The industrial plans for Germany

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The industrial plans for Germany or Level of Industry plans for Germany were the plans to lower the German industrial potential after World War II. At the Potsdam conference the victorious Allies had decided to abolish the German armed forces as well as all munitions factories and civilian industries that could support them. This included the destruction of all ship and aircraft manufacturing capability. Further it was decided that civilian industries which might have a military potential, which in the modern era of “total war” included virtually all, were to be severely restricted. The restriction of the latter was set to Germany's “approved peacetime needs”, which were defined to be set on the average European standard. In order to achieve this each type of industry was subsequently reviewed to see how many factories Germany required under these minimum level of industry requirements.

The first "level of industry" plan, signed by the Allies in March 29, 1946, stated that German heavy industry was to be lowered to 50% of its 1938 levels by the destruction of 1,500 listed manufacturing plants.<ref>Henry C. Wallich. Mainsprings of the German Revival (1955) pg. 348.</ref> In January 1946 the Allied Control Council set the foundation of the future German economy by putting a cap on German steel production, the maximum allowed was set at about 25% of the pre-war production level.<ref>"Cornerstone of Steel", Time Magazine, January 21, 1946</ref> Steel plants thus made redundant were dismantled. Germany was to be reduced to the standard of life it had known at the height of the Great depression (1932). <ref>Cost of Defeat, Time Magazine, April 8, 1946</ref> Car production was set to 10% of pre-war levels, etc <ref>The President's Economic Mission to Germany and Austria, Report 3 Herbert Hoover, March, 1947 pg. 8</ref>

The first plan was subsequently followed by a number of new ones, the last was signed in 1949.

By 1949 the West Germans had become confident enough to mount increasing protests against the ongoing Allied policy of factory dismantling. The Western Allies, the U.S., France, and the UK finally had to halt dismantling in 1950.[1][2]