862.5043/12–345
The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received December 18.]
Sir: I have the honor to transmit a memorandum of conversation93 with Gustav Gundelach, the German Minister of Labor and Social Welfare for the Soviet Zone. This conversation dealt principally with social insurance, labor courts, and works councils. Please refer to my telegram no. 1072, dated November 22, on the social revolution in the Soviet Zone, my despatch no. 1287, dated November 19, on the Berlin social insurance system, and my despatch no. 1435, dated December l,94 transmitting the text of the new Thuringian Works Councils Law.
What Herr Gundelach said confirms other evidence that, without regard for their lack of a clear popular mandate, the Soviet-appointed German governments are formalizing many of the social changes initiated by the Communist and trade union leadership, whose representative character is also open to question. This procedure contrasts with the American MG policy of discouraging revolutionary changes as long as the German people cannot express their desires freely. The technique used in the Soviet Zone is to make it appear that changes inspired from above are being carried out as a result of popular demand. Whether any or all of these reforms actually do correspond to popular desires is not known.
Since social insurance and labor courts are both being discussed now by quadripartite committees of the Manpower Directorate, it may be that uniform policies on these matters can be applied throughout Germany. The differences between the Soviet and the Western views on employer associations form one of the principal issues in the discussions about labor courts. However, works councils are not being discussed on a quadripartite basis, and so a widening gap between practices in Eastern and Western Germany in this field is to be expected, in spite of the American encouragement of shop-steward (works council) elections as a basis for trade union organization.
Respectfully yours,