Exchange Cooperation of East-West Germany
		Development of the Basic Treaty between East-West Germany
		Collapse of East Germany and the Free Choice

Exchange Cooperation of East-West Germany

The unification of East and West Germany was completed in October 3, 1990. The unification of Germany was not accomplished by armed force or coercion, but it was peaceful unification by national consensus of both Germany. Although East and West Germany were hostile to each other and both sides were not able to unify due to different ideologies, they could restore national homogeneity through constant exchanges and cooperation. While both Germany were expanding exchanges and cooperative relationship, they could draw peaceful unification fast by taking advantage of the blast of democratization and opening that swept over the whole Eastern Europe right then. The unification of East and West Germany was possible by the democratization and opening of East Germany. Because of the perestroika (re-construction) and the glasnost promoted by the secretary-general Gorbachev of the Soviet Union, communist countries in Eastern Europe became free from the Soviet Union and could choose the road to the liberalization and the democratization. As the strong wind of independence and democratization rose in Eastern Europe, 16 million people in East Germany set out to reform their society. Eventually, people in East Germany followed up the success in the democratization and decided themselves to be incorporated into West Germany. The unification of East and West Germany was characterized in that East Germany volunteered to be absorbed and unified into West Germany rather than that West Germany absorbed and merged East Germany. People in East Germany, who were pressed by poverty and oppression under the communist dictatorship, rode the waves of opening and volunteered to be incorporated into West Germany with freedom and prosperity. In the first place, Germany was divided into 4 regions and occupied by 4 victorious countries such as the U.S.A., England, France, and the Soviet Union after the surrender to the Allies on May 8, 1945. However, as the cold war between the Western bloc and the Soviet Union became intense after World War II, 3 powerful western countries including the U.S.A., England, and France unified occupied territories into one and established the Federal Republic of Germany on September 7, 1949. That was the West Germany. Then, the Soviet Union also established the East Germany, the German Democratic Republic, in the region under their occupation on October 7, 1949. Although it was divided and occupied as 4 regions, Germany was fortunate that the unification of the single economic bloc could be formed by the occupying nations. In the Potsdam Agreement continued from July 17 to August 2, 1945, the U.S.A., England, and the Soviet Union were agreed on the single economic bloc of 4 occupied regions of Germany and the security of equal life by distributing major products evenly. Then, each of 3 countries in the western bloc, the U.S.A., England, and France, concluded a treaty with the Soviet Union in 1946 on goods trades in the occupied area. Three countries in the western bloc unified their occupied regions into one economic and administrative division on January 1947. From the beginning, the occupying nations tried to form a single economic bloc in this way, even though Germany was divided into 4 regions. But the single economic bloc of the divided Germany was temporarily discontinued from June 24, 1948 to April 12, 1949 due to Berlin blockade by the Soviet Union. However, the economic exchange of the divided Germany was resumed and expanded day after day as the Federal Republic of Germany and the German Democratic Republic were formed in September and October of 1949, respectively. West Germany, after 31 days of the establishment, and East Germany, after one day, concluded the Frankfurt Agreement on October 8, 1949. This agreement was to support the goods trade systematically by setting up central banks from both Germany as a settlement institute of payment for the convenience of two regions.

From Frankfurt Agreement down, East and West Germany had concluded many agreements to activate the economic exchange until the unification was accomplished. The trade of both Germany was an unbalanced relationship in which the leading West Germany helped the lagging East Germany. First of all, West Germany suffered a loss in the exchange rate of currency with East Germany. The real buying value of West Germany's mark to East Germany's mark was 4:1 and West Germany's mark was higher. Nevertheless, West Germany applied the ratio of 1:1 in trading with East Germany. It turned out to West Germany's loss in 4 times. In trading, West Germany exported 4.5 billion dollars and imported 4.7 billion dollars with 0.2 billion dollars of trade deficit in 1988. Furthermore, West Germany granted hundreds million dollars of loan to East Germany with low interest rate. They granted West Germany's mark with no interest or only at an annual interest rate of 4%. Additionally, West Germany redeemed political offenders in East Germany by paying exorbitant amount of ransom. It was generally known that West Germany paid 35,000~70,000 dollars per one person; it was said that West Germany paid 1 billion dollars of ransom to East Germany to redeem 19,000 of political offenders between 1962 and 1982. Also, West Germany bore the road fee of their people traveling East Germany, by paying 350 million dollars to East Germany for 10 years. Because of these economic support policies of West Germany, the dependence of East Germany on West Germany was increased to 40%, but the dependence of West Germany on East Germany was only 10%. After all, the strong economic power of West Germany became the major driving force to absorb East Germany. In addition, exchanges in postal service, communication, and people between East and West Germany made people in East Germany to heighten the longing for West Germany. Freedom and prosperity played the role of a catalyst to inspire people in East Germany with West Germany. Though East and West Germany were divided on 1945, the irregular postal exchange was possible between two regions. Only for a while, this irregular postal exchange between East and West Germany was discontinued temporarily as East Germany built Berlin Wall on August 1961, but it was resumed shortly. From the beginning of the division, both regions had active postal exchanges to the extent that East Germany asked West Germany 1.8 billion marks of postal and communication fee from 1948 to 1968. Eventually, East and West Germany concluded a protocol on postal exchanges on September 1971 and greatly increased telephone circuits between both Germany, because telephone lines had been overly increased every year.

Development of the Basic Treaty between East-West Germany

East and West Germany signed the treaty on the basic principle of the relationship between the Federal Republic of Germany and the German Democratic Republic on November 8, 1972. This treaty decided to conclude an agreement that not only supported efforts in the armament limitation and the armament reduction, but also promoted and improved exchanges in economy, sciences, technology, passage, and laws, and cooperation in postal service, telephone, public health, cultures, sports, and environmental protection.