Evening star., 1947-04-29

- ~16HA
Irefusal to carry out that asree-
ment was the sole cause Of the
merger. :s y;
It is difacult to regard their at
tacks as anything but propagands
designed to divert attention from
the Soviet failure to implement the
economic unity agreed at Potsdam
Certainly some progress toward
economic unity in Germany is bet
ter than none.
The character of the control over
the Ruhr industrial center, the
greatest concentration of coal and
of heavy industries in Europe, con-
tinues matter of debate. 1t can
not be decided merely for the pur-
pose OF reaching an agreement. Viz
tally important considerations and
future consequences are involved.
PREPARATIONS.
The question of reparations Is of
critical Importance as it affects
almost every other question under
discussion. This issue naturally
makes tremendous appeal to the
people If the Allied states who suf-
fered the terrors of German military
occupation and the destruction Of
their cities and villages.
The results of the Versailles
treaty of 1919 regarding payment
of reparations on a basis Of dollars,
and the difficulties encountered by
the Preparations Commission ap-
pointed after Yalta in agreeing upon
the dollar evaluation OF reparations
in kind convinced President Tru-
man and his advisers considering
the question at Potsdam that some
other basis for determining repara-
tions should be adopted If endless
| friction and bitterness we're to be
avoided in future years.
They succeeded in getting agree
ment to the principle of reparations
to be rendered out of capital assets
that is, the transfer of German
plants, machinery, etc., to the Allied
powers concerned.
1t developed at the Moscow Con-
ference that the Soviet officials
fatty disagreed with President Tru-
mans and Mr.. Byrnes' understand
ing of the written terms of this
agreement. The British have much
the same view of this matter as the
United States.
| Wa holioyc that M roy>o IN ion G
from current production were con-
templated by the Potsdanx Agree
ment. The Soviets strongly oppose
this view. They hold that the previ-
GUS discussions and agreements at
Yalta authorize the taking of bill
lions Of dollars in reparations out
OF current production.
Soviet Seek Output Levy.
sThis would mean that a substan-
tial portion of the daily production
of German factories would be levied
on for reparation payments, which
in turn would mean that the recov-
cry of Germany sufficiently to be
self lf-supporting would be long de-
layed 1t would also mean that the
plan and the hope of our Govern
ment, that Germany's economic re-
covery by the end of three years
would permit the termination of
American appropriations for the
support Of the German inhabitants
of our zone, could not be realized.
The issue is one of great complica-
tions, for which agreement must be
found in order to administer Ger
many as an economic whole as the
four powers claim that they wish
to do.
There is, however, general agree
ment among the Allies that the mat
ter of the factories and equipment
to be removed from Germany as
Preparations should be re-examined.
They recognize the fact that a too
drastic reduction in Germany's in
dustrial setup will not only make it
difficult for Germany to become self
supporting but will retard the eco
nomic recovery Of Europe.
The United States has indicated
that it would be willing to study the
possibility of limited amount of
Ireparations from current production
to compensate for plants, previously
scheduled to be removed as repara-
tions to various Allied countries,
which it now appears should be left
in Germany; it being understood
that deliveries from current produc-
ton are not to increase the financial
burden of the occupying powers or
to retard the repayment to them of
the advances they have made to
keep the German economy from COL
lapsing. The Soviet government has
made no response to this suggestion
BOUNDARIES.
The issue regarding boundaries to
be established for Germany pre-
sents a serious disagreement and
another example of complete dis
agreement as to the meaning of
the pronouncement on this subject
by the heads of the three powers.
In rapid advance of the Soviet
armies in the final phase of the war,
millions of Germans in Eastern
Germany fled to the west of the
Oder River. The Soviet armies,
prior to Potsdam, had placed Poles
in charge of this area largely evac-
uated by the German population.
That was the situation that con-
fronted President Truman at Pots
dam.
Under the existing circumstances,
the President accepted the situation
for the time being with the agreed
three-power statement, THE heads
of government reaffirm their opinion
that the final delimitation of the
western frontier of Poland should
await the peace settlement"
The Soviet Foreign Minister now
states that final agreement on the
frontier between Germany and Po-
land was reached at Potsdam and
the expression I have just quoted
merely referred to the formal con-
f1rmation of the already agreed