Pauley Files: Telegram

No. 899
The Delegation to the Allied Commission on Reparations to the Representative on the Allied Commission on Reparations (Pauley)1

secret
priority

To US Headquarters Berlin District Visitors Bureau for Ambassador from Sproul, Abramovitz and Bergson signed Deane M 25043. (Confmess 5)

1.
Approximately 40 per cent of both movable and fixed capital assets before the war were located in Russian Zone. This includes Berlin.
2.
Movable capital assets east of Oder–Neisse line were worth about 6 Billion Reichsmarks in 1938. This was about 12 per cent of total Germany. This does not include value of land, mineral reserves, fixed plant, housing, commercial establishments or commercial and manufacturing inventories. Values are net after depreciation. Present value probably not less than in 1938.
3.
Based on value added, industrial and mining output. Area east of Oder Neisse was about 28 Billion Reichsmarks in 1938. This was about 7 per cent of total Germany.
4.
It should be noted that because of dislocations involved, loss of territory may affect Germany’s capacity to pay in somewhat greater degree than percentage figures above would suggest.
  1. Sent by the United States Military Mission, Moscow, via Army channels.