The Origins of the Cold War, c1945–1949: Conflict Over Germany - Bizonia & Currency Reform

Question 1

Timeline for creation of Bizonia and currency reform

Answer 1

• May 1946
- Clay announces no further reparations would be made to USSR until economic plan made

• January 1947
- Bizonia formed

• March–April 1947

• Moscow Conference
• USSR calls for new central administration

• November–December 1947

• First London Conference
• USSR accuses West of not granting sufficient reparations

• February–June 1948
- Second London Conference

• June 1948
- Creation of West German constitution agreed on

• 20 June 1948
- Deutsch Mark introduced

Question 2

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

Answer 2

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

Question 3

How did General Clay respond to the Soviet’s increased gain of reparations?

Answer 3

• May 1946
• Clay announced that no further reparations to the USSR would be allowed
• Until an overall plan was agreed for Germany’s economic recovery
• USSR saw this as a way to create a Western capitalist German economy

Question 4

When did Clay announce that no reparations would be made to the USSR until an economic plan for Germany was agreed on?

Answer 4

• May 1946

Question 5

Bizonia

Answer 5

• January 1947
• British and American zones merged economically, creating Bizonia
• US believed this complied with Potsdam Agreement
• Indicated four-power control failed

Question 6

When was Bizonia created?

Answer 6

• January 1947

Question 7

Moscow Conference

Answer 7

• March–April 1947
• Council of Ministers, consisting of Britain, US, France, China and USSR
• Soviets demanded a new central administration should be created in response to Bizonia
• This failed
• No firm decisions of Germany’s future reached

Question 8

When was the Moscow Conference?

Answer 8

• March–April 1947

Question 9

Which countries made up the Council of Ministers?

Answer 9

• Britain
• US
• France
• China
• USSR

Question 10

First London Conference

Answer 10

• November–December 1947
• Failure
• USSR accused West of unjustly denying reparations
• West feared a centralised administration would lead to a Soviet-controlled Germany
• West urgently wanted to strengthen Western zones’ economies and to create a West German state

Question 11

When did the first London Conference occur?

Answer 11

• November–December 1947

Question 12

Second London Conference

Answer 12

• February–June 1948
• Britain, France, US and Benelux states (Belgium, Netherlands and Luxembourg) met

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

• Constitution

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

Question 13

When was the second London Conference?

Answer 13

• February–June 1948

Question 14

Which countries met at the Second London Conference?

Answer 14

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

Question 15

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

Answer 15

• June 1948

- At second London Conference

Question 16

When was the Deutsch Mark introduced?

Answer 16

• 20 June 1948