Evening star., 1945-08-10

most important item-repara-
tions.
We do not intend again to
make the mistake of exacting
reparations In money and then
lending Germany the money with
which to pay. Preparations this
time are to be paid in physical
assets from those resources of
Germany which are not required
for her peace time subsistence.
The first purpose of reparations
is to take out of Germany every
thing with which she can pre-
pare for another war. It's Sec
ond purpose Is to help the devas-
tated countries to bring about
their own recovery by means of
the equipment and material TAX
en- from Germany.
At the Crimea Conference
basis for fixing reparationS had
been proposed for initial discus
sion and study by the Repara-
tions Commission. That basis
was a total amount of repara-
tions of $4,000, 100000. OF this
sum, one half was to go to Rus
sia. which had suffered more
heavily in the loss of life and
property than any other country.
But at Berlin the idea of at
tempting to fix a dollar value on
the property to be removed from
Germany was dropped. To fix a
dollar value on the share OF each
nation would be a sort of guar
antee of the amount each ma
tions would get-a guarantee
which might not be fulfilled.
Reparations to be Taken
In Property and Equipment.
Therefore 1t was decided to
divide the property by per-
centages of the total amount
available. We still generally
agreed that Russia should get
approximately half of the total
for herself and Poland, and that
the remainder should be divided
among all the other nations en-
titled to reparations.
Under our agreement at Ber-
lin, the reparation claims of the
Soviet Union and Poland are to
be met from the property located
in the zone of Germany occupied
by the Soviet Union, and from
the German assets in Bulgaria,
Finland, Hungary, Romania and
Eastern Austria. The reparation
claims of all the other countries
are to be met from property To-
Gated in the western zones of oc-
cupation in Germany, and from
the German assets in all other
countries. The Soviet valves all
claim to gold captured by the
Allied troops in Germany.
This formula of taking repara-
tions by zones will lead to less
friction among the Allies than
the tentative basis originally pro-
posed for study at Yalta.
The dif1iculty with this formula,
however, is that the industrial
capital equipment not necessary
for the German peace economy
is not evenly divided among the
zones of occupation. The western
zones have a much higher per-
centage than the eastern zone,
which is mostly devoted to agri-
culture and to the production
of raw materials. In order to
equalize the distribution and give
Russia and Poland their fair
share of approximately so per
cent it was decided that they
should receive, without any re-
endorsement, 10 per cent of the
capital equipment in the western
zones available for reparations.
AS you will note from the COM
munique, further Is per cent
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.
For this property, Poland and
Russia will give to the western
zones an equal amount in value
in food, coal and other raw mate
rials. This Is per cent, therefore,
is not additional reparations for
Russia and Poland. 1t is a means
of maintaining a balanced econ
ony in Germany and providing
the usual exchange of goods be-
tween the eastern part and the
western.
1t was agreed at Berlin that
the payment of reparations, from
whatever zones taken, should
always leave enough resources to
enable the German people to sub
sist without sustained support
from the other nations.
Question of Poland
Most Difficult One.
The question Of Poland was a
most difficult one. Certain COM
promises about Poland had al,