The Wilmington morning star., 1947-07-16
POLICY OPENS
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made it plain that America wants
Germany demilitarized perman-
| emily. It said that "there should
be no relaxation of effort to COM
plete and effectively maintain the
| disarmament and standardization
OF Germany"
But it added that, within the
limits of these necessary re-
straints" Germany should be per-
mitted to raise her standard OF
living by development OF her re-
sources and should be aided in
achieving a self-sustainlng eco
nomy.
Backs Policy
Statements on economy and re-
parations in the directive also were
interpreted as putting into force
an American policy expressed at
the Moscow Foreign Minister'S
meeting last March and April:
That the U. s. would not agree
to permit Russia to extract re-
parations goods out of Germany
while the American taxpayer was
obliged to pour in funds to keep
Germany alive.
Keynote of the directive was
contained in the section headed:
Omitted statess policy toward
Germany" which read in part:
1.-The basic interest of the Unit
ed States throughout the world is
Just and lasting peace. Such a
peace a be achieved only if con-
ditions of public order and pros
perity are created in Europe as a
whole. An orderly and prosperous
Europe requires the economic con-
| tributions of a stable and produc-
tive Germany as well as the nee
essary restraints to insure that
Germany is not allowed, to revive
its destructive militarism."
Directs Consultation
Military government leaders
said that a section on recovery
apparently laid the groundwork
for the participation, at least of
western Germany, in the Marshall
plan. This section directed Clay
to consult with other European
countries and international organi-
cations representing such countries
on matters of German production
and trade and ensure that en-
phasis is given, in the selection of
items for export, to goods needed
by European countries for their
economic recovery and rehabili-
tation."
The directive also provided that
funds for German expenditures
should be increased where nee
essary to speed the restoration Of
normal international commercial
relations between Germany and
the rest of Europe and where need
ed to speed the attainment of, a
"self-supporting Germany eco
nomy at an appropriate standard
of living"
The directive contained these
salient points:
Reparations-The U. S. govern
ment does not agree to finance
the payment of ~reparations by Ger
many to other United Nations by
increasing its financial outlay in
Germany or by postponing the
achievement of a self-sustaining
German economy. The U. S. gov
eminent reaffirms the principle
that the proceeds of authorized
exports shall be used in the first
place for the payment of authoriz-
ed imports"
Soviet Practice Hit
{This was interpreted as a re-
statement of U. S. objections to
the Russian practice of taking as
PREPARATIONS huge volumes of man.
ufactured products out of current
German production in their occu-
patton zone while American and
British taxpayers are paying hun
dreds of millions of dollars for
food imports to keep western Ger
many alive).
Socialization-The U. 8. will
"give the German people an OPP
p%ortunity to learn of the princi-
Piles and advantages of free enter
prise" but it will refrain from
interfering in the question of pub
lie ownership of enterprises in
Germany except to insure that
any choice for or against public
ownership is made freely through
normal processes of democratic
government"
Self-government-The U. 8. gov
eminent does not wish to impose
its own historically developed
forms of democracy and social or
~ganization or Germany and be-
lieves equally firmly that no 9th
er external forms should be i'm
posed"
(This was regarded as an alert
firmness against any Communist
pressure on the development of a
future German scate.)
Decartelization-Pending agree
ment within the other occupying
powers, Clay was instructed to
prohibit in the U. S. zone call
cartels and cartel-like organiza-
tons and effect a dispersion of
ownership and control Of German
industry" through the dissolution
of combines and other restraints
of trade.
New Industry Level
Clay said Saturday in Berlin
that American representatives at
conferences with a British group
headed by 1t. Gen. Sir Brian Rob
ertson had agreed on a new level
of industry for the economically
merged zones, terms of which will
be announced tomorrow. Authori-
tative sources here said they ex-
pected the new level would be
based on a II, 900, 00O-ton annual
steel production. The U. s. State
department also has announced
that British and American repre-
sentatives will begin talks within
10 days in Washington on ways of
boosting coal production in the
Ruhr.