Skip to content
— CH. 1 · ORIGINS AND PROPOSALS —

Morgenthau Plan

~4 min read · Ch. 1 of 6
6 sections

  • In early 1944, Henry Morgenthau Jr. held a meeting with Secretary of State Cordell Hull to discuss the future of Germany after World War II. Morgenthau had just returned from a trip to Europe where he saw Harry Dexter White present him with a memorandum from the State Department. That document suggested rebuilding Germany economically so it could pay reparations within ten years. Morgenthau feared this would lead to another war and decided to intervene personally. He told Roosevelt that he was acting as an American citizen to ensure the country's safety. The Treasury Secretary then drafted his own proposal titled Suggested Post-Surrender Program for Germany. This memorandum outlined a plan to eliminate all German industrial plants in the Ruhr region. It also proposed deporting millions of Germans to labor camps across Europe as war reparations. The original text remains preserved at the Franklin D. Roosevelt Presidential Library and Museum today.

  • The Second Quebec Conference took place between September 12 and 16, 1944 in Quebec City. Winston Churchill and Franklin D. Roosevelt met to discuss postwar arrangements including a new plan for Germany. Churchill initially opposed the idea stating England would be chained to a dead body. However Lord Cherwell persuaded him otherwise by emphasizing the need for revenge against Nazi Germany. Roosevelt insisted on signing the agreement before discussing economic aid to Britain. This prompted Churchill to exclaim what he wanted him to do while begging like Fala. The resulting memorandum called for eliminating warmaking industries in the Ruhr and Saar regions. It aimed to convert Germany into a primarily agricultural and pastoral nation. The document did not include plans to partition the country into independent states. Roosevelt later claimed he had no recollection of approving such measures after the press published them publicly.

  • Journalist Drew Pearson publicized the Morgenthau Plan on the 21st of September 1944. Joseph Goebbels immediately used this information in Nazi propaganda efforts during the final seven months of the war. He declared that Jew Morgenthau wanted to turn Germany into a giant potato patch. The Völkischer Beobachter newspaper ran headlines claiming Roosevelt and Churchill agreed to a Jewish Murder Plan. Republican presidential candidate Thomas Dewey complained that the plan terrified Germans into fanatical resistance. General George Marshall reported that German resistance had strengthened because of these revelations. An OSS operative named William Donovan sent a telegraph message from Bern on the 11th of December 1944 warning about consequences. American troops fighting near Aachen told John Boettiger that the plan was worth thirty divisions to the Germans. Despite pressure from allies President Roosevelt disowned the proposal saying it was nonsense.

  • Joint Chiefs of Staff Directive 1067 became effective on the 10th of May 1945 when approved by President Harry Truman. This document directed US forces to take no steps looking toward economic rehabilitation of Germany. It strictly forbade fraternization with Germans including attending church services or shaking hands. Violators risked being fined $65 which equaled one month's pay for an Army private. Morgenthau left a direct legacy through what were called Morgenthau boys in occupied zones. These Treasury officials ensured JCS 1067 was interpreted as strictly as possible. They remained active for almost two years following Morgenthau's resignation in mid-1945. The directive applied only to the US zone although attempts were made to get other Allies to accept it. Occupation forces prohibited production of oil rubber merchant ships and aircraft. Coal mines faced closure despite warnings from experts who predicted a coal famine would destroy law and order.

  • By March 1946 imported food supplies would last another sixty days before running out completely. The British zone reduced rations to 1,042 calories that month while France dropped to 980 calories. The US zone lowered its allowance to 1,275 calories in April then 1,180 in late May. Average daily kilocalorie intake reached only 1,080 during 1946, 1947 according to Alan S. Milward. William Clayton reported to Dean Acheson on the 27th of May 1947 that millions of people in cities were slowly starving. General Lucius D. Clay asked for flexibility in implementing JCS 1067 as early as the 7th of May 1945. Lewis Douglas denounced the directive saying economic idiots assembled it without sense. German prisoners engaged in dangerous tasks such as clearing mine fields under Allied supervision. By the 28th of February 1947 an estimated 4,160,000 former prisoners worked as forced labor outside Germany. Three million went to Russia while 750,000 went to France and 400,000 to Britain.

  • President Truman rescinded punitive JCS 1067 on national security grounds in July 1947. It was replaced by JCS 1779 which stressed that orderly prosperous Europe required contributions from a stable Germany. James F. Byrnes delivered his famous Speech of Hope in Stuttgart on the 6th of September 1946 setting tone for future US policy. The Marshall Plan extended loans instead of free aid to West Germany after initial resistance. General Clay took over two months to overcome continued opposition before approval came on the 10th of July 1947. Morgenthau followers resigned en masse when the new directive passed but accomplished one last task destroying old banking systems. Currency Reform of 1948 helped Germany make impressive recovery known later as Wirtschaftswunder. Steel production caps set at about 25% prewar levels were eventually lifted after Konrad Adenauer requested changes in 1949. Last repayment of $1.1 billion received occurred in June 1971 marking end of reparations era.

