FEARS DISPELLED

Otago Daily Times, Issue 26640, 10 December 1947, Page 5

FEARS DISPELLED

IMMINENT BREAKDOWN GERMAN PEACE TALKS DISCUSSION BASIS REACHED N.Z.P. A.—Reuter—Copyright. LONDON, Dec. 8. Mr Molotov, at the meeting of the Foreign Ministers’ Council to-day, again refused to accept the British dr ait proposals for Germany as a basis for discussion, but suggested that the British and Russian, proposals should be taken together as working papers. Mr Molotov tabled the Russian proposals. Reuter’s diplomatic writer says he thus dispelled the fears of an imminent breakdown in the talks. The Ministers eventually agreed to take the British proposals as a working paper for discussion, and when discussing them, to turn to any relevant item in the Soviet proposals. They also decided that after dealing with the proposals in one portion of the British document they would then take the items in the Soviet proposals which did not correspond to any in the British draft. The Ministers, having decided on this procedure, got down to solid business and began discussions on the agreed basis. They agreed, subject to some drafting and to some amendments, on paragraph 16 of the British document dealing with the economic aims of the controlling Powers in Germany. Soviet Criticism Mr Molotov produced two documents, one a series of proposals about Germany’s economy, and the other a more general statement criticising the Western Powers. He finally suggested that both the British and Soviet proposals be discussed. He insisted that the Foreign Ministers must keep to the terms of the Potsdam Agreement. The heads of the Governments made that agreement, and their decisions could not be modified or abrogated by a conference of Foreign Ministers. The British draft aimed at superseding the Potsdam principles. Accepting one document, he said, would mean that one delegation—or even three delegations—would be “ imposing its views on another.” Before offering the Russian plan for Germany, Mr Molotov criticised the Western Powers, and said the British and American authorities, “by separate action and regardless of the Four-Power Control Council, are carrying through their decision about a one-sided restoration of German heavy industry.” The British and American authorities were restoring German war potential, relying on the support of “ Hitlerite industrial monopolists.” This policy created opportunities for “ certain foreign circles ’ to use Western Germany as a strategic base to establish domination o f Europe. .. Mr Molotov said the same policy was also expressed in various forms of pressure on the “ democratic countries of Europe.” At the same? time he said industry in Western Germany was not being developed, with the result that Western Germany’s external dollar debt was continuing to increase without agreement of the Germans themselves.

Mr Molotov’s proposals for Germany dealt with the necessity for rehabilitating German peace-time industry, agriculture and transport; the establishment of central German administrative departments, the raising of tht German level of industry; joint FourPower control of the Ruhr; and nationalisation of German factories.

German Reparations He declared that the agreement for the economic unification of the British and American pones should be declared null and void, and that German reparations to Russia should be fixed at 10,000,000,000 dollars, and that German current production should be drawn on for reparations.

Mr George Marshall said the idea of reparations seemed to dominate the Soviet proposals. “Is acceptance of the Soviet demand for 10,000,000,000 reparations an indispensable condition, for measures to ensure economic unity? ” he asked. Mr Molotov replied that the two questions should be considered simultaneously. and he suggested setting up a committee or instructing the deputies to try to agree on these questions. Lord Pakenham said Britain had never accepted Russia’s demand for 10,000,000,000 dollars reparations, and found it impossible to accept it now. Lord Pakenham continued that Mr Molotov hhd not acceded to the other request made by the delegation for his comprehensive views on its proposals. Mr Molotov had circulated a long attack on the other Allies. To blame the Allies for non-adherence to Potsdam was a complete perversion of fact, and reference to the Ruhr, being used as a strategic base was a shocking mis-statement. Mr Molotov’s proposals merely repeated the proposals which the other Allies categorically and repeatedly rejected. Paragraph 16 of the British document, which was agreed to, stated that the controlling Powers during the second phase of the initial control period would try to eliminate Germany’s war potential, make Germany repay the damage done to the Allies during the war, and, subject to security requirements, help her to restore her economy.

Western Powers Meet Mr George Marshall announced that on his initiative he. Mr Ernest Bevin and M. Georges Bidault held a meeting at the United States Embassy in London last night. The British United Press says officials are most secretive about what the Ministers discussed, but there is little doubt that they decided upon tactics to try to force some decision from Mr Molotov. Mr Marshall’s aides in London for the conference cannot hide their pessimism. They said the purpose of the meeting at the United States Embassy should be obvious after the Big Four meeting on Saturday, when Mr Marshall warned the conference it was heading for the same kind of failure as at Moscow.

Reuter’s diplomatic correspondent says the chief purpose of the conference was to determine the attitude of the three Western Powers to a proposal which Mr Molotov is expected lo make that 17 delegates from the German “Peace Congress,” which met yesterday in Berlin, should be invited lo London to present Germany’s case. Usually reliable British sources said it was not an attempt to plan “showdown ” tactics at meetings of the Foreign Ministers this week.