
Following Germany's defeat in World War II and the beginning of the Cold War, Germany was split, representing the focus of the two global blocs in the east and west. Only in 1990 would Germany be reunited.
Four Occupation Zones
At the Potsdam Conference in August 1945, after Germany's unconditional surrender on May 8, 1945, the Allies divided Germany into four military occupation zones – French in the southwest, British in the northwest, United States in the south, and Soviet in the east. The former (1919-1937) German provinces east of the Oder-Neisse line (East Prussia, Eastern Pomerania and Silesia) were transferred to Poland, effectively shifting the country westward. Roughly 15 million ethnic Germans suffered terrible hardships in the years 1944 to 1947 during the flight and expulsion from the eastern German territories and the Sudetenland.[1]
Of the roughly 12.4 million Germans who in 1944 were living in territory that following the dismembering of Germany would become part of post-war Poland, an estimated 6 million fled or were evacuated before the advance of the Red Army. Of the remainder up to 1.1 million died, 3.6 million were expelled by the Poles, one million were designated as Poles, and 300,000 remained.[2] Thousands starved and froze to death while being expelled in slow and ill-equipped trains. [3] The part of East Prussia around Königsberg was annexed by Soviet Union.
The ongoing expulsion of Germans from Poland and Soviet Union, from the Sudetenland, and from Hungary, Yugoslavia, and Romania, was authorized by the Allies in Potsdam, but the countries were urged to stop the expulsions at that particular moment due to the strain the exhausted refugees put on available resources in Germany.
Many of the remaining Germans, mainly women and children, were subject to severe acts of mistreatment, until finally deported to Germany in the 1950s. They were forced to wear identifying armbands and thousands died in forced labor camps such as Lambinowice, Zgoda labour camp, Central Labour Camp Potulice, Central Labour Camp Jaworzno, Glaz, Milecin, Gronowo, and Sikawa.[4] In addition, 2 - 2.5 million died as a result of ill-organised German evacuation, bombing, sinking of refugee ships, of hunger and deprivation during long marches in bitter cold, in the expulsion trains, in resettlement camps, or murdered by rampaging troops or populace. Another 165,000 were transported by the Soviets to Siberia.
The intended governing body of Germany was called the Allied Control Council. The commanders-in-chief exercised supreme authority in their respective zones and acted in concert on questions affecting the whole country. Berlin, which lay in the Soviet (eastern) sector, was also divided into four sectors with the Western sectors later becoming West Berlin and the Soviet sector becoming East Berlin, capital of East Germany.
A key item in the occupiers' agenda was denazification; toward this end, the swastika and other outward symbols of the Nazi regime were banned, and a Provisional Civil Ensign was established as a temporary German flag; the latter remained the official flag of the country (necessary for reasons of international law as German ships had to carry some sort of identifying marker) until East Germany and West Germany (see below) came into existence, separately, in 1949.
The United States, the United Kingdom, and the Soviet Union had agreed at Potsdam to a broad program of decentralization, treating Germany as a single economic unit with some central administrative departments. These plans broke down in 1948 with the emergence of the Cold War.
In order to impress the German people with the Allied opinion of them, a strict non-fraternization policy was adhered to by General Eisenhower and the War department. However, thanks to pressure from the State Department and individual US congressmen this policy was eventually lifted in stages. In June 1945 the prohibition against speaking with German children was made less strict. In July it became possible to speak to German adults in certain circumstances. In September 1945 the whole policy was completely dropped in Austria and Germany. Only the prohibition on marriage between Americans and German or Austrian civilians remained for some time.[1]
Industrial Disarmament in Western Germany
The initial proposal for the post-surrender policy of the Western powers, the so-called Morgenthau Plan proposed by Henry Morgenthau, Jr., was one of "pastoralization".[2] The Morgenthau Plan, though subsequently ostensibly shelved due to public opposition, influenced occupation policy; most notably through the U.S. punitive occupation directive JCS 1067[3][4] and The industrial plans for Germany[5][5] [6].
'The ”'Level of Industry plans for Germany” were the plans to lower German industrial potential after World War II. At the Potsdam conference, with the U.S. operating under influence of the Morgenthau plan[6], the victorious Allies decided to abolish the German armed forces as well as all munitions factories and civilian industries that could support them. This included the destruction of all ship and aircraft manufacturing capability. Further, it was decided that civilian industries which might have a military potential, which in the modern era of "total war" included virtually all, were to be severely restricted. The restriction of the latter was set to Germany's "approved peacetime needs", which were defined to be set on the average European standard. In order to achieve this, each type of industry was subsequently reviewed to see how many factories Germany required under these minimum level of industry requirements.
