Evening star., 1945-08-03

lished. Notwithstanding this, how
ever, certain essential central Ger
man administrative departments
headed by state secretaries, shall b,
established, particularly in the field
Of finance, transport, communica.
tions, foreign trade and industry
Such departments will act under thu
direction of the Control Council.
TO- Subject to the necessity fol
maintaining military security, free.
dom of speech, press and religion
shall be permitted, and religious in
stitutions shall be respected. Sub.
ject likewise to the maintenance Of
military security, the formation Of
free trade unions shall be permitted
(b) Economic Principles.
IL. In order to eliminate Ger.
many's war potential, the production
of arms, ammunition and imple-
ments of war as we'll as all types ol
aircraft and sea-going ships shall
be prohibited and prevented. Pro.
duction of metals, chemicals, ma
chinery and other items that are
directly necessary to a war economy
shall be rigidly controlled and re-
stricted to Germany's approved post
var peacetime needs to meet the
objectives stated in paragraph IS
Productive capacity not needed fol-
permitted production shall be re-
moved in accordance with the rep
arations plan recommended by the
Allied Commission on reparations
and approved by the governments
concerned or If not removed shall
be destroyed
H. At the earliest practicable
date, the German economy shall be
decentralized for the purpose OF
eliminating the present excessive
concentration of economic power as
exemplified in particular by cartels
syndicates, trusts and other monop-
olistic arrangements.
13. In organizing the German
economy, primary emphasis shall be
given to the development of agri-
culture and peaceful domestic in
dustries.
IA. During the period of occupa-
ton Germany shall be treated as a
single economic unit. To this end
common policies shall be established
in regard to
(a) Mining and industrial produc-
ton and allocations;
tb) Agriculture, forestry and fish,
ing;
(cD Wages, prices and rationing
(d) Import and export programs
for Germany as a whole:
(e) Currency and banking, CEN
tral taxation and customs;
% Reparation and removal OF
industrial war potential:
tg)"Transportation and commu-
nications.
In applying these policies, ac-
count shall be taken, where appro-
pirate, of varying local conditions.
Is. Allied controls shall be i'm
posed upon the German economy,
but only to the extent necessary:
(a To carry out programs of in
dustrial disarmament and demili-
tarization, of reparations, and OF
approved exports and imports.
I'D To assure the production and
maintenance of goods and services
required to meet the needs of the
occupying forces and displaced per-
sons in Germany and essential to
m q infair in rarr, ANU ouare~~ Nv
ing standards not exceeding the
average of the standards of living
of European countries. European
countries means all European coun-
tries excluding the United Kingdom
and the Union of Soviet Socialist
RepublicS)
(c) To insure in the manner de-
termined by the Control Council the
equitable distribution of essential
commodities between the several
zones so as to produce a balanced
economy throughout Germany and
reduce the need for imports.
I'D To control German industry
and all economic and financial in
ternational transactions, including
exports and imports, with the aim
of preventing Germany from devel-
oping war potential and of achiev-
ing the other objectives named
herein.
(e) To control all German public
or private scientific bodies, research
and experimental institutions, labo-
ratories, etc, connected with eco
nomic activities.
16. In the imposition and MAIN
tenance of economic controls es-
tablished by the Control Council,
German administrative machinery
shall be created and the German
authorities shall be required to the
fullest extent practicable to proclaim
and assume administration of such
controls. Thus it should be brought
home to the German people that
the responsibility for the admins
tration of such controls and any
breakdown in these controls will rest
with themselves. Any German con-
trolls which may run counter to the
objectives of occupation will be pro-
hibited. q
II. Measures shall be promptly
taken:
(a) To effect essential repair of
transport;
(b) To enlarge coal production;
(c) To maximize agricultural out
put; and
Id To effect emergency repair of
housing and essential utilities.
10. Appropriate steps shall be
taken oy the Control Council to
exercise control and the power of
disposition over German-owned ex-
ternal assets not already under the
control of United Nations which
have taken part in the war against
Germany.
10. Payment of reparations should
leave enough resources to enable
the German people to subsist with
out external assistance. In work.
ing out the economic balance of
Germany the necessary means must
be provided to pay for imports ap-
proved by the Control Council in
Germany. The proceeds of exports
from current production and stocks
shall be available in the first place
for fN~ e,,nh