CABINET MEETING, JULY 18, 1947
THE PRESIDENT
Brought up Clifford strike (?) mission to Japan. Is afraid that this group will upset reparations policy established.
WAR
That is not the intention. It is their job to coordinate 11 engineering firms in a study of plant removals and productive capacities.
THE PRESIDENT
Is worried that machine tools will be moved to China and replaced by American tools.
PATTERSON
The trend is the other way.
STATE
Is in agreement with the War Dept that the levels of industry in Japan and Germany must be raised - and that plant removals will be curtailed.
HARRIMAN
Found that one of the Krupp plants being moved from Germany to Russia will cost more to move than it would to build a new plant. The U.S. & Britain are paying the bill. We might go ahead with machine removals but we should stop tearing down plants.
THE PRESIDENT
Asked Anderson to report on food situation in American Zone in Germany.
ANDERSON
We must develop a policy on food shipments on a long range basis to enable Gen Clay to program food distribution. Clay has a tough job in attempting to get Germany on a self-sustaining basis. He has too much interference from French and British. When he programs a move the French and British take over and block what he is trying to accomplish. Some (?) dept. of our Govt should cooperate with Clay. Thinks that a policy should be worked out at Cabinet level to insure coal - steel and other production in Germany.
PATTERSON
We will not get much production in Germany until we increase food rations - as these people are not physically able to perform a day's work. The ration should be raised to 1800 calories. France is up to 80% of pre-war production. Germany is only up to 30% of pre-war production. Germany is the only country in Europe on a starvation diet.
STATE
You can't judge the German picture from over here - it is hard to find out just what motivates Russian moves. The only answer to coordinating our foreign activities is to quietly build up a Govt Secretariat.
HARRIMAN
We must hold up announcements of expansion of aid to Europe - and ...........in levels of industry in Germany. This will give support to present French Govt.
PATTERSON
France is getting coal out of Germany at $5 a ton. This is below the German economy level. It cost $15. The U. S. is paying the bill to keep Germany above water. France claims if the price is increased - the country will go Communistic. How valid this claim is we do not know.
HARRIMAN
The de-Nazification of Germany must be wound up - only 20% tried are convicted. We must use the engineering brains of the Germans if we are to pull Germany out. We must pursue the main objective.
THE PRESIDENT
State - War - Agriculture are committed to work it out - let's get it done.
ATTY GEN
Judiciary Committee in Senate - he believes that if we agree to 100,000 immigration of D.P.'s instead of 400,000 - we may get bill out of Committee.
STATE
Agrees.
WAR
Ditto.