Cold War - Consolidation of Germany's Division

At first, they wanted cooperation:

• Demilitarisation
• Denazification
• Democratisation
• Reparations
• Potsdam - agreed to treat DEU as a single economic unit
• Agreement to split DEU and Berlin into 4 zones. There was no intent for permanent division at first.

The West zones send reparations until May 1946, but its a huge economical burden especially for BR. 

• DEU position in the middle of EUR and potential economic and military strength ensured the USSR and west didn't want to allow the other to dominate.
• Western perspective: Believed that punishment to DEU at the end of WWII created conditions for political extremism. They felt a strong democratic industrial base would guatantee peace. Also believed that economic recovery in EUR depended on free trade with DEU. 
• Soviet perspective: Stalin regarded DEU with suspicion. He was determined to stop it re-emerging as a military and economical power. He argued for a united DEU, explaining plans for a coalition of communist and socialist parties to take over gvt. 

• 20/06/48 - Western allies introduce new western currency, the Deutschmark, to replace the derailed Reitschmark. This was done without consulting the Soviet Union
• 4 days later: Soviets introuce the Ostmark. The new currencies begin to shape DEU into two zones
• Stalin wanted to put pressure on west Berlin so it would abandon plans for a west DEU state. West Berlin was totally dependent on rail and road links. 
• Breakdown of Moscow talks Aug. 1948 - western allies meet in Moscow to discuss agreement over Berlin. Stalin interpretted it as a sign of weakness and was uncomprimising. The talks broke down 07/09 because the west would not stop west state control and Stalin wanted currency control - neither gave way.

• 23/06/48 - Blockade begins in respsonse to Deutschmark
• Stalin argued that it was a defensive meaure to stop Soviet zone being swamped by Reischmark.
• Rail and road links and electricity to weat Berlin were cut. People in West Berlin now faced starvation
• The West began the airlift, at the suggestion of British statesman Bevin, who wanted forceful countermeasures that avoided war. He rejected General Clay's idea of an armed convoy, as he was worried that this would annoy USSR
• 2000 tons of food and raw material were delivered a day. 
• From August 2nd, Moscow talks broke down because neither side could agree. UN peace attempts failed. 

• 1948-9 winter was mild. The US C-54 planes had an 8000 daily tonnage by April. Western powers declared that the Deutschmark was the sole West Berlin currency.
• Exports to the Soviets were cut
• Stalin agreed to call off the Blockade as long as there was anouther Council of Foreign Ministers. Blockade ended 1949. 
• DEU's division consolidated. The Federal Republic of Germany was created 1949 (BR, US and FRA had the final say on affairs. Adenauer was the first leader), and so was the German Democratic Republic. Stalin was reluctant to create the GDR because it would finalise decision to split DEU.
• NATO formed in 1949. Said if any of the countries in treaty were attacked by Soviet Union, they would join forces and attack together

The West

• Creation of Deutschmark without consultation
• Accusations made by Soviets that BR broke Potsdam agreement by denying USSR fair share of reparations
• Airlift - annoys East
• Breakdown of Moscow talks
• Cutting exports to Soviet zone

The East

• Childish retaliation of Ostmark
• Blockade of Berlin is not necessary - cutting rail and road links as well as electricity
• Breakdown of Moscow talks

• Nov-Dec 1947
• The chances of reaching any agreement here were remote because the USA supported the idea of Western EUR intergration.
• The USSR did not want to divide DEU because Ruhr would become part of the Western bloc
• The conference ended 15/12/47. One third of delegates (out of 2225) sent from the west, but they were communist so did not reflect west.DEU opinion. BR foreign secretary refused them from entering London. 

• The failure of the London Conference strengthened Western desire to make a new West DEU state
• The purpose of the second London Conference Feb-June 1948 was to discuss the establishment of a new West DEU state. It was attended by BR, FRA, US and Benelux states
• The French opposed US and BR plans for a West DEU state because they dreaded the revival of a DEU that could potentially invade FRA again
• The US eased these fears by promising to keep troops in W.EUR to keep the peace. BR and US also promised to control the DEU gvt tightly -> the INT Ruhr Authority was to be controlled by Western Allies. West DEU must accept occupation stature to give the western powers control over relations, economy and disarmament
• On 20/06/48 the west introuced the Deutschmark