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1945, in Berlin, which shall be its headquarters. Each delegation on the commission will have the right on the basis of reciprocity to inspect German warships wherever they may be located.

(6) The three Governments agreed that transfers, including those of ships under construction and repair, shall be completed as soon as possible, but not later than 15 Feb., 1946. The commission will submit fortnightly reports, including proposals for the progressive allocation of the vessels when agreed by the commission.

B. The following principles for the distribution of the German Merchant Marine were agreed:

(1)

The German Merchant Marine, surrendered to the Three Powers and wherever located, shall be divided equally among the U.S.S.R., the U.K., and the U.S.A. The actual transfers of the ships to the respective countries shall take place as soon as practicable after the end of the war against Japan. The United Kingdom and the United States will provide out of their shares of the surrendered German merchant ships appropriate amounts for other Allied States whose merchant marines have suffered heavy losses in the common cause against Germany, except that the Soviet Union shall provide out of its share for Poland.

(2)

The allocation, manning, and operation of these ships during the Japanese War period shall fall under the cognizance and authority of the combined shipping adjustment board and the United Maritime Authority.

(3)

While actual transfer of the ships shall be delayed until after the end of the war with Japan, a tripartite shipping commission shall inventory and value all available ships and recommend a specific distribution in accordance with Paragraph 1.