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Military government weekly information bulletin
Number 74 (January 1947)

Press and radio comments,   pp. 24-43 PDF (10.3 MB)

Page 30

water for ihydro-generation over all of
Europe. During the year the organization of
MG Utility Sections in the Laender was com-
pleted, as well as the establishment of Ger-
man Utility Committees in each Land and at
Laenderrat level to deal with the Land and
Zonal utility problems. On the bizonal level
a German Central Board for Public Utility
Services was established.
The production of potash has been con-
tinuously increased during the year because
of the urgent need for fertilizers. Iron ore
mines are producing the requirements of the
steel plants operating in the US Zone, and
every effort is being made to maximize the
production of iron pyrites because of the
urgent needs of the sulfuric acid industry.
Other production, such as clay, is sufficient
to meet industrial demands.
From a meager beginning in the first
quarter of 1946, the US Zone is now produc-
ing 26,000 tons of pig iron monthly, 20,000
tons of ingots, and 16,500 tons of steel cast-
ings. In the non-ferrous field, fabrication is
now at the rate of 2,000 tons a month, as
against 400 tons in the first quarter.
A bizonal study is currently being made
by British and American delegations to
determine the possibility and advisability of
importing crude oil and utilizing German
refinery capacity to the utmost. Preliminary
figures indicate that substantial savings may
be realized. Final action is expected by
1 March 1947. A program has already been
developed for servicing all privately owned
vehicles in the two zones with POL by Ger-
man service stations.
German plants approved for reparations
numbered 658 as of 31 October 1946, of
which 157 are in the US Zone. 109 plants
in the Zone were designated as industrial
war plants, and 70 of them have already
been eliminated as war potential, with work
now in progress in removing war potential
from 17 other plants. Objectives for 1947
are: to complete shipments of all advanced
delivery plants as soon as practicable after
allocations are made; to carry on liquidation
of war potential in war plants; to complete
evaluation work on plants already approved;
and to expedite shipments of general purpose
equipment in war plants which have already
been allocated to recipient nations.
Although recovery has been substantial
during the past year, much further progress
must be made before industry approaches
the level essential to maintain a self-support-
ing German -economy. A gain of at least 60
percent above the November rate would be
needed to bring industrial output in the Zone
to that contemplated in the Level of Industry
Plan estimates for 1949.
The light industries, which have thus far
lagged in recovery, must contribute a major
share to further industrial advance, partic-
ularly since industrial disarmament of Ger-
many requires that they play a larger rela-
tive role in the post-war German economy
than heretofore. However, further improve-
ment in the heavy industries is also impera-
tive to provide the light industries with
needed equipment, fuel, materials, and trans-
The general picture portrayed by these
figures  indicates  considerable  progress
toward  the restoration of the industrial
economy of the US Zone. However, it is
necessary to emphasize that the months im-
mediately ahead are clouded by serious dif-
ficulties and uncertainties. Most serious is
the growing pinch of the coal shortage, ag-
gravated by the need to divert coal from
industrial uses in order to maintain electric
power output in the face of the seasonal
drop in hydrogeneration, and to provide a
minimum of essential heating. Periodic
power interruptions are also curtailing pro-
duction in many plants. Chronic shortages of
raw materials and transportation continue.
Setbacks in some industries will be unavoid-
able this winter, and there may be a reduc-
tion in the level of output for industry
as a whole.    Industrial production next
spring, however, should start from a con-
sidearbly higher level than a year before.

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