from 1 January 1954, cease completely to require the payment of reparations by the German Democratic Republic, wheter in the form of goods or in any other form.
The German Democratic Republic shall accordingly be released from payment of the reparations still outstanding after 1 January 1954, which, in accordance with the Soviet Government's declaration of 15 May 1950 concerning the reduction of reparations paid by Germany to the Soviet Union, amount to $2,537 million at 1938 world prices.
II
The Soviet Government as from 1 January 1954 shall without compensation transfer to the ownership of the German Democratic Republic the thirty-three machine, chemical, metallurgical and other works, situated in Germany and having a total value of 2,700 million marks, which had been transferred to USSR ownership as reparations.
A Soviet-German mixed commission shall be established to effect this transfer.
The Soviet Government shall also release the German Democratic Republic from the debt, amounting to 430 million marks, incurred in connexion with the transfer by the Soviet Government of sixty-six Soviet industrial plants in Germany to the Government of the German Democratic Republic in 1952.
III
The costs borne by the German Democratic Republic in connexion with the presence of Soviet armed forces in the territory of the German Democratic Republic shall be reduced by the Soviet Government so that the annual amount of such costs will not exceed 5 per cent of the receipts under the national budget of the German Democratic Republic and in no case the amount of the occupation costs for 1949. The expenditure by the German Democratic Republic for the maintenance of Soviet armed forces in Germany in 1954 shall accordingly be 1,600 million marks as against 1,950 million marks in 1953 and 2,182 million marks in 1949.
IV
The Soviet Government declares that it fully releases the German Democratic Republic from the payment of debts in foreign currencies representing occupation costs which have been incurred since 1945.
No. 3005
