GENERAL MARSHALL’S SPEECH

Press, Volume LXXXIII, Issue 25365, 12 December 1947, Page 7

GENERAL MARSHALL’S SPEECH

Discussing the British proposal on reparations. General Marshall said that it had suggested that “until Germany attains a balanced economy, and until the sums the controlling Powers have advanced-have been repaid, Germany shall not be called upon to make any reparations from current production or stocks.”

General Marshall said that reparations from current production, under existing conditions, meant: (1) That the United States would have tq pay for such reparations, which she was not prepared to do, as the price for the unification of Germany; (2) the effect would be to depress the German standard of living tp a point where it might submerge the economy of all Europe. General Marshall said that all the matters that the Ministers had been discussing—Germany’s export-import programme, whether the sums advanced by the controlling Powers should be a first charge on Germany’s exports, agreed statements on external occupation costs, etc. —all came back to the question of reparations. “It is impossible to have a clear picture of how all these matters can be effected unless we get a clear answer from the Soviet delegation on

the question of reparations from current production."

General Marshall accused Russia of taking out of eastern Germany assets tvorth 500,000,000 dollars annually, while the United States and Britain were pouring 700,000,000 dollars yearly into the western zones. He said that in the eastern area German business, "through one device and another,” was being brought under Soviet ownership, and placed in a gigantic Soviet trust. "Thus, in effect, much of the German economy is operated for the Soviet account,” he said. General Marshall then asked the council to decide that from January 1, 1948, nothing should be taken out of Germany, except for fair economic value, which could immediately be used to sustain the German economy. The decision would stand until further action by the council or pursuant to a peace treaty, but would not apply to agreed reparations deliveries in capital goods. General Marshall concluded: "If we cannot take this vitally significant decision immediately, then we are wasting our time, when there is no time to waste. I feel we are entitled to a positive answer from Mr Molotov now?