III. The Federal Government further declares its earnest determination to maintain the demilitarization of the federal territory and to endeavor by all means in its power to prevent the re-creation of armed forces of any kind. To this end the Federal Government will co-operate fully with the High Commission in the work of the Military Security Board.
IV. It is further agreed between them that the Federal Government shall now initiate the gradual re-establishment of consular and commercial relations with those countries where such relations appear advantageous.
V. The Federal Government affirms its resolve as a freely-elected democratic body to pursue unreservedly the principles of freedom, tolerance and humanity which unite the nations of Western Europe and to conduct its affairs according to those principles. The Federal Government is firmly determined to eradicate all traces of Nazism from German life and institutions and to prevent the revival of totalitarianism in this or any form. It will seek to liberalize the structure of Government and to exclude authoritarianism.
VI. In the field of decartelization and monopolistic practices the Federal Government will take legislative action corresponding to decisions taken by the High Commission in accordance with Article 2 (B) of the Occupation Statute.
VII. The High Commission has communicated to the Chancellor the terms of an agreement reached by the three Powers for the relaxation of the present restrictions on German shipbuilding.
The main provisions now agreed are as follows:—
The construction of ocean-going ships, excluding those primarily designed for passengers, and tankers up to 7,200 tons, fishing vessels up to 650 tons and coastal vessels up to 2,700 tons not exceeding 12 knots service speed may begin forthwith. The number of such ships to be constructed shall not be limited.
The Federal Government may, with the approval of the High Commission, acquire or construct before 31st December, 1950, six special ships exceeding these limitations of size and speed. Further particulars on this point were communicated to the Chancellor.
The Federal Chancellor raised the question of the construction and repair of ships in German shipyards for export. The High Commissioners informed him that this matter was not discussed by the Committee of Experts and that they were not in a position to give him a final decision on it. However, they will meanwhile authorize German shipyards to construct for export ships of the types and within such limits of numbers as are applicable to construction for the German economy. They will authorize repair of foreign ships without restriction.