Dr. Henry A. Kissinger

Associate Professor of Government at Harvard; Executive Director of
the Harvard International Seminar; Director of the Harvard Defense Studies
Program; and Associate Director of the Harvard Center of International
Affairs. Author of *Nuclear Weapons and Foreign Policy* (1957); and *The
Necessity for Choice* (1961).

RHinelander 4-2816

AMERICAN COUNCIL ON GERMANY, Inc.

SUITE 1901 • 8 WEST 40TH STREET
NEW YORK 18, NEW YORK

*DR. GEORGE N. SHUSTER
President

*MRS. JOHN J. McCLOY
Vice President

*CHRISTOPHER EMMET
Executive Vice President

*ERIC M. WARBURG
Treasurer

*JOSEPH KASKELL
Counsel

DR. RUTH BERENSON
Secretary

RUSSELL BOURNE

PROF. KARL BRANDT

DR. JAMES B. CONANT

KLAUS DOHRN

CHARLES H. DUELL

PROF. CARL J. FRIEDRICH

DANNIE N. HEINEMANN

PROF. FELIX E. HIRSCH

BRIG. GEN. FRANK L. HOWLEY

MRS. J. RAMSAY HUNT

MRS. H. V. KALTENBORN

PROF. HANS KOHN

REV. JOHN LA FARGE, S.J.

PROF. CARL LANDAUER

*LOUIS P. LOCHNER

ROBERT W. MINTON

*NORBERT MUHLEN

GEORGE NEBOLSINE

LUDWIG OBERNDORF

FRITZ E. OPPENHEIMER

LITHGOW OSBORNE

HENRY M. PACHTER

MRS. HENRY REGNERY

ROBERT R. RICHARDSON

VICTOR F. RIDDER

GERHART SEGER

BENJAMIN R. SHUTE

DR. HANS STAUDINGER

HANS WALLENBERG

HANS E. WIRSING

PROF. ARNOLD WOLFERS

MARCIA L. KAHN
European Representative

(*Director)

September 11, 1962

Prof. Henry A. Kissinger
Associate Director
Harvard Center for International Affairs
Cambridge, Massachusetts

Dear Professor Kissinger:

I enclose a copy of the biographical notes which appeared under your name in the listing for the Second American-German Conference in Washington. If there are any additions or corrections which should be made, I would appreciate it if you would have your secretary return a corrected copy to me by Friday, September 28. I shall otherwise assume that the notes are satisfactory as they stand.

We must also make final arrangements regarding travel plans. As Mr. Emmet mentioned in his letter to you of July 31, most of the delegation will leave on Thursday, November 15, on the 9:00 p.m. flight of Lufthansa from Idlewild Airport. This plane arrives in Cologne the next morning in comfortable time for delegates to get settled at the Rheinhotel Dreesen before attending Chancellor Adenauer's luncheon. We would like to get as many delegates as possible on this flight, since there is some financial advantage to us in doing so.

If for some reason you cannot be on this flight, please let us know and we will then make other arrangements. The American Council on Germany, of course, will pay your travel expenses; but it would be a great help to us if you would permit your reservations to be handled through our office, whatever your plans.

Thank you for your prompt attention to these matters, and we very much look forward to seeing you again in November.

Enclosure: Biographical notes

Third American-German Conference, Bad Godesberg and Berlin, Germany, November, 1962

American Delegation - Acceptances as of July 16

Jacob Blaustein, Standard Oil of Indiana; Past President, American Jewish Committee

Rep. John Brademas (D., Ind.)

Prof. Zbigniew Brzezinski, Director, Research Institute of Communist Affairs, Columbia Univ.

Leo Cherne, Executive Director, Research Institute of America, Inc.

Dr. James B. Comant, former American Ambassador to Germany

William B. Diebold, Director of Economic Studies, Council on Foreign Relations

Dr. Harry D. Gideonse, President, Brooklyn College

The Hon. Christian A. Herter, former U.S. Secretary of State

John K. Jessup, LIFE Magazine

Joseph Kaskell, attorney; Counsel, American Council on Germany, Inc.

Herman George Kaiser, Oil Producer, Tulsa, Okla.

Label Katz, President, B'nai B'rith

Prof. Henry A. Kissinger, Associate Director, Harvard Center for International Affairs

Louis P. Lochner, former head, Associated Press, Berlin

Senator Eugene McCarthy (D., Minn.)

John J. McCloy, former High Commissioner in Germany

Senator A. S. Mike Monroney (D., Okla.)

J. Walden Moore, Director, Declaration of Atlantic Unity

Prof. Philip E. Mosely, Council on Foreign Relations

Norbert Muhlen, political writer

Prof. Steven Muller, Director, Cornell Center for International Studies

Lithgow Osborne, former U.S. Ambassador to Denmark; Pres., American-Scandinavian Foundation

Prof. James K. Pollack, Chairman, Dept. of Political Science, U. of Michigan, Ann Arbor

Rabbi Joachim Prins, President, American Jewish Congress

Rep. Henry S. Reuss (D., Wis.)

John Richardson, Jr., President, The Free Europe Committee, Inc.

Dr. George N. Shuster, U.S. Representative to UNESCO

Hans Christian Sonne, Committee for Economic Development; National Planning Ass'n.

Shepard Stone, The Ford Foundation

Senator Stuart Symington (D., Mo.)

J. E. Trainer, Executive Vice President, Firestone Tire and Rubber Co.

Prof. Henry Wallich, Yale University; former Economic Adviser to President Eisenhower

Eric M. Warburg, banker; Treasurer, American Council on Germany, Inc.

Langbourne Williams, President, Freeport Sulphur Co.

Tentative Acceptances

The Hon. Dean Acheson, former U.S. Secretary of State

Senator John Sherman Cooper (R., Ky.)

Irving M. Engel, Past President, American Jewish Committee

The Rev. Robert Graham, S. J., European correspondent of AMERICA Magazine

Senator Kenneth B. Keating (R., N.Y.)

Stacy May, Rockefeller Brothers Fund

Senator Hugh Scott (R., Pa.)

Refusals: Frank Altschul; Senator Clifford P. Case; Senator Paul H. Douglas; Senator J. William Fulbright; J. Peter Grace; Senator Roman Hruska; Senator Jacob K. Javits; Senator Henry M. Jackson; Rep. John V. Lindsay; Senator Thruston B. Morton; The Hon. Robert Murphy; Senator Mike Mansfield; Whitney North Seymour; Walter H. Wheeler.

THIRD AMERICAN-GERMANY CONFERENCE

Revised Text of Panel Agendas, as approved by the
Steering Committee

(Note on Procedure: The Chairman of each panel will allot ten minutes to an assigned introductory speaker on each agenda topic, and no more than five minutes for each subsequent speaker. The Rapporteur of each panel will report on the consensus reached on various topics to the final plenary session of the Conference, but names or references to particular speakers will be omitted, in keeping with the unofficial and off-the-record status of the panel discussions).