The first plan, from March 29, 1946, stated that German heavy industry was to be lowered to 50% of its 1938 levels by the destruction of 1,500 listed manufacturing plants.[7] In January 1946 the Allied Control Council set the foundation of the future German economy by putting a cap on German steel production—the maximum allowed was set at about 5,800,000 tons of steel a year, equivalent to 25% of the prewar production level.[8] The UK, in whose occupation zone most of the steel production was located, had argued for a more limited capacity reduction by placing the production ceiling at 12 million tons of steel per year, but had to submit to the will of the U.S., France and the Soviet Union (which had argued for a 3 million ton limit). Germany was to be reduced to the standard of life it had known at the height of the Great Depression (1932).[9] Car production was set to 10% of prewar levels, etc.[10]
On February 2, 1946, a dispatch from Berlin reported:
| “ | Some progress has been made in converting Germany to an agricultural and light industry economy, said Brigadier General William Henry Draper Jr., chief of the American Economics Division, who emphasized that there was general agreement on that plan. He explained that Germany’s future industrial and economic pattern was being drawn for a population of 66,500,000. On that basis, he said, the nation will need large imports of food and raw materials to maintain a minimum standard of living. General agreement, he continued, had been reached on the types of German exports — coal, coke, electrical equipment, leather goods, beer, wines, spirits, toys, musical instruments, textiles and apparel — to take the place of the heavy industrial products which formed most of Germany's pre-war exports. [11] | ” |
The first plan was subsequently followed by a number of new ones, the last signed in 1949. By 1950, after the virtual completion of the by the then much watered-out plans, equipment had been removed from 706 manufacturing plants in the west and steel production capacity had been reduced by 6,700,000 tons.[12]
Timber exports from the U.S. occupation zone were particularly heavy. Sources in the U.S. government stated that the purpose of this was the "ultimate destruction of the war potential of German forests."[13] As a consequence of the practiced clear-felling extensive deforestation resulted which could "be replaced only by long forestry development over perhaps a century."[13]
With the beginning of the Cold war, the U.S. policy gradually changed as it became evident that a return to operation of West German industry was needed not only for the restoration of the whole European economy, but also for the rearmament of West Germany as an ally against the Soviet Union. They feared that the poverty and hunger would drive the West Germans to Communism. General Lucius Clay stated "There is no choice between being a communist on 1,500 calories a day and a believer in democracy on a thousand".
In September 6, 1946 United States Secretary of State, James F. Byrnes made the famous speech Restatement of Policy on Germany, also known as the Stuttgart speech, where he amongst other things repudiated the Morgenthau-plan influenced policies and gave the West Germans hope for the future.
Reports such as The President's Economic Mission to Germany and Austria helped to show the U.S. public how bad the situation in Germany really was.
The next improvement came in July 1947, when after lobbying by the Joint Chiefs of Staff, and Generals Clay and Marshall, the Truman administration finally realized that economic recovery in Europe could not go forward without the reconstruction of the German industrial base on which it had previously had been dependent.[14] In July 1947, President Harry S. Truman rescinded on "national security grounds"[15] the punitive occupation directive JCS 1067, which had directed the U.S. forces in Germany to "take no steps looking toward the economic rehabilitation of Germany." It was replaced by JCS 1779, which instead stressed that "[a]n orderly, prosperous Europe requires the economic contributions of a stable and productive Germany."[16]
The dismantling did however continue, and in 1949 West German Chancellor Konrad Adenauer wrote to the Allies requesting that it end, citing the inherent contradiction between encouraging industrial growth and removing factories and also the unpopularity of the policy.[17] (See also Adenauers original letter to Schuman, Ernest Bevins letter to Robert Schuman urging a reconsideration of the dismantling policy.) [7] [8] Support for dismantling was by this time coming predominantly from the French, and the Petersberg Agreement of November 1949 reduced the levels vastly, though dismantling of minor factories continued until 1951.[18] The final limitations on German industrial levels were lifted after the establishment of the European Coal and Steel Community in 1951, though arms manufacture remained prohibited.[19]
French designs
Under the Monnet Plan, France - intent on ensuring that Germany would never again have the strength to threaten it - had beginning in 1945 attempted to gain economic control of the remaining German industrial areas with large coal and mineral deposits; the Rhineland, the Ruhr area and the Saar area (Germany's second largest center of mining and industry, Upper Silesia, had been handed over by the Allies to Poland for occupation at the Potsdam conference and the German population was being forcibly expelled) (see also French proposal regarding the detachment of German industrial regions September 8, 1945). The Ruhr Agreement had been imposed on the Germans as a condition for permitting them to establish the Federal Republic of Germany.[20] (see also the International Authority for the Ruhr (IAR)). French attempts to gain political control of or permanently internationalize the Ruhr were abandoned in 1951 with the West German agreement to pool its coal and steel resources in return for full political control over the Ruhr (see European Coal and Steel Community). With French economic security guaranteed through access to Ruhr coal now permanently ensured France was satisfied. The French attempt to gain economic control over the Saar was temporarily even more successful.
In the speech Restatement of Policy on Germany, held in Stuttgart on September 6, 1946, the United States Secretary of State James F. Byrnes stated the U.S. motive in detaching the Saar from Germany as "The United States does not feel that it can deny to France, which has been invaded three times by Germany in 70 years, its claim to the Saar territory". The Saarland came under French administration in 1947 as the Saar protectorate; but did return to Germany in January 1957 (following a referendum), with economic reintegration with Germany occurring a few years later.
Although not a party to the Potsdam conference where the policy of industrial disarmament had been set, as a member of the Allied Control Council France came to champion this policy since it ensured a weak Germany.
In time the U.S. also came to the conclusion that West Germany should be, carefully, rearmed as a resource in the cold war. In 31 August 1954 the French parliament voted down the treaty that would have established the European Defense Community, a treaty they themselves had proposed in 1950 as a means to contain German revival. The U.S. who wanted to rearm West Germany was furious at the failure of the treaty, but France had come to see the alliance as not in their best interests.
France had instead focused on another treaty also under development. In may 1950 France had proposed the European Coal and Steel Community with the purpose of ensuring French economic security by perpetuating access to German Ruhr coal, but also to show to the U.S. and the UK that France could come up with constructive solutions, as well as to pacify Germany by making it part of an international project.
Germany was eventually allowed to rearm, but under the auspices of the Western European Union, and later NATO.

