Foreign Relations of the United States, 1948, Germany and Austria, Volume II

[Translation]

The Minister of Foreign Affairs of the Soviet Union (Molotov) to the United States Chargé (Kohler)¹

Moscow, October 3, 1948.

Mr. Chargé d’affaires: I have the honor to communicate to you, with a request to bring to the attention of the Government of USA, the following answer of the Soviet Government to the note of the Government of the USA of the 26th September² this year.

1. The Government of the USSR has familiarized itself with the note of the Governments of the USA, Great Britain and France of the 26th September of this year and considers it necessary to state that the responsibility for the situation which has arisen in Berlin rests entirely on the governments of the Three Powers. The very question of the situation in Berlin did not exist before the Governments of the USA, Great Britain and France proceeded to carry through a separate monetary reform in the Western zones of Germany and in the three sectors of Berlin. At the same time it is well known that the aforementioned separate monetary reform was only one of the first and particularly far reaching undertakings for carrying through the policy of dismembering Germany which placed the Western zones of Germany outside the control of the Four Powers. The policy of the dismemberment of Germany was begun by the Government of the US together with the Government of Great Britain by the separate economic unification of the American and British zones of occupation of Germany in 1946, notwithstanding the agreements of the powers on the anti-Hitlerite coalition at the Potsdam conference on the German question. This was a gross infraction also of one agreement concluded earlier between the USSR, USA, Great Britain and France on joint control by the Four Powers in relation to occupied Germany. At that time they justified this on economic grounds and argued that the unification of the two zones would lead neither to the dismemberment of Germany nor to the disruption of the policy of demilitarization and democratization of Germany agreed on between the Four Powers. Actually, the carrying through of this policy of the Three Powers in the Western section of Germany cut off from the rest of Germany contributes increasingly to the strengthening of the influence of anti-democratic and Nazi elements on whom lies the responsibility for the former aggressive policy of the German imperialists and who have not given up their revanchist attempts which are a threat not only to neighboring countries but to the security of the peoples of the whole of Europe. Recently, especially in connection with the setting up of the Marshall Plan there has been created a real danger of the restoration of the military-economic potential in the Western section of Germany, a fact which violates the Potsdam agreement of the Powers and is in opposition to the interests of all peace-loving countries.

From that time the carrying through of this policy of the US, Great Britain and France has gone so far that in the spring of this year at the London conferences of the three Western Powers with the participation of Benelux a plan was adopted for the creation of a west German state separated from the rest of Germany and placed outside the control of the Four Powers. Next in line has been placed the creation of a government for Western Germany. This position of the three Western Powers will lead to the carrying into effect of the political and economic dismemberment of Germany with all its dangerous consequences.

With the purpose of preparing for carrying out the plan of a final dismemberment of Germany in June of this year a separate monetary reform was introduced in the American, British and French zones of occupation in Germany and in the three sectors of Berlin where special money—the Western mark B was introduced. Had it not been for the introduction of a separate monetary reform which in respect of monetary financial relationships dismembered not only Germany but also Berlin, situated in the center of the Soviet zone, no question of the situation in Berlin would have existed generally speaking, as it actually did not exist before June of this year, that is, before the monetary reform carried through by the three Western Powers on a separate basis.

Such a position compelled the Soviet command to permit the issue of the German mark of the Soviet zone and along with it to carry out those transport restrictions without which, in view of the presence of different currencies in different sections of Gem any and Berlin, it was impossible to protect the interests of the German population and secure the normal economic life of the Soviet zone and especially of Berlin from disorganization. This indicates that but for the separate monetary reforms which violated the agreement of the Four Powers and created the danger of disorganization of the whole economic life in the Soviet zone and in Berlin there would have been no necessity for the above mentioned transport restrictions which represent precautionary defensive measures of the Soviet Government against the aggressive actions of the three governments.

