ECONOMIC - CONSTRUCTION PLANNING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600140247-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: June 13, 2011
• Sequence Number: 247
• Publication Date: April 24, 1952
• Content Type: REPORT

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German Demo:ratic liepublic DATE OF
INFORMATION 1950
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SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
? Aldllt' AL S AN lall?PICU rTS
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Procurement of structural steel, wood, and cement offers the most
serious difficulties. Be'suse of these shortages, the target dates for certain
investment projects could not be met. The Ministry for Sconosic Affairs re-
peatedly confirmed the existecce of the bottlenecks and rat apparently avare
that the target dates could not be net. In the Altura, a more realistic approach
with regard to target "too would be advisable.
Poor quality clay pipes have to be used in place of cast-iron pipes.
Almost all projects use green wood. Cement, in particular, was in very short
supply during the report month. go blast-furnace s1as could be made available
by the Maxhe'tte in Vnterseileabora. The grata for ].n %vidual cement producers
was cut by O pwcaut. No one canforesee the conssgjacea of this action.
The 1 xhuette inteh*s to ship its blast-furnace. slag to'Q1rO[ cement factories
for the production of high-gri4e cement for export purposes.
Plrticularly important bottleae kn arose in the following prrserts:
wuenschendort apart rut project (50 na^r apartments), ire central
school, Alteabvug apartment project, 26videAt 20m factory, living quarters
for apprentidei in Alteaburg, TRW se-lnilding plant) is Altesbur ,
bnoboma 51at7 is Sch oelln, ummsethembernadorf gavmLl1, lomsburg land (or
rural) clinic, and apprentice workshop of the TM Leger (Federation of People-
Oid Sateryrisop of the Leather liftOry) in Reida.
In sours building, projects, the levering of costa is constantly stressed.
Put this problam is neglected for maay other prajecto. TrsaspoetatSon costs
constitute an exorbitant percentage of batliix-wstnrial costs, for essapie:
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CLASSIFICATION 84-4-!-l-+f
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Vuenschendorf apartment project
0reix-Schoenfeld vatervorks
Uoblsdorf central school
Vusnechendorf central school
Price increases resulted from the folloving factors.
a. ft e isclusiaa of the p$Z (oarssn Trade Center) fasting as a whole-
sales which chards an additional e moun Of t of light teas 7 6 building p board on used building
to materials. For example, one equer~e 2.91 Deutsche
2.34 Deutsche marks. The inclusion of the DO raised the Vice
marks, an increase of 17 percent.
b. Shipments of mtructurai steel is made in very small quantities as
ly,
it becomes available. The availablequantities must picked , i a rule,
a fact iiblch causes relatively high transportation charges,
the vehicles are not fully utilised.
pipes Tor taear'xuw + y--es
nearly all building projects. This shortage retards completion of sums build-
inge.
Cement supply is another problem causing some delays. Although the
Sreis construction office in Hildburghausen received a 5a r allocation
of 90 tons for the third quarter of 1950, it did not receive any actual ship-
ments.
Regarding the allocation of gypsum-slag cement, because of the rather
unfavorable ratio of 1 : 3 in ?sbich it is used (as against 1 : 5 for Portland
cement), a larger quantity is required. Since gypsum-slog cement is just as
expensive as Portlmzd cement, costs are increased. They Am s lsocincreased
because only abe'lutely clean gravel can be uses for gyps g
Structural steel is another item in short supply. For one project,
aim truck trips'alsre made before the shipment ass finally reads.
The allocation of building lumber vas also inadequate. The supply
of round timber causes sole difficulties because it had not been included in
the original plans. Some of the wood alloz&ted by the DAZ vas not serviceable.
Further difficult"es are caused by the question of jurisdiction. The tonal
enterpriaom do not tali cinder the Ereis eonstrrctien-offica jurisdiction; many
supply complications arise from that factor.
Another nobles to allocation is the determination of the relative
importance of the various projects.
Transportation costs can be lowered only if the required materials
are procured from the nearest source of supply. Brickworks one (asp, 200pOOO bricks
overstocked),
although shipped to ksis Buhl by the Oeprocm from brickvoibs in or near the
althoughh the he bricks could have bean procured Erais.
