862.50/11–2244
The Acting Secretary of State (Stettinius) to the President
Memorandum for the President
Subject: British Views on the Economic Treatment of Germany
For your convenience I have summarized below a series of telegrams received from the Embassy in London on the British views on the economic treatment of Germany.
The reports generally confirm the statement of the British position which was outlined in the Department’s draft of November 10 on the economic treatment of Germany.1 British officials seem strongly opposed to sweeping measures of de-industrialization and extreme impoverishment of Germany. They are continuing to explore selective economic controls and restrictions, but detailed examination of specific proposals has served to make clear the difficulties and limitations of most such measures.
The British emphasize the need for selecting measures which will enjoy lasting public support and which will be enforceable a generation hence, after the emotions of wartime have cooled down.
They advocate conversion of the German economy to peacetime production and payment of reparation in kind.
They are eager to begin discussions on restitution of looted property even if discussion of broader economic questions is not yet practicable, and they intend to introduce shortly into the European Advisory Commission a proposal on machinery to handle restitution.