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SECRET
7
for a unified nation. More recently, the Na-
would consist in these parties making clear
tional Front organization of the East German
their positions with respect to German unity.
Republic has been making contact with West
The Free Youth rally of the East German
German politicians and organizations who re-
Communists in Berlin on 28 May will be an
gard the uniting of the two Germanies as
indication of the attraction which unity un-
essential in order to restore German influ-
der Communist leadership holds for Germans
ence in Europe. This desire, as yet unorgan-
under Western control. At a mass demon-
ized in a coordinated movement, has recently
stration the East Germans hope to win visible
been gaining ground in West Germany in a
support for their form of German unification
variety of circles.
from the people of West Berlin. The East
The weak condition of the West German
Germans and their Soviet sponsors are count-
economy has accelerated public demands for
ing on the deteriorating economic conditions
of the West Berlin workers to weaken their
some political action that may ease the serious
unemployment situation. Many industrial-
allegiance to Western ideals. West Berliners
have had their confidence in the US shaken
ists and businessmen in the Federal Republic
are increasingly inclined to look towards the
by the drop in West German trade resulting
from the Soviets' continued interference with
East for raw materials and markets. The
pressure for the lifting of the Federal Repub-
barge and truck traffic. Although the Ade-
lic's embargo on steel deliveries to the East
nauer government has subsidized the Berlin
Germans has clearly revealed this attitude.
economy for some time under US prodding, it
In contemplating the termination of the ERP
will now have a more important reason for
two years hence, West German industrialists
doing so. However, as long as the USSR-ap-
believe that their future economic stability
parently confident at this time that West Ger-
can best be achieved through a revival of their
many will ultimately join the Eastern camp-
insists on unification under Communist direc-
former trade ties with Eastern Europe. A
unified nation would, in their view, accom-
tion, there will remain substantial resistance
in the Bonn Republic to the acceptance of any
plish this aim.
such terms.
Increasing cohesion can be anticipated
among the rightist-nationalist groups that
8. Consequences of British Election.
have been advocating unification under vari-
Although the security of the US will not be
ous terms. In addition, organizations of in-
directly affected by the stalemate resulting
tellectuals advocating neutralization of a
from the British general election, the out-
united Germany in the East-West struggle
come is unsatisfactory from the standpoint of
have been gaining strength. Many of the na-
both the UK and the US. The period of politi-
tionalist groups, despite their anti-Communist
cal maneuvering which preceded the election
orientation, would not be averse in principle
and which hindered decisive action at home
to coming to an understanding with the USSR
and abroad is likely to continue; one or more
or the East German Republic if they felt they
general elections may be required before Brit-
would strengthen their own power in a united
ain obtains a government with an adequate
Germany. There is some danger that such
parliamentary majority. No change in for-
irresponsible groups may be able to enlist the
eign or defense policies is to be expected, since
support of the ten million refugees and ex-
both the Conservative and Labor parties are in
pellees in Western Germany who have not
essential agreement on them.
been successfully assimilated into the major
It is in the field of domestic policy that the
parties and who tend to favor extremist solu-
indecisive nature of the election result will
tions to alleviate their apparently hopeless
have the most adverse effects. In the present
situation.
parliamentary situation, neither party is in a
The only effective means of countering Com-
position to pursue unpopular policies, and a
munist and rightist-nationalist propaganda
middle-of-the-road program may not be ade-
for unification would appear to lie with the
quate to combat inflation, with its consequent
present moderate west German parties and
effects on the British international position.
