It is suggested that the position of the United States should be determined on the basis of the following principles:
1. Demilitarization of Germany
It should be the aim of the Allied Forces to accomplish the complete demilitarization of Germany in the shortest possible period of time after surrender. This means completely disarming the German Army and people (including the withdrawal or destruction of all war material) and the total destruction of the whole German armament industry as well as those parts of supporting industries having no other justification.
2. Partitioning of Germany
a. Poland should get that part of East Prussia which doesn’t go to the U.S.S.R. and the southern portion of Silesia as indicated on the map.
b. France should get the Saar and the adjacent territories bounded by the Rhine and the Moselle Rivers.
c. As indicated in part 3 an International Zone should be created containing the Ruhr and the surrounding industrial areas.
d. Denmark should be given the territories between its present borders and the International Zone, north of the Kiel Canal.
e. The remaining portion of Germany should be divided into two autonomous, independent states, (1) a South German state comprising Bavaria, Wuerttemberg, Baden and some smaller areas and (2) a North German state comprising a large part of the old state of Prussia, Saxony, Thuringia and several smaller states.
There shall be a custom[s] union between the new South German state and Austria, which will be restored to her pre-1938 political borders.
3. The Ruhr
Here lies the heart of German industrial power. It should be dealt with as follows:
a. An International Zone should be created containing the Ruhr and the surrounding industrial areas. Included in the Zone should be the Kiel Canal and the Rhineland. The Zone should be governed by the international security organization to be established by the United Nations. The approximate borders of the Zone are shown on the attached map.
b. The internationalization of this area shall in no way interfere with: (a) total destruction of the German armament industry and supporting industries in the Ruhr in accordance with Part 1 of this memorandum, (b)restitution and reparations, including removal and distribution of industrial plants and equipment, in accordance with Part 4 of this memorandum.
c. Ownership and control of major industrial properties remaining shall be transferred to the international organization.
d. The international organization shall be governed by the following general principles:
i.The natural resources and the industrial capacity of the Ruhr area shall not be used or developed so as to contribute in any way to the military potential of Germany or the Ruhr area.
ii.The Zone will be a free trade area. However, the importation of capital should be discouraged.
4. Restitution and Reparation
Reparations, in the form of recurrent payments and deliveries, should notbe demanded. Restitution and reparation shall be effected by the transfer of existing German resources and territories, e.g.,
a. by restitution of property looted by the Germans in territories occupied by them.
b. by transfer of German territory and German private rights in industrial property situated in such territory to invaded countries and the international organization under the program of partition.
c. by the removal and distribution among devastated countries of industrial plants and equipment situated within the International Zone and the North and South German states delimited in the section on partition.
d. by forced German labor outside Germany.
e. by confiscation of all German assets of any character whatsoever outside of Germany.
The sole purpose of the military in control of the German economy shall be to facilitate military operations and military occupation. The Allied Military Government shall not assume responsibility for such economic problems as price controls, rationing, unemployment, production, reconstruction, distribution, consumption, housing, or transportation, or take any measures designed to maintain or strengthen the German economy, except those which are essential to military operations and are indicated above. The responsibility for sustaining the German economy and people rests with the German people with such facilities as may be available under the circumstances.
The following information on a meeting at the White House on September 2, 1944, with reference to Germany is taken from a memorandum of October 28, 1944, from the Chief of the Division of Central European Affairs (Riddleberger) to the Under Secretary of State (Stettinius):
“On September 1, 1944, Mr. Harry Hopkins informed the Secretary of the President’s desire to establish a Cabinet Committee on Germany and, with the Secretary’s permission, arranged for a meeting in his office on September 2 of officials of State, War and Treasury Departments. At this meeting Mr. McCloy and General Hilldring of the War Department, Dr. Harry White from the Treasury, and Mr. Matthews and Mr. Riddleberger from the State Department, and Mr. Harry Hopkins were present.
“It was at this meeting that Dr. White produced the Treasury plan for Germany and gave a lengthy interpretation of this plan which, in its general tenor, was more extreme than the memorandum itself. The plan contemplated the internalization of the Rhineland together with a strip of German territory extending through Westphalia, Hannover and Holstein to and including the Kiel Canal. Poland would receive East Prussia and Upper Silesia; France would receive the Saar and German territory bounded by the Rhine and Moselle rivers. The remainder of the Reich would be divided into two independent states. In explaining this plan, Dr. White insisted that no trade would be permitted between the proposed international zone and the rest of the Reich, and he emphasized that the productivity of this zone should not in any way contribute to German economy. No recurrent reparations deliveries would be demanded and reparations would be dealt with by transfer of territory, equipment and labor service.
“A lengthy discussion followed, in which Mr. Matthews and Mr. Riddleberger presented a State Department memorandum and explained at some length how our views fitted into the British and Russian ideas to the extent which we were aware of them. After a lengthy discussion in which Mr. McCloy pointed out the difficulties which would arise for the military authorities under the Treasury plan, he stated that on many subjects there was a large area of agreement and he suggested that Mr. Riddleberger draft a memorandum for the Cabinet Committee which would include all points on which there was obvious agreement. These points related primarily to the dissolution of the Nazi Party; the demilitarization of Germany; controls over communications, press and propaganda; and reparations. Mr. Riddleberger accordingly drafted this memorandum, which was discussed by three Secretaries on September 5.”