STATE CONTRACT COURTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000500810286-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 19, 2016
• Sequence Number: 286
• Content Type: REPORT

a Approved For Release 2006/09128 c CIA-R DP80-,00809A000500810286_2'
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`Phe state Contrast Cwt ?ts of the9khtlt .one GovsrnTant are n important part
_
of .the econo.ie;?plaeni setup, and eke the. binding element betwc.n econ nla
planning and the asootmtansy, for,the results. They work under the motto
Contract,dit?ip>rine jgandiseiplYne. <
The state CantOaot rcoui`C woiltt directly wilder "the Premier. with it:, lower
organs It ii"installed close to !ie"distriet councils and has uffic~? to
m,'3eeisions,.on contracts for ",,the variousziniearics. - The to ;:r contract
courtwork directly under. the governmmt and not. under the presidl:ntr, o?
the istrict eonneila or the respon:,ible ministerz.
?h presldentsor the cistrlst contract court, are ::elected by the ?r.rn.?.cr,
s,hil?: 'the he :c'.s, o: arbitration cot sissions must b,,.eaa:firned by the i,*trict
lcacr:;hip of- the S?+
Various peopleas inilsstrie fall under the general contract syote*, an' ?-r
rerntis?el to produce contrasts .in sesordanec with the plans laid before t`-:.1
wtthin 30 dcy:- of being adilsed. That is, a peopletJ rectory I.reeelve,; the
pl?.r tor the produetlmn of sos>rtbing, :and is now requitt] to close csntr etz
:pith th?, .,uppliara of raw materials, a well as with the roecivers of the
fiii,~hc.1 goods, in auoh, a manner as to insure the fulfillucnt of the plan in
t:re. Theo oortrnets nust be registered with :ne. rapproved ty the . trte
C471te uL Cplrt,
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S? Slaw po.obsr 195`2, sbW tlN states contract office wa reorganised, private
l dustrias are subJse .o raeegniss the conventional penalties for non-
falti"sisat. and sine 1)s dissolution of the Chamber of Industr' and
Ce^oerse in Jacnaty 1953; tits ?hole.private industrial setup has been brought
under the general Oontlsat system. There has been no relaxation under Tone
anti eoursa? ? althou^ she has been gewmns oed.
6. The -3s+ppt low for the Contract Court and contract system are:
a. The now order for th setting up and activity of the State Contract
Corms (Lw 51 of 1_'0x1 53) .
0. lb order for the piosedure of State Contract Courts (same law).
e. he order for the 3natallation of the general contract system for
poop3ess Industries' and those resembling them (Law 185 of 1 Dec 51).
d. The l to 5 regulationr for the carrying out of this order (Ministerial
Journal Mob .1952)
3. The rood producing industries have been placed under similar regulations,
of which the 6th regultllon of Ju%rl952 is the. most Important.
1. Contrasts must specify quantity, type, nature.-of goods, quality, delivery
date, and moat especially penalties, for example O.1 percent of tho--value?of
the goods for each day!sidelay in delivery. 0,05 percent of the value of the-
goods for each dayss dilivsrs-sn payment.
9. On the request or one party to a contract, the Contract Court considered the
case. It also enters the picture if one party has not made good on a penalty
or when doe party'does;Aot Wish to enter a binding contract, One of the
parties oust belong to,a';ministry. If both belong under the same ministry,
the court attached to 666t ministry makes the decisions.
10, The district Contract Courts have jurisdiction over all the industries in the
district with regard td,jthe closing and breach of contracts, and their
authority is unlimited except In the case of a basic question which must be
handled by the ContrastCourt of the DDR. For centrally led industries the
district court handles beaches of contract up to 10.000 DM and the closing
of contracts up to 100,000 K. Sums larger than this are considered basic
questions, but the hI9h Contract Court may delegate its authority to a
district court. In oases of breach, the location of the damaged party determines
which court shall handle the aaae.
11. Insofar as possible the contrast courts are to handle matters verbally and
through persuasion of the damaging party. Any agreement in the course of a
ease is not allowed to be in conflict with the economic interests of the DDR
or the fulfillment of. the plan, but should further these interests. If there
is no agreement Deetweon!.the parties the court gives a decision. The party
losing the case is-allowed an appeal from the district court to the Contrast
Court of the 1)011 within five days,
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12. Contract courts any punish heads of industries who nave breached contr?cz
discipline within up to a monthts confinement; anu may fine lnduztric~; unl::.:te
sums when theytave not fulfilled orders of the contract cur. within the
time allowed. For especially contumacious breaches of eontr+c?-. discipline,
the contract court may order penaltioe without linit. l.npri:;.wc,ent may be
allotted foz?`v0 r%=-pant of penhlties. prL. ?? -
13, :.caorping? po the order of l Jul 53. the contract courts r..ay order indu::triv::
which have not paid cuntrpp; mptaltisQ um4er Ski l,uuu tv du so; ana w1crsin ?
seven day,, this order has the force of a legal of cision.
1.. in the verbal processes a commission is set up c nsisting of a -:re: idenc, why
ir a taesnDer or the contract court and two members f rum iHdu.7 .i?1v J1411.~i tthose Involved.
The president of the state contract court attached to the council V the PutzCar.
district is 1?:1111 usterburg, a banker, born 25 Nuv 11. He l:: z viulont ..umber
of the .,ii ii, In 1945 he was in the Rathenow Chamber, then head u: the fiin:.nci l
section of the industrial section of the Brandenburg :aato ,;uvenitaent. Lnri,
Nat on .i
third clroctor of the Gerson note bank in BrandenburgY. t:ember of the
Front. Lives in Potsd::r.., kuhnersdorferstrasso.
16. His secretary is Mrs. Helga Lindenberg, a member of the Fi.J (r:^e Geri:ian Y,utn).
11. The president of the decision commission for food industries anc agriculture
is Heinz ;:.ilther, born 3Q.. Jan u5, a textile merchant by profession. ':he
president of the decision.n aomission for heavy industry, energy, water power,
machine construction, ehemiaals,, coal and transport 1:: i rnst }ter:iann, about
36 years old. He is a strot LJ:D man and has GIi connections. He is ass:c:te..
by Herbert Pasoheak, about 26 years old. The president of the aecisiorr
commission for light industry, the building Industry and similar matters is
Johannes Cuellaalz, about 32 years old, with only one arm. He is ass.-aced
by Heinz 2{itzschke, about 33 years old; he does not have the cunfiuencu of
his colleagues.
a 'o ed For ReleaSP.ann6/ng/28 ? ('IA-Rapp (1R().GannnrinnR'I(1*?Rp