(iii) Any British Colony and any territory under the protection of His Britannic Majesty. (iv) Any territory in respect of which a mandate on behalf of the League of Nations was accepted by His Britannic Majesty and any territory placed under the trusteeship system of the United Nations, which territories are being administered by His Majesty's Government in the United Kingdom or in any Dominion. (v) Burma. (vi) Iraq and Transjordan. (vii) Iceland and the Faroe Islands. If and when any alteration is made to the definition of the expression "the scheduled territories" for the purposes of the Exchange Control Act, 1947, of the United Kingdom, the Government of the United Kingdom shall forthwith notify that change to the Joint Foreign Exchange Agency and the expression "the sterling area" shall be deemed to have been correspondingly amended for the purposes of this Agreement. (b) For the purposes of the present Agreement, the Bipartite Finance Committee (United States-United Kingdom), provided for in the Bizonal Fusion Agreement, shall be deemed to have been superseded by the Joint Foreign Exchange Agency. (c) Any reference in the present Agreement to the Joint ExportImport Agency or the Joint Foreign Exchange Agency shall be construed to refer likewise to any successor organization or organizations. PROVISIONS FOR ENTRY INTO FORCE, AMENDMENT AND RENEWAL 11. (a) The present Agreement shall come into force on signature. The present Agreement and the Bizonal Fusion Agreement shall constitute a single agreement between the two Governments, which shall remain in force until agreement has been reached for the treatment of Germany as an economic unit or until December 31, 1948, whichever is the sooner. In either event, the Joint Export-Import Agency and the Joint Foreign Exchange Agency shall continue to function until such time as further agreement is reached concerning them. (b) The two Governments shall consult together before June 30, 1948, at the request of either of them, for the purpose of reviewing the operation of the Agreement and of considering whether any amendment should be made in its terms. The two Governments shall also consult together before December 1, 1948 to consider the terms and conditions of a new Agreement for a further period. In witness whereof the undersigned, being duly authorized thereto,. have signed the present Agreement. Done at Washington, in duplicate, this seventeenth day of December, 1947. For the Government of the United States of America: ROBERT A. LOVETT. For the Government of the United Kingdom of Great Britain and Northern Ireland: WILLIAM STRANG. ANNEX PROVISION BY THE GOVERNMENT OF THE UNITED KINGDOM OF CATEGORY A GOODS AND SERVICES IN THE CALENDAR YEAR 1948 The goods and services to be provided by the Government of the United Kingdom during the calendar year 1948 in accordance with the provisions of paragraph 1 (a) (iv) of the Agreement, are as follows: The Government of the United Kingdom may, in consultation with the Joint Export-Import Agency, make reasonable adjustment in the composition of this list. (c) Extension of Bizonal Fusion Agreement, June 30, 19491 TEXT OF UNITED STATES NOTE OF JUNE 30, 1949 EXCELLENCY: I have the honor to refer to the discussions which have taken place between the Government of the United Kingdom and the Government of the United States on the subject of the extension of the Agreement between the two Governments concerning the British and American Zones of Occupation in Germany. By their exchange of notes of March 31, 1949, the two Governments agreed to extend the Bizonal Fusion Agreement to June 30, 1949, and to consult together before June 1, 1949, to consider the terms and conditions of a new Agreement for a further period. At the time of this exchange of notes it was thought that, prior to June 30, a German Government would be in existence, that the Occupation Statute would be in operation and that the Tripartite Agreement on Control Machinery, covering a substantial part of the field of Trizonal Fusion, would have come into force simultaneously with the Occupation Statute, thus rendering unnecessary a further extension of the Bizonal Fusion Agreement. Since these arrangements have not yet matured, the Government of the United States believes that the most practical arrangement is the extension for a further period of three months of such parts of the present Fusion Agreement as have not already been replaced by other agreements or arrangements. I therefore have the honor to submit the following proposals for the consideration of the Government of the United Kingdom: (A) The Fusion Agreement of December 2, 1946, as amended on December 17, 1947, and as further amended by the exchange of notes 1 Department of State Bulletin, July 18, 1949, pp. 69-70. of December 31, 1948, and March 31, 1949, shall, unless sooner terminated by mutual agreement or by the conclusion of a Trizonal Fusion Agreement, be extended until September 30, 1949, subject to the following amendments. (B) During the period for which the existing Fusion Agreement is extended, the Government of the United Kingdom will continue their contribution of supplies and services to Germany at the existing basic rate of 171⁄2 million pounds per annum (approximately the equivalent of 70 million dollars). The type and value of specific categories of goods and services to be supplied by the Government of the United Kingdom will be agreed upon in separate discussions between the United Kingdom and the Bizonal Area. Pending such agreement, the Government of the United Kingdom will supply appropriate quantities of the goods and services specified in the Annex to the Agreement of December 17, 1947, amending the Fusion Agreement. The Government of the United States will use its best endeavors to secure the full utilization by the Bizona Area of the offer of supplies and services which the Government of the United Kingdom will make to fulfill its obligation under this provision. If after the termination of the present agreement it should appear that the Bizonal Area has not received the full amount of the contribution envisaged, the two Governments will consult together for the purpose of seeking an acceptable method of settling the balance. (C) Moneys made available by the Government of the United Kingdom for the supply of goods and services in accordance with paragraph B of the exchange of notes of March 31 last amending and extending the Revised Fusion Agreement will, to the extent that they have not been fully spent by June 30, 1949, be used for the purchase of Category A supplies and services for delivery after that date in accordance with existing arrangements and procedures. (D) Upon the conclusion of a Payments Agreement between the United Kingdom and Western Germany, as envisaged in sub-paragraph (A) of the exchange of notes of March 31, 1949, paragraph 3 of the Agreement signed in Washington on December 17, 1947 shall terminate and its provisions shall be replaced by