The Morgenthau Plan was a plan for the occupation of Germany after the Second World War that advocated harsh measures that would ensure that Germany could never wage war again. This was to be achieved in three steps.
The plan was proposed by American Treasury Secretary Henry Morgenthau, Jr.
A version of the plan, focused on turning Germany into "a country primarily agricultural and pastoral in its character" was signed by U.S. President Franklin D. Roosevelt and the British Prime Minister Winston Churchill at the Second Quebec Conference.
President Roosevelt then gradually pulled back from this extreme position, but had at the time of his death not made up his mind as to the future of Germany. With the death of the president the plan itself never took effect, but as its ideas permeated much of American thinking, especially in secretary Morgenthau's Treasury and the War Department, it did lead to a number of offshoots.
Most notable amongst these offshoots are the Potsdam Conference, Joint Chiefs of Staff Directive 1067 (April 1945 - July 1947) , and the industrial plans for Germany.
The first of the latter, signed in 1946, stated that German heavy industry was to be lowered to 50% of its 1938 levels by the destruction of 1,500 manufacturing plantsHenry C. Wallich. Mainsprings of the German Revival (1955) pg. 348.
The problems brought on by these types of policies were soon apparent. Germany had long been the industrial giant of Europe, and its poverty held back the general European recovery. The continued scarcity in Germany also led to considerable expenses for the occupying powers, which were obligated to try and make up the most important shortfalls. In view of the continued poverty and famine in Europe, and with the Cold War starting, it was by 1947 apparent that a change of policy was required.
The most notable example of this change was a plan established by U.S. Secretary of State George Marshall, the "European Recovery Program", better known as the Marshall Plan, which in a slightly less generous form eventually was extended to also include the newly formed West Germany.
The ease with which the metallurgical, chemical, and electric industries in Germany can be converted from peace to war has already been impressed upon us by bitter experience. It must also be remembered that the Germans have devastated a large portion of the industries of Russia and of other neighbouring Allies, and it is only in accordance with justice that these injured countries should be entitled to remove the machinery they require in order to repair the losses they have suffered. The industries referred to in the Ruhr and in the Saar would therefore be necessarily put out of action and closed down. It was felt that the two districts should be put under some body under the world organization which would supervise the dismantling of these industries and make sure that they were not started up again by some subterfuge.
This programme for eliminating the war-making industries in the Ruhr and in the Saar is looking forward to converting Germany into a country primary agricultural and pastoral in its character.
Source: United States Government Printing Office, Report on the Morgenthau Diaries prepared by the Subcommittee of the Senate Committee of the Judiciary appointed to investigate the Administration of the Internal Security Act and other Internal Security Laws, (Washington, 1967) volume 1, pp. 620-621.''
Prime Minister Winston Churchill cabled news of the agreement to Clement Attlee, his deputy in London, and US President Franklin D. Roosevelt advised the Secretaries of State and War of his approval in a memo dated September 15, 1944.
Roosevelt's motivations for agreeing to Morgenthau's proposal may be attributed to his desire to be on good terms with Stalin and to a personal conviction that Germany must be treated harshly. In an August 26, 1944 letter to Wilhelmina of the Netherlands, Roosevelt wrote that "There are two schools of thought, those who would be altruistic in regard to the Germans, hoping by loving kindness to make them Christians again - and those who would adopt a much 'tougher' attitude. Most decidedly I belong to the latter school, for though I am not bloodthirsty, I want the Germans to know that this time at least they have definitely lost the war." The Roosevelt Letters, volume III: 1928 - 1945, London, 1952. Roosevelt is also quoted as saying to Morgenthau that "We have got to be tough with the Germany and I mean the German people not just the Nazis. We either have to castrate the German people or you have got to treat them in such a manner so they can't just go on reproducing people who want to continue the way they have in the past" Blum, p. 342. At the Tehran Conference in late 1943 Stalin had proposed that at least 50,000 and perhaps 100,000 German officers should be murdered. Roosevelt's son, Elliot, enthusiastically agreed. The President remarked that perhaps 49,000 should be enoughUS Department of State, The Conference at Cairo and Tehran, 1943 (Washington: 1961) p. 602. When Churchill became enraged at these comments, Stalin quickly assured him that they were joking Michael Beschloss, "The Conquerors". Roosevelt was presumably joking, but at the Yalta Conference the President said that he was feeling "very much more bloodthirsty towards Germany" than earlier and indicated that he hoped Stalin would again "propose a toast to the execution of 50,000 officers of the German army"US Department of State, The Yalta Conference, 1945 (Washington: 1961), Roosevelt-Stalin Meeting, Feb 4 1945, Bohlen Minutes, pp. 566-573.
