Evening star. [volume] (Washington, D.C.) 1854-1972, 1949-04-29
--AP Wirephoto.

ne PHILADELPHIA Bulletin.
--AP Wirephoto.
listers approved the text OF an oc-
cupation statute In q new and
simpler form which was then
transmitted to the German par
liamentary council at Bonn. Ac-
cording to latest reports, all the
controversial issues with respect
to the basic law have been settled,
all differences between the oc-
cupying powers and the Germans
and among the Germans them
selves have been resolved. and
a constitution Is expected to be
approved by the parliamentary
council by May IS.
The establishment Of q German
government does not. and cannot
at this time. mean the end of the
occupation Of Germany. If demo-
cratic self government Is to be
introduced in Germany 1t must be
given a chance to live. 1t canrot
thrive If its powers are in Ques-
ton. or II 1t Is subject to arbitrary
intervention. The occupation
statute defines the powers to be
retained by the occupying author
tiles upon the establishment of the
German federal republic and sets
forth the basic procedures for the
operation Of Allied supervision.
The reserved powers have been
retained in such fields.as disarma-
ment and demilitarization: con-
trolls in regard to the Ruhr. rep
larations. and Decentralization: for
eign affairs: displaced persons;
security of Allied forces and rep
Iresentatives: control over foreign
trade. = 4".fF"r7 &" -. r~.*'- -5
The key issue for the future will
be the manner and extent to which
the Allied authorities exercise their
powers. A practicable basis for
cooperation between the Western
Allies and the future federal west
ern government will have to be
sought. which the German people
may exercise democratic self
government under the statute.
Provision is made in the occu-
patton statute for review OF its
terms after a year in force.
In accordance with the statute
the action of the German govern
ment authorities generally does
not require affirmative Allied ap-
prevail. This means that the day
to-day operations of the German
government cannot be thwarted
by the veto of one occupying
power or by Allied disagreement.
German government authorities
will be at liberty to take admins
trative and legislation action. and
such action will be valid If not
disapproved by Allied authorities.
There is one important element
in the Washington agreements on
the economic side that I want TO
stress because 1t is . good indica-
ton Of our intent. As you know.
this Government has expended in
Germany since the cessation OF
hostilities large sums Of appropri-
ated funds in order to feed the
German people and support the
German economy. These sums
were carried in the Army budget.
Since the commencement Of eco
nomic cooperation aid, the BIZ
zonal area and the French zone
have been receiving ECA funds.
and the military governors Of the
bizonal and the French zone con-
cluded bilateral ECA agreements
with the United States Govern
ment.
Agreement on Funds.
II has now been agreed that
with the establishment Of the
German federal republic. funds
provided by the United States
Government to the German econ
omy will be made available
through the economic co-opera-
ton administration. The German
federal republic would itself exc
cute q bilateral ECA agreement
with the United States Govern
ment, and would likewise become
| a party to the convention for Eu-
ropean economic cooperation and
participate as q full member In
the Organization for European
Cooperation.
The German economy has re-
sponded theoretically to the cur
rency reform OF last June and to
the recovery assistance already
received. The German Workshop
is beginning again to produce. for
itself. for its Western European
neighbors, and for other Co
operating countries. The Germans
nov. under the foreseen arrange
ments, will have an opportunity
through their own government TO
become q responsible partner In
the European Recovery Program.
The Washington agreements en-
visage at the time OF the establish
ment OF the German Federal re-
public the termination OF military
government and Its replacement
by an Allied high commission u
civilian character. Military func-
tons win continue 10 be exerctsed
by military commanders. but each
OF the Allied establishments In
Germany. aside from occupation
forces. viii come under the direc-
ton Of high commissioner. The
functions of the Allied authorities
are TO become mainly supervisory
The three Foreign Ministers o.,
April 3 sent . joint message Of