Bizonia

When was Bizonia created?

January 1947

What was the motivation for Bizonia?

By 1946, the USA & Britain wanted economic recovery in their zones.
The British absorbed a large number of German refugees expelled by the Poles/Czechs.

Problems with the USSR

The USSR removed industrial plant & other resources from Germany in order to restore its own industrial recovery

USA’s actions

In May 1946, Clay announced that no further reparations to the USSR’s economic recovery.

USSR’s reaction

The USSR saw this as an American strategy designed to create a German economy based on Western Capitalism.

Creation of Bizonia

In Jan 1947, the British & American zones merged economically into Bizonia.

American Justification of Bizonia

The Americans argued that it followed the Potsdam agreement but it also showed that the 4-power control system in Germany had failed

Soviet’s response

The Council of Ministers (the Allies + China) met at the Moscow conference held during March & April of 1947

USSR’s demands

The USSR demanded a new central administration to be created, this Soviet attempt failed and no firm decisions over Germany were reached.