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(v) rocket or missile launching devices, except such as may be in normal commercial usage for emergency signalling and rescue purposes; (vi) smoke-making equipment or apparatus or special devices for con-

cealment purposes;

(vii) high concentration hydrogen peroxide or special submarine fuels

or supplies;

(viii) depth sounding gear and radio and gyrocompass equipment which

do not conform to normal commercial marine types.

(c) Any special fittings or special structures readily adaptable for mounting, carrying or storing any of the items listed in paragraph (b) above. (d) Any of the following machinery or features of ship design, and provisions therefore, which in relation to the type of vessel in which they are installed, do not conform to normal commercial marine practice, or I which in time of peace are normally used solely in warships, and which in the opinion of the Military Security Board also constitute a security threat:-

(i) main and auxiliary machinery, notably that with characteristics such as would give abnormally long range in miles at speeds other than service speed or that which would result in speed substantially greater than that normal to the type of vessel and for the services intended;

(ii) gas jet propulsion or atomic propulsion;

(iii) auxiliary electrical generating machinery and equipment of capacity

in excess of that normal to the type of vessel;

(iv) cargo lifting gear in excess of that normal to the type of vessel;

(v) subdivision significantly different from that normal to the type of

vessel;

(vi) evaporators of capacity in excess of that normal to the type of

vessel and for the services intended;

(vii) fuel and fresh water capacity in excess of that normal to the type

of vessel and for the services intended;

(viii) hull and deck openings in excess of those normal to the type of

vessel;

(ix) unobstructed deck space in excess of that normal to the type of

vessel.

APPENDIX B

INTERGOVERNMENTAL STUDY GROUP ON GERMANY

Instructions to the High Commission on the Agreement concerning Industrial Controls

A.-Prohibited items

In determining the exceptions which may be authorised to the prohibitions set down in Article II in respect of the items listed in Annex A to the Agreement, the High Commission should be guided by the following considerations : —

1. The Foreign Ministers in Brussels approved recommendations of the Military Committee of the North Atlantic Treaty Organisation to the effect that the manufacture of certain items shall not be permitted in Germany. Unless and until the Governments concerned decide otherwise, the High Commission shall not authorise the manufacture of any of these items in or of any specialised productive, testing or training equipment associated with the development, produc- tion or use of these items. Materials, products, facilities and equipment relating to atomic energy shall continue to be subject to Allied High Commission legislation. 2. The High Commission may henceforward grant authorisations against bona fide orders from NATO. countries, from the Occupying Parcel on with the

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approval of the5three Governments, from other countries for Ahef production or manufacture of items or component parts to which in the opinion of the Military Security Board there is no security objection, and which are amongst those in the following Groups of Annex ACHROMOD

(a) Group I (d)............................ _._

(6) Unarmed and unarmoured vehicles in Group II (a) ~

(c) Group III

(d) Group V (b)10 Abit mor

(e) Group VII (a) and (b)

to the extent that these items can be produced without equipment specially designed for the manufacture of military items.

3. Unless agreement is reached on some other procedure, any bona fide orders from North Atlantic Treaty countries or other countries for items listed in Annex A, not subject to the provisions of paragraphs 1 and 2 above, shall be promptly referred to the three Governments for appropriate ad hoc decision as to whether the items in question may be produced in Germany. As soon as a German contri- bution to defence is agreed these arrangements shall be reviewed. Present practice with regard to the manufacture of prohibited items for approved domestic needs and export is not affected by these instructions.

4. White phosphorous has been retained in Group VIII of Annex A on the understanding that the construction of capacity may be licenced and production permitted for legitimate peace-time purposes under existing High Commission legislation. The High Commission should ensure that applications to erect capacity which is not unreasonably out of proportion to estimated requirements are favour- ably considered and promptly dealt with.

B. Electronic valves

The administration of Article IV of the Agreement shall be governed by the following:-

1. The list of permitted types of valves shall be revised by the High Commission as rapidly as possible and shall be kept current by addenda as required. A valve shall be considered eligible for inclusion in this list:

(a) If it has a rated anode dissipation of 50 watts or less, determined according to any recognised standard or method acceptable to the High Commis- sion; and,

(b) if at frequencies of 250 megacycles or higher, under commercial operational conditions, it does not have an output/input power ratio greater than 50 per cent. of its maximum rated output/input power ratio at ordinary frequencies.

2. Applications for licence to manufacture valves not included in either the permitted or the prohibited list shall be considered on their merits, due to considera- tion being given to the peacetime uses for the valve as presented by the application. Licences will normally be granted against such applications unless there is reason to believe that the valves are to be used to fulfil an unauthorised military requirement.

3. As the provisions of Article IV of the Agreement involve a departure from the present methods of control of electronic valves, the High Commission should direct that a review of the provisions of this Article be undertaken within three months from the date when this Agreement becomes operative in Germany.

C.-Control of capacity

In maintaining control over capacity under Article V of the Agreement the High Commission shall be guided by the following instructions

1. General instructions

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*. (a) The industrial capacities over which control is maintained in this Agree ment shall not be increased except as may be agreed among Governments or as provided below.

p(b). The three Governments desire that the application of paragraph (a) abovę should not hamper technological progress or the modernisation of production, and

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