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J. 333305-MONO-State
Galley 189
UNCORRECTED GALLEY PROOF
such German capital equipment as they can promptly put to effective
use in the initial period of rehabilitation. We should favor a short
program of heavy reparation payments, derived largely from current
German production. Reparation should not be allowed to provide
a
pretext for building up German productive power as a means of
increasing her "capacity to pay".
e) We should advocate the establishment of machinery to assure
inter-zonal movement of foodstuffs, industrial materials and finished
goods, in order to foster production for reparation and to prevent
large inter-zonal disparities in diet and employment.
f) We should attempt to reach agreement with Britain and Russia
regarding policies for the control of large industrial firms and the
elimination of Nazis from positions of influence. We should advocate
a policy more drastic than the British now favor, but less drastic
than Russia might be inclined to apply.
Matthews Files
Memorandum by the Special Assistant to the Secretary of State
(Pasvolsky) 1
1 Carbon copy.
[MEMORANDUM OF CONVERSATION]
SECRET
[WASHINGTON,] NOVEMBER 15, 1944.
Subject: Treatment of Germany
Participants: The President
The Under Secretary
Mr. Hackworth
Mr. Pasvolsky
In reply to the Under Secretary's question, the President said that
he had read the memorandum submitted to him on the treatment of
Germany 2 and thought that it was entirely satisfactory except for one
point.
As he saw the picture, the system that would become established
would be that General Eisenhower and the British and Russian Com-
manders would be in charge of their respective zones. In addition,
there would be a commission in Germany which would consist of mili-
tary men of a lower rank. What bothers the President is that on this
commission in Berlin there would be insufficient representation of a
tough civilian point of view. He, therefore, wants to have something
worked out that would take care of this situation, possibly by way of
giving a general's commission to some outstanding civilian and making
him the U. S. member of the Berlin commission.
Mr. Stettinius asked the President whether or not he would now be
willing to send copies of the memorandum to the War, Navy and
Treasury Departments as a Department of State proposal which he
considers satisfactory but on which he would like to have their com-
ments. The President said that he thought this to be the right pro-
cedure and that the necessary transmitting memoranda should be
prepared for him. He then added that the Secretary of the Treasury
was lunching with him today and that he would show him the memo-
randum, indicating his general approval of it.
The President said he was still in a tough mood and that he is
determined to be. tough with Germany. After some discussion, he
agreed that the memorandum was sufficiently tough. He said that
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"ocrText": "J. 333305-MONO-State\nGalley 189\nUNCORRECTED GALLEY PROOF\nsuch German capital equipment as they can promptly put to effective\nuse in the initial period of rehabilitation. We should favor a short\nprogram of heavy reparation payments, derived largely from current\nGerman production. Reparation should not be allowed to provide\na\npretext for building up German productive power as a means of\nincreasing her \"capacity to pay\".\ne) We should advocate the establishment of machinery to assure\ninter-zonal movement of foodstuffs, industrial materials and finished\ngoods, in order to foster production for reparation and to prevent\nlarge inter-zonal disparities in diet and employment.\nf) We should attempt to reach agreement with Britain and Russia\nregarding policies for the control of large industrial firms and the\nelimination of Nazis from positions of influence. We should advocate\na policy more drastic than the British now favor, but less drastic\nthan Russia might be inclined to apply.\nMatthews Files\nMemorandum by the Special Assistant to the Secretary of State\n(Pasvolsky) 1\n1 Carbon copy.\n[MEMORANDUM OF CONVERSATION]\nSECRET\n[WASHINGTON,] NOVEMBER 15, 1944.\nSubject: Treatment of Germany\nParticipants: The President\nThe Under Secretary\nMr. Hackworth\nMr. Pasvolsky\nIn reply to the Under Secretary's question, the President said that\nhe had read the memorandum submitted to him on the treatment of\nGermany 2 and thought that it was entirely satisfactory except for one\npoint.\nAs he saw the picture, the system that would become established\nwould be that General Eisenhower and the British and Russian Com-\nmanders would be in charge of their respective zones. In addition,\nthere would be a commission in Germany which would consist of mili-\ntary men of a lower rank. What bothers the President is that on this\ncommission in Berlin there would be insufficient representation of a\ntough civilian point of view. He, therefore, wants to have something\nworked out that would take care of this situation, possibly by way of\ngiving a general's commission to some outstanding civilian and making\nhim the U. S. member of the Berlin commission.\nMr. Stettinius asked the President whether or not he would now be\nwilling to send copies of the memorandum to the War, Navy and\nTreasury Departments as a Department of State proposal which he\nconsiders satisfactory but on which he would like to have their com-\nments. The President said that he thought this to be the right pro-\ncedure and that the necessary transmitting memoranda should be\nprepared for him. He then added that the Secretary of the Treasury\nwas lunching with him today and that he would show him the memo-\nrandum, indicating his general approval of it.\nThe President said he was still in a tough mood and that he is\ndetermined to be. tough with Germany. After some discussion, he\nagreed that the memorandum was sufficiently tough. He said that"
}