740.00119 Control (Germany)/8–2548: Telegram
The Secretary of State to the Embassy in the Soviet Union 1
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1022. For the Ambassador Eyes Only. As you are aware the following are our basic requirements for agreement:
- 1)
- Insistence on our co-equal rights to be in Berlin.
- 2)
- No abandonment of our position with respect to Western Germany.
- 3)
- Unequivocal lifting of blockade on communications, transport and commerce for goods and persons.
- 4)
- Adequate quadripartite control of issue and continued use in Berlin of the Soviet mark.2
With these principles in mind we have examined comments in urtel 17503 for text of directive and are in general agreement with your recommendations. While we should still like to see as many of our proposals inserted in directive as possible, we do not insist and can accept your recommendations subject to the following comments:
We can agree not to insist upon change in preamble.
- (A)
- There is a difference in meaning between our and Soviet proposal since theirs might be interpreted to exclude transport of persons. We feel you should insist on this point.
- (B)
- We can agree to addition of reference to German Bank of Emission provided there is also reference to the Commission’s supervisory powers. We note French are in agreement this point (Paris tel. 4398 rept to you as 4124).
Second set of lettered paragraphs.
- (A)
- Your comment acceptable provided it is understood Military Governors should have some latitude to work this out. In any event you should make strong statement for the record.
- (B)
- We still consider it is a point of prime importance that no wording be accepted which would make equal treatment dependent [Page 1084] upon a condition which could easily vitiate the whole basis of agreement. To accept without qualification the Soviet wording “on the understanding that this will not lead to disorganizing etc” might well make the stability of Soviet currency the over-riding consideration. This would transfer the horse-laugh referred to in your para (F) from front to rear. To take care of this point however we suggest that language be inserted in para (B) to the effect that “the Commission referred to under (F) should be given the responsibility to provide adequate safeguards to prevent the use in Berlin of the Soviet Zone mark from leading to disorganizing currency circulation or disrupting the stability of currency in the Soviet Zone”.
- (C)
- We note you agree. This is vital point. In the first instance Soviet wording implies that Berlin is an integral part of the Soviet zone. Further, in order to discharge our occupation responsibilities in Berlin we must have adequate voice in control of Berlin’s external trade.
- (D)
- We accept your procedure but suggest, if Molotov insists upon reference to balancing of budget, that you propose this matter be left to Commission to work out.
- (E)
- We note you concur our suggestion and hope it will be possible to secure agreement.
- (F)
- In view of amendment to (B) above original text of this para acceptable.
As to communiqué you should tell Molotov that it is acceptable in principle with British changes in (1) and (2) in paragraph on C.F.M. Since we feel it important that entire discussion should not break down on disagreement in Berlin on technical points but on basic issue in Moscow in event of disagreement, you should make it clear to Molotov that agreement on communiqué is subject to final approval by Govts following report from Military Governors. In other words communiqué is not finally agreed to by U.S. Govt until we see report from Mil Govs in Berlin. You should make it clear to Molotov that before final agreement on communiqué the 3 Western Powers intend either to include in the communiqué or in separate communication to be published a statement to the effect that the 3 Western Powers are concluding this agreement without prejudice to the co-equal rights, duties and obligations of the Four Occupying Powers in Berlin.
In view of British and French instructions on this point as we understand them we do not insist that this be communicated in writing (see Deptel 10065) to Molotov prior to agreement on directive but may be stated orally.