Your telegram 97. [1]

1. Monckton [2] and his colleagues had Dominion representatives in
Moscow at an informal gathering last evening when he gave us
copies of telegrams D.364 [3], 1050 [4], 1051 and 1052 [5] and
arranged that we should be kept posted with developments of the
Reparations Commission while in Moscow.

2. The first meeting of the Commission took place yesterday. Apart
from setting up a Steering Committee consisting of two British,
two American and two Russian representatives it only discussed
generalities during which the Soviet indicated-
(a) Germany should not be allowed to retain chemical industries or
have scientific research;

(b) Standard of living of Germany should not be better than mid-
European;

(c) Soviet claim textile machinery in Germany was more than
required and proposed this machinery should come to the Union of
Soviet Socialist Republics;

(d) Destruction of German metallurgical industries has been such
that 75 per cent of German metal workers could be used in the
Union of Soviet Socialist Republics.

3. The Australian Government's views as expressed in your telegram
97 were conveyed by me to Monckton.

MALONEY