REPARATIONS HALTED

Chronicle (Levin), 29 May 1946, Page 5

REPARATIONS HALTED

IT.S. ACTION IN GERMANY Kecci ved Wednesdav 1.25 a.m. BKliihX, -May 27. "Other ocrupyiiig Powers of Ger;i ui n v wero notilied two or thre.e vvecks .V) of I'nited States intention to luih jfjiaratioiis deliveries from its zone, " ,:;:d Lieut.-Geiieral Clay, ' ' luit tliev lia\eii't reacted in any way," he added. "The aetual deeision to lialt deliveries uas not (liM'iissetl l>y the Control Couui*I 1 but the qucstion was before the t niim-ii of Foreign .Ministers at Paris wnen .M r. Byrnes advised the Foreign [Ministers of our intention. ' ' Lieut.itiioieral Clay said the Ameriean action u as a policy of realisni and the primarv |nr|iose of the deeision was not to bring |tiessure on nnyone but to reeogni.se tlie tealities of the situation and hold plants I u tlie I'nited States zone in rasu i: wus eventually neeessary to operate lln'iu there. That would relieve "tlie tiemendous bunien" on tlie Ameriean !n\ jitiyer who had already jiaid i5o,()(ni,0(it) on Gerinany. • ' We feel Postdam is ;t joint agree:i eut and must be earried out as a unit timi not pieeemeal. I'nited States |»'liey on reparations renuiins the same ;i- expressed jis Potsdam, but if the |>resent position beeomes a parliament ni'c, we have to assume the Potsdam iiLieement lms beeome ti failure and Will have to proeeed on another plan — .tiiilateral. Oue of the liasie prolilems 'hui must be solved was tlie future of ti i- Puhi-. Hhineliind and Saar; seeondly. whether adniinistrati ve ageneies n-nild be established whieli would periiii: the ireatnient of Germany as an re.tiiomie unit; thirdly, whether zonat tTeitiers would merely be boundaries "• i'tirriers to trade; fourthly, whether nll resourees of Germany would be uvniiable for distributiou throughout (reimany witli surplus reserves to be Used. as exjiorts, the ]iroeeeds of whieli ivut.id pay for imports. l-ii'Utenant-tienerjil Clay added that tlie I'nited States hadn't offieiallv ti'lept ed any alternative in case there sli'.'tid be 110 agreement on economic iit.it y. ' ' We have not given up hope timi these questions can be resolved," lie -aid. " However, it is better to have I'lants in the Ameriean zone than to go tuni -et them after the «j uest i ons have lice., resolved.'' 1 1 e revealed that the ii'- ial disiiniutling- already we.ll under u.-" was on only 21 ]ilants which were imi a'y explosives plants which would l"- ■imipleted, four of these going to lU-C;i and Pobtnd. The disniantling of amitlier 150 cement, fabricating, lniK i'iiu'tool. cheiniral and sted plants lite' i.i-eu sus]iended jiendiug- settlement "f tio- questions.