The President's Economic Mission to Germany and Austria facts for kids
The President's Economic Mission to Germany and Austria was a series of reports. These reports were asked for by US President Harry S. Truman. They were written by former US President Herbert Hoover.
After World War I, Hoover had experience with Germany. Because of this, President Truman chose him in January 1947. Hoover's job was to travel through Europe. He focused on Germany and Austria. His goal was to find out about the food situation in these countries. They were under Allied occupation after World War II.
Hoover traveled through what became West Germany. He used a special train coach. He wrote several reports. These reports were very critical of how the US was managing its occupation. He said Germany's economy had fallen to its lowest point in a hundred years.
Hoover suggested a new economic plan. He believed this would help American taxpayers. It would stop them from having to support Central Europe forever.
Why Germany's Economy Mattered
Herbert Hoover's report from March 1947 was very important. It was called "The necessary steps for promotion of German exports." This report helped to stop a plan called the Morgenthau Plan. This plan wanted to weaken Germany's industry.
Hoover's report said something key: "There is the illusion that the New Germany... can be reduced to a 'pastoral state'." This meant turning Germany into a country mostly focused on farming. Hoover argued this could not be done. He said it would be impossible to support the large population if Germany's factories were destroyed.
General Lucius D. Clay agreed with Hoover. Clay believed Germany's economy was crucial for all of Europe to get better. He had tried to find ways around strict rules. These rules aimed to reduce Germany's industrial power. Clay wanted a less harsh policy for the US occupation zone.
Hoover's ideas were similar to other experts. He stated that Europe's economy was connected to Germany's. He said this was because of the exchange of raw materials and goods. He believed Europe could not fully recover without Germany's help.
General Clay and the US War Department supported Hoover's findings. They agreed that Germany should help Europe recover. However, the State Department disagreed. They wrote a paper that strongly criticized Hoover's report. They thought Germany's neighbors should be helped first.
President Truman's assistant, John R. Steelman, was worried. He feared making Germany too strong again. Edwin W. Pauley, an advisor at the Potsdam Conference, also disliked the report. Pauley said following Hoover's ideas would be a big change in US policy. He warned about Germany possibly dominating Europe again.
Despite these strong disagreements, Hoover's report made one thing clear. US leaders realized a new policy was needed. They understood that almost any change would be better than the current situation.