## Political Panel

1. What effect, if any, will events in Cuba have on Soviet policy toward Berlin and an East German peace treaty?

2. How can the morale of Berlin be maintained and strengthened?

3. Relations between Germany, NATO, and the Captive Countries of Eastern Europe.

4. The problem of an independent and separate NATO or West European nuclear deterrent.

Third American-German Conference, Bad Godesberg
and Berlin Germany, November 1962

American Delegation

November 16, 1962

+ Rep. Leslie Arends, (R.,Ill.)

Jacob Blaustein

Director, Standard Oil of Indiana

Prof. Robert R. Bowie

Director, Havard Center for
International Affairs

Rep. John Brademas (D.,Ind.)

Prof. Zbigniew Brzezinski

Director, Research Institute on
Communist Affairs, Columbia
University

John S. Bugas

Vice President, Ford Motor Co.

Leo Cherne

General Lucius D. Clay

Adviser to President Kennedy
on Berlin

Dr. James B. Conant

former U.S. Ambassador to Germany

+ Senator John Sherman Cooper
(R., Ky.)

+ Rep. Winfield K. Denton (D.,Ind.)

+ Rep. Samuel L. Devine
(R., Ohio)

William Diebold, Jr.

Senior Research Fellow, Council
on Foreign Relations

Roscoe Drummond

syndicated columnist, New York
Herald Tribune

Christopher Emmet

Executive Vice President,
American Council on Germany, Inc.

Irving M. Engel

Senator Clair Engle (D.,Calif.)

+ Berlin only

III. DEUTSCH-AMERIKANISCHE KONFERENZ

Deutsche Delegiertenliste

Stand 16. November 19 62

<table><tr><td>Hellmut Becker</td><td>Rechtsanwalt, Präsident des Deutschen Volkshochschul-Verbandes, Kressbronn</td></tr><tr><td>Kurt Becker</td><td>Redakteur DIE WELT, Hamburg</td></tr><tr><td>Prof. Dr. Arnold Bergstraesser</td><td>2. Vorsitzender der Atlantik-Brücke, Universität Freiburg</td></tr><tr><td>Dr. Kurt Birrenbach, MdB (CDU)</td><td>Vorsitzender des Aufsichtsrates der Thyssen AG für Beteiligungen, Düsseldorf</td></tr><tr><td>Erik Blumenfeld, MdB (CDU)</td><td>Vostandsmitglied der Atlantik-Brücke, i. Fa. Blumenfeld & Co., Hamburg</td></tr><tr><td>Dr. Hans Karl von Borries</td><td>Montagnola/Tessin</td></tr><tr><td>Dr. h.c. Max Brauer, MdB (SPD)</td><td>Mürgermeister a.D., Hamburg</td></tr><tr><td>Dr. Heinrich von Brentano, MdB (CDU)</td><td>Bundesaußenminister a.D., Darmstadt</td></tr><tr><td>Dr. Hendrik George van Dam</td><td>Generalsekretär des Zentralrates der Juden in Deutschland, Düsseldorf</td></tr><tr><td>Prof. Dr. Constantin von Dietze</td><td>Universität, Freiburg</td></tr><tr><td>Dr. Marion Gräfin Dönhoff</td><td>Stellv. Chefredakteur DIE WELT, Hamburg</td></tr><tr><td>Fritz Erler, MdB (SPD)</td><td>Pforzheim</td></tr><tr><td>Dr. Gotthard Freiherr von Falkenhausen</td><td>1. Vorsitzender der Atlantik-Brücke Präsident, Bundesverband des privaten Barkgewerbes, Essen</td></tr><tr><td>Dr. h.c. Otto A. Friedrich</td><td>Vorsitzender des Vorstandes der Phoenix-Gummiwerke AG., Hamburg-Harburg</td></tr><tr><td>Dr. Johann Baptist Gradl, MdB (CDU)</td><td>Berlin</td></tr><tr><td>Karl-Theodor Freiherr von und zu Guttenberg, MdB (CSU)</td><td>Schloß Guttenberg b. Stadtsteinach (fr.)</td></tr><tr><td>Kai Uwe von Hassel (CDU)</td><td>Ministerpräsident von Schleswig/Holstein, Kiel</td></tr><tr><td>Prof. Dr. Max Horkheimer</td><td>Universität, Frankfurt/M.</td></tr><tr><td>Dr. Richard Jaeger, MdB (CSU)</td><td>Vizepräsident des Deutschen Bundestages, Diessen am Ammersee</td></tr></table>

DER REGIERENDE BÜRGERMEISTER VON BERLIN

bittet

Herrn Direktor Prof. Henry A. Kissinger

aus Anlaß

der III. Deutsch-Amerikanischen Konferenz

zu einem Essen am Sonnabend, dem 17. November 1962, 12.30 Uhr, im Rathaus Berlin-Schöneberg, Rudolph-Wilde-Platz, II. Stock, Brandenburghalle.

Willy Brandt

U. A. w. g.: 71 02 61, App. 3566

DER REGIERENDE BÜRGERMEISTER VON BERLIN
SENATSKANZLEI
PROTOKOLL- UND AUSLANDSABTEILUNG

Berlin
Rathaus Schöneberg
Rudolph-Wilde-Platz
Tel.:71 02 61, App.3591

3254

<table><tbody><tr><td>Montag, 19.November 1962:</td><td>nachm.</td><td>frei für evtl. Besuche und Gespräche mit Vertretern der amerikanischen Behörden in Berlin</td></tr><tr><td></td><td>18.40 Uhr</td><td>Abfahrt vom Hotel Berlin Hilton nach Berlin-Charlottenburg, Bismarckstr.34</td></tr><tr><td></td><td>19.00 Uhr</td><td>Auf Einladung des Senats von Berlin: Besuch der Aufführung der Oper "Don Giovanni" von Wolfgang Amadeus Mozart<br>in der Deutschen Oper Berlin<br>in der Pause wird ein Imbiß gereicht</td></tr><tr><td></td><td>anschl.</td><td>Rückfahrt zum Hotel Berlin Hilton</td></tr><tr><td>Dienstag, 20.November 1962:</td><td>9.30 Uhr</td><td>Abfahrt vom Hotel Berlin Hilton nach Berlin-Marienfelde, Marienfelde der Allee 60-80</td></tr><tr><td></td><td>10.00 Uhr bis 11.30 Uhr</td><td>Besuch im Flüchtlingsnotaufnahmelager Marienfelde<br>Begrüssung durch den Leiter der Abteilung IV des Bundesministeriums für Vertriebene, Flüchtlinge und Kriegsgeschädigte, Herrn Ministerialdirigent Senteck<br>Informationsgespräch über die gegenwärtige Flüchtlingssituation<br>Gespräch mit Flüchtlingen; Teilnahme an einer Notaufnahmeverhandlung<br>Stadtrundfahrt durch Westberin<br>unter der Führung eines Referenten des Informationszentrums Berlin</td></tr><tr><td></td><td>anschl. bis gegen 13.30 Uhr</td><td>(die Fahrt beginnt vor dem Flüchtlingsnotaufnahmelager Marienfelde und endet vor dem Hotel Berlin Hilton)</td></tr><tr><td></td><td>nachm.</td><td>frei für eigene Dispositionen; erforderlichenfalls steht Ihnen die Protokoll- und Auslandsabteilung gern zur Verfügung</td></tr></tbody></table>

