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Military government weekly information bulletin
Number 49 (July 1946)

[Highlights of policy],   pp. [4]-[29] PDF (18.0 MB)

Page [9]

Reparations and the Level of Postwar Ger-
man Economy.
A basic factor is the heavy dependence of
the US Zone on the other three zones of
Germany and, to some extent, on foreign
countries, for important raw materials and
semi-fabricates. In two basic items - coal
and steel - US Zone capacity is far below
US Zone minimum requirements. Practically
all oil used in the US Zone in May was pro-
vided from US Army stocks. Although the
pech and brown coal mines in the US Zone
have been working at near capacity for a
number of months, their output supplies
only about one-tenth of the Zone's coal con-
All hard coal needed must be brought in
from the Ruhr and Saar. Pit-head output
The initial stages of economic recovery find some maunfacturing
concerns such as this 'plant in Karlsruhe back in operation
of hard coal in these two main German
hard coal producing areas has fluctuated
around 45 percent or less of 1938 output,
and around two-thirds of present capacity.
Of this output, about one-quarter has been
used in the mining of coal and for mine
power generating stations. A further sub-
stantial percentage has gone to high priority
coal consumers - the railroads, the public
utilities and the occupying forces.
The result has been that the US Zone in
the first five months of 1946 received less
than one-third of the coal tonnage normally
consumed in this area in prewar days. A
parallel situation exists in iron and steel
After allowance for reparations removals,
the Zone will be dependent on outside
sources for 83 percent of its steel.

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