PRODUCTION IN RUHR

Press, Volume LXXXIII, Issue 25240, 19 July 1947, Page 9

PRODUCTION IN RUHR

NEW LEVEL AGREED ON FOR STEEL

GERMAN CONTRIBUTION TO RECOVERY

(N.Z. Press Association—Copyright) (Rec. 7 p.m.) LONDON, July 18. The Frankfurt correspondent of “The Times” says: “Germany’s essential contribution towards European recovery was emphasised yesterday by Lieutenant-General Lucius Clay, the American Military Governor, in discussing a recent directive he has received from Washington, which crystallises the gradual modification of the United States attitude to the German problem. “A new level of production for Ruhr steel—he was n«t at liberty to divulge the figure—had, he said, been agreed

upon in his negotiations with the British military authorities, but several points in the proposals for a general raising of industrial production in the combined zones had still to be resolved. “Washington’s new policy, Lieuten-ant-General Clay declared, recognised the contribution which must be made from the German economy to European reconstruction, and Europe’s needs had therefore fo be taken into consideration in determining German industrial levels. To that extent, he said, it permitted the German economy to be integrated with the Marshall offer by making an industrially non-militant Germany a contributing factor to European recovery. “He insisted that his new directive was in no way a departure from the Potsdam agreement, nor could it be regarded as a stiffening of the American attitude towards Russia. It was he added, still America’s desire to establish at the earliest possible date a central German Government with defined authority, reserving all other powers to the States. As always, America advocated an economic union of all Germany which ensured the free exchange of goods, persons, and ideas.” The United States to-night refused to agree to a British request that the agenda of the British-Ainerican conference on Ruhr coal production next week should be broadened and that the talks should be held in Berlin instead of Washington. A United States State Department spokesman said that the United States had replied that it would prefer talks to be held in Washington. Authoritative sources said the United States had taken this attitude because Major-General William Draper, Deputy Military Governor of the American zone of Germany, and other Ruhr experts had already assembled in Washington and were awaiting the arrival of the British representatives.