Foreign Relations of the United States: Diplomatic Papers, 1945, European Advisory Commission, Austria, Germany, Volume III

740.00119 Control (Germany)/10–245

Paper Submitted by the Allied Secretariat to the Control Council for Germany ¹⁴

CORC/P(45) 69

19 September 1945.

Directorate of Transport

Establishment of a Central German Transport Department

Report of the Directorate of Transport

1. We were instructed by CORC/P(45)2^14a (Final) to initiate studies and make recommendations and reports to the Co-ordinating Committee on the decisions reached by the Tripartite Conference held at Potsdam:—¹⁵

(i) that a Central German Administrative Department shall be established … in the field of transport … to act under the direction of the Control Council (Section III, Paragraph 9(iv)^15a).

(ii) During the period of occupation, Germany shall be treated as a single economic unit. To this end common policies shall be established in regard to … transportation … In applying these policies account should be taken, where appropriate, of varying local conditions (Section III, Paragraph 14¹⁶).

2. Our examination of this problem has disclosed that there is fundamental difference of opinion between the French Delegation on the one hand and the Soviet, American and British Delegations on the other, concerning the functions to be exercised by the Central German Transport Department and the organization required for that purpose.

3. In the view of the Soviet, American and British Delegations the decisions of the Potsdam Conference require that the railways, highways, inland waterways and transport thereon and ports in Germany and such coastal shipping as Germany is allowed to retain, must be treated as the transport unit of Germany’s economy and must be controlled as an undivided unit, for the whole of Germany by the Allied Control Authority through a Central German Administrative Department to be established for the purpose.

4. Accordingly, the Soviet, American and British Delegations consider that the Central German Transport Department must not merely be required to advise the Directorate of Transport on transport policy but must be given such executive functions as are necessary to secure through an approved Departmental organization in the Zones that the orders given by the Directorate of Transport on policy matters are carried out by the various German Transport Agencies in the Zones.

5. The French Delegation, on the other hand, propose that the Central German Department, if established, shall be composed simply of advisers who will be responsible for presiding over co-ordinating meetings of technical German delegates representing, for each branch of transport and for each function, the various Occupation Zones.

6. The French Delegation consider that in view of the need for the complete disarmament of Germany, the various forms of transport and transport facilities should be organised in accordance with the objections made in the letter which is attached as Enclosure 2. For instance, the various forms of transport should be treated as follows:—

(a) Railways.

(i) In each occupation zone an independent management; carrying on the operation of the network of railways within the Zone and to this end controlling all the necessary facilities.

(ii) Only such German central coordinating agencies or secretariats as may tie necessary for dealing with commercial, technical and financial questions affecting all Zones, and through services.

(b) Ports, highways and highway transport, inland waterways and inland waterway transport.

The functions of the Central German Transport Department, as suggested by the Soviet, American and British Delegations, could be exercised by the Allied Control Authority direct. If necessary, some German co-ordinating committees should be set up with permanent secretariats.

(c) Coastal Shipping.

Such coastal shipping as Germany is allowed to retain will need to be regulated centrally.

7. Accordingly we are unable to submit agreed proposals.

8. In Enclosure 1 are set out proposals which, in the opinion of the Soviet, American and British Delegations, are in conformity with the decisions of the Potsdam Conference.

The French Delegation reasons for dissenting from these proposals are given in Enclosure 2.

R. J. M. Inglis

(Chairman)

R. Martin (Rene Martin)

P. A. Kvashnin

, Major-General

John D. Hughes

, Col., Deputy for J. A. Appleton,
Brigadier-General

[Enclosure 1]

Organisation and Functions

Central German Transport Department

Organisation.

1. There shall be established, under the control of the Directorate of Transport, Allied Control Authority, a Central German Transport Department.

2. It shall be headed by an Administrator for Transport, who shall be assisted by a Deputy Administrator at Headquarters, and five Executives:—

a. Executive for Railways.

b. Executive for Highways and Highway Transport.

c. Executive for Inland Waterways and Inland Water Transport.

d. Executive for Ports.

e. Executive for Coastal Shipping.

There shall also be Deputy Administrators in the Zones.

Orders on general transport policy will be issued to the Administrator by the Directorate of Transport. Orders concerning only one of the branches will be issued to the Executive of that branch by the appropriate Committee of the Directorate.

