B. ECONOMIC PRINCIPLES 11. In order to eliminate Germany's war potential, the production of arms, ammunition and implements of war as well as all types of aircraft and sea-going ships shall be prohibited and prevented. Production of metals, chemicals, machinery, and other items that are directly necessary to a war economy shall be rigidly controlled and restricted to Germany's approved post-war peacetime needs to meet the objectives stated in Paragraph 15. Productive capacity not needed for permitted production shall be removed in accordance with the reparations plan recommended by the Allied Commission on Reparations and approved by the Governments concerned or if not removed shall be destroyed. 12. At the earliest practicable date, the German economy shall be decentralized for the purpose of eliminating the present excessive concentration of economic power as exemplified in particular by cartels, syndicates, trusts and other monopolistic arrangements. 13. In organizing the German Economy, primary emphasis shall be given to the development of agriculture and peaceful domestic industries. 14. During the period of occupation Germany shall be treated as a single economic unit. To this end common policies shall be established in regard to: (a) mining and industrial production and its allocation; (c) wages, prices and rationing; (d) import and export programs for Germany as a whole; In applying these policies account shall be taken, where appropriate, of varying local conditions. 15. Allied controls shall be imposed upon the German economy but only to the extent necessary: (a) to carry out programs of industrial disarmament, demilitarization, of reparations, and of approved exports and imports. (b) to assure the production and maintenance of goods and services required to meet the needs of the occupying forces and displaced persons in Germany and essential to maintain in Germany average living standards not exceeding the average of the standards of living of European countries. (European countries means all European countries excluding the United Kingdom and the U. S. S. R.) (c) to ensure in the manner determined by the Control Council the equitable distribution of essential commodities between the several zones so as to produce a balanced economy throughout Germany and reduce the need for imports. (d) to control German industry and all economic and financial international transactions including exports and imports, with the aim of preventing Germany from developing a war potential and of achieving the other objectives named herein. (e) to control all German public or private scientific bodies, research and experimental institutions, laboratories, et cetera, connected with economic activities. 16. In the imposition and maintenance of economic controls established by the Control Council, German administrative machinery shall be created and the German authorities shall be required to the fullest extent practicable 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 any breakdown in these controls will rest with themselves. Any German controls which may run counter to the objectives of occupation will be prohibited. 17. Measures shall be promptly taken: (a) to effect essential repair of transport; (c) to maximize agricultural output; and (d) to effect emergency repair of housing and essential utilities. 18. Appropriate steps shall be taken by the Control Council to exercise control and the power of disposition over German-owned external assets not already under the control of United Nations which have taken part in the war against Germany. 19. Payment of Reparations should leave enough resources to enable the German people to subsist without external assistance. In working out the economic balance of Germany the necessary means must be provided to pay for imports approved by the Control Council in Germany. The proceeds of exports from current production and stocks shall be available in the first place for payment for such imports. The above clause will not apply to the equipment and products referred to in paragraphs 4 (a) and 4 (b) of the Reparations Agreement. 106. DRAFT TREATY FOR THE DISARMAMENT AND DEMILITARIZATION OF GERMANY, SUBMITTED TO THE COUNCIL OF FOREIGN MINISTERS BY THE UNITED STATES SECRETARY OF STATE (BYRNES), APRIL 29, 1946 1 PREAMBLE On June 5, 1945, the Government of the United States, the Union of Soviet Socialist Republics, the United Kingdom, and the French Republic declared their intention to effect the total disarmament and demobilization of Germany. In substantial measure this intention has already been fulfilled. Nothing shall prevent or delay the completion of the process. It remains to ensure that the total disarmament and demilitarization of Germany will be enforced as long as the peace and security of the world may require. Only this assurance will permit the nations of Europe and the world to return single-mindedly to the habits of peace. To achieve this objective, the Governments of the United States, the Union of Soviet Socialist Republics, the United Kingdom, and the French Republic agree to engage in the common undertaking defined in this treaty. Department of State Bulletin, volume XIV, p. 815. ARTICLE I. The high contracting parties agree that they shall take steps jointly to ensure that: (a) All German armed forces, including land, air, anti-aircraft and naval forces, all para-military forces, such as the SS, the SA and the Gestapo, and all organizations auxiliary to the foregoing shall be and shall remain completely disarmed, demobilized and disbanded. (b) The German general staff and the staffs of any para-military organizations shall be and shall remain disbanded. (c) No German military or para-military organization in any form or guise shall be permitted in Germany. (d) The manufacture, production, or importation of military equipment in Germany shall be prevented. In particular, the high contracting parties shall prevent the manufacture, production, or importation of: (1) All arms, ammunition, explosives, military equipment, military stores and supplies and other implements of war of all kinds; (2) All fissionable materials for any purpose, except under conditions approved by the high contracting parties; (3) All naval vessels of all classes, both surface and submarine, and auxiliary naval-craft; (4) Áll aircraft of all kinds, aviation equipment and devices, and equipment for anti-aircraft defense. (e) The establishment, utilization or operation for military purposes of any of the following shall be prevented: (1) All military structures, installations and establishments, including but not limited to military air fields, seaplane bases and naval bases, military and naval storage depots, permanent and temporary land and coast fortifications, fortresses and other fortified areas; (2) All factories, plants, shops, research institutions, laboratories, testing stations, technical data, patents, plans, drawings and inventions, designed or intended to produce or to facilitate the production of items listed in paragraph (d) above. (f) Under conditions which may be established by the high contracting parties, the demilitarization and disarmament required by this article shall be subject of the following exceptions and to no others: (1) The formation and employment of such detachments of German civil police, and their equipment with such types and quantities of imported small arms, as may be essential to the maintenance of public security; and (2) The importation of minimum quantities of those items listed in paragraph (d) (1) above, such as explosives or ingredients of explosives, which may be essential for purposes of construction, mining, agriculture or for other peaceful purposes. ARTICLE II. To implement the disarmament and demilitarization provisions set forth in Article I, the high contracting parties agree that they shall make provision for a system of quadripartite inspection, which shall become operative upon the termination of the Allied occupation of Germany. This system of inspection shall be conducted through a Commission of Control to be established by the high contracting parties on a quadripartite basis. The Commission of Control, through its officers and agents, shall conduct, in any and all parts of German territory, such inspections, inquiries and investigations as it may deem necessary to determine whether the disarmament and demilitarization provisions set forth in Article I are being observed. ARTICLE III. The high contracting parties agree that for the duration of the period of Allied occupation of Germany, they shall, through the Allied Control Council and in their respective zones, enforce strictly the disarmament and demilitarization provisions set forth in Article I. They agree further that the express acceptance by Germany of the provisions of Articles I and II shall be an essential condition to the termination of Allied occupation of German territory. ARTICLE IV. The Commission of Control provided for in Article II shall keep the high contracting parties and the Security Council of the United Nations informed of the results of the inspections, inquiries and investigations authorized by that article. The Commission of Control shall submit a report to the high contracting parties whenever in the opinion of a majority of the members of the Commission, it has reason to believe that a violation of the disarmament and demilitarization provisions of Article I has occurred or is about to occur. In conjunction with such report the Commission shall submit a recommendation for action on the part of the high contracting parties which appears appropriate to a majority of the members of the Commission. Upon receipt of such report and recommendations, the high contracting parties will, by common agreement, take such prompt actionincluding action by air, sea or land forces-as may be necessary to assure the immediate cessation or prevention of such violation or attempted violation. The high contracting parties shall immediately report to the Security Council of the United Nations the action taken or to be taken. The high contracting parties agree, that, within six months of the effective date of this treaty, they shall consult for the purpose of negotiating special quadripartite agreements which shall provide in the greatest practicable detail for inspection, inquiry and investigation by the Commission of Control, for the numbers and types of forces which each party shall make available for purposes of this treaty, for their degree of readiness and general location, and for the nature of the facilities and assistance which each shall provide. Such special quadripartite agreements shall be subject to ratification by the high contracting parties in accordance with their respective constitutional processes. ARTICLE V. This treaty shall be ratified by the high contracting parties in accordance with their respective constitutional processes. The ratifications shall be deposited with the government of (blank), which shall notify all the high contracting parties of each deposit. This treaty shall come into force upon the deposit of ratifications by each of the hign contracting parties. This treaty shall remain in force for a period of 25 years from its effective date. The high contracting parties agree to consult six months before the date of expiration of this treaty for the purpose of determining whether the interests of international peace and security require its renewal, with or without modification, or whether the German people have so far progressed in the reconstruction of their life on a democratic and peaceful basis that the continued imposition of the controls defined herein is no longer necessary. 107. TREATY OF PEACE WITH ITALY, FEBRUARY 10, 1947 (EXCERPT) 1 Each of the military, naval and air clauses of the present Treaty shall remain in force until modified in whole or in part by agreement between the Allied and Associated Powers and Italy or, after Italy becomes a member of the United Nations, by agreement between the Security Council and Italy. SECTION II-GENERAL LIMITATIONS ARTICLE 47 1. (a) The system of permanent Italian fortifications and military installations along the Franco-Italian frontier, and their armaments, shall be destroyed or removed. (b) This system is deemed to comprise only artillery and infantry fortifications whether in groups or separated, pillboxes of any type, protected accommodation for personnel, stores and ammunition, observation posts and military cableways, whatever may be their importance and actual condition of maintenance or state of construction, which are constructed of metal, masonry or concrete or excavated in the rock. 2. The destruction or removal, mentioned in paragraph 1 above, is limited to a distance of 20 kilometers from any point on the frontier as defined by the present Treaty, and shall be completed within one year from the coming into force of the Treaty. 3. Any reconstruction of the above-mentioned fortifications and installations is prohibited. 1 Department of State, Publication 2743. |