The governments of the Three Powers continue to make declarations about their rights in relation to the administration of Berlin based on the well known agreements of the Four Powers on joint administration of Germany and Berlin. But the right to the administration by the Four Powers of Berlin which is situated in the center of the Soviet zone of occupation has meaning only in the event that Germany is recognized as a single state and Berlin as its capital. Inasmuch, however, as the three governments have separated Western Germany from Eastern Germany and are creating there a separate state, the right to the administration of Berlin on the part of these governments loses its meaning. The USA, Great Britain and France by their separate actions in the Western zones of Germany and in the three sectors of Berlin have destroyed the system of quadripartite administration both in Germany and in Berlin, and by the same act have done away with the legal basis which guaranteed them the right to a share in the administration of Berlin. However, the Soviet Government did not object to the presence in Berlin of the occupation troops of the Three Powers, a fact which Premier Stalin also confirmed at the time of his meeting with the representatives of the USA, Great Britain and France on the second of August.

Nevertheless when two months ago the Governments of the US, Great Britain and France put forward the proposal of working out jointly measures for the regulation of the situation in Berlin, the Government of the USSR agreed to this proposal. The talks which took place after this in Moscow and Berlin found incorrect expression in the note of the Government of the USA of the 26th of September, which make it necessary to dwell in greater detail on the factual side of the matter.

2. At the time of the talks which began in Moscow, Premier J. V. Stalin on the second of August made the following proposals to the representatives of the US, Great Britain and France:

(a) The Soviet Command abolishes the transport limitations introduced recently between Berlin and the Western zones;

(b) Simultaneously with this in Berlin there will be introduced as the sole currency the German mark of the Soviet zone while the Western mark B will be withdrawn from circulation in Berlin.

In addition Premier J. V. Stalin expressed his insistent desire that the Governments of the USA, Great Britain, and France defer the fulfillment of the London decisions regarding the creation of a Government of the Western part of Germany until such times as the representatives of the USSR, the USA, Great Britain and France could meet for discussion of the question of Germany as a whole. These questions were the subject of subsequent and frequent discussions in the meetings of Premier J. V. Stalin and Minister of Foreign Affairs V. M. Molotov with the representatives of the Three Powers.³

As a result of the talks which took place with the representatives of the above-mentioned Three Powers in Moscow on 30 August an agreement was reached regarding the following directive for the four military commanders of the occupation forces in Berlin:

“The Governments of France, the UK, the USA and the USSR have decided that subject to agreement being reached among the four military governors in Berlin for their practical implementation, the following steps shall be taken simultaneously:

• “(A) Restrictions on communications, transport and commerce between Berlin and the Western Zones and on goods traffic to and from the Soviet Zone of Germany which have recently been imposed shall be lifted;
• “(B) The German mark of the Soviet Zone shall be introduced as the sole currency for Berlin, and the western mark B shall be withdrawn from circulation in Berlin.

“In connection with the above, you are instructed to consult together with your colleagues so as to make, in the shortest time possible, the detailed arrangements necessary for the discussion of these decisions, and to inform your government not later than September 7 of the results of your discussions, including the exact date on which the measures under A and B above can be brought into effect. The four military governors will work out arrangements involved in the introduction of the German mark of the Soviet Zone in Berlin.

“The arrangement relating to the currency changeover and to the continued provision and use in Berlin of the German mark of the Soviet Zone shall ensure:

• “(A) No discrimination or action against holders of western marks ‘B’ in connection with the exchange of those western marks issued in Berlin. These shall be accepted for exchange for German marks of the Soviet Zone at the rate of one for one;
• “(B) Equal treatment as to currency and provision of fully accessible banking and credit facilities throughout all sectors of Berlin. The four military governors are charged with providing adequate safeguards to prevent the use in Berlin of the German mark of the Soviet Zone from leading to disorganizing the currency circulation or disrupting the stability of currency in Soviet Zone;
• “(C) A satisfactory basis for trade between Berlin and third countries and the western zones of Germany. Modification of this agreed basis to be made only by agreement among the four military governors;
• “(D) The provision of sufficient currency for budgetary purposes and for occupation costs, reduced to the greatest extent possible, and also the balancing of the Berlin budget.

“The regulation of currency circulation in Berlin is to be undertaken by the German Bank of Emission of the Soviet Zone through the medium of the credit establishments operating at present in Berlin.

