Memorandum from Secretary of State George C. Marshall, Secretary of the Army Kenneth Royall, Secretary of the Interior Julius Krug, Secretary of Agriculture Charles Brannan, and Secretary of Commerce Charles Sawyer to President Harry S. Truman, with Attachment

SECRET DECLASSIFIED E. () 11612. Sec. 3(E) and S(D) or (E) CABINET COMITTER ON REPARATIONS Dap of State letter, PRAMAN Washington, D. c. By NLT- H. . NARS Date 1717 RECORDS si August 9, 1948 Dear Mr. President: On February 16, 1948, prior to the enactment of the Economic Cooperation Act of 1948, you requested the Secrotaries of Agriculture, Commerce and Interior to nominate representatives to examine with representatives of the State and Arny Departments plants scheduled for dismantling in the three Western Zones of Germany and to recommend which of auch plants, if any, should be retained because they could if left in Germany make a substantialceontribution to the world supply of critical items. In order to assist the study, a Technical Mission was sent to Gesumany which made a report on July 23, 1948 (attached) recomending-the retention in Gestoany of 315 plants and 16 part plants, listed in three categories by order of importance. This report is based exclusively on certain teshnical considerations and does not take into account the political and security considerations which are involved. The conclusions of this report have been considered along with other relevant factors by an ad hoc Committee representing the five Secretaries, to which the Economic Cooperation Administrutor hee sent an observer. The Committee does not find any assurance in the Technicel Mission report that plents recommended therein for retention in Germany can be brought into production during the period of the European Recovery Program. The ad hoe Committee has made the following four recumandations, which we have approved: 1. That the 163 whole plants and 1 part plant (listed in Annex A) having the greatest possibility of contributing to European recovery, if brought fully into production in Germany, be referred to the Economic Cooperation Administrator for such further study or other action as he may consider necessery to the discharge of his responsibilities under Section 115(f) of the Economic Cooperation Act. Note: If the French Government confirms its intention to retain any of the 35 whole plants and 14 part plants listed in Annex B, no further consideration or action by this Government with respect to retention of such plants is required. Any plants in Annex B which are not confirmed by the French Government will be added to Annex A. 2. That the remaining plants recommended for retention by the Technical Mission be released forthwith for renoval as reparations in view of the uncertainty that any of these plants could make a substential contribution PRESERVATION COPY