Ende des offiziellen Programms

Berlin
Rathaus Schöneberg
Rudolph-Wilde-Platz
Tel. 71 02 61 Ext. 3591
3254

Monday,

19 November 1962 : afternoon Open for possible visits and discussions with US-Authorities in Berlin

18.40 hrs. Proceed from Hotel Berlin Hilton to 34 Bismarckstrasse, Berlin-Charlottenburg

19.00 hrs. Attend, at the invitation of the Senate
von Berlin, a performance of the opera "Don Giovanni" by Wolfgang Amadeus Mozart in the Deutsche Oper Berlin
during the interval refreshments will be served

thereafter return to Hotel Berlin Hilton

Tuesday,

20 November 1962 : 9.30 hrs. Proceed from Hotel Berlin Hilton to 6080 Marienfelder Allee, Berlin-Marienfelde

10.00 hrs. until Visit the Marienfelde Refugee Center

11.30 hrs. Welcome by the head of Section IV of the Federal Ministry for Expellees, Refugees and War Invalids, Herr Ministerialdirigent Senteck

Be present at a reception interview with refugees

Informative talk on the present refugee situation

Talk with refugees

thereafter until abt. Tour of West Berlin conducted by an assistant of the Information Center

13.30 hrs. (The tour begins in front of the Refugee Center in Marienfelde and ends in front of Hotel Berlin Hilton)
afternoon Free for own arrangements
if need be the Protocol and External Affairs Department is at your disposal

End of the official program

Report

on the Conditions of the Berlin Economy and
Measures towards its further development

A. Situation of the Berlin Economy

I. General

The Berlin economy is part of the national economy of the Federal Republic. Of Berlin's industry production have been shipped for years

thus a total of
68 % to West-Germany,
12 % to western foreign countries,
80 % to the western world,
2 % to the Soviet Occupation Zone resp.
to the East-Block, and
the balance of 18 % remains in Berlin.

The payment transactions with West-Germany and with foreign countries are in an uncommon relation to the Berlin gross national product. The payment transactions with West-Germany and foreign countries amounted to more than 30 billion DM in 1961. The Berlin gross national product totalled about 13 billion DM in 1961. Payment transactions and gross social product were thus in a relation of 25 : 10. A similar comparison of the Federal Republic would show a relation of 5 : 10. This relation which is five times as high in Berlin between the payment transactions and the gross social product also depicts the high grade of integration of the Berlin economy in the economy of the remaining Federal Area and the western world.

In the goods and services alone the interlacing of the Berlin economy with that of the Federal area has currently considerable increased in the past 10 years: while in 1950 the relation between the deliveries and services of Berlin to the remaining area of the Federal Republic and to foreign countries and the gross social product amounted

to 3 : 10,

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- 2 -

this relation was 7 : 10 in 1961 while the gross social product as well
as the deliveries and services considerably increased at the same time.

In the course of this development the interior structure of the Berlin
economy has considerably changed in the past 10 years.

The Contributions of the Economic Sectors to the
Gross Social Product in the Years 1950 and 1960

- in prices of 1950 -

<table><thead><tr><th rowspan="2"></th><th colspan="2">1950</th><th colspan="2">1960</th></tr><tr><th>million<br>DM</th><th>per<br>cent</th><th>million<br>DM</th><th>per<br>cent</th></tr></thead><tbody><tr><td>Producing sector</td><td>1 560</td><td>40.3</td><td>5 652</td><td>56.0</td></tr><tr><td>incl.: industry</td><td>909</td><td>23.5</td><td>4 451</td><td>44.1</td></tr><tr><td>Distributing sector</td><td>881</td><td>22.8</td><td>1 748</td><td>17.3</td></tr><tr><td>Services</td><td>1 426</td><td>36.9</td><td>2 699</td><td>26.7</td></tr><tr><td>Gross social product</td><td>3 867</td><td>100</td><td>10 099</td><td>100</td></tr></tbody></table>

While in 1950 the share of the producing sectors in the gross social product amounted to about 40.3 %, it had increased by 1960 to 56 %. In this connection it was particularly the share of the industry which increased from 23.5 % to 44.1 %. In these sectors the portion of the gainful workers in the total number of employed persons did not increase to the same extent.

Employment in the Economic Sectors
in the years 1950 and 1960

<table><thead><tr><th rowspan="2"></th><th colspan="2">1950</th><th colspan="2">1960</th></tr><tr><th>1000<br>pers.</th><th>per<br>cent</th><th>1000<br>pers.</th><th>per<br>cent</th></tr></thead><tbody><tr><td>Producing sector</td><td>333</td><td>42.6</td><td>489</td><td>46.7</td></tr><tr><td>incl.: industry</td><td>163</td><td>20.9</td><td>334</td><td>31.9</td></tr><tr><td>Distributing sector</td><td>173</td><td>22.1</td><td>209</td><td>20.0</td></tr><tr><td>Services</td><td>276</td><td>35.3</td><td>349</td><td>33.3</td></tr><tr><td>Total economy</td><td>782</td><td>100</td><td>1047</td><td>100</td></tr></tbody></table>

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- 3 -

This share increased from 42.6% in 1950 to only 46.7% in 1960. This not only reveals an extraordinary growth of the importance of the producing sectors in the overall economical events of Berlin but also a strong increase of the productivity. But also in the other sectors has the productivity considerably increased in the past 10 years. Of the total of growth of the gross social product in the course of the past 10 years only 20% fall to the increase of the number of labor whereas 80% to an increase of the productivity. This result is due to the considerably improved facilities of the Berlin enterprises and to the accessions, and the transfer of labor to fields of higher added values.

## II. The Development since the 13th of August 1961

The 13th of August 1961 signifies a deep incision into the life of Berlin. This is not only perceptible in the many humane fields but it also caused changes in the economic sector. For instance, by the sudden non-appearance of approx. 50 000 East-Berliners, who were working in West-Berlin, and by the cessation of the flow of refugees, the tensions on the labor market which had also been existing in Berlin since 1959 as result of full employment aggravated. The situation on the labor market can essentially be improved only by an immigration of efficient labor from the western part of the Federal Republic. In addition hereto, an increase of the productivity is from now on of greater importance than in the past. This requires a redoubled investment activity. To that effect adequate funds must be available at any time.

