Foreign Relations of the United States, 1952–1954, Germany and Austria, Volume VII, Part 2

762.0221/3–1953

No. 570
Memorandum of Conversation, by Daniel W. Montenegro of the Office of German Political Affairs¹

confidential

[Washington,] March 24, 1953.

Subject:

• Berlin Situation and Problems

Participants:

• Governing Mayor Ernst Reuter of Berlin,² and GER: Mr. Geoffrey Lewis; GPA: Messrs Brewster H. Morris, Coburn Kidd, Warren P. Blumberg, D. W. Montenegro; GEA: Mrs. Eleanor Lansing Dulles, Mr. George Jacobs; GER/P: Mr. Richard Straus; UNA/R: Mr. Lawrence A. Dawson; E/VFA: Mr. Arthur C. Ringland; Germans: Herr Hans Hirschfeld (accompanying Mayor Reuter) and Herr Federer (of the German Diplomatic Mission).

1. RIAS. Mayor Reuter referred to the visit to Berlin of Mr. William Heimlich (former director of RIAS, now an investigator for Senator Hickenlooper, Chairman of the Senate Foreign Affairs Sub-Committee, which is looking into the conduct of the information program.) Reuter said that he was not informed of the reasons for Mr. Heimlich’s dismissal, and that he had nothing personal against Mr. Heimlich, but made it clear that it would be undesirable to make “too many changes” in RIAS, and that “we should avoid giving the impression, particularly at this time when the East is weak, that we are divided, quarreling among ourselves. We must give the impression that there are no differences of importance among us.” He then added, “RIAS is well accepted, both in Berlin and in the Soviet Zone, as the Berlin Station; accepted as both the ‘Voice of Berlin’ and the ‘American Voice in Berlin’, because the listening public has come to recognize that there is a fusion of interests, and of viewpoint, between the Germans and the Americans in Berlin.” Therefore, “although undoubtedly RIAS could be operated as a German station by German experts, and is in fact operated mainly by Germans today under American direction, it should continue as an American station for a time.” He went on to point out that letters from Czechoslovakia indicated that RIAS has an audience in the satellite states also. He said that publicized investigations could do harm to RIAS’ influence.

2. Refugees. Mr. Dawson asked what the prospects are that West Berlin will be isolated and the flow of refugees cut off. Mayor Reuter replied that, in the long run, the Soviet Zone authorities will undoubtedly be forced to attempt to stem the tide because of the loss of manpower. On the other hand, the degree of disorganization in the East Zone, the lack of authority, of responsibility, of willingness to make decisions, already chronic before, has become acute since Stalin’s death. There is a lack also of coordination and of uniformity of action. For instance, in some areas farmers are well treated, in others badly. Conditions vary within localities, and in some cases within a single factory. It is difficult to say when they will make a determined effort to stem the flow. The pressure to do so is great, not only because of the loss of manpower but because of prestige and propaganda considerations. Yet it is unlikely that they will close the door completely; splitting the city would be still more difficult. People will continue to be able to get through in any case, and will continue to try. It must be remembered that, unlike refugees in many other parts of the world, these people are not going to another country; they are not leaving Germany, and they continue to have hope that they will be able to return to their homes.

Asked whether many of the refugees went back to the Soviet Zone of their own free will, Mayor Reuter replied that it is difficult to say. In the course of registration and screening some 10% to 15% “get lost”. It is not known whether or not a large number of these voluntarily return to the East Sector and Zone. Some travel back and forth, but generally speaking it can be said that those who have left their farms, factories, shops, offices, even where they have not done so for political reasons, have by the very fact of their flight become political refugees. Most can expect only severe punishment if they return, but this varies from place to place.

A notable aspect of the refugee situation, Mayor Reuter pointed out, was that despite the overcrowding, penury and uncertain future, there are no signs of despair or demoralization, either among the refugees or the Berliners (who seem to thrive on crises, he added with humor). Crime statistics have not been affected and continue their downward curve, noticeable since the early post-war days, and crimes of violence are in particular becoming rarer. This is due to the sound morale of the population and an improved police force.

Mayor Reuter said emphatically that the security situation had not deteriorated. (In another conversation he pointed out that there was in this situation certain “safety in numbers”, inasmuch as there is hardly a town or hamlet in the East Zone not represented by a number of refugees in West Berlin and since the people in the camps are constantly scrutinizing one another, and the grapevine is very active, it would be difficult to masquerade under false colors without being detected either in the camps themselves or in the screening process, for the screening panels are themselves composed in part of refugees from all over the Soviet Zone. Moreover, it would be pointless for a communist agent to put up with conditions in the refugee camps when he could enter either West Berlin or the Federal Republic without great difficulty).

