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Military government weekly information bulletin
Number 124 (December 1947)

[Review of occupational activities],   p. 2 PDF (581.1 KB)

Page 2

and raw materials which the
Soviet Union owes to the Western
Allied Nations as "reciprocal deli-
veries" under the terms of the Potsdam
Agreement, has been allocated among
the member governments of the Inter-
Allied Reparations Agency in Brussels,
the Economics Division, OMGUS,
The Potsdam Agreement specified
that Russia would make deliveries
of commodities such as food, coal,
potash, zinc, timber, petroleum pro-
ducts, and other items to be agreed
upon, equivalent to 60 percent of the
total value of capital industrial equip-
ment reparations  which  she  and
Poland would receive from the three
Western Zones of Germany.
Up to 1 December 1947, the three
WesternZones have delivered approxi-
mately RM 100,000,000 worth of capital
industrial equipment to the USSR and
The first delivery is expected to be
made at an early date. The Soviets
have stated they will complete the
deliveries of the first consignment
within 60 days after they receive
shipping instructions. The commodities
allocated to the United States will
be made available for the German
The General Assembly of the Inter-
Allied Reparation Agency designated
10 countries as the beneficiaries of
the first shipment of these reciprocal
deliveries, which include wheat, gaso-
line, diesel oil, pit props, and timber
valued at approximately RM 5,000,000
at 1938 price levels. TheUnitedStates,
Great Britain, France, Yugoslavia,
the Netherlands, Czechoslovakia, Bel-
gium, Greece, India, and Egypt are
the recipient nations to which these
initial shipments will be made.
DIscussions on the controversial
question of reciprocal deliveries have
been in progress since December 1945,
and shipments of reparations equip-
ment to Russia were commenced in
April 1946. Although it was necessary
for the Inter-Allied Reparation Agency
in behalf of the Western Allied Nations
to specify the nature and amount of
commodities to be delivered in this
first installment, the occupying pow-
ers of the three Western Zones of
Germany felt it necessary to stipulate
that these commodities would come
from outside of Germany or, if coming
from the Soviet Zone of Occupation
of Germany, would be in excess of
Germany's minimum economic re-
quirements, and would not be export-
able to provide funds to be applied
against the cost of occupation.
THE US ELEMENT has repeatedly
requested the Soviets to provide
reciprocal deliveries outside of Ger-
many, but the Soviets to date have
not agreed. While this major principle
has not been agreed by the USSR, the
Frank L. Howley, (above) director
of the Office of Military Government
Berlin Sector since the beginning of
the interallied occupation of Berlin,
has been recalled to active dutoy at
his own request. He has assumed his
former rank of colonel In the Army
of the United States, and has been
appointed US member of the Allied
Kommandatura Berlin.
initial shipments were arranged under
terms which do not specify the source
of the commodities to be delivered,
but provide for such shipments to be
made without jeopardizing future con-
siderations of this principle of source
which remains to be settled.
The following allocation of reci-
procal deliveries has been made by
the Inter-Allied Reparation Agency:
United States: wheat, 1,709 tons;
gasoline, 1,400 tons; diesel oil, 3,141
tons; to be delivered to OMGUS.
United Kingdom: wheat, 1,709 tons;
gasoline, 900 tons; diesel oil, 1,332
tons; pit props, 15,000 cubic meters;
timber, 14,414 cubic meters; to be
delivered to the Commander-in-Chief
of the British Zone of Germany.
France: wheat, 4,104 tons; to be
delivered to the French Group Con-
trol Council, Division of Agriculture
& Food, Berlin.
Yugoslavia: gasoline, 700 tons; die-
sel oil, 527 tons; to be delivered to the
Reparation Commission in Jesenice,
Yugoslavia, (via Rosenheim, Germany).
Netherlands: wheat, 501 tons; tim-
ber, 4,393 cubic meters; to be deliv-
ered at some place in The Hague
(via Zevenaar near Arnhem or Olden-
Czechoslovakia: wheat, 770 tons; to
be delivered to some place in Prague
(via Brod Nad Lesy via Cheb or
Belgium: wheat, 694 tons; to be
delivered to a place in Brussels (via
Greece: timber, 6,088 cubic meters;
to be delivered to Greek Government,
Greek   Ministry  of  Coordination
through the intermediary of Hager &
Schmidt, G. m. b. H., Bremen.
India: wheat, 513 tons; to be deliv-
ered to Director General, Ministry
of Industries and Supplies, Govern-
ment of India, New Delhi, India, via
the intermediary of Messrs. Hogg,
Robinson & Capel-Cure, Ltd., care of
41 Movement Control, Trien Building,
Alstereck, Hamburg.
Egypt: timber, 105 cubic meters; to
be delivered to Agency Maritime, de
Keyser Thornton, S. A., 43 Longue Rue
Neuve, Antwerp (via F. Halbert & Co.,
91 Rue Lambertl, Herbesthal).
22 DECEMBER 1947
Goods Allocated to Allies

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