762B.00/11–1750: Telegram

The Director of the Berlin Element, HICOG (Page) to the Office of the United States High Commissioner for Germany, at Frankfort1

confidential

794. From Morgan. Grotewohl declaration GDR government policy before “People’s Chamber” November 152 was preceded by formal presentation Cabinet which little changed from previous. Loch, Bolz, and Rau (planning commission chairman) become deputy premiers in addition keeping their ministries while Kastner eliminated.3 Ulbricht and Nuschke4 keep posts as do APL [all?] ministers except Goldenbaum,5 [who was replaced by?] Scholz, deputy chief Democratic Farmers Party. Steidle is Health Minister while New Labor Ministry headed by Roman Chwalek, high FDGB official. Selbmann remains as Minister Heavy Industry, while Wilhelm Feldmann (National Democratic Party) becomes Minister Light Industry and Gerhard Ziller (SED) Minister Machine Construction. Deputy ministers not yet announced.

Policy declaration adopts national front program (our 356, August 28; repeated Department 306), says government putting “all forces in direction of thrust which corresponds to demands of national front”, for which GDR is “strongest and most fruitful basis.” States chief task is struggle for peace: “Policy of west powers drives toward fratricidal war,” constitutes “immediate threat to peace.”

Chief political interest of statements is further specification of Praha proposals.6 Grotewohl adds “Constituent Council”7 “could take over preparation of conditions for carrying out free all-German elections for a national assembly.”

Dealing again with obviously troublesome point of parity between representative East and West Germany, he defends this condition as guarantee that neither side will out-vote other. “One can point out that the numerical representation of the population will be achieved through all-German elections which we consider necessity in Germany.”

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Can comment that foregoing still does not make clear whether elections to be held before or after inauguration “provisional government” and withdrawal allied troops. May reflect belated insertion “free election” theme into GDR proposals to maximize propaganda effectiveness Constituent Council idea West Germany, or may be deliberate deceit. Appeals repeated to West German politicians to meet with GDR. Omission all attacks on Adenauer, Schumacher or FedRep (only Kaiser sabotage mentioned), while concentrating attack on west allies, reinforces aura “sweet reasonableness” toward West Germans.

However, Grotewohl includes hint that unilateral Communist action still possible if all else fails. Since formation Constituent Council so important in fight peace Europe, “government GDR has intention undertaking steps necessary for having such conversations between representatives from East and West Germany come into being.” GDR also endorses idea of plebiscite as “especially valuable and necessary” on remilitarization and/or Constituent Council. If such held, GDR populace will also vote.

Foregoing raises question how long present phase propaganda appeal to West Germans and FedRep will continue. Declaration gives no hints, but is pervaded with mood of determination which implies patience not unlimited: e.g. states that if western remilitarization policy continues, “government GDR will do all necessary for promotion peace movement in Germany and for all-around security GDR.”

Grotewohl also includes specific threat to churches in East Germany who allegedly exercising their rights but forgetting duties. Church has duty not create artifical opposition to state. “However when group of evangelical church leaders who not only live in West Berlin but also proselytize openly from there for remilitarization our western homeland and furthermore root themselves completely one-sidedly in western opinions, when such group organizes and carries on from West Berlin its political and social disturbance work in GDR, then government will see to it that church and state life can again exist peacefully side by side. Advocating remilitarization is militaristic propaganda and (this) is crime according article 6 our constitution.”

Economic program follows well-established line. Past and future economic achievements presented to attract public within and outside GDR. Grotewohl repeats previous arguments that “difficulties in four sector city” insufficient grounds for disruption of interzonal trade negotiations, claims unfavorable trade balance not accurate indication of GDR trade potential and charges US with violation of New York and Paris agreements.8 Five-year plan aims repeated, bringing into [Page 979] sharp relief importance of heavy machine industry. This, together with repetition of claim for GDR role as trade intermediary with east and emphatic demand for interzonal trade “irrespective of all prohibitions of western occupation powers,” seems to outline desired economic relationship to West Germany.

Despite boast of grandiose economic achievements, actual living standard objectives much more moderate: merely claim living standard will “exceed that of 1936 through achievement five-year plan.” Only “gradual discontinuation of rationing” promised, which will take into account “interest of working population which desires that discontinuance of ration card system be accomplished at lowest possible price level.” Activities of smugglers in West Berlin said to require reexamination of derationing in Berlin.

Reference to multilateral trading in future through membership in CEMA indicates possible moves of economic and financial integration of CEMA countries at least to extent of creating multilateral clearing account and supporting monetary fund.

Sent Frankfort 794; repeated info Department 706. [Morgan.]

Page
  1. The source text was sent as 706 to the Department of State
  2. For the full text of Grotewohl’s declaration, see Otto Grotewohl, Im Kampf um die Einige Deutsche Demokratische Republik (Berlin, Dietz Verlag, 1954), Band ii (1950–1951), pp. 252–299.
  3. Hans Loch (NDP), Minister of Finance, Lothar Bolz (NDP), Minister for Reconstruction, and Heinrich Rau (SED) became Deputy Premiers, while Hermann Kastner (LDP) was removed from his post as Deputy Premier.
  4. Walter Ulbricht (SED) and Otto Nuschke (CDU), Deputy Premiers in the first Grotewohl Government.
  5. Ernst Goldenbaum (DBD), Minister of Agriculture and Forestry in the First Grotewohl Government was replaced by Paul Scholz (DBD).
  6. Regarding the Praha declaration, see the editorial note, p. 665.
  7. For further documentation on the all-German Constituent Council, see pp. 590 ff.
  8. For the texts of the New York agreement of May 5, 1949, which ended the Berlin blockade and the communiqué of the sixth session of the Council of Foreign Ministers, June 20, 1949, see Foreign Relations, 1949, vol. iii, editorial note, p. 750 and p. 1062, respectively.