740.00119 Control (Germany)/9–448: Telegram
The United States Political Adviser for Germany (Murphy) to the Secretary of State
urgent
niact
2240. The meeting today lasted from 1500 hours to 1730 hours, with Robertson presiding.1 It was opened by the report from the Trade Committee which had been unable to even agree as to what it would discuss. General Robertson stated that the difference seemed to result more from the order of the discussion and suggested that the committee be instructed to proceed to discuss first the items on the Soviet agenda and then the items proposed by our experts. Koenig agreed. Sokolovsky replied that this seemed useless unless we could first agree as to who would be responsible for the supervision of Berlin trade. At this point, I stated that it seemed to me we needed something even more positive for a basis of discussion. I pointed out that [with more train paths available the western zones could now supply addition]2 coal and raw materials and semi-finished products for Berlin and were prepared to do so under suitable arrangements. I suggested that the [Page 1119] Trade Committee draw up a quarterly program, listing the quantities to be brought in; and that under the Trade Committee a German organization be established to license individual manufacturers and enterprises to obtain these materials. These materials would be paid for in Eastern marks to be deposited to the account of the respective zonal export-import agencies. The finished products, which would exceed materially the value of the imports, would be divided in three ways by the Trade Committee: first, to provide the funds to pay for the raw materials and coal brought in for manufacture, whether from the Western zones or the Soviet zone; secondly, for sale within Berlin, to meet the needs of Berlin; and, thirdly, for general export divided between the Eastern and Western zones. Any exports to the Western zones in excess of the money obtained from the sale of industrial coal and raw materials would be paid for from the money derived from the sale of food and other coal brought in from Western zones. I pointed out that this would enable maximum Berlin recovery and would be helpful to all. I stated that I was not concerned with imports brought into the Soviet sector from the Soviet zone nor exports from the Soviet sector, except those that were made from imports from the Western zones; and that the reason for my lack of interest was since there was no currency problem involved free and maximum trade would help Berlin. Marshal Sokolovsky then suggested that the controlling body might well be the Berlin magistrat. General Robertson agreed with this, provided it was under quadripartite supervision. Sokolovsky neither accepted nor rejected Robertson’s comment, except to say that licensing for the past three years had been a Soviet responsibility. He was advised that while the Soviets had claimed this responsibility, it had never been recognized by the three Western Powers. It seemed clear to me that Sokolovsky was interested in but did not fully understand my proposal and had nothing definite in his own mind. He was quite willing for subject to be referred back to the Trade Committee for further consideration in the light of our own discussions. Of course, I had advised Robertson and Koenig just prior to the meeting of what I proposed to say, but since it had not been worked out in detail in advance they really had very little time to fully grasp its implications. I was sorry that Robertson accepted the suggestion of the magistrat so readily, as I am convinced of Soviet intent in the not too distant future to replace the present magistrat by one of their own choosing; in which case we would be in the position of either accepting the Soviet magistrat or losing the advantages of our trade agreement. It was for that reason that I preferred an allied bureau with German personnel working for it.
After it was agreed to return this discussion to the Trade Committee, General Robertson again brought up the transport question and [Page 1120] asked if it were possible for the matter now to be referred back to the Transportation Committee. At this time, I repeated to my colleagues that it was the understanding of my Government that the Moscow directive dealt only with the removal of all restrictions which had been imposed since March and not with the imposition of additional restrictions. I stated that in March our military passenger trains carried Americans and non-Germans who had been approved for visits to Berlin, and that the only restriction was in an understanding which I had had with Marshal Sokolovsky that only Germans working directly for us would be carried on these trains. The removal of restrictions, therefore, for train travel meant to me the return to this condition. At the time the restrictions were imposed, there were no restrictions on air lift; and, therefore, it was not subject to discussion. However, I pointed out that I had already expressed my willingness to consider certain safeguards on the movement of currency and goods, and that I was prepared to have a German inspection service, under quadripartite supervision, inspect all German cargo and passengers to enforce such regulations with respect to movement of goods and currencies that might be agreed, that I was further prepared to provide a passenger list for each military train movement and to provide my own inspection service to see that this passenger list was checked and that any regulations which may be agreed with respect to currency and goods were enforced. I stated that I was prepared to make the same arrangements for air, that is, a German inspection of German passengers and cargo and my own inspection of other passengers and cargo arriving and leaving the American sector. I said that my representative on the Transport Committee would be prepared to discuss any questions which could be considered which would not involve restrictions other than those I had just described.
