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five tons of nitrogenous fertilizers having five 50,000 tons P2O5. Furthermore, the Soviets times the value. Except for a few elementary have taken considerable amounts of nitrogen processes, manufacture of synthetic rubber and phosphate as reparations, leaving most was placed on the prohibited list in the 31 of the fertilizer needs of their zone to be met March 1949 agreement. from indigenous potash deposits. Germany was the largest producer and ex- (6) Chemicals. porter of dyes before the war. Prewar (1936) Germany possesses large natural reserves production of dyes and organic chemicals of most of the basic raw materials needed to amounted to RM 499 million. The volume of produce the multitude of chemical products exports averaged about 33,000 tons per year essential to a modern industrial economy. and ranged in value from RM 200 million to Coal, limestone, salt, potash, and wood are RM 336 million. The present limitation of abundant within the country, but most of RM 58 million on exports of dyes is not being the sulphur and pyrites has to be imported. attained owing to dislocations of the formerly Before the war Germany was the largest highly integrated industry, shortages of raw producer and second largest exporter of materials, and lack of overseas sales organiza- chemical nitrogen. The prewar output of tions and credits. about 700,000 tons per year was nearly one- The former large production and exports of third of the total world production, and of pharmaceuticals, plastics, and synthetic or- that quantity nearly 100,000 tons were ex- ganic chemicals has also almost disappeared ported. Present policy is to limit German because the erection of zonal barriers inter- production of nitrogen to its own needs, but rupted production processes in this formerly because of coal shortages, war damage, and highly integrated industry, and, in addition, dismantled plants, the country is actually on because of limitations on production imposed an import basis. by the occupation authorities, 40 percent in Three-fourths of Germany's prewar nitro- the case of chemical raw materials, 80 per- gen was produced by the Haber process in the cent in dyes and pharmaceuticals, and 70 form of synthetic ammonia. Since this is percent in other chemical products. Export basic to the manufacture of high explosives, targets in chemicals are unlikely to be the restoration of German nitrogen manufac- reached before 1949. turing facilities has been retarded by Allied Possessing only small resources in petro- concern for the high war potential of the in- leum, Germany built up a huge calcium car- dustry. Moreover, quadripartite policy with bide industry to provide acetylene as an alter- regard to Germany has been to limit its nitro- nate material for its synthetic rubber and gen production to its own consumption, thus plastics industries, and for certain other syn- further delaying reconstruction, since 80 per- thetic organic chemicals, all of which would cent of the nitrogen was produced in ten be based on petroleum were it available in plants, all of which sustained severe war sufficient quantity, as well as to provide acety- damage. lene for its metal working industries. Of Eastern Germany has comparatively few world production amounting to over 1,800,000 fertilizer plants. Assuming full operation of tons of calcium carbide in 1939, Germany pro- these, annual nitrogen production in the So- duced about 1,000,000 tons. Dismantling of viet Zone would be about 100,000 tons. Pro- plants and shortages of coal and electricity duction capacity for phosphate fertilizers is had reduced the output in 1946 to 30,000 tons 30,000 tons P2O5 (phosphoric acid) yearly, in the Soviet Zone and 304,000 tons in west- but actual production in 1946 was only 9,000 ern Germany. By 1949 annual production tons. Most Soviet Zone phosphate factories had recovered in the Soviet Zone to 381,000 are not working because of the lack of raw tons and in the Bizone to 385,000 tons. phosphates. Imports are possible under bar- Before the war, soda ash, caustic soda, sul- ter trade agreements; even so, it would not phuric acid, and chlorine were also manufac- suffice to meet the annual requirements of tured in quantities sufficient not only for do- II-18

