Status of Berlin, May-December 1960 625



begin with, having just been restored to his position after a leave of ab-
sence which extended more than a year, he felt that it would be a dis-
courtesy to the French Government for him to leave shortly thereafter.
Moreover, he was aware that his arrival in Washington might be greeted
by some criticism, particularly from certain elements of the press.
    With reference to the Interzonal Trade talks which were going on in
Berlin, Ambassador Grewe said he had taken the position in Bonn that
the Federal Government should insist on formal revocation of the of-
fending GDR decrees before renewing the Trade Agreement. Anything
less than this, he felt would be insufficient in view of the unfortunate
psychological impression which retention of the decrees would create,
despite any tacit understanding which might be reached that they
would not be executed. Mr. Hillenbrand observed that our experience
over the past ten years in Berlin had more than once involved tacit un-
derstandings with the Soviets that they would not carry out threatened
actions or stated policies. The whole Western position in Berlin, apart
from the firm legal foundations on which it rested, was based upon such
mutual acquiescence in certain limitations beyond which each side
knew it could not go. We had expressed our views on the Trade Agree-
ment discussions in some detail to the Federal authorities, and were en-
couraged by the recent developments reported by Leopold. As Foreign
Minister von Brentano had said earlier in the afternoon, the West
seemed to be stronger than it had suspected in its ability to deter and to
achieve desired results by the imposition of or even threat of economic
countermeasures. 1
    Referring to the discussions of December 15 between Secretary An-
derson, Under Secretary Dillon, Assistant Secretary Irwin and Ambas-
sador Dowling with Economic Minister Erhard and State Secretary von
Scherpenberg, Ambassador Grewe said that he had the impression that
while this discussion had not advanced things very far in the concrete it
had brought the two sides a little closer together in principle. Mr. Hil-
lenbrand noted that discussions would presumably continue both in
Bonn and Washington in the forthcoming weeks, but that he was not
aware precisely what the next contemplated action would be. This was
undoubtedly something to which Under Secretary Dillon was giving his
thought. Ambassador Grewe said he hoped that something specific
could be achieved in the way of an agreement on debt repayment
and vested assets prior to January 20. He felt this was desirable for
psychological reasons, and explained that this would avert the criticism
and the generally unfavorable American attitude towards German


    1 A memorandum of Hillenbrand's conversation with Brentano at 4 p.m.
(US/
MC/16) is in Department of State, Conference Files: Lot 64 D 559, CF 1802.