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March 5,
2008
Synopsis: Directive
JCS 1067 to the Commander in Chief of U.S. forces in Germany
(April 1945) laid out the main features of American
occupation policy in the postwar period. Its numerous tough
regulations remained officially in force until the middle of
1947. It was, however, not abondoned at that time, but
merely replaced with a slightly modified version.
According to this directive, Germany was to be treated as an
enemy state - one that needed to be permanently prevented
from becoming a renewed threat to peace.
"Fraternization" between the American occupation forces and
Germans was prohibited. Denazification was to be achieved
through the dissolution of all Nazi organizations and the
exclusion of their members from public life and higher
positions in the economic sector. A new start to political
life was only possible with American permission, and the
reopening of educational institutions was to take place
under strict control.
Likewise, economic life was to be revived in accordance with
strict directives. The economy was to be decentralized and
controlled with the help of German agencies. The German
economy was to produce only enough to provision the
occupation troops and to provide a basic livelihood for the
population. A more robust economic recovery was not
desirable. The standard of living in the American zone was
not to exceed that in neighboring countries.
The complete text of this directive is shown below.
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Directive to
Commander-in-Chief of United States Forces of Occupation
Regarding the Military Government of Germany; April 1945
(JCS 1067)
It is considered appropriate, at the
time of the release to the American public of the following
directive setting forth United States policy with reference
to the military government of Germany, to preface the
directive with a short statement of the circumstances
surrounding the issuance of the directive to General
Eisenhower. The directive was issued originally in April
1945, and was intended to serve two purposes. It was to
guide General Eisenhower in the military government of that
portion of Germany occupied by United States forces. At the
same time he was directed to urge the Control Council to
adopt these policies for enforcement throughout Germany.
Before this directive was discussed in the Control Council,
President Truman, Prime Minister Attlee, and Generalissimo
Stalin met at Potsdam and issued a communiqué setting
forth agreed policies for the control of Germany. This
communiqué was made public on August 2, 1945. The
directive, therefore, should be read in the light of the
policies enumerated at Potsdam. In particular, its
provisions regarding disarmament, economic and financial
matters, and reparations should be read together with the
similar provisions set out in the Potsdam agreement on the
treatment of Germany in the initial control period and in
the agreement on reparations contained in the Potsdam
communiqué. Many of the policy statements contained
in the directive have been in substance adopted by the
Potsdam agreement. Some policy statements in the Potsdam
agreement differ from the policy statements on the same
subjects in the directive. In such cases, the policies of
the Potsdam agreement are controlling.
Where the Potsdam agreement is
silent on matters of policy dealt with in the directive, the
latter continues to guide General Eisenhower in his
administration of the United States Zone in
Germany.
Directive to Commander-in-Chief
of United States Forces of Occupation Regarding the Military
Government of Germany
1. The Purpose and Scope of this
Directive: This directive is issued to you as Commanding
General of the United States forces of occupation in
Germany. As such you will serve as United States member of
the Control Council and will also be responsible for the
administration of military government in the zone or zones
assigned to the United States for purposes of occupation and
administration. It outlines the basic policies which will
guide you in those two capacities after the termination of
the combined command of the Supreme Commander, Allied
Expeditionary Force. This directive sets forth policies
relating to Germany in the initial post-defeat period. As
such it is not intended to be an ultimate statement of
policies of this Government concerning the treatment of
Germany in the post-war world. It is therefore essential
that, during the period covered by this directive, you
assure that surveys are constantly maintained of economic,
industrial financial, social and political conditions within
your zone and that the results of such surveys and such
other surveys as may be made in other zones are made
available to your Government, through the Joint Chiefs of
Staff. These surveys should be developed in such manner as
to serve as a basis for determining changes in the measures
ofcontrol set forth herein as well as for the progressive
formulation and development of policies to promote the basic
objectives of the United States. Supplemental directives
will be issued to you by the Joint Chiefs of Staff as may be
required. As a member of the Control Council you will urge
the adoption by the other occupying powers of the principles
and policies set forth in this directive and, pending
Control Council agreement, you will follow them in your
zone. It is anticipated that substantially similar
directives will be issued to the Commanders in Chief of the
U.K., U.S.S.R. and French forces of occupation.
PART I
General and Political.
2. The Basis of Military
Government:
a. The rights, power and status of
the military government in Germany are based upon the
unconditional surrender or total defeat of Germany.
b. Subject to the provisions of paragraph 3 below, you are,
by virtue of your position, clothed with supreme
legislative, executive, and judicial authority in the areas
occupied by forces under your command. This authority will
be broadly construed and includes authority to take all
measures deemed by you necessary, appropriate or desirable
in relation to military exigencies and the objectives of a
firm military government.
c. You will issue a proclamation continuing in force such
proclamations, orders and instructions as may have
heretofore been issued by Allied Commanders in your zone,
subject to such changes as you may determine. Authorizations
of action by the Supreme Commander, Allied Expeditionary
Force, maybe considered as applicable to you unless
inconsistent with this or later directives.
