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(a) The new duplication of effort, between the French and
German steel industries must be avoided.- Considerations of
strategic sáfety, both in reference to the German and the Russian
military threat, force us to concentrate the European steel
industries at the point where the military risk is the smallest:
behind the French defense system. This means that we must use the
ERP program in order to help the French steel industry to expand,
at the expense of the planned increase of the German steel industry.
(b) Consideration must be given to the fact that the French
industry suffered from a shortage of workers which gave the Germans
a marked adyantage that is reflected in the figures of steel
production. For this reason, migration of German labor to
Lorraine must be encouraged by all means, which will, at the
same time, ease the pressure of population in the Ruhr.
(c) To prevent both a revival of German militarism and
the seizure of objects of high military value by the Russians,
German steel production must not be allowed to exceed the level
it has reached at present. Instead, we should encourage by all
means, the establishment of "finished goods industries" in the
German area adjacent to the belt of heavy industries in Lorraine,
Luxembourg and Southern Belgium. This area is marked, roughly,
by the cities of Trier, Mainz, and Bad Homburg in the North,
Hanau, Darmstadt and Heidelberg in the East, and by a line
running from Heidelberg through Karlsruhe in the South. This
space would include most of the Palatinate, which is already
conspicuous for its precision industries and would comprise a
series of important industrial centers such as Wiesbaden,
Frankfurt, Darmstadt, and Mannheim, where all types of light
and medium industries are already flourishing at present. This
entire area could finally be developed into one single giant
city which, in connection with the French and Benelux territories
in the rear, could form the industrial heart of Europe.
(d) The role of the Ruhr should be restricted chiefly to
the production of coal which must be encouraged by all means and
7. It would appear from newspaper reports that the French steel
industry under strong U.S. pressure might be prepared to accept
some compromise that would give it a large share in the control
of the Ruhr coal production. Yet such decisions of individual
groups that seek their own economic advantage must not deflect
us from the line which we find advisable for ourselves.
8. According to the Military Government Guide "Organization of
the Iron and Steel Industry of Enemy Europe, 11 of March 1945, p.125,
the Reich, in 1943, produced 22.180 million tons of steel while
France produced only 5 millions. It must be borne in mind, however,
that the production during the war was dependent on political
factors such as the allocation of labor, including slave labor,
and thus gives no real picture of the otentialities of the 2
countries. Steel production capacity was estimated to be 25,670
million tons for Germany and 10,035 million tons for France.
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"ocrText": "- 6 -\n(a) The new duplication of effort, between the French and\nGerman steel industries must be avoided.- Considerations of\nstrategic sáfety, both in reference to the German and the Russian\nmilitary threat, force us to concentrate the European steel\nindustries at the point where the military risk is the smallest:\nbehind the French defense system. This means that we must use the\nERP program in order to help the French steel industry to expand,\nat the expense of the planned increase of the German steel industry.\n(b) Consideration must be given to the fact that the French\nindustry suffered from a shortage of workers which gave the Germans\na marked adyantage that is reflected in the figures of steel\nproduction. For this reason, migration of German labor to\nLorraine must be encouraged by all means, which will, at the\nsame time, ease the pressure of population in the Ruhr.\n(c) To prevent both a revival of German militarism and\nthe seizure of objects of high military value by the Russians,\nGerman steel production must not be allowed to exceed the level\nit has reached at present. Instead, we should encourage by all\nmeans, the establishment of \"finished goods industries\" in the\nGerman area adjacent to the belt of heavy industries in Lorraine,\nLuxembourg and Southern Belgium. This area is marked, roughly,\nby the cities of Trier, Mainz, and Bad Homburg in the North,\nHanau, Darmstadt and Heidelberg in the East, and by a line\nrunning from Heidelberg through Karlsruhe in the South. This\nspace would include most of the Palatinate, which is already\nconspicuous for its precision industries and would comprise a\nseries of important industrial centers such as Wiesbaden,\nFrankfurt, Darmstadt, and Mannheim, where all types of light\nand medium industries are already flourishing at present. This\nentire area could finally be developed into one single giant\ncity which, in connection with the French and Benelux territories\nin the rear, could form the industrial heart of Europe.\n(d) The role of the Ruhr should be restricted chiefly to\nthe production of coal which must be encouraged by all means and\n7. It would appear from newspaper reports that the French steel\nindustry under strong U.S. pressure might be prepared to accept\nsome compromise that would give it a large share in the control\nof the Ruhr coal production. Yet such decisions of individual\ngroups that seek their own economic advantage must not deflect\nus from the line which we find advisable for ourselves.\n8. According to the Military Government Guide \"Organization of\nthe Iron and Steel Industry of Enemy Europe, 11 of March 1945, p.125,\nthe Reich, in 1943, produced 22.180 million tons of steel while\nFrance produced only 5 millions. It must be borne in mind, however,\nthat the production during the war was dependent on political\nfactors such as the allocation of labor, including slave labor,\nand thus gives no real picture of the otentialities of the 2\ncountries. Steel production capacity was estimated to be 25,670\nmillion tons for Germany and 10,035 million tons for France."
}