REPARATIONS

A. GERMANY

In implementation of the Berlin Protocol of 1st August, 1945,
which stated, inter alia, that 'the reparations claims of the
United States, United Kingdom, and other countries entitled to
reparations shall be met from the western zones and from
appropriate German external assets', an invitation on behalf of
the Governments of the United Kingdom, the United States of
America and France was issued to the Commonwealth Government on
28th August, 1945, to submit a claim for reparations from Germany.

2. Australia's Reparations Claim.

Australia's claim for reparations from Germany was discussed by
War Cabinet on 24th July, 1945 (see War Cabinet Agendum No.

320/1945). [2] In accordance with War Cabinet recommendations and
the abovementioned invitation a formal claim for reparations was
submitted on 2nd October, 1945. [3] This claim was based on the
following:

I. Damage to and loss of property other than military equipment of
the war against Germany.

II Budgetary expenditure on the war.

III. Man years allocated to the war. (Figures supporting this have
been supplied by the Service Departments.)
IV. Loss of life and injuries suffered.

3. Inter Allied Reparations Conference.

On 16th October, 1945, a further invitation was issued on behalf
of the Governments of the United Kingdom, France, and the United
States of America to the Commonwealth Government to appoint a
representative to a Conference in Paris commencing on 9th
November, 1945.

Dr. E. R. Walker, then Charge d'Affaires, Paris, attended this
Conference as Australian Representative. (Copy of Report [4]
attached as Appendix A.) The purpose of this Conference was to
examine the claims for reparations submitted by various
Governments.

4. The final act of the conference, extracts from which are
attached hereto (see Annex B), embodied a Draft Inter-Governmental
Agreement on the following subjects:

I. Reparations from Germany;

II. The establishment of an inter-Allied Reparations Agency;

III. The restitution of Monetary Gold.

5. Types of Reparations.

Under this draft Agreement, German reparations, with the exception
of certain money which has been set aside for the rehabilitation
of refugees, are divided into two categories.

Category A including all forms of German reparation except those
included in Category B; and
Category B including industrial and other capital equipment
removed from Germany and merchant ships and inland water transport
of these.

Australia's share would be 0.70 percent of Category A and 0.95
percent of Category B.

6. The distribution of German merchant ships will be made in
proportion to the respective overall losses of merchant shipping
by Governments signatory to the Agreements provided that the
receipt of merchant ships does not exceed in value the share due
under Category B.

7. Allocation of Reparation Items.

In the allocation of items which are declared available for
reparations, with the exception of merchant ships, the following
principles would be adopted:

I. Any item or related group of items in which a claimant country
has a substantial prewar financial interest will be allocated to
that country if it so desires.

II In other cases, the following considerations will apply:

(a) The urgency of each claimant country's needs for the item or
items to rehabilitate, reconstruct or restore to full activity the
claimant country's economy.

(b) The extent to which the item would replace property which was
destroyed or damaged during the war.

(c) The relation of the item to the general pattern of the
claimant country's prewar economic life and to programs for its
post war economic adjustment or development.

(d) The requirements of countries whose reparations shares are
small, but which are in need of certain specific items or
categories of items.

8. In relation to German external assets, it is proposed that each
Government will, under such procedure as it chooses, hold or
dispose of German enemy assets within its jurisdiction in such a
way as to preclude their return to German ownership and control.

These assets will be charged against reparations shares.

9. Australian Scientific Mission to London.

The conference did not discuss patents or technical processes.

Information obtained by the U.K. and United States concerning
these is being made freely available to the Australian Scientific
Mission in London.

This Mission which was selected by the Council for Scientific and
Industrial Research, the Secondary Industries Commission and other
interested Departments, has been sent to London for the purpose of
ascertaining the industrial knowledge and data which has become
available from Germany and also to advise the Australian members
of the reparations agency of particular German equipment to which
Australia should lay claim.

[matter omitted]

10. Proposed inter-Allied Reparations Agency.

The proposed inter-Allied Reparations Agency to which each
Government will appoint a Delegate and the Headquarters of which
will be in Brussels will have the responsibility of:-

(a) allocating German reparations among the signatory Governments;

(b) dealing with all questions relating to the restitution to a
signatory Government of property situated in any of the western
zones of Germany.

II. The expenses of the Agency will be paid in the following
manner:-

I. Salaries and expenses of Delegates and their staff will be paid
by their own Government.

II The common expenses of the Agency will be met from the funds of
the Agency which for the first two years from its date of
establishment will be contributed in proportion to the percentage
shares of the signatory Governments in Category B and thereafter
in proportion to the percentage shares in Category A.

12. The Agreement will enter into force as soon as it has been
signed on behalf of Governments collectively entitled to not less
than 80% of the aggregate of shares in Category A of German
Reparations. The Agreement will remain open for signature by other
Governments and will enter into force among such Governments on
their signing.

1[3]. CONCLUSION:

This is submitted for consideration and decision whether approval
be given to the Reparations Agreement as recommended by our
representative. [5]

H. V. EVATT
Minister of State for External Affairs