3. The personnel to be appointed to the foregoing posts shall be acceptable under the political principles laid down by the Potsdam Conference. The Administrator, Deputy Administrator, and five Executives at Headquarters will be selected by the Directorate of Transport for the approval of the Co-ordinating Committee. The Administrator will be required to submit nominations for the approval of the Directorate of Transport for other posts in the Headquarters of the Central German Transport Department. Personnel of the Headquarters of the Central German Transport Department shall remain in office at the pleasure of the Directorate of Transport. The selection of German personnel for posts on the Zone level and their removal from such posts shall be subject to the approval of the Occupying Power of each respective Zone.

4. The Department shall be organised in accordance with the attached chart.¹⁷ It will be within the discretion of each Allied Control Authority to decide whether that part of the organisation of the Central German Transport Department which is required in the Zone of that Authority shall be under the general supervision of one German Deputy covering all transport systems in the Zone, or two or more Deputies according to the requirements in the Zone.

Functions.

5. The Central German Transport Department shall be charged with the administration and organisation of work of the railways, inland waterways and inland water transport, highways and highway transport, ports, and coastal shipping. All of its acts and the exercise of all its powers shall be under the control of the Directorate of Transport.

6. It shall promulgate rules and regulations covering those transport operations that are inter-zonal and national in scope and effect. Such rules and regulations shall include provision for the establishment and enforcement of:—

a. Through freight and passenger services, and common policies on interchange of locomotives and rolling stock.

b. Rates, fares, and charges on a uniform basis throughout Germany.

c. Common policies and wages and working conditions.

d. Common policies on expenditure on capital account, and on reconstruction, repair, and maintenance in all forms of transport.

7. The Central German Transport Department, with the approval of the Directorate of Transport, shall administer and regulate the financial structure of each of the transport systems, and require full compliance with the principles it adopts; these shall be on uniform basis throughout Germany.

8. Budgets of transport agencies in the zones shall be presented to the Department, who shall be responsible for submitting them to the Directorate of Transport. No expenditure proposed in the budgets shall be incurred until approval has been given by the Directorate of Transport.

9. After approval by the Directorate of Transport, the Department shall publish its orders, directives, rules, and regulations, and shall transmit them to the transport agencies concerned throughout Germany. Copies will be submitted to the Directorate of Transport.

10. The Central German Transport Department shall be accountable for all its actions to the Allied Control Authority through the Directorate of Transport.

[Enclosure 2]

Note by the French Delegation of the Directorate of Transport

Creation of a German Central Transport Department

The French Delegation opposes to the proposals of British, American and Soviet Delegations the two following reserves:

1. The French Government has not given its agreement to the decision of Potsdam Conference, specially concerning the creation of a German Central Transport Department and maintains this reserve.

2. Even if the French Government would cancel the above reserve and agree to the principle presented in the Potsdam Conference relative to the creation of a German Central Transport Department, the French Government would not recommend to the Control Commission the adoption of the text prepared by the British, American and Soviet Delegations, for the following main reasons:—

(a) Regarding Railways—The maintaining of Reichsbahn unity is not consistent with the disarmament of Germany, as France proved by her own experience when occupied by the Germans. The eventual German Central Department should therefore co-ordinate, within the extent necessary to the carrying of inter-zone and international transportations, only the action of four networks independently constituted in each zone. This system, working in Great Britain and U.S.A. and that worked in France before 1937, is entirely consistent with the principle of Economic unity of Germany.

(b) Regarding Inland Navigation—Interference of the eventual German Central Transport Department into the Control of Navigation on rivers and canals considered as international should be formally excluded.

(c) Regarding Highways Transports—A central organisation would be useless since it only concerns short distance transportations and would afford the Germans to reorganise a paramilitary system of mobilisation.

[For discussions on Control of Germany, establishment of central machinery in Germany, and separation of the Ruhr, Rhineland, and the Saar from Germany at the twenty-third, twenty-fourth, and twenty-fifth meetings of the Council of Foreign Ministers in London, September 26, 27, and 28, respectively, see volume II, pages 399, 421, and 428.]

14. This paper was considered at the ninth meeting of the Coordinating Committee, September 22. It was transmitted to the Department in despatch 1013, October 2, from Berlin, not printed.
15. Not printed.
15. See Report on the Tripartite Conference of Berlin, Conference of Berlin (Potsdam), vol. ii, p. 1499.
16. Ibid., p. 1503.
16. Ibid., p. 1504.
17. Not printed.