Evening star., 1947-06-22
Capitalism Socialism
5-Year Truce Reported
Proposed for Germany
BY ihs As.oeiatsd Press

BERLIN, June 21.-A high Amer
lean source today informally pro-
posed flve-year political truce
between capitalism and socialism in
Germany as a step toward getting
this economic heart Of Europe back
into operation.
The source, who requested that he
not be directly quoted, revealed that
top-level American officials have
sounded out British military gov
ernment chiefs on such a proposal.
The American thesis is two-fold:
One, that attempts to socialize and
nationalize disrupted German in
dustry are hampering recovery in
that management has no incentive
to bring about economic recovery;
and, two, that needed American
private capital will not invest in
'nationalized" industries which can
not be backed by responsible CEN
tralized government.
Outline of Proposal.
The proposal roughly goes like
this as outlined by the American
source:
Announce to bizonal Germany
(and other zones If they care to
join) that all industrial holdings in
Germany will be frozen for a period
of five years in their present state.
Largely this state would be one
of a trusteeship, in that military
government largely controls such
basic industries as coal, steel, etc.
The Germans would be told that
at the end of the five-year period
they would be free to decide for
themselves whether they want to
socialize their industries or not.
The Germans would then have
the incentive of working to put
their industries back on their eco
nomic feet with the knowledge that
they would work unhampered for
five years, at the end of which time
they would be free to decide for
themselves, according to American
thought
British-U. s. Ideas Conflict.
At the present time, the British
insistence on Matchmaking indus
tries in Germany has come into
direct conflict with American ideas
of free enterprise. The resulting
conflict and uncertainty is doing
much to retard recovery and make
the British American import
plan a success, according to Ameri-
can sources.
1t is felt by those proposing the
political truce" plan that it will
bring about a cession of this con-
fiict without sacrificing any of the
political beliefs of either nation
and at the same time allow the
Germans, British and Americans
to concentrate on increasing pro-
duction.
1t is also felt by the Americans
concerned that such truce would
fit into the Marshall plan for
bringing about economic stability
and recovery in Europe in which
Germany must be a full partlci-
pant.
Question in Unofficial Status.
British sources refused comment,
pointing OUT tndt no 1OIllldl pio-
posals had been made and that the
whole question was still in an un-
official status.
The authoritative sources said
the Chase National Bank officials
headed by Winthrop w. Aldrich,
who recently visited Germany, in
dicated willingness to make private
loans on the condition any concern
receiving a loan could be held re-
sponsible in a court of law.
military government cannot
be sued or held responsible for
its actions in regular court of
law)
Loans might even be made to
socialized industries If such pro-
gram were backed and supported
by strong and responsible central
government, according to these
sources, but since such a govern
ment is remote under present con-
ditions, this possibility cannot be