DEPARTMENT OF STATE Memorandum of Conversation
Date: February 14, 1949
Subject: Introduction of Western Mark as Sole Legal Tender For Western Sectors of Berlin
Participants: Mr. Dean Acheson, Secretary of State Mr. Henri Bonnet, French Ambassador Mr. Theodore Achilles, Chief-Division of Western European Affairs Mr. Jacob D. Beem, Chief-Division of Central European Affairs
Copies to: S/S ?? EUR ?? CE ARMY
Mr. Bonnet raised the question of the introduction of the western mark as solo legal tender for the western sectors of Berlin. He first stated that the proposed date of March 10 for this step was premature, since it might prejudice the outcome of discussions which might take place in the Security Council on the basis of the UN experts committee report. I explained that we had made a perfectly fair proposal for the use of the Soviet mark in Berlin. This proposal would envisage a free supply of eastern zone marks to the western sectors and autonomous control of the use of this mark by the western sectors. This proposal would serve as an interim solution, protecting the interest of all the four occupying powers in Berlin. If the Soviets then lifted the blockade we would be willing to discuss with them measures for the re-unification of the city. If in the Security Council in New York the Soviets indicated willingness to accept our proposal, we naturally would not want favorable negotiations to be broken off by our introduction of the western mark on March 10. However, we were not optimistic and because of the very bad economic situation in Berlin we felt the date of March 10 had to be set for a currency changeover. It is hoped this would provide sufficient time to ascertain whether the Soviets would agree to an acceptable solution.
Mr. Bonnet said the French Government objected to the use in Berlin of the mark of the western zones since this would irreparably tie Berlin with a western Germany. His Government had suggested an independent currency for the western sectors. It was explained to him that this had been studied by our technical people who regarded it as not feasible, since such an independent currency would have no backing and would quickly deteriorate.
Mr. Bonnet said he did not have the technical qualifications to discuss the matter further but said he would report my views to his Government. D.A.
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