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34
THE BERLIN CRISIS:
Report on the Moscow Discussions, 1948
35
to convince Molotov that their draft met his requirements. Breaking
Further discussion of details again and again brought the Western
off the discussion of particular points, Molotov suddenly suggested
representatives face to face with a point of principle on which they
that he could provide a simple formula to deal with paragraphs 1,
had to repeat their position, reminding Mr. Molotov that while their
2, and 5, and that the other paragraphs could be left for later discus-
governments were willing to accept Soviet currency as the sole cur-
sion as being relatively unimportant. He then wrote down and read
rency in Berlin, they would not be willing to accept terms for the use of
out the following proposed directive to the Military Governors in
that currency which would endanger the financial and economic life
Berlin:
of the city. Smith repeated that it was quite useless to send any
directive to the Military Governors unless there was agreement in
"The Governments of France, Great Britain, US and USSR have
Moscow on the basic issues. It would be equally useless to propose a
agreed that the following steps should be taken simultaneously :
vague and undefined directive to the three governments which would
"(A). Restrictions recently imposed on both sides on communica-
still be obliged to obtain answers to the basic questions they had already
tions between Berlin and the western zones shall be lifted;
raised. He repeated that there was no point in simply transferring
" (B). The German mark of the Soviet zone shall be introduced as
to Berlin problems which it had not been possible to solve in Moscow
the sole currency for Berlin, and the western mark 'B' shall be with-
through direct contact with Mr. Molotov.
drawn from circulation in Berlin.
The meeting was finally adjourned with Smith and his colleagues re-
"In connection with the above you are instructed to examine, to-
cording their disappointment at the lack of progress. Smith sug-
gether with your colleagues, within the shortest time possible and if
gested that they study and report the results of the meeting to their
possible before August 25, the detailed arrangements necessary for
governments in case they should have any final instructions or addi-
the implementation of this agreement and to inform your govern-
tional guidance. He said he would then ask for a final conference.
ment of the exact date on which provisions under 'A' and 'B' above
can be brought into effect."
As the discussion had already gone on for more than two hours and
Molotov showed no disposition to give serious consideration to ac-
The Second Meeting With Stalin
cepting the draft proposed by Smith and his colleagues, they stated
on August 23
that they would be willing to submit his new proposal to their govern-
ments but that it would serve no useful purpose to do so unless the
directive he suggested were completed by adding an additional para-
After considering the fruitless series of drafting meetings with
graph covering all the points in the second part of their draft para-
Molotov, the Three Governments then decided to request another meet-
graph 5 which their governments consider the absolute minimum
ing with Stalin. This was held on August 23.
that could be accepted in the way of a directive to the four Military
In preparation for it the Three Governments had agreed upon a
Governors. Molotov argued against this, taking the line, contrary to
new draft to put before Stalin, embodying the points discussed in
his previous position, that the Military Governors in Berlin might
the first meeting with him, and taking into account the points raised
very well be able to work out practical solutions of the technical
meanwhile by Molotov insofar as these could be harmonized with the
problems without specific instructions. Smith pointed out that this
rights and duties of the Western occupation forces in Berlin. This
would simply transfer the unsolved problems from Moscow to Berlin,
draft took the form of a directive to the Military Governors in Berlin
with even less hope of a solution in the absence of agreement in Mos-
to work out the concrete means for implementing the principles with
cow on the two or three basic issues which still remain unsettled. He
respect to currency and transport restrictions, together with a com-
then agreed to go through the Western draft together with the Soviet
muniqué to be issued by the Moscow conferees on behalf of the Four
draft to see whether it would be possible to bring them into conformity
Governments, finalizing the arrangements worked out by the Military
and set down principles under which the four Military Governors
Governors.
could work.
