PROBLEMS FACED

Otago Daily Times, Issue 26641, 11 December 1947, Page 7

PROBLEMS FACED

GERMAN TREATY TALKS ATTITUDE OF FRANCE AND RUSSIA N.Z.P.A.—Reuter—Copyright. LONDON, Dec. 9. The Council of Foreign Ministers today agreed to the British proposal that a common export and import programme for the whole of Germany should be drawn up, but on other points discussed found themselves facing the problems of Russia’s attitude to reparations and central German departments, and France's attitude to the Saar, the Ruhr and the Rhineland. Mr Molotov accepted the British text of proposals that all restrictions should be removed on the movement of goods between zones, and that the resources of all zones should be pooled. Mr Molotov again claimed, however, that central German departments must be established before Germany could have economic unity. This was taken to mean that he thought the establishment of these departments was a prerequisite to a pooling of resources and' the freeing of transit of goods. M. Bidault was not able to accept the British text on this point. Mr Bevin introduced the British proposals for sharing the financial burden of the occupation of Germany between the occupation Powers. Mr Bevin contended that repayment of occupation costs should be first charge on Germany's foreign exchange resources.

Mr Molotov's discussion of this point led him to launch a tirade on the subject of prices charged for coal produced in the British and American zones. Mr Bevin commented that Mr Molotov, by raising this question, had raised a cloud of smoke over the issue, He hoped it would be cleared by tomorrow. M. Bidault repeated the French demand for economic attachment of the Saar to France and the French claim that there should be a special regime for the Ruhr and the Rhineland. Mr Molotov was prepared to accept the British text in principle, but he wanted to add the Russian proposal referring to fulfilment of Germany’s reparation and other obligations.