3. The Control Council and Zones of
Occupation:
a. The four Commanders-in-Chief,
acting jointly, will constitute the Control Council in
Germany which will be the supreme organ of control over
Germany in accordance with the agreement on Control
Machinery in Germany. For purposes of administration of
military government, Germany has been divided into four
zones of occupation.
b. The authority of the Control Council to formulate policy
and procedures and administrative relationships with respect
to matters affecting Germany as a whole will be paramount
throughout Germany. You will carry out and support in your
zone the policies agreed upon in the Control Council. In the
absence of such agreed policies you- will act in accordance
with this and other directives of the Joint Chiefs of
Staff.
c. The administration of affairs in Germany shall be
directed towards the decentralization of the political and
administrative structure and the development of local
responsibility. To this end you will encourage autonomy in
regional, local and municipal agencies of German
administration. The German economic structure shall also be
decentralized. The Control Council may, however, to the
minimum extent required for the fulfillment of purposes set
forth herein, permit centralized administration or establish
central control of (a) essential national public services
such as railroads, communications and power, (b) finance and
foreign affairs, and (c) production and distribution of
essential commodities.
d. The Control Council should adopt procedures to
effectuate, and you will facilitate in your zone, the
equitable distribution of essential commodities between the
zones. In the absence of a conflicting policy of the Control
Council, you may deal directly with one or more zone
commanders on matters of special concern to such zones.
e. Pending the formulation in the Control Council of uniform
policies and procedures with respect to inter-zonal travel
and movement of civilians, no civilians shall be permitted
to leave or enter your zone without your authority, and no
Germans within your zone shall be permitted to leave Germany
except for specific purposes approved by you.
f. The military government personnel in each zone, including
those dealing with regional and local branches of the
departments of any central German administrative machinery,
shall be selected by authority of the Commander of that zone
except that liaison officers may be furnished by the
Commanders of the other three zones. The respective
Commanders-in-Chief shall have exclusive jurisdiction
throughout the whole of Germany over the members of the
armed forces under their command and over the civilians who
accompany them.
g. The Control Council should be responsible for
facilitating the severance of all governmental and
administrative connections between Austria and Germany and
the elimination of German economic influences in Austria.
Every assistance should be given to the Allied
Administration in Austria in its efforts to effectuate these
purposes.
4. Basic Objectives of Military
Government in Germany:
a. It should be brought home to the
Germans that Germany's ruthless warfare and the fanatical
Nazi resistance have destroyed the German economy and made
chaos and suffering inevitable and that the Germans cannot
escape responsibility for what they have brought upon
themselves.
b. Germany will not be occupied for the purpose of
liberation but as a defeated enemy nation. Your aim is not
oppression but to occupy Germany for the purpose of
realizing certain important Allied objectives. In the
conduct of your occupation and administration you should be
just but firm and aloof. You will strongly discourage
fraternization with the German officials and population.
c. The principal Allied objective is to prevent Germany from
ever again becoming a threat to the peace of the world.
Essential steps in the accomplishment of this objective are
the elimination of Nazism and militarism in all their forms,
the immediate apprehension of war criminals for punishment,
the industrial disarmament and demilitarization of Germany,
with continuing control over Germany's capacity to make war,
and the preparation for an eventual reconstruction of German
political life on a democratic basis.
d. Other Allied objectives are to enforce the program of
reparations and restitution, to provide relief for the
benefit of countries devastated by Nazi aggression, and to
ensure that prisoners of war and displaced persons of the
United Nations are cared for and repatriated.
5. Economic Controls:
a. As a member of the Control
Council and as zone commander, you will be guided by the
principle that controls upon the German economy may be
imposed to the extent that such controls may be necessary to
achieve the objectives enumerated in paragraph 4 above and
also as they may be essential to protect the safety and meet
the needs of the occupying forces and assure the production
and maintenance of goods and services required to prevent
starvation or such disease and unrest as would endanger
these forces. No action will be taken in execution of the
reparations program or otherwise which would tend to support
basic living conditions in Germany or in your zone on a
higher level than that existing in anyone of the neighboring
United Nations.
b. In the imposition and maintenance of such controls as may
be prescribed by you or the Control Council, German
authorities will to the fullest extent practicable be
ordered to proclaim and assume administration of such
controls. Thus it should be brought home to the German
people that the responsibility for the administration of
such controls and for any break-downs in those controls will
rest with themselves and German authorities.
6. Denazification:
a. A Proclamation dissolving the
Nazi Party, its formations, affiliated associations and
supervised organizations, and all Nazi public institutions
which were set up as instruments of Party domination, and
prohibiting their revival in any form, should be promulgated
by the Control Council. You will assure the prompt
effectuation of that policy in your zone and will make every
effort to prevent the reconstitution of any such
organization in underground, disguised or secret form.
