740.00119 Control (Germany)/1–1145

Memorandum by the Secretary of the Treasury (Morgenthau) to the Secretary of State

There is attached a memorandum which I am sending to the President, relating to the problem of what to do with Germany after her defeat.

I am looking forward to discussing the German problem with you next Wednesday.43

Henry Morgenthau
[Annex]

Memorandum by the Secretary of the Treasury (Morgenthau) to President Roosevelt

During the last few months we have been giving further study to the problem of what to do with Germany after her defeat.

We are more convinced than ever that if we really mean to deprive Germany of the ability to make war again within a few years it is absolutely essential that she be deprived of her chemical, metallurgical and electrical industries. We don’t think that this alone will guarantee peace, but that it is one of the steps we must take now.

We base this conclusion on the following premises, which seem to us unassailable:

(1)
The German people have the will to try it again.
(2)
Programs for democracy, re-education and kindness cannot destroy this will within any brief time.
(3)
Heavy industry is the core of Germany’s warmaking potential.

Nearly all Americans grant the first point. A few, such as Dorothy Thompson,44 appear to disagree with the second; but all that we know and have learned recently—our experience with war prisoners, for [Page 377] instance—seems to argue against them. As to the third, America’s own accomplishments in four years seem to us a shining lesson of what an equally versatile people can do. Our industry was converted from the world’s greatest peacetime producer in 1940 to the world’s greatest producer of military weapons in 1944. The Germans are versatile. Leave them the necessary heavy industry to build on and they can work as fast and as effectively as we.

The more I think of this problem, and the more I hear and read discussions of it, the clearer it seems to me that the real motive of most of those who oppose a weak Germany is not any actual disagreement on these three points. On the contrary, it is simply an expression of fear of Russia and communism. It is the twenty-year-old idea of a “bulwark against Bolshevism”—which was one of the factors that brought this present war down on us.

Because the people who hold this view are unwilling (for reasons which, no doubt, they regard as statesmanlike) to come out in the open and lay the real issue on the table, all sorts of smoke screens are thrown up to support the proposition that Germany must be rebuilt. Examples are:

(a)
The fallacy that Europe needs a strong industrial Germany.
(b)
The contention that recurring reparations (which would require immediate reconstruction of the German economy) are necessary so that Germany may be made to pay for the destruction she has caused.
(c)
The naive belief that the removal or destruction of all German war materials and the German armament industry would in itself prevent Germany from waging another war.
(d)
The illogical assumption that a “soft” peace would facilitate the growth of democracy in Germany.
(e)
The fallacy that making Germany a predominantly agricultural country, with light industries but no heavy industries, would mean starving Germans.

We can submit to you studies which in our opinion will demonstrate that these propositions and others leading to the same conclusions are false.

This thing needs to be dragged out into the open. I feel so deeply about it that I speak strongly. If we don’t face it I am just as sure as I can be that we are going to let a lot of hollow and hypocritical propaganda lead us into recreating a strong Germany and making a foe of Russia. I shudder for the sake of our children to think of what will follow.

There is nothing that I can think of that can do more at this moment to engender trust or distrust between the United States and Russia than the position this Government takes on the German problem.

P.S.: I have given a copy of this to Ed Stettinius.

  1. January 17.
  2. Newspaper columnist and radio commentator.