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-6- Secretary Acheson Says USSR "On Defensive". - At his press conference on June 23, Secretary Acheson said, referring to the CFM session, that "the position of the West has grown steadily in strength", and "the position of the Soviet Union in regard to the struggle for the soul of Europe has changed from the offensive to the defensive, He added: "The significance of this is very important in explaining why no agreement was possible about Germany. Being on the defensive, the Soviet Union was forced to take, or did take at any rate, the attitude that it would not relax its hold in any way whatever upon any area which it controlled in Germany. It would not relax its hold on the Eastern zone of Germany or on the Eastern sectors of Berlin. That fact, in and of itself, made any agreement impossible because the whole essence of the Western program was to relax this iron grip of military government from the Western zones of Germany. " 10 Western Powers Decree End of East Mark in Western Berlin. - A statement on currency reform issued by the three Western Military Governments in Berlin on March 20, 1949, and published by the Department of State in June, sets forth that the US, UK, and French Military Governors, after consulting with the responsible German authorities in Frankfort and Berlin and in response to the unanimous resolution of the City Assembly adopted on November 4, 1948, had decided that as from March 20 the East mark should cease to be legal tender in the Western s sectors of Berlin. The statement noted that the currency reform instituted in the Western Zones in June 1948 had not disburbed the posi- tion in Berlin but that the reform in the Soviet Zone was made applicable to Berlin as well. In these circumstances the "estern powers had been obliged to introduce the West mark into their sectors but, in their desire to facilitate four-power agreement, had made both the West mark and the East mark legal currency in their sectors, according to the statement. It stated that failure to reach this agreement, coupled with the splitting of the city administration and con- tinuance of the blockade, "have meant that these arrangements have been inconsistent with the smooth ordering of economic and financial life in Western sectors, and grave economic and social injustices have resulted." 11 UN Neutral Experts Report on Berlin Currency. - The Depart- ment of State published in June the report of the Technical Committee on Berlin Currency and Trade appointed by UN Security Council lOpress release 484 of June 23. 1Documents and State Papers, Vol, I, No. 14, May (released in June) 1949, p. 782.

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    "ocrText": "-6-\nSecretary Acheson Says USSR \"On Defensive\". - At his press\nconference on June 23, Secretary Acheson said, referring to\nthe CFM session, that \"the position of the West has grown\nsteadily in strength\", and \"the position of the Soviet Union\nin regard to the struggle for the soul of Europe has changed\nfrom the offensive to the defensive, He added:\n\"The significance of this is very important in\nexplaining why no agreement was possible about Germany.\nBeing on the defensive, the Soviet Union was forced to\ntake, or did take at any rate, the attitude that it\nwould not relax its hold in any way whatever upon any\narea which it controlled in Germany. It would not\nrelax its hold on the Eastern zone of Germany or on\nthe Eastern sectors of Berlin. That fact, in and of\nitself, made any agreement impossible because the whole\nessence of the Western program was to relax this iron\ngrip of military government from the Western zones of\nGermany. \" 10\nWestern Powers Decree End of East Mark in Western Berlin. -\nA statement on currency reform issued by the three Western\nMilitary Governments in Berlin on March 20, 1949, and published\nby the Department of State in June, sets forth that the US,\nUK, and French Military Governors, after consulting with the\nresponsible German authorities in Frankfort and Berlin and\nin response to the unanimous resolution of the City Assembly\nadopted on November 4, 1948, had decided that as from March 20\nthe East mark should cease to be legal tender in the Western\ns\nsectors of Berlin.\nThe statement noted that the currency reform instituted\nin the Western Zones in June 1948 had not disburbed the posi-\ntion in Berlin but that the reform in the Soviet Zone was\nmade applicable to Berlin as well. In these circumstances\nthe \"estern powers had been obliged to introduce the West\nmark into their sectors but, in their desire to facilitate\nfour-power agreement, had made both the West mark and the\nEast mark legal currency in their sectors, according to the\nstatement. It stated that failure to reach this agreement,\ncoupled with the splitting of the city administration and con-\ntinuance of the blockade, \"have meant that these arrangements\nhave been inconsistent with the smooth ordering of economic\nand financial life in Western sectors, and grave economic\nand social injustices have resulted.\" 11\nUN Neutral Experts Report on Berlin Currency. - The Depart-\nment of State published in June the report of the Technical\nCommittee on Berlin Currency and Trade appointed by UN Security Council\nlOpress release 484 of June 23.\n1Documents and State Papers, Vol, I, No. 14, May (released\nin June) 1949, p. 782."
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