MSA–FOA telegram files, lot W 130, “Bonn Tousfo”: Telegram
No. 590
The United States High Commissioner for
Germany (Conant)
to the Foreign Operations
Administration1
priority
Tousfo 323. Question of further aid to Berlin has been under serious and continued study here for several weeks. We have thoroughly reviewed political and economic considerations affecting this question. On economic grounds High Commissioner, FOA Mission Chief and Treasury representative recommend continuation investment and work relief programs with US contribution of $37 million (22 million for investments; 15 million for work relief). This recommendation made after full exploration possibilities additional Federal Republic contribution as substitute for further US assistance. Supporting data will be transmitted this weekend in separate telegram.
While aid in this magnitude in our judgment is justified on economic grounds alone, we wish to point out again compelling political reasons necessitating continuation US assistance. June 17 riots in East Germany focused attention on economic conditions in East Germany as contrasted to steady economic progress of West Berlin and West Germany. This has not gone unnoticed by Russians and all evidence now indicates that they will make substantial effort to improve standard of living in East Germany concentrating on East Berlin. The existence of a large pool of unemployed in West Berlin will be a potent Communist propaganda weapon of considerable importance, especially if any success attends Communist efforts to improve standards in East Berlin. Communists can increase number of unemployed in West Berlin by precipitately cutting access of West Berliners to their jobs in East Berlin, or gradually, as they now appear to be doing. Our figures show that from September 52 to September 53, 17,000 West Berliners working in the East have lost or left their employment.
We cannot conceive of a less propitious time than now to cut off aid in view of June 17th uprising and success of food program. Berlin’s value as a show window paid dividends much higher than we had reason to hope for. We believe we should take no step which would jeopardize its unique value in the cold war.
In addition $37 million for economic programs, we propose a special program of $15 million to cover costs of special projects such as [Page 1370] food distribution program, clothing program for aid to East Germans.…
We realize that total of $52 million is substantial amount in view US budgetary problem and desire to eliminate economic assistance. But this can hardly be called only economic assistance. A successful economic program in West Berlin which continues to undermine Russian strength in East Germany has direct important military consequences. A disaffected population in East Germany under present political conditions has, in our judgment, a military value that is worth far more than the dollar value of this aid.
- Repeated to Berlin.↩