3. Note: Grouping heavy and light machinery, the revised level is 105% of prewar production.
4. Fine mechanics and optics. In the field of precision optics, no plants will be made available for reparations. The capacity is to be retained to provide for internal needs and to attain exports of the same products equal to those from the bizonal area in 1936.
In the case of photo-technics, no plants are to be made available for reparations and the retained capacity will be used to attain 150% of prewar exports in this field from the bizonal area as well as to provide for internal requirements.
In the watch making industry, one plant, which had been converted to war use, will be made available for reparations.
Capacity in excess of prewar will be retained in the field of precision mechanics. However, all plants, which had been built for or substantially modified to war use, will be made available for reparations.
5. Machine tools. The March, 1946 level of industry plan permits the production of RM 74 million in all of Germany, or 11.4% of 1938 output. The bizonal area, before the war, produced about 43% of Germany's [machine tools. Present capacity is estimated at RM 259 million]. It has been determined that capacity sufficient to produce RM 170 million must be retained in order to support the revised level of industry. This will leave about 35% of present capacity for reparations.
C. Agriculture and road tractors. Estimated bizonal capacity for agriculture and road tractors is 16,500. This is inadequate to meet bizonal requirements, which are estimated to be 19,500. Consequently, there will be no reparations in this industry.
D. Transportation industries: Automotive Industry. Capacity will be retained for the production of 160,000 passenger cars and 61,500 commercial vehicles. This compares with 40,000 passenger cars and 38,000 commercial vehicles allotted to the bizonal area under the old plan.
E. Electrical engineering. The present capacity of the electrical industry in the bizonal area is required with the exception of three war-time plants. Capacity is estimated to be about one-half greater than prewar. This increase is necessary because prewar requirements of the bizonal area were in large part met from capacities in Berlin, which have been almost totally dismantled. Under the old plan, about one-quarter of present bizonal capacity would have been removed.
F. Chemicals:
1. Approximately the 1936 capacity will be retained in the chemical industry which is about 42% more than that provided in the old plan. However, a large number of explosive and other chemical plants were developed for war purposes. Between 40 and 50% of the total chemical capacity, including war explosives will, therefore, be removed as reparations or destroyed. More than three quarters of such removals represent war explosive plants that have already been offered for reparations or declared for destruction.
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