UNUSUAL EAST GERMAN TRADE IN FERTILIZERS MAY HELP FINANCE PURCHASES OF WESTERN CHEMICAL PLANTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01003A002100140001-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 15
• Document Creation Date: November 16, 2016
• Document Release Date: April 27, 2000
• Sequence Number: 1
• Publication Date: October 1, 1964
• Content Type: BRIEF

Approved For Release 2000/06/01 : CIA-RD9T01003A002100140001-2
CIA/RR CB 64-68
October 1964
Copy No. 18C
UNUSUAL EAST GERMAN TRADE
IN FERTILIZERS MAY HELP FINANCE PURCHASES
OF WESTERN CHEMICAL PLANTS
DIRECTORATE OF INTELLIGENCE
Office of Research and Reports
GROUP 1
Excluded from automatic
-downgrading and
d cla sification
pproved For Release 2000106/01 : CF TT01003A00210014
 Approved For Release 2000/06/01 : CIA-RDP79TO1003AO02100140001-2
WARNING
This material contains information affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Secs. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
Approved For Release 2000/06/01 : CIA-RDP79TO1003AO02100140001-2
 Approved For Release 2000/06/01 : CIA-RDP79TO1003AO02100140001-2
S-E-C-R-E-T
UNUSUAL EAST GERMAN TRADE
IN FERTILIZERS MAY HELP FINANCE PURCHASES
OF WESTERN CHEMICAL PLANTS
Anomalous negotiations on trade in fertilizers are taking place
between East Germany and West Germany. Although East Germany
is a major producer and exporter of fertilizers, it is seeking per-
mits to import on an interzonal exchange of commodities 100, 000 tons*
of nitrogen fertilizers per year for the next 4 to 6 years from West
Germany; to double imports of phosphorus fertilizers; and, for the
first time, to import potassium fertilizers. During meetings on inter-
zonal trade between the two governments, extraordinary pressure has
been exerted by the East German negotiator for action on these re-
quests.
East Germany has exported approximately 100, 000 tons of nitro-
gen fertilizers and 1 million tons of potassium fertilizers per year
since 1959. The effort now to expand imports probably stems from
the increased demand for fertilizers within East Germany and in-
creased export commitments at a time when East German capacity
to produce fertilizers is not increasing rapidly enough. East Germany
may be hoping to earn more foreign exchange by exporting fertilizers
to the Free World and replacing domestic supplies through interzonal
barter trade.
1. Negotiations Concerning Imports of Fertilizers
A contract was signed in February 1964 between a West German
firm and an East German trade organization for delivery of nitrogen
fertilizers to East Germany. Under this contract, East Germany is
to receive 100, 000 tons of nitrogen fertilizers annually during 1964-67,
with an option for 100, 000 tons in both 1968 and 1969. The value of
such deliveries totals about $87. 5 million for the 4 years. ,