Responsibility for continuing desirable non-political social
services of dissolved Party organizations may be transferred
by the Control Council to appropriate central agencies and
by you to appropriate local agencies.
b. The laws purporting to establish the political structure
of National Socialism and the basis of the Hitler regime and
all laws, decrees and regulations which establish
discriminations on grounds of race, nationality, creed or
political opinions should be abrogated by the Control
Council. You will render them inoperative in your zone.
c. All members of the Nazi party who have been more than
nominal participants in its activities, all active
supporters of Nazism or militarism and all other persons
hostile to Allied purposes will be removed and excluded from
public office and from positions of importance in
quasi-public and private enterprises such as (1) civic,
economic and labor organizations, (2) corporations and other
organizations in which the German government or subdivisions
have a major financial interest, (3) industry, commerce,
agriculture, and finance, (4) education, and (5) the press,
publishing houses and other agencies disseminating news and
propaganda. Persons are to be treated as more than nominal
participants in Party activities and as active supporters of
Nazism or militarism when they have (1) held office or
otherwise been active at any level from local to national in
the party and its subordinate organizations, or in
organizations which further militaristic doctrines, (2)
authorized or participated affirmatively in any Nazi crimes,
racial persecutions or discriminations, (3) been avowed
believers in Nazism or racial and militaristic creeds, or
(4) voluntarily given substantial moral or material support
or political assistance of any kind to the Nazi Party or
Nazi officials and leaders. No such persons shall be
retained in any of the categories of employment listed above
because of administrative necessity, convenience or
expediency.
d. Property, real and personal, owned or controlled by the
Nazi party, its formations, affiliated associations and
supervised organizations, and by all persons subject to
arrest under the provisions of paragraph 8, and found within
your zone, will be taken under your control pending a
decision by the Control Council or higher authority as to
its eventual disposition.
e. All archives, monuments and museums of Nazi inception, or
which are devoted to the perpetuation of German militarism,
will be taken under your control and their properties held
pending decision as to their disposition by the Control
Council.
f. You will make special efforts to preserve from
destruction and take under your control records, plans,
books, documents, papers, files, and scientific, industrial
and other information and data belonging to or controlled by
the following: (1) The Central German Government and its
subdivisions, German military organizations, organizations
engaged in military research, and such other governmental
agencies as may be deemed advisable; (2) The Nazi Party, its
formations, affiliated associations and supervised
organizations; (3) All police organizations, including
security and political police; (4) Important economic
organizations and industrial establishments including those
controlled by the Nazi Party or its personnel; (5)
Institutes and special bureaus devoting themselves to
racial, political, militaristic or similar research or
propaganda.
7. Demilitarization:
a. In your zone you will assure that
all units of the German armed forces, including
para-military organizations, are dissolved as such, and that
their personnel are promptly disarmed and controlled. Prior
to their final disposition, you will arrest and hold all
military personnel who are included under the provisions of
paragraph 8.
b. The Control Council should proclaim, and in your zone you
will effectuate, the total dissolution of all military and
pare-military organizations, including the General Staff,
the German Officers Corps, the Reserve Corps and military
academies, together with all associations which might serve
to keep alive the military tradition in Germany.
c. You will seize or destroy all arms, ammunition and
implements of war and stop the production thereof.
d. You will take proper steps to destroy the German war
potential, as set forth elsewhere in this
directive.
8. Suspected War Criminals and
Security Arrests:
a. You will search out, arrest, and
hold, pending receipt by you of further instructions as to
their disposition, Adolf Hitler, his chief Nazi associates,
other war criminals and all persons who have participated in
planning or carrying out Nazi enterprises involving or
resulting in atrocities or war crimes.
b. All persons who, if permitted to remain at large would
endanger the accomplishment of your objectives will also be
arrested and held in custody until trial by an appropriate
semi-judicial body to be established by you. The following
is a partial list of the categories of persons to be
arrested in order to carry out this policy:
[NOTE: There follows at this point in the directive a
detailed list of categories of Nazi war criminals and others
who are to be arrested. Some of these have not yet been
found. It is considered that to publish the categories at
this time would put the individuals concerned on notice and
would interfere with their apprehension and punishment,
where appropriate. The list of categories is, therefore,
withheld from publication for the present.]
If in the light of conditions which you encounter in
Germany, you believe that it is not immediately feasible to
subject certain persons within these categories to this
treatment, you should report your reasons and
recommendations to your government through the Joint Chiefs
of Staff. If you believe it desirable, you may postpone the
arrest of those whose cases you have reported, pending a
decision communicated to you by the J.C.S. In no event shall
any differentiation be made between or special consideration
be accorded to persons arrested, either as to manner of
arrest or conditions of detention, upon the basis of wealth
or political, industrial, or other rank or position. In your
discretion you may make such exceptions as you deem
advisable for intelligence or other military
reasons.
9. Political Activities:
a. No political activities of any
kind shall be countenanced unless authorized by you. You
will assure that your military government does not become
committed to any political group.
b. You will prohibit the propagation in any form of Nazi,
militaristic or pan-German doctrines.
c. No German parades, military or political, civilian or
sports, shall be permitted by you.
d. To the extent that military interests are not prejudiced
and subject to the provisions of the three preceding
subparagraphs and of paragraph 10, freedom of speech, press
and religious worship will be permitted. Consistent with
military necessity, all religious institutions will be
respected.
