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The Development of Bizonia

In 1947, Britain and the United States combined their zones in Germany to form Bizonia. This was a direct violation of Potsdam and angered the Soviet Union.

Clashes between the East and West before 1947

Clashes between the East and West before 1947

  • Zones occupied by the British, French and United States were run as capitalist economies.
  • Free trade was used to stimulate economic growth.
  • But the Soviet sector was run along communist lines.
  • Stalin and his government confiscated produced goods in Germany for the Soviet Union.
Economic problems

Economic problems

  • The harsh winter of 1946/1947 led to shortages in Germany.
    • Zones had to introduce rationing.
  • Food imports were costing on average $700 million per year.
  • It became apparent that the zones needed to cooperate.
Creation of Bizonia

Creation of Bizonia

  • In 1946, The US Secretary of State James Byrnes said 'the US has formally announced its intention to unify the economy of its zone with any or all other zones'.
  • Bizonia unified the British and American zones economically.
Creation of Trizonia

Creation of Trizonia

  • In April 1946, France joined Bizonia to form Trizonia.

The Development of the Soviet Zone

The Soviet Union was also developing communism in its zone.

Walter Ulbricht

Walter Ulbricht

  • Walter Ulbricht was a member of the Communist Party.
  • In April 1945, Ulbricht and the communists came to Berlin.
  • He began to rebuild the German Communist Party along Stalinist lines.
Permitting political parties

Permitting political parties

  • In June 1945, the Soviet Union permitted political parties in their zone.
  • The Communist Party (KPD) and the Social Democratic Party (SPD) were established.
  • In 1946, these two parties were forced to merge. They became the Socialist Unity Party (SED).
SED control

SED control

  • The SED took control over areas such as education and administration.
  • Opposition parties, such as the Christian Democratic Union (CDU), were absorbed into the National Front for Democratic Germany.
    • The National Front for Democratic Germany was controlled by the SED.
  • The guise of democracy was dropped by 1948 and the SED declared itself a ‘Party of a New Type’ in the image of Marxist-Leninism.
Reparations to the Soviets

Reparations to the Soviets

  • Edward Smith (1967): "The extent of these reparations exceeded 25 per cent of the GDR's total industrial production...direct occupation costs in the Soviet zone were one third higher than the comparable costs in the three Western zones."
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