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    "ocrText": "five tons of nitrogenous fertilizers having five\n50,000 tons P2O5. Furthermore, the Soviets\ntimes the value. Except for a few elementary\nhave taken considerable amounts of nitrogen\nprocesses, manufacture of synthetic rubber\nand phosphate as reparations, leaving most\nwas placed on the prohibited list in the 31\nof the fertilizer needs of their zone to be met\nMarch 1949 agreement.\nfrom indigenous potash deposits.\nGermany was the largest producer and ex-\n(6) Chemicals.\nporter of dyes before the war. Prewar (1936)\nGermany possesses large natural reserves\nproduction of dyes and organic chemicals\nof most of the basic raw materials needed to\namounted to RM 499 million. The volume of\nproduce the multitude of chemical products\nexports averaged about 33,000 tons per year\nessential to a modern industrial economy.\nand ranged in value from RM 200 million to\nCoal, limestone, salt, potash, and wood are\nRM 336 million. The present limitation of\nabundant within the country, but most of\nRM 58 million on exports of dyes is not being\nthe sulphur and pyrites has to be imported.\nattained owing to dislocations of the formerly\nBefore the war Germany was the largest\nhighly integrated industry, shortages of raw\nproducer and second largest exporter of\nmaterials, and lack of overseas sales organiza-\nchemical nitrogen. The prewar output of\ntions and credits.\nabout 700,000 tons per year was nearly one-\nThe former large production and exports of\nthird of the total world production, and of\npharmaceuticals, plastics, and synthetic or-\nthat quantity nearly 100,000 tons were ex-\nganic chemicals has also almost disappeared\nported. Present policy is to limit German\nbecause the erection of zonal barriers inter-\nproduction of nitrogen to its own needs, but\nrupted production processes in this formerly\nbecause of coal shortages, war damage, and\nhighly integrated industry, and, in addition,\ndismantled plants, the country is actually on\nbecause of limitations on production imposed\nan import basis.\nby the occupation authorities, 40 percent in\nThree-fourths of Germany's prewar nitro-\nthe case of chemical raw materials, 80 per-\ngen was produced by the Haber process in the\ncent in dyes and pharmaceuticals, and 70\nform of synthetic ammonia. Since this is\npercent in other chemical products. Export\nbasic to the manufacture of high explosives,\ntargets in chemicals are unlikely to be\nthe restoration of German nitrogen manufac-\nreached before 1949.\nturing facilities has been retarded by Allied\nPossessing only small resources in petro-\nconcern for the high war potential of the in-\nleum, Germany built up a huge calcium car-\ndustry. Moreover, quadripartite policy with\nbide industry to provide acetylene as an alter-\nregard to Germany has been to limit its nitro-\nnate material for its synthetic rubber and\ngen production to its own consumption, thus\nplastics industries, and for certain other syn-\nfurther delaying reconstruction, since 80 per-\nthetic organic chemicals, all of which would\ncent of the nitrogen was produced in ten\nbe based on petroleum were it available in\nplants, all of which sustained severe war\nsufficient quantity, as well as to provide acety-\ndamage.\nlene for its metal working industries. Of\nEastern Germany has comparatively few\nworld production amounting to over 1,800,000\nfertilizer plants. Assuming full operation of\ntons of calcium carbide in 1939, Germany pro-\nthese, annual nitrogen production in the So-\nduced about 1,000,000 tons. Dismantling of\nviet Zone would be about 100,000 tons. Pro-\nplants and shortages of coal and electricity\nduction capacity for phosphate fertilizers is\nhad reduced the output in 1946 to 30,000 tons\n30,000 tons P2O5 (phosphoric acid) yearly,\nin the Soviet Zone and 304,000 tons in west-\nbut actual production in 1946 was only 9,000\nern Germany. By 1949 annual production\ntons. Most Soviet Zone phosphate factories\nhad recovered in the Soviet Zone to 381,000\nare not working because of the lack of raw\ntons and in the Bizone to 385,000 tons.\nphosphates. Imports are possible under bar-\nBefore the war, soda ash, caustic soda, sul-\nter trade agreements; even so, it would not\nphuric acid, and chlorine were also manufac-\nsuffice to meet the annual requirements of\ntured in quantities sufficient not only for do-\nII-18"
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