Mrs. Dulles and Mr. Morris asked about the “unrecognized” refugees and the Agreement between Berlin and the Federal Republic regarding the acceptance of refugees by the latter. Mayor Reuter said that his negotiations with the Chancellor have paved the way to an improvement in the situation, and that in his meeting with the Chancellor in February, which had been a satisfactory one, Adenauer had agreed to all his requests except for a review of the Relief Law. The unrecognized refugees will have a better chance of going in view of the Chancellor’s promise to make changes in the categories of those accepted, but further changes will be necessary if the stream continues at a rate of 50,000 per month. It may be necessary, however, to compel some of the refugees to go to the Federal Republic, because many want to stay in Berlin.

Asked by Mrs. Dulles what the refugees need most of all, Mayor Reuter replied “Work”! and added that this made the investment program still more important. In reply to Mr. Ringland’s query as to what the Voluntary Agencies could most usefully do, he said that they could best serve by continuing to improve conditions within the camps, in particular by “helping the refugees to help themselves”, providing them with instruction, tools and materials to make their lives a little less uncomfortable, and by providing them with sympathetic attention and ministering to their social and religious needs. He expressed his admiration for the work they are already doing.

The physical conditions in the camps, Mayor Reuter said, are bad, as Dr. Conant saw during his recent visit, and threaten to get worse if the influx continues as great as at present, or greater. Shelter is being provided for all, and no refugees have been forced to stay out of doors overnight except during a very great influx one weekend at the beginning of February when the registration facilities became jammed. The Berlin authorities are reluctant, he said, to improvise or construct additional camps or shelters which are sub-standard. They believe that if more are needed they should provide for better conditions. The health situation, he said, is not bad since the people are clean. He mentioned that he had “drafted” a Herr Willbrandt [Willi Brandt] to help Senator Bach with refugee problems.

Mr. Dawson asked whether a greater influx of refugees could not be expected during the summer months, as has been the case with other refugee movements. Mayor Reuter thought this might occur, but was hard to predict.

Asked by Mrs. Dulles about refugees working “black” (illegally), Mayor Reuter said that about 30% of the unemployed, including refugees, have some means of making money. He said that through the “Notstandprogram” an effort was being made to check this development.

3. Economic Problems. Mayor Reuter repeatedly in this and other conversations referred to Berlin’s economic situation in terms of unemployment, emphasizing the political importance of improving social and economic conditions in the Berlin “show window of the West” and of thereby buttressing the morale of the Berliners. He said that unemployment had dropped to a low of 244,000 and that he hoped that it would go down by winter to 230,000 or even 220,000. If it were not for the refugees, he pointed out, the present figure might be as low as 180,000. He said that we should make a particular effort at this time, while the East is weak, to push the figure down to 200,000, and eventually 150,000 if possible.

Mrs. Dulles inquired regarding present economic aid. Mayor Reuter said that the Notstand program should be increased, adding that in his opinion we have been cutting it too early. The money is not wasted, he said. Mrs. Dulles observed that we had been informed that it would be difficult to expand the program. Mayor Reuter replied that this probably reflected the views of the larger business concerns which had received about as much as they could readily absorb and tended to disregard, perhaps deliberately, the needs of smaller and newer businesses. He stated emphatically that the problem is not to contribute to the growth of the big established firms, although what was good for them was good for Berlin, but to restore Berlin industry as a whole to as near its prewar level as feasible. He hinted that perhaps the opinions of the leaders of big industry were given too much weight in economic planning. Mayor Reuter did think, however, that the equity financing planning. Mayor Reuter did think, however, that the equity financing plan proposed by the Richardson Wood group might be on too large a scale.³

Mr. Strauss mentioned that we were in consultation with the German Diplomatic Mission concerning the possibility of stimulating the sale of Berlin exports in the United States, by means of an exhibition and in other ways. He asked whether the investment program could not perhaps be designed to encourage industries producing for export to the United States in particular. Mayor Reuter, without replying to the latter point, said that an intensive study is being made with regard to exports to the United States, and that a team is being organized to study American market conditions and possibilities. Sales abroad have gained remarkably since 1949 when Berlin products frequently cost 20% more than similar products in the Federal Republic, Mayor Reuter said. He urged, however, that some allowance be made for higher costs in Berlin, and that as a political measure Berlin be given orders by the United States forces and other official agencies “even when the price of the Berlin product is a little higher”. Berlin, he said, wants to support itself to the greatest extent possible by its industrial activity and not by charity.

