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In contrast to the Bizone, the French Zone
from Germany and veiled the export transac-
did not have the benefit of substantial assist-
tions of the Soviet Zone in secrecy. Lists of
ance from the occupying power, and has suf-
commodities to be exchanged are published,
fered in addition from occupation troops "liv-
but little information is given about the actual
ing off the land." In 1946, total exports from
volume or value of the trade. The USSR is
the French Zone were $60 million, three times
always the principal beneficiary of such for-
the value of exports from the US Zone over a
eign-exchange proceeds as are realized from
longer period of time. All but a small propor-
Soviet Zone exports. This does not include
tion, probably less than 20 percent, of this
reparations which constitute the largest part
trade went to France. Certain plants worked
of goods removed from the country. In 1948
exclusively for the so-called export program
and 1949 the Soviet Zone concluded trade
and were accorded preferential treatment in
agreements with a number of foreign coun-
the supply of power, coal, and raw materials as
tries, including Belgium, the Netherlands,
well as in the allocation of cigarettes and food.
Sweden, and Poland. The export-import deals
Exports continued to increase and reached
negotiated within the framework of these
$106 million in 1947, of which $88 million went
agreements are largely handled by the Soviet-
to France. The largest zonal exports to
established German Central Administration
France consisted of lumber and lumber prod-
for Foreign Trade, the purpose of which, as
ucts, and constituted 38 percent of the total.
stated by the USSR, is to stimulate the expan-
Imports amounted to $13 million, of which 37
sion of export trade, particularly toward the
percent came from the US, mostly in food-
Soviet Union, Poland, and the Danubian states.
stuffs. Rising world prices for imports turned
Outside of these trade agreements a relatively
this favorable trade balance into a deficit of
large share of German export trade is con-
1948. In the first six months of 1948, bizonal
ducted through a number of Soviet-controlled
receipts from the French Zone were RM 54.6
export companies, with the compensation
million, while deliveries from the Bizone were
goods or foreign exchange proceeds benefiting
RM 196.3 million.
the Soviet rather than the German economy.
During 1948 steps were taken to integrate
The principal items of export are potash,
the foreign trade of the French Zone with that
which the Soviet Zone possesses in abundance,
of the Bizone through the JEIA, culminating
timber, scrap iron, machinery, and chemicals.
in a fusion with the Bizone on 18 October. As
Chief imports since the lifting of the counter-
a result it became necessary to provide direct
blockade in May 1949 are raw materials in-
outside assistance. For the fiscal year 1948-
cluding cotton, wool, machinery and parts,
49, ECA grants to the French Zone amounted
semi-finished steel products and chemicals for
to about $100 million, to cover expected dollar
state-owned enterprises producing for the So-
deficits. ECA estimates dollar aid require-
viet account.
ments for 1949-50 at $115 million.
Although the USSR planned an ambitious
Even under the most optimistic assumptions
foreign trade development program for the
as to production and distribution of indige-
Soviet Zone in 1948, fulfillment was seriously
nous food supplies, imports of breadgrains will
curtailed by the imposition of the Western
continue to be needed to supply about one-
Powers' counterblockade and by the ensuing
half of the bread ration and one-fourth of the
production difficulties arising from shortages
total caloric intake of the population. Manu-
of vital materials previously obtained from the
facturing industries, however, are expected by
western zones. It was the intention of the
the last year of the ERP to have recovered suf-
USSR to channel the great bulk of Soviet Zone
ficiently to provide a net export surplus to
trade eastward, but the satellite countries
Western Europe.
proved unable or unwilling to exchange com-
(3) Soviet Zone.
modities with the Soviet Zone in the quanti-
ties or types required by the zonal economy.
