CAB129-45 — Page 118

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Page 118.

2. No enterprise shall be permitted, except under ficence from the Allied High Commission, to increase the productive capacity of any of its plant or equip- ment that is engaged or partly engaged in the industries listed in this Article, or of the industry as a whole, whether it is proposed to effect the increase by extension of existing facilities, the construction of new facilities, or the addition of new equip- ment. Such licences shall not be granted unless the Allied High Commission are satisfied with the arrangements made for the disposal of the capacity replaced.

ARTICLE VI

1. Subject to the provisions of paragraph 2 of this Article the production of crude steel shall be limited to 11.1 million tons a year.

2. The Allied High Commission will allow crude steel to be produced outside the foregoing limitation where this will facilitate the defence effort.

ARTICLE VII

1. The construction and acquisition of ships which include the military features, characteristics and equipment listed in Annex C to this Agreement and the modification of ships to include such features, characteristics and equipment shall be prohibited except under licence from the Allied High Commission.

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2. The term “acquisition" as used in this Article includes bare-boat chartering.

ARTICLE VIII

Nothing in this Agreement shall be interpreted as impairing or reducing the powers with which the Military Security Board is vested.

ARTICLE IX

This Agreement shall come into force from the date of signature and shall replace the Agreement concerning Prohibited and Limited Industries approved by the Foreign Ministers of France, the United Kingdom and the United States and signed by the Military Governors of the French, United Kingdom and United States Zones of Occupation in Germany in April, 1949.

Done in

this

day of

in the English and French languages, both texts being equally authentic.

1951,

ANNEX A

Group I

(a) All weapons including atomic means of warfare or apparatus of all calibres and natures capable of projecting lethal or destructive projectiles, liquid gases or toxic substances, their carriages and mountings.

(b) All projectiles for the above and their means of projection or propulsion. (c) All military means of destruction including but not limited to grenades, bombs, torpedoes, mines, depth mines, depth and demolition charges and self-propelled charges, all types of fuses therefor and all apparatus for the guiding, control and operation thereof including timing, sensing and homing devices.

(d) All military cutting or piercing weapons.

Group II

(a) All vehicles specially equipped or designed for military purpose including but not limited to tanks, armoured cars, tank-carrying trailers and armoured railway rolling stock.

Page Armor of all types for military purposes. Page 118 of 587.

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