68 STAT.] UNITED KINGDOM-ZONES IN GERMANY-,JUNE 30, 1949 2657 "At the time of this exchange of notes it was thought that, prior to June 30, a German Government would be in existence, that the Occupation Statute would be in operation, and that the Tripartite Agreement on Control Machinery, covering a substantial part of the field of Trizonal Fusion, would have come into force simul- taneously with the Occupation Statute, thus rendering unnecessary a further extension of the Bizonal Fusion Agreement. Since these arrangements have not yet matured, the Government of the United States believes that the most practical arrangement is the extension for a further period of three months of such parts of the present Fusion Agreement as have not already been replaced by other agree- ments or arrangements. "I therefore have the honor to submit the following proposals for the consideration of the Government of the United Kingdom: (A) The Fusion Agreement of December 2, 1946, as amended on p 61Stt., Pt. 3, p. 2475. December 17, 1947, and as further amended by the exchange ltat ,Pt.4, of notes of December 31, 1948 and March 81, 1949, shall, p2tat * Pt. 3. unless sooner terminated by mutual agreement or by the con- A.c p. 2630. elusion of a Trizonal Fusion Agreement, be extended until September 30, 1949 subject to the following amendments. (B) During the period for which the existing Fusion Agreement is extended, the Government of the United Kingdom will continue their contribution of supplies and services to Ger- many at the existing basic rate of 17-% million pounds per annum (approximately the equivalent of 70 million dollars). The type and value of specific categories of goods and serv- ices to be supplied by the Government of the United King- dom will be agreed upon in separate discussions between the United Kingdom and the Bizonal Area. Pending such agreement, the Government of the United Kingdom will supply appropriate quantities of the goods and services specified in the Annex to the Agreement of December 17, 1947, amending the Fusion Agreement. The Government Pestt., Pt. 4, of the United States will use its best endeavors to secure the full utilization by the Bizonal Area of the offer of sup- plies and services which the Government of the United Kingdom will make to fulfill its obligation under this pro- vision. If after the termination of the present agreement it should appear that the Government of the United King- dom has not fully spent or committed the amount of the contribution envisaged, the two Governments will consult together for the purpose of seeking an acceptable method of settling the balance. (C) Moneys made available by the Government of the United Kingdom for the supply of goods and services in accord- ance with paragraph (B) of the exchange of notes of March A ft p.-p . 81 last amending and extending the Revised.Fusion Agree- ment will, to the extent that they have not been fully spent
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