US policy towards German domestic cartels and cartel-like organizations

executive Csmmittee #n economic foreign pelicy Cemmittee en Private menspeliee and cartel# pelicy toward* ueman deemestic cartels and cartel like organizations fiCEFT D-80/45 dated 11 «June 1945 . (secret) 1. introduction. erman domestic cartels and similar organizations have had a two-fold significance* (a) they operated as private market regulations agencies to accomplish a monopolistic regulation of production ana siles. (b) to an increasing extent under the Nazi revise, they were used a* semi-autenomeus public organs to aid in the administration of government procurement , allocation, price stabilization, and standardization and rationalization programs in the field of production. In both roles German domestic cartels served as instruments through wgic& the larger concerns coy Id exert their domination of industry# tinder the "azis the leaders of the larger firms served not only as officials of private business organizarions but as government agents# л* officials of cartels, groups and similar organizations whoh had stood the testbof party reliability they were invested with broad authority over business licensing, raw materiao allocation and the issuance of government contracts. xhey used that authroity to strengthen and consolidate their position of the dominant firms not only by leiminating sa ller businesses but also by eli inating businesses owned by elements unfriednly to tye Nazi regime# ihe powerfi; domestic werman cartels — and through them the big German combines — were the dominant factors in inter¬ national carte Is in most of European heavy industry and in mant industries in the Western ^emispehre. through them the German firms were able to exercise monopoly control ober large sectors a' non-German industry — restricting output, controlling prices and tencology# during the war Gerilan cartels also served as agents for t ie economic spoliation of conquereed areas. Cartesl and economic groups in Germany performed a variety of important functions under the Nazis. In the gusoe cf HttU ^uftragalenkuiuLSStcllen they afminister the details of many procurement programs; as they formed an official li nk between business and materials -llo.atinfi office a; •• 'ШМ- УрЛЩцдеЩгПаП- they were charged with the detailed administration of id location programs. 4rthe same time hese organizations drew up standardization, rationalization and price crderes which b'ecane valid for their members subject to the approval of the minister of Armaments and War production for the first two types of oders and to that of the rice Commissioner for the third#