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GERMANY UNDER RIGID CONTROL

ECONOMIC RESTRAINT

Payment Of Reparations To United Nations

Rec. 10.30 a.m. LONDON, Aug. 3. "Allied armies occupy the whole of Germany," says the Potsdam Declaration, "and German people have begun to atone for the terrible crimes committed under the leadership of those whom in the hour of success they openly approved and blindly obeyed." A Berlin report says that the German public has had to restrain its curiosity until to-morrow, Paris radio, on tne question of reparations, said: "French political circles point out that the zone provisionally allotted to France consists, apart from the Saar, merely of agricultural, wine-growing and wooded regions." During the period of occupation, Germany shall be treated as a single economic unit. Common policies shall be established in regard to mining and industrial production and allocation; agriculture, forestry and fishing; wages and rationing of prices; import and export programmes for Germany as a whole; currency and banking; central taxation and customs; reparations and removal of industrial war potential; transport and communications. Allied controls shall be imposed on German economy, but only to the extent necessary:— (1) To carry out programmes of industrial disarmament, demilitarisation, reparations and approved exports and imports. (2) To assure the production and maintenance of goods and services required to meet the needs of the occupying force and displaced persons in Germany, and essential to . maintain throughout Germany average living standards not exceeding the average standards of living in European countries — excluding Britain and Russia. : (3) To ensure in a manner deter- ; mined by the Control Council the' equitable distribution of essential . commodities between the several . zones so as. to produce a balanced 1 economy throughout Germany, reducing the need for imports. (4) To control German industry and all economic and financial inter* national transactions, including exports and imports, with the aim of preventing Germany from developing war potential and achieving other objectives. (5) To control all German public or private scientific bodies, research and experimental institutions, laboratories, etc., connected with economic activities. f Terms for Reparations The agreement regarding repara- ; tions states that in accordance with . the Crimea decision that Germany , should be compelled to compensate . to the greatest possible extent for ; the loss and suffering she caused the ; United Nations, and for this the German people cannot escape responsibility, the following decisions were reached: 1 (1) The reparation claims of Russia shall be met by removals from the zone of Germany occupied by Russia and from the appropriate German external assets. (2) Russia undertakes to settle the reparation claims of Poland from her own share of reparations. (3) The reparation claims of Britain, America and other countries entitled to reparations shall be met from the Western zones and from the appropriate German external assets. (4) In addition to the reparations to be taken by Russia from her own zone of occupation, Russia, shall receive in addition from the Western zones: (a) 15 per cent of the usable complete industrial capital equipment taken firstly from the metallurgical, chemical and machine manufacturing industries as is unnecessary for German peace economy in exchange for an equivalent value of food, coal, potash, zinc, timber. <-iay products, petroleum products and other products to be agreed upon. (b) 10 per cent of such industrial capital equipment as is unnecessary for German peace economy to be transferred to Russia on account of reparations without payment or exchange of any kind ir. return. The removal of equipment covered by these clauses shall be made simultaneously. (5) The amount of equipment to be removed from the Western zones'on account of reparations must bz determined within six months. Industrial Equipment for Russia (6) The removal of industrial capital equipment shall begin as soon as possible and shall be completed within two years of a date, the determination of which is specified in paragraph 5. The delivery of products covered by paragraph 4 (clause a) shall begin as soon as possible and shall be made by Russia in agreed instalments Within five years of the date thereof. Determination of the amount and character of the industrial capital equipment unnecessary for German peace economy, and therefore available for- reparation, shall be made bv the Control Council under policies fixed by the Allied Reparations Commission with the participation of France, subject to the final approval of the commander of the zone from which-' the equipment is being removed. (7) Prior to fixing the total amount of equipment subject to removal, advanced deliveries shall be made in respect of such equipment as will be determined eligible for deliver}' in accordance with the procedure set out in the last sentence of paragraph 6. (8) The Russian Government renounces all claims in respert of reparations to shares in German enterprises which are located in the Western zones of occupation, as well as German assets in all countries except those specified. (9) The Governments of Britain and America renounce claims in respect of reparations to shares in German enterprises located in the Eastern zone of occupation, as well as German foreign assets in Bulgaria, Finland, Hungary, Rumania and Eastern Austria. (10) Russia makes no claims for gold captured by the Allies in Germany.

CHURCHES IN BERLIN

Rec. 1.30 p.m. BERLIN, Aug. 3. One hundred and twenty-two Protestant and 52 Roman Catholic churches, besides one synagogue, are functioning in Berlin. Attendances at the Protestant and Roman Catholic churches are on the ini crease.

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Bibliographic details

GERMANY UNDER RIGID CONTROL, Auckland Star, Volume LXXVI, Issue 183, 4 August 1945

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898

GERMANY UNDER RIGID CONTROL Auckland Star, Volume LXXVI, Issue 183, 4 August 1945

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