Chapter 4: Bizonia & Currency Reform Flashcards
What did the USA and Britain want to happen regarding the economy in their zones?
By 1946, they were keen to establish a degree of economic recovery in their zones.
Why was there a need for economic recovery, in particular in the British zone?
The British were absorbing huge numbers of German refugees expelled by the Poles and the Czechs.
What dispute was continuing with the USSR, regarding money?
Continued dispute with the USSR over the scale of reparations that it could demand from the Western zones. The Soviets removed industrial plant an other resources from Germany to restore its own industrial recovery.
What did General Clay announce in May 1946?
That no further reparations to the USSR would be allowed until there was an overall plan agreed for Germany’s economic recovery. The USSR saw this as an Amrican strategy designed to create a German economy based on the Western Capitalist system.
When was Bizonia formed?
January 1947. British and American zones were merged economically into Bizonia.
What was Bizonia a clear indication of?
That the four-power control of Germany had failed. This, along with the Marshall Plan, was a fundamental factor in the development of a divided Germany.
What was the Soviet response to Bizonia?
They opposed it. USSR demanded that a new central administration should be created (which failed and no firm decisions on the future of Germany were reached).
What did the USSR accuse the West of during a conference in 1947?
Accused the West of unjustly denying it the reparations it was due, and the West feared that a centralised administration would lead to a Soviet-controlled Germany. The outcome of this conference was that the Western powers recognised a four power control of Germany would not work. Urgency to strengthen the economy of the Western zones of Germany and move towards the creation of a West German state that was aligned to the Western alliance.
Why was the decision taken to introduce a new currency (Deutsche Mark) into the Western zones of Germany?
To move these zones towards greater economic stability and represent the beginnings of the formation of a separate and distinct West German state. .
