RUSSIA'S CLAIM ON GERMANY

Chronicle (Levin), 12 July 1946, Page 8

RUSSIA'S CLAIM ON GERMANY

BIG GAP BETWEEN VIEWS OF BIG FOUR PARfS, July 10. Mr. Molotov, in a statement on Germany to the Foreign Ministers, revealed tliat Russia was claiming £2,500,000,000 in reparations from Gei'inany. He added that Russia would insist on this amount, although it" was only a small jproportion of the enormous daniage the Germans did in Russia. Mr. Bevin -charged Russia with failing to fulfil the economic clauses of the Potsdam Agreement, says Reuter's Paris correspondent. Mr. Bevin, supporting the main lines of the 25 Years Treaty to keep Germany disarmed, insisted on the maintenance of Big Four unity in the eonduct of German Aii'airs. He declared there were three possible approaches to the problem ensuring the peaee" of Europe. (1) Tixe balance cf power among States of equal strength. (2) Dominion by one Power, or two blocs of Powers. (3) United control by th.3 Big Four with the co-operation of the Allies. . Mr. Bevin said that the British Government regarded the united control by the Big Four with Allied co-operation as most likely to produce the greatesl stability. Mr. Bevin, defining the attitude to the" long-term and the short-term approaches to the German problem, said: ' ' On the short-term basis we stiek to the Potsdam Agreement, provided it is fully earried out and every efl'ort is inade to make it successful. One of the Potsdam provisions, which at pre sent is- not being earried out, is the treatment of Germany as an economic whole. ' '

Tlie estimated British expenditure in the British Zone in Germany in the current financial year was £80,000,000, compared with the United Btates expenditure of £50,000,000. "We caniiot agree that this should eontinue. " Mr. Bevin charged the Russian authorities with refusing to agree to a common import and export programme for the whole of Germany, removing surplus resourees from their zone contrary to the Potsdam provisions, and takmg current production in payment for reparations before the adverse balance payments from Germany had been equalised. ' ' ' When Mr. Btalin appealed to me at Potsdam to agree to a higher reparations figure for Russia I was sure 110 one envisaged that the Potsdam Agreement would not be earried out to .the letter in such a way as the British public would not have to sull'er additional taxation. " Mr. Bevin warned the conference that while Britain would co-operate on a fully reciprocal hasis with the other occupying Powers she would be compelled to organise the British Zone so that no further liahility should fall on the British taxpayer if no reciprocity was forthcoming from any particular zone. "I should be very sorry to see us forced into a situation of this kind, which would he injurious to future collaboration. ' ' Mr. Bevin asked Mr. Molotov to elu-c-idate the statement on the maintenance of the zonal di vision of Germany. ' 1 If the zones remain cut olf from each other it nieans in efi'ect that Europe is being divided. This will cause serious difiiculties and endanger the peace. " Mr. Bevin agreed with Mr. Byrnes tliat no figure of 10,000,000,000 dollars was ever agreed on as the amount of reparations Russia should receive from Germany, and alsn supported Mr. Byrnes' proposal that special deputies should be appoiuted to consider the future policy of Germany. He was prepared to take Mr. Byrnes' proposals as a basis for the special deputies' work. Stimming up, Mr. Bevin declared that the Potsdam Agreement must be impiemented as a whole, not in part. M. Biclault again stepped into his role of mediator. He said he felt the Big Four had agreed on common aid for Germany conforming with the Russian viewpoint voiced by Mr. Molotov. It was approximately: (1) The total disarmament of Germany; (2) the destruction of Nazism and the establishment of democratic life; (3) reparations for the countries which suifered as a result of the war. He appealed for- a settlement of the German frontiers, particu|^rly Uhe westerxf.4 _ v: .; Mr. MMotov, iii' a long statement on Russia 's basic poJicy on Germany, declared tliat Russia was opposed to the separation of the Ruhr and the Rhineland unless endorsecl by a plebiseite of the German people. He favoured the Allied Control Council inspectorate for an iuvestigation of the demo'bilisation of the German armed forces, but declared that smce there was no plan for the reindustrialisation of Germany there was nothing of that kind to inspect. Mr. Bevin submitted proposals for tlie treatment of Germany as a single economic unit and asked the Ministers to study the text during the night. Tomorrow he will ask for an immediatc agreement witliout prejudice to Slr. Byrnes' long-term treaty plan. Mr. Bevin 's projiosals also seek an agreement, firstly, to regulate the taking of reparations in an orderly manner to ensure an equital)le distribution of the indigenous resourees throughout Ger many; secondly, to make available alL indigenous resourees and surplus to approved requirements in any given zone to meet the requirements of- other zones; and, thirdly, to provide for a surplus production of anv zone, which was only exportable as reparations if there was -no deficit in the balance of payments of any other zoiie.