Page 42 - The Making of the German Post-war Economy

CONCEPTION AND COMMUNICATION 15

and British occupation zones, the deficiencies of the new structure
became apparent, among which were: the spatial separation of central
institutions in times of difficult conditions for transport and
communications, the absence of both a co-ordinating authority and
parliamentary control of the bizonal institutions, and, finally, the lack of
legal competence. The different constitutional circumstances in both
zones complicated the legislation procedure with the consequence that not
a single act recommended by an administrative council was put into
effect. However, the first institutional manifestation of the Bizone failed
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not only because of its structural shortcomings, but also due to the Anglo-
American antagonism regarding centralism versus federalism, aggravated
by south German suspicion and a lack of genuine commonality of interest
between the zones. Despite obvious deficiencies neither the British nor
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the Americans wanted to change the institutional structures of the Bizone
before the conference of the Foreign Ministers in Moscow between 10
March and 24 April 1947. After no agreement was reached there, the new
American Secretary of State George C. Marshall instructed the then
American Military Governor in Germany, General Lucius D. Clay, to push
for organisational improvements in the Bizone. As early as on 29 May the
two Military Governors Lucius D. Clay and Sir Brian Robertson –
German negotiating partners were not invited – signed the ‘Agreement for
37
Reorganisation of Bizonal Economic Agencies’ resulting in the creation
of the so-called ‘Wirtschaftsrat’ (Economic Council) which became effective
on 10 June 1947. In principle, the Economic Council consisted of three
organs concentrated in Frankfurt am Main: the Exekutivrat (Executive
Committee) as a second chamber with representatives of the eight Länder
in the Bizone, the Direktoren der Verwaltung (Executive Directors) as quasi-
ministers presiding over the five already existing administrations, and,
finally, the actual Wirtschaftsrat as first post-war parliament. In particular
38
the latter was granted legislative and budgetary competence to facilitate
the solution of pressing economic problems and the reconstruction of
economic life. On 25 June 1947, the 52 delegates elected in an indirect
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ballot of one delegate per 750,000 citizens by the Landtage (parliaments) of
the eight Länder in the Bizone gathered in Frankfurt am Main; on 9
40
August, the law for the reorganisation of the bizonal economic agencies
was passed. Soon afterwards, however, the constructional flaws of the
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Economic Council as a whole came to the fore requiring the
reorganisation of the bizonal administration. On 9 February 1948, the
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Frankfurter Statut defining the changes to the Economic Council came
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into effect. These were the renaming of the Executive Committee as
Länderrat, the creation of a Verwaltungsrat (Administrative Council) formed
by the Executive Directors and supervised by a chairman officially titled