East and West Germany

Soon Germany became unfinished business for the USSR and the USA. and they both found it very difficult to agree on the future of the country.

·         Germany: Unfinished Business

o   Russia and America unable to decide future of Germany. There were four key issues that needed to be resolved.

§  Should a reunited Germany be part of the Soviet sphere of influence, American sphere of influence or neutral?

§  Should the reunited Germany have a capitalist or communist government?

§  Should a reunited Germany receive Marshall Aid?

§  Should troops from USA and USSR be allowed to remain in a united Germany?

Bizonia was also formed. British and American zones were essentially operating as one buy 1947. The relationship between Bizonia and the French Zones was also good and in some cases they were refereed to as Trizonia. Although Germany's Capital Berlin was deep within the Soviet Zone, it too divided into four regions, with the Eastern section under Soviet control.

·         East and West Germany:

o   In 1948 Allies began to develop a policy for Western Germany that was at odds with Russia’s plans.

o   First, Britain, France and the USA agreed to set up a German Assembly to create a German Constitution. They introduced a new currency – Deutschmark – the new currency of Trizonia.

o   Stalin had not been consulted, and believed they wanted to divide Germany permanently.

o   He opposed the division for the following reasons:

§  Reluctant to allow America to have further influence.

§  Did not want American troops stationed in Germany.

§  Realised that Germany’s most valuable economic resources were in the west, and feared they may be used to wage war.

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