CFM Files: Lot M–88: Box 2234: File–Reparation Plant Review
Memorandum of Conversation, by James P. Hendrick, Special Assistant, Office of the Deputy Administrator, Economic Cooperation Administration1
- Present: Lord Henderson
- Mr. Makins
- Mr. Stevens
- Mr. Hoffman
- Ambassador Douglas
- Mr. Harriman
- Mr. Hendrick
Subject: German Reparations
The problems discussed at the morning meeting with Mr. Bevin2 were brought under scrutiny.
The suggestion was made that the British might continue dismantling but switch to the “American type” of dismantling. This would involve unbolting and disconnecting power but would not involve removal of equipment, tearing down structures or packing. It was pointed out that the U.S. type of dismantling had been completed in practically all plants in the U.S. Zone but that they were in such condition that it should be easily possible to put them back into operation within a short period of time with little expenditure of labor. Mr. Stevens expressed some surprise at learning of the U.S. type of dismantling. He had not heard of this before nor had the other two British gentlemen present.
Mr. Stevens stated that there was a large labor force now assembled to work on dismantling. There were some 15 or 20 thousand engaged in this work. It would be impossible to let them go and thereafter assemble them. Ambassador Douglas protested that to say this would mean that we had lost control of Germany and he did not feel that we had come to that point yet. Mr. Hoffman suggested that in the early days of the WPA it had been found possible to get a large number of laborers to do a surprisingly small amount of work and Mr. Stevens picked up this suggestion agreeing that it might be favorable to indulge in what he called boon doggling. Mr. Hoffman stressed the fact that the American public simply would be unable to understand the British refusal to stop dismantling or at least change to American type of dismantling. There had been reports that the British had speeded up dismantling in order to improve their competitive position in the steel industry. He also pointed out that until early July the British had consistently followed the system of doing no dismantling until a plant was suballocated. Mr. Stevens said that the reason [Page 823] the British had started dismantling in July was merely that this was the time the currency change was put through and that after this it was much easier to secure labor.
Mr. Stevens said that pursuant to an agreement with General Clay some U.K. steel experts were now in Germany looking over the steel problem. They were concerned only incidentally with reparations. Their main problem was the question of the “product mix” which Mr. Wolf had suggested should be changed.
Again returning to the labor question Mr. Hoffman suggested that it might be possible to transfer the laborers now working on dismantling to the plants which are on the release list. Mr. Stevens said this would be impossible in many cases because 50 plants on the release list are remaining in production until they terminate their contracts.
At this point, Mr. Hendrick produced a draft statement of what might be agreed to regarding cooperation with the Humphrey Committee and change to American type of dismantling. This was revised by Mr. Hoffman and read to the group. Mr. Douglas suggested a change in wording. It was then agreed that the draft, as amended, should be gone over by Mr. Stevens and Mr. Hendrick and a redraft presented to the subsequent meeting with Mr. Bevin.3