But the 13th of August 1961 has also caused a strain on the capital market. Even if it could be overcome quicker this time than in 1959 after the Khrushchev note, particular attention must be given to the availability of capital. It cannot be in the interest of Berlin to obtain additional capital in the first place from public funds although cofinancing from ERP-funds will also in future retain its distinctive significance; the readiness of private investors to invest in Berlin should become more evident. This also for the very reason because it will evince the confidence in a prosperous further development of Berlin, and since moreover private and public funds must be in a sound relation in case of investments. For that reason

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- 6 -

Industrial Turnover 1960/61/62 *)

<table><thead><tr><th rowspan="2">Period</th><th colspan="3">Berlin</th><th>Increase over the<br>year before in %</th></tr><tr><th>1960<br>- in million DM</th><th>1961<br>-</th><th>Berlin</th><th>West-Germany</th></tr></thead><tbody><tr><td>Annual average</td><td>796</td><td>888</td><td>11.5</td><td>7.6</td></tr><tr><td>July</td><td>716</td><td>835</td><td>16.7</td><td>6.2</td></tr><tr><td>August</td><td>811</td><td>920</td><td>13.4</td><td>6.4</td></tr><tr><td>September</td><td>936</td><td>973</td><td>4.0</td><td>4.6</td></tr><tr><td>October</td><td>884</td><td>950</td><td>7.5</td><td>9.1</td></tr><tr><td>November</td><td>898</td><td>929</td><td>3.5</td><td>5.5</td></tr><tr><td>December</td><td>899</td><td>847</td><td>5.8</td><td>0.2</td></tr><tr><td>January</td><td>789</td><td>851</td><td>7.9</td><td></td></tr></tbody></table>

*) incl. excise taxes

In the annual average 1961 as well as in the months of July and August 1961 the increase of the turnovers topped that of the West-German industry. Beginning September, the increase in Berlin remained below the West-German figure. The decrease towards the end of the year which was also noticeable in West-Germany, proved to be heavier in Berlin.

Incoming Orders at the Industry 1960/61/62 *)

<table><thead><tr><th rowspan="2">Period</th><th colspan="3">Berlin</th><th>Increase over the<br>year before in %</th></tr><tr><th>1960<br>(1952 = 100)</th><th>1961<br>-</th><th>Berlin</th><th>West-Germany</th></tr></thead><tbody><tr><td>Annual average</td><td>292</td><td>297</td><td>1.7</td><td>2.2</td></tr><tr><td>July</td><td>277</td><td>264</td><td>4.7</td><td>6.4</td></tr><tr><td>August</td><td>300</td><td>257</td><td>14.3</td><td>8.6</td></tr><tr><td>September</td><td>293</td><td>270</td><td>7.8</td><td>7.2</td></tr><tr><td>October</td><td>321</td><td>295</td><td>8.1</td><td>1.5</td></tr><tr><td>November</td><td>355</td><td>320</td><td>9.9</td><td>1.5</td></tr><tr><td>December</td><td>305</td><td>268</td><td>12.2</td><td>3.3</td></tr><tr><td>January</td><td>295</td><td>258</td><td>12.5</td><td>3.3</td></tr></tbody></table>

*) not including food-stuff and stimulants industry

- 7 -

- 10 -

surplus is not sufficient to balance the loss of population
due to the death rate of at present 15 000. For that reason the
efforts must be intensified to win especially younger people from
West-Germany for Berlin.

The above figures show that on the whole, the economic develop-
ment has also been satisfactory in the second half of 1961. Full
employment was warranted to the full extent all the time. A po-
litically highly important stabilisation factor was thus main-
tained. Nevertheless it is necessary to provide the further econo-
mic development of Berlin with new lasting impulses since the
struggle for Berlin also requires a further growth of the economy
of this city.

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- 11 -

B. <u>Measures for the further development of the Berlin Economy</u>

I. Preliminary remarks

The Senat of Berlin is convinced that decisive economic measures are necessary now, and that the issue of international negotiations on Berlin cannot be waited for. The plans worked out by the Senat, and outlined here below in detail, start from the conception that Berlin does not so much require non-recurring ad-hoc-aids but structural measures of lasting effect.

Under the immediate impression of the events of August 13, 1961, various measures were taken which in the first place are considered more or less time limited aid efforts. They include among others:

1) the general recreation aid of 100 resp. 50 DM;

2) the granting of a family-foundation-loan up to 3 000 DM;

3) the repayment of travel and removal costs for West-German workmen who want to work in Berlin;

4) extension of the wage tax preferences of 20 % to workers who take up an occupation in Berlin after August 12, 1961 for an uninterrupted period of at least three months;

5) the additional appropriation of funds by the Federal Treasurer, the Federal Agency for Employment Exchange and the Unemployment Insurance for both, order financing and special projects;

6) the erection of 4 000 additional apartments for commuters;

7) the Law on Economic Aid of November 8, 1961;

8) a considerable expansion of the Guaranty for Federal Goods.

Further measures have direct effect on the public domain with indirect advantage to the economy of Berlin and its population. These measures, too, fall under the approx. 500 million DM made available by the Federal Government in the Fall of 1961.

In addition to these actions an economic concept is needed according to which the decisive factors of the Berlin economic development can durably be influenced to an extent that the Berlin economy is further strengthened and possibly not stagnating or sliding into the state of a subventioned economy. This is why the viability of

- 12 -

- 12 -

the Berlin economy must be maintained and improved by an increase of its capital power. Within the fields of national and international economy, competitive power can only be preserved and strengthened if Berlin is keeping full pace with the economic growth of the free world. This requires larger investments in Berlin. They decide the economic growth in rate and extent and they are particularly necessary in Berlin for a rationalization resp. for a productivity increase considering the perceptible shortage of labor.

All special measures to be taken for Berlin with these goals must also be oriented to the fact that in economic and financial respect Berlin will stay within the structure of the Federal Republic. For that reason tax preferences which are now deemed necessary for Berlin to a larger extent than in the past must not lead to a proper Berlin tax system. They must rather be set up in a way that the interlacing of Berlin with the economic financial and social systems of the Federal Republic is intensified.

The Senat of Berlin has proposed a number of measures on basis of these aspects. This parcel of Berlin suggestions includes:

1) measures on income policies in a narrower sense and

2) economic measures, particularly for the promotion of the investments and the sale of Berlin products and services.

The first named proposals for income policies which are to conveniently supplement the existing income tax preferences, were submitted by the representatives of the Berlin Senat on January 6, 1962 on the occasion of the meeting of the Cabinet Committee for Economy of the Federal Government (Economic Cabinet). The economic measures stated under 2) were submitted to the Federal Minister for Economy and Chairman of the Economic Cabinet by letter of the Senator for Economy und Credit Affairs dated March 8, 1962. Both groups of measures were then discussed at Bonn on March 22, 1962, at the meeting of the Economic Cabinet together with representatives of the Berlin Senat.

At these discussions the representatives of the Berlin Senat proceeded from the close relation between the "old" proposals of the income policy and the "new" proposals of the investment policy.

