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Towards Bringing Materials to
INDUSTRY

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The framers of the Potsdam Agreement envisaged the future Germany as an integral economic entity, and to this end they adopted a policy permitting as free and unrestricted trade within and between the four occupation zones as is practicable.

In a far-reaching move to implement this policy in the U.S. Zone, Military Government restrictions on the free flow of trade and commerce have been lifted on any and all goods and services except those in critically short supply. At the same time, instructions were issued to eliminate restrictions on travel and communication by German civilians to the maximum extent practicable in order to permit German governmental agencies and private enterprises to carry out the intent of this policy.

Military Government Offices below zonal level have been directed not to impose any future restrictions upon trade and commerce. The Office of Military Government (U.S. Zone) may maintain or impose such restrictions, but only on a limited list of essential items, which are in critically short supply, as indicated by the Office of Military Government for Germany (U.S.).

RATIONED ITEMS STILL CONTROLLED

Continued centralized control by Military Government of the excepted critically scarce items of necessity is essential in order to ensure the most judicial and equitable allocation and distribution of such items. The critically-scarce items upon which direct Military Government controls will be continued are as follows: coal; lumber; glass; POL; soap and soap compounds;
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[[Boxed text: Instructions on Intrazonal Trade have been lifted to free raw and semi-finished goods for Industry.]]

pulp and paper; highway vehicles, locomotives, rolling stock, and road construction machinery; textiles and rationed clothes; leather and rationed shoes; and foods rationed to consumers, and commodities which are basic ingredients for such foods. This critical list may be revised from time to time by the Office of Military Government for Germany (U.S.).

Insofar as intrazonal trade -- that is, trade within and between states in the U.S. Zone -- is concerned, Military Government approval of allocations, rationing, and distribution is required only for coal and POL. For intrazonal trade, however, Military Government approval is required for any and all trade and commerce in any or all items listed above.

The removal of Military Government restrictions, as indicated above, is not intended to affect consumer rationing regulations or allocation control which are necessary to insure efficient and equitable distribution. Any retardation of the free flow of trade and commerce resulting from such regulations is a necessary evil which is warranted in that the greatest good to the greatest number from the limited supplies is thereby achieved.

STIMULUS TO INDUSTRY

The real intent is to discourage and, so far as is practicable, prevent hoar-
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