Foreign Relations of the United States, 1948, Germany and Austria, Volume II

740.00119 Control (Germany)/9–1848

The Soviet Ministry for Foreign Affairs to the Embassies of the United States, the United Kingdom, and France ¹

[Moscow, September 18, 1948.]

Aide-Mémoire

1. The Government of the USSR has acquainted itself with the aide-mémoire dated September 14 last of the Governments of France, the United Kingdom and the US,² which gives a unilateral account of the course of discussions between the four Military Governors in Berlin and which presents incorrectly the position adopted by the Soviet Military Government during those discussions.

The Soviet Government believes that consideration of the difference referred to in the said aide-mémoire, which arose during the Berlin discussions in regard to the interpretation of the directive to the Military Governors would have been facilitated and expedited had the four Military Governors submitted to their governments a joint report with an account of the course of discussions. In that event the discussions in Moscow would not have been based on any unilateral communications but on an accurate statement of the positions adopted by all four Military Governors both on points already agreed between them and on points left outstanding. Since however, the representatives of the three governments have refused to follow that method of discussion, the Soviet Government finds it necessary to reply to the questions raised in the aide-mémoire.

The aide-mémoire of September 14 refers to the following 3 questions: (1) Restrictions on communications, transport and commerce between Berlin and the Western zones; (2) the authority and functions of the financial commission, and in particular its relation to the German Bank of Emission; (3) the control of the trade of Berlin. At the same time it is asserted that the Soviet Military Governor allegedly deviated from the understanding reached on these questions in Moscow.

The Soviet Government believes this assertion to be without foundation because during the Berlin discussions the Soviet Military Governor strictly followed the agreed directive and the clarifications which had been given by Soviet Government when it was being drawn up in Moscow. Study by the Soviet Government of all materials relating to the Berlin discussions has shown that the reason for the differences which arose during the Berlin discussions lies in the desire of the US, the UK and the French Military Governors to interpret the directive agreed upon in Moscow in a unilateral manner and Soviet Government to give it an interpretation which had not been implied when it was being drawn up and which constitutes a violation of the directive, and with this the Soviet Government is unable to agree.

2. The directive to the four Military Governors states the following in regard to the first question referred to in the aide-mémoire of September 14: “restrictions on communications, transport and commerce between Berlin and the Western zones and on the traffic of goods to and from the Soviet zone of Germany which have recently been imposed shall be lifted.”

The concrete proposals submitted by the Soviet Military Governor on this point are in full conformity with the directive and have for their purpose the lifting of all restrictions on communications, transport and commerce, which have been imposed after March 30, 1948, as was stipulated when the directive was drawn up. During consideration of this question the Soviet Military Governor pointed to the necessity of the other three Military Governors complying strictly with the regulations imposed by the Control Council’s decision of November 30, 1945 on air traffic for the needs of the occupation forces and this had never been disputed by any of the Military Governors since the adoption of these regulations three years ago. There is no foundation whatsoever for regarding this justified demand of the Soviet Military Governor as an imposition of new restrictions on air traffic, because these regulations had been imposed as far back as 1945 and not after March 30, 1948. Nevertheless, the USA has attempted to deny the necessity of observing the regulations which had been imposed by the Control Council on air traffic of the occupation forces and which remain in force to this very day.

In view of the above, the Soviet Government believes that the position of the Soviet Military Governor on this question is absolutely correct, while the position of the USA Military Governor, far from being based on the agreed directive, is in contradiction with it. An interpretation to the contrary might lead to an arbitrary denial of any decision previously agreed upon by the Control Council, and to this the Soviet Government cannot give its assent.

3. The directive to the Military Governors also contains a clear statement regarding the authority and functions of the Financial Commission and regarding the German Bank of Emission:

“The arrangements relating to the currency changeover and to the continued provision and use in Berlin of the German mark of the Soviet zone shall ensure:

(a) No discrimination or action against holders of Western marks in connection with the exchange of those Western marks “B” issued in Berlin. These shall be accepted for exchange for German marks of the Soviet zone at the rate of 1 for 1.

