Blockade Aid for Berlin Companies

Following the record tonnage delivered by the Allies in February 1949, the success of the Berlin Airlift in supplying the people of West Berlin had become obvious even to those most doubtful. The winter famine the Soviets and East Berlin newspapers had predicted never came, thanks to the innovative flight operations management of personnel, cargo and aircraft. With the upcoming spring, new hope spread among the population. Even though from the very beginning the Allies had flown in the goods and merchandise that West Berlin’s businesses required, many companies had to partially or even completely cease production. In order to save them from insolvency and to avoid mass unemployment, the Berlin magistrate initiated various measures, including what was termed “blockade aid”. From April 1949 on, these interest-free, open-ended single-payment or long-term loans could be taken out by any West Berlin company to mitigate any financial hits caused by the blockade. The qualifying requirements were relatively easy to meet: The company had to be located in Berlin’s western sectors, it had to be essential for the city’s economic survival, and it had to provide proof that it suffered from additional costs (“blockade costs”) caused in particular by the disruption of the usual traffic routes between the western sectors and the areas beyond.

Many businesses in West Berlin would receive financial aid and thus be saved from having to close shop permanently. The economic survival of West Berlin was secured and the first of many exceptional regulations became an overwhelming success.