The Pittsburgh Press (December 3, 1946)
U.S., Britain merge zones in Germany
Big 4 parley on Reich to start this week
NEW YORK (UP) – The United States and Great Britain, on the eve of Big Four discussions on Germany, today announced a three-year, one-billion-dollar plan for merging their occupation zones in Germany and for making the area self-sustaining by 1950.
Secretary of State James J. Byrnes explained the merger plan at a press conference at which he also predicted the beginning of Big Four preliminary discussions on Germany this week.
The American-British decision to make their zones in Germany an economic unit was taken last summer after a year of futile effort to get the four occupying powers to fulfill the Potsdam agreement to treat Germany as an economic unit. Details were worked out in Washington last month.
Cost to decline
The merger plan will cost the American taxpayer more during 1947 than it would had the two zones remained separate. But both Mr. Byrnes and Lt. Gen. Lucius D. Clay, deputy military governor, explained that eventually it will cost a great deal less until in 1950, it is hoped, the area will be completely self-sustaining.
Currently it costs the American government $200 million a year to feed its zone while the British government pours about $400 million annually into its zone. But Gen. Clay pointed out that if the merger had not been achieved it would continue to cost the United States $200 million a year indefinitely, whereas now there is the expectation that the deficit can be eliminated within three years.
Invites Reds to join
Mr. Byrnes still hopes the Soviet Union and France will join the Anglo-American plan. He has not discussed the question with either Soviet Foreign Minister V. M. Molotov or French Deputy Foreign Minister Maurice Couve de Murville here, but he said the door was still open.
The agreement includes a promise by the two governments to increase the present ration standard for Germany from 1550 calories to 1800 calories as soon as the world food supply permits.
Mr. Byrnes admitted that he had not consulted members of Congress who will be responsible for approving higher appropriations in the next year or so. He appeared confident, however, that Congress could be persuaded that in the long run economic fusion will cost the American taxpayer less.
Mr. Byrnes was confident that the Council of Foreign Ministers will finish their work on the five satellite treaties within the next few days and begin immediate discussions on Germany.
Wants pact on Austria
The secretary of state again will press the Big Four to include Austria in their discussions of Germany. He has been trying for a year unsuccessfully to get them to discuss a peace treaty for that country.
Mr. Byrnes hopes to accomplish two major things during the discussion of Germany here:
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Agreement on an agenda to be used when the Council of Foreign Ministers meets in Europe some time next year for a full dress debate on Germany.
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Creation of special deputies to work in the meantime in preparation for such a meeting.
In addition, the Big Four will have to decide on what basis five other European countries will be allowed to participate in the German discussions. The Netherlands, Belgium, Luxembourg, Poland and Czechoslovakia have asked to participate in the council’s decisions on affairs directly affecting them.
In effect January 1
The agreement for the economic merger of the American and British zones in Germany, signed by Mr. Byrnes and Mr. Bevin last night, goes into effect January 1.
Under the Anglo-American plan the resources of both zones and all imports into the area, including food, will be pooled to produce a common standard of living.
A joint export-import agency will be established by the American and British commanders-in-chief in an effort to increase the exports of the two zones and make a start on the rebuilding of a self-sufficient German economy.