Randall Newnham

"More Flies With Honey:
Positive Economic Linkage In German Ostpolitik From Bismarck To Kohl"

International Studies Quarterly 44:1 (March 2000)


Table 1.  Linkage in German-Russian and German-Soviet Relations

The following table summarizes the various cases of economic linkage in German-Russian and German-Soviet relations which were examined in this study.  The table first lists the year(s) in which each German linkage attempt took place.  It next classifies each attempt, using the four linkage types developed in the study.  Linkage can be positive (economic incentives) or negative (economic sanctions).  It can also be specific (linked to a single political objective) or general (designed to affect the entire bilateral relationship).  The instruments used in each attempt are also listed.  In the third column, the goals which Germany attempted to achieve in each case are summarized.  Finally, the cases are classified as to their overall success or failure and some details of the results of the cases are given.

Year(s)
Linkage Type
German Goal(s)
Results
ca. 
1850-1885
Positive General
Loans in Crimean and Turkish wars
***
Bonds for Russian Railroads
Russian Support of German Unification 
***
Alliance with Russia 
(Three Emperors' Treaty)
Successful
Both goals achieved
1885-1894
Negative general
Russian bonds barred from 
German market ("Lombardverbot")
***
Tariff War
 Preserve Russian alliance
***
Protect German settlers in Poland and the Baltics
Unsuccessful
Russia aligns with France
***
Russification of German minority proceeds
1905-1906
 Negative Specific
Loan embargo at time of 
1905 crisis in Russia
Russian support versus France at the Algeciras Conference 
Unsuccessful
Russia supports France,
after France offers large loan
ca. 
1921-1933
 Positive General
1921 Trade Accord
***
German renunciation of payment for property seized in 1917
***
1925 economic treaty
***
Creation of world's first government-backed export insurance for German-Russian trade (1926)
***
German credits despite huge debt to West
 
Russian support versus the "Versailles Order" and its supporters 
(i.e., Poland and the West)
Successful
Rappallo Agreement (1922)
***
Military cooperation (1922)
***
Military/Political cooperation continues to the end of the Weimar Period
1939-1941
 Positive Specific
Economic agreement August 19, 1939
Hitler-Stalin Pact
(August 23, 1939)
Successful
Economic cooperation is 
one reason for the pact
1945-1955
 Negative General
Economic Embargo
***
Refusal to enter into any economic talks
 Reunification and other secondary goals
Unsuccessful 
1955
 Positive Specific
Promise of trade and credits at 1955 Adenauer-Khruschev Summit
Release of German POWs
***
Soviet acceptance of German "reservations" on diplomatic ties (Germany states it does not recognize GDR or postwar borders of Germany)
 Successful
Largest Soviet concessions on "German Question" for years
1957-1958
Positive Specific
1958 Trade Agreement
***
Trade more than doubles in 3 years
 Return of German civilians left in USSR after WWII
***
German right to speak for Berlin
Successful
ca. 100,000 civilians are repatriated
***
Treaty valid for "DM area" so it applies to W. Berlin, thus accepting W. German role in city
1960
 Positive Specific
Renewal of Trade Agreement, 12/60
 Soviet de facto acceptance of German right to speak for Berlin
Successful
Dramatic German walkout from treaty signing helps force USSR to allow repeat of "DM area" clause during Berlin Crisis
1962-1963
 Negative General
Embargo of pipe for oil/gas pipelines
No clear objective re: USSR
***
Largely to placate USA
Unsuccessful
Hurts German-Soviet ties for rest of decade
1963
 Negative Specific
Wheat embargo
 Dismantling of Berlin Wall
Unsuccessful
Other suppliers stepped in
***
Helps persuade Germans to turn to positive sanctions
1964-1968
 Positive Specific
Minor incentives in trade and credit
(e.g., export credit guarantees allowed, 1965)
 De jure inclusion of Berlin in German-Soviet agreements
***
Progress on unification
Unsuccessful
Other Western countries offer more generous deals with fewer political preconditions
***
USSR lets trade deal with Germany lapse
1969-1974
 Positive General
First gas pipeline deal, backed by German government (2/70)
***
Numerous other tariff and credit concessions
***
1972 Economic Treaty
***
1973 Technical Cooperation Treaty
 General Progress on relations:
"improved atmosphere"
***
Soviet acceptance that FRG still seeks unification
***
Improved ties to GDR
***
Improved access to Berlin
Successful
Moscow Treaty calls German border "inviolable," not "unchangeable" (8/70)
***
USSR accepts "letter on German unity" from Germany
***
USSR forces GDR to improve ties to FRG
***
Berlin Four Power treaty 
***
Indirect result: 
better image for FRG in the East
1972
 Positive Specific
1972 Economic Treaty
De jure inclusion of Berlin in area of applicability of Treaty
Successful
USSR agrees to explicitly mention W. Berlin in a treaty with Germany for the first time (and also in 1973 technical cooperation treaty)
***
Continues to resist this for non-economic treaties
1974-1982
Positive General
Continues under Chancellor Schmidt
***
1978 25-year cooperative agreement to build interdependence
***
Similar goal for many gas pipeline deals
***
Generous credits
General progress of relations
***
"Improved Atmosphere"
***
Keeping Germany out of new US-Soviet hostility
Unsuccessful
Cold War revives after 1979, although largely due to non-German factors
1988-1990
Positive General
Soviet bond sales in Germany from 1987
***
Renewal of 1978 treaty (1/88)
***
3 billion DM loan (first large loan by a W. state) (10/88)
***
Joint Ventures
***
Food aid (1/90)
General progress of relations
***
gradually closer link to specific German goals
***
"Walk on Rhine" talk between Kohl and Gorbachev (7/89)implies link between economic aid and German unification
Successful
German-Soviet ties improve dramatically, leading to "Gorbymania" summit in Bonn (7/89)
***
FRG becomes more important to USSR than GDR
1990
Positive Specific
Deal between Kohl and Gorbachev includes support, housing for Soviet troops in GDR (7/90)
***
Upholding GDR economic links with USSR
***
Five billion DM credit set up in secret Moscow visit by top Kohl aide (total value reaches ca. 50 billion DM)
Soviet consent to Germany Unity
***
Germany can stay in NATO
***
Soviet troops out of GDR within four years
***
USSR agress to drop Four-Power rights
Successful
USSR agrees in principle to all German demands
1990
 Positive Specific
Kohl offers extra 10 billion DM in aid due to direct pressure from Gorbachev
Final Soviet agreement to actually sign 2+4 Treaty 
 Successful
Treaties signed 9/12/90
***
Germany reunified 10/3/90
1991
Positive Specific
German government sets up fund for WWII victims
***
agrees to export credit terms which violate OECD rules in generosity
***
new food aid
Ratification of treaties related to German unity by Supreme Soviet 
Successful
Treaties ratified 3-4/91
***
German willingness to give more aid falls sharply after the votes
1992
Positive Specific
Yeltsin-Kohl Summit (12-92)
***
550 million DM grant
***
Agreement to give 10 year grace period for billions in Soviet debt in trade with ex-GDR
Faster Russian troop pullout from ex-GDR (before next German elections)
***
Russian agreement to drop demand for compensation for military bases in ex-GDR (could have delayed pullout)
 Successful
Four month acceleration in troop withdrawal (to 8/94)
***
Demand for military base compensation dropped
 
For more details on cases contact author.
 
 
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