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EUCOM Dollars Help Economy APPROXIMATELY 25 CENTS out of every US dollar rate of DM 3.33 per dollar between June 21, 1948, and earned by American military and civilian personnel Sept. 30, 1949, and subsequently at the rate of DM 4.20 with the US Forces in Germany between July 1, 1950, per dollar. and June 30, 1951, went into the foreign exchange hold- The EUCOM comptroller's report also pointed out that ings of the German Federal Republic through the pur- from May 1947, through October 1950, US Personnel paid chase of Deutsche marks in EUCOM finance exchange out $3,893,919 in MPCs for the purchase of non-duty offices during the fiscal year. travel rail tickets. Since Nov. 1, 1950, such purchases Details of that valuable assistance to the West German have been made in Deutsche marks. economy were contained in a report issued by Head- US personnel spent almost $29,000,000 during the quarters, European Command, based on statistics at the period concerned for such items as EUCOM Export Taxi EUCOM Comptroller's Office in Heidelberg. fares and communications services such as telephone and The report stated that Americans with the US Forces cable facilities through the Deutsche Post. These pay- in Germany (exclusive of HICOG) earned an estimated ments were also made with MPCs, which meant dollar $237,594,000, after tax deductions, during the year ending credits to Germany, since the MPCs were convertible June 30, 1951. Records indicate that during the same into US currency at the official rate of exchange. year, US personnel exchanged $59,818,717 for Deutsche marks~~ at th ofiilrt'oxhne The over-all benefits to the German economy through private Deutsche-mark purchases by US personnel, and Figures at the comptroller's office also reveal that scrip payments for services, amounted to approximately Americans on duty with EUCOM in Germany spent al- $160,000,000 during the period covered by the comptrol-A most 19 cents out of every dollar earned in EUCOM ler's report. for the purchase of Deutsche marks through finance exchnge ffies drin thethre yers ededJune30, The sale of Deutsche marks to US personnel through exchange offices during the three years ended June 30, official finance offices is listed as follows: 1951. During that period EUCOM personnel were paid $669,000,000 in dollar-backed Military Payment Certifi- Army Finance OfficesandChaseBanksales $95,832,511 cates (MPCs), after tax deductions. American Express Company sales ........ 31,024,633 They exchanged almost $127,000,000 of that amount Total:- $126,857,144 for Deutsche marks-an exchange which represented a The approximately $33,000,000 paid out of American direct benefit to the German economy since the exchange pockets for services with dollar-backed MPCs, is shown placed the same amount of American dollars at the by the following breakdown: disposal of the Federal Government for the procurement of needed imports which can be bought only with dollars. Export Taxi service Gales . ......... $19,406,009 Non-duty rail ticket sales ................ 3,893,919 ThEUTSCHE-MARK PURCHASES by Americans in the Telecommunications charges ...... 9,277,585 D period between the German currency reform in Miscellaneous ......... ........... 93,433 June 1948 and June 30, 1951, were made at the official Total:- $32,670,946 The Second Armored Division, Combat Command A's "Choraliers" give church music concert before German Protestants from various churches in Mannheim gathered in chapel at Wartburg Castle. "Choraliers" will make other appearances throughout Germany. (US Army photo) THE COMPTROLLER'S OFFICE emphasized that no Deutsche-mark purchases by EUCOM personnel from authorized European Command exchange offices are charged to occupation costs. Apart from the almost $160,000,000 which benefited the German financial struc- ture, other millions of dollar were contributory factors in the over-all support provided by the presence of Americans in Germany. As an example of the benefits contributed by non- appropriated fund agencies of the US Army in Germany, the European Exchange System has expended more than $33,000,000 in wages to German employees, $17,000,000 through procurement on the German economy and $1,000,000 for construction and renovation. The more than $51,000,000 in payments was made in Deutsche marks, purchased by EES at the official exchange rate. The agency makes payment for such items directly to German employees, vendors and contractors. +END JANUARY 1952
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