74. Telegram From the Embassy in Germany to the Department of State 0

1433. Reference: White/Dowling letter January 20.1 Subject: Berlin aid program. My understanding is that Department will actively seek authorization for 6.75 million dollars for Berlin for FY 61 providing 4 million dollars for hospital and contingently 2.75 million dollars for East Zone projects. In absence of a new emergency likely that funds for East Zone projects for FY 61 can be met through reprogramming of existing counterpart accounts.

However, I am concerned about the possibility no aid for Berlin will be included in FY 62 budget. I feel strongly it would be unwise abruptly to cut off aid program here after FY 61. West Berlin cannot be compared with countries enjoying full national sovereignty for purposes of Mansfield amendment. Under present arrangements we have sovereign responsibilities in West Berlin.

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Any decision to terminate program is almost bound to become known; whether officially conveyed, publicly announced or the result of a leak, repercussions would be unfortunate.

This kind of news coming on eve of summit meeting would be blown up out of all proportions in Berlin and Western Germany and indeed in East. Berliners and leading Germans, including the Chancellor, watch our every move for its bearing on our determination to stand by Berlin. Envisions [Evidence?] of diminishing interest would be interpreted as signifying U.S. decision to abandon Berlin and Berliners. It is my considered view, therefore, that budgetary planning for FY 62 at this stage should clearly be based upon decision appropriate level of Berlin aid will be maintained for FY 62 level, to be determined on basis of project or projects for West Berlin to be submitted, as well as maintenance of approximately present level of aid for East Zone projects. Extent to which reprogramming makes unnecessary use of appropriated funds as compared with authorization can be left for determination at later date.

I should like to stress in this connection minimal cost of the program in terms of our direct responsibilities in Berlin as well as massive aid which now contributed by Federal Republic which in last budget in direct budgetary contribution amounted to some 269 million dollars exclusive of some 18 million dollars for the direct maintenance and support of our forces in Berlin.

With regard to East Zone projects I have already made my position clear in recent letter to Hillenbrand.2

  1. Source: Department of State, Central Files, 762A.5–MSP/2–260. Confidential. Repeated to Berlin.
  2. This letter reported on the status of the Mutual Security Program for Berlin as summarized in this telegram and asked for Dowling’s comments on the timing and means of presentation of the cuts to the Germans. (Ibid., 762A.5–MSP/1–2060)
  3. Not found.