Evening star., 1946-07-16
British and French accepted the
proposal. The Soviets rejected it.

proposal. The Soviets rejected it.
Zonal Basis Unsatisfactory.
The Soviets suggested that we
have a special session of the Council
on the German problem. I agreed
and insisted on setting date. But
from my experience with the italian
and Balkan settlements, l fear that
until the Soviets are willing to have
responsible deputies who are in
close touch with the Foreign Min
listers, sit together continuously over
period of time and find out just
what is the area of our agreement
and what is the area of our disagree
ment, the exchange of views between
the ministers on the complicated
problems of the German settlement
will not be sufficient.
1t is no secret that the four power
control of Germany on zonal basis
is not working we'll from the point
of view of any of the four powers.
Under the Potsdam agreement
Germany was to be administered as
an economic unit and central ad-
ministrative departments were to be
established for this purpose.
But in fact Germany is being
administered in four closed compart-
ments with the movement of people,
trade and ideas between the zones
more narrowly restricted than be-
tween most independent countries.
In consequence none of the zones
is self-supporting. Our zone costs
our taxpayers 5000 100000 a year.
And despite the heavy financial
burden being borne by ourselves and
other occupying powers. the coun-
try is threatened with imitation and
economic paralysis.
Must Not Continue.
This condition must not continue
At Paris we proposed that the Con-
| troll Commission be instructed to
establish the central administrative
agencies necessary to administer
Germany as an economic unit, and
to arrange for the exchange of prod
ucts between the zones and for a
balanced program of imports and
exports.
The French government which
had previously opposed the estab-
lishment of central administrative
agencies indicated their willingness
to accept our proposal when we sug-
gested that the Saar be excluded
from the jurisdiction of these
agencies The British agreed.
But the Soviets said that they
could not agree to the exclusion of
the Saar without further study, and
therefore no immediate progress was
possible.
I made clear that the United
States was unwilling to share re-
Sponsibility for the economic
paralysis and suffering we felt Ger
tain would follow continuance OF
present conditions in Germany
then announced that as a last
resort we were prepared to admin
iSter our zone in conjunction with
any one or more Of the other zones
as an economic unit indicated that
recently We had secured co-opera-
| tlOll VIII tilC coflCt ZSollC III OIlS
matter and with the British on an
other. l explained that our offer
was made not in an effort to divide
Germany, but to bring it together
Equal Terms Offered.
I stated that whatever arrange
ments were made with one govern
ment would be open on equal terms
to the governments of the other
zones at any time they were pre-
pared to participate
The British stated that they would
consider our proposal and indicated
they hoped to agree. Neither the
Soviets nor the French expressed
any view
Our military representative In
Germany will this week be in
structed to cooperate with any
one or all of the three governments
in essential administrative matters
like finance, transportation, COM
munication, trade and industry. We
will either secure economic CO.
operation between the zones or place
the responsibility for the violation
Of the Potsdam agreement.
Finally we came to a discussion OF