Industrial Plans For Germany - End of Dismantling

End of Dismantling

The dismantling of German industry continued, and in 1949 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. (See also Adenauers original letter to Schuman, Ernest Bevins letter to Robert Schuman urging a reconsideration of the dismantling policy.) 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.

In 1951 West Germany agreed to join the European Coal and Steel Community (ECSC) the following year. This meant that some of the economic restrictions on production capacity and on actual production that were imposed by the International Authority for the Ruhr were lifted, and that its role was taken over by the ECSC.

The final limitations on German industrial levels were lifted after the European Coal and Steel Community entered into force in 1952, though arms manufacture remained prohibited. The Allied efforts to "de-concentrate and reorganize" the German coal, iron and steel industry were also continued.

Although dismantling of West German industry ended in 1951, "industrial disarmament" lingered in restrictions on actual German Steel production, and production capacity, as well as on restriction on key industries. All remaining restrictions were finally rescinded on May 5, 1955. According to Frederick H. Gareau, noting that although US policy had changed well before that; "the last act of the Morgenthau drama occurred on that date (May 5, 1955) or when the Saar was returned to Germany (January 1, 1957)."

Vladimir Petrov concludes that the Allies "delayed by several years the economic reconstruction of the wartorn continent, a reconstruction which subsequently cost the United States billions of dollars." (see Marshall Plan)