10. Public Relations and Control of
Public Information:
As a member of the Control Council,
you will endeavor to obtain agreement for uniform or
coordinated policies with respect to (a) control of public
information media in Germany (b) accrediting of foreign
correspondents, (c) press censorship, and (d) issuance of
official news communiqués dealing with Control
Council matters. United States policies in these matters
will be sent to you separately and you will be guided by
these in your negotiations on the Control
Council.
11. German Courts:
a. All extraordinary courts,
including the Volksgerichtshof (People's Court) and the
Sondergerichte (Special Courts), and all courts and
tribunals of the Nazi Party and of its formations,
affiliated associations and supervised organizations will be
abolished immediately.
b. All ordinary criminal, civil and administrative courts,
except those previously re-established by order of the
military government, will be closed. After the elimination
of all Nazi features and personnel you will permit those
which are to exercise jurisdiction within the boundaries of
your zone to resume operations under such regulations,
supervision and control as you may consider appropriate.
Courts which are to exercise jurisdiction over territory
extending beyond the boundaries of your zone will be
reopened only with the express authorization of the Control
Council and under its regulation, supervision and control.
The power to review and veto decisions of German courts
shall be includedwithin the power of supervision and
control.
12. Police: With the exception of
the Reichskriminalpolizei (Criminal Police) all elements of
the Sicherheitspolizei (Security Police), e.g.,
Geheimestaatspolizei (Gestapo), and the Sicherheitsdienst
der S.S. will be abolished. Criminal and ordinary police
will be purged of Nazi personnel and utilized under the
control and supervision of the military
government.
13. Political Prisoners:
Subject to military security and the
interests of the individuals concerned, you will release all
persons found within your zone who have been detained or
placed in custody on grounds of race, nationality, creed or
political opinions and treat them as displaced persons. You
should make provision for the review of convictions of
alleged criminal offenses about which there may be
substantial suspicion of racial, religious or political
persecution, and in which sentences of imprisonment have not
been fully served by persons imprisoned within your
zone.
14. Education:
a. All educational institutions
within your zone except those previously re-established by
Allied authority will be closed. The closure of Nazi
educational institutions such as Adolf Hitler Schulen,
Napolas and Ordensburgen and of Nazi organizations within
other educational institutions will be permanent.
b. A coordinated system of control over German education and
an affirmative program of reorientation will be established
designed completely to eliminate Nazi and militaristic
doctrines and to encourage the development of democratic
ideas.
c. You will permit the reopening of elementary
(Volksschulen), middle (Mittelschulen) and vocational
(Berufsschulen) schools at the earliest possible date after
Nazi personnel has been eliminated. Textbooks and curricula
which are not free of Nazi and militaristic doctrine shall
not be used The Control Council should devise programs
looking toward the reopening of secondary schools,
universities and other institutions of higher learning.
After Nazi features and personnel have been eliminated and
pending the formulation of such programs by the Control
Council, you may formulate and put into effect an interim
program within your zone and in any case may permit the
reopening of such institutions and departments which offer
training which you consider immediately essential or useful
in the administration of military government and the
purposes of the occupation.
d. It is not intended that the military government will
intervene in questions concerning denominational control of
German schools, or in religious instruction in German
schools, except insofar as may be necessary to insure that
religious instruction and administration of such schools
conform to such Allied regulations as are or may be
established pertaining to purging of personnel and
curricula.
15. Arts and Archives: Subject to
the provisions of paragraph 6 above, you will make all
reasonable efforts to preserve historical archives, museums,
libraries and works of art.
PART II.
Economic General Objectives and Methods of
Control
16. You will assure that the German
economy is administered and controlled in such a way as to
accomplish the basic objectives set forth in paragraphs 4
and 5 of this Directive. Economic controls will be imposed
only to the extent necessary to accomplish these objectives,
provided that you will impose controls to the full extent
necessary to achieve the industrial disarmament of Germany.
Except as maybe necessary to carry out these objectives, you
will take no steps (a) looking toward the economic
rehabilitation of Germany, or (b) designed to maintain or
strengthen the German economy.
17. To the maximum extent possible
without jeopardizing the successful execution of
measuresrequired to implement the objectives outlined in
paragraphs 4 and 5 of this directive you will use German
authorities and agencies and subject them to such
supervision and punishment for non-compliance as is
necessary to ensure that they carry out their tasks. For
this purpose you will give appropriate authority to any
German agencies and administrative services you consider
essential; provided, however, that you will at all times
adhere strictly to the provisions of this directive
regarding denazification and dissolution or elimination of
Nazi organizations, institutions, principles, features, and
practices. To the extent necessary you will establish
administrative machinery, not dependent upon German
authorities and agencies, to execute or assure the execution
of the provisions of paragraphs 19, 20, 30, 31, 32, 39 and
40 and any other measures necessary to an accomplishment of
your industrial disarmament objectives.
