Foreign Relations of the United States, 1958–1960, Berlin Crisis, 1959–1960; Germany; Austria, Volume IX

211. Memorandum From the Assistant Secretary of State for European Affairs (Kohler) to the Under Secretary of State (Dillon)⁰

Washington, September 14, 1960.

SUBJECT

• West German Acquiescence in Economic Sanctions against East Germans

After a considerable amount of initial reluctance, which we have been working for two weeks to overcome, the West Germans now appear to be ready to use interzonal trade as a weapon against the East Germans provided the NATO countries join with them, and provided the British, the French, and ourselves are ready to support Berlin in the event of reprisals.

On August 18, as a part of Berlin Contingency Planning, the US, UK, and French Embassies in Bonn asked the Foreign Office to join with them in a study of measures to counter possible harassment of German civilian traffic and communications between Berlin and the Federal Republic. The Germans agreed and made the point which they consider most important, i.e., economic retaliation to be effective must be undertaken not only by the Federal Republic but also by all other NATO countries which have substantial trade relations with East Germany.

The first meeting was held on September 1,¹ and it was decided that the first step would be to determine the vulnerability of the East German economy. The participants agreed to collect information on a series of questions concerning their country’s trade with East Germany. The Germans once again insisted that countermeasures would be significant only if all NATO countries participated after the initial quadripartite study was made. We agreed with the latter point but said none of us should disregard the psychological impact of actions which might do no immediate appreciable economic damage, but which would demonstrate the seriousness with which the East German actions are viewed and the readiness to resort to more serious measures even if they also create some problems on our side. We also agreed that we may very well want eventually to get all NATO countries involved but that the Germans, the British, the French, and we must lead the way.

In the quadripartite discussion on September 9,² the Germans said the Federal Republic was in principle reluctant to suspend trade as retaliation against travel restrictions alone but implied that they might be ready to do so provided the Western Powers decided this was the appropriate course and themselves joined in the suspension.

In the meantime Federal Republic Economics Minister Erhard has appealed to West German businessmen voluntarily to refrain from trade with East Germany.

Mayor Brandt of Berlin and Minister Erhard have indicated that the Germans will cooperate in any field leading to reasonable counter-measures after detailed consultation with the Western Powers. They believe that interruption of interzonal trade might lead to reprisals, such as cutting off supplies to Berlin, which would involve US-UK-French responsibilities toward Berlin. They indicated that if the Three Powers could accept such risks, the Germans were prepared to use interzonal trade as a weapon.

Another meeting is being held in Bonn on this subject tomorrow.³

0. Source: Department of State, Central Files, 762.00/9–1460. Secret. Drafted by Frank Cash of GPA, concurred in by Hillenbrand, and initialed by Kohler.
1. A report on this meeting was transmitted in airgram G–236 from Bonn, September 10. (Ibid., 762.0221/9–1060)
2. No record of this meeting has been found.
3. On September 20, White sent a memorandum to Dillon updating this situation since September 14 and briefly describing the quadripartite meeting on September 15 and a meeting between Erhard and the Western Ambassadors at Bonn to discuss countermeasures. (Department of State, Central Files, 762.00/9–2060)