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which was the exclusive sales agency for all German nitrogen producers. Because of the war, no international dyestuffs cartel is presently in operation. To aid in preventing its reactivation, a complete study is being made of the

The great I. G. Farben corporation is already subject under Law No. 9 to direct control by Military Government. Many reports on I. G. Farben have been prepared and are being prepared currently. Among others, reports have been completed recently on Vereinigte Stahlwerke and Siemens and Halske, next to I. G. Farben the largest corporations in Germany, dominating their respective fields of steel production and electrical engineering. The annual production of Vereinigte Stahlwerke alone was nearly twice the 5,800,000 tons which it is now proposed under the level of Industry Plan will be the total annual production for all German steel firms. In its peak year Siemens and Halske employed a quarter of a million people and had sales of a billion Reichsmarks. It accounted for one-fourth of all German electrical exports. To maintain its powerful position it participated in over two thousand cartel and patent agreements, covering every phase of the electrical industry.

Coal Monopoly Being Curbed in U. S. Zone

Investigations are continuing on the Hugo Stinnes enterprises, AEG (the second largest electrical firm in Germany), the Schering pharmaceutical corporation, the Alkali Export Association, the Kohlenkontor at Mannheim, the Fendel Corporation in Rhine River shipping, and Kontinental Oel, A. G., the organization used by the Nazi Government to exploit oil resources in conquered and occupied countries. Several reports have been prepared on the coal industry of Germany, as well as on the oil industry. As a result of the studies on the coal and oil industries, many of the restrictive conditions inherent in the Kohlenkontor of Mannheim have been eliminated and plans are being considered for its dissolution. Plans for the modification and possible elimination of the most important of the oil distributing agencies are also under way.

Personnel from this Branch work with joint British-American detachments at Dusseldorf and Frankfurt on the solution of current problems in the operation of plants in the American Zone which are part of organizations with headquarters in the British Zone, such as Krupp and Vereinigte Stahlwerke. Among others, studies are being prepared by these detachments on the Hermann Goering Works, Gutehoffnungshuette, the Flick interests, and the Degussa combine. General and spot investigations are also carried on at these offices.

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I. G. Farben

The chart on page 192 shows the tremendous role I. G. Farben played in German war production and indicates its productive capacity at the end of the war. Although best known as a chemical firm, I. G. Farben was a major producer of textiles, pharmaceuticals, photographic equipment, light metal products and many others. Since the seizure the I. G. Farben Control Office at Griesheim has embarked on program to destroy the monopolistic position of I. G. Farben and to eliminate the tremendous war potential which it represents.

"12. At the earliest practicable date, the German economy
shall be decentralized for the purpose of eliminating the
present excessive concentration of economic powers as
exemplified in particular by cartels, syndicates, trusts and
other monopolistic arrangements.''

Economic Principles, Report on the Tripartite
Conference of Berlin, 2 August 1945

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Scientific

cientific research and its application devoted to peaceful pursuits is a vital factor in world economy and progress. History is replete with evidence that discoveries of the laboratory when turned to man's use have not only revolutionized industry but have also altered the habit and thinking of civilized people.

But as valuable and beneficial as scientific research is when applied to the welfare of mankind, its fruits, when directed toward destructive forces will, as formerly, continue to be powerful and dire weapons in the hands of an aggressor.

The skill of German scientists, the elaborate nature of German scientific organizations, the completeness of their laboratory equipment and facilities and the results heretofore achieved by scientific research in Germany, are historical and powerful reminders that research of all types constitutes one of the most positive and dangerous German war potentials. It is understand able therefore that the problem of the control of research and its application was one of the first to be considered upon a quadripartite basis.

Sensing the vital necessity of permitting and encouraging public and private research devoted to peaceful pursuits in Germany, quadripartite representatives faced the problem of accomplishing this end and, at the same time, of preventing application of research aimed at the generation of a war potential.

The solution of this problem is Control Council Law No. 25, Control of Scientific Research, enacted 29 April 1946, and Military Regulations to implement it.

The difficulty of effectively controlling fundamental research is recognized as is the fact that fundamental research as such, limited to the laboratory stage, cannot in itself be considered menacing. Efforts, therefore, are largely confined to the drafting of policies and regulations directed toward the rigid control of the application of fundamental research in order to assure that potential war secrets of the laboratory may never reach the testing or proving stage preparatory to factory production of the war items involved.

Accordingly, research of an exploratory character in any field, directed toward the discovery of new theories, principles or laws of nature, or new compounds, or materials is permitted if it is not of a direct military nature, or of it does not require for its execution important installations which among other applications could be utilized for applied research work in the military field. This leaves open a wide field for laboratory work in connection with German peacetime economy both in public and private institutions of an educational and industrial nature.

However, as pertains to applied research, quadripartite regulations assume a significantly rigid character, for they not only prevent applied research and development and all studies of material of a wholly or primarily military nature, but, in addition, restrict numerous peacetime endeavors which might be converted to wartime channels. Applied research is defined by the law as research directed to the conversion of the results of fundamental research to pilot plant or engineering development and to new engineering undertakings in general, including field trials of new devices and the testing of pre

, production models.

In order, however, to permit the testing of laboratory results beneficial to industry and a peaceful economy to be carried on, licenses may be obtained after proof has been given that the applied research to be conducted is, in fact, of a peacetime character. To assure further that units carrying out permitted research in academic, technological or industrial organizations do not convert previously licensed research to wartime channels, periodic, detailed reports and a series of checks and investigations will be required.

Stringent penalties are to be imposed for detected breaches of research control regulations.

In summary, the problem of controlling scientific research and development in Germany has been approached in a logical and practical manner, and control limitations have been sensibly imposed. Successful results in the administration of control laws, however, depend to a marked degree upon the character, experience and aggressiveness of the personnel who are chosen for the operation, for only through constant diligence and extreme care in the granting of licenses plus intelligent investigations, can scientific research be guided into and maintained in proper channels.

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