The carrying out of the Potsdam Agreement has, however, been obstructed by the failure of the Allied Control Council to take the necessary steps to enable the German economy to function as an economic unit.

What we want is a lasting peace. We will oppose soft measures which invite the breaking of the peace.

Offering hope to the German people, I said that freedom from militarism would give them the opportunity, if they would but seize it, "to apply their great energies and abilities to the works of peace — and in time to take an honorable place among the members of the United Nations.

I have come to Germany to learn at first hand the problems involved in the reconstruction of Germany and to discuss with our representatives the views of the United States Government as to some of the problems confronting us.

The German people were not denied, however, the possibility of improving their lot by hard work over the years. Industrial growth and progress were not denied them.

Important as economic unification is for the recovery of Germany and of Europe, the German people must recognize that the basic cause of their suffering and distress is the war which the Nazi dictatorship brought upon the world.

The working out of a balanced economy throughout Germany to provide the necessary means to pay for approved imports has not been accomplished, although that too is expressly required by the Potsdam Agreement.