The Morgenthau plan did face at least some mild level of opposition in Roosevelt's government, as evidenced by this excerpt of a note to the president from Henry L. Stimson, Secretary of War. dated September 5, 1944. *
Lord Cherwell has been described as having "an almost pathological hatred for Nazi Germany, and an almost medieval desire for revenge was a part of his character" John W. Wheeler-Bennett and Anthony Nicholls, "The Semblance of Peace" (London: 1972), p. 179. Morgenthau is quoted as saying to his staff that "I can't overemphasize how helpful Lord Cherwell was because he could advise how to handle Churchill"Blum, p. 373. In any case, Cherwell was able to persuade Churchill to change his mind. Churchill later said that "At first I was violently opposed to the idea. But the President and Mr Morgenthau - from whom we had much to ask - were so insistent that in the end we agreed to consider it"Churchill, "The Tide of Victory", (London: 1954), pp. 138-139.
Some have read into the clause "from whom we had much to ask" that Churchill was bought off, and note a September 15 memo from Roosevelt to Hull stating that "Morgenthau has presented at Quebec, in conjunction with his plan for Germany, a proposal of credits to Britain totalling six and half billion dollars." Hull's comment on this was that "this might suggest to some the quid pro quo with which the Secretary of the Treasury was able to get Mr Churchill's adherence to his cataclysmic plan for Germany" Hull, "Memoirs", pp. 1613-1614.
At Quebec White made sure that Lord Cherwell understood that economic aid to Britain was dependent on British approval of the plan. During the signing of the plan, which coincided with the signing of a loan agreement, President Roosevelt proposed that they sign the plan first. This prompted Churchil to exclaim: "What do you want me to do? Get on my hind legs and beg like Fala?"Time Magazine, Nov. 23, 1953 INVESTIGATIONS One Man's Greed
An excerpt from the minutes of the Quebec meeting, taken down by George M. Elsey Commander, U.S. Naval Reserve, and duty officer, White House Map Room, 1941-46, reads as follows: *
"And the President and the Prime Minister agreed on a policy towards Germany."
"This program for eliminating the warmaking industries in the Ruhr and the Saar is looking forward to converting Germany into a country primarily agricultural and pastoral in its character. The Prime Minister and the President were in agreement on this program."
1. Demilitarization of Germany.
It should be the aim of the Allied Forces to accomplish the complete demilitarization of Germany in the shortest possible period of time after surrender. This means completely disarming the German Army and people (including the removal or destruction of all war material), the total destruction of the whole German armament industry, and the removal or destruction of other key industries which are basic to military strength.
2. Partitioning of Germany.
(a) Poland should get that part of East Prussia which doesn't go to the U.S.S.R. and the southern portion of Silesia as indicated on the attached map, (Appendix A).
(b) France should get the Saar and the adjacent territories bounded by the Rhine and the Moselle Rivers.
(c) As indicated in part 3 an International zone should be created containing the Ruhr and the surrounding industrial areas.
(d) The remaining portion of Germany should be divided into two autonomous, independent states, (1) a South German state comprising Bavaria, Wuerttemberg, Baden and some smaller areas and (2) a North German state comprising a large part of the old state of Prussia, Saxony, Thuringia and several smaller states.
There shall be a customs union between the new South German state and Austria, which will be restored to her pre-1938 political borders.
3. The Ruhr Area. (The Ruhr, surrounding industrial areas, as shown on the attached map, including the Rhineland, the Kiel Canal, and all German territory north of the Kiel Canal.)
Here lies the heart of German industrial power, the cauldron of wars. This area should not only be stripped of all presently existing industries but so weakened and controlled that it can not in the fore- seeable future become an industrial area. The following steps will accomplish this:
(a) Within a short period, if possible not longer than 6 months after the cessation of hostilities, all industrial plants and equipment not destroyed by military action shall either be completely dismantled and removed from the area or completely destroyed. All equipment shall be removed from the mines and the mines shall be thoroughly wrecked.
It is anticipated that the stripping of this area would be accomplished in three stages:
(i) The military forces immediately upon entry into the area shal destroy all plants and equipment which cannot be removed.
(ii) Removal of plants and equipment by members of the United Nations as restitution and reparation (Paragraph 4).
(iii) All plants and equipment not removed within a stated period of time, say 6 months, will be completely destroyed or reduced to scrap and allocated to the United Nations.
(b) All people within the area should be made to understand that this area will not again be allowed to become an industrial area. Accordingly, all people and their families within the area having special skills or technical training should be encouraged to migrate permanently from the area and should be as widely dispersed as possible.
(c) The area should be made an international zone to be governed by an international security organization to be established by the United Nations. In governing the area the international organization should be guided by policies designed to further the above stated objectives.
4. Restitution and Reparation.
Reparations, in the form of recurrent payments and deliveries, should not be demanded. Restitution and reparation shall be effected by the transfer of existing German resources and territories, e.g,
(a) by restitution of property looted by the Germans in territories occupied by them;
(b) by transfer of German territory and German private rights in industrial property situated in such territory to invaded countries and the international organization under the program of partition;
(c) by the removal and distribution among devastated countries of industrial plants and equipment situated within the International Zone and the North and South German states delimited in the section on partition;
(d) by forced German labor outside Germany; and
(e) by confiscation of all German assets of any character whatso-ever outside of Germany.
