Page 50

Action Planned against Trade Violators
US HIGH COMMISSIONER JOHN J. McCLOY has re-
commended to the US Government that shipment of
certain strategic commodities from the United States be
prohibited to any company or person in Western Ger-
many who "may be engaged in transactions of this na-
ture" with the Soviet orbit.
The proposed ban, prepared after lengthy consideration
by HICOG and US'governmental departments in Wash-
ington, would not affect US food shipments to Germany.
Thils action followed an announcement by Federal
Chancellor Konrad Adenauer that steps would be taken
to combat illegal exports and deny scarce raw materials
to violators. In a letter to Chancellor Adenauer, Mr.
McCloy advised him of the recommendation to Wash-
ington. His letter to the chancellor follows.
"I was gratified to learn of your statement, dated April
28, 1951, in which you referred to the objectionable
situation prevailing within the Federal Republic in the
matter of illegal exports of strategic commodities to the
East. I noted particularly the expression of your firm
intent to take effective steps in combating such illegal
trade and denying scarce raw materials to violators, as
one of the steps to be employed.
As you know, the Government of the United States is
profoundly concerned with this problem and is endeavor-
ing to find an adequate solution to it in Germany, as well
as in other parts of the Western world. Mr. Cattier, chief
of the ECA Special Mission to Western Germany, has
informed your government that no ECA counterpart
funds will be approved for investment in any company
which engages in illegal trade with the East. Recently,
General Handy and I agreed to extend operations of the
US Customs Unit to the interzonal border of the US
Zone, as well as the international border, where it had
previously been stationed. Further, as you know, mem-
bers of my staff in recent weeks have had numerous
discussions with representatives of your government, in
reference to various aspects of illegal East-West trade.
Information received by my staff confirms the serious
state of affairs in this field.
In order to supplement measures which have recently
been taken or announced, I would like to ask you to
institute all measures necessary to prevent any alloca-
tion of ECA dollars, or commodity imports for ECA dol-
lars, to any person or company which engages in illegal
trade with the Soviet orbit.
I would further like to advise you that I am recom-
mending to my government to prohibit certain exports
from the US to any companies or persons in Western
Germany who, according to information coming to our
attention, may be engaged in transactions oif this nature.
Your offer of cooperation in this matter reflects your
appreciation of the scope and significance of this problem
and a determination to find an appropriate solution to it.
This attitude is indeed gratifying, and I would like to ask
you to instruct competent members of your government
to meet with appropriate members of my staff, in order
to arrive at mutually satisfactory arrangements on pro-
cedures and administration in this field in accordance
with the objectives outlined in the foregoing paragraphs."
US Forces' Derequisitions Exceed 7,000
MORE THAN 7,000 PIECES of property in the US Zone
of Germany formerly used by US Forces, have been
returned to the control of German authorities.
Each of the items, ranging from hotels to sports fields
and from hospitals to huge apartment blocks, has re-
- rted to German jurisdiction through the US Army's
and Air Force's efforts- resulting from a vigorous cam-
paign which became effective Jan. 1, 1948  to reduce
to the fullest extent possible the amount of German
property holdings under control of US Forces.
All these derequisitions of property have been made
as a result of consolidations and other studied economy
measures on the part of EUCOM. Particularly worthy of
attention is the fact that these were accomplished for
the purpose of reducing demands on the German economy
to the very minimum, despite the fact that they were
carried out during a period when the dependent and
troop strength of the command increased materially.
Despite this personnel increase EUCOM has not re-
quisitioned any family housing in the past year. It is not
expected that there will be any change in this practice.
The property items were returned between Dec. 31,
1947, and Dec. 31, 1950, with more than 4,100 private
homes representing the largest single type of return or
derequisitioning. Included in the property restored to
the Germans were 216 barracks, 45 schools, 25 hospitals,
858 apartments, 191 hotels, 104 warehouses, 50 factories of
all sizes, 191 office buildings, an airport and a post office.
Under the EUCOM property consolidation program,
a special section is charged with responsibility for periodic
review of all requisitioned property. Property lists are
checked, in conjunction with troop consolidation efforts,
and facility centralization act.on such as construction of
shopping centers - in ordzr that every square foot of
German-owned real estate space can be returned to normal
control if it is possible to do so.
At present, property control officials at EUCOM head-
quarters are continuing surveys of requisitioned German
property with a view toward relinquishing control of
certain items, through constant examination of holdings,
and approving release of those which are not essential
to US Forces' requirements.
INFORMATION BULLETIN
JUNE 1951
50