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Military government weekly information bulletin
No. 42 (May 1946)

[Highlights of policy],   pp. 5-10 PDF (2.6 MB)


Page 10

For Reparations:
185 Industrial Plants from US lone
One hundred and eighty five industrial
plants in the American Zone, the major-
ity of them employed in the construction
of aircraft and armament, have been de-
clared available for reparations according
to figures recently released by OMGUS.
(The total for the US, British, and
French zones is 661
industrial plants).
When finally re-       Allocation of
moved, the plants
from   the  US   oc-     Zone         Tol
cupied area will have    United States  2
,a decisive affect 'on   British       3
Germany's warmak-        French        1
ing   capacity.  All     T
plants in the Zone    Fig 1: Of the 661 industrial
capable lof manufac-  Zones available for reparati
capable 'of manufac-  USSR and Poland and the
turing ferro - nickel
fInd
tal I
!4
9
12
5
pants ir
ons, 75
Wester
and explosive chemicals will have been
eliminated. A 90 percent reduction in
plant capacity for aircraft engines and a
75 percent reduction for aircraft manu-
facture and assembly will have been af-
fected. Eventually aircraft manufacturing
will be eliminated entirely.
Following the acceptance of the Re-
paration Plan last month, the Control
Council Coordinating Committee allocat-
'ed 49 plants from the US, British and
French zones. This was the second allo-
cation, th-e first having been agreed upon
in December 1945 when 26 plants, ap-
praised under "Operation Rap,"' were ap-
proved as advance reparations. The ma-
jority of plants allocated to France, Bri-
tain and the US represents general pur-
pose equipment to be taken from special
purpose war facilities. (S-ee Fig 1.
above).
During March and April evaluations of
nine plants in the US Zone were complet-
'ed under the qua~driparte plant 'evaluation
formula accepted by the Coordinating
Committee in January 1946. The aprais-
als ranged from RM 36,403 for the Gu-
stav Genschow plant at Durlach to RM
5,574,643 for Norddeutsche Huette in Bre-
men-Oslenbshausen.
The formula pro-
lustrial Plants     vides for evaluation
Plants Allocated   of plant and 'equip-
JSSR and Western    ment in Reichsmarks
Poland  Nations
3'/2    201/.    at 1938 replacement
3'/2    35'/2    costs, without taking
8       67       into account delivery
_________67______  and installation 'ex-
n the U.S., British and French plenses, but with de-
5 have been alocated to the pre.ation subject to
rn Nations as shown above.prc
a multiplier of 1.35
for every year of war use. War damage
is deductible and depreciation allowed
at a specified rate based on US Treasury
Department schedules. The qua-dripartite
plant appraisal formula will also be the
basis for setting the value of raw mat-
*erials and other commodities to be supp-
lied in return for the 15 percent of excess
industrial capacity shipped to the USSR
and Poland from the Western Zone.
SEVEN US ZONE PLANTS DESTROYED
A significant source of German repara-
tions arises from the provision in the
P'otsdam Agreement to wipe out Ger-
many's direct war-making capacity. After
general purpose equipment, power plants,
'etc., is removed from war plants, such
plants are almost invariably destroyed.
As 'of 8 April 1946, seven such plants
in the US Zone had been completely dis-
mantled and destroyed .
10


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