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Military government weekly information bulletin
Number 97 (June 1947)

Szymczak, M. S.
The United States' stake in German economic recovery,   pp. 13-18 PDF (3.9 MB)

Page 18

First of all, the provision of the
Potsdam Declaration which calls for
the economic unification of Germany
must be carried out. Unification in
itself will not solve the economic
problems of Germany, but it will en-
sure the development of the whole
German economy on a more rational
-basis. Uncertainty as to economic
unification is a handicap in many
fields, notably  in  adjusting  the
so-called Level-of-Industry Plan to
changed conditions. Under that plan
which was approved by all four occu-
pying powers one year ago, maximum
levels were established for most Ger-
man industries with a view particu-
larly to preventing the resurgence of
German war potential. Most experts
agree that this plan needs substantial
corrections,-but the necessary amend-
ments in each zone will largely
depend upon developments in other
zones and upon the question of whether
the German economy is to be redevel-
oped as a unit or in separate self-
sufficient parts.
Another problem that urgently
needs attention is currency reform.
The disproportion between the supply
of money and of goods at prevailing
prices cannot be maintained indefini-
tely. All experts agree that a reduc-
tion in the volume of currency will
be necessary. Obviously, the execu-
tion of such a reform also dependsupon
the fate of unification. If common ac-
tion of all four occupying powers is
not forthcoming, the advantages and
disadvantages of separate action in
the merged American and British
Zones must be weighed.
Other problems arise in connection
with the political aims of occupation.
The decentralization of the German
economy must be achieved in order to
make it impossible for the country to
reorganize for aggressive purposes.
In this connection, Military Govern-
ment in the American Zone has en-
acted a drastic decartelization statute,
which is aimed at. destroying the con-
centration of economic power in Ger-
man industry. Property of allied na-
tions looted during the war has been
and is being restituted. War plants
have been and are being destroyed,
and other plants have been and are
being removed for reparations. The
over-all problem of reparations, how-
ever, still remains to be solved.
The lack of unified action of the
four occupying powers, moreover,
creates uncertainties that are detri-
mental to economic progress. As long
as the management of an enterprise
does not know whether or not a
plant be subject to restitution, or to
destruction, or to removal under the
reparations program, it cannot make
definite plans for reconstruction or
start an investment program which
might be interrupted at any moment.
Finally, Military Government has to
deal with the problem of reaching
equilibrium in the balance of inter-
national payments of the merged
American and British Zones. In this
connection, the question of economic
unification again becomes decisive.
As long as unification is not achieved,
interzonal trade must be treated as
international rather than domestic
commerce, with the resulting need for
controlling interzonal payments.
The problem of equilibrium is par-
ticularly interesting to the American
public. As long as - the proceeds
from exports do not exceed im-
port requirements they must be
devoted entirely to paying for cur-
rent imports. Only when an export
surplus is reached, will it be possible
for our merged zones to start repay-
ing the advances made by the occu-
pying powers for the importation of
basic necessities.
Our stake in the economic problems
of Germany, however, is greater than
our interest in receiving repayment
of our advances. We want peace, and
we know in order to have peace, we
must have economic stability in Ger-
many and in the rest of Europe.
Direct Inquiries
Inquiries from public prosecutors
in denazification cases in the US Zone
may be made directly to police offi-
cials in the British Zone, according
to OMGUS cable V-18 313 of 13 May.
It said:
"Approval has been received from
Military Government authorities in
the British Zone for the forwarding
of Arbeitsbldtter and similar inquiries
from  public prosecutors in the US
Zone directly to the German chiefs
of police of the appropriate Regie-
rungsbezirk or Stadtkreis in the Bri-
tish Zone, without going through
Military Government channels.
"Such inquiries should be directed
to the chief of police of the Re-
gierungsbezirk where the subject was
formerly resident or employed, or to
the chief of police of the Stadtkreis
if the Stadtkreis has a population of
one hundred thousand or more. The
police in the British Zone will assume
responsibility for securing the de-
sired information from other German
agencies to which the Arbeitsblaetter
may be directed."
General License No. 1
General License No. 1 issued pur-
suant to MG Law No. 164, "Frontier
Control" as amended, and MG Law
No. 53, "Foreign Exchange Control,"
contains the following provisions:
Persons who are authorized to enter
the US Zone of Germany from another
zone of Germany, or to depart to an-
other zone of Germany, may bring
into the US zone at the time of entry,
or may remove at the time of de-
parture, ordinary household and per-
sonal effects, food, and marks in their
lawful possession, required for their
personal use, but excepting items
which are prohibited for -security
Persons who are authorized to enter
the US Zone from -a country other than
Germany, may bring into the Zone at
the time of entry, ordinary household
and personal effects, including food
and foreign exchange assets, in their
lawful possession, required for their
personal use, but excepting items
which are prohibited for security
reasons; provided that such persons
in possession of foreign exchange
assets shall be informed of the pro-
visions of MG Law No. 53.
Persons who are authorized to de-
part from the US Zone to a country
other than Germany, may. remove
from Germany at the time of departure
ordinary  household  and  personal
effects, in their lawful possession, re-
quired for their personal use; but this
does not authorize the export from
Germany of foreign exchange assets,
items which are prohibited for secur-
ity reasons, or works of art and
cultural objects of value and import-
16 JUNE 1947

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