Foreign Relations of the United States, 1951, European Security and the German Question, Volume III, Part 2

462B.62A9/7–951: Telegram

The Director of the Berlin Element of HIGOG (Page) to the Liaison and Political Reporting Division, at Bonn¹

secret

Berlin, July 9, 1951—midnight.

11. For Hays and Slater.

1. Quadripartite experts were in session seven hours today but dealt only with questions of agreeing minutes first mtg and Warenbegleitscheine problem.² After long haggling reminiscent Allied control authority sessions, minutes were left unagreed. Discussion clarified Sov position on Warenbegleitscheine and that Sovs insist on certificates origin requirement. Sov rep wld not concede that as result these talks Sovs will relent on this issue. Sov rep invited other experts to further mtg Karlshorst 17 July. Fr and US experts however made no commitment pending instructions their commandants. Brit expert agreed to meet provided Sovs clear Warenbegleitscheine. Sovs admit they now are holding awaiting submission certificates origin. Mtg today characterized by firm stand West experts on Warenbegleitscheine issue except in context Allied proposals to suppress illegal trade (verbatim transcript being airpouched³).

2. Re minutes, we proposed amendments to reflect Dept’s views that discussions concerned only Berlin trade (Deptel 137 to Frankfort rptd Berlin 8 Bonn 15 Paris 152 London 148 Moscow 20⁴) and were met by Sov amendments (a) to change “illegal trade” to “illegal exportation of merchandise” which was defined as limited to exportation from East Zone thru West Berlin to West Ger and (b) to delete any reference to legal trade (para 2 Berlin tel to Bonn 5 rptd Frankfort 20 Dept 14 Paris 6 London 3 Moscow 4⁵). Sov rep denied any knowledge of illegal trade from West to East but finally conceded to have minute record illegal “exportation” in both directions. No further progress cld be made so question of minutes indefinitely postponed.

3. Re Warenbegleitscheine, Sov rep claimed he only had info to 30 June. He acknowledged receiving 12878 from 13 to 30 June, clearing 11263 and retaining 1616 for proof origin which he considers backlog. Sov rep claimed that of 12878 Warenbegleitscheine submitted, 6518 were cleared because certificates origin accompanied them (which we will investigate in view West commandants order to Senate not to submit these certs). He contended this proved that trade of West Berlin firms engaged in legal trade is not prejudiced. Sov position is that West commandants prohibition against submitting certificates origin is interference with legal trade and violates New York–Paris agreements since Sovs were receiving certificate origin prior March 48. Sov rptd claims contained Dengin ltr 18 June that agreements prior 1948 support Sov position.⁶ At one point Sov rep made oblique reference IZT negots but matter not pursued by any del.

4. West dels rejected Sov assertion that certificates origin submitted prior 1948 and challenged Sov rep to produce agreements substantiating this requirement (which was never done). Position West commandants reiterated with insistence that Sovs not demand certificates origin and process Warenbegleitscheine without delay. Present backlog of 6603 Warenbegleitscheine and unsatisfactory rate of return was stressed (only 10 warenbegleitscheine returned today but since Sovs do not work Saturday this has no significance). Brit expert took position that unless certificate origin requirement withdrawn, he cld no longer participate in discussions. US expert informed Sov rep that to continue talks required clear-cut agreement that certificates origin restriction be lifted now, or at least, definite commitment from Sovs that this will result from negots.

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1. Repeated to Washington, Frankfurt, London, Paris and Moscow. The source text is the copy in the Department of State files.

2. The quadripartite experts had held their first meeting on July 2 at Lancaster House as scheduled. The Soviet delegation stated that it was prepared to discuss only illegal trade, and after agreeing to postpone discussion of Warenbegleitscheine until the next meeting, the following minute wae agreed ad refendum:

   “Illegal trade. Agreed that illegal trade should he reduced to minimum. Legal trade. Agreed that legal trade should be increased to maximum. Measures [to] reduce illegal trade and increase legal trade. Agreed that each del shld consider how minutes cld be best achieved.”

   Berlin reported on the meeting in telegram 14, July 5 (462A.62B31/7–551).

3. Despatch 20 from Berlin, July 10, not printed (462B.62A9/7–1051).
4. Not printed.
5. Not printed, but see footnote 2 above.
6. The letter under reference, transmitted in telegram 1513 from Berlin, not printed (460.509/6–1851), repeated the Soviet contention that Warenhegleitscheine had been receiving certificates of origin previously and expressed interest in a meeting of experts to work out a documentation control system that would exclude the export of illegally acquired materials and equipment.