EAST-WEST CLEAVAGE NOT NARROWED

Gisborne Herald, Volume LXXIV, Issue 22513, 17 December 1947, Page 7

EAST-WEST CLEAVAGE NOT NARROWED

Soon after 7 p.m. G.M.T. last night, the Big Four Foreign Ministers conference on Germany and Austria was brought to an end. Three weeks of discussion had not narrowed the divisions between-the three Western Powers on one side and the Soviet Union on the other and, after all four Ministers had once more stated their policies, Mr. George Marshall declared that no useful purpose could be served by dragging on the debate. Mr. Bevin and M. Bidault concurred and M. Molotov said he had neither remarks nor objections to make. Never before had M. Molotov been so brief. >

' Mr Marshall said: “We have reached quite evidently a fundamental difference regarding reparations. M. Molotov’s last statement seemed to me a repetition ofr the 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 »nd which far exceed what a free Austria can afford. “If the Soviet were admitted, it would fee at the price of Austrian independince and inviolation of past agreements. . ‘ “The -Soviet refused to furnish Htally necessary information about the reparations removals. Thus we have been asked to reach an agreement while be Soviet withholds information essen. oal to such an agreement. "The Soviet delegation has refused to Uree to the relinquishment of property Interests in German unilaterally seized Inder the guise of reparations. “As matters now stand, a large share WE the produce of the eastern zone of Germany is drawn off for Soviet account and an important part of its in-

dustry has been placed in a gigantic Soviet trust which enjoys special privileges and which is put above German law, presumably in perpetuity.” “These Soviet practices in Eastern Germany have prevented Germany playing her part in Europe’s recovery. They have greatly increased the necessity for outside aid which the United States and Britain have provided to enable Western Germany to live. “Nevertheless, the Soviet representatives have chosen to charge that the 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 self-supporting, would doom them to mass starvation.

“The Soviet demands reparations for itself and Poland of least 10,000,000,000 dollars at 1938 values which is at least 15,000,000,000 dollars today.” Mr. Marshall went on to say: “This demand is not in accordance with the Potsdam agreement. It is utterly impossible to achieve it 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 German Government.

“It is clear that an agreement could be reached only under conditions which would not only enslave the German people but would seriously retard 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 other agenda points and I suggest the adjournment of the session.”