Up Next

Allied plans for German industry after World War II

Continue Browsing

Aftermath of World War II in GermanyCold WarPolitics of World War II

Common questions

What was the Morgenthau Plan proposed by Henry Morgenthau Jr. in 1944?

The Morgenthau Plan was a proposal to eliminate all German industrial plants in the Ruhr region and convert Germany into a primarily agricultural and pastoral nation. It included provisions for deporting millions of Germans to labor camps across Europe as war reparations.

When did the Second Quebec Conference approve the Morgenthau Plan agreement?

The Second Quebec Conference took place between September 12 and 16, 1944 in Quebec City where Winston Churchill and Franklin D. Roosevelt agreed to the plan. The resulting memorandum called for eliminating warmaking industries in the Ruhr and Saar regions.

How did journalist Drew Pearson publicize the Morgenthau Plan on September 21 1944?

Journalist Drew Pearson publicized the Morgenthau Plan on the 21st of September 1944 which Joseph Goebbels immediately used in Nazi propaganda efforts during the final seven months of the war. He declared that Jew Morgenthau wanted to turn Germany into a giant potato patch.

What were the consequences of Joint Chiefs of Staff Directive 1067 effective May 10 1945?

Joint Chiefs of Staff Directive 1067 became effective on the 10th of May 1945 when approved by President Harry Truman and directed US forces to take no steps looking toward economic rehabilitation of Germany. It strictly forbade fraternization with Germans including attending church services or shaking hands and violators risked being fined $65.

Why did millions of people in cities starve under the Morgenthau Plan implementation?

By March 1946 imported food supplies would last another sixty days before running out completely while average daily kilocalorie intake reached only 1,080 during 1946 and 1947 according to Alan S. Milward. William Clayton reported to Dean Acheson on the 27th of May 1947 that millions of people in cities were slowly starving.

When was punitive JCS 1067 rescinded by President Truman in July 1947?

President Truman rescinded punitive JCS 1067 on national security grounds in July 1947 and it was replaced by JCS 1779 which stressed that orderly prosperous Europe required contributions from a stable Germany. The Marshall Plan extended loans instead of free aid to West Germany after initial resistance.

