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Military government weekly information bulletin
Number 87 (April 1947)

Press and radio comments,   pp. 24-31 PDF (4.3 MB)


Page 26

HOOVER INDUSTRY PROGRAM (Confinued from page 10)
and the second, reparations for wrong done:
A. There has necessarily been, or will be,
a demolition of all arms plants as part of
disarmament. This destruction, however,
has included some plants which might have
been converted to peaceable production.
B. Reparations have been provided by as-
signment for removal to the different Allies
of certain percentages of "usable and com-
plete industrial equipment." What proportion
of Germany's peaceable productive plants
has been, or is, in the course of removal in
the French and Russian Zones is not known.
Certainly they have been very large from the
Russian Zone. The total for all Germany
amounts to an important segment of its
peaceful productivity. These removals in-
clude a large amount of "light industry"
(producing mostly consumers goods) as well
as "heavy industry" (producing mostly
capital goods). The removal of plants from
the American and British Zones has been
halted because of the refusal of Russia and
France to cooperate in interzonal economic
unity as provided for at Potsdam.
5. In addition to the above courses of
action, there have been general policies of
destruction or limitation of possible peaceful
productivity under the headings of "Pastoral
State". and "war potential." The original of
these policies apparently expressed on Sept
15, 1944, at Quebec, aimed at: "converting
Germany into a country principally agri-
cultural and pastoral," and included, "the
industries of the Ruhr and the Saar would,
therefore, be put out of action, closed
down . .
This idea of a "Pastoral State" partially
survived in JCS Order 1067 of April, 1945
for the American Zone. It was not accepted
by the British. The "Pastoral State" concept
was not entirely absent in the Potsdam
Declaration. It was partially ameliorated or
its name changed for another concept, the
"level of industry," developed by the agree-
ment, of March 26, 1946, and signed by
Russia, Britain, France, and the United
States. This agreement was a compromise
between the drastic terms proposed by Russia
and France and the more liberal terms pro-
posed by the other two nations.
One major theme of this "level of in-
dustry" concept is to destroy Germany's
''war potential." Under this concept certain
industries are to be blown up or prohibited,
others are to be limited as to production. The
emphasis was placed upon the limitation of
"heavy industry" with the view that Ger-
many could export enough goods from "light
industry" to buy her food and necessary
raw materials.
The absolute destruction or prohibition
includes ocean-going ships, shipbuilding,
aircraft, ball bearings, aluminum, magnesium,
beryllium, vanadium, and radio-transmitting
equipment, together with synthetic oil, am-
monia and rubber. Some of these provisions
may be essential to disarmament. Such ex-
ceptions are not included in the discussion
which follows.
Beyond these prohibitions, however, the
"level  of  industry"' concept  provides
elaborate restrictions, mostly on heavy in-
dustry. The following items are illustrative:
Iron and steel production to be reduced
from 19,000,000 tons (as in 1936) to a
capacity of 7.5 million tons, with a maximum
(annual) production of 5.8 million tons and
only the "older plants" to be used.
Heavy machinery production to be 31
percent of 1938
Light machinery production to be 50 per-
cent of 1938
Machine tools to be 38 percent of 1938
Electrical machinery to be from 30 percent
to 50 percent of 1938
Agricultural implements to be 70 percent
of 1936
Automobiles to be 10 percent of 1936
Trucks to be 67 percent of 1936
Basic chemicals, including nitrogen, cal-
cium carbide, sulphuric acid, chlorine and
alkali to be 40 percent of 1936
Cement to be 65 percent of 1936
Electric power produced to be 60 percent
of 1936
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