18. In order to decentralize the
structure and administration of the German economy to the
maximum possible extent, you will
a. ensure that the action required to maintain or restore
essential public utilities and industrial and agricultural
activities is taken as far as possible on a local and
regional basis;
b. on no account propose or approve in the Control Council
the establishment of centralized administration of controls
over the German economy except where such centralization of
administration is clearly essential to the fulfillment of
the objectives listed in paragraphs 4 and 5 of this
directive. Decentralization in administration should not be
permitted to interfere with attainment of the largest
practicable measure of agreement on economic policies in the
Control Council.
19. You will institute or assure the
maintenance of such statistical records and reports as may
be necessary in carrying out the objectives listed in
paragraphs 4 and 5 of this directive.
20. You will initiate appropriate
surveys which may assist you in achieving the objectives of
the occupation. In particular you will promptly undertake
surveys of supplies, equipment and resources in your zone.
You will endeavor to obtain prompt agreement in the Control
Council to the making of similar surveys in the other zones
of occupation, and you will urge appropriate steps to
coordinate the methods and results of these and other future
surveys conducted in the various zones. You will keep the
Control Council, United States Representative on the
Reparation Commission and other appropriate authorities,
currently apprised of the information obtained by means of
intermediate reports or otherwise.
German Standard of Living
21. You will estimate requirements
of supplies necessary to prevent starvation or widespread
disease or such civil unrest as would endanger the occupying
forces. Such estimates will be based upon a program whereby
the Germans are made responsible for providing for
themselves, out of their own work and resources. You will
take all practicable economic and police measures to assure
that German resources are fully utilized and consumption
held to the minimum in order that imports may be strictly
limited and that surpluses may be made available for the
occupying forces and displaced persons and United Nations
prisoners of war, and for reparation. You will take no
action that would tend to support basic living standards in
Germany on a higher level than that existing in any one of
the neighboring United Nations and you will take appropriate
measures to ensure that basic living standards of the German
people are not higher than those existing in any one of the
neighboring United Nations when such measures will
contribute to raising the standards of any such
nation.
22. You will urge upon the Control
Council that uniform ration scales be applied throughout
Germany, that essential items be distributed equitably among
the zones, that net surpluses be made available for export
to Allied countries, and that imports be limited to the net
deficits of Germany as a whole.
Labor, Health, and Social
Insurance
23. You will permit the
self-organization of employees along democratic lines,
subject to such safeguards as may be necessary to prevent
the perpetuation of Nazi or militarist influence under any
guise or the continuation of any group hostile to the
objectives and operations of the occupying
forces.
24. You will permit free collective
bargaining between employees and employers regarding wage,
hour and working conditions and the establishment of
machinery for the settlement of industrial disputes.
Collective bargaining shall be subject to such wage, hour
and other controls, if any, as may be instituted or revived
by your direction.
25. Subject to the provisions of
paragraph 48 of this directive you are authorized to direct
German authorities to maintain or reestablish
nondiscriminatory systems of social insurance and poor
relief.
26. You are authorized to direct the
German authorities to maintain or re-establish such health
services and facilities as may be available to
them.
Agriculture, Industry and Internal
Commerce
27. You will require the Germans to
use all means at their disposal to maximize agricultural
output and to establish as rapidly as possible effective
machinery for the collection and distribution of
agricultural output.
28. You will direct the German
authorities to utilize large-landed estates and public lands
in a manner which will facilitate the accommodation and
settlement of Germans and others or increase agricultural
output.
29. You will protect from
destruction by the Germans, and maintain for such
disposition as is determined by this and other directives or
by the Control Council, all plants, equipment, patents and
other property, and all books and records of large German
industrial companies and trade and research associations
that have been essential to the German war effort or the
German economy. You will pay particular attention to
research and experimental establishments of such
concerns.
30. In order to disarm Germany, the
Control Council should
a. prevent the production, acquisition by importation or
otherwise, and development of all arms, ammunition and
implements of war, as well as all types of aircraft, and all
parts, components and ingredients specially designed or
produced for incorporation therein;
b. prevent the production of merchant ships, synthetic
rubber and oil, aluminum and magnesium and any other
products and equipment on which you will subsequently
receive instructions;
c. seize and safeguard all facilities used in the production
of any of the items mentioned in this paragraph and dispose
of them as follows: (1) remove all those required for
reparation; (2) destroy all those not transferred for
reparation if they are especially adapted to the production
of the items specified in this paragraph and are not of a
type generally used in industries permitted to the Germans
(cases of doubt to be resolved in favor of destruction); (3)
hold the balance for disposal in accordance with
instructions which will be sent to you. Pending agreement in
the Control Council you will take these measures in your own
zone. You will not postpone enforcement of the prohibitions
contained in subparagraphs a and b and the instructions in
subparagraph c without specific approval of your government
through the Joint Chiefs of Staff except that, in your
discretion, you may permit the production of synthetic
rubber and oil, aluminum and magnesium, to the minimum
extent necessary to meet the purposes stated in paragraphs 4
and 5 of the directive pending action by the Joint Chiefs of
Staff upon such recommendation for postponement as you may
make.