See all questions about Morgenthau Plan →

All sources

66 references cited across the entry

  1. 1journalThe Marshall Plan at 60: The Generals Successful War on Poverty.Erik Reinert et al. — 2008
  2. 2webSuggested Post-Surrender Program for Germany The original memorandum from 1944, signed by Morgenthau (text and facsimile)Henry Morgenthau — Franklin D. Roosevelt Presidential Library and Museum — 1944
  3. 3webDirective to Commander-in-Chief of United States Forces of Occupation Regarding the Military Government of Germany; April 1945 (JCS 1067)
  4. 4newsThe New Deal: Two of a Kind1967-02-17
  5. 5journalMORGENTHAUS VERNICHTUNGSPLAN FÜR DAS RUHRGEBIETMATTHIAS RIEDEL — 1971
  6. 6bookMorgenthau Diary (Germany).Henry Morgenthau — U.S. Government Printing Office — 1967
  7. 7webAktuelle Nachrichten, Hintergründe und Kommentare – SZ.deSüddeutsche de GmbH, Munich Germany
  8. 8webPresidencyUCSB
  9. 9bookThe New Dealers' War: FDR And The War Within World War IIThomas Fleming — Basic Books — 2001
  10. 10journalThe Estate of Henry Morgenthau jr.John M. Blum
  11. 11webForeign Relations of the United States: Diplomatic Papers, the Conferences at Cairo and Tehran, 1943 – Office of the Historian
  12. 12magazineInvestigations: One Man's Greed23 November 1953
  13. 13citationFDR libraryMarist
  14. 14bookThe US Army in the Occupation of Germany, 1944-1946Earl F. Ziemke — Center of Military History, United States Army — 1975
  15. 15bookRecovery and Restoration: U.S. Foreign Policy and the Politics of Reconstruction of West Germany's Shipbuilding Industry, 1945–1955Henry Burke Wend — Greenwood Publishing Group — 2001
  16. 16bookAn Economic and Social History of Western Europe Since 1945Anthony Sutcliffe — Routledge — 2014
  17. 17bookThe Journal of Social, Political and Economic StudiesContemporary Economics and Business Association at George Mason University and Council for Social and Economic Studies — 2000
  18. 18bookThe Real History of the Cold War: A New Look at the PastAlan Axelrod — Sterling Publishing Company, Inc — 2009
  19. 19bookFragments of Our Time: Memoirs of a DiplomatMartin Joseph Hillenbrand — University of Georgia Press — 1998
  20. 20bookMobility, Vigilance, and Justice: The US Army Constabulary in Germany, 1946-1953Kendall D. Gott — Combat Studies Institute Press — 2005
  21. 21bookThe Illusion Of Victory: The True Costs of Modern WarIan Bickerton — Melbourne University Publishing — 2011
  22. 22bookPrevent World War III., Issues 30-52Society for the Prevention of World War III (New York, N.Y.) — Society for Prevention of World War III — 1949
  23. 23webDraft, The President's Economic Mission to Germany and Austria, Report 3, March, 1947; OF 950B: Economic Mission as to Food...
  24. 24bookThe reconstruction of Western Europe, 1945–51Alan S. Milward — Methuen — 1984
  25. 25webThe Marshall Plan Speech – The George C. Marshall Foundation
  26. 26bookOur finest hour: Will Clayton, the Marshall Plan, and the triumph of democracyGregory A Fossedal — Hoover Institution Press — 1993
  27. 27citationThe Road Ahead: Lessons in Nation Building from Japan, Germany, and Afghanistan for Postwar IraqRay Salvatore Jennings — May 2003
  28. 28magazinePas de Pagaille!28 July 1947
  29. 29newsEin junger US-Leutnant zog die FädenStefan Merx — 2008-06-14
  30. 30newsWährungsreform 1948: Vater der D-Mark war ein junger, jüdischer Amerikaner, nicht Ludwig ErhardArmin Führer — 2023-06-20
  31. 31magazineCornerstone of Steel21 January 1946
  32. 32magazineCost of Defeat8 April 1946
  33. 33citationAll Honorable MenJames Stewart Martin — 1950
  34. 34webDraft, The President's Economic Mission to Germany and Austria, Report 3, March, 1947; OF 950B: Economic Mission as to Food...
  35. 35inlineThyssenKrupp Marine Systems, Press release , 2002-04-02 125 years Blohm + Voss
  36. 36bookThe Political Economy of Transitions to PeaceGalia Press-Barnathan — University of Pittsburgh Pre — Oct 24, 2014
  37. 37citationRuhr Delegation of the United States of AmericaCouncil of Foreign Ministers American Embassy Moscow — 24 March 1947
  38. 38citationSecrets by the ThousandsC. Lester Walker — Scientists & friends — October 1946
  39. 39citationThe Russians in GermanyNorman M Naimark
  40. 40citationSecond World War science newsIan Cobain — 2007-08-29
  41. 41citationA history of West GermanyDennis L Bark et al. — 1989
  42. 42citationLetter from Konrad Adenauer to Robert Schuman (26 July 1949)Konrad Adenauer — CVCE — 7 June 2016
  43. 43citationMessage for Monsieur Schuman from Mr Bevin (30th October)Ernest Bevin — CVCE — 7 March 2015
  44. 44citationPoles Vote to Seek War Reparations11 September 2004
  45. 45citationWorking For The Enemy: Ford, General Motors, And Forced Labor In Germany Google BooksReinhold Billstein — 2004
  46. 46citationBitter legacy: Polish-American relations in the wake of World War II Google booksRichard C. Lukas — 1982
  47. 47citationReviewH-Net — September 2004
  48. 48bookAfter the War: Nation-Building from FDR to George W. BushJames Dobbins et al. — Rand Corporation — 2008
  49. 49bookGeschichte im Zeitalter der GlobalisierungGerhard Schulz — Walter de Gruyter — 2004
  50. 50bookBerlin in Modern Europe: Conference ProceedingsGeorg Kotowski — de Gruyter — 1990
  51. 51bookInteressen und Institutionen in der internationalen Politik: Grundlegung und Anwendungen des situationsstrukturellen AnsatzesMichael Zürn — Springer-Verlag — 2 July 2013
  52. 52bookMarshall Plan DaysCharles P. Kindleberger — Routledge — 2009
  53. 53bookRecovery and Restoration: U.S. Foreign Policy and the Politics of Reconstruction of West Germany's Shipbuilding Industry, 1945–1955Henry Burke Wend — Greenwood Publishing Group — 2001
  54. 54bookRecovery and Restoration: U.S. Foreign Policy and the Politics of Reconstruction of West Germany's Shipbuilding Industry, 1945–1955Henry Burke Wend — Greenwood Publishing Group — 2001
  55. 55bookArmy Diplomacy: American Military Occupation and Foreign Policy After World War IIWalter M. Hudson — University Press of Kentucky — 2015
  56. 56webMorgenthau-PlanGermany's Federal Agency for Civic Education
  57. 57web15./17. Juli 1947Germany's Federal Agency for Civic Education
  58. 58webDer Zweite Weltkrieg: Von Pearl Harbor bis HiroshimaGermany's Federal Agency for Civic Education — 11 October 2008
  59. 59encyclopediaMorgenthau-PlanBenz, Wolfgang — Walter de Gruyter — 2010
  60. 60bookIn the House of the Hangman: The Agonies of German Defeat, 1943–1949Olick, Jeffrey — University of Chicago Press — 2005
  61. 61webMorgenthau-PlanWolfgang Benz — Bundeszentrale für politische Bildung — 18 June 2006
  62. 62bookLegenden, Lügen, VorurteileWolfgang Benz — DTV — 2000
  63. 63bookZwischenzeit: Rechtsgeschichte der BesatzungsjahreRainer Gömmel et al. — BoD – Books on Demand — 2011
  64. 64webEven Worse Than We ThoughtRonald Radosh — 2002-06-30
  65. 65webTreasonable Doubt: The Harry Dexter White Spy Case
  66. 66bookCivil Affairs and Military Government, North-West Europe, 1944–1946F.S.V. Donnison — Her Majesty's Stationery Office — 1961