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- 13 -

The Senat is of the opinion that an expansion of the income preferences alone, without a vigorous impulse in the field of investments, would hardly lead to a perceptible increase of the economic activity in Berlin. On the other hand it should be borne in mind that for the workers the investment measures will have only secondary effects, and at longer sight; they primarily mean a strengthening of the enterprising economic power. For that reason it is deemed necessary for political considerations that parallel with the investment measures should run measures for income preferences.

Beside the here mentioned, and here below outlined suggestions addressed to the Federal Government, the Senat shall further energetically stand up for the strengthening of the Berlin economy by measures of own competence. In the field of investments, for instance, it shall be endeavored to induce renowned West-German and foreign enterprises to make visible investments in Berlin in order to hereby incite also with the Berlin enterprises the propensity to invest. Financial facilitations shall be made available to the firms for the acquisition and development of industrial areas. In connection with the former functions of Berlin, and at the same time to enliven the services connected with the tourist trade, subsidies shall be given to cover the expenditures of meetings, exhibitions and similar events.

The West-German economy shall be induced to hold, if possible also in Berlin, general meetings, board meetings, balance sheet conferences and general factory-council meetings. To overcome the want of labor the Senat shall promote all measures directed towards retaining in Berlin the people who are working here. To get new workers from West-Germany, constant recuting activities will have to be undertaken. To warrant living quarters for these workers - particularly for families - various steps have already been taken, or are in preparation.

Berlin must not only be developed into a modern industry center but also in continuation of its old tradition it must become, more than it is now, a university and cultural center of international rank.

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Both tasks are tightly connected since only on the substructure of an expanded economy can the tasks of a cultural center be solved. On the other hand a flourishing spiritual life in Berlin will have stimulating effects on the economic activity of the city.

But the development of Berlin in the economic and cultural areas will also contribute to provide our city with new possibilities for international cooperation especially with the developing countries. In this respect Berlin has already many starting points. According to the hitherto gained experience, Berlin should direct its efforts to

1) promote the development of existing institutions for
development aid and

2) attract to Berlin new establishments of the Federal
Government, of European and other international
organizations.

In this connection Berlin's own contribution to the development
aid shall above all be given in the field of education. The Senate
will submit detailed suggestions on this group of questions.

## II. Preferences to become effective by changes of the Income Tax Law, the Law on the Promotion of the Economy of Berlin (Berlin Aid Law) and the Turnover Tax Law

The further development of Berlin to a modern industry center is
definitely depending on the continuation and the intensification
of the investment activities. Precondition for investments is an
adequate offer of capital and impressive attractions which will
call forth an additional demand for capital. For the further
development and the safeguarding of the Berlin economic potential,
workers in ample numbers, and of special ability are needed.

In addition to the measures taken in economic respect after
August 13, 1961, the following suggestions for tax preferences in
Berlin were made to safeguard the economic development:

1) to intensify the investment activity

a) by increasing the private capital supply,

b) by increasing the capital demand,

c) for the promotion of stockkeeping

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2) for an additional promotion of the medium-sized business, including professions.

### ad 1 a) Increase of the Private Capital Supply

The consideration of the measures for an increase of the capital supply in Berlin should start on the supposition that the share of the public funds in long-term credits for investments (including house building) in Berlin is exceptionally high; the Landeszentralbank Berlin estimates this share at 80%; this, however, does not take into consideration the share of private self-financing of the investments. The total Berlin net investments (including house building) of 1961 were financed to about 63% from public funds. Anyway, the margin for increasing investments in Berlin by means of public funds is rather small; the further increase in this way without a simultaneous promotion of private capital investment might finally cause that the entire net investments in Berlin financed on credit basis would have to be borne by public funds. Such a development must be avoided for many reasons, above all that of economic order. For that reason it was proposed to give a strong impulse to private capital investments in Berlin.

Following the good experience made with the § 7-group of the Income Tax Law during the economic reconstruction in the Federal Area it appears promising to set up a similar regulation on basis of the Berlin necessities.

A new § 7 f shall be added to the Income Tax Law:

To make capital investments as extensive as possible, all tax payers in West-Germany and in Berlin investing capital in Berlin shall have the benefit of preferences. These shall permit that for industrial investments and for the installation of cultural facilities a total of 25 % may be deducted and for building purpose in case of interest-free lending 50 % and in case of interest-bearing lending 10 %. The particular appeal lies in the possibility of a deduction prior to striking the balance sheet. From this arrangement can be derived a true tax advantage (tax release) (example of § 7 c Income Tax Law).

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For capital investments for house building, a running period of at least 10 years is proposed; for the other investments an engagement of 4 years. Since it may be assumed that the investors will choose in many cases the indirect channels through a credit institution, this investment element shall also be encouraged.

In negotiations with the Economic Cabinet it was agreed on principle that the new way of providing incitement for capital investments in Berlin shall be approached. Representatives of the Federal Government have furthermore given to understand that for the promotion of tax saving in the case of house building the preference rates might even be increased. Thereupon the Senat has proposed for interest-bearing house building loans a rate of 20 %. Regarding capital investments for industrial purposes, the representatives of the Federal Government express apprehension that an unlimited capital approval in the form proposed by the Senat might lead to misuse and that furthermore the proposed rates of preference might prove insufficient to attract capital to Berlin for these purposes. In view hereof they propose, following the example of the idea of the law governing the saving under the Federal Government's Bonus Scheme to create preferences to small depositers whereby the present limits of preference shall be considerably increased and the period of immobilization be considerably reduced. The representatives of the Senat have on principle accepted the idea of the bonus saving but they lay stress on absolutely maintaining in addition hereto the conception of the unlimited amounts of capital pursuant to § 7 f, which is interesting to earners of larger incomes. These questions shall be discussed in a technical committee established by the Federal Government and the Berlin Senat.

### ad 1 b) Increase of the Capital Demand

In the past three years the depreciation allowances permissible under § 14 of the Berlin Aid Law, have considerably incited investments. The situation, which has changed since August 13, 1961, necessitates that these investments shall now be intensified by increasing the present rate of accelerated writeoff from 75 % to 100 % and that the period of preference be extended from 3 to 4

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years. A pertinent amendment of § 14, section 1 of the Berlin Aid Law was proposed. The increase of preferential depreciations is also necessary to take in the capital investments expected as result of the proposed § 7 f.

At the negotiations the representatives of the Federal Government agreed to this increase of the depreciation preferences. Experience will show whether the proposed regulation will prove to have sufficient animation for the demand of capital.

### ad 1 c) Promotion of Stockkeeping

The same reasons speaking for a promotion of the capital investments in Berlin by special fiscal depreciation allowances would also deem necessary to provide fiscal preferences for capital tied down in the stock-in-trade. With this goal in mind it was proposed to add to the Berlin Aid Law a new § 14 a. The proposed formation of a tax-free reserve was approved on principle by the representatives of the Federal Government. In the negotiations the amount of the reserve was fixed at 15 % of the stocks on the balance sheet date, apportioned over two years.

