Evening star., 1945-03-22
Two Practical Moves
On Repurotions Seen
Balanced German Economy Plan
And Henderson Report Hailed

Balanced German Economy Plan
And Henderson Report Hailed
By Dapid Laurence
Two pieces of news relating to the
prevention of another world warshave
come out in the last "a hours and are
Of far more practical significance than
the wording Of any Dumbarton Oaks
Charter.
One tells us that United States Off
cials are developing a plan different
from that of the Russians or the Brit
ish for the handling of reparations-a
plan to leave Germany with a func-
tioning and wen-balanced economy
after payment of adequate indemnities.
Another report reveals that Leon
Henderson, after making a first-hand
economic survey of occupied Germany,
is advising President Roosevelt that
the plan for cutting Germany into
three different sections under the Brit
ish, American and Russian armies
simply will not work economically and
that only by means of civilian COM
mission representing the Allies and TAX
ing charge of all Germany, superseding
the military commanders. could there
be effective reconstruction.
The interesting comment comes from
administration sources here, moreover,
that some White House advisers fear
that the same chaos and imitation
which killed democratic government in
Germany after the last war once again
will become so ruinous that the Ger
man people will fall back on another
Hitler or Kaiser
Objective Course.
This is an early but nevertheless sub
stantial confirmation Of the implica-
tions that were read into the Yalta
communique by some observers last
month. 1t is a sign that the American
Government is tending naturally and
inevitably toward the objective course
which the United States followed to-
ward the reparations problem after
the World War. 1t is not too much TO
say that if the politicians in France
and Britain had not deliberately mis-
represented the capacity of Germany
to pay reparations and had not exacted
indemnities that simply could not be
paid, there would have been a better
economic foundation for the ill-fated
German republic whose success might
have prevented this war.
Leon Henderson is a realist, and he
is reported to have pointed out that
the German railroads are not built in
three sections but as a unit and that
Germany has to be handled in one over
all management plan or there would be
chaos
Incidentally, the Associated Press, in
cautiously but authoritatively outlining
the newly developed American attitude
toward reparations, says that "the
amount Of reparations Germany will be
able to pay depends directly on how
much industry the Allies decide to
leave to the Germans"
This is the key not only to the future
Of Germany but to the unemployment
problem of Central Europe and to the
conditions of anarchy or stability that
may make all the difference in the
world between long and short terms of
duty for occupying armies, and between
adequate and inadequate food supply to
save human beings from starvation,
and between an era of perennial war
and an era of constructive peace by
means Of economic balance.
An American high official Is given
as authority for the statement that
while everything necessary should be
done to remove the German war po-
tential, there is no excuse for carrying
destructive policy further simply to
stif1e commercial competition.
Formula Thus Far.
The formula thus far worked out Is
to determine how much is needed TO
fulfill the minimum standard of living
necessary for the German nation. The
amount of domestic production and the
imports required to maintain that level
would be figured out. Then the exports
sufficient to yield enough currency to
bring in the essential imports could be
calculated. Any production in excess
of this would go to pay reparations.
This is sensible outline and it re-
mains to be seen how far Britain and
Russia will concur. The insistence OF
Russia on Preparations in kind" which
means slave labor and moving goods
and factories to Russia, could wreck
the whole plan. Unfortunately, the
Yalta Conference agreed to have the
Reparations Commission sit in Moscow
where a rigid censorship exists, and it
will be difficult for the outside world
to know much of what is going on. But
the American reparation experts ap-
parently have their feet on the ground
and are making constructive plans,
which is about the most encouraging
news that has developed since the
Yalta Conference.
Will these views prevail and will the
President back them up among our
Allies? When the answer to this Is
known, the world will know more about
the foundations of peace than it will
learn out of the San Francisco Con-
ference. For out of economic insta-
bility emerge the germs of revolution
and relationships and eventually world
wars
Reproduction Rights Reserved).