U.S. Department of State

AIRGRAM
DEPARTMENT OF STATE
BERLIN A-230

TO: BONN
INFO: DEPARTMENT OF STATE
E.O. 11652: GDS
TAGS: PGOV, WB, GW
FROM: BERLIN

DATE: 10 OCT 73
SUBJECT: Establishment of Federal Offices in Berlin
REF: Berlin A-18

Summary: In seeking to put flesh on the Quadripartite Agreement's provision for the maintenance and development of ties between the Western Sectors of Berlin and the FRG, local leaders have found one of the most realistic and promising prospects is the establishment of new Federal offices and agencies in West Berlin. The Senat is in the process of refining a list of priority possibilities to present to the Federal Government. Although thought has been given to obtaining Allied and possibly even Soviet approval of a master list once it is agreed by the Senat and the FRG, in the Mission's view it would be far more desirable to proceed in a matter-of-fact way, considering each proposal on its own merits. Unless there is some clear infringement on reserved Allied rights, there would seem to be no reason not to pursue this legitimate avenue for contributing to the vitality of the city.
End Summary.

Enclosure:

Status of Current Efforts for the Establishment and Expansion of Federal Institutions in Berlin.

Ever since the Quadripartite Agreement was signed and long before it went into effect, West Berlin leaders in and out of the government sought ways to promote the city's viability over the long term. Many proposals have been floated, some designed to take advantage of the city's human resources to build new intellectual centers, some to make West Berlin an East-West trade center, and some to persuade European and international organizations to establish new offices in West Berlin. Attractive as these ideas appear, many of them set out in elaborate prospecti, a majority have turned out to be unrealistic or difficult to implement. There has been some progress, e.g., the decision to locate a WHO office in Berlin and the convening in the city of two or three international conferences under UN auspices. The obstacles, however, have been formidable: well-established agencies such as those of the EC in Brussels are reluctant to move or see new offices set up far from home base; East-West trade has a way of developing without new centers; and many institutions which are well suited for Berlin find their presence is competed for by other cities.

In these circumstances, one of the most promising prospects, which lies wholly within German hands to initiate has been to take advantage of the Quadripartite Agreement's provision for maintaining and developing ties between West Berlin and the FRG by establishing new Federal agencies and offices in West Berlin. In July, the Senat formulated a master list of possibilities, and Senator for Federal Affairs Stobbe indicated that he intended to prepare a letter for the Governing Mayor to send to Chancellor Brandt asking the latter's support for those which seemed to stand the best chance (see ref airgram). This letter has not been sent, and, in the meantime, the FRG has moved ahead with the decision to establish in Berlin the new Federal Office for Environment Protection. Although the Soviets have attempted to take advantage of this decision to assert an interpretation of the QA to which no Western party has at any time subscribed, i.e., that the Federal presence in the Western Sectors is to be reduced, the project is moving ahead; the routine documents providing Allied authorization have been prepared, and at this writing await only final French concurrence.

Taking up where Stobbe had left off, Head of Senat Chancellery Peter Herz on September 26 brought the Senat Liaison Officers up-to-date on the status of plans to bring Federal organizations to Berlin and to expand or increase the Federal contribution to some of the organizations already there (see enclosure). Herz said that in light of the recent developments concerning the Federal Environment Office, the Senat was rethinking the procedures to be followed in the future. Instead of Senator Stobbe's proposal, he thought it would be best to work out agreement with Bonn in advance on a master list of offices to be located in West Berlin and on the basis of this agreement to obtain Allied approval. At that stage, the Governing Mayor would write the Chancellor inviting the organizations in question to come to Berlin and, in accord with a prearranged script, Brandt would send a favorable reply. Herz remained concerned about Soviet reaction, however, and suggested two alternative courses of action: 1) after Bonn, the Senat and the Allies had reached agreement, but before the letters were made public, the Soviets would be informed that a decision had been made to bring the organizations to West Berlin; or, 2) when the favorable reply from Brandt was announced, the Allies would issue a statement that the Allies had been consulted in advance and that they welcomed the establishment of the organizations in Berlin.

The Mission does not find either of these procedures necessary or desirable. Both are likely to create unjustified alarm that the FRG and the Allies were consorting together to promote a "massive" expansion of Federal presence. The first proposal, in particular, would not only invite trouble from the Soviets but suggest they had some say in the Senat-FRG-Allied decision. In our view, we see considerable advantage in full consultation on a continuing basis with the Allies in Bonn and Berlin about future plans for Federal presence, but we would favor proceeding on a step-by-step basis, much as we have to date. A less dramatic and blunt approach than either of those suggested by Herz has the advantage of treating each proposal in a matter-of-fact manner and in accordance with established procedures. This would certainly be in keeping with both the letter and spirit of the Quadripartite Agreement's provisions on the development of ties.

Recommended Action: Herz has asked for our views, and unless the Embassy or Department have objections, we plan to use the approach suggested above.

KLEIN [DK initialed]