“A financial commission of representatives of the four military governors shall be set up to control the practical implementation of the financial arrangements indicated above, involved in the introduction and circulation of a single currency in Berlin.”

The note of the USA, Great Britain and France of the 26th of September does not contain the text of the above-mentioned agreed directive of the four governors to the military governors in Berlin. The contents of this directive and the statements of Premier Stalin are greatly distorted in the note of the three governments.

It is sufficient to indicate that in the agreed directive of the four governments despatched to the Military Governors in Berlin, as is evident from its text, the functions of control by the quadripartite Finance Commission were clearly indicated in relation to the financial measures connected with the introduction and circulation of a single currency in Berlin, that is, the German mark of the Soviet Zone. In this connection, it is definitely stated in the directive that a quadripartite finance control must be set up for the introduction and circulation of a single currency in Berlin, but nowhere is it stated that this concerns also the issuing of the above-mentioned currency, inasmuch as this might lead to the interference of the Three Powers in the regulation of the monetary circulation in the whole Soviet Zone. It goes without saying that for the issuance of the German mark of the Soviet Zone, responsibility cannot be borne by anyone other than the Soviet command, Which is responsible for (the issuance of this currency by the German Bank of Emission of the Soviet Zone since the whole economic life of the zone depends upon the amount of money in circulation. Just as in the Western Zone the issue of money into circulation is entirely subject to the control of the occupying powers of these zones, so in the Soviet Zone the issue of money must be under the control only of the Soviet command. Meanwhile, at the talks in Berlin the military chiefs of the Western Zones demanded the setting up of control by the Three Powers over the issuance of money in the whole Soviet Zone and by this very fact sought to impose their control over the whole economic life of the Soviet Zone, a condition with which the representatives of the Soviet Union could not agree.

In spite of the assertion of the note of the three governments of September 26, the text of the agreed directive to the four Military Governors does not provide for Four-Power control over the issue of the German mark of the Soviet Zone especially for Berlin, as this was not contained in the statements of Premier Stalin during the preliminary discussion of this directive. The Soviet Government wholly rejects such incorrect assertions which have the aim of concealing the repudiation by the governments of the USA, Great Britain and France of the directive to the Military Governors, agreed between the Four Powers. The attempts to contrast the position of the Soviet Military Commander in Berlin with the position of the Soviet Government as expressed in the directive agreed between the four governments, were rejected by the Soviet Government in its note of September 18.⁴

The Soviet Government has adhered strictly to the agreed directive of August 30, providing, as simultaneous measures, for the removal of transportation restrictions between Berlin and the Western Zones and the introduction of the German mark of the Soviet Zone as the sole currency in Berlin with the establishment of Four-Power control over the financial measures in Berlin indicated in the directive. Since this directive, in respect of monetary-financial relations, establishes an identical situation and identical opportunities for all four sectors of Berlin, the Soviet Government regards this directive as a satisfactory basis for agreement between the Four Powers.

As concerns trade between Berlin and the Western Zones and third countries, the Soviet Government, as is known, has expressed agreement with the corresponding proposals of the three governments, and consequently no differences exist on this question.

There remained undecided the question of the establishment of control over the transport of commercial cargoes and passengers along the air routes between Berlin and the Western Zones. With the existence of two different currencies in the western and eastern parts of Germany, the necessity of guarantees, for the Soviet Command, with regard to the inadmissibility of the use of air transport for illegal currency and trade operations are perfectly evident. This was acknowledged unanimously during the meeting with Molotov on September 18 by the representatives of the USA, Great Britain and France. In this connection, the US representative declares: “It is completely understandable that the Soviet Government desires to have certain guarantees against the use of air transport for illegal currency transactions or black market operations. Satisfactory guarantees of this kind might be easily provided.”⁵ If the Government of the Three Powers consider this statement correct, then the Soviet Government considers it fully possible to settle the present question on a mutually acceptable basis.

Thus, with regard to this question as well, the differences can be overcome if there is a desire to achieve an agreement satisfying all Four Powers.

