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(CFN No. 3 Revised)
6
such unity to the extent that it would be enabled to extend its political
influence to Western Germany and to have access to the products or Western
Gorman industry. It would presumably oppose the unification of Geruany
under conditions which would require the Allies to abancion all controls
except certain clearly defined rights of joint intervention and, within
these limits, to leave properly elected German authorities free to exer-
cise their powers throughout Germany. Experience both in Austria and
in Germany indicates that Soviet authorities will insist in practice on
the right to veto any action by German authorities which they b:lieve
runs counter to their interests.
S.
a
(3) The Issues
Against the background given above, the economic issues
which are likely to come up in the Council of Foreign Ministers must be
considered. The most important of these issues are the following:
(a) Treatnent of German> as an Economic Unit*
In the past, the United States has tended to exaggorate the
economic importance of the failure to treat Germany as a unit in accordance
with the stipulations of the Berlin Protocol. The absence of any signi-
ficant economic revival in Western Germany is due, not so much to the
division of Germany into zones, but more to the inadequate supplies of
food, raw materials and coal, which the unification of Germany would do
little to improve in the near future. In the future, we would do well to
regard the unification of Germany primarily as an important political
objective and to consider economic unification as an adjunct to, or con-
comittant of, political unification. Political and economic unification
need
See separate memorandum on Economic Unity (Annex 1)
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"ocrText": "(CFN No. 3 Revised)\n6\nsuch unity to the extent that it would be enabled to extend its political\ninfluence to Western Germany and to have access to the products or Western\nGorman industry. It would presumably oppose the unification of Geruany\nunder conditions which would require the Allies to abancion all controls\nexcept certain clearly defined rights of joint intervention and, within\nthese limits, to leave properly elected German authorities free to exer-\ncise their powers throughout Germany. Experience both in Austria and\nin Germany indicates that Soviet authorities will insist in practice on\nthe right to veto any action by German authorities which they b:lieve\nruns counter to their interests.\nS.\na\n(3) The Issues\nAgainst the background given above, the economic issues\nwhich are likely to come up in the Council of Foreign Ministers must be\nconsidered. The most important of these issues are the following:\n(a) Treatnent of German> as an Economic Unit*\nIn the past, the United States has tended to exaggorate the\neconomic importance of the failure to treat Germany as a unit in accordance\nwith the stipulations of the Berlin Protocol. The absence of any signi-\nficant economic revival in Western Germany is due, not so much to the\ndivision of Germany into zones, but more to the inadequate supplies of\nfood, raw materials and coal, which the unification of Germany would do\nlittle to improve in the near future. In the future, we would do well to\nregard the unification of Germany primarily as an important political\nobjective and to consider economic unification as an adjunct to, or con-\ncomittant of, political unification. Political and economic unification\nneed\nSee separate memorandum on Economic Unity (Annex 1)"
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