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      g. Dismantlement of aircraft industry and prohibition on 
manufacture of aircraft.
 
2. Political Actions
 
     a. Destruction of the National Socialist System.
 
          The Department of State recommends the following measures 
designed to destroy the Nazi tyranny in Germany:
 
           (1) Dissolution of the National Socialist Party and its
affiliated and supervised organs with the transfer to public 
agencies of such social services now performed by the Nazi groups 
as it may be found desirable to continue.
 
     (2) Abrogation of the Nazi laws which provided the legal 
basis of the regime and which established discriminations on the 
basis of race, creed and political opinion.
 
          (3) Abolition of Nazi public institutions, such as the 
People's Courts and the Labor Front, which were set up as instru-
ments of Party domination.
 
          (4) The elimination of active Nazis from public and quasi-
public office and from positions of importance in private enter-
prise.
 
     The Department of State believes it desirable to distinguish
between the total membership of the Nazi Party, numbering probably 
more than 6 million, and those Germans, numbering about 2 million, 
who have been Party leaders at all levels of its organization. 
This latter group can be easily identified in a preliminary way 
by office-holding in the various Party organizations. So many 
Germans have joined the Party for so many different reasons that 
nominal membership is no serious index of political conviction. 
Selective expulsion of the proposed sort would effectively destroy 
the structure and influence of National Socialism and would 
immeasurably lighten the administrative burden of military 
government.
 
     (5) The selection of personnel for labor reparation, in
case certain of our Allies insist on that form of reparation, from 
the ranks of active Nazis and of Nazi organizations such as the 
SS rather than by an indiscriminate draft.
 
      This recommended procedure would place the burden where it 
most justly belongs and would remove from Germany some of the 
most dangerous political influences during the period when an 
effort must be made to establish an acceptable government.
 
                         (6) The arrest