the Payments Agreement to be concluded between the Government of the United Kingdom and Western Germany. Until conclusion of such a Payments Agreement the figure of 11⁄2 million pounds in paragraph 3 (6) (vi) and (vii) of the Agreement of December 17, 1947 will be increased to 7%1⁄2 million pounds, provided, however, that any credit for accounting of unused drawing rights out of fiscal year 1948-49 will be excluded from a credit balance of the Bizonal Area for purposes of calculating the excess which would necessitate payments in United States dollars. (E) The liability of the Government of the United Kingdom to convert sterling into dollars in accordance with the provisions of subparagraph (b) of paragraph 4 of the Agreement signed in Washington on December 17, 1947 shall be limited to the sterling held on July 1, 1949 in the No. 2 account of the Bank Deutscher Laender with the Bank of England, or due to be paid into that account in fulfillment of arrangements concluded before the first of July, 1949. During the period of the present agreement the sterling held in the No. 2 account of the Bank Deutscher Laender with the Bank of England will not be converted into dollars. (F) At the time of the liquidation of JEIA as provided for in the charter of the Allied High Commission for Germany the capital funds of JEIA, resulting from the capital contributions made by the Governments of the United States and United Kingdom in accordance with the Agreement of December 2, 1946, will be made available to the German Government for purposes of financing the foreign trade of Germany, provided, however, that the sterling assets of JEIA transferred under these arrangements will be blocked until June 30, 1950, or until agreement has been reached between the Governments of the United Kingdom and the United States as to how their release is to be effected, whichever date is the sooner. Should these proposals commend themselves to the Government of the United Kingdom, I have the honor to suggest that this note and your reply should constitute an Agreement between our two Governments. Accept, [etc.]. For the Secretary of State: DEAN RUSK. TEXT OF THE UNITED KINGDOM REPLY June 30, 1949. SIR: I have the honour to acknowledge the receipt of your note of today's date, the terms of which are as follows: [Here follows text of United States note printed above.] In reply, I have the honour to inform you that His Majesty's Government in the United Kingdom accept the proposals set forth in your note and, in accordance with the suggestion contained therein, your note and this reply shall be regarded as constituting an Agreement between our two Governments in this matter. I avail myself of this opportunity to renew to you the assurance of my highest consideration, F. R. HOYER MILLAR 92. MOSCOW MEETING OF THE COUNCIL OF FOREIGN MINISTERS: SELECTED STATEMENTS BY SECRETARY MARSHALL (a) Reconstruction of Germany on a Democratic Basis, March 14, 1947 1 The Berlin Conference instructed the Allied Control Authority "to prepare for the eventual reconstruction of German political life on a democratic basis and for eventual peaceful cooperation in international life by Germany". We believe that that directive should be made more precise so as to assure unity of procedure within the different German zones. I realize that the word democracy is given many interpretations. To the American Government and citizen it has a basic meaning. We 1 Department of State Bulletin, March 23, 1947, pp. 524-525. See also the report on the Council of Foreign Ministers Meeting by Secretary Marshall, printed under II. Postwar Conferences. believe that human beings have certain inalienable rights, that is, rights which may not be given or taken away. They include the right of every individual to develop his mind and his soul in ways of his own choice, free of fear or coercion-provided only he does not interfere with the like right of others. To us a society is not democratic if men who respect the rights of their fellow men are not free to express their own beliefs and convictions without fear that they may be snatched away from their home and family. To us a society is not free if lawabiding citizens live in fear of being denied the right to work or deprived of life, liberty, and the pursuit of happiness. We believe that the reconstruction of Germany on a democratic basis as called for by the Berlin Conference requires that basic law within each German state and the practice of the occupying authorities should assure such rights to every individual and effectively prevent any government or group, however powerful or however numerous, from taking such rights from or imposing such fears on any individuals, however weak or however few. We believe that the present control of Germany by the Allies gives us a unique opportunity to demonstrate to the world the sincerity of the democratic goals which were proclaimed in the Atlantic Charter and the Charter of the United Nations. Unfortunately the Allied Council has not yet been able to agree upon the guaranties necessary to assure political and economic freedom in all parts of Germany. In consequence there has been no uniform preparation of the Germans in the different zones for the political reconstruction of Germany. In the first place, it seems clear that there has not been a uniformly effective guaranty of civil rights in all parts of Germany. The protection of the individual in the modern state rests upon the constitutional guaranties of his basic rights and liberties. I assume my colleagues will agree that adequate guaranties of these basic rights of the individual should be contained in every German constitution. In the second place, there has been no uniformly effective guaranty of the rights of political parties in all parts of Germany. Freely constituted political parties should be insured the right to participate in a free competitive election system in which each is accorded equal opportunity to present its views, to win adherents, and to obtain just representation. In the third place, there is no uniformly effective guaranty of the rights of free trade unions in all parts of Germany. The rights of free and autonomous trade unions to carry on customary trade-union activities in accordance with the wishes of their members should be clearly established. In the fourth place, there is no uniformly effective guaranty of the freedom of the press and radio in all parts of Germany. There is, in the opinion of the American Government and the American people, a vital connection between modern democracy and a free press and radio. Governmental domination and manipulation of information media in the interest of the Nazi Party were powerful weapons in the hands of the anti-democratic Nazi regime. If anti-democratic ideologies are to be forever eliminated in Germany we must certainly permit the people of that nation to enjoy an unrestricted access to information obtained by means of all media of public information, |