The USSR consistently blocked agreement
Consequently, an unfavorable balance-of-
on quadripartite allocation of foreign exports
trade developed, with imports exceeding ex-
II-33
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"ocrText": "In contrast to the Bizone, the French Zone\nfrom Germany and veiled the export transac-\ndid not have the benefit of substantial assist-\ntions of the Soviet Zone in secrecy. Lists of\nance from the occupying power, and has suf-\ncommodities to be exchanged are published,\nfered in addition from occupation troops \"liv-\nbut little information is given about the actual\ning off the land.\" In 1946, total exports from\nvolume or value of the trade. The USSR is\nthe French Zone were $60 million, three times\nalways the principal beneficiary of such for-\nthe value of exports from the US Zone over a\neign-exchange proceeds as are realized from\nlonger period of time. All but a small propor-\nSoviet Zone exports. This does not include\ntion, probably less than 20 percent, of this\nreparations which constitute the largest part\ntrade went to France. Certain plants worked\nof goods removed from the country. In 1948\nexclusively for the so-called export program\nand 1949 the Soviet Zone concluded trade\nand were accorded preferential treatment in\nagreements with a number of foreign coun-\nthe supply of power, coal, and raw materials as\ntries, including Belgium, the Netherlands,\nwell as in the allocation of cigarettes and food.\nSweden, and Poland. The export-import deals\nExports continued to increase and reached\nnegotiated within the framework of these\n$106 million in 1947, of which $88 million went\nagreements are largely handled by the Soviet-\nto France. The largest zonal exports to\nestablished German Central Administration\nFrance consisted of lumber and lumber prod-\nfor Foreign Trade, the purpose of which, as\nucts, and constituted 38 percent of the total.\nstated by the USSR, is to stimulate the expan-\nImports amounted to $13 million, of which 37\nsion of export trade, particularly toward the\npercent came from the US, mostly in food-\nSoviet Union, Poland, and the Danubian states.\nstuffs. Rising world prices for imports turned\nOutside of these trade agreements a relatively\nthis favorable trade balance into a deficit of\nlarge share of German export trade is con-\n1948. In the first six months of 1948, bizonal\nducted through a number of Soviet-controlled\nreceipts from the French Zone were RM 54.6\nexport companies, with the compensation\nmillion, while deliveries from the Bizone were\ngoods or foreign exchange proceeds benefiting\nRM 196.3 million.\nthe Soviet rather than the German economy.\nDuring 1948 steps were taken to integrate\nThe principal items of export are potash,\nthe foreign trade of the French Zone with that\nwhich the Soviet Zone possesses in abundance,\nof the Bizone through the JEIA, culminating\ntimber, scrap iron, machinery, and chemicals.\nin a fusion with the Bizone on 18 October. As\nChief imports since the lifting of the counter-\na result it became necessary to provide direct\nblockade in May 1949 are raw materials in-\noutside assistance. For the fiscal year 1948-\ncluding cotton, wool, machinery and parts,\n49, ECA grants to the French Zone amounted\nsemi-finished steel products and chemicals for\nto about $100 million, to cover expected dollar\nstate-owned enterprises producing for the So-\ndeficits. ECA estimates dollar aid require-\nviet account.\nments for 1949-50 at $115 million.\nAlthough the USSR planned an ambitious\nEven under the most optimistic assumptions\nforeign trade development program for the\nas to production and distribution of indige-\nSoviet Zone in 1948, fulfillment was seriously\nnous food supplies, imports of breadgrains will\ncurtailed by the imposition of the Western\ncontinue to be needed to supply about one-\nPowers' counterblockade and by the ensuing\nhalf of the bread ration and one-fourth of the\nproduction difficulties arising from shortages\ntotal caloric intake of the population. Manu-\nof vital materials previously obtained from the\nfacturing industries, however, are expected by\nwestern zones. It was the intention of the\nthe last year of the ERP to have recovered suf-\nUSSR to channel the great bulk of Soviet Zone\nficiently to provide a net export surplus to\ntrade eastward, but the satellite countries\nWestern Europe.\nproved unable or unwilling to exchange com-\n(3) Soviet Zone.\nmodities with the Soviet Zone in the quanti-\nties or types required by the zonal economy.\nThe USSR consistently blocked agreement\nConsequently, an unfavorable balance-of-\non quadripartite allocation of foreign exports\ntrade developed, with imports exceeding ex-\nII-33"
}