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J. 33305-MONO-State Galley 177 UNCORRECTED GALLEY PROOF be worked out with our principal Allies if they are to be applied throughout the German Reich. (a) Demilitarization of Germany. The complete dissolution of all German armed forces and all Nazi military, para-military and police organizations, and the destruction or scrapping of all arms, ammuni- tion and implements of war should be effected. Further manufacture in Germany of arms, ammunition and implements of war should be prohibited. (b) Dissolution of the Nazi party and all affiliated organizations. The Nazi Party should be immediately dissolved. Large groups of particularly objectionable elements, especially the SS and the Gestapo, should be arrested and interned and war criminals should be tried and, if found guilty, executed. Active party members should be excluded from political or civil activity and subject to a number of restrictions. All laws discriminating against persons on grounds of race, color, creed or political opinion should be annulled. (c) Extensive controls should be maintained over communications, press and propaganda for the purpose of eliminating Nazi doctrines or similar teachings. (d) Extensive controls over German educational system should be established for the purpose of eliminating all Nazi influence and propa- ganda. (e) No decision should be taken on the possible partition of Germany (as distinguished from territorial amputations) until we see what the internal situation is and what is the attitude of our principal Allies on this question. We should encourage a decentralization of the German governmental structure and if any tendencies toward spontaneous partition of Germany arise they should not be discouraged. (A) Economic Objectives. The primary and continuing objectives of our economic policy are: (1) to render Germany incapable of waging war, and (2) to eliminate permanently German economic domination of Europe. A shorter term objective is to require the performance by Germany of acts of restitution and reparation for injuries done to the United Nations. To achieve the first two objectives, it will be essential (1) to destroy all factories incapable of conversion to peaceful purposes and to prevent their reconstruction, (2) to enforce the conversion of all other plants, (3) to eliminate self-sufficiency by imposing reforms that will make Germany dependent upon world markets, (4) to establish controls over foreign trade and key industries for the purpose of pre- venting German rearmament, and (5) to eliminate the position of power of large industrialists and land-owners. This Government has little direct interest in obtaining reparations from Germany and no interest in building up German economy in order to collect continuing reparations. However, the U. S. S. R. and a number of other states which have been victims of German destruction and exploitation may press claims for German production and labor service for rehabilitation and construction. Extensive controls over industry and foreign trade will be essential during the immediate period of demilitarization and dismantlement, as well as during the period of reparations. After this phase, a system of control and supervision of German industry and trade will have to be worked out in the light of world security developments.

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    "ocrText": "J. 33305-MONO-State\nGalley 177\nUNCORRECTED GALLEY PROOF\nbe worked out with our principal Allies if they are to be applied\nthroughout the German Reich.\n(a) Demilitarization of Germany. The complete dissolution of all\nGerman armed forces and all Nazi military, para-military and police\norganizations, and the destruction or scrapping of all arms, ammuni-\ntion and implements of war should be effected. Further manufacture\nin Germany of arms, ammunition and implements of war should be\nprohibited.\n(b) Dissolution of the Nazi party and all affiliated organizations.\nThe Nazi Party should be immediately dissolved. Large groups of\nparticularly objectionable elements, especially the SS and the Gestapo,\nshould be arrested and interned and war criminals should be tried and,\nif found guilty, executed. Active party members should be excluded\nfrom political or civil activity and subject to a number of restrictions.\nAll laws discriminating against persons on grounds of race, color, creed\nor political opinion should be annulled.\n(c) Extensive controls should be maintained over communications,\npress and propaganda for the purpose of eliminating Nazi doctrines\nor similar teachings.\n(d) Extensive controls over German educational system should be\nestablished for the purpose of eliminating all Nazi influence and propa-\nganda.\n(e) No decision should be taken on the possible partition of Germany\n(as distinguished from territorial amputations) until we see what the\ninternal situation is and what is the attitude of our principal Allies on\nthis question. We should encourage a decentralization of the German\ngovernmental structure and if any tendencies toward spontaneous\npartition of Germany arise they should not be discouraged.\n(A) Economic Objectives. The primary and continuing objectives\nof our economic policy are: (1) to render Germany incapable of waging\nwar, and (2) to eliminate permanently German economic domination\nof Europe. A shorter term objective is to require the performance by\nGermany of acts of restitution and reparation for injuries done to the\nUnited Nations.\nTo achieve the first two objectives, it will be essential (1) to destroy\nall factories incapable of conversion to peaceful purposes and to\nprevent their reconstruction, (2) to enforce the conversion of all other\nplants, (3) to eliminate self-sufficiency by imposing reforms that will\nmake Germany dependent upon world markets, (4) to establish\ncontrols over foreign trade and key industries for the purpose of pre-\nventing German rearmament, and (5) to eliminate the position of\npower of large industrialists and land-owners.\nThis Government has little direct interest in obtaining reparations\nfrom Germany and no interest in building up German economy in\norder to collect continuing reparations. However, the U. S. S. R.\nand a number of other states which have been victims of German\ndestruction and exploitation may press claims for German production\nand labor service for rehabilitation and construction.\nExtensive controls over industry and foreign trade will be essential\nduring the immediate period of demilitarization and dismantlement,\nas well as during the period of reparations. After this phase, a\nsystem of control and supervision of German industry and trade will\nhave to be worked out in the light of world security developments."
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