Evening star., 1948-06-23
SovietCoIIs Satellites
ToPor|ey;;AIIies Defy
Reds on Berlin Money
New Western Mark
Will Be Issued in
; Sectors of City
BY the Assoeiotsd Press

BERLIN, June 23.-The three
Western Allies today rejected a
Soviet order for issuance of a
controlled currency for
all Berlin and announced that
their own new Deutschemark
would be used in the city's west
ern sectors.
The Americans, British and French
said they we're making Berlin two
currency city rather than submit to
an arbitrary violation of four power
agreements.
Tension scoard again In this focal
point of the East-West cold war.
Crowds Swarm at City Hall.
Crowds of political demonstrators
swarmed about Berlin's City Hall
and prevented legislators from en-
tering the building to conduct an
emergency debate on the currency
reform.
The American-controlled German
radio said the demonstration was
staged by adherents of the Socialist
Unity Party, which is Communist
led and Soviet dominated.
The Western Allies moved swiftly
after the overnight announcement
OF Russian currency reform for the
Soviet zone and Berlin.
They announced rejection Of the
Soviet order, closed all banks and
stores except for food shops and
drug stores, and ordered morator-
ium on debts. They laid plans for
early issuance of their own currency,
Germans Await Soviet Move.
The confused German population
awaited the next move from the
Russians.
The Western Allies said the Rus.
.ians ignored the four-power Kom-
mandatura and the special status OF
Berlin in announcing their currency
reform for the entire city.
For months the Soviet propaganda
line has been that Berlin is part of
the Soviet zone and the Western
Allies should get out.
The Soviet exchange of currency
is scheduled to start tomorrow and
last four days. Deutschemarks, the
new currency Of Western Germany.
are already on hand in Berlin for
distribution in the western sectors.
Russians Were Warned.
Unless some last minute four
power agreement is reached, this
city of more than 5000 900 Germans
will be split down the middle eco
nomically by the end of the week.
The move of the Western Allies
was not unexpected by the Russians.
The Russians were informed at q
conference yesterday that such &C
ton would follow any one-sided
Soviet currency move,
Soviet authorities have already
halted incoming highway traffic
from Western Germany, sealed of
their zonal frontiers and reduced
substantially shipments of food and
coal from Western Germany.
Military freight for the American
community in Berlin has been halt
ed completely, and an air lift OF
10 planes daily is supplying the
United States Army and American
civilians in Berlin.
Demonstrators Leave.
The demonstrators finally quit
the assembly hall at the request
of Roman Chwalek. leader of the
Communist wing of Berlin's trade
unions. They sang the Interna-
tionale as they left.
A reporter at the scene estimated
between 300 and 500 demonstrators
surged into the city hall, which Is
in the Soviet sector. Another 1000
to 5000 outside were addressed by
speakers who accused the Western
powers of splitting Germany"
The demonstration caused post.
ponement of the debate Some So
cialist assemblymen charged the
Communist had staged the demon
stration because they feared Assem-
bly, Endorsement of the western
powers action. Socialists dominate
the Assembly.
Red Money Not Outlawed.
American and British authorities
indicated they have no intention Of
outlawing the Russian-sponsored
currency in the western sectors OF
Berlin. The Russians, on the other
hand, banned the Deutschemark and
CSee GERMANY, Page A-3D