Bizonia & Currency reform

By 1947, the USA & Britain were keen to establish…

a degree of economic recovery in their zones

The British were absorbing huge numbers of…

German refugees expelled by the Poles & the Czechs

There was a continuing dispute with the USSR over…

the scale of reparations that it could demand from Western zones

The Soviet Union systematically removed…

industrial plants & other recourses from Germany in order to restore its own industrial recovery

Reparations were agreed but the USSR…

wanted more reparations than the other allies could accept

what did General Clay announce in May 1946

no further reparations to the USSR would be allowed until there was an overall plan agreed for Germany’s economic recovery

what happened in January 1947

the British & American zones merged economically into Bizonia

Bizonia was an indicator that…

the four-power control of Germany had failed

Bizonia along with the Marshall Plan was a fundamental factor in the…

development of a divided Germany

what did the USSR demand at the Moscow conference

for a new central administration to be created

what did the USSR accuse the west of doing at the London conference

unjustly denying reparations it was due

what happened in June 1948

Britain, France, the USA & the Benelux states met in London & decided to introduce a new currency into the Western zones of Germany

who were the Benelux states

Belgium, the Netherlands & Luxembourg

what did the Deutschmark do

representing the beginning of the formation of a separate & distinct West German state

what happened June 7 1948

at the London conference it was agreed that West Germany would have a formal constitution