Foreign Relations of the United States, 1949, Council of Foreign Ministers; Germany and Austria, Volume III

740.00119 Control (Germany)/3–1749: Telegram

The Secretary of State to the United States Representative at the United Nations (Austin)

top secret
us urgent

Washington, March 17, 1949—1 p.m.

171. After notification to Canads of need pending currency changeover in Berlin Western sectors,¹ after concerting with Fr, UK, fol approach shld be made to SC Pres on behalf US, UK, Fr, UN Delegs if possible not earlier than Fri afternoon, Mar 18, and preferably Sat, Mar 19:

1. SC Pres will recall earlier statements Western powers must reserve to themselves measures necessary to protect their position in Berlin.

2. Change in Western sectors currency situation is urgently required because of increasingly serious economic deterioration caused by dual currency system. Western powers have exercised great patience in refraining from adoption needed steps while currency question was being studied by experts comite.

3. As matter of good faith, Western powers wish Pres to know that they plan on Mar 20 to take steps under which Western mark will become sole legal tender Western sectors. Process will be gradual and Sov mark although not legal tender will be tolerated in private trade.

Step will do no more than even up positions as between Sovs and Western powers in Berlin currency field. Western regime will be more liberal than that of Sovs, who prohibited use Western mark their sector.

4. Having thus attained basis of equality respecting Berlin currency, Western powers will consider what further measures can be usefully taken to seek a solution Berlin problem in UN.

5. Western powers request above info be treated by SC Pres as confidential. If he inquires whether he may inform his neutral colleagues, it shld be stated that we are most anxious this info be kept confidential and on this understanding will leave further action to his discretion.²

Acheson

1. Telegram 348, March 16, from New York, not printed, reported that the three Western Powers had informed the Canadian delegation of the impending introduction of the Western mark in Berlin as a move necessary to protect the Western position there. (740.00119 Control (Germany)/3–1649)
2. The British, French and United States delegates met with President Alvarez on March 18 and informed him of their plan to introduce the Western mark as the sole legal tender in the Western sectors of Berlin. (Telegram 368, March 18, from New York, not printed, 740.00119 Control (Germany)/3–1849)