Letter to the Minister President of the German Democratic Republic Otto Grotewohl

On the reduction of Germany's reparation payments

May 15, 1950

Dear Mr. Minister President,

The Soviet government has examined the request of the government of the German Democratic Republic on the reduction of the reparation sum to be paid by Germany.

The Soviet government has, at the same time, borne in mind that the German Democratic Republic has been conscientious and regular in their fulfilment of their reparation obligation, which is charged as high as 10 billion dollars, and that by the end of 1950 an important part of this obligation, as much as 3658 million dollars, will have been realized.

Led by the wish to ease the efforts of the German people in the reconstruction and development of the people’s economy in Germany, and bearing in mind the friendly relations between the Soviet Union and the German Democratic Republic, the Soviet government has decided, with the agreement of the government of the Polish Republic, to reduce the remaining sum of ‘the reparation bill by 50%, to 3171 million dollars.

In agreement with the declaration of the government of the U.S.S.R. at the Moscow Conference of Foreign Ministers in March 1947, and the settlement of a twenty year term for the payment of reparation, the Soviet government has further decided to accept payment of the remaining part of the reparation bill in German goods (as much as 3171 million dollars) out of the production of fifteen years running, starting with the year 1951 up to the year 1965, inclusive

With deep esteem,

J. Stalin

Chairman of the Council of Ministers of the U.S.S.R.

("Daily Review" No. 113, 17 May, 1950)