familiar Reich rationing system was also utilized, and this gave close control over consumption.

It was contemplated that all of the German distributing organizations would be dissolved, and the business handed back to industry, as soon as the economic stabilization of the country would make it feasible. The time is now approaching, and the first dissolution, that of the lubrication marketing association, will occur on 31 December 1946. On that date, too, the first steps will be taken to modify the motor fuel distributing association in the direction of final dissolution.

German Responsibility in the U.S. Zone:

It has been the policy to delegate increasing authority and responsibility to German officials in the U. S. Zone. To this end, the formation of POL committees in the Laender has been encouraged, and they have taken over the functions of rationing, and determining approved requirements; review by Military Government POL officers is now necessary only at Land level.

Since petroleum is primarily a service industry, the volume required at any time is determined by the general activity of industry as a whole. Therefore the future of the German petroleum

business will be governed by the ultimate level of industry, and is not subject to control by the oil industry itself.

Examination of the Quadripartite “Level of Industry” decision makes it obvious that a definite minimum of petroleum products will be required to operate at the indicated level. These quantities are estimated to be as follows for the U. S. Zone for the year 1949;

Requirements

(metric tons) Gasoline

385,000 Diesel

330,000 Kerosene

48,000 Lubricants

84,000 SBPa)

20,250 Wax

11,250 Asphalt

92,000 a) Special Boil Point Lubricants. The production and distribution of these quantities will require all of the available undamaged and salvageable equipment and facilities in the Western Zones, and therefore nothing has been declared available for reparations. To reduce the expenditure of foreign exchange to a minimum, the refining of imported crude oil may be under strains, and this will require all of the refining capacity now in existence in Germany, either directly or as a source of replacements parts. This activity depends on the price of crude oil, the price of imported finished products, and the price to be received for certain exported by-products. The whole question is being studied, but already it is clear that there is no surplus petroleum industry equipment available for reparations. U.S. Dollar Requirements for the Supply of Civilian POL

For the first half of the fiscal year 1946–47, allocations from U. S. Army stocks for essential civilian requirements have been made as follows:

Gasoline Diesel Oil Kerosene

(metric tons)
Greater Hesse

3,549
4,700

700
Wuerttemberg-Baden 3,139.5

4,125

700
Bavaria
6,961,5 10,000

1,400
Bremen Enclave

25

725
Fishing Fleet

75
450

50

50

It is estimated that the dollar cost per month of the above allocation will be: