Evening star. [volume] (Washington, D.C.) 1854-1972, 1947-08-29
Reich Permitted
Steel Output Of
100000 Tons
AneIo-Americon Pact
Envisoges Industry
At Level of 1886
BY the Associated Press

BERLIN, Aug. 29.-Westerr
Germany with an industrial ca
pacity about equal to 1886 was
envisaged today by the United
States and Great Britain in a
new leyel-of-industry plan pro-
viding for annual steel produc-
ton of 10,700, 900 ingot tons.
Under the plan, the United States
and British zones, to relieve the
burden on American and British
taxpayers, would produce Is per cent
more exports than the same areas
did in 1936-three years before Ger
many started World War Ito
bring in $4,000 900, 900 a year.
Ingot tons represent tonnages of
steel IN cast form (ingots) for pater
rolling, or steel for casting in special
shapes. All tonnages given here
are in metric tons of, 1904 pounds.
1916 Accord Held Unrealistic.
The new plan was revision OF
the four-power level-of industry and
reparations agreement on March,
1916. In announcing it, the Amer
lean and British Military Governors
Och. Lucius D Clay and Air Chief
Marshal Sir Sholto Douglas-termed
the low ceiling set in that agreement
"unrealistic
Under the four power plan, the
steel ceiling for all Germany was
100000 tons. Under the. British
American plan, the British and
American zones alone would pro-
duce nearly double that.
Disclosure of the plan followed by
two days the close of a six-day
conference of the United States,
Britain and France in London dur
ing which German industry was
discussed.
In that conference, the French
voiced objections to the plan based
on their fears of Germany with
renewed power for war making. Be
fore the conference, Russia protested
that leaving her out of the talks
violated the 1945 Potsdam agree
ment.
CdpdC1ty SchlLlS NV oCt'
The Clay-Douglas announcement
set no specific ceiling for steel plant
CAPACITY to be retained in the
American and British zones, but
it was reported reliably that this
would be about 100000 tons a
year.
Steel capacity remaining in West
ern Germany after war damage is
1920, 900 tons. Thus, a capacity
of about 100000 tons would still be
available for reparations.
The announcement stated that a
higher production ceiling was neces-
sary to permit the economically
mergedbizonal area to regain eco
nomic health and to allow Germany
to contribute her indispensable
part to the economic rehabil1ta-
ton of Europe as a whole"
Practically all the industries dealt
with were granted increased produc-
ton ceilings. simultaneously the
amount of industrial equipment
available for reparations from the
combined zones was reduced sharply
Basic Plans Not Violated.
Gen. Clay and Marshal Douglas
emphasized that their action was
designed solely to make Western
Germany self-sustaining and TO
harness its potential to work Tor
the recovery of all Europe under
the Marshall Plan" or other similar
cooperative reconstruction efforts.
They asserted that Allied plans
tn eliminate Germany's War-maklng
mower and to provide PREPARATIONS
to qualified claimants would not be
violated.
Consideration has been given
throughout to the necessity for en-
surfing that the bizonal plan can be
assinilated into a plan for Ger
MANY as a whole" they said.
"The offer to the other occupy
ing powers to join the bizonal area
in developing a unified German
economy still stands. The plan has
been developed with due regard tc
the hope that this offer Will be
accepted"
The United States and Britain
merged their occupation zones tol
economic purposes last January
but have been unsuccessful in ef-
forts to get Russia and France te
join them.
France Protested in London.
France objected to the new level
of-industry plan, even before its
publication, in London talks with
American and British diplomats
this week. Just before these talks
started, the Russians protested al
having been left out.
The decision of the United State:
and Britain to 60 AHEAD with the
plan was made public in communi'
que issued in London last night
after the close of the discussions
The Clay-Douglas statement sale
experience has shown the necessity
for revision" Of the 1916 plan be.
cause "the old plan was based or
specific assumptions that have not
been fulflled"-notably that parti-
toned Germany would be united
economically.
The 1916 plan for the whole OF
Germany had provided for retaining
on industrial capacity sufficient tf