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

862A.10/4–2750: Telegram

The United States High Commissioner for Germany (McCloy) to the Office of the United States High Commissioner, at Frankfort¹

confidential

Bonn, April 27, 1950—7 p. m.

215. Oberbuergermeister Reuter informed liaison staff today that Adenauer had agreed to grant additional 30 million DM to Berlin for April, making total of 60 million DM, and a further 60 million for May.

Adenauer agreed further to a conference of Berlin, Bonn and American officials sometime in May for definitive long range settlement Berlin financial problem. Adenauer according to Reuter, said that while US officials were apparently adequately impressed with Berlin’s need for financial assistance, they were not equally well-informed of Bonn’s lack of funds. We got the impression that Adenauer was soliciting Reuter’s participation in a united Bonn-Berlin front to elicit more American assistance.

Reuter stated that for the first time he felt Adenauer was definitely aware of Berlin’s plight. He attributed this to the Chancellor’s visit last week.² While Reuter was not actually complimentary to Adenauer, his remarks were definitely more restrained on the subject of the [Chancellor?] and indicated a real improvement in their relations.

Reuter stated that Schaeffer was slapped down several times by Adenauer in the course of their conference yesterday. Schaeffer, Reuter said, had directly accused Reuter of sabotaging the income tax law in conversations with Buttenwieser.³ Reuter said he had not countered the charge beyond denying it but had agreed with Adenauer to temper his comments on the Bonn Government in conversations with Allied officials. In return Adenauer had promised him to keep Reuter better informed on negotiations in Bonn with the Allies. Reuter indicated jokingly that he was not holding his breath until Adenauer gave him his first report on HICOM negotiations.

Sent Frankfort 215, repeated Department 190, Berlin 91.

McCloy

1. The source text was sent as 190 to the Department of State.
2. In telegram 588, April 20, from Berlin, not printed, Taylor had reported that after three days of conversations in Berlin between the Chancellor and the Mayor, the latter had agreed to go to Bonn to discuss details of the Berlin budget. Reuter’s reaction to the conversation was one of “guarded optimism apparently feeling Chancellor had been genuinely impressed with seriousness of Berlin’s problem and sincerity of Berlin efforts to reduce expenditures to minimum.” (862A.10/4–2050)
3. Benjamin J. Buttenwieser, Assistant U.S. High Commissioner for Germany.