All German civilian government authority was declared to be in the hands the Allied Powers (US, USSR, UK and France) who set up the Allied Control Council. This council issued laws and directives, but it was still up to the military governors of the zones controlled by the four powers to implement them if they wished. This covered denazification of street signs, repeal of Nazi laws and the more mundane supply of basic utilities.

The Berlin declaration stated:

"The Governments of the United States of America, the Union of Soviet Socialist Republics and the United Kingdom, and the Provisional Government of the French Republic, hereby assume supreme authority with respect to Germany, including all the powers possessed by the German Government, the High Command and any state, municipal, or local government or authority. The assumption, for the purposes stated above, of the said authority and powers does not effect the annexation of Germany. [US Department of State, Treaties and Other International Acts Series, No. 1520.]"

Eventually cooperation broke down by 1948 as the Western Allies began economic integration of their zones without consulting the Soviets.