Memorandum, Notes on German Rearmament Propaganda, with Related Material

state October 12, 1949 NOTES ON GERMAN REARMAMENT PROPAGANDA Based on information obtained in Europe September-October, 1949 1. Leading Germans are spreading the report that the United States will soon permit the rearmament of Germany. An important German steel manufacturer told an American journalist that high U. S. Army officers and many Sehators favor letting Germany establish an army of 25 divisions, and that this proposal is receiving favorable consideration in Washington. A number of German deputies at Bonn have openly said to Americans that the German government is asking for, and expects to be given participation in MAP; and they have cited as evidence Senator George's recent statement urging German rearmament. Leaders of the German steel and chemical industries have told American visitors that "it would be to America's interest" to let Germany manufacture arms for western Europe." They claim that this view is shared by important American officials. 2. Reports of early German rearmament are given additional weight by certain other developments. British officials in Germany have reported the appearance in a number of places of groups of German veterans, wearing forestry uniforms, carrying wooden sticks in place of rifles, and drilling every weekend, as in the 1920's, Belgian sources report a growing belief that the International Ruhr Authority was deliberately crippled at birth, and will have little real control over German production, owing to meagre budget and weak policy. IRA lacks manpower for first-hand inves- MANONAL AND tigation and must rely on German sources for its data. It is ACOORDS under instructions to ignore minor violations, and will have few SERVICE** facilities for detecting major violations, if the Germans wish to conceal them. There are already signs that IRA will become an early target for German propaganda attacks. It is said in British financial circles that some of the largest steel and chemical plants in Germany have secretly transferred important blocks of shares to American and British interests, which are now aiding the Germans to undermine the Allied policy of maintaing controls over German production. 3. Rumors of impending German rearmament are now appearing in the Communist press of western Europe, and are causing serious concern to informed officials and journalists. The following are verbatim quotes: A Belgian editor: "Americans should realize that in the minds of most Europeans, the moment that Germany is (luislef) fromens slat Mejohns