31. As an additional measure of
disarmament, the Control Council should
a. prohibit initially all research activities and close all
laboratories, research institutions and similar technical
organizations except those considered necessary to the
protection of public health;
b. abolish all those laboratories and related institutions
whose-work has been connected with the building of the
German war machine, safeguard initially such laboratories
and detain such personnel as are of interest to your
technological investigations, and thereafter remove or
destroy their equipment;
c. permit the resumption of scientific research in specific
cases, only after careful investigation has established that
the contemplated research will in no way contribute to
Germany's future war potential and only under appropriate
regulations which (1) define the specific types of research
permitted, (2) exclude from further research activity any
persons who previously held key positions in German war
research, (3) provide for frequent inspection, (4) require
free disclosure of the results of the research and (5)
impose severe penalties, including permanent closing of the
offending institution, whenever the regulations are
violated. Pending agreement in the Control Council you will
adopt such measures in your own zone.
32. Pending final Allied agreements
on reparation and on control or elimination of German
industries that can be utilized for war production, the
Control Council should
a. prohibit and prevent production of iron and steel,
chemicals, non-ferrous metals (excluding aluminum and
magnesium), machine tools, radio and electrical equipment,
automotive vehicles, heavy machinery and important parts
thereof, except for the purposes stated in paragraphs 4 and
5 of this directive
b. prohibit and prevent rehabilitation of plant and
equipment in such industries except for the purposes stated
in paragraphs 4 and 5 of this directive; and
c. safeguard plant and equipment in such industries for
transfer on reparation account. Pending agreement in the
Control Council, you will put such measures into effect in
your own zone as soon as you have had an opportunity to
review and determine production necessary for the purposes
stated in paragraphs 4 and 5 of this directive.
33. The Control Council should adopt
a policy permitting the conversion of facilities other than
those mentioned in paragraphs 30 and 32 to the production of
light consumer goods, provided that such conversion does not
prejudice the subsequent removal of plant and equipment on
reparation account and does not require any imports beyond
those necessary for the purposes specified in paragraphs 4
and 5 of this directive. Pending agreement in the Control
Council, you may permit such conversion in your
zone.
34. Subject to the provisions of
paragraphs 30 and 32, the Control Council should assure that
all feasible measures are taken to facilitate, to the
minimum extent necessary for the purposes outlined in
paragraphs 4 and 5 of this directive.
a. repairs to and restoration of essential transportation
services and public utilities;
b. emergency repair and construction of the minimum shelter
required for the civilian population;
c. production of coal and any other goods and services
(excluding goods specified in paragraphs 30and 32 unless
measures to facilitate production are specifically approved
by this Government through the Joint Chiefs of Staff)
required for the purposes outlined in paragraphs 4 and 5 of
this directive. You will assure that such measures are taken
in your own zone pending agreement in the Control
Council.
35. In your capacity as zone
commander and as member of the Control Council you will take
steps to provide for the equitable interzonal distribution
and the movement of goods and services essential to the
purposes set forth in paragraphs 4 and 5 of this
directive.
36. You will prohibit all cartels or
other private business arrangements and cartel-like
organizations, including those of a public or quasi-public
character such as the Wirtschaftsgruppen providing for the
regulation of marketing conditions, including production,
prices, exclusive exchange of technical information and
processes, and allocation of sales territories. Such
necessary public functions as have been discharged by these
organizations shall be absorbed as rapidly as possible by
approved public agencies.
37. It is the policy of your
government to effect a dispersion of the ownership and
control of German industry. To assist in carrying out this
policy you will make a survey of combines and pools,
mergers, holding companies and interlocking directorates and
communicate the results, together with recommendations, to
your government through the Joint Chiefs of Staff. You will
endeavor to obtain agreement in the Control Council to the
making of this survey in the other zones of occupation and
you will urge the coordination of the methods and results of
this survey in the various zones.
38. With due regard to paragraph 4
a, the Control Council should adopt such policies as are
clearly necessary to prevent or restrain inflation of a
character or dimension which would definitely endanger
accomplishment of the objectives of the occupation. The
Control Council, in particular, should direct and empower
German authorities to maintain or establish controls over
prices and wages and to take the fiscal and financial
measures necessary to this end. Pending agreement in the
Control Council you will assure that such measures as you
consider necessary are taken in your own zone. Prevention or
restraint of inflation shall not constitute an additional
ground for the importation of supplies, nor shall it
constitute an additional ground for limiting removal,
destruction or curtailment of productive facilities in
fulfillment of the program for reparation, demilitarization
and industrial disarmament.
