FOREIGN MINISTERS REACH DEADLOCK

Greymouth Evening Star, 16 December 1947, Page 7

FOREIGN MINISTERS REACH DEADLOCK

Severe Criticism Of = Russian Attitude

N.Z.P.A—Beuter— Copyright (Recd. 11.10 a.m.) LONDON, December 15. The Foreign Ministers’ conference has decided to adjourn indefinitely. General Marshall, who suggested the adjournment, said the Foreign Ministers had reached a fundamental difference on reparations. Mr Bevin and Mr Molotov, as well as General Marshall, made statements. General Marshall said: “We have reached quite evidently a fundamental difference regarding reparations. Mr Molotov’s last statement seemed to me to be a repetition of statements which we largely felt were without foundation. We failed to agree on the Austrian treaty because the Soviet demanded properties'and special privileges in Austria in an amount and to an extent which far exceed any rightful claim, and which far exceed what a free Austria can afford.

General Marshall continued:—“lf the Soviet claims were admitted it would be at a price of Austrian independence and, in violation of past agreement the Soviet has refused to furnish vitally necessary information about reparations removals. Thus we have been asked to reach an agreement while the Soviet withholds information essential to such agreement. ' “The Soviet delegation refused to agree to the relinquishment of property interests in Germany unilaterally seized under the guise of reparations. As matters now stand a large share of the produce of the eastern zone of Germany is drawn off for the Soviet. On this account an important part of its industry has been placed in a gigantic Soviet trust which enjoys a special privilege and which is put above the German law, presumably in perpetuity.” “These Soviet practices in Eastern Germany prevented Germany playing its part in Europe’s recovery,” added General Marshall. “They greatly increased the necessity for outside aid which the United States and Britain had provided to enable Western Gerinany to live. Nevertheless the Soviet Representatives have chosen to charge that a purpose of this aid is to use Western Germany ’as a strategic base

against the democratic states of Europe and to advance ‘expansionist aims.’ “Apart from the complete absurdity of these charges the discontinuance of this aid to some 40,000,000 Germans in the United States and British zones until they become selfsupporting would doom them to mass 'starvation. The Soviet demands reparations for Stself andv- Poland of at least 'lO 000,000,000 dollars at 1938 values, which is at least 15,000,000,000 dollars today.” General Marshall went on to say: “This demand is not in accordance with the Potsdam Agreement. It is utterly impossible to achieve on practical, economic grounds. It implies the establishment of an economic power so comprehensive that it would be really the power of life and death over the German Government. “It is clear that agreement could be reached only under conditions which would not only enslave the German people but would also retard seriously the recovery of all Europe. It seems impossible now to make practical progress. Therefore I reluctantly conclude that no useful purpose would be served by going on to the other agenda points and I suggest an adjournment of the. session.”