RUSSIA'S PROTEST REJECTED

Chronicle (Levin), 4 September 1947, Page 5

RUSSIA'S PROTEST REJECTED

(N.Z.PA.-

— Reuter^

Helping Gerraany To Help Herself

, Copyright)

WASHINGTON, Sept. 2. United States has rejeeted Russia's protest against the decision to step up Jie level of iiidustry in the British and American zones of Germany. The State Department, in a note delivered to the Russian Embassy yesterday, said the United States Government, pending che fulfilment of the Potsdain four pOAver agreement, felt justified in pio'eeding with the plans which had already been agreed to. The note expressed agreement that lecisions dealing with Germany as 3 .vhole could be taken only on a deiision rjeached by the four occupying aowers but United States was unablc \o accept tlie interpretation of the igreements relating to Germany on which the Russian position appeared oased. The note said that United States, for more than two years, had persistently iought to reaeh an agreement on mat„ers aifecting Germany as a whole arui ro implement the provisions of tne L945 Berlin agreement which statei that Germany should be treated a's a single economic unit. The levei of industry for Germany as a whole, whicii vA'as adopted in 5Iarch, 1946, was expresslj based on the assuinption that Germany would be treated as a singie econoiuic unit, but after the meeting of the Foreign Miuisters in Moscow in 1947, it became clear there were no prospects of achieving a uniform policy and it became necessary to idjust the level of industrial activity in the British and American zones. In effecting this adjustment, tb'i main objectives in the Berlin agreement of eliminating German wac potential, developing Germany 's agri .jultural and other peaceful industries, and enabling Germany to become selfmstained, were observed. • The note coucluded: "Russia's failore to implement the Berlin agreement has plaeed a heavy financial burden on United States in the occupation of Germany. The United States Government cannot accept the thesis that nothing ean be done, to alleviate that ourden or develop within the frame work of the agreement, that contribution of the western zones to the economic reconstruction of Europe until the consent of self -government lias been obtained. Until the Berlin igreement is fulfilled United States , t'eels justified in making arrangements to pursue the objectives with any : other occupying power willing to work , towards the eommon end. "

The Soviet, in a note delivered £'• the Ameriean Embassy at Moscow, rejeeted United States' effort to have the Manchurian port of Dairen opened by virtue of the 1945 agreement with :he Chinese under whieh Dairen comes ander Russian contrpl during tne exis. tence of a state of war with Japan and as a state of war with Japan ha-v not terminated, the Port Arthur regimu eontinues to control Dairen.