GDR-FRG Economic Relations: Determinants, Trends and Problems

Abstract

Representatives of the two German states signed the so-called Berlin Agreement in 1951 in order to provide a contractual basis for trade between the German Democratic Republic and the Federal Republic of Germany. The foundations in terms of international law for reciprocal economic relations were developed further in 1972 by the Treaty on Basic Principles of Relations between the German Democratic Republic and the Federal Republic of Germany. Important commitments of both governments are laid down in that Treaty, including the following clause in Article 7: ‘The German Democratic Republic and the Federal Republic of Germany shall conclude conventions on the basis of this Treaty for the purpose of developing and promoting for reciprocal benefit cooperation in the fields of economy, science and technology, transport, legal affairs, post and telecommunication, health, culture, sport, protection of the environment, and other areas. Details are formulated in the Supplemental Protocol to this Treaty’.¹