West Germany: Banking on Friendship

It was a deal that could have been made only in the political otherworld of the two Germanys: deutsche marks in exchange for closer ties between people. The government of West German Chancellor Helmut Kohl last week approved backing for a private bank loan of more than $330 million to East Germany, the second time in two years that Bonn has guaranteed such a deal. In the language of diplomacy, the loan carried no conditions. But in the world of Realpolitik there were clear requirements, and it came as no surprise when...

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