In addition hereto shall be investigated in what way a stock surplus accruing after a certain deadline can be favored by a higher rate.

### ad 2) Additional promotion of the medium-sized Business including Professions

The above outlined fiscal preferences will also have effect on the medium-sized economy if investments are made. Considering the particular importance of the medium-sized enterprises in the overall economic affairs of Berlin, a further development of the Berlin economy is also depending on the directed strengthening of these circles. It was proposed to further these economic units by a turnover tax preference. This in its conception new proposal was approved by the representatives of the Federal Government. In the negotiations the following preferences were agreed to:

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§ 7 a of the Turnover Tax Law shall be amended to the effect that the exemption for commercial enterprises shall be increased from 12 000 to 30 000 DM, for members of the professions and trade agents from 20 000 to 50 000 DM at a turnover total not to exceed 200 000 DM compared with 120 000 DM up to now.

### III. Measures which can become effective without the amendment of Laws

Beside the preferences discussed under II, a number of suggestions were worked out which can be realized without any amendment of laws. All these measures are still in the state of discussion. They include:

1) The incorporation of the professions in the scheme for granting low-interest and long-term credits out of the ERP Special Account,

2) the broader participation of the Berlin economy in the placing of orders if development aid is granted,

3) the continuation and expansion of the financing of orders of West-German enterprises from the ERP Special Account,

4) the safeguarding of a special preference of Berlin in case of awarding public contracts in West-Germany,

5) increased promotion of the tourist trade in Berlin,

6) establishment of a second additional house-building-program for immigrating persons in employment.

In this connection it should be borne in mind that the Berlin house building will experience a perceptible promotion by the realization of the basic idea of § 7 f outlined under II. Increased efforts should also be made for the reconstruction and repair of the pre-currency reform house. A special attention will in future require the house building of the factories for skilled workers; this, too, will be facilitated by § 7 f.

7) The granting of subsidies from the budget of the Land for a cheaper accommodation of immigrating workers in the Berlin hotel industry.

Reference is furthermore made to the measures stated under I which the Senat shall undertake on its own.

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## IV. Fiscal Measurements for the Promotion of Sales in the framework of the existing Regulation of the Berlin Aid Law

Beside the fiscal promotion measures discussed under II, a number of changes of the turnover tax regulations of the Berlin Aid Law were proposed to promote sales. These measures were already discussed in January with the Federal Departments and laid down in an amendment of the law. In the first place should be mentioned with regard to the position of the Berlin film industry that such parts of the Berlin film industry have been included now which up to now did not enjoy preferences. Considering the particular urgency, this complex is already being discussed, detached from the other amendments, by the Federal Diet. With regard to the turnover tax preferences for the film industry as well as for other production branches which do not sell their products to the Federal Area, but let them on hire or on lease basis to entrepreneurs in the Federal Area, the approval of the Economic Cabinet was given at the meeting held on March 22, 1962.

## V. Income Tax Measures to safeguard the Labor Potential in Berlin

In October 1961 the Senat decided to propose to the Federal Government certain income tax preferences which are to conveniently complete the existing income and wage tax preferences in order to safeguard the labor potential. The original programmed modalities did not find the approval of the Federal Government at the discussions with the Economic Cabinet held on October 18, 1961 and January 6, 1962. In view of this fact a committee established by the Senat for the preparation of further negotiations which has worked out alternative suggestions.

In the course of the discussions at the Economic Cabinet held on March 22, 1962, agreement was reached on the following principles:

The preferential arrangements shall be clad in the form of wage tax (evt1. income tax) deduction claims. If the taxes payable of the individual tax payer do not come up the amount of the proposed preference, adjustment shall be effected by cash payment through the employer who on his part shall be permitted to charge up the

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paid amounts against the retained wage taxes. This system provides
for the first time the possibility that the 470 000 Berlin wage
earners who up to now have not earned an assessable income, and for
that reason did not share in the income tax preferences, can be
included in the new income tax preference scheme, and they thus
increase their current earned income. Full accord exists between the
Federal Government and the Senate on the preferential treatment of
this category of persons. Furthermore shall be achieved that to a
certain extent such categories of persons shall be given the
benefit of the new income tax preferences who already have
participated in the existing 20 % tax preference. To what extent
the new income tax preferences shall be made available to medium
and higher income groups will largely depend on the result of the
deliberations as to how far the Federal Government can bear this
accruing tax deficit. The amount of the tax deficit depends on
the per-cent-rates and on the income groups considered for the
additional preferences. Following the original proposals of the
Senate it is intended to start from a basic rate of about 5 % of
the gross wages. This rate shall gradually decrease with the
increasing incomes to 1 %. The question is still open at which
income group the additional preferences shall stop.

Such a system would warrant that by the new income preference
arrangement the hitherto not benefitting categories of persons
as well as the medium income earners shall additionally be
assisted. This result would meet the necessities arising from
the labor potential situation in Berlin.

Berlin, March 26, 1962

The Senator for Economy and Credit Affairs

Schiller

Congressman Leslie C. ARENDS

Republican Congressman from Illinois, serving his fourteenth consecutive term. Actively engaged in banking and farming since 1920. Delegate to NATO Parliamentarians' Conference, Paris, November 1962.

Jacob BLAUSTEIN

Co-founder of American Oil Company, and President, 1933-37. Now a Director of Standard Oil Company (Indiana) into which American Oil was merged. Past President, American Jewish Committee. Consultant to American Delegation to San Francisco Conference, 1945 (for organization of the United Nations); member of U.S. Delegation to tenth session of U.N. General Assembly.

Dr. Robert R. BOWIE

Director, Center for International Affairs, and Dillon Professor of International Relations, Harvard University. Assistant Secretary of State, 1953-57, where he was Director of the Policy Planning Staff and representative of the State Department on the Planning Board of the National Security Council. On the staff of General Lucius Clay, Deputy Military Governor for Germany; 1950-51, General Counsel and Special Adviser to John J. McCloy, High Commissioner to Germany. Author of many articles in the fields of law and foreign affairs.

Congressman John BRADEMAS

Democratic Congressman from Indiana since 1958. A member of the subcommittee visiting the Soviet Union to study the Soviet educational system in 1961. Serves on the House Education and Labor Committee, the General Education Subcommittee and the Special Subcommittee on Education.

Dr. Zbigniew BRZEZINSKI

Director, Research Institute of Communist Affairs; member of the faculty, Russian Institute, Columbia University. Delegate to Third International Sovietological Conference, Japan, 1960; Wilton Park Conference on "Coexistence", England, 1962; Vice-Chairman of American delegation to American-Polish Round Table, Warsaw, Poland, May, 1962. Author of many books and articles, including *The Permanent Purge - Politics in Soviet Totalitarianism (1956); The Soviet Bloc - Unity and Conflict (1960)*; and *Ideology and Power in Soviet Politics (1962)*.

