germany.
The United States and Great Britain
apparently had hoped to avoid a new
reparations problem. They remember
their experiences after the last war At
that time Germany was presented with
| big bill, to be paid in British pounds
and French francs, not in goods. So
| long as the United States lent Ger
| many the money with which to make
payments, reparations were paid When
the loans stopped. SO did the payments
AL early British-American plans
were based upon avoidance of that type
| Of situation following the present war.
The Russians, with their socialistic
economy, look at the problem in a diff
ferent light, however. They think that
the Germans should pay reparations
| after this war about II times as large
as after the last war and they want to
take payment In goods, services and in
direct labor, not in money.
In brief, what the Russians propose
is the following:
First, the Russians want from Ger
| many direct transfer of machinery, of
| locomotives, freight cars, machine tools
and other industrial equipment that
will enable Russian industry to get GO
ing. The Germans destroyed a large
proportion of the industrial equip
ment IN the most highly industrialized
part Of Russia.
| Next, the Russians propose that Ger
many devote as much of her production
effort in the years following the war to
turning out goods for shipment to Rus
sia as she devoted in the prewar period
to producing armament. 1t is figured
that the Germans readily can pay rep
arations Of about s4,50O ,000, 900 a year
IN the form of goods-for many years
after the war. German industry, in
effect, would be working for Russia to
this extent
Finally, Russia expects that Germany
Will send her between 10000 900 and S.
100000 workers who will work under
Russian direction to restore areas de-
stroyed by the Germans.
|
This is very harsh and very practical
program, from the Russian viewpoint. It
is based upon the very simple PROPOSE
ton that if the Germans would work
to destroy Russia, taking away Russian
industrial equipment and conscripting
Russian labor, they can work equally
hard to build up Russia when the fight
| 5np Stnnc Tho oct
private industry in Russia which would
face competition in the production and
sale OF It's products through importa-
ton OF German goods simplifies the rep
arations problem for the Russians.
The situation facing the United States
and Great Britain, however, is very diff
ferent. Importation of great quantities
OF free German goods after the war
would complicate what at best is to
be difficult problem of finding mar
kets for the goods that private industry
Will be ready to produce for peacetime
consumption. When the Germans. after
the last war, proposed that reparations
owed to France be paid In goods. not in
money, the French turned down the offer
because Of the competition it would
create for French industry and French
labor.
In the light of this situation the Rus
SLAMS now are suggesting that this coun.
try and Britain take over the German
foreign investments which are estimated
to be worth about $500 900 900. That
would represent a return payment for
about six days of war for the United
States alone
The fact is that Russia's reparations
ideas raise many very profound prob
lens for this country and Britain.
| ~
1t Is clear that If GERMANY is to fulfill
any such program as the Russians sug-
gest, then Russia must have a rather
strong hand in the postwar internal op-
Grafton Of Germany 1t also is clear
that if German industry is geared to
supply Russian needs to the extent pro-
posed, then that industry will be orient
ed to Russia in way that will make
difficult any future orientation. Fur
thermore, 1t Is most difficult to see how
Germany could do what Russia proposes
without maintaining planned economy
OF the type that this country and Britain
have hoped could be avoided after the
war
Another point is that Russia would
expect Rumania, Hungary, Finland and
Italy to do some work for her as well.
The result would be that much of Eu.
rope, economically, would be geared to
supplying Russia and would be a very
poor market for British or American
goods.
or course, Russia might be willing to
let Germany off more easily, if this
country and Britain would supply her.
free of charge, with goods that she ex-
poets to get from Germany free of
charge. 1t seems highly improbable that
this type of postwar proposition could
be sold here, however Russia probably
will be market for considerable ouanti-
ties Of American industrial equipment
on cash or barter basis after the war,
even If she draws heavily upon Ger
many.
In the light Of what Russia proposes
for Germany, Japan probably will get
OF rather easily by comparison Britain
and this country apparently do not in
tend to demand reparation from Japan
in money or goods. The plan, instead,
Is to leave Japan so stripped-with her
industry badly battered by air attack
that she will have a hard time making
any sort of living after the war.
/