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mestic needs but for a substantial export
one of the most complex in Germany. Re-
trade. Chemicals accounted for 7 percent of
covery in the US Zone, where 20 percent of
the total value of all products manufactured
the plants are located, was retarded by a total
in Germany in 1936, or RM 2.2 billion, of
dependence upon the other zones for raw
which nearly 30 percent was exported. The
materials such as coal, pyrites, and synthetic
industry was dominated by I. G. Farben, the
ammonia. It was not until well into 1946
largest chemical firm in the world, which pro-
that the industry could be reactivated to any
duced 100 percent of Germany's wartime re-
great extent. Fuel and power shortages were
quirements of synthetic rubber, 98 percent of
especially acute, the severe winter of 1946-47
its dyestuffs, 75 percent of its chemical nitro-
causing a temporary shutdown of the entire
gen, 61 percent of its calcium carbide, 55 per-
chemical industry. In 1947 Bizone produc-
cent of its pharmaceuticals, and 46 percent
tion was only 45 percent of the 1936 level, but
of its chlorine, as well as a great variety of
with more coal and power available in 1948
other chemical products such as plastics and
it increased to 70 percent and in the first
X-ray film. This vast concern ceased to exist
quarter of 1949 to 78 percent.
after the surrender, and a large number of
The greatest concentration of chemical
its plants were immediately dismantled or
plants occurs in the UK Zone, which has 35
allocated for reparations. Although revival
percent of the total, but production in 1947
of the dyestuff industry has been marked
was only 40 percent of prewar levels. Chemi-
since currency reform, production of dye-
cal plants in the Soviet Zone, which has 28
stuffs in 1949 was only 25 percent of that in
percent of the total, suffered severely from
1936. Production in 1949-50 is expected to
war damage and then from sporadic Soviet
rise from 11,500 tons to 25,000 tons, with ex-
dismantlings, SO that chemical output has
ports increasing to 7,000 tons, of which about
lagged considerably behind postwar objec-
half will be shipped to the Soviet Zone.
tives. The Soviet Zone industry has been
In the chemical field, coal is the most im-
further handicapped by the loss of raw mate-
portant raw material, and the small alloca-
rials attributable to the counterblockade of
tion of coal to the German chemical industry
Berlin. Thousands of German chemists and
was the main reason for its low production
technicians have also been taken to Russia
rate until late in 1948. There also have been
to work on scientific projects and on erection
difficulties in obtaining imported raw mate-
and operation of plants for the USSR. The
rials such as sulfur and pyrites, borax, iodine,
chemical industry in the French Zone, with
camphor, vegetable drugs, and medicinal
11 percent of the plants, has shown irregular
herbs. Furthermore, the various I. G. Far-
production trends.
ben plants,* although located in different
parts of Germany, were nevertheless highly
(7) Textiles.
integrated, and consequently the necessary
Before the war (1937) Germany's consump-
interchange of semi-finished products and in-
tion of all kinds of fibers was estimated at
termediates between the Soviet Zone and the
969,000 tons, of which new and reclaimed do-
western zones, and vice versa, now SO difficult,
mestic fibers accounted for 29 percent, im-
further complicated matters. Dismantling of
ported raw cotton for 35 percent, and imports
plants, as well as decartelization and denazi-
of wool, jute, flax, and hemp for the rest. Al-
fication procedures connected with the disso-
though the textile industry for the most part
lution of I. G. Farben, have also retarded
was not extensively damaged, recovery has
recovery in the chemical industry, which was
been much slower than in other industrial
fields because of the excessive dependence
Distribution of I. G. Farben properties is as fol-
upon the import of raw materials such as cot-
lows: Soviet Zone 58.5 percent, Bizonia 21.5 percent,
ton and wool, and the difficulty of obtaining
French Zone 20 percent. In the US Zone 77 of the
chemicals for the manufacture of artificial
199 I. G. Farben installations have already been
liquidated; in the Soviet Zone 86 out of 201, although
fibers of the rayon type. The Level of Indus-
all important plants are now Soviet-owned.
