740.00119 E. W./7–2545

No. 930
The Representative on the Allied Commission on Reparations (Pauley) to the Assistant Secretary of State (Clayton)1

Dear Mr. Clayton: Attached are estimates of both ourselves and the Soviet Union on the comparative percentage of wealth in the Soviet occupied zone. In view of our present discussions I am sure they will be of interest to you.

Very truly yours,

Edwin W. Pauley
[Attachment 1]

Estimated Wealth in U. S. S. R. Zone of Occupation

1937 Boundaries

U.S.Estimate U.S.S.R.Estimate
Percent Percent
Industry & Mining 39.3 35.3
Agriculture 48.0 48.0
87.3 83.3
Increase in industry due to removals into Eastern areas during war 5.0 3.0
92.3 86.3
*Average 46.1 40.9
Add 3 percent as value of land ceded to USSR 3.0 0.0
49.1 40.9
[Page 878]
[Attachment 2]

Volume of Production in Soviet Zone and Berlin as Percentage of Total Germany—1936

Per Cent
All Manufacturing 40.0
Non-ferrous metals 40.7
Machinery 42.1
Electrical engineering 61.5
Precision and optical instruments 50.9
Non-ferrous metals products 44.5
Ceramics and glass 49.5
Saw mills 42.0
Wood processing 46.6
Paper and wood pulp 52.3
Printing 50.8
Textiles 44.4
Apparel 61.3
Liquor 50.7
Utilities 44.2
Building and miscellaneous 46.4
Mining 29.8
All Industrial Production (Manufacturing and mining) 39.3

Source: “Die Deutsche Industrie”, Reichsamt fur Wirtschaftliche Planung, Berlin 1939.

Note: The only administrative units which overlap zone boundaries are Brunswick, Bremen, Anhalt and Schaumburg–Lippe. Detailed statistics for industrial employment showed that 78 percent of the industrial employment in these areas was in territory now in the Soviet-occupied zone. Accordingly, 78 per cent of the industrial production of these areas was assumed to fall in this zone.

  1. Printed from the ribbon copy, which bears only a typed signature.
  2. U.S.weights agriculture and industry as equal in importance.U.S.S.R. weights industry as three times as important as agriculture.[Footnote in the original.]