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d)   With respect to treatment of the German popula-
     tion, no steps should be taken by the occupation
     authorities for the purpose of providing a 
     higher standard of living than is reuired for
     the prevention of disease and disorder.  Agree-
     ment should be sought on a uniform quantitative
     definition of this standard and on the measures
     which the victorious powers might be prepared to
     take if necessary to assure such a minimum.
     This agreed minimum should not be raised until
     it is agreed that political tendencies within
     Germany justify some relaxation; the needs of
     liberated countries should, in any event, re-
     ceive priority.
 
e)   We should favor the conversion of the remainder
     of German industry to peacetime production, in-
     cluding particularly the production of repara-
     tion goods required to effect an early contribu-
     tion to the rehabilitation of European countries.
     The reparation program should be of short dura-
     tion; and should consist predominantly of pay-
     ments in kind, with, perhaps, some labor services.
     Its size must depend upon the scope of the mea-
     sures undertaken under (c) above.  Extensive
     restrictions on heavy industrial exports imply
     a comparatively small reparation program, with
     emphasis on transfer of existing German capital
     equipment rather than of current German output.
 
f)   Payment for such current imports as the control
     authorities allow to Germany, and other similar,
     current expenses should become a first charge
     on German exports, ranking above reparation
     payments. Unless this principle is accepted,
     we run the danger of being called upon to pay
     for Germany's imports while other countries are
     extracting reparation payments from Germany.
 
g)   We should favor full restitution of identifi-
     able looted property.  Restitution should be
     handled at an inter-government level and
     should be returned to the government having
     jurisdiction over the place from which the pro-
     perty was looted.