try Plan allowed for the processing of 665,000
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II-19
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"ocrText": "SECRET\nmestic needs but for a substantial export\none of the most complex in Germany. Re-\ntrade. Chemicals accounted for 7 percent of\ncovery in the US Zone, where 20 percent of\nthe total value of all products manufactured\nthe plants are located, was retarded by a total\nin Germany in 1936, or RM 2.2 billion, of\ndependence upon the other zones for raw\nwhich nearly 30 percent was exported. The\nmaterials such as coal, pyrites, and synthetic\nindustry was dominated by I. G. Farben, the\nammonia. It was not until well into 1946\nlargest chemical firm in the world, which pro-\nthat the industry could be reactivated to any\nduced 100 percent of Germany's wartime re-\ngreat extent. Fuel and power shortages were\nquirements of synthetic rubber, 98 percent of\nespecially acute, the severe winter of 1946-47\nits dyestuffs, 75 percent of its chemical nitro-\ncausing a temporary shutdown of the entire\ngen, 61 percent of its calcium carbide, 55 per-\nchemical industry. In 1947 Bizone produc-\ncent of its pharmaceuticals, and 46 percent\ntion was only 45 percent of the 1936 level, but\nof its chlorine, as well as a great variety of\nwith more coal and power available in 1948\nother chemical products such as plastics and\nit increased to 70 percent and in the first\nX-ray film. This vast concern ceased to exist\nquarter of 1949 to 78 percent.\nafter the surrender, and a large number of\nThe greatest concentration of chemical\nits plants were immediately dismantled or\nplants occurs in the UK Zone, which has 35\nallocated for reparations. Although revival\npercent of the total, but production in 1947\nof the dyestuff industry has been marked\nwas only 40 percent of prewar levels. Chemi-\nsince currency reform, production of dye-\ncal plants in the Soviet Zone, which has 28\nstuffs in 1949 was only 25 percent of that in\npercent of the total, suffered severely from\n1936. Production in 1949-50 is expected to\nwar damage and then from sporadic Soviet\nrise from 11,500 tons to 25,000 tons, with ex-\ndismantlings, SO that chemical output has\nports increasing to 7,000 tons, of which about\nlagged considerably behind postwar objec-\nhalf will be shipped to the Soviet Zone.\ntives. The Soviet Zone industry has been\nIn the chemical field, coal is the most im-\nfurther handicapped by the loss of raw mate-\nportant raw material, and the small alloca-\nrials attributable to the counterblockade of\ntion of coal to the German chemical industry\nBerlin. Thousands of German chemists and\nwas the main reason for its low production\ntechnicians have also been taken to Russia\nrate until late in 1948. There also have been\nto work on scientific projects and on erection\ndifficulties in obtaining imported raw mate-\nand operation of plants for the USSR. The\nrials such as sulfur and pyrites, borax, iodine,\nchemical industry in the French Zone, with\ncamphor, vegetable drugs, and medicinal\n11 percent of the plants, has shown irregular\nherbs. Furthermore, the various I. G. Far-\nproduction trends.\nben plants,* although located in different\nparts of Germany, were nevertheless highly\n(7) Textiles.\nintegrated, and consequently the necessary\nBefore the war (1937) Germany's consump-\ninterchange of semi-finished products and in-\ntion of all kinds of fibers was estimated at\ntermediates between the Soviet Zone and the\n969,000 tons, of which new and reclaimed do-\nwestern zones, and vice versa, now SO difficult,\nmestic fibers accounted for 29 percent, im-\nfurther complicated matters. Dismantling of\nported raw cotton for 35 percent, and imports\nplants, as well as decartelization and denazi-\nof wool, jute, flax, and hemp for the rest. Al-\nfication procedures connected with the disso-\nthough the textile industry for the most part\nlution of I. G. Farben, have also retarded\nwas not extensively damaged, recovery has\nrecovery in the chemical industry, which was\nbeen much slower than in other industrial\nfields because of the excessive dependence\nDistribution of I. G. Farben properties is as fol-\nupon the import of raw materials such as cot-\nlows: Soviet Zone 58.5 percent, Bizonia 21.5 percent,\nton and wool, and the difficulty of obtaining\nFrench Zone 20 percent. In the US Zone 77 of the\nchemicals for the manufacture of artificial\n199 I. G. Farben installations have already been\nliquidated; in the Soviet Zone 86 out of 201, although\nfibers of the rayon type. The Level of Indus-\nall important plants are now Soviet-owned.\ntry Plan allowed for the processing of 665,000\nSECRET\nII-19"
}