Evening star., 1948-07-24
Reds 10 Issue
New Money in
Reich Tomorrow
Repeat Claims Thot
Berlin Is Port of
Soviet Zone Economy
BY the Associated Press

BERLIN, July 24.-Russia acted
today to issue a new permanent
money for Eastern Germany
and Berlin, and repeated her
claims that Berlin is econom-
ically part of the Soviet Zone.
Marshal VASTLY D. Sokolovsky,
Russian commander in Germany
decreed issuance of the new currency
last night. 1t will replace the tenn
porary tender issued a month ago.
Exchange will start tomorrow and
continue through Wednesday.
The Western powers issued a for
NAL statement saying they were
carefully studying the new Soviet
ordinance" and would take appro-
pirate measures
Harassing Tactics Continue.
Meanwhile, the Russians continued
their harassing tactics along the air
lanes used by the Western Allies to
supply blockaded Berlin. The Brit
1sh said Soviet planes were conduct
ing bombing practice in the corridor
between Berlin and Hamburg. The
previous day they charged the Rus
slams with three other flight VIOLA
tions.
Despite Soviet actions, the British
American air shuttle continued at
a fast pace. Yesterday American
planes carried ISL tons of fuel and
food in 256 flights. The British flew
146 sorties.
In his currency announcement,
Marshall Sokolovsky declared that
the new Russian money would be
regarded as "the only legal tender
for the Soviet occupation zone and
in greater Berlin"
This reiterated Russian claims
that Berlin is economically part of
the Soviet zone. In disputing this
claim, the Western powers have
circulated their own Western-Ger-
many currency.
Marshal Sokolovsky said the ex-
change of the new money for the
tender now in circulation would be
on a one-for- one basis.
Every One to Get 70 Marks.
The German Economic Commits
sion of the Soviet zone said each
person would be issued 10 of the new
marks in exchange for 10 old ones
as a preliminary sum. Whatever
sum an individual or a firm has
above 70 marks must be deposited
The commission said these deposits
will be frozen until August Is. Then
they will be released without any
restrictions or reduction
The Allied statement on the
money situation indicated that the
Western powers believe the Rus
slams might issue currency exchange
measures which would discriminate
against residents of Berlin's West
ern sectors.
The new Russian money will be
known as the "Deutsche Mark der
Deutschen Notenbank" German
mark of German bank issue. The
western powers currency is called
the Deutsche mark.
Sokolovsky Denies Story.
Marshal Sokolovsky said last
night through the official Soviet
news agency that political declara-
tions" attributed to him by the
United Press did not correspond
to the facts"
The Russian commanders denial
referred to a UP. story Thursday
in which the agency quoted the
marshal as saying the Russians
would lift the blockade of Berlin
if the Americans would open their
zone to Soviet traffic.
The UP. story said the informa-
ton was obtained in an exclusive
interview with Marshal Sokolovsky.
John McDermott, United Press
correspondent who wrote the story,
said last night he had no comment
to make "other than to point out
that the Soviet news agency con-
firms that Marshal Sokolovsky and
I had a discussion Thursday night
relative to the Berlin blockade. This
conversation was faithfully re-
corded"
The Soviet news agency's state
ment said Mr.. McDermott's con-
versation with Marshal Sokolovsky
took place at a reception Of the
Polish military mission.
Border Opening Reported Near.
An unconhrmed report from Hof,
Bavaria, quoted Russian officers as
saying last night that the borders
between Western and Eastern Ger
many will be reopened "in about 10
days" Hof is on the frontier be-
tween the American and Russian
zones.
London received Tass dispatch
from Berlin last night which said
Russian authorities have arrested 81
members of an underground terror
list diversionist group" who were
allegedly working in the Soviet zone
of Germany, on orders of foreign
intelligence service"
The Soviet news agency dispatch
said 16 have been sentenced to 25