RUSSIANS OFFER FOR SETTING UP E. GERMAN STATE

Gisborne Herald, Volume LXXVI, Issue 22931, 27 April 1949, Page 7

RUSSIANS OFFER FOR SETTING UP E. GERMAN STATE

(11 a.m.) LONDON, April 26. Reliable reports In Berlin say ; d that Russia has promised the Ger- Vi man Communist leaders a peace U treaty for Eastern Germany and rJ the cancellation of all reparations ji claims once an Eastern German j-. State Is formed, says the British V United Press correspondent. L

This would be Russia’s answer to the formation of a separate West German State which is now imminent.

The promise of a peace treaty and j the cancellation of reparations would j be a big incentive to German political j leaders in the Russian zone to set about the task of forming a similar State in the East without delay. i It would also gain considerable sup- 1 port as Russia’s demand for £2,500,- • 000,000 in reparations was one of -the most severe penalties levied in Ger-, many. Meanwhile, says the Associated Press correspondent. Military Govern- , ment officials of the three Western j Powers are drafting an “occupation statute” for Berlin.

Brigadier - General Frank Howley,. the United States sector commandant, said that much of the spade work on the statute was completed. The statute will define the rights of the German City Government and which prerogatives the Allies will retain. Many of the principles of th® statute for Western Germany will be incorporated in the city charter. ,