4. Kommandatura–Senat Relations. Asked by Mr. Morris to speak frankly about relations between the Allies and the Berlin Government, Mayor Reuter first asked why the new Declaration could not be introduced now, instead of waiting until the Contractuals go into effect.⁴ He made it clear that he thinks that at times we give in to the French more than necessary or desirable. He said also that he felt that there are too many people dealing with too many details. He urged that the Berliners be made to feel that they are as free as conditions permit and where matters of safety (security) are not concerned. It is important, he said, to impart to the Berliners a sense of responsibility, and a sense that they are our associates, even though the Allies must remain responsible in matters of defense and relations with the Soviets generally. He referred to the matter of the seized police binoculars as a typically annoying instance of petty intervention.

Mayor Reuter went on to say that the day-to-day relationships between the Senat and Kommandatura^* could be greatly improved if some of the sensitivity on the part of one or another of the occupying powers could be dissipated a little, and if there were not such an excess of liaison and supervision (he did, however, pay tribute to “good friend Karl Mautner”).⁵ He remarked that Berlin was the only place in Germany where liaison officers sat “right in the offices” with the government officials, and that their continual presence tended to become oppressive. He could not fathom the reason for this, he said. The Kommandatura is kept well informed, he observed, and provided in fact with reams of multiple copies of every act of the city government. And he, the Mayor, despite the demands of pressing problems on his time, was always available to the liaison offices, he added. He asked that some of the red-tape be taken away. He would be particularly grateful if some of the many liaison teams could be reduced to a few main ones, and these need not sit directly under his nose.

Mr. Kidd asked whether the relations of the Kommandatura with the German police were good. Reuter replied in the affirmative, but again remarked about the multiplicity of agencies, including the Verfassungsschutz organization .…

5. Cheap Air Service to the Federal Republic. Mayor Reuter stressed the need for cheaper air facilities to the Federal Republic, asserting that the round trip fare to Hanover was too high, and could be much cheaper if the big airlines “were not so mighty”. He asked that something be done to override the interests of the big companies for the benefit of Allied and Berlin political interests. He said that this problem should be given the highest priority.

6. General Situation. In response to Mr. Jacobs’ inquiry as to the GDR political situation and leadership, or lack of it, emanating from Moscow, as well as Chuikov’s authority, Mayor Reuter said that it appeared to him that there was a great deal of confusion and of indecision; that Chuikov himself exerted little political influence, and that for the past three or four months, since the purge in Czechoslovakia in fact, there had been clear signs of disintegration. For sometime, particularly since Stalin’s death, it seemed that no clear orders or lines of policy were coming through from Moscow. Answering another question, Mayor Reuter said that he doubted that the Soviets would go far in giving real authority to the GDR government. The Soviets are afraid, he stated, that the GDR officials will come to an understanding with the West Germans if permitted to negotiate with them. On the other hand, there is lack of consistency and discernible purpose in Karlshorst’s intervention in GDR affairs. Frequently, it does not make sense. Referring to travel between the East and West Sectors of Berlin, Mayor Reuter said that some of the actions of the East Berlin officials may have been due, not so much to an intention to interfere with free circulation, as to severe difficulties with equipment and administrative inefficiency. Despite the risks and newly imposed currency difficulties imposed in East Berlin, and the measures taken by the East to discourage visits to the West Sectors, the people still travel back and forth in great numbers.

It is difficult to say just what the Soviets intend to do in, or to, Berlin in the near future. Pressures are imposed, then removed just as suddenly, without any clear pattern emerging. Perhaps the very purpose of these tactics, Mayor Reuter said, is to keep us perplexed and in a state of tension.

1. This conversation took place at the Department of State on Mar. 19.
2. Mayor Reuter was in the United States to stimulate interest in and aid for the refugees who were entering West Berlin at a rate averaging about 2,000 per day.
3. Under reference is “Proposals for Furthering the Economic Development of West Berlin,” dated Dec. 15, 1952, which was prepared by Richardson Wood and Company on contract with the Federal Republic of Germany and the Mutual Security Agency. The several hundred-page report was transmitted to Minister Bluecher on Dec. 15 and released to the public shortly thereafter.
4. For the Declaration on Berlin, see Document 538.
5. Which he said should be called Kommandatur, and not spelled in the Russian manner. [Footnote in the source text.]
5. On Mar. 13 Lyon had written Riddleberger enclosing a copy of a memorandum of conversation involving Reuter, Mautner, and himself, stating that he had informed Reuter that the British and French Commandants felt they were being snubbed by the Mayor. Lyon indicated to Reuter that this made relations in the city difficult and that the Mayor should take the British and French into his confidence as he did with him. Lyon closed by saying that the British and French had both reported that relations had warmed up, presumably as a result of his initiative. (762A.0221/3–1353)