The Representative on the Allied
Commission on Reparations (Pauley) to the Secretary of
Dear Mr. Secretary: Yesterday I visited five plants in the American area of Berlin located in Zehlendorf and Tempelhof. These plants manufactured artificial wool and artificial silk from wood fibre, electrical instruments, radios, telephones, etc. Will Clayton accompanied me in looking over two of the plants.
These plants are strictly peace-time concerns. We made the following observations:
- Very little damage was done to the plants as a result of bombing and shellfire.
- Subsequent to the armistice, virtually all machinery was removed by the Russians. The machinery was numbered and removed out of our zone some of it just across the line. The work was tremendously rushed toward the end. A few pieces of machinery were left behind.
- The technical information in the plants, process records and specifications were also taken.
- In every case, a few foremen and supervisors were “persuaded” by the Russians to accompany the machinery to Russia.
- Two of the plants visited belonged to the International Telephone and Telegraph and were 94% and 100% American owned. They have been completely stripped of machinery down to even small tools.
It would appear that all these removals were in complete violation of all efforts to maintain “non-war potential” industries in Germany. The effect of the removals will be the complete destruction of employment opportunities in the area.
What we saw amounts to organized vandalism directed not alone against Germany, but against the U. S. forces of occupation. Incidentally, under the techniques used, Russia will withdraw two to three times as much from any area as would be withdrawn by the U. S. or U. K. under similar circumstances. In the area which we captured and turned over to the Russians we made no removals except for a few samples of unique equipment.
You may draw your own conclusions.