Corrpesondence Between Edwin Pauley and President Harry S. Truman, with Attached Report

Extracted text

OCR Page 1 of 11
THE WHITE HOUSE WASHINGTON the amo JULY SERVIOR GOVERS MEMORANDUM FOR THE PRESIDENT Hoover and Pauley Recommendations on Germany The proposals advanced by Mr. Hoover in his third report ("The Necessary Steps for Promotion of German Exports, So as to Relieve American Taxpayers of the Burden of Relief and for Economic Recovery of Europe") contemplate a fundamental reversal of American political and economic policy in Europe and run counter to the inter- national commitments of this Government undertaken at Quebec, September 15, 1944, and at Potsdam in 1946. Mr. Hoover would: 1. Abandon the "level of industry" concept involved in the agreement of March 26, 1946, signed by Russia, Britain, France and the United States and designed to reduce Germany's economic power and her wer potential; 2. Permit Germany to retain her heavy industry (other than exclusively arms plants) and, with it, her economic ascendancy in Europe and her war potential; 3. Free German industry of controls, except for the general inspection of a control commission "which will see that she does no evil in industry"; 4. Stop the removal or destruction of German plants (except direct arms plants); 5. Emasculate the de-Nazification program and the decartel- lization program, "certain phases of which limit recovery"; 6. By implication, confine any future reparations to current production. Mr. Hoover urges these steps because: "There is only one path to recovery in Europe. That is production The productivity of Europe cannot be restored without the restoration of Germany a.s a contributor to that productivity. "