University of Wisconsin Digital Collections
Link to University of Wisconsin Digital Collections
Link to University of Wisconsin Digital Collections
The History Collection

Page View

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
tal I
pants ir
ons, 75
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.
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-
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.
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 .

Go up to Top of Page