740.00119 Control (Germany)/11–248
Agreement Between the Military Governors of the Western Zones of Occupation of Germany1
Agreement Relating to the Fusion of the Foreign Trade of the French Zone and of the Combined US/UK Zones of Germany
I. In accordance with the agreement reached at London between the Governments of the United States, the United Kingdom, and France, and as of 18 October 1948, the foreign trade activities of the French Zone of Germany will be merged with the foreign trade activities of the Combined US/UK Zones of Germany. The foreign trade of the French Zone as carried out by the Foreign Trade Office of the French Zone (OFICOMEX) and any other branch of the French Military Government will thereafter be carried out by the Joint Export-Import Agency (JEIA).
II. The JEIA Board will make the necessary decisions to carry out the following [:]
1. Present JEIA staff and executive offices both at Headquarters and Branch Offices will be enlarged by participation of French members.
2. French personnel will participate in all trade missions and negotiations.
3. Two French members will join JEIA Board of Directors; until the question of contributions and related issues are settled the voting will proceed as at present except that decisions may be referred to Military Governors or for consultation among governments according to the terms and practice of the Bizonal Fusion Agreement.
4. OFICOMEX will be transformed into a Branch Office of JEIA (to be known as JEIA Branch Office for French Zone) and will operate under general JEIA rules and regulations and under JEIA directions.
5. US/UK personnel will be co-opted on the staff of former OFICOMEX offices.
6. The staff of all JEIA and former OFICOMEX offices will function on an integrated basis.[Page 678]
fusion of accounts
7. Assets and liabilities (including stocks, cash, foreign exchange accounts, receivables) derived from import-export operations (including therein capital transfers, service or invisible transactions, etc.) of OFICOMEX and Office des Changes will be transferred to or assumed by JEIA.
8. All foreign exchange proceeds will be received by JEIA.
9. All imports will be paid for or authorized by JEIA.
10. Existing OFICOMEX contracts and commitments will be examined as the basis for a report on the procedure under which these will be assumed or transferred to JEIA after 18 October.
11. In carrying out the above, an effort will be made to unify handling of accounts to the greatest extent practicable, although special accounts incidental to special trade agreement programs may be maintained.
12. Import Requirements and Allocations
Import requirements will be programmed by JEIA to realize the maximum benefit for the whole Trizonal Area regarded as a single economic entity.
13. Trade Agreements
Existing trade agreements will be tabled for joint review and will be continued in effect in accordance with their terms. As rapidly as possible, separate Bizonal and French Zone agreements will be consolidated by New Trizonal agreements negotiated by JEIA.
Every effort will be made to maximize exports subject to JEIA rules and procedure and pricing standards.
15. Other Aspects
A practical programme should be elaborated to assimilate export-import procedure (including forms, rules, financial methods, instructions) in the French Zone to the system in effect in the Bizone, making allowance for procedural changes impending and confining to a minimum administrative disruption.
It is further agreed as follows:
iii. preliminary period
The policies and procedures of JEIA will be put into effect in the French Zone progressively and at as early a date as possible, and it is anticipated that this will be fully accomplished not later than 31 December 1948. It is understood that the term “preliminary period” referred to hereinafter, will be that period between the effective date of this agreement and the date on which the decisions of the JEIA Board as provided in Para II above will be put into effect.[Page 679]
As of 18 October 1948, a statement will be made of the assets and liabilities on the books of accounts of OFICOMEX and the Office des Changes as provided in Article II, Para 7, above. After said date the accounts will be administered in accordance with their present operating procedures until otherwise decided.
v. personnel of the french zone
Retroactive to 18 October 1948, funds for the payment of German personnel of OFICOMEX and Office des Changes will be provided by the German authorities and funds for the payment of French personnel of OFICOMEX and Office des Changes will be provided by appropriate budgetary provision of the French Government. Pending the availability of these funds, the present OFICOMEX payment arrangements will remain in force and a proper accounting of all such expenditures will be maintained.
a. The import requirements of the French Zone will be determined on the basis of the import plan established for the French Zone by periodic conferences between the representatives of JEIA, Bipartite Control Office, and the French Zone. The representatives of the appropriate German administrations of the three Western Zones of Germany will be consulted in the preparation of these programs. JEIA will be responsible for the imports necessary to fulfill the requirements mentioned above. These said imports will be subject to the approval of JEIA.
b. During the preliminary period, JEIA Branch Office for the French Zone will be authorized to enter into contracts for the approved imports in the name and for the account of JEIA, according to the present procedure of OFICOMEX, it being understood that American and British personnel in that Branch Office will have the right to ask that any contract be submitted to Main Office, JEIA, for approval.
