HC Deb 15 November 1945 vol 415 cc2319-20
46. Mr. Horabin

asked the Chancellor of the Duchy of Lancaster on what basis the peacetime industrial production of Germany will be assessed in order to arrive at the plant and machinery to be removed from the British zone as reparations; and how far the needs of the European economy for the products of German industry will be taken into account.

The Chancellor of the Duchy of Lancaster (Mr. John Hynd)

These matters are under examination by a Level of Industry Committee which has been set up in Berlin by the Allied Control Council. The committee are guided by the decisions of the Potsdam Conference to the effect broadly that the peacetime production of Germany should be restricted to what is necessary to maintain a living standard not above the average of other European countries and that industries useful for war purposes should be reduced to the minimum consistent with approved peacetime requirements. A considerable proportion of German heavy industry will not be destroyed but transferred to Allied countries whose own industries have been damaged in the war. Germany will, moreover, require imports to maintain her approved standard of living, and will have to pay for these imports by exports which will contribute to the needs of European economy as a whole. The effect of this on the wider issue raised on the second part of the Question is not being overlooked.

Mr. Horabin

Does the reply mean that we intend to carry out the Morgenthau plan in relation to Germany?

Mr. Hynd

Not at all, Sir. The position is, as indicated, that the needs of European economy are very pressing questions in the minds of our Allies, who are concerned in this. Therefore, they will be taken into consideration.

Mr. Stokes

Does my hon. Friend recollect that we could never get any assurance out of the late Government on this particular issue—the implementation of the infamous Morgenthau plan? Will he categorically inform the House that it is not the intention of His Majesty's Government to allow that to happen?

Mr. Hynd

I can only state that this matter is being dealt with by the Level of Industry Committee which is now in process of reporting. We anticipate that their report will soon be available. The consideration raised in the Question, as I have indicated, will be borne in mind by the Government.

Mr. Horabin

Will the hon. Gentleman make a statement to this House when that report is available?

Mr. Hynd

Obviously, when the conclusions of the report, and the policy arising from the report, are available, it will be the responsibility of the Government so to inform the House.