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preparation for war. Imports were centrally
controlled as to amount and type for essen-
tial requirements; exports were chosen to
make the least dralia on the economy and
were forced on the market by means of a
variety of clearing and compensation ar-
rangements. Imports control' was'placed in
the hands of commodity agencies known as
.Reichstellen, which had the responsibility of
procurrement and power to release foreign
exchange.
To assist exports, an export -subsidy
system supported by voluntary contributions
of German enterprises was established and
an intricate foreign account system set up
for the purchase'of German exports which
amounted to subsidization. By withholding
these favors from some commodities and
extending them to others, and by the con-
trolled distribution of raw materials, com-
plete control of exports in the interests of
national policy was achieved. In other words
there was complete regimentation, which
finally came to have its organization and
center in the Foreign Trade Department of
the Ministry of Economics and a network
of regional agencies.
PROPOSED FUNCTIONS
It is now proposed that the Department
shall be organized to undertake the follow-
ing activities: It .is to be. an information
agency on economic .conditions in Germany
pertinent to exports and imports for Ger-
many as a whole and on foreign export and
sources of supply for imports. It is -to
advise the Allied. Control Authority ...on
export-import programs for Germany as a
whole, submit suggestions  on means ....by
which achievement of Allied occupation ob-
jectives in the foreign field can be accelerat-
ed, and make suggestions on export-import
matters to the Land and Provincial govern-
ments in spheres reserved to their executive
authority. It will have operating functions
to maximize. exports.; screen exports and. im-
ports; establish licensing, procedural and
accounting  systems;  arrange  collection,
storage, transportation.,and distribution, and
maintain liaison with other central depart-
ments in their respective fields.
Approval of export and import programs,
finalizing of contracts, and receipt and
disbursement of foreign exchange are re-
served to the Allied Control Authority. The
Laender are changed with supervision and
enforcement of export-import regulations
as applied to individual firms, the purchase
of exports and sale of imports to individual
firms for marks, and the issuance of licenses.
The Laender may delegate their powers and
responsibilities to local authorities.
FOUR-POWER BUREAU UNDER ACA
The department is under the control of
the Allied Control Authority in all its
activities. To facilitate this control a
Quadripartite Bureau for Foreign Tra .Pe
under the Trade and Commerce Committee
should be established within the Allied
Control Authority which would take the
place of the Import-Export Subcommittee
of the Trade and Commerce Committee and
should be charged with the full responsibi-
lity for the supervision of the German
Central Agency. The bureau should be given
definite executive powers within established
policies so that supervision of the operations
of the German tCentral Agency could be
efficiently carried out, and the bureau should
be authorized to coordinate directly -with
other sections of the Allied Control Authority
with respect to matters directly relating to
foreign trade, such as industry and food and
agriculture.
* The relationship  between the German
Central Agency and Allied Control Council
will gradually: change. During the initial
stage of organization and staffing, specific
and detailed supervision and direction by
the Allied Bureau of the Control Council
will be necessary. During a second stage
the Trade Department will have to secure
the assent of the Allied Control Council in
all major policy questions and all functions
assigned to it by the Allied Control Council will
be reviewed at "regular intervals. During the
final stage, controls may be limited to a
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