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Foreign Affairs HOUSE OF COMMONS [MR. BEVIN.] Soviet Russia. However, Dr. Bramuglia, before relinquishing the Presidency of the Security Council, continued his efforts to try to solve the deadlock, and recently proposed that a Committee of seven financial and economic experts nominated by the six neutral members of the Security Council and by the Secretary- General of the United Nations should meet in Paris. These persons are not parties to the dispute.

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They have been given the very im- portant task of recommending to the President of the Security Council by 30th December the most equitable conditions for agreement amongst the occupying Powers relating to the introduction, cir- culation and continued use of a single currency for Berlin under adequate Four- Power supervision. They have also to deal with the question of import and export regulations in connection with the external trade of Berlin. An additional requirement was that they must take into account the Moscow directive of 30th August. But they must also take into consideration the events that have taken place in Berlin since that day which may affect the operation of any recommenda- tions they may make.

These studies are now proceeding. They are being carried out in close technical association with the experts of the Four Powers to the dispute. The recommenda- tions must be agreed between the Four Powers and with the experts of the Four Powers. If they do not reach decisions in conformity with the views of the tech- nicians of the Four Powers, the Com- mittee are asked to submit a detailed report of the proposal and of the disagree- ments to the President of the Security Council.

The three Western Powers considered this proposal, and they have agreed to accept it. The Soviet Government have intimated that they are prepared to co- operate with the Committee, and that is how far we have got up to the moment. I should like to take this opportunity of paying tribute to the unceasing effort for peace which has been made in this matter by Dr. Bramuglia and his neutral col- leagues on the Security Council.

At the same time it is necessary to point out to the House that the prospect of a satisfactory outcome has been seri- ously prejudiced by the actions of the

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Soviet authorities in Berlin in recent months. They have, in effect, split the city and prevented the legally elected city authorities from functioning through- out the city. Since June, and more par- ticularly since October when the problem of Berlin was referred to the Security Council, the Soviet authorities have taken successive steps to destroy the unified administration of Berlin. The process culminated on 30th November in the establishment of a self-appointed city council with Soviet support, which asserted that it had authority over the whole of Berlin. Meanwhile, the con- stitutionally elected City Council con- tinues to function in the Western zones. It must be clear to the House that the administrative division of the city will make it technically and psychologically much more difficult to devise a satisfac- tory scheme for the introduction of a single currency in Berlin, but our policy has not been changed.

We still hold to the position that if the blockade is withdrawn we are pre- pared for the introduction of a single currency provided that a satisfactory scheme can be worked out. We are seek- ing to get a straightforward understand- able arrangement which cannot be used to prejudice the interests and rights of any of the occupying Powers in Berlin or in the zones, and, in addition, if and when this is done, we have agreed with the Security Council, and indeed we agreed in Moscow, that we are ready for the Four Powers to meet to discuss the problems of Germany as a whole if it is so desired.

In addition to this information from Berlin, the latest development in Berlin has, of course, been the election to the City Council. These elections should have been held in October. When they were held, they were overdue. The pro- vision in the constitution which was approved by the four occupying Powers was quite clear, not only as to when they should take place, but how they should take place. We took the view that, notwithstanding the difficulties between the four occupying Powers, there was no reason at all why the City Coun- cil should not be allowed to hold its elections and carry on its business nor- mally. However, the Soviet authorities do not like these elections, and they have done their best to stop them. Apparently

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The Western Powers decided that the elections should be free and that every- body should have the right to vote and to express themselves of their own free will. We endeavoured to carry that out. Therefore, we saw no valid objection for postponement-

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which I thought was remarkably good. Whatever the cost to the Western Powers, we must maintain our position and ensure that the methods which have been used by the Soviet Government in connection with Berlin do not succeed. A solution of the problem may take time, but I am quite sure that once it is accepted by both sides that these problems should be settled by reason and not by force, whether in the form of blockade, civil strife or usurping the functions of government or in any other form, there will be a hope of a settle- ment between the four great Powers. However, I think we have to establish that principle by our action-Berlin is far more significant to the world than most people realise--and so are the steps that we take to feed it and keep it occupied.

Mr. Eden (Warwick and Leaming- ton): Surely, no reason for postpone- ment?

Mr. Bevin: I beg your pardon-no valid reason for postponement, more especially as the Soviet had been respon- sible for breaking up the Kommanda- tura and destroying the Four-Power machinery in Berlin step by step, and had thus made it plain that nothing we could do would alter the course they had made up their minds to follow. We therefore decided, when the matter was brought before us by the City Council, not to intervene but to allow it to take its course. It is well known that the Communists boycotted the election. There was a lot of propaganda and intimida- tion before the elections took place, but in spite of it there was a very strong poll-86.3 per cent.-

Mr. Gallacher (Fife, West): Tammany Hall.

Mr. Bevin: There was no interference on the part of the Western Powers. We have never had time to create a Tammany, and we do not know how to do it. We decided to give every pro- tection and to extend every facility so that all the people could vote without intimidation or interference. The Western Powers, can, I think, rightly claim that the results of the elections re- flect the views of the population of Berlin, a population which has had recent and direct experience of each of the four occupying Powers. Proper significance should be attached to the result of their vote.

In the meantime, the air lift con- tinues. It is a great accomplishment. We learn that it is to be stepped up with more planes from the United States of America. There have been difficulties with fog. Yesterday I received some figures to show that on a clear day more than 6,000 tons were carried into Berlin,

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In the Western Zones of Germany con- siderable progress has been made. I am glad to say that since I last reported to the House on currency reform, there has been a marked

improvement in the general development and output of indus- try and that conditions are improving daily. Steel output--I am always nervous of mentioning steel in this House--in Ger- many will, I understand, soon be running at the rate of about seven million tons a year, whereas some time ago it was well under four million tons. That is a great improvement. Coal production has reached about 325,000 tons a day. The output of manufactures in various direc-

tions has improved. On the political side, the discussions regarding a provi- sional constitution for Western Germany which are now taking place at Bonn, are proceeding satisfactorily. The Germans call it "The Basic Law " rather than " the constitution" because they do not want to create the idea that they are splitting Germany, and that is quite correct. The provisional constitution is nearly com- pleted. The Military governors have laid down for the guidance of the Germans certain agreed broad principles to observe, the fundamental point being that the out- come of their discussions should ensure the establishment of a decentralised and federal organisation. This provisional constitution in Germany is not a final one, and it is not designed to set the seal on a permanent division of Germany, but it is so constructed that, with suitable amend- ment at any time, the rest of Germany may be associated with it.