398.10–GDC/9–1451: Telegram
The Director of the Berlin Element of HIGOG (Jones) to the Liaison and Political Reporting Division, at Bonn1
178. For Slater. Fol is text of BK/AHC(51) 84 dated Sept 14, 1951:
“To Secretary General, Allied General Secretariat.
1. A number of articles have appeared in the [Berlin press?] and in several cases the fact has been emphasized that the latest interzonal trade discussions have been left exclusively to German reps and that [Page 1868] this might be regarded as a sign of recognition by the Allies of the growing German point of view that sovereignty in respect of external trade has been, to a very large extent, restored.
2. The conversations were renewed between Leopold (Kaumann being sick) and Orlopp on Monday afternoon. The outcome of this mtg was as follows:
3. Leopold informed Orlopp that the signatures of the interzonal trade agreement wld depend on resolving difficulties under the following heads:
- (a)
- Certificates of origin;
- (b)
- Autobahn tax;
- (c)
- Parcel post restrictions.
4. As to (a), Orlopp emphasized that this question must be discussed with the Soviet authorities. The representatives west and east (according to Leopold) agreed to create a mixed comite of representatives from the eastern transit office and the Treuhandstelle. This mixed comite wld verify doubtful cases among the Warenbegleitscheine submitted by the Senate to the transit office. If the Treuhandstelle (west) gave a verbal assurance that the goods contained in doubtful consignments did not originate illegally from the DM east area, the Warenbegleitscheine in question wld be returned, signed and stamped without a demand for the proof of origin.
There can be two very different interpretations of this proposal:
(a) French view
Mr. Leopold agrees with the proposal made by Orlopp to form a joint comite to study the matter. His interpretation of this proposal is the following:
After assurance has been given to the eastern representatives that the origin of the goods is in order, Warenbegleitscheine will be stamped automatically and without opposition from the Soviet. The French commandant feels, as does Mr. Leopold, that this system wld be satisfactory to the Allies, because it wld avoid Soviet checking in the western sectors. At the same time, it wld completely reassure the Russians about illegal trade.
(b) British/US view
(i) In the first place it is not clear why a verbal assurance given by Kaumann and his Treuhandstelle shld have any more value than one given by the Berlin Senate.
(ii) Although the idea of joint examination of doubtful cases is at fast [first?] sight attractive, and was in fact mooted by Reuter in July, it still leaves the power of disapproval in Russian hands, which is what we have been fighting against for three months. This was presumably the reason why the Allied High Commission rejected this course at that time. It cannot be too often reiterated that it is the Soviet and not the DDE authorities who stamp, sign and return all Warenbegleitscheine, and that until they renounce or delegate in practice, this right to the East Germans, any undertakings in this matter by Orlopp are of very questionable value.
[Page 1869](iii) The last official Russian opinion given in the Allied Kommandatura on this matter was clearly set down in BK/R(48)123 dated 5 April 1948 as follows:
5. The Soviet member stated that since the goods sent from any sector of Berlin into the western zone have to pass through the Soviet zone of occupation, the Soviet authorities have the right to establish a procedure for transit which they consider necessary.
(iv) In practice, if there is to be real joint examination and not merely communication to the east authorities of a unilateral examination by the western authorities, proof of origin will have to be produced whether oral or written, whenever the Soviet authorities choose to demand it. Thus, basically, joint examination will still give the Soviet authorities the right of selecting doubtful consignments—at any figure between 1 percent and 100 percent—in other words the Soviet veto.
6. The so-called ‘autobahn tax’ (which, however, applies to all roads in the eastern zone) was also discussed. Leopold reported that Grotewohl was interested and wld be discussing this subject at a DDR Cabinet mtg on Thursday the 13th.
7. The parcel post difficulties do not appear to have been discussed.
8. Finally Leopold reported that the decision of the DDR Govt must be awaited and that he wld not meet Orlopp before Friday, the 14th, at the earliest.
However, a mtg took place on Thursday, the 13th. At this interview Orlopp informed Leopold that the proposal concerning a lump payment to replace the taxes levied on western vehicles using the autobahn had not been accepted; but he proposed that the tax be levied once only for a return trip, thus reducing the tax by 50 percent. He is ready to consider any proposal which wld further reduce the tax tariff. Orlopp further expressed the hope of signing the interzonal trade agreement the same evening. He implied that when signing it he wld state that the present restrictions on Bonn traffic wld be lifted and that the position wld again become what it was before 11 May 1951.
9. The situation has most certainly not improved since the despatch of the letters to Chuikov. The latest restriction concerns the shipment of motor-vehicles and accessories which have been brought here for the motor show.2 The Senate informs us that Warenbegleitscheine for the fol items have been refused by the Soviet office on the grounds that such Warenbegleitscheine must be accompanied by evidence of origin and have stated that they wld accept the Warenbegleitscheine covering the goods on the incoming journey: 153 passenger cars, of which 105 are non-German; 99 lorries and buses of which 9 are non-German; 70 motor and autocycles of which 8 are non-German; 72 trailers of which 1 is non-German; and 200 tons of spare parts and accessories.
The Senate has been instructed not to supply proof of origin in any form for these cars and equipment.
10. It is the view of the British and US commandants that the action outlined above has been taken with object of damaging the forthcoming industrial exhibition in Berlin and that it gives further proof [Page 1870] of the Soviet intention to harm West Berlin’s economy to the maximum.
11. No Warenbegleitscheine have been returned unstamped since Sept 6 when 1,809 were returned. However, 3,123 were submitted between Sept 6 and 13 inclusive and only 1,457 returned in the same period stamped and signed. It will, therefore, be seen that the backlog has increased by 1,666 during the past eight days. In other words, less than half of those submitted have been returned approved.
12. The situation re parcel post continues to fluctuate. On the postal train from Berlin to Hannover on the night of 13/14 Sept comprising 38 trucks, 14 were returned to Berlin. In the reverse direction Hannover to Berlin, 12 trucks were returned from a total of 24. The position remains unsatisfactory, although the number of railway wagons held up in Berlin has dropped from about 80 to 25. It shld be pointed out that about 32 tons of textiles, etc., on the restricted list originally consigned by parcel post but refused have now been despatched by the air-lift. It is not felt, however, that this really represents an improvement in the situation and it may well be that the position will again deteriorate during the next few days. The industries in Berlin have been seriously affected by these postal difficulties, namely textiles and pharmaceuticals. Both these items are on the ACA restricted list and we have suggested that consignors of such goods shld despatch them under the Warenbegleitscheine system since in the event of such Warenbegleitscheine being disapproved, they will automatically be despatched by air-lift.
13. It is understood that the transport dept of the Senate has prepared a plan covering the imposition of a tax on east zone barges transitting the western sectors but that it has not yet been signed by the Regierende Buergermeister. It appears that although the Senate supported such a scheme in the first place they have been influenced by Erhard assisted by the shipping interests to take the line that Berlin’s imports for stockpiling wld suffer very severely under Russian retaliation and they are now, therefore, lukewarm about the scheme. The commandants, however, are still of the opinion that the imposition of the proposed barge tax wld cause considerably more embarrassment to the eastern zone than to western Berlin or the federal area.
14. The tonnage of goods being presented for air-lift as a result of disapproved Warenbegleitscheine is slightly increasing. Daily outgoings are 120/130 tons, and the tonnage to Tempelhof awaiting despatch has now reached the figure of 483 tons. The total weight of goods flown out since the commencement of the air-lift amounts to 4,617 metric tons. Signed Gaugain, Chairman Secretary.”