SINGLE CURRENCY FOR WESTERN SECTORS OF BERLIN

Chronicle (Levin), 21 March 1949, Page 5

SINGLE CURRENCY FOR WESTERN SECTORS OF BERLIN

( N.Z.P.A *

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Russian Mark No Longer Legal Tender

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Received Monday, 9.40 a.hj, BERLIN, March 20. The British, French " and American Military Governors announced that the westmark would from today b§ the only legal tender in the W estern sectors of Berlin, They said .that this action had been taken reluetantiy and "only after every possibility of agreeing on a quadripartitely-controlled eiu% rency ha'd been exhausted." The announcement said that rations could be bought with eastmarks until the end of the month, that tenants could pay half their rent in eastmarks for the next 80 days and that everyone could ehange 15 eastmarks at par when ration cards for the next month were drawn.

A British statement explaining the cur-rency change-over in simple terms for Berliners said: "The eastmark is no longer legal tender, bait it is still permitted to circulate and nobody wiJ be prevented from trading in "or being in possession of eastmarks." Special conversion provisions are necessary because 100,000 Berliners who live in the Western sectors work and' are paid in the Russian sector, and vice versa. Aid To Stabilised Economy In the past most Berliners received threequarters of their wages in eastmarks and one-quarter in westmarks. The currency reform is expected to give Western Berlin a better chance to stabilise its economy. The Western Berlin City Administration will be enabled to meet its large initial commitments by a spe- ' cial 30-day interest free loan to be granted by a new bank established solely for the purpose. I The three Western Military Governors officially informed the Russian Military Governor, Marshal Sokolovsky, by letter of the new currency regulations. I The British commandant, Major-

General G. K. Bourne, said: "Any cufrency counter measures attempted by the Russians would hurt them more than they would us." . The American cpmmandant, Brigadier-General Howley, said: "Let the Russians shake the hand which we have never refused to give them. It must be obvious to even the most dense Communist that Soyiet policy in Berlin is a complete failure, and that the best thing they can do is to lift the blockade." ' The dual currency systern has heeni in effect sipce last June. The Russian-backed eastmark has circulated freely in Western Berlin at approximately one-third the value of the westmark. Quick Russian Action Expected Quick Russian action to prevent the reform having an adverse effect on the economy of their zone is anticipated. It is likely that the Russians will seal off the Western sectors of the city for a.few days. This would mean the closing down of the i-mportant elevated railway system and the halting of under- | erround trains, trams and buses at the sector borders. i i . 1 — ' i J- ■ g