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formation on goods available for export, transmit that information through channels to the Export-Import Section, and assist in the actual movement of commodities once the contract has been signed and finalized by OMGUS. Special representatives of the Laender attached to the Export-Import Section take care of day-to-day transactions. In order to maximize benefits for the Zone as a whole, there was established a Foreign Trade Sub-Committee of the Main Economics Committee of the Laenderrat at Stuttgart. In this Committee problems of policy and procedure affecting the three Laender alike are studied and adjusted. The working staff of the Committee and its agents also assist in the handling of large export and import transactions that affect more than one Land.

At the Land level as well as at the Zone level, Export-Import Sections of the respective Military Government Offices exercise supervision and control and lend assistance in the endeavor to make the U. S. Zone pay its way.

The export of goods from the U. S. Zone of Germany may originate either at the request of a foreign country for certain items, or upon the recommendation from German suppliers that goods are available for export. In the event of a request by a foreign country, an investigation is made through German contacts as to the availability of the goods in the U. S. Zone, the specifications, Reichsmark price and delivery date. In the case of goods offered by German suppliers, foreign markets are investigated and a buyer located. In either case the proposed export must be approved by the proper technical Branches and the Requirements and Allocations Branch of OMGUS.

Upon the determination of goods for exports, price and terms are agreed upon with the purchasing country, and a contract to this effect drafted, to be signed both by representatives of the country and of OMGUS. Transportation arrangements are made, and the goods shipped.

The initial request for an import may come to the Export-Import Section either from one of the technical branches in OMGUS or from German firms or individuals through the German government agencies. In either case this request must have the endorsement of the Requirements and Allocations Branch of OMGUS.

When material has been located and a price agreed upon, a contract is draftea, which is subsequently signed by OMGUS and the supplying country and arrangements for shipment are made. Upon its arrival in the U. S. Zone of Germany the import is signed for by a Military Government representative, who turns it over to the German authorities for distribution according to arrangements approved by Military Government.

The whole administrative machinery is set up in such a fashion that it can be converted with a minimum of loss and delay into an integral part of the prospective foreign trade administration for Germany as a whole.

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Tires made of buna, a product of the
U. S. Zone.

Signal Corps Photo

The slow revival of Germany's internal trade has been one of the major difficulties in the resurgence of the economy of the U. S. Zone of occupation. The pattern of industry of the former Reich was based upon mutual interdependence of industries located throughout Germany for raw materials, machine parts and semi-fabricated items. Hence, industry during the first months was only able to survive if stocks were available. There was a similar situation in agriculture with regard to seeds, machinery and fertilizers. Thus the newly erected zonal boundaries of segmented Germany have been one of the major factors in the almost complete stagnation of internal trade. Other handicaps are the disrupted banking, postal service and transportation systems and the acute shortages of essential goods.

It is one of the tenets of the Potsdam Protocol that indigenous supplies should be equitably distributed among the zones and that quadripartite controls should be imposed only to the extent necessary to achieve this objective. In general, the Allied Control Council has maintained a "hands off" policy and has taken only one important action which is negative in character. In

1. All foodstuffs, including foodstuffs for animals, and all agricultural products used in producing or processing food; 2. Vegetable seeds, field seeds, and seed potatoes; 3. All livestock; 4. Alcohol and alcoholic beverages; 5. Tobacco and tobacco products; 6. Soap and soap ingredients; 7. Textiles, raw materials and texile products; 8. Raw skins leather, footwear, and leather products for industrial purpose; 9. Fertilizers; 10. Fuels combustibles of all types, lubricants and lubricating products; 11. Lumber and sawn wood with the exception of wood for fuel; 12. Wood pulp, cellulose and paper, excepting articles made out of paper; 13. Window glass and optical glass; 14. Natural and synthetic rubber and rubber products; 15. Electrical machinery and industrial electrical equipment; 16. Equipment and machinery used exclusively in mines, and explosive materials; 17. Highway vehicles and parts, vehicle accessories, tractors, and parts, locomotives and rolling stock, highway construction and maintenance machinery.

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