food-surplus producing countries. The Potsdam agreement and the Level-of-Industry-Plan made it impossible for Germany to function again as a converter nation and as the second greatest exporter in the world of producer goods, which helped half the world increase its level of production. The German Vicious Cycle Brown sketched the process of the German economic disease as follows: The Iron Curtain separated 20 million non-farm people from the Eastern breadbasket. These 20 million got only half of what it takes to keep a worker in health and vigor. The farmers produced 30 percent less than before the war, because of lack of fertilizers, seeds, equipment and machinery. Imported food could not be paid for by exports, because exports had been reduced to a trickle. Hence the German workers in the Ruhr, which was the industrial heart of Germany and likewise of Europe, got only half the food they had gotten before the war, even with American relief. Hence they accomplished half as much work as before the war. The worker produced half as much coal, which in turn caused an acute shortage of steel for the manufacturers who were supposed to produce mining machinery, locomotives, freight cars and coal barges and repair parts to restore the devastated transport-equipment of Germany. Plan for Reconstruction Germany is to be put back on her economic feet and production must be the first objective; long range problems should not further be placed ahead of production. As long as the partition of Germany continues, Germany must export twice as much per capita from Western Germany as she did before the war in order to pay for the food necessary to feed her workers and give them energy to produce. Reparations should therefore end in August 1947. Denazification should be brought to an end. The right to return to work should be fully granted to industrial technicians, managers and skilled workers until a denazification court decides to revocate them at a later date. German militarism is dead and the taken measures will keep it dead. German Plants manufacturing munitions of war are demolished or dismantled and transferred to the victor nations as reparations. The German airplane industry is destructed. A small but highly effective inspection and control service, maintained by the Allied Governments will bring to attention any attempt to use materials for a future war. No German army will be permitted to exist. The vicious