MOSCOW RADIO’S ANNOUNCEMENT

Press, Volume LXXXIV, Issue 25610, 27 September 1948, Page 7

MOSCOW RADIO’S ANNOUNCEMENT

The Moscow radio said that the four (Powers in the Kremlin talks last month had reached an understanding on two measures to relieve the Berlin Situation, provided the four com-jmanders-in-chief agreed on how they should be applied. | The measures were, first the lifting ,of restrictions on transport and trade Berlin and the Western zones and on the movement of freight to and from the Russian zone, and, second, lhe introduction of the Russian-zone German mark as the sole Berlin currency.

The statement, which Tass claimed it was authorised to make without naming the authority, said that the negotiations held early this month had not been completed because the Western Governments had referred certain differences that arose among the com-manders-in-chief for joint examination with the Russian Government. The Soviet Government had consented to the Western Governments’ wishes for the establishment of fourPower control over Berlin’s trade with the Western zones and third countries, including the issuing of appropriate licences. Thus the difference on this issue had been removed. The Soviet Government, however, insisted that the Soviet command should controx all transport between Berlin and the Western zones, including air routes. Transport could not remain outside control, since the four Governments had reached an understanding envisaging the establishment of appropriate control over Berlin’s money circulation and trade. The Soviet Government also believed it was necessary strictly to ad-

here to the agreement which the four Governments had reached in Moscow concerning the quadripartite financial commission and its functions regarding the introduction and circulation of a single currency for Berlin. The Soviet Government could not agree to such an extension of the financial commission’s functions as would result in its intervention into the regulation of money circulation in the Soviet zone as a whole.

The statement continued: “In these conditions it depends upon the Governments of the United States, Britain, and France where a satisfactory agreement will bq reached.” The statement reiterated that tne Berlin situation had arisen “as a result of the violation by the United States, Britain, and France of the Potsdam decisions.”

Tass. said that the statement had been made because the Western Powers’ reports, including Mr Bevin’s speech in the House of Commons on Wednesday, did not give a true picture of the Berlin situation or the Moscow negotiations.

The Washington correspondent of the Associated Press says that Russia’s demand for control of all commercial air transport to Berlin appears to be a far greater price than the Western Powers are willing to pay to get the Berlin blockade lifted. This was the outstanding point seen by Washington authorities in the Moscow radio’s broadcast of the Soviet version of the Berlin crisis and the points of difference.

State Department officials, he adds, declined to make any immediate comment.