(b) Equal treatment as to currency and provision of fully accessible banking and credit facilities throughout all sectors of Berlin. The four Military Governors are charged with providing adequate safeguards to prevent the use in Berlin of the German marks of the Soviet zone from leading to disorganization currency circulation or disrupting the stability of currency in the Soviet zone of occupation.

(c) A satisfactory basis for trade between Berlin and third countries and the Western zones of Germany. Modifications of this agreed basis to be made only by agreement among the four Military Governors;

(d) The provision of sufficient currency for budgetary purposes and for occupation costs, reduced to the greatest extent possible, and also the balancing of the Berlin budget.

The regulation of currency circulation in Berlin is to be undertaken by the German Bank of Emission of the Soviet zone through the medium of the credit establishments operating at present in Berlin.

A financial commission of representatives of the four Military Governors shall be set up to control the practical implementation of the financial arrangements indicated above, involved in the introduction and the circulation of a single currency in Berlin.”

This directive was drawn up in full conformity with the preliminary clarifications on this matter made by Premier J. V. Stalin on August 23, and referred to in the above-mentioned aide-mémoire.

It will be seen from the above text that the authority and functions of the financial commission and of the German Bank of Emission are precisely laid down in the directive, and it was by this that the Soviet Military Governor was guided. According to that directive and to the understanding reached in Moscow by the four Powers, the financial commission should not exercise control over all operations of the Bank of Emission in regard to Berlin, but only over those operations of the Bank of Emission in Berlin which are specifically provided for in paragraphs (a),(b), (c), and (d) of the directive. The proposal to establish control of the financial commission over the whole activity of the German Bank of Emission in Berlin was not accepted during the discussion of this question in Moscow because this would have led to such interference on the part of the financial commission in matters of the regulation of currency circulation as is incompatible with the Soviet Administration’s responsibility for the regulation of currency circulation in the Soviet zone of occupation.

Accordingly, the Soviet Government cannot agree to the incorrect interpretation of the agreed directive given in the aide-mémoire of the Government of France, the UK and the USA, and believes it necessary that the directive should be strictly followed.

4. As to trade, the previously agreed directive is confined to an instruction to the Military Governors to work out a satisfactory basis for trade between Berlin and third countries and the Western zone of Germany. It will be recalled that on August 23 during the discussions in Moscow, the Soviet Government submitted a definite proposal on this subject, but the question was not considered in detail and was referred to the Military Governors for discussion.

The proposals on this subject made by the Soviet Military Governor give no reason to assert that they are a contradiction of the spirit and meaning of the agreed directive. On the contrary, the intention of those proposals is to have the directive fulfilled in accordance with the agreements reached in Moscow.

However, for the purpose of expediting the drawing up of practical arrangements in Berlin the Soviet Government proposes that the Military Governors be given more detailed instructions on this matter than those contained in the agreed directive. The Soviet Government agrees to have trade between Berlin and third countries and the Western zones of Germany placed under the control of the quadripartite financial commission, which control should provide at the same time for the maintenance of the existing procedure regarding the traffic of goods in and out of Berlin under license of the Soviet Military Administration. The Soviet Government believes that such an instruction would be of help in the drawing up of a concrete agreement on matters of trade with Berlin.

5. The Soviet Government believes that discussions between the Military Governors in Berlin can yield positive results only in the event that all the Military Governors follow strictly the directives and instructions agreed between the Governments of France, the UK, the US and the USSR.

1. The source text was transmitted to the Department in telegram 2033, September 18, from Moscow, not printed. That telegram explained that this text was an “unofficial translation” prepared by the Soviet Foreign Ministry. The original Russian text of the aide-mémoire was handed to Smith, Roberts, and Chataigneau by Molotov at their meeting on the afternoon of September 18 (see telegram 2034, September 18, from Moscow, infra). For another Soviet translation, presumably the official one, see The Soviet Union and the Berlin Question, pp. 49–53. The text printed here also appears in The Berlin Crisis, pp. 46–50 and Cmd. 7534, pp. 59–61.
2. See telegram 1101, September 12, to Moscow, p. 1152, and footnote 3 thereto.