On March 20, 1945 President Roosevelt was warned that the JCS 1067 was not workable, it would let the Germans "stew in their own juice". Roosevelts response was "Let them have soup kitchens! Let their economy sink!". Asked if he wanted the German people to starve he replied; "Why not?".Michael R. Beschloss, The Conquerors: Roosevelt, Truman and the Destruction of Hitler's Germany, 1941-1945, pg. 196.
On May 10, 1945 Truman signed the JCS 1067. Morgenthau told his staff that it was a big day for the Treasury, and that he hoped that someone doesn’t recognize it as the Morgenthau Plan.Michael R. Beschloss, The Conquerors: Roosevelt, Truman and the Destruction of Hitler's Germany, 1941-1945, pg. 233.
E. Allan Lightner, Jr. Assistant Chief, 1945-47, and Associate Chief, 1947-48, of the Central European Affairs Division, Department of State summed it up as follows: *
During the first two years of Allied occupation the Trasury program of industrial dismantlement of Germany was vigorously pursued by american officials John Backer, Priming the German economy- American occupation policies 1945-1948 p.200 . As a consequence of these policies the economic reconstruction of Europe was delayed by several years. Vladimir Petrov, Money and Conquest: Allied Occupation Currencies in World War II.1967 p. 164.
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 H. 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.' James Stewart Martin. All Honorable Men (1950) pg. 191.
Morgenthau had written a book outlining the full Morgenthau Plan, Germany is Our Problem. General Eisenhower, then U.S. Military Governor in occupied Germany, supported the plan and in November 1945 he approved the distribution of one thousand free copies of the book to American military officials in Germany.Stephen Ambrose, Eisenhower: Soldier, General of the Army, President-Elect, p.422. By February 28, 1947 it was estimated that 4,160,000 German former prisoners of war, by General Eisenhower relabeled as Disarmed Enemy Forces in order to negate the Geneva convention, were used as forced labor in work camps outside Germany: 3,000,000 in Russia, 750,000 in France, 400,000 in Britain and 10,000 in Belgium. * Meanwhile in Germany large parts of the population were starving at a time when the "nutritional condition in those countries is nearly pre-war normal".[http://www.trumanlibrary.org/whistlestop/study_collections/marshall/large/documents/index.php?pagenumber=11&documentid=24&documentdate=1947-02-28&studycollectionid=mp&nav=OK All armaments plants, included some that could have been converted to civilian operation, were dismantled or destroyed. A large proportion of operational civilian plants were dismantled and transported to the victorious nations, mainly France and Russia.
'In addition to the above courses of action, there have been general policies of destruction or limitation of possible peaceful productivity under the headings of "pastoral state" and "war potential." The original of these policies apparently expressed on September 15, 1944, at Quebec, aimed at:
- "converting Germany into a country principally agricultural and pastoral,"
and included,
- "the industries of the Ruhr and the Saar would therefore be put out of action, closed down...."'
As late as March 1947 there were still active plans to let France annex the Ruhr just as eastern Prussia and Silesia had been annexed by Russia and Poland, or at a minimum remove it from Germany.
"The Ruhr - The Times' article and editorial on the breach in the US ranks on the subject of the Ruhr were accurate, and the latter excellent. I have been disturbed over the arena in which the debate has been carried out. Clay and Draper claim that Germany will go communist shortly after any proposal to infringe on its sovereignty over the Ruhr is carried out;".
The Saar, another important source of coal and industry for Germany, was likewise to be lost by the Germans. It was cut out from Germany and its resources put under French control. In 1955, the French, under pressure from West Germany and her newfound allies, held a plebiscite in the Saar Protectorate on the question of reunification or independence. Reunification won overwhelmingly, and on January 1, 1957, Saarland rejoined West Germany.
As Germany was allowed no airplane production nor any shipbuilding capacity to supply a merchant navy, all facilities of this type were destroyed over a period of several years. A typical example of this activity by the allies was the Bloehm & Voss shipyard in Hamburg, where explosive demolition was still taking place as late as 1949. Everything that could not be dismantled was blown up or otherwise destroyed. A small-scale attempt to revive the company in 1948 ended with the owners and a number of employees being thrown in jail by the British. It was not until 1953 that the situation gradually started to improve for the Bloehm & Voss, thanks in part to repeated pleas by German Chancellor Konrad Adenauer to the Allied High Commissioners. B&V Chronology B&V official history
Over a period of years American policy eventually started to change away from this policy of industrial destruction. The main turning point was the speech[http://usa.usembassy.de/etexts/ga4-460906.htm held in Stuttgart by the United States Secretary of State James F. Byrnes on September 6, 1946.
Reports such as this, dated March 3, 1947, also argued for a change of policy, among other things through speaking frankly of the expected consequences.
'There are several illusions in all this "war potential" attitude.
- a. There is the illusion that the New Germany left after the annexations can be reduced to a "pastoral state". It cannot be done unless we exterminate or move 25,000,000 people out of it. This would approximately reduce Germany to the density of the population of France.
- ...' *
By 1949, when the Marshall Plan was extended to cover the western half of Germany, the Morgenthau Plan and its effects had started to be deliberately forgotten and suppressed, especially by its former proponents.
World War II | World War II politics | Aftermath of World War II | History of Germany | Economic history
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