19th June 2007
Ratchford and Ross were two economic advisors to the US delegation at the Level of Industry negotiations, which took place in Berlin from September 1945 until the end of March 1946, following on from the Potsdam Agreement between the Allies at the end of the war.
Their book, 'Berlin Reparations Assignment', published in 1947, is a critical and highly readable account of the negotiations, written soon after the events described:
"...Ratchford was in Berlin from August 1945, until February, 1946. During most of that time he was Economic Advisor for Level of Industry in the Office of Military Government for Germany (U.S.)." He was section chief of a small group that prepared economic data and he also served as economics advisor to the head of the industry branch and to Colonel Draper, the Director of the US Economics Division. Ross was an economist in Ratchford's office.
The purpose of the negotiations was for the victorious allied powers, Britain, the US, France and the Soviet Union, to agree the level of reparations to be paid by a defeated Germany, and the level of industry which would be permitted in Germany after the war. The two issues were linked. The lower the level of industry permitted, the higher the level of surplus industrial plant and equipment that could be shipped off to the Allies as reparations. At least, that was the theory. In practice it never worked out like that.
The negotiations must have been some of the most fruitless ever conducted. Here is an example from the discussions on footwear. As usual, the Western Allies; the US, Britain and Germany, disagreed with the Soviet Union, in this case on whether the Germans after the war would be permitted 1.9 pairs or 1.2 pairs of shoes per person per year:
"Footwear. In a divided recommendation of the Technical Staff, the American, British and French delegates favored a total annual per capita consumption of 1.9 pairs of shoes per year, of which 0.9 would be of leather. The Soviet delegate favored a total of 1.2 pairs, of which 0.5 would be of leather. Compromises were offered at 1.7 and 1.4 respectively for the totals. The Committee was not able to reach an agreement and the matter was referred to the Directorate of Economics."
There were similar disagreements on just about all industrial goods and commodities. In the event, the agreement reached in March 1946 was soon discarded and never implemented. As Ratchford and Ross say at the end of their book, writing in 1947:
"The final agreement had been reached only after the hardest kind of negotiating. In order to reach any agreement at all, some of the most difficult problems had been evaded entirely and others had been dealt with in vague, general terms which were capable of varying interpretations.... the operation of the Plan was suspended only a short time after it had been agreed upon. It is doubtful that it will ever by put into operation again, or, if it is, only after substantial changes."
As, if not more interesting than the account of the negotiations, are the descriptions in the book, of Berlin after the war and the attitudes of the US soldiers and administrators. You may wish to compare these with other contemporary accounts of Germany and Berlin after the war which I've quoted in this blog, such as the books 'Berlin Twilight' and 'The Bonfire of Berlin' and the films 'Germany Year Zero' and 'A Defeated People'. Here are some extracts from 'Berlin Reparations Assignment':
"The physical setting in which an international agreement is negotiated is usually of little significance. In this case, however, the weird physical setting and the fantastic economic, political, and social conditions which went with it were so strange and unique that they had a pronounced effect on the personnel and operations of the military government organization within which the reparations plan had to be formulated. Those conditions created an atmosphere so unreal, so nightmarish, so demoralizing that efficient work was almost impossible."
"In 1945 [Berlin] was a fantastic heap of ruins - the prostrate capital of a prostrate nation. One must see the devastation to comprehend it. The traveller who arrived in Berlin by air, only forty-eight hours from undamaged America, was confronted by a sight he is not likely to forget. As his plane circled for a landing at Tempelhof Airfield - almost in the center of the city - the spectacle below hit him almost like a physical blow."
"Great as was the material devastation in Berlin, the human devastation was probably equal to it. The years of war and bombing, the Russian siege and occupation, the separation of families, the high casualty rate in the armed forces, and, in the last year, the uncertainty as to the fate of any who had not been reported killed, the shortages, the lack of jobs, the terrible physical devastation - all of these things had combined to produce a dazed, hungry, scared, bewildered population."
On the other hand:
"The American billets, after light repairs had been made, were usually comfortable and often luxurious.... Two or three servants cared for each house..."
Whilst some US troops and military government staff were conscientious and hard-working: "able, serious-minded men and women who worked hard at their jobs...there were also some who were definite liabilities. They did little themselves and contributed much to the demoralization of the group."
Four types of US soldiers and administrators were identified and described. One group had been sent to Berlin against their will and wanted to get home as quickly as possible. In the meantime they tried to do as little as possible and get as much out of it as they could.
Another group, mainly officers, wanted to get to Berlin, enjoy the experience and take a fling at the black market: "He considered the assignment a vacation and proceeded to celebrate the whole time."
There were also civilian counterparts to these vacationing soldiers: "who just wanted to see Berlin, enjoy the thrill of being part of an occupying force, and experience life in an environment where social customers and restrictions did not bind."
"Finally there were the civilians who were little more than modern carpet baggers... Usually these men knew Germany well... Their chief concern in Berlin was in establishing black market connections and in arranging various trips to various parts of Germany and near-by countries."
For those engaged in black market operations... "drink was in effect free. Drinks were paid for in occupation marks which ... were so plentiful that they were hardly considered as money. For example, the price of one pack of American cigarettes in the black market would buy fifty double scotches at the bar."
"Again it should be emphasised that there were plenty of able, conscientious, hard-working people in military government. But the four types described above constituted a sizeable group which did much to break down the morale of the organization."
Comments