740.00119 Control (Germany)/8–548: Telegram

The Ambassador in the Soviet Union (Smith) to the Secretary of State

top secret

1528. For the Secretary’s Eyes Only. At conference just concluded we agreed on following revised draft which I think meets all Department’s requirements:

Begins. As the result of discussions held in Moscow between Generalissimo Stalin and Mister Molotov and French, United Kingdom and United States representatives, the Governments of France, the United Kingdom, the United States of America and the Union of Soviet Socialist Republics have agreed as follows:

All restrictions which have been imposed on the transport of persons and goods in either direction between the three western zones of Germany and Berlin shall be immediately removed, and freedom of communications shall be maintained.

All restrictions which have been imposed on the traffic of goods to and from the Soviet zone and the three western zones of Germany [Page 1017] shall be immediately removed and freedom of communications shall be maintained.

Meetings shall be held among representatives of the four governments to consider any questions which may be outstanding as regards Berlin and any other outstanding problems affecting Germany as a whole.

Soviet zone mark will be accepted as the sole currency for Berlin and the Western mark will be withdrawn as soon as quadripartite arrangements have been agreed upon by the four military governors for the issue and control of currency in Berlin. These arrangements shall ensure: No discrimination or action against holders of either eastern or western zone currency; equal treatment as to currency and provision of fully accessible banking and credit facilities for all sectors of Berlin; adequate funds for budgetary purposes and occupation costs; and a satisfactory basis for trade between Berlin and the western zones. Implementation of these arrangements shall be carried out by the Berlin Kommandatura. Ends.

Wording of paragraph on meetings at insistence of British as is the order in which this paragraph appears. Last sentence at request of French.

Roberts received instructions last night from Bevin which clear him and we are now ready to go ahead except for fact French Ambassador is still not cleared from Paris. He expects clearance within next two or three hours in which case we will, late this afternoon, make our request for appointment and will probably get it tomorrow. Consequently, I will have time to make any changes which you may consider advisable in above draft but would prefer to make none unless necessary as it is result of considerable wrangling.

Undoubtedly Soviets will have several objections. I anticipate objection to the phrase “and free communications shall be maintained”. If they insist on removal and we are unable to maintain it, will have to fall back on their formula of recording our “insistent demand” that these communications not be interrupted. Assume they will also wish a more accurate definition of meetings both as to level and as to timing. French unwilling to hold any CFM meeting before September 10 and will so state. Bevin does not wish to be committed definitely. This point can probably be handled by informal discussion with very little change in wording of announcement.

Sent Department; Department pass Berlin 280 for Clay and Murphy Eyes Only; London 117 for Ambassador’s Eyes Only; Paris 232 for Ambassador’s Eyes Only.