Cost of Reviving Germany.

Evening Star, Issue 26144, 4 July 1947, Page 4

Cost of Reviving Germany.

Recent cable messages announcing the resumption of private' trade with Japan and the efforts being made to rehabilitate that country’s economy distract attention from the difficulties being experienced in reviving Germany’s industrial and commercial structures. Political differences among the four occupying Powers and the zonal boundaries that tend for economic disunity are complicating factors in Germany’s recovery, but some of the measure’s operating in the British and American zones will form the basis of General MacArfchur’s experiment in Japan. Anglo - American government credits were granted to Germany at the beginning of this year to ensure the importation of food and raw materials in an attempt not only' to assist that country economically, but also to help to lift the burden on the taxpayers of these two occupying powers. The British and- American zones are expected to „be by 1950, but r that date might be too optimistic if the terms of the Potsdam Agreement, which declared that Germany would be kept an economic unity, are to be observed. Industrial production is also still below the desired level, partly because of insufficient supplies of coal, partly, because of the people’s apathy, and partly because of the obstacles to doing business from zone to zone. Over the fused zone as a whole, according to a bulletin of the Swiss Bank Corporation, industrial output is estimated to be only 30 per . cent, of the .1936 average.

Military, travel permits are required; before a person can visit Germany, and business men of all countries desiring to enter the country are restricted to not more than 100 a month. Postal com munication ■is slow and unsatisfactory The importation of goods remains in official hands, but the export .field is open to foreign enterprise (subject to official confirmation), and private transactions are reported to be, increasing. Foreign exchange paid by a customer goes into a common pool, the German manufacturer being paid in reichmarks. In this way the authorities, hope to accumulate a reserve of foreign exchange with which it is. planned to stabilise the economy. Steps to relieve the occupying countries of the cost of raising a vanquished are to be commended, and there is an urgent need for the goods that Germany and Japan can produce.