REPARATIONS

The arrangements made by the four Powers to implement the
agreement made at Potsdam concerning German reparations were set
out in A.M.M. report No.3 of 7th February (part G). As was
explained there reparations allocations are made by the Allied
Control Council (as between the U.S.S.R. on the one hand and the
Western Allies on the other), and by the Inter-Allied Reparations
Agency, which was established at the Reparations Conference held
in Paris in November and December 1945 to distribute the
reparations among the fifteen Western Allies according to
proportions laid down at that Conference.

2. Of the first schedule of plants brought before the Allied
Control Council the following had been allocated up to 30th
November 1946: From the British Zone, 49 1/4 to the Western
Nations and 8 3/4 to the U.S.S.R.; from the French Zone, 14 to the
Western Nations and one to the U.S.S.R.; from the U.S. Zone, 55
1/2 to the Western Nations and 17 1/2 to the U.S.S.R.

3. The valuations and percentages of allocations made to the
Western Nations are as follows:-

Allocation
Value in R.M. %
Albania 361,230 1.1
Australia 1,836,599 5.4
Belgium 246,303 .7
Denmark 120,139 .4
France 8,217,902 24.3
United Kingdom 2,445,522 7.2
Greece 2,402,727 7.1
India 1,853,900 5.5
Norway 209,673 .6
Netherlands 2,739,755 8.1
Czechoslovakia 5,747,388 17.0
Yugoslavia 7,634,798 22.6
4. The above allocations represent only a small part of the
schedule of plants so far submitted to the Allied Control Council.

No allocations have yet been made of the balance although a number
have been approved for valuation, and this is at present going
forward.

5. January 1ST 1947 was originally set down as the date by which
complete lists of all the plants to be available for reparations
were to be submitted to the Allied Control Council, but the
investigation and recording of these plants is still by no means
complete. There is, therefore, no prospect of this date being
adhered to.

6. Some confusion seems to have been caused by the American zonal
authorities' announcement that they were discontinuing the
dismantling of reparations plant in their zone until further
agreement on the economic organisation of Germany had been
achieved by the Four Occupying Powers. It was also reported that
the British authorities were in sympathy with this decision.

[matter omitted]

Additional Reparations Allocations
14. In addition to the above categories the British Government has
decided to make available from the British zone plant and
equipment to the value of 50,000,000 R.Ms., to be distributed
between the U.S.S.R. and the I.A.R.A. countries on the basis of
25% to the former and the remainder divided among the latter
according to the proportions to which they are entitled under the
general reparations scheme. This is a unilateral decision on the
part of the British authorities and is designed to fill the gap
caused by the delay in allocations of plants being made by the
Allied Control Council. The deliveries made under this scheme will
of course be taken into account as part of the total amount of
reparations that will be required from the British zone.

[matter omitted]

T. W. WHITE
Brigadier
Chief, Australian Military Mission

MALCOLM BOOKER
for Political Adviser Australian Military Mission