John S. BUGAS

Vice President, International Group, Ford Motor Company. Directs Ford's import and export operations and has charge of relations with overseas branches, subsidiaries and associated companies. Formerly in charge of Ford's labor relations. From 1935 to 1944 he was a special agent of the FBI.

Leo CHERNE

Since 1936, co-founder and Executive Director, Research Institute of America, an economic research and management advisory organization. Active Chairman of the Board of the International Rescue Committee since 1952. Decorated by the German Federal Government for his work to assist East German refugees. Author, lecturer, government advisor, and a sculptor of note.

General Lucius D. CLAY

President Kennedy's Personal Representative on Berlin, with the rank of Ambassador. Former U.S. Military Governor of Germany during the Berlin airlift. Former Deputy Director for War Mobilization and Reconversion. Appointed Deputy Military Governor of U.S. Zone of Germany (1945) and Commander in Chief of U.S. forces in Europe (1947). Received the Distinguished Service Medal three

times, in addition to numerous other American and foreign decorations, honorary degrees and awards. Chairman of the Board of Continental Can Company since his retirement from the Army in 1949.

### Dr. James B. CONANT

U.S. High Commissioner to Germany, 1953-55; and first U.S. Ambassador to Federal Republic of Germany, 1955-57. Chairman of National Research Committee during World War II, and played a key role there in development of the atomic program. President of Harvard, 1933-53. Since retirement from government service, he has concentrated on American education in the elementary and high schools. Author of numerous books, including: *Science and Common Sense* (1951); *Modern Science and Modern Man* (1953); *Education and Liberty* (1953); *The Citadel of Learning* (1956); *Germany and Freedom* (1958); *The Child, the Parent and the State* (1959); *Education in the Junior High School Years* (1960).

### Senator John Sherman COOPER

Republican Senator from Kentucky, presently serving his fourth term in the Senate. Headed postwar reorganization of judicial system in Bavaria. Member of U.S. delegation to fourth, fifth and sixth sessions of U.N. General Assembly, 1949-51; Ambassador to India and Nepal under President Eisenhower, 1955-56; Congressional Advisor to U.S. Delegation to UNESCO Conference, Paris, 1958. Member of House Committees on Agriculture and Forestry, Public Works, and the Select Committee on Small Business.

### Congressman Winfield K. DENTON

Democratic Congressman from Indiana. Delegate to NATO Parliamentarians Conference, Paris, 1962. Served in both World War I and World War II. Presently serving his sixth term in Congress.

### William DIEBOLD, Jr.

In charge of economic studies for the Council on Foreign Relations. Served during the war in the Office of Strategic Service; and in the Division of Commercial Policy of the Depart-

ment of State, 1945-47. Author of *New Directions in our Trade Policy* (1941); *Trade Payments in Western Europe* (1952); and *The Schuman Plan* (1959).

## Senator Thomas J. DODD

Democratic Senator from Connecticut since January, 1959. Served two terms in the House of Representatives. From 1938 to 1945, special assistant to the Attorney General in the Justice Department; Executive Trial Counsel under Justice Jackson at Nuremberg Trials. Member of Senate Foreign Relations, Judiciary, and Aeronautical and Space Sciences Committees, and vice chairman of the Internal Security Subcommittee. Author of *Freedom and Foreign Policy*.

## Roscoe DRUMMOND

Author of the syndicated column "Washington" which appears in the *N.Y. Herald Tribune* and over 150 newspapers in the United States and abroad. Served for twenty-nine years with the *Christian Science Monitor*; Joined *Herald Tribune* in 1953 as Chief of the Washington Bureau.

## Christopher EMMET

Executive Vice President, American Council on Germany. Founder and Chairman, American Friends of the Captive Nations. A founding member of the Committee to Defend America by Aiding the Allies, 1939; and Vice President of France Forever during the war. Moderator of Foreign Affairs Round Table since 1942, one of America's oldest radio forums. A Director of the International Rescue Committee and Freedom House; member of the Council on Foreign Relations. Author of numerous writings on foreign policy.

## Irving M. ENGEL

President, American Jewish Committee, 1954-59. A leader of the current reform movement of the Democratic Party in New York State. Lawyer, author and lecturer. Expert on real estate and tax law; author of *Income Taxes and Real Estate*.

- 5 -

## Senator Clair ENGLE

Democratic Senator from California. Served in the House of Representatives for seven terms; elected to Senate in 1958. Member of Democratic Legislative Review Committee, Committee on Interstate and Foreign Commerce, Select Committee on Small Business, and the Armed Services Committee.

## Dr. Harry D. GIDEONSE

President, Brooklyn College of the City University of New York, since 1939. President of Freedom House; member of the Council on Foreign Relations. Author of many books, including: *Organized Scarcity and Public Policy* (1939); *The Economic Foreign Policy of the U.S.* (1953); and *On the Educational Statesmanship of a Free Society* (1959).

## Rev. Robert A. GRAHAM, S.J.

Associate Editor of AMERICA, National Catholic Weekly Magazine. Member of U.S. Commission for UNESCO. Presently in Europe on a grant from the Rockefeller Foundation, doing a study of the Papacy in International Affairs. Author of *Vatican Diplomacy* (1959) and numerous pamphlets on Peace and the United Nations.

## Congressman Wayne L. HAYS

Democratic Congressman from Ohio, now serving his seventh term. President of NATO Parliamentarians' Conference, 1956-57. Former teacher of History.

## The Hon. Christian A. HERTER

Secretary of State under President Eisenhower, 1959-1961. Congressman from Massachusetts, 1943-53, where he was a member of the Foreign Relations Committee and Chairman of the Herter subcommittee which laid the foundations for the Marshall Plan. Governor of Massachusetts (1953-57). Under-Secretary of State under John Foster Dulles (1957-59). Chairman, the Atlantic Council of the

United States; and a Trustee of the World Peace Foundation, among
other activities. Awarded the Grand Cross First Class of the
Order of Merit (Federal Republic of Germany) 1961.

John K. JESSUP

Chief Editorial Writer, LIFE Magazine. Occupied major edit-
orial posts on TIME and FORTUNE magazines. He has been with Luce
publications since joining the staff of FORTUNE Magazine in 1935.

Senator Jacob K. JAVITS

Republican Senator from New York since 1956. Served four
terms in the House of Representatives (1947-54). Attorney General
of the State of New York, 1954-56. Assistant to the Chief of
Operations of Chemical Warfare during the war. Member of Senate
Committees on Banking and Currency, Government Operations, Labor
and Public Welfare and Small Business. Author of *Discrimination
U.S.A.*

Herman George KAISER

Oil producer, Tulsa, Oklahoma. Came to United States in 1940; became a citizen in 1945. Executive Vice President of Emsa-Werke, Rostock, Germany, 1933-38. Attorney, Supreme Court of Berlin, 1929-1933. Doctor of Jurisprudence, University of Frankfort.

