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Auckland Star, Volume LXXVI, Issue 147, 23 June 1945, Page 5

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GERMAN DOMINATION Expert's Plan To Smash War Potential Rec. 11.30. WASHINGTON, June 22. Mr. Bernard Baruch, formerly economic adviser to President Roosevelt, who recently returned from Germany, told the Senate Military Affairs Committee that in order to break Germany's domination of Europe once and for all it was necessary to. eliminate the war-making potential, shift many factories in the east and west to friendly countries, destroy all other heavy industries, break up the Junkers' estates, strictly control exports and imports, and foot out German assets and business organisations throughout the world.

He said the new equilibrium of Europe's industrial strength might take the form of a united states of Europe, in which Germany would be one of several peaceful equals. This settlement of the German question could be used as a basis for a comprehensive agreement • with Russia, because it would solve the Russian question of security against Germany. . "I believe we can arrive at a full understanding with the Soviet, but if it is impossible the sooner we know it the better," he said.

Among Mr. Baruch's recommendations were:—(l) Germany should pay the maximum possible reparations; (2) she should be deprived of her heavy industries, even where American and other foreign-owned plants were involved; (3) German assets in foreign , countries should be used to repay the nationals of those countries for war damage; (4). Germany should be occupied until her spiritual and economic rebirth. He added that Russia and other countries were entitled to labour and reparations,' particularly if the labour battalions includes Nazis, the Gestapo, Junkers, the General Staff, war industrialists and war financiers —leaving the ordinary peasants and workers in their own country. Mr. Baruch is a member of the United States "War Mobilisation Administration. • • ■"'