Evening star., 1946-11-03
Clay Sees Necessity
To Raise Standard Of
Living in Reich Soon
BY the Associofsd Press

Gen. Lucius D. Clay, deputy Ameri-
can military governor for Germany,
said today In a radio broadcast to
that the standard Of living
must be raised quickly in Germany
If the Germans are to be won over
to democracy.
Gen. Clay, who plans to fly to the
United States about November 10 to
confer with Secretary Of State
Byrnes on preparation. Of q peace
treaty for Germany, gave a report
on the achievements and problems
of military government in Germany
in a transcription prepared for
over the Columbia Broad
casting System.
Achievements Recounted.
After recounting achievements of
the American military government in
restoring German public services, in
denazification and demilitarization,
In conducting democratic elections
and re-establishing a German press
in the American occupation zone,
Gen. Clay observed:
There are many problems still
ahead. The permanent resettlement
OF $500 900 German expellees from
Czechoslovakia and Hungary is both
an economic and social task. The
minimum German economy must be
restored soon if we are to have any
hope of lasting success in re-educat-
ing the German people to a peace
full philosophy of life and in i'm
planting permanently the demo
cratic processes in which we believe
However, the foundation Is being
laid. Special emphasis is being giver
to the encouragement Of youth &C.
tivities throughout the American
zone. ."
"An possible measures within ths
present resources OF our zone anc
within the limitations Of zona
boundaries are being pushed vigor.
ously to improve the present stand
ard Of living" Gen. Clay continued
every effort is being made to re-
vive German exports to develop dol.
lar proceeds to lower the cost ol
occupation.
Constructive Phase On.
These measures do not mean tha'
there has been, or will be, let up ir
our basic objectives for the destruc'
ton Of Germany's war potential, tht
rehabilitation Of its military might
the Identification Of Germany anf
the punishment of its war criminals
J "It does mean that hand in hane
with the accomplishment Of thess
objectives goes the construction
phase Of our program-the develop
ment of self-responsibility in thu
German people through democratic
processes.
Gen. Clay said the "immediat.
economic conditions" in the Ameri'
can zone were not favorable, du'
largely to a shortage of coal. HI
predicted, however, that the eco
nonic merger with the British zons
would be beneficial.
Discussing four-power occupa'
tional government in Berlin, Gen
Clay said that this had encountered
difficulties but should not be callet
q total failure.
No Central Machinery.
Differences in economic and po
litical thinking have prevented t.
date the establishment Of q tru
quadripartite government for Ger
many a. q whole" he said. Ther
is still no central German govern
mental machinery. Nevertheless
quadripartite government should no
be considered . complete failure.
"The Allied Control Council, tn
co-ordinating committee and NOR
than l16 subcommittee are meet
ing constantly to discuss and solv
problems which pertain to German,
as q whole. Many uniform meas
ures have been enacted. -"
"The representatives Of the foul
powers-Britain, France, Russia ant
the United States-have worked to-
gether now for more than Is months
They have learned to know eacf
other, to respect each other ane
even to understand why patience Il
so necessary in effecting agreement:
for the treatment Of Germany as &
whole. The value Of this association
can not be over estimated. II basic
differences can be resolved at gov.
ernmental level, it promises much
for the future"