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Allied Control Council for Germany

Published online by Cambridge University Press:  22 May 2009

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Currency Reform: On February 3, 1949, it was announced that the United States wished to discard the agreement reached in Moscow on August 30, 1948, whereby the Soviet Union would raise the Berlin blockade in return for the introduction of the eastern mark as the sole currency in the western sectors of Berlin. The United States introduced a new plan by which the western mark would continue to circulate in the western sectors and the Soviet mark in the eastern sector until a municipal government with effective control over the entire city was established. The United States proposal was submitted to the committee of experts appointed by the President of the United Nations Security Council to study the Berlin currency problem. Early in January 1949, the committee proposed a plan based on the principles of the August 30 agreement which recognized the division of Berlin into two separate administrations by recommending a split banking system with quadripartite control over the distribution and circulation of currency, with the eastern mark established as the sole currency of the city, and with additional safeguards against the possibility that the Soviet Union would use its control over the actual issue of the mark to harm the economy of the western sectors. The USSR did not wholly accept the plan, France and the United Kingdom were prepared to work from it, but the United States found it entirely unacceptable and submitted another. The second United States plan called for the use of the eastern mark as an over-all currency, with currency and trade exchanges controlled by a permanent board of trustees made up of citizens of neutral powers.

Type
International Organizations: Summary of Activities: IV. War and Transitional Organizations
Copyright
Copyright © The IO Foundation 1949

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References

1 New York Times, February 4, 1949.

2 The Christian Science Monitor, March 17, 1949.

3 New York Times, February 12, 1949.

4 Ibid., March 2, 1949.

5 Ibid., March 21, 1949.

6 Ibid., January 18, 1949. See International Organization, II, p. 552.

7 Department of State Bulletin, XX, p. 195Google Scholar.

8 New York Times, January 18, 1949.

9 Ibid., March 10, 1949.

10 Ibid., April 10, 1949.

11 Ibid., March 15, 1949.

12 Ibid., March 16, 1949.

13 Ibid., March 17, 1949.

14 Ibid., March 27, 1949.

15 Ibid., February 4, 1949.

16 Ibid., April 1, 1949.

17 Ibid., April 1, 1949.

18 Ibid.

19 Ibid., February 4, 1949.

20 Ibid., February 4, and March 20, 1949.

21 For the views of the Inter-Allied Reparation Agency on the dispute, see International Organization, III, p. 183Google Scholar.

22 New York Times, January 21, 1949.

23 Ibid., March 29, 1949.

24 Ibid., January 17, 1949.

25 Ibid., April 2, 1949.

26 Ibid., April 11,1949.