A modern Marshall Plan?

Abstract

At end of Second World War, Allies were determined that Germany should never go to war again. Although country, divided into four zones occupied by Britain, United States, France and Soviet Union, was in economic chaos, much of its industrial base had survived. The first 'Level of Industry Plan' envisaged destruction of what was left of German war machine by reducing steel and coal production and dismantling heavy engineering industries. Around 1,500 listed manufacturing plants would be destroyed or removed to Allied countries. Germany was destined for standard of life that had existed during Great Depression and, it was hoped, a peaceful pastoral society with a little light industry would emerge. All Allies took part in this planned post-war plundering of German industry and technology. As well as physically removing factories, victors seized intellectual property (patents, industrial secrets, scientific and technical knowledge) along with many scientists and technicians, including most famously, Werner von Braun who had worked on V2 Rocket. An elite British intelligence unit abducted hundreds of German scientists and put them to work in government ministries and private firms in UK, giving a boost to British business and impeding German ability to compete. Ironically, Volkswagen factory was offered to Britain but rejected, Rootes commission reporting that the vehicle does not meet fundamental technical requirement of a motor-car... is quite unattractive to average buyer... to build car commercially would be a completely uneconomic enterprise. The revival of factory was largely down to a British army officer, Major Ivan Hirst, who persuaded military to buy car. By 1946 factory was producing 1,000 vehicles a month and in 1947 commenced exports to Holland.