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  3. Foreign Relations of the United States: Diplomatic Papers, The Conference of Berlin (The Potsdam Conference), 1945, Volume II
  4. Document [Unnumbered document following Document 710 (#24)]

Frankfurt USPolAd Files—500 Potsdam Conference

Memorandum by the Political Adviser in Germany ( Murphy )3

Potsdam , July 19, 1945.

Memorandum

Subject: Subcommittee of Experts on Economics.

This committee agreed to proceed informally. The scope of its discussion was limited to a statement of principles and it is expected to report back items on which the members do not agree.

Mr. Maisky led off by inquiring what was meant by decentralization. Mr. Clayton explained that this related to the breaking up of trust cartels and monopolies, while Mr. Turner stated that it meant the elimination of a tight central control of industry and commerce. The following definition of decentralization was agreed upon: “The German economy shall be decentralized for the purpose of eliminating the present excessive concentration of economic power as exemplified by cartels, syndicates, trusts, and other monopolistic arrangements.”

  • Item No. 10.4 Mr. Maisky said he had no quarrel with this principle.
  • Item No. 11 (a). Mr. Maisky inquired what is meant by relief of liberated areas.
  • Item No. 11 (b). Mr. Turner inquired whether we were talking about the Germany included in the 1937 frontiers. At this point Mr. Maisky made no comment.

With respect to the minimum subsistence standard in Germany, a formula was suggested under which it would be essential to maintain in Germany the average standards of living which would not exceed the average living standards in the European countries (European countries excluding the U. K. and U. S. S. R.).

[Page 111]
  • Item No. 11 (c). Mr. Turner pointed out that [sic] the desire to produce a balanced economy throughout Germany and reduce the need for imports. Mr. Maisky said we will consider this point.
  • Item No. 11 (d). No grant of credit shall be permitted except with the approval of the Control Council.
  • Item No. 12. The principles (and proposals)—this was added language by Pauley, here agreed.
  • New Item No. 12 (a). This was submitted for consideration.
  • Item No. 13. To the effect that Germany was to be treated as an economic unit. Agreed.
  • Item No. 13 (1). Mr. Turner submitted a re-draft.5
  1. Printed from the ribbon copy, which is unsigned. Murphy’s memorandum on the meeting of the Economic Subcommittee on July 20 (post, p. 141) is a continuation of this memorandum.↩
  2. These items refer to the numbered paragraphs of document No. 852, post.↩
  3. Not found.↩