6.  Political Decentralization.
 
 
 The military administration in Germany in the initial period should
be carried out with a view toward the eventual partitioning of Germany
into three states.  To facilitate partitioning and to assure its
permanence the military authorities should be guided by the following
principles:
 
 
 (a)  Dismiss all policy-making officials of the Reich government
and deal primarily with local governments.
 
 
 (b)  Encourage the reestablishment of state governments in each 
of the states (Lander) corresponding to 18 states into which Germany
is presently divided and in addition make the Prussian provinces 
seperate states.
 
 
 (c)  Upon the partition of Germany, the various state governments 
should be encouraged to organize a federal government for each of the
newly partitioned areas.  Such new governments should be in the form 
of a confederation of states, with emphasis on states' rights and a 
large degree of local automony.
 
 
7.  Responsibility of Military for Local German Economy.
 
 
 The sole purpose of the military in control of the German economy
shall be to facilitate military operations and military occupation.  
The Allied Military Government shall not assume responsibility for 
such economis problems as price controls, rationing, unemployment, 
production, reconstruction, distribution, consumption, housing, or 
transportation, or take any measures designed to maintain or strengthen 
operations.  The responsibility for sustaining the German economy and 
people rests with the German people with such facilities as may be 
available under the circumstances.
 
 
8.  Controls over Development of German Economy.
 
 
 During a period of at least twenty years after surrender adequate 
controls, including controls over foreign trade and tight restrictions 
on capital imports, shall be maintained by teh United Nations designed 
to prevent in the newly-established states the establishment or expan-
sion of key industries basic to the German military potential and to
control other key industries.
 
 
9.  Punishment of War Crimes and Treatment of Special Groups.
 
 
 There is attached (Appendix B) a program for the punishment of
certain war crimes and for the treatment of Nazi orginizations and 
other special groups.
 
 
10.  Wearing of Insignia and Uniforms.
 
 
 (a)  No person in German (except members of the United Nations and
neutral countries) shall be permitted to wear any military insignia 
of rank or branch of service, service ribbons or military medals.