762.0221/6–2652: Telegram

No. 550
The Director of the Berlin Element, HICOG (Lyon) to the Office of the United States High Commissioner for Germany, at Bonn 1

secret

1357. Fol is brief summary of current Berlin picture. Sitn now appears fairly well stabilized, at least for moment, following flurry of Commie moves immed after signing of contractuals and EDC pact. Commie reprisals thus far seem to have been aimed primarily at sealing off GDR population from contact with West, with harassment of West Berlin developing as secondary and consequential result.

There has as yet been no interference of any significance with normal transport routes between Berlin and West other than case of MP patrols, which are still denied access to Autobahn despite two protests by High Commissioners to Chuikov. Road, rail, water and air communications between Berlin and FedRep are functioning satisfactorily despite closure number of zonal border crossing points those remaining are adequate for traffic. 19 of 24 long distance telephone circuits between West Berlin and FedRep severed but remaining facilities plus radio telephone circuits adequate for essential traffic. Telephone connections with East Berlin and Sov Zone also cut. Telegraph connections untouched. DDR auths started filling new by-pass canal weekend of June 22 and canal now scheduled to open June 28.

West Berlin’s economic sitn is generally unimpaired. There has been no evidence of flight of capital or cancellation of industrial orders and econ activity is proceeding normally. Reuter and other local leaders have expressed apprehension that current tension may result in curtailment of orders from Western Germany to Berlin producers but local confidence has been bolstered to some extent by assurance of Berlin aid given recently by FedRep. Unemployment trend continues upward.

Certain measure of hardship (primarily psychological) has been inflicted on many West Berliners by GDR imposition of special pass requirement for entry into Sov Zone. Such passes are being issued on extremely limited scale and thousands of West Berliners are encountering great difficulties in visiting relatives in Sov Zone or proceeding to their gardens and small plots of farmland around Berlin perimeter; population is particularly aroused over latter sitn since [Page 1273] farms are reportedly being despoiled by Vopos and SED functionaries. Considerable illumination thrown on pattern of Commie tactics this regard by GDR announcement June 26 to effect that West Berliners who have “second seat of residence” in GDR or work there will lose “residence permit” unless they definitely move their seat of residence to GDR or East Berlin.

In addition, sitn of West Berlin exclaves such as Steinstuecken is not entirely normal; while exclave residents can for moment travel freely across intervening strip of Sov territory, other West Berliners are not being permitted to visit exclaves unless in possession of special GDR pass. As yet no formal protest has been made against pass requirement, in view desirability of securing tripartite agreement both here and in Bonn as to appropriate basis for protest to Sovs.

Subject to above, however, West Berlin morale remains good and there is no evidence of any trend on part of population to yield to Sov pressure or to seek any expedient smacking of appeasement. Inspirational leadership of Reuter, in particular, has been responsible for considerable backbone-stiffening over recent weeks.

While West Berlin thus appears to have emerged relatively unscathed from first phase of anticipated harassment from East, further Commie chicanery seems likely to develop. Present evidence indicates next phase may take shape of measures to split city and seal off all communications and facilities between East and West Berlin. From purely technical standpoint West Berlin officials have made all possible preparations for such development and impact of move on West Berlin’s economy wld not be unduly serious although it might result in some increase in unemployment and need for greater external financial assistance. Psychologically, however, this development wld add considerably to West Berliners’ present feeling of isolation and wld over period time probably have definite adverse effect on local morale. If splitting of city shld be combined with renewed and more severe harassment of Berlin’s communications with the West, problems of considerable gravity wld be presented.

Lyon
  1. Repeated to London for Secretary Acheson and to Washington; the source text is the copy in Department of State files.