62 STAT.] UNITED KINGDOM-OCCUPATION ZONES, GERMANY-DEC. 31 , 1948 3647 and the Government of the United States of America on the subject of the extension of the Agreement between the two Governments concerning the British and American Zones of Occupation in Germany. "His Majesty's Government has had under consideration the ob- ligation assumed by the United States Government and His Maj- esty's Government in the United Kingdom under paragraph 11(b) of the revised Fusion Agreement signed at Washington on December 17, 1947, to consult together before December 1, 1948 to consider p.63l 1 tat Pt. the terms and conditions of a new agreement. "His Majesty's Government had hoped that it would be possible to replace the existing Fusion Agreement on January 1, 1949 by a new Agreement to which the French Government would be a party, providing for the economic fusion of the Three Western Zones of Occupation. It now seems clear, however, that until the new arrangements relating to Germany arising out of the six-power talks held last spring in London have matured, it would be desirable to extend the terms of the Bizonal Agreement, as amended, rather than attempt to negotiate a new agreement to include France. His Majesty's Government believe that extension of the agreement for a three-months' period with the understanding that it can sooner be terminated by mutual agreement, is a more practical arrange- ment in the circumstances than an attempt to conclude a Trizonal Fusion Agreement at this time. "In these circumstances, I have the honour to submit the following proposals for the consideration of the United States Government: "(A) The Fusion Agreement, as amended by the Agreement p.1tat.' Pt. - signed in Washington on December 17, 1947, shall be extended p636at. Pt. , 4 to March 31, 1949, unless sooner terminated by mutual agreement or by the conclusion of a Trizonal Fusion Agreement. The two Governments shall consult together before March 1, 1949, to consider the terms and conditions of a new agreement for a further period. "(B) During the period for which the existing Fusion Agree- ment is extended, His Majesty's Government will continue their contribution of supplies and services to Germany at the existing basic rate of 171/2 million pounds per annum (approximately the equivalent of 70 million dollars). "(C) Separate discussions will take place as to the nature of goods and services to be provided by His Majesty's Government for the first three months of 1949, if as a result of seasonal or other factors it proves impossible or difficuIt to supply precisely one-quarter of the quantities of the goods and services specified in the Annex to the Agreement of December 17, 1947, amending , stat.,P.4 the Fusion Agreement. "(D) As soon as possible the Joint Export-Import Agency shall enter into negotiations with representatives of His Majesty's Gov-
�
