Evening star. [volume] (Washington, D.C.) 1854-1972, 1948-08-19
Berlin
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that the establishment OF a separate
Western government be put off.
New Proposals Made.
However" the account went on,
when they went to negotiate with
Molotov, the Western representa-
tives changed their stands and pre-
sented new proposals, including one
for four-power control of Soviet
sponsored currency in Berlin. Molo-
tov could not agree to this, assert
ing tine Western powers had no
claim to control of Soviet zone cur
rency any more than the Soviet
Union could ask to share in the
control of the Deutsche mark in the
Western occupation zones. This
change of attitude by the United
States, British and French repre-
sentatives created difficulties in the
negotiations which hinder their
progress and continuation"
The Russians stand on their de-
mand for a single currency for
Berlin-the Russian-sponsored mark
under Russian control, the press
said. The Russians insist on uni
lateral control over the commerce
of all Berlin's industries and that
all trade between Berlin and West
ern zones must be handled through
the economic agencies of the Soviet
zone, it added. This would freeze
out the Anglo-American joint ex-
port-import agency and give the
Russians a stranglehold on Berlin
which could lead eventually to its
incorporation into the Soviet zone.
Two Currency Plans Debated.
The Communist city admin
istration announced last night that
it is debating two plans as a solu-
ton to the currency mix-up, result
ing from circulation hers OF rival
Eastern and Western marks.
/. To issue an emergency cur
rency for the city.
2. To make the Western mark ex-
elusive currency in Western Berlin
in order to overcome the difficulties
caused by the Soviet blocking OF
Eastern mark accounts in the citys
Western sectors.
In Western Berlin both the East
ern and Western German currencies
now are legal. In the Soviet sector
only the Eastern mark is valid.
Russia's blocking of these East
mark accounts has made it virtual
ly impossible for the city govern
ment and Western sector firms to
pay wages. because the West had
directed that three-fourths of all
salaries we're to be paid in Eastern
marks.
Plan Proposed by Parties.
The second plan already has been
proposed to the Western command
ers by three Communist polit-
ical parties in Berlin and the anti
Communist trade federation.
On the other side, the Soviet
sponsored Socialist Unity Party
(SED) has demanded immediate
and unconditional removal of the
Western mark, the re-establish-
ment of political, administrative and
economic unity throughout all Ber-
lin and the tying of Berlin to its
natural hinterland, the Soviet occu-
patton zone"
Last night the British military
government condemned. in what an
official spokesman described as "the
strongest language yet used toward
the Russians" a unilateral Soviet
order dismissing the director of the
Berlin central coal organization.
The British denounced the move
as "one of the long series of orders
deliberately designed to undermine
the authority of the city govern
ment for political motives"
Food Board Action ParalleIed.
The body was set up by the Allies
under a four power administration.
The Russian move appeared to par
allel their action in forcing a split
recently in the city's central food
Administration by moving their own
Communist staff into the offices
which are located in the Russian
sector of the city.
The coal director, a Herr
Mueckenberger. was charged with
inactivity ano disorganization tao
tics" by the Russians and ordered to
turn his post over to a Herr Neu-
berger within "a hours.
The British said the order was
"pernicious" and without legal basis
and added they could not recognize
this order nor any similar order
which violates the constitutional
rights of the people of Berlin"
The Soviet-licensed German news
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