Power, Transportation, and
Communications
39. Both as member of the Control
Council and zone commander you will take appropriate steps
to ensure that
a. power, transportation and communications facilities are
directed in such a way as to carry out the objectives
outlined in paragraphs 4 and 5 of this directive;
b. Germans ale prohibited and prevented from producing,
maintaining or operating all types of aircraft. You will
determine the degree to which centralized control and
administration of power, transportation and communications
is clearly necessary for the objectives stated in paragraphs
4 and 5 and urge the establishment of this degree of
centralized control and administration by the Control
Council.
Foreign Trade and
Reparation
40. The Control Council should
establish centralized control over all trade in goods and
services with foreign countries. Pending agreement in the
Control Council you will impose appropriate controls in your
own zone.
41. Both as member of the Control
Council and as zone commander you will take appropriate
steps to ensure that
a. the foreign trade controls are designed to carry out the
objectives stated in paragraphs 4 and 5 of this
directive;
b. imports which are permitted and furnished to Germany are
confined to those unavoidably necessary to the objectives
stated in paragraphs 4 and 5;
c. exports to countries other than the United Nations are
prohibited unless specifically authorized by the Allied
governments.
42. Both as member of the Control
Council and as zone commander you will adopt a policy which
would forbid German firms to participate in international
cartels or other restrictive contracts and arrangements and
order the prompt termination of all existing German
participations in such cartels, contracts and
arrangements.
43. You will carry out in your zone
such programs of reparation and restitution as are embodied
in Allied agreements and you will seek agreement in the
Control Council on any policies and measures which it may be
necessary to apply throughout Germany in order to ensure the
execution of such programs.
PART III
Financial
44. You will make full application
in the financial field of the principles stated elsewhere in
this directive and you will endeavor to have the Control
Council adopt uniform financial policies necessary to carry
out the purposes stated in paragraphs 4 and 5 of this
directive. You will take no steps designed to maintain,
strengthen or operate the German financial structure except
in so far as may be necessary for the purposes specified in
this directive.
45. The Control Council should
regulate and control to the extent required for the purposes
set forth in paragraphs 4 and 5 the issue and volume of
currency and the extension of credit in Germany and in
accordance with the following principles:
a. United States forces and other Allied forces will use
Allied Military marks and Reichsmark currency or coins in
their possession. Allied Military marks and Reichsmark
currency and coin now in circulation in Germany will be
legal tender without distinction and will be interchangeable
at the rate of one Allied Military mark for one Reichsmark.
Reichskreditkassenscheine and other German military currency
will not be legal tender in Germany.
b. The Reichsbank, the Rentenbank or any other bank or
agency may be permitted or required to issue bank notes and
currency which will be legal tender; without such
authorization no German governmental or private bank or
agency will be permitted to issue bank notes or
currency.
c. The German authorities may be required to make available
Reichsmark currency or credits free of cost and in amounts
sufficient to meet all the expenses of the forces of
occupation, including the cost of Allied Military Government
and including to the extent that compensation is made
therefor, the cost of such private property as may be
requisitioned, seized, or otherwise acquired, by Allied
authorities for reparations or restitution purposes. Pending
agreement in the Control Council you will follow these
policies in your own zone. You will receive separate
instructions relative to the currency which you will use in
the event that for any reason adequate supplies of Allied
Military marks and Reichsmarks are not available, or if the
use of such currency is found undesirable. You will not
announce or establish in your zone, until receipt of further
instructions, any general rate of exchange between the
Reichsmark on the one hand and the U. S. dollar and other
currencies on the other. However, a rate of exchange to be
used exclusively for pay of troops and military accounting
purposes in your zone will be communicated separately to
you.
46. Subject to any agreed policies
of the Control Council, you are authorized to take the
following steps and to put into effect such further
financial measures as you may deem necessary to accomplish
the purposes of your occupation:
a. To prohibit, or to prescribe regulations regarding
transfer or other dealings in private or public securities
or real estate or other property.
b. To close banks, but only for a period long enough for you
to introduce satisfactory control, to remove Nazi and other
undesirable personnel, and to issue instructions for the
determination of accounts to be blocked under subparagraph
48 e below.
c. To close stock exchanges, insurance companies, and
similar financial institutions for such periods as you deem
appropriate.
d. To establish a general or limited moratorium or moratoria
only to the extent clearly necessary to carry out the
objectives stated in paragraphs 4 and 5 of this
directive.
47. Resumption of partial or
complete service on the internal public debt at the earliest
feasible date is deemed desirable. The Control Council
should decide the time and manner of such
resumption.
