Evening star., 1949-05-14
West and Soviet
ReachingAccord
On Reich Trade
U. S., Britain and
France OK SeIf-RuIe
For Berlin Sectors
BY the Assoeioted Press

BERLIN, May 14.-The first
four-power talks in Berlin since
last spring yielded today what
American sources described as
almost complete agreement" with
the Russians on the mechanics of
renewing East-West trade. The
Russian blockade and the Western
counterblockade halted the trade
for nearly year.
At the same time, the United
States. Britain and France ap-
proved self rule for Western Ber-
lin under limited Allied super
vision and the Russians declared
their intention of resuming speed
lily deliveries of goods owed to 18
nations for past reparations to
the Soviet Union.
Making Good Progress"
The four economic advisers of
the military governments wound
up a series of conferences late in
the day. after which the Ameri-
can representative, Lawrence F
Wilkinson, said:
I'VE are making very good prog
ress. The position is that both
sides give little and take little
and we'll probably come out with
a solution somewhere in the mid
die"
He referred to the Western
stand that the old trade agree
ments are outmoded. violate to-
days current supply and demand
market and are based on a single
Reichsmark currency for all Ger
many, whereas actually there are
two.
Mr.. Wilkinson said the meetings
would be resumed next Wednesday
at which time he said it is likely
there will be full agreement" )"
Military government authorities
praised the atmosphere of agree
able" discussion with the Russian
economic delegates. They added
that problems which appeared
most vexing after the lifting of
the blockade last Thursday now
appear solvable.
Statute Is Signed.
It was announced that the three
Western commandants had signed
q self-rule statute for Western
Berlin in the form of a state
ment of principles" The statute
grants the Germans direct ad-
ministrative control Of the West
ern portion of the city but re-
serves wide supervisory powers
to the three commandants.
Fields of activity specifically
reserved to the occupation author
tiles include:
Disarmament and remilitariza-
ton; restitution. reparations, de-
cartelization, foreign interests in
Berlin and claims against Berlin;
relations with authorities abroad;
displaced persons. protection and
security of Allied forces, control
of convicted German war Grim
inals, and supervision of police
"in view of the special circum-
stances prevailing in Berlin"
One clause retains for the oc-
cupation authorities the right tc
intervene "in an emergency ano
issue orders to insure the security
good order and financial and eco
nomic stability of the city" This
proviso is broad enough to keer
the door open for the Western
Allies to take action at any time
on any subject.
Reparations Deal Offered.
Meanwhile, Russia declared hel
intention of quickly resuming re-
ciprocal deliveries to Is Western
nations of the Inter-allied Rep
arations Agency in return for past
reparations delivered to her from
Western Germany.
Under the 1945 Potsdam agree.
ment. the Soviet Union was
granted a as per cent share oi
Western German reparations anc
was obliged to reciprocate with
goods worth so per cent of thi,
share.
American military government
officials disclosed that the Western
allies, because of Russia's declara.
tion, now are ready to resume
shipment of West German repara.
tions which had been allocated Il
the Soviets but frozen by the now.
lifted counterblockade.
American officials broke dowr
the reparations and reciprocal de-
liveries this way:
Russia has received $4,000, ,00(
reichsmarks worth of Western
reparations $3.50, 100000 at the
1948 exchange rate). Russia ha.
delivered to Western nations
100000 reichsmarks in recipro.
cal goods and still owes 44.900, ,00(
reichsmarks. She has until 1851
to complete reciprocal payments
The second installment of recip-
rocal payments. which Russia has
promised to resume. amounts tc
37,100,000 reichsmarks. 1t in.
cludes wheat. timber and Other
commodities.
Ambassador Bruce