The negotiations on the Berlin question provided an opportunity for achieving an agreement of the Four Powers on a mutually satisfactory basis if the Governments of the USA, Great Britain and France had not put forward claims incompatible with the rights of the USSR in the Soviet Zone of occupation in Germany. The negotiations were broken off, in spite of the insignificance of the remaining differences because the Governments of the USA, Great Britain and France refused to fulfill the directive to the Military Governors, agreed between the Four Powers.

3. In the negotiations between Stalin and Molotov with the representatives of the Three Powers in Moscow in August, not only the Berlin question but also the question of Germany as a whole was discussed. In this connection, on August 27 agreement was reached with regard to the following text of the communiqué which was to be published after the conclusion of the negotiations:

“The four governments have also agreed that in addition to meetings of the four Military Governors, meetings among representatives of the four governments, in the form of the Council of Foreign Ministers or other conferences of representatives of the Four Powers, shall be held in the near future to discuss:

• “1. Any outstanding questions concerning Berlin, and
• “2. Any other outstanding problems affecting Germany as a whole.”

There remained unagreed, however, the final part of this communiqué which was to contain the reply of the Governments of the USA, Great Britain and France to the desire of the Soviet Government to defer the execution of the London decisions with regard to the establishment of the Government of the western part of Germany until the representatives of the USSR, the USA, Great Britain and France could meet to discuss the question of Germany as a whole. In this connection, the Soviet Government received an assurance from the representatives of the Three Powers that the London decisions do not exclude the possibility of agreement between the four governments concerning the establishment of a united government for all Germany.⁶

All this shows that the Governments of the Three Powers could not but recognize the existence of a close connection between the question of Berlin and the question of Germany as a whole. This means at the same time that the decision of the question of Germany, including the Berlin question, must be based on the fulfillment of decisions agreed between the Four Powers and, above all, on the fulfillment of the Potsdam Agreement and the agreement of the Four Powers concerning joint control with regard to Germany.

Since the Governments of the USA, Great Britain and France have made serious violations of the Potsdam Agreement and other agreements between the Four Powers on the German question, they bear responsibility both for the situation which has been created in Germany and in Berlin. These three governments have violated the mechanism of Four-Power control in Germany and in Berlin. They have completely withdrawn the three western zones of Germany from under Four-Power control, violating their obligations. In Berlin, which is located in the center of the Soviet Zone, the three governments are trying to establish a privileged position for themselves, demanding the preservation of rights based on those Four-Power agreements which they themselves have scorned and nullified. The false publicity which they have raised around the “blockade of Berlin” and the insistence on the immediate removal of transport restrictions can mean only a desire to retain the special currency, arbitrarily introduced by them, in Berlin and to free their hands for the uncontrolled import and export of goods, as a result of which Berlin would be converted into a center of speculation in currency and goods, which cannot but lead to the disorganization of the entire economic life in the Soviet Zone. Agreement on the removal of transport restrictions and on the simultaneous introduction of a unified currency in Berlin was not reached in view of the refusal of the three governments to come to terms on the guarantees necessary to prevent disorganization of economic life in the Soviet Zone, and now these governments want to divest themselves of responsibility for disrupting the negotiations. Moreover, under the pretext of protecting their rights in Berlin, the governments of the USA, Great Britain and France are trying, in fact, to govern, in respect of monetary-financial relations, also the Soviet Zone of occupation in Germany in order thus to deprive the USSR of its legal rights in this part of Germany and, in the final analysis, to dislodge the USSR therefrom.

4. Having broken off negotiations, the Governments of the USA, Great Britain and France have been resorting to every kind of unfounded and absurd accusation with regard to the USSR.

By their note of September 26, the Governments of the Three Powers are helping in every way to exaggerate the publicity around the question of the so-called “blockade of Berlin,” although no “blockade of Berlin” exists in reality. Statements about the threat of hunger and epidemics in Berlin are completely unfounded and are a false usage of propaganda. There are adequate supplies of food in Berlin. Measures have already been undertaken by the Soviet Government to provide the people of Berlin with all necessities. Neither is anything threatening the supply of the occupation troops.

