The Acting Secretary of State to the United States Political Adviser for Germany ( Murphy )

444. Urtel 387, Aug. 28.29 The Dept. concurs with the objectives and administrative framework advanced in U.S. group CC30 proposed law on cartels and combines.

If your negotiations with British, Russians and French would not be unduly delayed or compromised Dept. suggests that Art. 5.a. be rewritten as follows. “Excessive concentration of economic power, whether in the form of a cartel, syndicate, trust, monopoly, combine, concern, corporation, partnership or otherwise, foreign or domestic is hereby declared contrary to the policy of the Allied occupation powers.” The Control Council would implement this policy by passing specific decrees disestablishing specific combines.

Dept. believes action should follow immediately on prohibiting cartel and cartel-like organizations in Germany and German participation in international cartels. After illegality of these organizations is affirmed a policing operation will be required. Combine policy however will require highly skilled affirmative remedy.

Dept. interprets Art. 37 of JCS 106731 and present draft law to mean that immediate steps should be taken by the Control Council, or by commission proposed by draft law, to prepare detailed plans for the dissolution of the more important German combines. Dept. desires that as a matter of rule it be given opportunity to review and comment upon these plans while they are in process of formulation and negotiation. Dept. will provide a list of combines which might serve as basis for early detailed study.

You are requested to inform the Dept. of the personnel requirements in this operation both for the U.S. group CC and your own staff.

In near future Dept. will forward tentative suggestions prepared by Cartel Committee for techniques of disestablishing German combines.

  1. Not printed; it transmitted the text of a United States draft law which had been considered by the Coordinating Committee, composed of the deputies of the four Military Governors who sat on the Allied Control Council for Germany. The draft law called for dissolution of German domestic cartels and combines as well as prohibition of German participation in international cartels. This policy would be carried out principally through the establishment of a quadripartite Commission for Economic Decentralization (800.602/8–2845).
  2. Reference is to the Allied Control Council for Germany.
  3. See footnote 82, p. 1527.