GERMAN REPARATIONS

Nelson Evening Mail, Volume 80, 6 August 1945, Page 5

GERMAN REPARATIONS

PRINCIPLE LAID DOWN

ALLIED AGREEMENT AT POTSDAM

London, 2. The Allied agreement regarding reparations states that Germany, in accordance with the Crimea decisions, should be compelled to compensate to the greatest possible extent the loss and suffering which she has caused the United Nations, and for * which the German people cannot escape responsibility. The following decisions were reached:—

1. The reparation claims by Russia J shall be met by removals from the zone | of Germany occupied by Russia and l from 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 the other countries entitled to reparations shall be met from the western zone and from appropriate German external assets. 4. In addition to the reparations to be taken by Russia from her own zone of occupation Russia shall receive from the western zones:— (Clause 1), 15 per cent, of the useable complete industrial capital equipment taken, first, from such metallurgical, chemical and machine manufacturing industries that are unnecessary for a German peace economy in exchange for the equivalent value of food, coal, potash, zinc, timber, clay products, petroleum products, and other products to be agreed upon. (Clause 2), 10 per cent, of such industrial capital equipment as is unnecessary for a German peace economy to be transferred to Russia on the reparations account without payment of exchange of any kind ir. return. The removal of equipment in the above clauses shall be made simultaneously. TIME LIMITS FIXED 5. The amount of equipment to be removed from the western zones on account of reparations must be determined within six months. 6. The removal of industrial capital equipment shall begin as *soon as possible and shall be completed within two years of the date of determination specified. Delivery of the products covered by Paragraph 4. clause 1, shall begin as soon as possible and shall be made by Russian agreed instalments within five years of the date thereof. Determination Of the amount and character of industrial capital equipment unnecessary for a German peace economy and therefore available for reparation shall be made by the Control Council under the policies fixed by the Allied Reparations Commission, with participation by 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 delivery in accordance with the procedure set out in the last sentence of paragraph 6. 8. The Russian Government renounces ■ all claims in respect of reparations to 1 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 enterr prises 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 to the gold captured by the Allies in Germany. The text of an agreement on the disposal of the German Navy and merchant marine states that the conference decided that the three Governments should appoint experts to work out detailed plans, after which a joint statement will be issued. REMOVAL OF PLANT London, Aug. 4. Many questions are asked in London about the precise meaning of the reparation proposals, says “The Times” diplomatic correspondent, who adds that Allied experts assessing the amount of equipment to be removed will have first of all to decide what is the German peace economy and what the average European standard. It seems that German economy and industrial production will be reduced below the 1927-29 level. When the intensive industrial development of Hitler’s 4-year plan is recalled and the no less intensive drive during the war, it is seen that a considerable part of existing equipment will be removed. Soviet authorities are anxious to rebuild devastated areas without delay and have already moved German factories and equipment from the eastern zone. German industry will not be completely stripped. Germans will be left enough to work their way forward j in peace. “BIG THREE” PRAISED j PRO-RSJSSIAN PRESS IN GERMANY) ißec. 11.40 a.m.) Lond°n, Aug. 5. I Commenting on the Potsdam commu- j nique the pro-Russian newspaper “Ber- , lin which is the organ of the i city’s administration, said: “If we are ! honest we will admit we expected to j see Germany split into parts under dif- j ferent administrations without any j political freedom. We instead find j just the opposite. The victors have i not waited for us to ask for the re- ! construction of Germany but will help I us 4 owards it.” The Communist Party’s organ j “Deutsche Volke Zeitung” said: “It is ! impossible to rate the three great ! Powers’ generosity too highly.” i ALLUSIONTO SPAIN RESENTMENT EXPRESSED London, Aug. 5. Madrid radio broadcast the following official communique from the Spanish Government: “In the face of the unusual allusion to Spain contained in the Potsdam communique, the Spanish State rejects as arbitrary and unjust the expressions concerning Spain, and considers them the result of a false atmosphere created by a defamatory j campaign of Red exiles and their associates abroad. Spain does not beg j admittance to international conferences, but will continue at home and abroad to collaborate in the work of ; peace to which she made a signal contribution by remaining neutral in the two most terrible wars of history.” Spanish occupation of Tangier fore- j stalled its seizure by the Axis, says j the Madrid newspaper “ABC.” This is the first reference to Tangier in the Spanish Press since the Allied talks began. “The Axis intended occupying Tangier, and held naval and air forces in readiness,” it says. “Spain prevented the occupation and took action without the knowledge of the temporarily tri- ] umphant Italy and Germany.’ A Paris message says that the For- J ; eign Affairs Committee of the Consul- j • tative Assembly passed a resolution j .

demanding that the French Government break diplomatic relation with Franco in Spain and enter into accord with the “Big Three,” also that the Government take measures destined to support the Republican Government being formed in Mexico.