Why didn't Adenauer and the western powers accept the 1952 soviet proposal?

[Simfan34]

I've always had the impression that the "neutral united Germany" this proposal would have created would have been akin to the outcome of a "Morgenthau Plan-lite": politically isolated, economically marginalised, and militarily impotent. The plan would have only worked if each side could be sure that the other did not have more influence over Germany than they, which would have precluded significant trade or political cooperation between Germany and either one of the two camps.  This Germany would have to be cut off from the Western and Eastern Blocs,  a kind of "enforced neutrality".

The result would have been a large buffer-cum-pariah state in the middle of Europe, which, at best, would be limited in its relations to those "non-aligned" countries deemed acceptable by both sides; its closest "partner" would have most likely been Yugoslavia. Living standards would probably be below those of the real-world DDR-- in short, the outcome would have probably been pretty bleak. I don't think the proposal, after some consideration, would have remained as attractive to the West Germans as it did at first.