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DECLASSIFIED
SECRET
E. O. 11652, Sec. 3(E) and 5(D) or (E)
OSD letter, April 12, 1974
By NLT- Hc , NARS Date 6.27-75
This situation is bound to cause severe difficulties.
Even if the minimum amounts are imported in time, some mal-
nutrition seems certain. If a further cut has to be made, it
will seriously undermine progress already made toward the ob-
jectives of our occupation, and it will damage the prestige
of the United States in Central Europe, especially as com-
pared with the Soviets, who are reported to be maintaining
the 1500 calorie ration. The War Department, as well as the
State Department, feels that no effort should be spared to
avoid these consequences.
2. Lack of Central Agencies
As you know, the United States, USSR and Great
Britain agreed at Potsdam to treat Germany as an economic
unit and adopt common policies on major economic matters,
and to create central German. agencies for finance, industry,
transport, communications and foreign trade. But the Allied
Control Council has not been able to carry out this agreement,
largely because of the opposition of the French. As a result
there are now no German agencies whose authority extends be-
yond their respective zones.
This lack of central agencies has very serious con-
sequences. It deprives the Control Council of any administra-
tive machinery to carry out its programs and tends to make
the zonal boundaries into barriers to interzonal trade and
industry. In practice the effect is to prevent the treatment
- 2 -
SERVICE"
SECHET
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Context sent to Scholar
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"ocrText": "DECLASSIFIED\nSECRET\nE. O. 11652, Sec. 3(E) and 5(D) or (E)\nOSD letter, April 12, 1974\nBy NLT- Hc , NARS Date 6.27-75\nThis situation is bound to cause severe difficulties.\nEven if the minimum amounts are imported in time, some mal-\nnutrition seems certain. If a further cut has to be made, it\nwill seriously undermine progress already made toward the ob-\njectives of our occupation, and it will damage the prestige\nof the United States in Central Europe, especially as com-\npared with the Soviets, who are reported to be maintaining\nthe 1500 calorie ration. The War Department, as well as the\nState Department, feels that no effort should be spared to\navoid these consequences.\n2. Lack of Central Agencies\nAs you know, the United States, USSR and Great\nBritain agreed at Potsdam to treat Germany as an economic\nunit and adopt common policies on major economic matters,\nand to create central German. agencies for finance, industry,\ntransport, communications and foreign trade. But the Allied\nControl Council has not been able to carry out this agreement,\nlargely because of the opposition of the French. As a result\nthere are now no German agencies whose authority extends be-\nyond their respective zones.\nThis lack of central agencies has very serious con-\nsequences. It deprives the Control Council of any administra-\ntive machinery to carry out its programs and tends to make\nthe zonal boundaries into barriers to interzonal trade and\nindustry. In practice the effect is to prevent the treatment\n- 2 -\nSERVICE\"\nSECHET"
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