Conflict over Germany -> Bizonia and currency reform

Question 1

what events signalled the breakdown?

Answer 1

• Paris Peace Conference of Foreign Ministers (April-July 1946)
• Bizonia created (Jan 1947)
• Moscow Conference of Foreign Ministers (Spring 1947)
• London Conference (Autumn 1947)

Question 2

what happened at the Paris Peace Conference of Foreign Ministers (April-July 1946)

Answer 2

• The USSR insisted that Germany provided it with $10bn in reparations
• James F Byrnes, the US Secretary of State, insisted that this could occur, but only when Germany was back on its feet and had a trade surplus

Question 3

What issues were slowing the economic recovery of the British and American zones?

Answer 3

• British absorbing many German refugees expelled by Poles and Czechs
• USSR systematically removed industrial plants to restore its own recovery

Question 4

what unfolding of events led Stalin to believe that the American strategy was to create a capitalist system?

Answer 4

• Summer 1945: Kennan was clear that the USA must develop a degree of independence and economic stability in its zone of Germany to resist influence from the communist bloc
• Spring 1946: British feared that a revived Germany would cooperate with or be dominated by the USSR
• May 1946: General Lucius Clay, as military governor of the US zone, announced that no further reparations would be allowed until there was an overall plan agreed for Germany’s economic recovery

Question 5

When was Bizonia created?

Answer 5

January 1947

Question 6

what was Bizonia and its significance?

Answer 6

• British and American zones merged economically, creating Bizonia
• US believed this complied with Potsdam Agreement
• Indicated that the four-power control failed
• Bizonia along with the Marshall Plan was a fundamental factor in the development of a divided Germany

Question 7

what happened at the Moscow Conference of Foreign Ministers (Spring 1947)?

Answer 7

• The Soviets tried to destroy Bizonia by demanding that a new central German government be created
• This was opposed by Ernest Bevin, the British Foreign Secretary - clever manoeuvring (political unity to follow economic unity)
• Soviets disagreed - this was seen as a ‘successive failure’ by the USA and the UK

Question 8

what happened at the London Conference (Autumn 1947)

Answer 8

All the issues were aired, and bitterly divisions were revealed

Question 9

When was the second London Conference?

Answer 9

February–June 1948

Question 10

Which countries met at the Second London Conference?

Answer 10

• Britain, France, US and Benelux states (Belgium, Netherlands and Luxembourg) met

Question 11

when was the Deutsche Mark introduced?

Answer 11

On 20 June 1948 - introduced Deutsche Mark to increase economic stability and to start formation of separate West German state

Question 12

When was it agreed that a constitution for West Germany should be created?

Answer 12

• June 1948 - agreed that West German constitution should be made
• Britain and US eager; France agreed despite its objections