Foreign Relations of the United States, 1950, Central and Eastern Europe; The Soviet Union, Volume IV

862A.10/2–850: Telegram

The Secretary of State to the Office of the United States High Commissioner for Germany, at Frankfort

confidential

Washington, February 8, 1950—6 p. m.

850. Bluecher¹ met with Byroade² and officers of Ger yesterday in general discussion and talk on Berlin and refugees. Later he made courtesy call on Secy.

Re Berlin, he acknowledged Fed Rep responsibility for aid to Berlin and outlined steps Fed Rep is taking. He said investment in Berlin industry of 60 million DM per year required and that it wld take 5 years to bring Berlin up to level of Fed Rep area. He made no request for outside assistance in dealing with Berlin problem except as it might have been implied by statements that it wld be difficult for Fed Rep to do more for Berlin by way of financial aid and suggestion that program wld not produce results fast enough.

In connection with refugees, Bluecher stressed Ger inability supply adequate capital to meet refugee problem. He put forward in somewhat tentative form proposal for an internatl credit of 50 million dols to back up an equivalent expansion of credit in Ger to meet refugee needs. He did not propose that foreign exchange be utilized but seemed to suggest credit be granted in order to maintain confidence in mark.

Both Byroade and Secy took occasion of visit to emphasize importance of more positive public attitude on part of Fed Rep toward problem of unification of Germany. There is need for more aggressive public position in order to keep before East Germans at all times the idea that Fed Rep hopes Eastern Ger will find its way back into fold. Attraction of West for East must be more constantly expressed by propaganda. Bluecher expressed agreement and said he would take this matter up with Adenauer when he returned.³

Acheson

1. Dr. Franz Bluecher, Vice Chancellor of the Federal Republic of Germany. Further documentation on Bluecher’s visit to the United States at the beginning of February is in CFM Files: Lot M–88: Box 183. The CFM Files are a consolidated master collection of the records of conferences of Heads of State, Council of Foreign Ministers and ancillary bodies, North Atlantic Council, other meetings of the Secretary of State with the Foreign Ministers of European powers, and materials on the Austrian and German peace settlements for the years 1943–1955 prepared by the Department of State Records Service Center.
2. Col. Henry A. Byroade, Director of the Bureau of German Affairs.
3. On February 8, Jacques J. Reinstein, Director of the Office of German Economic Affairs, had prepared a memorandum for Byroade with respect to Bluecher’s visit to Washington. Attached to the memorandum were three appendices which outlined the United States position on the economic situation in West Berlin, stated the respective attitudes of the United States and the Federal Republic toward the city, and noted the provisions of the U.S.-Federal ECA Bilateral Agreement with regard to Berlin. These documents provided the background for Byroade’s conversation with Bluecher. (862A.00/2–650).