I also stated that we were prepared, except for those travelling on official duties, for the payment of railroad fares to be divided in a just ratio between the East and West zones, as might be agreed by the Reichsbahn officials. Marshal Sokolovsky then stated that it was necessary to reiterate his previous position and that was that no controls or inspections could be undertaken in the Soviet zone except by Soviet personnel. He indicated quite clearly that he still had in mind a limitation of passengers on military trains to military personnel and the inspection of these trains by Soviet personnel. He further reiterated the contention that our air lift did not accord with previous agreements and that it would be necessary to restrict air lift. Generals Koenig and Robertson were prepared to let the question go to the Transport Committee in spite of Marshal Sokolovsky’s statement. I, of course, did not wish to cause a break on this question without having discussed it with them in advance. Moreover, I still feel it too early to [Page 1121] cause a break even in this question without further exploration of details. Therefore, I stated that it seemed to me a useful purpose might be performed by the Transport Committee in clearly expressing in writing the differences in our views so that we coud examine these differences at an early meeting to determine if it were possible to go on with any hope of accomplishment; and that under these conditions I would agree to the question being referred to the committee again. This was accepted. The Transport and Trade committees were given until Monday to report back so that they would have sufficient time to prepare reports. Since it was not certain that the Finance Committee had made sufficient progress to make a report, the meeting of the four Governors for tomorrow is tentative and will be deferred until Monday unless General Koenig, who will be the chairman, advises us that the Finance Committee has progressed sufficiently to report.
After the meeting had concluded its business, Marshal Sokolovsky then said he had an announcement to make. His announcement was that Soviet air maneuvers on an extensive scale would be held beginning 6, September for several days; and that it would be necessary for these maneuvers to extend into the air corridors and over Berlin. He made the announcement to assure his colleagues that this was the normal maneuvers for this time of year for the Soviet forces and had no other significance. This was amusing since in the four summers we have been in Berlin we have never heard or seen these maneuvers previously. General Robertson thanked Marshal Sokolovsky for giving us this information and hoped it would not interfere with the air corridors. To this, Marshal Sokolovsky replied, “certainly”; although I am not sure whether this meant “certainly, yes” or “certainly, no”. I, too, thanked Marshal Sokolovsky for his information, which I said I understood and that I hoped that the German people would understand also; however, I must point out to Marshal Sokolovsky that the air corridors to Berlin and in Berlin were now crowded with non-military type planes bringing food and other essentials to Berlin, and that in the interests of the American airmen who were flying in the corridor I must remind him that maneuvers in the corridors were prohibited by our agreed safety regulations and that such maneuvers could not be conducted in the corridors with certainty; that it seemed to me there was sufficient air for any type and kind of air maneuvers without utilizing the corridors. Marshal Sokolovsky denied that such air safety regulations existed and insisted that they must use the corridors. I made no further reply and the meeting adjourned.
Subsequently, I met with Robertson and Koenig, both of whom believed Sokolovsky was slightly more yielding today and that agreement was quite possible. I must admit that I am completely unable to diagnose the events which lead to such conclusions on their part. [Page 1122] Robertson, interestingly enough, began to suggest possible compromises with respect to inspection of military passengers and cargo, to which Koenig objected strongly. Koenig pointed out that our right of entry must be protected as an essential to our right to be in Berlin. Both advised me that they were without authority to discontinue discussions on any question without specific instructions from their Governments. I reported to them the general substance of your cable to me on transport restrictions and advised them that I would take no action to create a break on this question without giving them ample time to discuss it with their Governments.
I did not advise the meeting today that my Government had authorized me to take a final position with respect to the removal of transport restrictions, as I felt it better to wait until we have heard once more from the Transport Committee and Robertson and Koenig thereafter have time to report to their Governments.
I am advised that the Finance Committee is having great difficulty in agreeing even simple details. A rather important detail is the Soviet insistence on having the right to investigate the holdings of B marks of the individual to determine if they are legitimate holdings which should be exchanged. While we are quite prepared to make such an investigation, we could not consent to the investigation being made by Soviet representatives as, of course, this could be used for punishment as well as for political purposes.
I am sorry that I am unable to give a more encouraging report and perhaps I am too pessimistic since my colleagues still feel quite hopeful. We will continue to plug along exploring each detail in the hope that we may at least narrow the issues to a relatively few, easily understandable points.
Foregoing telecon was sent by Army to War No. TT–1146 from CINCEUR personal from Clay to Dept of Army personal for Under Secretary Draper.
Sent Dept; repeated London personal for Ambassador Douglas 571, Moscow personal for Ambassador Smith 481, Paris personal for Ambassador Caffery 586.