WEST GERMANY’S ECONOMY

Press, Volume LXXXVII, Issue 26516, 3 September 1951, Page 7

WEST GERMANY’S ECONOMY

‘Ruhr’s Inability To Make Arms”

(N.Z. Press Association—Copyright) (Rec. 7:10 p.m.) BONN, Sept. 1. West Germany’s Minister of Economics (Professor' Ludwig Erhard) says that the Ruhr will not make arms again for many years. Even if it were politically desirable it would be physically impossible as the Allies removed all machine tools and equipment for the making of arms and Germany did mot have the necessary special steels. Professor Erhard said: “Germany is ready to do her duty to the maximum in making her economic contribution to the West’s defence."

Her responsibility was to supply raw materials, and furnish semi-finished products of a non-military nature to the Allies.

She was willing to supply anything the Allied forces wanted from steel to optical instruments but it had to be remembered that Germany depended for her own vital export economy on steel and coal. Professor Erhard said he understood that the British Board of Trade had just opened an office in Cologne and would make purchases of more than £50.000,000 a year. He claimed that West Germany’s “social market economy" was, notwithstanding the Korean war inflation, better than some other countries in the west. Since March. 1950, the French cost of living had risen 24 per cent., the American 10 per cent., the British 8 per cent., but the German rise was only 7 per cent In the same period French wages rose 19 per cent., American 10 per cent., British 8 per cent, btit German wages rose 20 per cent. Germany was thus showing a net gain of 12 per cent, in her living standards.