MORE HARD BARGAINING

Chronicle (Levin), 3 September 1948, Page 5

MORE HARD BARGAINING

, (N.Z.P.A

l. — Reuter.

Abrupt Ending To Governors' Meeting

Copyright)

Received Friday, 10.30 a.m. LONDON, Sept. 2. The four Allied Military Governors in Germany held their third meeting in Berlin today, but the conference lasted only 97 minutes instead of the anticipated several hours. It is reliably reported that this abrupt ending was caused by technical problems which the advisers were unable to solve. After the meeting Lieut.-General Babcock, United States Deputy Commandant, appealed to Berliners "to have faith in the present talks," but German political circles are becoming inereasingly pessimistie about the outcome of the Berlin and Moscow conferences. A eity official said today: "The operation may be successful, but it looks as though the patient will most certainly die. The Allies may reach agreement, but at such a cost to the Westerners that they miglit just as well have left Berlin in the first place." Marshal Sokolovsky, the Russian Military Governor, was accomDanied to the Governors' meeting by General Borzof, the chief Soviet telecommunieations expert, who is known as "one of Moscow's toughest bargainers." General Borzof's appearance confirmed earlier'reports that hard bargaining could be expected and prompted speculation that the Russians might toss into the scales their ability to cut off Berlin's telephone and telegraph communications with Westem Germany. It is reported that the problems discussed at today's meeting- included the insistenee by the Westem Governors that Russia agree to increase the daily quota of trains when the blockade was lifted so as to replenisli depleted stocks, and the British proposal to guarantee Westem sector industries financial equality with Soviet sector industries if the Russian j currency is aecepted for the wholej of Berlin. j The German news agency re-,, ported that the four Governors have received directives to com- i plete the present discussions with-J in ten days so that the Moscow negotiators can reach a final deci- ; sion by September 15. The United States Military Governor, General Clay, refused to comment after today's meeting*, but an Americaii official said that the Governors would meet again tomorrow. The Iransport specialists of the Allied Military Governments met in the Control Council building in Berlin this aftemoon. The German news agency says that the first poinl discussed was preparation for the resum.ption of rail traiiic froin Helmstadt to Berlin. The French-licensed Berlin newspaper Kurier quoted a French represenlative as saying that the chances i'or the lifting of the blockade were "fifty-fifty." United States sources said today that they expected the Russians ivouid remove the technical difficulties which had caused the blockade in return for Western currency concessions. The Russians, however, woukl not agree to lift the blockade unconditionally, and would insist on retaining certain controls over transport and trade between the Western zones and Berlin. Berlin's citv leaders postponed' i'or the fourth time a meeting of the City Council which had been called for tomorrow because, • firstly, the Military Governors had not yet replied to the letter drafted by the city administration yesterday, asking that Berlin De heard at the current talks. and, secondly, that General Kotikov had not yet giv'en an assurance that the City Hall would be protected against demon,st rations. Swindlers did a roaring trade on Berlin's blackmarket today, when they began selling bank notes described as "tlie new uniform currency for all Berlin." They sold notes — Eastern marks with stamps be.aring the Berlin City crest affixed at the rate of one for two eastern marks. When customers examined the "new currency" careiuiiv they found the stamps were trade mark stickers used by a Benin bakery.