Joseph KASKELL

Attorney associated with Newman, Blue, Rich, Krinsly & Katz;
Counsel, American Council on Germany. Member of the Board, American
Association for a Democratic Germany, 1944-50. Representative of
"Deutsche Blätter" 1943-45. Author of numerous financial and legal
articles in English and German.

Senator Eugene J. McCARTHY

Democratic Senator from Minnesota since 1958. Formerly taught Economics and Sociology. Served five terms in the House of Representatives before election to the Senate. Member of the Senate Finance, Agriculture and Forestry Committees. Author of *Frontiers in American Democracy* (1960).

The Hon. John J. McCLOY

Advisor to President Kennedy on Disarmament, since 1961; Chairman, General Advisory Committee on Disarmament. U.S. High Commissioner for Germany, 1949-52. President, International Bank for Reconstruction and Development, 1947; Chairman, Chase Manhattan Bank, 1953-60. On the board of many of the most prominent business corporations and philanthropic organizations in the United States. Recipient of numerous honorary degrees and awards, including the Grand Cross of the Order of Merit of the Federal Republic of Germany.

Walden MOORE

Director, Declaration of Atlantic Unity since 1954. Former Professor of Government and International Relations. Secretary and Executive Director, Atlantic Union Committee, 1948-53. Delegate to all seven NATO Parliamentarians' Conferences, Paris, 1955-61.

Congressman Thomas E. MORGAN

Democratic Congressman from Pennsylvania since 1944. Chairman, House Foreign Affairs Committee. Delegate to NATO Parliamentarians' Conference, Paris, 1962.

Dr. Philip E. MOSELY

Principal Research Fellow, Council on Foreign Relations, since 1955. Director, Russian Institute, Columbia University, 1951-55. Adviser to Secretary of State Hull at Moscow Conference, 1943; U.S. delegate to Potsdam Conference, 1945. Author of *Russian Diplomacy and the Opening of the Eastern Question in 1838 and 1839; The Kremlin and World Politics* (1960); and numerous articles.

## Norbert MUHLEN

Author, foreign correspondent and syndicated columnist. A director of the American Council on Germany. Now a U.S. citizen; forced to flee Germany in 1933 because of his opposition to the Nazi regime. Author of *Schacht, Hitler's Magician* (1935); *The Return of Germany* (1953); *The Incredible Krupps* (1960); *The Survivors: A Report on the Jews in Germany Today* (1962); and other books.

## Dr. Steven MULLER

Director, Cornell Center for International Studies, Cornell University. Associate Professor of Political Science. Rhodes Scholar at Oxford University, 1951. Author of *Documents in European Government*, and numerous professional articles and papers.

## Dr. James K. POLLOCK

James Orin Murfin professor of Political Science, University of Michigan. A director, Governmental Affairs Institute, since 1950. Special Advisor to U.S. High Commissioner in Germany, 1950, and to American Military Governor in Germany, 1945-48. Recipient of U.S. Medal for Merit for work in Germany during occupation; and of the Grand Cross of the Order of Merit of the Federal Republic of Germany. Author of numerous books and articles, including *Germany in Power and Eclipse* (1952); and *German Democracy at Work* (1955).

## Dr. Joachim PRINZ

National President, American Jewish Congress since 1958. Rabbi of Temple B'nai Abraham in Newark, largest Jewish congregation in New Jersey. Rabbi in Berlin from 1925 to 1937 when he was expelled from Germany by the Nazis after repeated Gestapo arrests for his outspoken opposition to the regime. Author of *We Jews*.

## Congressman Henry S. REUSS

Democratic Congressman from Wisconsin since 1955. Chief of Price Control Branch of U.S. Military Government in Germany, 1945; general counsel to the Marshall Plan in Paris, 1949. Member of the House Committees on Banking and Currency, Government Operations, and the Joint Economic Committee.

John RICHARDSON, Jr.

President, The Free Europe Committee, a non-profit organization which operates Radio Free Europe and works in support of freedom for the captive countries of East-Central Europe. Former President, International Committee. A director of the Foreign Policy Association and a member of the Council on Foreign Relations.

Congressman Herman T. SCHNEEBELT

Republican Congressman from Pennsylvania since 1960. Congressional Advisor to the GATT conferences in 1961; attended important international conferences on tariffs and trade in Paris, Rome and Bonn. Member of the House Ways and Means Committee; has also served on the Public Works and Banking and Currency Comittees.

Dr. George N. SHUSTER

U.S. Representative on Executive Board of UNESCO since 1958. President Emeritus and Assistant to the President, University of Notre Dame. President, Hunter College of the City of New York (1939-60). Land Commissioner for Bavaria (1950-51). A director of the National Educational Television and Radio Center, and a trustee of the Carnegie Endowment for International Peace, among other organizations. Author of numerous books and articles, including *Religion Behind the Iron Curtain* (1952); *Education and Moral Wisdom* (1960); and *The Ground I Walked On* (1961).

Hans Christian SONNE

President, South Ridge Corporation; Chairman of the Board of Trustees, National Planning Association. Vice Chairman, National Commission on Money, and a Trustee of the Committee for Economic Development and the Twentieth Century Fund. Author of numerous books, articles and studies in the economic field.

-11-

## Shepard STONE

Director, International Affairs, The Ford Foundation. With *The New York Times*, 1934-42, and 1946-49. U.S. Army, 1942-46; served with John J. McCloy, U.S. High Commissioner for Germany, 1949-52, first as special consultant, then as Director of the Office of Public Affairs. Consultant, U.S. Arms Control and Disarmament Agency, Washington, 1961. Author of *Shadow Over Europe* (1938).

## Congressman Homer THORNBERRY

Democratic Congressman from Texas since 1948. Member of the House Rules Committee. Resigned as District Attorney in Texas, 1942, to volunteer for service in Armed Forces in World War II; discharged, 1946. Delegate to NATO Parliamentarians' Conference, Paris, 1962.

## James E. TRAINER

Director since 1942, and Executive Vice President since 1954, of the Firestone Tire and Rubber Company. Assistant to Rubber Director of War Production Board during World War II; cited twice by Army Ordnance Department for distinguished service to the war effort.

## Dr. Henry C. WALLICH

Professor of Political Economy, Yale University. Former Assistant to the Secretary of the Treasury; Economic Advisor to President Eisenhower, 1959-60, and a member of Anderson-Dillon mission to Germany, autumn, 1960. Author of *Mainsprings of German Recovery*.

## Eric M. WARBURG

Banker; President, E.M. Warburg & Co., Inc., New York; partner of Brinckmann, Wirtz & Co., Hamburg. A naturalized U.S. citizen; served with U.S. Army Air Force, 1942-46. Member of Council on Foreign Relations. His decorations include the French Croix de Guerre, and the Legion of Merit.