Evening star., 1946-09-06

ing, to build up their industries for
peaceful purposes.
That was the principle OF repa-
rations we agreed to at Potsdam.
And the United States will not
agree to the taking from Germany
of greater reparations than was
provided by the Potsdam Agree
ment.
The carrying out Of the Potsdam
Agreement has, however, been OBJ
structed by the failure OF the Al
lied Control Council to take the
necessary steps to enable the Ger
man economy to function as an
economic unit. Essential Central
German administrative departments
have not been established, although
they are expressly required by the
Potsdam Agreement.
The equitable distribution of es-
sential commodities between the
several zones, so as to produce a
balanced economy throughout Ger
many and reduce the need for i'm
ports, has not been arranged, al
though that, too, is expressly re-
quired by the Potsdam Agreement.
The working out of a balanced
economy throughout Germany to
provide the necessary means to pay
for approved imports has not been
accomplished, although that, too,
is expressly required by the Potsdam
Agreement.
The United States is firmly Of the
belief that Germany should be ad-
miniStered as an economic unit, and
that zonal barriers should be COM
pletely obliterated 50 far as the eco
nomic life and activity in Germany
are concerned.
Barriers Hard to Surmount.
The conditions which now exist In
Germany make it impossible for in
dustrial production to reach the
levels which the occupying powers
agreed were essential for minimum
German peacetime economy. Obvi-
ously, If the agreed levels of indus
try are to be reached, we cannot
continue to restrict the free ex-
change OF commodities, persons and
ideas throughout Germany. The
barriers between the four zones Of
Germany are far more difiicult to
surmount than those between nor
NAL independent states.
The time has come when the zonal
boundaries should be regarded as
defining only the areas to be oc-
cupied for security purposes by the
armed forces OF the occupying pow
erS, and not as self-contained eco
nomic or political units.
That was the course of develop
ment envisaged by the Potsdam
Agreement, and that is the course
Of development which the American
Government intends to follow to the
full limit Of its authority. 1t has
formally announced it is its inten-
ton TO unity the economy of its
own zone with any or all of the
other zones willing to participate in
the unif1cation.
So far, only the British govern
ment has agreed to let its zone par
ticipate. We deeply appreciate their
cooperation. OF course, this policy
of unif1cation is not intended to ex-
clude the governments not now will
ing to join. The unification will be
open to them at any time they wish
to join.
Common Financial Policy Essential.
We favor the economic unification
Of Germany. If complete unification
cannot be secured, we shall do every
thing in our power to secure the
maximum possible unification.
Important as economic unification
is for the recovery Of Germany
and Of Europe, the German people
must recognize that the basic cause
Of their suffering and distress Is
the war which the Nazi dictatorship
brought upon the world.
But Just because suffering and
distress in Germany is inevitable
the American Government Is un-
willing to accept responsibility for
the needless aggravation Of eco
nomic distress that Is caused by the
failure Of the Allied Control Coun-
Gil to agree to give the German
people a chance to solve some OF
their most urgent economic prob
lens.
So far as many vital questions
are concerned, the Control Council
Is neither governing Germany non
allowing Germany to govern itself
A financial policy Is essential fol
the successful rehabilitation OF Ger.
many. Runaway imitation accom-
panied by economic paralysis Is al.