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and Industry, likewise provided for in the
Potsdam Agreement, have not yet been estab-
lished by quadripartite action.
Let me emphasize that the American people
have no desire to deny the German people an
opportunity to work their way out of their
present hardships so long as Germany re-
spects human freedom and abjures war and
militarism.
It was for this reason and as a step toward
implementing the Potsdam Agreement
that we announced on 20 July of this year
our readiness to join with any other oc-
cupying power or powers in measures for
treating our respective zones as a single
economic unit.
We mentioned on that occasion that the
United States Government is unwilling to
permit creeping economic paralysis to grow
here as a result of Germany being adminis-
tered in four airtight compartments, if it is
possible to join our zone economically with
any or all of the other three zones.
BIZONAL ECONOMIC ACCORD
As you probably know, the British Gov-
ernment accepted our zonal economic
merger proposal. On the third of this month,
the finalized agreement was announced in
Washington providing for the full economic
integration of the American and British
Zones of Occupation in Germany, effective
1 January 1947.
This bizonal agreement envisages an eco-
nomic program calculated to make the area
self-sustaining in three years. This program
is expected to form the basis for the gradual
restoration of a healthy non-aggressive Ger-
man economy and in turn contribute to the
economic stability of Europe.
Other significant provisions of the Anglo-
American bizonal agreement pertain to the
establishment of a joint export-import
agency to promote and finance foreign trade,
the pooling of resources of the two zones to
produce a common standard of living, and
the establishment of German Administrative
Agencies necessary to the economic lnifica-
tion of the two zones.
In actual operation, the new bizonal
agreement will result in many reciprocal
advantages to the two zones through their
economic merger begining with the new
year 1947. This prospect should lend en-
couragement to many Germans who are eco-
nomically despondent and hitherto have
seen little hope for their country's economic
rehabilitation.
YOUTH ACTIVITIES ENCOURAGED
As this season of the year is of special
significance to the children, I will make
special mention of another American ob-
jective which is of major importance in
building up peaceful democracy in Germany.
This is the encouragement of German Youth
Activities. Under the Nazis the Hitler
Jugend was the only youth organization
permitted to exist. After this organization
was disbanded by the Allies, democratically
organized movements began to spring into
life spontaneously. However, these organi-
zations lacked necessarymaterial,equipment,
and democratically trained leaders to aid
them. During this period, our military per-
sonnel has officially provided supplies and
now nearly one thousand military personnel
are directly engaged as German Youth Activ-
ities officers and non-commissioned officers.
This assistance has brought about an ac-
celerated upswing of youth activities which
has exceeded the expectation of your youth
officials. The number of authorized youth
groups has grown to more than seven thou-
sand with more than seven hundred thousand
members.
ARMY ASSISTANCE CITED
Troop detachments have organized sports
events, youth days, clubs, discussion groups,
etc. Scouting, YMCA, YWCA, hosteling, and
other groups have been helped and encourag-
ed. Equipment and materials have been
transferred, and transportation and youth
centers provided.
In every Kreis and Land in the US Zone
a German Youth Committee has been organiz-
ed. These committees provide an organiza-
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