All proceeds of exports (including exports of services and invisibles) from the French Zone will accrue to JEIA, subject to the reservations contained in Article VIII below. During the preliminary period, JEIA Branch Office for the French Zone will be authorized to enter into export contracts where deliveries there under do not extend beyond six months after date of contract in accordance with the existing procedure of OFICOMEX, it being understood that American and British personnel in the Branch Office will have the right to ask that any contract be submitted to Main Office, JEIA, for prior [Page 680] approval. All contracts providing for deliveries beyond six months after date of contract will be submitted for prior approval of Main Office, JEIA.
viii. commercial relations between franch and the french zone of occupation
a. On and after 18 October and until the Trade and Payments agreement between the three Western Zones and the Franc area is put into effect, the payments for deliveries from the French Zone to the Franc area, other than those mentioned in para (d) will be credited to a special account in Francs opened at the Banque de France in the name of the “JEIA Branch Office for the French Zone” and payments for deliveries from the Franc area to the French Zone will be debited to the said special account.
b. The Bank Deutscher Laender and the Banque de France will, by mutual agreement, establish all technical details relating to the functioning of the special account.
c. To the extent that the sums available in this account shall prove insufficient to pay for the imports of the French Zone from the Franc area during the same period, the French Government will advance the necessary funds to meet such payments by crediting the special account.
d. (1) A separate dollar suspense account entitled “operations entre la France et la Z.F.O.-compte d’attente”, will be opened in the books of the Banque de France. To the debit of this account will be entered; Firstly, the balance of the advance payments made prior to 18 October 1948 to the French Zone by the French Government and not covered by deliveries from the French Zone to the Franc area (excluding Saar) prior to that date. Secondly, the further advance payments mentioned in para c. To the credit of this account will be entered all payments for deliveries from the French Zone to the Franc area (excluding Saar) on or after 18 October 1948 under contracts entered into prior to that date.
(2) The repayment conditions of the advance payments of the French Government to the French Zone as defined above and the disposal of the amounts credited to the suspense account will be determined by mutual agreement between the three Military Governors of the Western Zones and the French Government at a later date.
ix. french military government and forces procurement
The French Government will undertake to replace any food procured from the German economy for the consumption of French Military and civilian personnel in Germany subsequent to the effective date of this agreement. The rate of replacement shall be determined by the US, UK and French Military Governors within thirty days [Page 681] after the signature of this agreement. The US, UK, and French Military Governors agree to establish such a replacement rate on a reasonable and not unduly prolonged basis, and every effort will be made by the French authorities to reduce the procurement as quickly as possible. A proper accounting shall be made by the French Military Government of any food received and of any replacements made.
By order of General Noiret,
Deputy to the General Commander-in-Chief,
Général d’Armée Military Governor French Zone
Lucius D. Clay
General, U.S. Army Military Governor U.S. Zone
B. H. Robertson
General Military Governor British Zone
- The source text was circulated to the Bipartite
(U.S./U.K.) Board as document Bisec/Memo (48) 54, October 19, 1948,
a copy of which was transmitted as an enclosure to despatch 1563,
November 2, from Berlin, not printed.
The signing of this agreement occurred during a meeting of the American and British Military Governors with representatives of France, Belgium, Netherlands, and Luxembourg at Berlin on October 18. General Bapst, representing General Koenig at the meeting, stated that he had been authorized to sign the agreement for France. Regarding the meeting, see telegram 2537, October 19, from Berlin, p. 458.↩