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(CF No. 3(Revised) 5 ARCHIVES S. "NATIONAL AND TROMAN RECORDS German a Thew have resisted in renovals of a SERVICE" capital equiphent from Germany by raising the permitter! level of industry. They have been reluctant to turn over responsibilities to the German people and have insisted on an exaggerated degree of decentralization of power in both the economic and political spheres. They have espoused international management of industries, rather than simply inter- national supervision over the distribution of key Euhr products. Aside from their interest in maximizing exports of coal from Gormany, they have tended to brake the rate of German economic recovery. Although favorable in principle to regaration from current output, the French have not vigor- cusl; deranded it in practice, apparently for fear that it would moan the retention of nore industrial plant and coal in Germany. The Sevict Union has brought both economic and ;oolitical institu- tions within its zone of occupation to a large extent in conformity with the Soviet pattern. It has enforced drastic measures of agrarian reform and socialization, although with the sanction of ostensible popular ap- proval. Under the cover of reparation, it has taken over the most im- portant industrial plants of its zone and organized them in a number of Soviet corporations through which it evidently intends to dominate the ecoriomy and extract reparation from current output in considerable volume. Because of its own war losses, its limited industrial capacity, and its desire to retain an economic grip on Germany, it attaches great importance to a large volume of reparation from Germany. Although riginally interested in enforcing sharp reductions -in Corman industrial capacity, it was willing at the boscow session of the Council of Foreign linisters to increase sub- stantially the level of industry in return for reparation from current output. The Soviet Union has always pnid lip service to the principle of German economic and political unity and would, in fact, benefit from such

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    "ocrText": "(CF No. 3(Revised)\n5\nARCHIVES S. \"NATIONAL AND\nTROMAN\nRECORDS\nGerman a Thew have resisted in renovals of\na SERVICE\"\ncapital equiphent from Germany by raising the permitter! level of industry.\nThey have been reluctant to turn over responsibilities to the German\npeople and have insisted on an exaggerated degree of decentralization\nof power in both the economic and political spheres. They have espoused\ninternational management of industries, rather than simply inter-\nnational supervision over the distribution of key Euhr products. Aside\nfrom their interest in maximizing exports of coal from Gormany, they have\ntended to brake the rate of German economic recovery. Although favorable\nin principle to regaration from current output, the French have not vigor-\ncusl; deranded it in practice, apparently for fear that it would moan\nthe retention of nore industrial plant and coal in Germany.\nThe Sevict Union has brought both economic and ;oolitical institu-\ntions within its zone of occupation to a large extent in conformity with\nthe Soviet pattern. It has enforced drastic measures of agrarian reform\nand socialization, although with the sanction of ostensible popular ap-\nproval. Under the cover of reparation, it has taken over the most im-\nportant industrial plants of its zone and organized them in a number of\nSoviet corporations through which it evidently intends to dominate the\necoriomy and extract reparation from current output in considerable volume.\nBecause of its own war losses, its limited industrial capacity, and its\ndesire to retain an economic grip on Germany, it attaches great importance\nto a large volume of reparation from Germany. Although riginally interested\nin enforcing sharp reductions -in Corman industrial capacity, it was willing\nat the boscow session of the Council of Foreign linisters to increase sub-\nstantially the level of industry in return for reparation from current\noutput. The Soviet Union has always pnid lip service to the principle\nof German economic and political unity and would, in fact, benefit from\nsuch"
}