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J. 333305-MONO-State
Galley 191
UNCORRECTED GALLEY PROOF
sary, but if the security organization is prepared to use force to
prevent rearmament, we don't have to cut deep into the German
economy, and if it isn't, no amount of once-and-for-all economic
destruction will make much lasting difference.
(4) In the long run, we should look forward to a German economy
geared into a liberal world economy on the basis of efficient specializa-
tion. This will imply equitable German access to export markets,
abolition of German self-sufficiency, and abandonment of instruments
of German economic aggression-private international cartels, bilateral
barter arrangements, etc. This alone is compatible with the emer-
gence of a stable non-aggressive Germany. This may prove to be
unattainable, but for the present we should take no action which would
permanently preclude peaceful development of Germany.
E. R. STETTINIUS, JR.
862.50/11-2244
The Acting Secretary of State (Stettinius) to the President
SECRET
[WASHINGTON], November 29, 1944.
MEMORANDUM FOR THE PRESIDENT
Subject: British Views on the Economic Treatment of Germany
For your convenience I have summarized below a series of telegrams
received from the Embassy in London on the British views on the
economic treatment of Germany.
The reports generally confirm the statement of the British position
which was outlined in the Department's draft of November 10 on
the economic treatment of Germany.¹ British officials seem strongly
opposed to sweeping measures of de-industrialization and extreme
impoverishment of Germany. They are continuing to explore selective
economic controls and restrictions, but detailed examination of specific
proposals has served to make clear the difficulties and limitations of
most such measures.
The British emphasize the need for selecting measures which will
enjoy lasting public support and which will be enforceable a generation
hence, after the emotions of wartime have cooled down.
They advocate conversion of the German economy to peacetime
production and payment of reparation in kind.
They are eager to begin discussions on restitution of looted property
even if discussion of broader economic questions is not yet practicable,
and they intend to introduce shortly into the European Advisory
Commission a proposal on machinery to handle restitution.
EDWARD R. STETTINIUS, JR.
1 Ante, p. -
Matthews Files
The President to the Secretary of State 1
1 Carbon copy.
SECRET
WASHINGTON, December 4, 1944.
MEMORANDUM FOR HON. E. R. STETTINIUS, JR.
I have yours of November 29th on the Economic Treatment of
Germany.2 There are two things which I think the State Department
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"ocrText": "J. 333305-MONO-State\nGalley 191\nUNCORRECTED GALLEY PROOF\nsary, but if the security organization is prepared to use force to\nprevent rearmament, we don't have to cut deep into the German\neconomy, and if it isn't, no amount of once-and-for-all economic\ndestruction will make much lasting difference.\n(4) In the long run, we should look forward to a German economy\ngeared into a liberal world economy on the basis of efficient specializa-\ntion. This will imply equitable German access to export markets,\nabolition of German self-sufficiency, and abandonment of instruments\nof German economic aggression-private international cartels, bilateral\nbarter arrangements, etc. This alone is compatible with the emer-\ngence of a stable non-aggressive Germany. This may prove to be\nunattainable, but for the present we should take no action which would\npermanently preclude peaceful development of Germany.\nE. R. STETTINIUS, JR.\n862.50/11-2244\nThe Acting Secretary of State (Stettinius) to the President\nSECRET\n[WASHINGTON], November 29, 1944.\nMEMORANDUM FOR THE PRESIDENT\nSubject: British Views on the Economic Treatment of Germany\nFor your convenience I have summarized below a series of telegrams\nreceived from the Embassy in London on the British views on the\neconomic treatment of Germany.\nThe reports generally confirm the statement of the British position\nwhich was outlined in the Department's draft of November 10 on\nthe economic treatment of Germany.¹ British officials seem strongly\nopposed to sweeping measures of de-industrialization and extreme\nimpoverishment of Germany. They are continuing to explore selective\neconomic controls and restrictions, but detailed examination of specific\nproposals has served to make clear the difficulties and limitations of\nmost such measures.\nThe British emphasize the need for selecting measures which will\nenjoy lasting public support and which will be enforceable a generation\nhence, after the emotions of wartime have cooled down.\nThey advocate conversion of the German economy to peacetime\nproduction and payment of reparation in kind.\nThey are eager to begin discussions on restitution of looted property\neven if discussion of broader economic questions is not yet practicable,\nand they intend to introduce shortly into the European Advisory\nCommission a proposal on machinery to handle restitution.\nEDWARD R. STETTINIUS, JR.\n1 Ante, p. -\nMatthews Files\nThe President to the Secretary of State 1\n1 Carbon copy.\nSECRET\nWASHINGTON, December 4, 1944.\nMEMORANDUM FOR HON. E. R. STETTINIUS, JR.\nI have yours of November 29th on the Economic Treatment of\nGermany.2 There are two things which I think the State Department"
}