HSTY 219 Week 9

Unconditional Surrender of Germany: May 7 (Reims), May 8 (Berlin) 1945.
Potsdam Agreement: Signed on August 1, 1945, establishing post-war management of Germany.
Military Government: Led to total cessation of political life in Germany; all administration was managed by military governments.
- United States Military Government: Administrative operations handled by the Office of the Military Government of the United States (OMGUS).
- Key Figure: General Lucius Clay.

Allied Control Council: Governed all of Germany collectively. Historical highlights:
- Soviets withdrawal from the council on March 20, 1948.
- Final meeting held on October 2, 1990.
Allied Kommandatura in Berlin: The governing body specific to Berlin.
- Soviet withdrawal in June 1948; Western powers resumed governance in November 1948.
Special Rights of Western Allies: Under the Potsdam Agreement, the Western Allies held special rights in all of Berlin until 1994.

Political Parties Emergence: The Soviet Union allowed the licensing and formation of political parties in their controlled zones:
- Socialist Unity Party (Sozialistische Einheitspartei or SED): Dominant party formed from merger of SPD and KPD factions.
- Key Figures:
  - Otto Grotewohl (SPD)
  - Wilhelm Pieck and Walter Ulbricht (KPD)
- Christian Democratic Union (CDU):
- Free Democratic Party (FDP).
Opposition: SED faced opposition from the West SPD led by Kurt Schumacher.

The division of Germany's post-war administration into various states (Länder).
This included the amalgamation of the American and British zones, referred to as “Bizonia” in 1947, establishing a common economic administration.
Economic Governance: Established through the Economic Council (Wirtschaftsrat).

Timeline: February to June 1948.
Objective: Called for the formation of a West German government.
Currency Reform Discussion: Proposals were made for reforming the currency to stabilize the economy.

Economic Instability: The Reichsmark (RM) became so plentiful that it failed to function effectively as a trustworthy currency, leading to a barter economy where there was little incentive to trade for money.
Western Allies' Initiative: Despite seeking reform in collaboration with Soviets who refused, the Western Allies decided to proceed with the currency reform in the three western zones.
- On June 20, 1948, every German received 40 DM in exchange for 40 RM; an additional 20 DM was later given.
- Devaluation Rate: 6.5 RM was exchanged for 100 DM, resulting in a 15-fold devaluation.
- Post-reform, goods returned to shops, signifying economic stabilization and recovery.

Timeline: June 1948 to May 1949.
Significance in Cold War dynamics and the historical context surrounding the division of Berlin and its implications for East-West relations.

Federal Republic of Germany (West Germany): Established May 1949.
German Democratic Republic (East Germany): Established October 1949.
Emergence of the inner-German border, referred to as “Die Grenze”.
Population Movements: Significant population flight from the Soviet Zone to West Germany, highlighting demographic shifts and the influence of political regimes on migration patterns.

Comparative data on the inner-German border from 1950 and in 1962, illustrating the changing geopolitical boundaries and the implications for urban, social, and economic interactions between East and West.