PROJECT 32.488, POSTWAR INDUSTRIAL INVESTMENT IN EAST GERMANY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP62S00231A000100120056-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 9, 2016
• Document Release Date: October 26, 1998
• Sequence Number: 56
• Publication Date: August 25, 1959
• Content Type: MEMO

Approved For Release 2000/08/23 ? DP62S00231A.000100120056-0
Chief
Drareh
Chief, Industrial Divieiov, ORR
Project 32)e38
25 Au 4 )t 1959
1. This project not enly develops an 1flVeStflt ierie or
the GDR during 1950-55, bet also interprets the aaigned role of
the major breathes ef ,he indestrial sector. The farmer seal is
achieved with great skill and requires no eammeet. The treattene
of investment in the branthes of the Industrial sector is gent rail,
uccessfhl, but is neceseerile abbreviated in a report of thi: scope.
In particular, the discussion of develoements during the Seeded ri-we
year plan varies in gealite and depth and needs to be meeethee out.
Rather than expand the paver to include discussion in greater deta!1
of the branches 3f Industry, it is suggested that these subeeets bt
discussed in a more analytic and purely economic see in %era of
the decisions Ia?tt in the investment program, as suegesta belew.
2. The validity of the majer interpretation of the papa;', that
emphasis on the basic eetel induetries was subordinated after 1953,
la *Totted by eeelie eei0ence. The project teede to accepts however,
the GDR propaganda line that the or object of this shift wes to
improve consumer welfare, with a subeidiary accent an fuels e
power. It should toll stressed, at; indicated by the data in tAha
project, that publicity to the contrary notwithstanding, the
eheolute increases in coneumer oriented Lavestment were dwarf
by allocations to the fuel end power industries.
3. )iention is made tf the ehift from metal to labor inteniie
industry, but it is confieed to the machine building branches - In
broader context it appeers that the GDR has maneuvered te re ce
the need for inveateent in the cepital intensive materials tr1 tree_
as well, a fact that should be developed and emphasised..
4. In this eonnectitn it would be eoed to show the shit en
Soviet policy during the becond Five Year Plan free exploitate.oe
to support of the CDR ecoLoze. Ikte could be made of the lou s,
trade sareomata, and in particular, the Soviet underwriting )r
the GDR materials deficit. The affect of the plaened oil pipe.
lime to lestern Europe on requirements for investment in the
brown coal industry shoule be considered.
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5. of tiles* sui. -
treatment of the a &cation of limo_
such economic ter as relative advantage, rap
end bloc syeelalisation. This should not be itsrpreted. as
requiring e search for additional date, but an tate ratin6 acl
interpreting of the data uow presented.
6. Consideration should taco be givento pbic e Ation
the trend in iota iniOustment Ota LUVNIUMM bran2hea
oC industry. To meet Office regulations some kind of dollar
equivalent for the WE murit "Ak shown, albeit with reservation?
if desired.
industrial Inve6ts n
7. I subscribe to ynur own ccenta
of
25X1A9a Poolfle suggOltions? vhich 1 shall be hay dtsci.0 wi'..; jou
.n.-.1
MOM
it your conwnienoe.
25X1A9a
Attachment
Distribution:
Orig. and 1 :_addressee
1 25X1A9a
1 - D I Chrono
25X1A9a
oRR:10111111118,18/4o58 (24 August 1959)
Approved For Release 2000/08/23 : CfA2RDP62S00231A000100120056-0
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