CAB129-37 — Page 688

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Board and such licences will not be given, save in exceptional

ircumstances, while the capacity of the industry remains higher

han that necessary to produce the annual permitted amount.

The High Commissioners should point this out to the Federal

hancellor in order that he may understand that the re-equipment

f steel plants which have been wholly or partially dismantled

or destroyed will not be permitted. The High Commissioners will

ake any other action which they may deem necessary to ensure

hat this principle is observed.

0. The High Commission shall be given a special responsi-

ility with regard to the control of production and the allo-

Mation of the products of the seven steel plants to be taken off

the dismantling list, retaining full powers in this respect; and

They will take immediate action at these plants if they find

hat the permitted level of steel production is being exceeded.

All equipment which has been dismantled by the date

which agreement is reached between the High Commissioners and

The Federal Chancellor will be made available to I.A.R.A. as

Teparations. The High Commissioners shall have discretion to

Fake exceptions only in those cases where a very small amount

equipment has already been dismantled and the retention

this equipment will not materially affect the production

apacity of the plant in question.

2. The High Commissioners should endeavour to reach a very

Quick settlement with the Federal Chancellor. If their discus-

lons with him should appear likely to become protracted, the

gb Commissioners may at their discretion slow down, without

rejudice to recommencement at full speed, dismantling at

ertain key plants from the list of those on which they are

Iven liberty to negotiate in accordance with the above paragraphs.

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