Evening star., 1948-10-03
u. ). and Britain Plan
'ERP Scrap Metal Pool
For Western Europe
~ the Assoeio,ed pye.s

BEHLlN, OCG. IA western
European scrap metal pool, operat-
ing under European Recovery pro-
gram guidance. Is being formed to-
day under the leadership of the
United States and Britain.
An important role in the pool was
assigned to Western Germany,
whose huge supplies of surplus scrap
from war damaged cities have long
been q matter of contention be-
tween America and England.
Washington and London an
nounced last night they had settled
their differences over division of
"Bizonia's' scrap and broadened
this with recommendations for the
Western pool.
This plan proposes that the Or
lganization Of Economic cooperation
administration assist In setting up
a scrap committee in Paris. The
United States would be given full
membership, along with the l6 ERP
nations.
Price to BE Decided Later.
Each scrap exporting nation
would deliver estimates on how
much it has available for export
and the committee would make
Recommendations on allocations.
! Britain and the United States
have expressed the hope that 2,00o,-
900 tons of scrap could be removed
from their zones in Germany in
the next year.
The price for this scrap is to be
decided between the United States
and British military governors in
the near future, said Lawrence VIII
kinson, economics advisor to the
United States Commander, Gen.
Lucius D. Clay.
A joint Anglo-American state
ment said Britain had given its
steel industries permission to buy
Immediately 100000 tons OF steel
and iron in Western Germany, at
the same time 225 900 tons had been
set aside for ALLEGATION to other
countries short of scrap, mainly
Italy, Belgium and Sweden.
U. S. Wants Larger Share.
The United States had long con-
tended it was not getting its fair
share of German scrap and was un-
able to fill its huge postwar demand
for steel products.
The United States further COM
planned that Britain removed 1,000,-
900 tons Of scrap from Germany in
the last two years and paid for
only about half OF 1t, claiming the
remainder as war booty" The
joint agreement was designed to
istop this practice, although it per-
mitted further $4,000 tons of free
booty as final payment"
The occupying powers emphasized
that shipments from Germany
would not jeopardize expansion Of
steel production in Germany's
Ruhr, which is a cornerstone Of the
ERP. The State Department as
serted that only excess" scrap
would be exported.
Sales made by German scrap
dealers will be subjected to the reg
ulations OF the Anglo American
joint export-import agency, which
controls all Bizonia's exports and
imports.
According to reliable German re-
ports the Russians have taken far
more scrap out Of Germany than
any other occupying power. They
have sole control over the metal Of
their Eastern Germany occupation
zone and their sector of Berlin.
According to the authoritative
British-licensed newspaper Die
Welt" the Russians now are still
further increasing their scrap ex-
ports with special committees max
ing conflscations for reparations.
Die Welt said this came as q
shock to Eastern Germans. who had
hoped the Russians would leave
these stocks at least for execution
Of the Communist produced two
years economic plan
The newspaper estimated that
since May 1947 the Russians had
taken 100000 tons of scrap out OF
the Eastern sector of Berlin alone.
In addition Die Welt asserted that
Soviet orders issued in mid-l947
had demanded a total OF 2O00, 900
tons of scrap be delivered from Ber-
lin and the five states of the Soviet
zone.
The demand ranged from TOO, 900
tons imposed on Brandenburg to
$4,000 demanded from agricultural
Mecklenburg. However, three Of the
five states and Berlin failed to
fulfill their quotas, Die Welt re-
ported. and thereupon the special
committees were established to force
them.