Foreign Relations of the United States: Diplomatic Papers, 1945, European Advisory Commission, Austria, Germany, Volume III

740.00119 Control (Germany)/11–2645

Memorandum by the Director of the Civil Affairs Division of the War Department (Hilldring) to the Assistant Secretary of State for Administration (Russell)

Washington, November 26, 1945.

In accordance with our recent conversations concerning an agency to direct the administration of government of occupied territories when military government ceases, the recommendations which follow are furnished. Discussion of the reasons for certain of the recommendations is contained in Annex D.⁶⁶

Recommendations:

1. That a new agency to be known as the Occupied Areas Authority (or other designation) be instituted to be responsible for the administration of occupied territories under the policy guidance of the State-War-Navy Coordinating Committee. (Annexes A and B⁶⁷).

2. That the Director-General of the new agency be appointed by the President and that he have the position and authority of an Assistant Secretary of State.

3. That the selection, if not the appointment, of the Director-General be made as soon as possible.

4. That the War Department furnish the funds, either directly or by transfer, for the operation of the Occupied Areas Authority during fiscal year 1946.

5. That the Occupied Areas Authority prepare its own budget estimates for fiscal year 1947 and thereafter, and that its budget be included in that of the State Department.

6. That the State Department assume responsibility for administrative necessities of the Occupied Areas Authority, such as provision of office space, furniture and supplies, payroll and other services.

7. That War Department logistical and communications facilities continue to be available for use by the Occupied Areas Authority in territories under its control.

8. That Civil Affairs Division organize within the War Department the nucleus of an Occupied Areas Authority (Annex C⁶⁸); that this nucleus be adapted initially to the processing of German occupational problems and capable of expansion as responsibility for government of other areas is assumed; and that this nucleus be transferred to the Occupied Areas Authority at the time of transfer of responsibility for the government of Germany.

9. That the agency now headed by Mr. Darnell for the recruiting of personnel for foreign service be transferred to the Occupied Areas Authority on the date upon which the latter assumes responsibility for the government of Germany, but that it continue within its new framework its recruiting program for service in other areas.⁶⁹

J. H. Hilldring

66. Not printed.
67. Annexes not attached to file copy of document.
68. Annex not attached to file copy of document.
69. Mr. Russell replied to this memorandum in a letter of December 5. He noted his agreement to the outlines of General Hilldring’s plan but in an enclosure submitted certain modifications for the General’s consideration. While agreeing that an independent organization under the policy direction of SWNCC should be established, and that the War Department should provide it with the necessary supplies and facilities, he felt that the War Department must continue its civil affairs functions until Military Government was terminated. The War Department should assume responsibility, including the provision of funds, for organizing and developing the new organization in the interim period. “In short, the War Department now has the principal responsibilities and competence in the military government field; it must retain this position until it has developed and trained a satisfactory new administrative organization.” After the new office had been established, Mr. Russell thought it should become, “the responsibility of the State Department to furnish this Office, and keep current, clear statements of its policies with regard to each of the occupied areas.” (740.00119 Control (Germany)/12–545)