The so-called “blockade of Berlin” refers to the transport restrictions, imposed by the Soviet Command to protect the interests of the people and to protect the economic life of the Soviet Zone from disorganization and collapse. It is impossible to dispense with these protective measures as long as the question of the introduction of a single currency in Berlin is unsettled, the necessity of which was recognized by the Governments of the Three Powers. Publicity about this question is needed by those who are trying to excite, as much as possible, a feeling of alarm, anxiety and war hysteria, and not by those who are seeking effective regulation of the situation Berlin.

The note of the Governments of the Three Powers contains unfounded statements that the Soviet authorities in Berlin allegedly have permitted attempts by a minimum of the people of Berlin forcibly to overthrow the city administration of Berlin. However, the Soviet authorities in Berlin have had firm instructions from the Soviet Government, in spite of the dissatisfaction among the people of Berlin with the situation which has been created, to guarantee peaceful conditions for the work of the local Berlin organs, which was confirmed by Molotov on August 30 during a meeting with the representatives of the Three Governments. The Soviet Command unfailingly adhered to these instructions of the Soviet Government, while disorders, bringing disquiet to Berlin life, took place in that part of Berlin which is not under the control of the Soviet Command and for which the military authorities of the three other powers are responsible.

It is clear from all this that the statement of the Governments of the USA, Great Britain and France that a situation has been created in Berlin, representing a threat to international peace and security, has no foundation whatsoever. Such statements cannot distract attention from the separate and anti-democratic policy which is being conducted in Western Germany, and which is converting it into an obedient tool of the aggressive plans of a certain group of the Great Powers. It is also impossible to deny the fact that if anyone bears responsibility for the present situation in Berlin, then it is precisely the Governments of the Three Powers, which broke off the negotiations for regulating the situation in Berlin. In this connection, the Governments of the USA, Great Britain and France have ignored their obligations to refer disputed questions on Germany and Berlin to the Council of Foreign Ministers, whose competence, as is known, includes the regulation of such matters.

5. Inasmuch as in the note of September 26 on the situation in Berlin the Governments of the USA, Great Britain and France announce that they are submitting the question of the situation in Berlin for review by the Security Council of the UN, the Government of the USSR considers it necessary to make the following declaration:

1. The question of the situation in Berlin is closely connected with the question of Germany as a whole, of the breaking up of Germany, the creation of a separate government in Western Germany and in accordance with Article 107 of the Charter of the UN is subject to the decision of the three governments which bear the responsibility for the occupation of Germany, and is not subject to submission to the SC.

2. The declaration of the Government of the US to the effect that a situation has been created which allegedly threatens international peace and security does not correspond to the actual situation, and is no more than a means of pressure and an attempt to use the organization of the UN for the achievement of its aggressive aims.

3. The Soviet Government proposes to recognize the agreed directive of August 30 to the military commanders as an agreement between the Governments of the USSR, USA, Great Britain, and France on the basis of which the situation in Berlin must be regulated.

4. The Soviet Government proposes to call a Council of Foreign Ministers in order to review the question of the situation in Berlin and also the question of Germany as a whole in accordance with the Potsdam Agreement of the Four Powers.

V. Molotov

1. The source texts for this note are telegrams 2234, October 3, and 2235–6, October 4, from Moscow, not printed (740.00119 Control (Germany)/10–348 and 448). This text should be compared with the text in The Soviet Union and the Berlin Question, pp. 73–84 for minor textual differences. A copy of the original Russian note, delivered to Embassy Moscow, was transmitted in despatch 723, October 5, from Moscow, not printed (740.00119 Control (Germany)/10–548). The Russian text was also printed in Pravda, October 4, Izvestia, October 5, and in Vneshniaia Politika Sovietskogo Soiuza, 1948 God, Chast’ II, pp. 70–82.
2. Ante, p. 1187.
3. For Smith’s record of the August 2 meeting with Stalin and Molotov, see telegram 1508, August 3, p. 999.
4. Ante, p. 1162.
5. For Smith’s report on this meeting, see telegram 2034, September 18, from Moscow, p. 1166.
6. For Smith’s record of this meeting, see telegram 1777, August 27, from Moscow, p. 1088.