862.50/9–2146: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
[Received September 21—3:47 p.m.]
2219. September 17, 1946, British and American elements outlined to Coordinating Committee, ACA, plan and texts of agreements on bi-partite zonal economic integration. Following preliminary meeting August 9 between Deputy Military Governors US and British zones, bi-partite board to implement economic fusion met September 4 and 14, 1946, and agreements signed by appropriate German authorities both zones setting up executive committees for (1) economics; (2) food and agriculture; (3) transport; and (4) a joint committee for finance. (Communications agency in process of negotiation.) Agencies decentralized to avoid appearance of establishing a western capital of Germany: Economic agency located in Minden, Food and Agriculture at Bad Kissingen, Finance at Frankfurt and Transportation at Bielefeld. Each agency made up of two parts, (1) an American-British liaison staff and (2) the German administrative staff, the latter supervised by a secretariat of three Germans from the American zone and three from the British zone. Agencies scheduled to begin functioning about October 1.
Bi-partite board adhered to following basic principles of policy:
- (a)
- Establishment nearly as practicable common standard of living, including common ration;
- (b)
- Utilization resources available both zones to common advantage. All indigenous resources essential to agreed standard of living shared on basis of need among German population of both zones, except for commodities subject to quadripartite agreement for allocations. Surplus resources, or agreed percentages of other resources, to be available for inter-zonal trade, or for export.
- (c)
- Common import policy; imports either zone limited to agreed items and quantities needed to supplement indigenous resources in providing agreed common standard of living.
- (d)
- Common export policy; exports limited to agreed items and quantities.
The first principle adopted by the board was that German authorities in two zones must be charged with practical execution of common policy of military governments subject to policy direction and supervision by Allied (British/US) staffs. German authorities were, moreover, informed that there was no intention to interfere with political structure either zone nor set up unified government.
In presenting memorandum to other members Coordinating Committee, [Page 607] British and American elements assured Committee that principles of quadripartite policy already agreed upon are being followed: Bi-partite arrangements readily expandable to include one or both other zones; and present arrangements were expedient to implement Potsdam principle of German economic unity. Progress bi-zonal arrangements will be reported to coordinating committee.
Texts of agreements and further comments being forwarded by despatch.66