HC Deb 24 March 1948 vol 448 cc2995-6
24. Sir Patrick Hannon

asked the Secretary of State for Foreign Affairs if he will make a statement on the constitution and functions of the reorganised German administration established in Frankfurt; what are the powers and limitations of the economic council and labour directorate operating under the new scheme; how far is currency reform contemplated; and what are the dollar drawings involved.

Mr. Bevin

The Constitution and functions of the reorganised German Administration in Frankfurt, and the powers and limitations of the Economic Council, are set out in British Military Government Ordinance No. 126, a copy of which I will place in the Library. There is as yet no bizonal labour directorate, but it has been agreed in principle that one shall be established. Its organisation and powers are now under consideration. As to the last two parts of the Question, a quadripartite plan for currency reform has for some time been under discussion in Berlin. I am not sure to what the hon. Member is referring in the last part of the Question, but I can assure him that no dollar drawings are involved in any of the arrangements I have described.

Sir P. Hannon

Is the right hon. Gentleman now satisfied that this new organised instrument of government in Germany will tend to the promotion of better relations throughout Germany, both in regard to the administration and the German people themselves?

Mr. Bevin

I think so.

Viscount Hinchingbrooke

Why was the new currency for Western Germany not introduced immediately after the breakdown of the London Conference, and does the right hon. Gentleman not realise that, as long as the currency is not introduced into Western Germany, conditions of commercial chaos will persist?

Mr. Bevin

I recognise our difficulty over currency reform, but we have already been discussing this question of currency reform on the Quadripartite Council. It was deemed unwise, I think very wisely, not to break off these talks simply because the Conference in London broke down. There are difficulties, but the discussions are going on and we do not regard the breakdown in London as inevitably final yet.

Mr. Sharp

Is it proposed that there should be any time limit to the quadripartite discussions on Germany?

Mr. Bevin

Yes.