DECLASSIFIED
SECRET
E. O. 11652, Sec. 3(E) 3.34.774 and 5(D) or (E)
OSD
letter,
NARS
Date
4-18-77
By
NLT-
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"ocrText": "SECRET\n7\nfor a unified nation. More recently, the Na-\nwould consist in these parties making clear\ntional Front organization of the East German\ntheir positions with respect to German unity.\nRepublic has been making contact with West\nThe Free Youth rally of the East German\nGerman politicians and organizations who re-\nCommunists in Berlin on 28 May will be an\ngard the uniting of the two Germanies as\nindication of the attraction which unity un-\nessential in order to restore German influ-\nder Communist leadership holds for Germans\nence in Europe. This desire, as yet unorgan-\nunder Western control. At a mass demon-\nized in a coordinated movement, has recently\nstration the East Germans hope to win visible\nbeen gaining ground in West Germany in a\nsupport for their form of German unification\nvariety of circles.\nfrom the people of West Berlin. The East\nThe weak condition of the West German\nGermans and their Soviet sponsors are count-\neconomy has accelerated public demands for\ning on the deteriorating economic conditions\nof the West Berlin workers to weaken their\nsome political action that may ease the serious\nunemployment situation. Many industrial-\nallegiance to Western ideals. West Berliners\nhave had their confidence in the US shaken\nists and businessmen in the Federal Republic\nare increasingly inclined to look towards the\nby the drop in West German trade resulting\nfrom the Soviets' continued interference with\nEast for raw materials and markets. The\npressure for the lifting of the Federal Repub-\nbarge and truck traffic. Although the Ade-\nlic's embargo on steel deliveries to the East\nnauer government has subsidized the Berlin\nGermans has clearly revealed this attitude.\neconomy for some time under US prodding, it\nIn contemplating the termination of the ERP\nwill now have a more important reason for\ntwo years hence, West German industrialists\ndoing so. However, as long as the USSR-ap-\nbelieve that their future economic stability\nparently confident at this time that West Ger-\ncan best be achieved through a revival of their\nmany will ultimately join the Eastern camp-\ninsists on unification under Communist direc-\nformer trade ties with Eastern Europe. A\nunified nation would, in their view, accom-\ntion, there will remain substantial resistance\nin the Bonn Republic to the acceptance of any\nplish this aim.\nsuch terms.\nIncreasing cohesion can be anticipated\namong the rightist-nationalist groups that\n8. Consequences of British Election.\nhave been advocating unification under vari-\nAlthough the security of the US will not be\nous terms. In addition, organizations of in-\ndirectly affected by the stalemate resulting\ntellectuals advocating neutralization of a\nfrom the British general election, the out-\nunited Germany in the East-West struggle\ncome is unsatisfactory from the standpoint of\nhave been gaining strength. Many of the na-\nboth the UK and the US. The period of politi-\ntionalist groups, despite their anti-Communist\ncal maneuvering which preceded the election\norientation, would not be averse in principle\nand which hindered decisive action at home\nto coming to an understanding with the USSR\nand abroad is likely to continue; one or more\nor the East German Republic if they felt they\ngeneral elections may be required before Brit-\nwould strengthen their own power in a united\nain obtains a government with an adequate\nGermany. There is some danger that such\nparliamentary majority. No change in for-\nirresponsible groups may be able to enlist the\neign or defense policies is to be expected, since\nsupport of the ten million refugees and ex-\nboth the Conservative and Labor parties are in\npellees in Western Germany who have not\nessential agreement on them.\nbeen successfully assimilated into the major\nIt is in the field of domestic policy that the\nparties and who tend to favor extremist solu-\nindecisive nature of the election result will\ntions to alleviate their apparently hopeless\nhave the most adverse effects. In the present\nsituation.\nparliamentary situation, neither party is in a\nThe only effective means of countering Com-\nposition to pursue unpopular policies, and a\nmunist and rightist-nationalist propaganda\nmiddle-of-the-road program may not be ade-\nfor unification would appear to lie with the\nquate to combat inflation, with its consequent\npresent moderate west German parties and\neffects on the British international position.\nDECLASSIFIED\nSECRET\nE. O. 11652, Sec. 3(E) 3.34.774 and 5(D) or (E)\nOSD\nletter,\nNARS\nDate\n4-18-77\nBy\nNLT-"
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