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"ocrText": "34\nTHE BERLIN CRISIS:\nReport on the Moscow Discussions, 1948\n35\nto convince Molotov that their draft met his requirements. Breaking\nFurther discussion of details again and again brought the Western\noff the discussion of particular points, Molotov suddenly suggested\nrepresentatives face to face with a point of principle on which they\nthat he could provide a simple formula to deal with paragraphs 1,\nhad to repeat their position, reminding Mr. Molotov that while their\n2, and 5, and that the other paragraphs could be left for later discus-\ngovernments were willing to accept Soviet currency as the sole cur-\nsion as being relatively unimportant. He then wrote down and read\nrency in Berlin, they would not be willing to accept terms for the use of\nout the following proposed directive to the Military Governors in\nthat currency which would endanger the financial and economic life\nBerlin:\nof the city. Smith repeated that it was quite useless to send any\ndirective to the Military Governors unless there was agreement in\n\"The Governments of France, Great Britain, US and USSR have\nMoscow on the basic issues. It would be equally useless to propose a\nagreed that the following steps should be taken simultaneously :\nvague and undefined directive to the three governments which would\n\"(A). Restrictions recently imposed on both sides on communica-\nstill be obliged to obtain answers to the basic questions they had already\ntions between Berlin and the western zones shall be lifted;\nraised. He repeated that there was no point in simply transferring\n\" (B). The German mark of the Soviet zone shall be introduced as\nto Berlin problems which it had not been possible to solve in Moscow\nthe sole currency for Berlin, and the western mark 'B' shall be with-\nthrough direct contact with Mr. Molotov.\ndrawn from circulation in Berlin.\nThe meeting was finally adjourned with Smith and his colleagues re-\n\"In connection with the above you are instructed to examine, to-\ncording their disappointment at the lack of progress. Smith sug-\ngether with your colleagues, within the shortest time possible and if\ngested that they study and report the results of the meeting to their\npossible before August 25, the detailed arrangements necessary for\ngovernments in case they should have any final instructions or addi-\nthe implementation of this agreement and to inform your govern-\ntional guidance. He said he would then ask for a final conference.\nment of the exact date on which provisions under 'A' and 'B' above\ncan be brought into effect.\"\nAs the discussion had already gone on for more than two hours and\nMolotov showed no disposition to give serious consideration to ac-\nThe Second Meeting With Stalin\ncepting the draft proposed by Smith and his colleagues, they stated\non August 23\nthat they would be willing to submit his new proposal to their govern-\nments but that it would serve no useful purpose to do so unless the\ndirective he suggested were completed by adding an additional para-\nAfter considering the fruitless series of drafting meetings with\ngraph covering all the points in the second part of their draft para-\nMolotov, the Three Governments then decided to request another meet-\ngraph 5 which their governments consider the absolute minimum\ning with Stalin. This was held on August 23.\nthat could be accepted in the way of a directive to the four Military\nIn preparation for it the Three Governments had agreed upon a\nGovernors. Molotov argued against this, taking the line, contrary to\nnew draft to put before Stalin, embodying the points discussed in\nhis previous position, that the Military Governors in Berlin might\nthe first meeting with him, and taking into account the points raised\nvery well be able to work out practical solutions of the technical\nmeanwhile by Molotov insofar as these could be harmonized with the\nproblems without specific instructions. Smith pointed out that this\nrights and duties of the Western occupation forces in Berlin. This\nwould simply transfer the unsolved problems from Moscow to Berlin,\ndraft took the form of a directive to the Military Governors in Berlin\nwith even less hope of a solution in the absence of agreement in Mos-\nto work out the concrete means for implementing the principles with\ncow on the two or three basic issues which still remain unsettled. He\nrespect to currency and transport restrictions, together with a com-\nthen agreed to go through the Western draft together with the Soviet\nmuniqué to be issued by the Moscow conferees on behalf of the Four\ndraft to see whether it would be possible to bring them into conformity\nGovernments, finalizing the arrangements worked out by the Military\nand set down principles under which the four Military Governors\nGovernors.\ncould work."
}