FUSION OF ZONES

Otago Daily Times, Issue 26228, 12 August 1946, Page 5

FUSION OF ZONES

PLAN FOR GERMANY FRENCH COUNTER PROPOSALS EXCLUSION OF SAAR BASIN (Rec. US p.m.) LONDON. Aug. 10. The French answer to the United States plan for zonal fusion in Germany, which was tabled at a Control Council meeting, consisted of a series of counter-proposals, including the provision that the Allied Central Economic Agencies should not control the Saar, reports Reuter’s Berlin correspondent. General Koenig, the French representative on the Allied Control Council, stated: , , ,» First, France did not object to the establishment of Allied agencies using German operative personnel to effectuate temporarily German economic unity, provided the measures did not affect the Saar, which would immediately be integrated into the French economic and monetary system. Secondly, the establishment of a central German administration should not prejudice the political situation in Germ Thirdly, the manager should be an Allied national. . _ . . Fourthly, boards should be established for transport, communications, banking, industry, agriculture, foreign trade, and prices. In the British view, there is nothing new in the proposals. Britain and America believe it would be more profitable to achieve unity by the use of German agencies, which would, be able to ensure smoother operation. Russia has not expressed her view. The matter has been referred to the Co-ordination Committee.