THE UNDER SECRETARY OF STATE
                         WASHINGTON                         
 
 
                MEMORANDUM FOR THE PRESIDENT                
 
 
Subject: 
Comparison of the recommendations of the Kilgore Subcommittee with
those of the Department on the economic treatment of Germany
.
 
 
      The present recommendations of the report of the Kilgore
Subcommittee with respect to the economic treatment of Germany are as
follows:
 
 
       1. There should be a sweeping reform of the structure and
control of German industry to permit a peaceful and democratic Germany
to arise.  This reform should consist of a breaking up of monopolies
and cartels, punishment of, say, ten thousand of the leading
imperialist-minded German industrialists, and confiscation of German
property abroad and patent rights.
 
 
       2. All direct munitions industries should be dismantled and the
primary indirect munitions industries including the metallurgical and
chemical industries should be dismantled and removed to devastated
areas of Europe. The fate of the remainder of German industry is made
depehdent upon future political developments in Germany.
 
 
       The Kilgore report also contains certain recommendations
affecting international cartels, patent licensing agreements, and the
exchange of technological "know how".
 
 
The