Monday, Aug. 23, 1948

60 to 40

The wall of secrecy around the East-West talks in the Kremlin sprang a few small leaks last week.

In their first talks with Molotov and Stalin, the Western envoys had proposed: 1) immediate and unconditional lifting of the Berlin blockade; 2) recognition of Soviet money as exclusive currency in all of Berlin; 3) renewed discussions by the Council of Foreign Ministers on a peace treaty for Germany.

The Kremlin, rejecting this offer, made counterproposals: I) recognition of Soviet "paramount interest" in the administration of Berlin; 2) suspension of the provisional government set up by the Western Allies for Western Germany; 3) a Soviet voice in control of the Ruhr and withdrawal of all occupation forces as first steps toward a German treaty.

The West, rejecting these counterproposals, set out modified proposals which included new concessions on the "technical administration" of Berlin. And there the matter rested at week's end. It seemed possible that the Kremlin might, in turn, modify its counterproposals enough to bring both sides into the area of agreement. In Washington, the feeling was that the chances of agreement to hold a Foreign Ministers conference were 60 to 40.

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