Ext 6116/46(S) 'Secret Weekly Political Intelligence Summaries, nos 356-416, August 1946-November 1947' [‎305ar] (619/978)

10648-394 33725
B
THIS DOCUMENT IS THE PROPERTY OF
HIS BRITANNIC MAJESTY’S GOYE
MENT
SECRET
17286
L 3479/6/405
This document is SECRET : as such it is
intended for the personal information of author
ised recipients only and must on no account be
communicated in whole or in part to anyone else
Weekly Political Intelligence Summary
No. 394
Foreign Office,
(Research Department),
4th June, 1947
Copy N? 90
Contents
Since August, 1946, this Summary has become a more
confidential document than it had previously been, and full
weight must be given to the label SECRET. The side-lined
passages especially must not be divulged to anyone other than
the authorized recipients.
GERMANY
The text of the new Anglo-U.S.
Economic Agreement for their two zones,
briefly reported in the last issue of this
Summary, was published on the 3rd June.
An Economic Council of about 54 members,
selected by the provincial parliaments in
proportion to the strength of the political
parties, will direct the economic recon
struction of the two zones and will issue
ordinances for this purpose. There will
also be a full-time Executive Committee
consisting of one representative from each
Land appointed by the respective Govern
ments, and its job will be both to advise the
Council and to supervise and co-ordinate
tihe execution of its orders. When this
Council and Committee are established,
probably by July, the present Economic
Executive Committee consisting of the
Ministers of Economics of the Laender will
cease to exist. The bi-zonal Food, Finance
and Agricultural Departments, &c., will be
headed by Executive Directors working
under the supervision of the Executive
Committee but generally responsible to the
Economic Council. The Executive Com
mittee will nominate the directors, but they
will be appointed and dismissed by the
Economic Council which will also define
their functions. The Agreement lays down
that the maximum use will be made of pro
vincial governments to carry out orders in
accordance with the general policy of
decentralisation, but the Council, the Com
mittee and the Directors may issue
administrative regulations if necessary.
Ordinances are binding on the Laender
“ and must be promptly executed.”
This agreement goes far towards estab
lishing a strong “ central ” economic con
trol and, if worked as intended, gives the
bi-zonal authorities power to see that their
decisions are no longer obstructed by the
Laender. The Council and Committee are
both appointed by the Laender, so that
federal rights are maintained, but whereas
each Land has equal representation in the
Executive Committee, members of the
Council are appointed on the basis of one
member to about 750,000 inhabitants so
that large States like Bavaria and North
Rhine/Westphalia have greater power. In
both bodies decisions are taken by a
majority so that no one State—Bavaria for
example—can veto decisions. The ruling
Economic Executive Committee repre
sented only the Ministers of Economics