ANNEX Prospects of trouble 1. The immediate prospects of local unrest in the British zone are fully discussed in our paper J.I.C.(CCG) 45/7ø, on which we do not elaborate here. Strikes, demonstrations, looting of foodstocks etc., must always be expected in a country whose standard of living is as low as it will be in Germany for the next five years. Conditions in Germany are in many respects likely to get worse rather than better between now and 1950. Our policy of reducing German industry will create unemployment among those workers on whose support a democratic regime must largely depend.