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Annex 4 to CFM 3 DECLASSIFIED E. O. 11652, Sec. 3(E) and 5(D) or (E) Dept. of State letter, Aug. 9, 1973 By NLT the , NARS Date 4-22-75 LEVEL or INDUSTRY S. AND us The Problem To determino the excent, 18 anys of the revisions to the Revised Plan for the Bisonal Level of Industry which might be accepted by the U.S. and to determino the U.S. position concerning the levela of industry in the Soviet and French Zones. Discussion The upward revision for the bisonal area of the March, 1946, Level of Industry Plan was made in (a) to adjust for errors in the assumptions on which the original Plan was based, including the assumption that economic unity would be achieved; and (b) to' provide for the rotention Garmany of sufficiont industrial capacity to afford a basis for a contribution to goneral European recovery through substantially greater volume of trade with the rest of Europe than had originally been planned. The Revised Plan was devoloped in stach a way as to ensure that it could be assimilated into a plan for Germany as a shole, and account was takon of removals from the Soviet and Freneh Zones The basio objectives of the original quadripartite plan wore retained. Immediate publication of the Revised Plan was decided upon for the purpose of establishing a firm basis for the listing of plants to be rezoved as reparation, thus giving both Germany and reparation recipients more certain data for future planning. At