48. Subject to any agreed policies
of the Control Council,
a. You will prohibit: (1) the payment of all military
pensions, or emoluments or benefits, except compensation for
physical disability limiting the recipient's ability to
work, at rates which are no higher than the lowest of those
for comparable physical disability arising from non-military
causes. (2) the payment of all public or private pensions or
other emoluments or benefits granted or conferred: (a) by
reason of membership in or services to the former Nazi
party, its formations, affiliated associations or supervised
organizations, (b) to any person who has been removed from
an office or position in accordance with paragraph 6, and
(c) to any person arrested and detained in accordance with
paragraph 8 during the term of his arrest, or permanently,
in case of his subsequent conviction.
b. You will take such action as may be necessary to insure
that all laws and practices relating to taxation or other
fields of finance, which discriminate for or against any
persons because of race, nationality, creed or political
opinion, will be amended, suspended, or abrogated to the
extent necessary to eliminate such discrimination.
c. You will hold the German authorities responsible for
taking such measures in the field of taxation and other
fields of public finance, including restoration of the tax
system and maintenance of tax revenues, as will further the
accomplishment of the objectives stated in paragraphs 4 and
5.
d. You will exercise general supervision over German public
expenditures in order to ensure that they are consistent
with the objectives stated in paragraphs 4 and 5.
e. You will impound or block all gold, silver, currencies,
securities, accounts in financial institutions, credits,
valuable papers, and all other assets falling within the
following categories:
(1) Property owned or controlled directly or indirectly, in
whole or in part, by any of the following: (a) The German
Reich, or any of the Lander, Gaue or provinces, any Kreis,
Municipality or other similar local subdivision; or any
agency or instrumentality of any of them including all
utilities, undertakings, public corporations or monopolies
under the control of any of the above; (b) Governments,
nationals or residents of other nations, including those of
territories occupied by them, at war with any of the United
Nations at any time since 1 September 1939; (c) The Nazi
Party, its formations, affiliated associations and
supervised organizations, its officials, leading members and
supporters; (d) All organizations, clubs or other
associations prohibited or dissolved by military government;
(e) Absentee owners, of non-German nationality including
United Nations and neutral governments and Germans outside
of Germany; (f) Any institution dedicated to public worship,
charity, education or the arts and sciences which has been
used by the Nazi Party to further its interests or to cloak
its activities; (g) Persons subject to arrest under
provisions of paragraph 8, and all other persons specified
by military government by inclusion in lists or
otherwise.
(2) Property which has been the subject of transfer under
duress or wrongful acts of confiscation, disposition or
spoliation, whether pursuant to legislation or by procedure
purporting to follow forms of law or otherwise.
(3) Works of art or cultural material of value or
importance, regardless of the ownership thereof. You will
take such action as will insure that any impounded or
blocked assets will be dealt with only as permitted under
licenses or other instructions which you may issue. In the
case particularly of property blocked under (1) (a) above,
you will proceed to adopt licensing measures which while
maintaining such property under surveillance would permit
its use in consonance with this directive. In the case of
property blocked under (2) above, you will institute
measures for prompt restitution, inconformity with the
objectives stated in paragraphs 4 and 5 and subject to
appropriate safeguards to prevent the cloaking of Nazi and
militaristic influence.
49. All foreign exchange
transactions, including those arising out of exports and
imports, shall be controlled with the aim of preventing
Germany from developing a war potential and of achieving the
other objectives set forth in this directive. To effectuate
these purposes the Control Council should
a. Seek out and reduce to the possession and control of a
special agency all German (public and private) foreign
exchange and external assets of every kind and description
located within or outside Germany.
b. Prohibit, except as authorized by regulation or license,
all dealings in gold, silver, foreign exchange, and all
foreign exchange transactions of any kind. Make available
any foreign exchange proceeds of exports for payment of
imports directly necessary to the accomplishment of the
objectives stated in paragraphs 4 and 5 of this directive,
and authorize no other outlay of foreign exchange assets
except for purposes approved by the Control Council or other
appropriate authority.
c. Establish effective controls with respect to all foreign
exchange transactions, including: (1) Transactions as to
property between persons inside Germany and persons outside
Germany; (2) Transactions involving obligations owed by or
to become due from any person in Germany to any person
outside Germany; and (3) Transactions involving the
importation into or exportation from Germany of any foreign
exchange asset or other form of property. Pending agreement
in the Control Council, you will take in your zone the
action indicated in subparagraphs a, b and c above.
Accordingly, you will in your zone reduce to the possession
and control of a special agency established by you, within
your Command, all German foreign exchange and external
assets as provided in subparagraph a. You will endeavor to
have similar agencies for the same purpose established in
the other zones of occupation and to have them merged as
soon as practicable in one agency for the entire occupied
territory. In addition you will provide full reports to your
government with respect to all German foreign exchange and
external assets.
50. No extension of credit to
Germany or Germans by any foreign person or Government shall
be permitted except that the Control Council may in special
emergencies grant permission for such extensions of
credit.
51. It is not anticipated that you
will make credits available to the Reichsbank or any other
bank or to any public or private institution. If, in your
opinion, such action becomes essential, you may take such
emergency actions as you may deem proper, but in any event,
you will report the facts to the Control Council.
52. You will main such accounts and
records as may be necessary to reflect the financial
operations of the military government in your zone and you
will provide the Control Council with such information as it
may require, including information in connection with the
use of currency by your forces, any governmental
settlements, occupation costs, and other expenditures
arising out of operations or activities involving
participation of your forces.
Source: Department of
State: Foreign Relations of the United States, 1945, vol. 3,
European Advisory Commission; Austria; Germany, p.
484
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