Foreign Relations of the United States: Diplomatic Papers, The Conference of Berlin (The Potsdam Conference), 1945, Volume II

Pauley Files

No. 861
United States Delegation Working Paper¹

[Babelsberg,] July 20, 1945.²

Proposed Text

17. A primary purpose of occupation is to obtain reparation for the damage and injury caused Allied countries by German aggression. To accomplish this purpose some importation of raw materials and other items will be necessary. The Control Council shall formulate as soon as possible a program of minimum required imports for Germany as a whole. Such a program shall include provision for equitable inter-zonal distribution of supplies available within Germany, so as to minimize the net deficit for, and imports into, Germany as a whole. With full recognition of the principle that the cost of imports must be met from the proceeds of exports³ from current production or stocks responsibility for the procurement and financing of approved imports for Germany⁴ as a whole shall be shared on a basis to be negotiated in the Control Council. Reimbursement for any initial net outlays made in connection with the provision of supplies for Germany shall be a first charge against the German economy.

1. Authorship not indicated.
2. This paper bears the following typed notation: “For Economic Sub Committee 10:30 A.M.—July 20, 1945”.
3. There is the following manuscript interpolation at this point: “from goods, capital equipment, and”.
4. An earlier draft bearing the same heading reads at this point: “procurement and financing responsibility with respect to imports for Germany”. This draft has the following manuscript interpolation (apparently intended as a substitution) by Murphy: “for the procurement and financing of approved imports”. The last two sentences of this earlier draft read as follows: “Reimbursement for any initial net outlays made in connection with the provision of supplies for Germany shall be obtained from subsequent German exports from current production or stocks, and reparation from current production or stocks shall be so regulated as always to leave available sufficient exports to pay for approved imports. A program of such exports shall be formulated as soon as practicable.” Attached to the copy of this draft in the Frankfurt USPolAd Files is the following draft paragraph: “Naturally one of the primary purposes of occupation is to obtain reparation for the damage and injury caused Allied countries by German aggression. To accomplish this end, obviously some importation of raw materials and other items may be necessary. The payment for these will be a first charge against the German economy.” This paragraph bears the following manuscript notations by Murphy: (1) “Submitted by RDM July 20” and (2) “Part of this included in paper submitted”.