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The Berlin Blockade accelerated the setting up of a separate government in the Western zones.

The most serious divergence existed in the US zone and the Russian zone, and consequently frictions developed between them.

The problem of reparations was the focus of dispute.

The endless requirement of reparation made by the Russians looked certain to retard the economic plans of the Western Allies, so General Clay, the Commander of the American zone, made efforts to search for a mutual understanding with the Russians on the reparation issue.

An agreement was reached in March 1946 on an industrial plan, but the Americans withdrew from it after a month because of Russia's insincerity.

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