Evening star., 1946-11-10
Reich Trade
Parleys Start
On Tuesday
u. S. Conferees Seeking
to Reduce Costs of
Occupation
Bp Garnet D. Horner

By GarneH ID. HOrner
Plans for cooperative action to make
the American and British occupation
zones in Germany more nearly self
supporting are expected to be worked
out in a conference beginning here
Tuesday.
American officials hope to secure
British cooperation in program to
stimulate German exports enough to
reduce drastically the costs of occupa-
ton which are running now to about
$3.50 1000, 900 year for the United States
zone.
This Government already is working
on a program to finance the importa-
ton into Germany of raw materials
which can be processed in the American
zone into finished products for export
that will bring in from four to eight
times the value of the raw materials
The profit from these exports will be
used to pay for essential German i'm
ports, thereby reducing the burden on
the American taxpayer of financing the
importation of such necessities as food
into the United States zone.
Joint Measures.
Recent agreement to unity the Amer
ican and British zones economically
paves the way for joint measures to
speed up the program. For one thing,
factories in the American zone need
more coal from the British zone to step
up production. Other questions to be
discussed here include such things as
procurement of goods abroad for i'm
portation into Germany, ALLEGATION OF
certain export items and division OF
financial responsibility for the tempo
rary German trade deficit.
The problem would be greatly simpl-
fed If Russia and France would agree
to economic unification Of all Germany.
especially since the Russian zone could
provide much of the food needed in the
other zones. Some officials here believe
Russian agreement for economic unity
may be hastened by success OF the Anglo
American efforts to make their zones
more nearly self-supporting.
This view is shared by John H. Hill
dring. Assistant Secretary of State for
Occupied Areas and former head OF the
War Departments Civil Affairs Division.
Gen. Hilldring told The Star that he
believes one of the reasons the Russians
have held out against economic unity
so far is that they have achieved high
er degree of economic self -sufdciency in
their zone. IF we can get the economy
of our zone on status of equality with
the Soviet zone, 2 he added, Il believe
they will be more disposed to join with
lis in economic unity
Declaring that "it Is my business to re-
duce our occupation costs as rapidly as
possible" Gen. Hilldring said I'VE are
concentrating now on getting the smoke
coming from German factory chimneys
so as to get exports rolling"
Heavy Industry Gone.
He emphasized that 1--WE are not spon-
soring the resurgence of Germany as an
economic power, or program to produce
an economic monster" Pointing out
that heavy industries which have been
the mainstay of German economy in the
past are mostly taken away by the de-
mllitarization program, he said it is nee
essary to substitute light, peaceful in
dustries to provide self sustaining eX-
port trade unless the United States wants
to adopt the German people "as perma-
nent wards"
So far the export-import program for
the American zone has involved only
cotton and textiles. The United States
is shipping 100000 bales of cotton into
Germany at cost of about $45, 600 900.
Exports of finished textile products are
expected to return about $100, ,000. 900.
More than 10000 bales of cotton already
have been shipped under this program.
Larger shipments are being made
to Japan under similar program.
With 65O,0O0 bales already shipped, a
total of 100000 bales of cotton. at an
estimated cost of 145000,000, is alo-
Gated to Japan. The Japanese exports
of finished textiles are expected to
return about $325, 100000. 80
Reactivation of Japanese industry
cannot be carried further, Gen. Hill
dring said, until the Allies settle rep
arations problems. s....
However, plans for boosting German
production of other light consumer
goods were launched with a recent
visit to Germany by George Allen,
director of the Reconstruction Finance
Corp, and other officials.
The United States Commercial Corp,
an RFC subsidiary, will finance the
importation of needed raw materials
into Germany through temporary ad-
vances against inventories of the raw
materials. Proceeds from the export
of finished products will be used to
liquidate those advances, with the re-
naming favorable balances available
to pay for such essential imports as
food.
German industries which require only
(see HORNER, Page C-7)