Increases in transportation caste in gals Hildburglwuesn are largely
the vault of the +ileeantling of the narrow-gauge railroad. a.buildiLg of this
railroad .s in the planning stage. 3 u lack of this line csmses 30-40 percent
increase in transportation costs.
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F-E-CR-H-P
Sanitized Copy Approved for Release 2011/06/14: CIA-RDP80-00809A000600140247-3
 No instances of illegal use of materials were found. Only insignifi-
cant allocations were made from the emergency pool of building materials (10
percent of the quota), which are available to.the 1S"reis construction offices.,
labor Shortages in Erases Bad Selzungen
1Creis Bad Selzungen r*quires many workers, particularly expert
construction workers. The potash industry +rith its higher wages (1.30-1,80
Deutsche narks for ordinary workers) attracts many workers from the building
industry, because an ordinary construction worker receives an av a of only
0.86 Deutsche marks an hour despite the often undesirable nature of the work.
A maid in Bad Salzungen receives one Deutsche mark an hours The fact that
the SAGa (Soviet Corporations) have first call on the available construction
workers causes additional labor-supply difficulties.
in addition, some investment projects are located in places which
are incapable of handling them with the labor fore* available in the area.
only 275 tons of the requested 600 tons of cement were allocated. Of
the 275 tons, only 105 tons are available for use, although a permit for the
entire amount vas granted by the ministry on 1 J\me 1950. Five telephone calls
finally resulted in the issuance of the permit by the DHZ in Erfurt. Transpor-
tation difficulties will delay delivery another 3-4 peeks (total delay in de-
livery: 3 months).
The building industry encountered difficulties in producing hydraulic
mortar. Also, orders for certain types of lumber wary placed with enterprises
which were not equipped to handle the requirements. The shortage of pit and
scaffold timber increases construction costs by necessitating repeated as-
sembling tnnddisuantling of the available timber.
Allocation of heating equipment in practically nonexistent. Of a
requested 10 tons of pipe, 200 kilograms were authorized. Shortages of lead
pipe, cast pipe, cnd stoneware pipe muke the completion of various investment
projects questionable. The Nordhausen construction office received only 10
percent of its stated requirements of these items.
Compared with the requirements, the allocations for the fourth quarter
1950 contain only insignificant amounts of nails, sheet, materials for elec-
trical installations, etc.
Sand is delivered without being prepared for use; the sifting, etc,
causes additional expense.
Favorable transportation facilities are not always utilized. The DH?
in Ehfurt cannot be convinced that it should change its distribution system.
Brickworks in the town of Nordhausen chip their products to other Kre.ise,?suile
users in the town receive their bricks from enterprises located in Kreis Nord-
hauu+en or other lcreise.
risn'nli.ng of the supply problem is frequently unsystematic. A person
connected with Mo?:3uausen construction office cow&*Uted;
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"'materials are not received when needed; building can only be done
when matecials are available. Thus, sly kind of construction planning is im-
possible. No real progress in investment building is possible without material
reserves for at least 3 months."
In general, material supply for Kreis M ehlbwusen has been adequate,
with the exception of one project, 30 new apartments in M *hlbausen where
floor boards, nails and plumbing fixtures are lacking. As a result the un-
availability of floor board, the doors .cannot be hung, painting cannot be done,
and electrical wiring cannot be installed.
Material from his Langensalza vas diverted as a result of the
weather disaster of 23 May 1950. Work is being resumed just as fast as ma-
terials can be procured.
Contrary to past experience, allocation and delivery of goods by the
DUZ was, in general, adequate. Only in one case were the transportation costs`
unnecessarily high (100 Deutsche marks per 1,000 bricks, instead of 30-35
Deutsche maarks), as a result of using inappropriate means of transportation.
The only instances were illegal use of materials was found were build-
ings which were started in 1949.
During the last few months, the supply situation has improved. Cement
supply for investment projects is adequate now. There are still some cases
where the quantity allocated could not be delivered.
Supply of building lumber constitutes a serious bottleneck. Sufficient
lumber should be available for investment projects. the procurment of iron
girders is still very difficult,
The use of materials available nearest the project has been improved.
Only Unterwellenborn seems to violate this principle. For the building proj-
ect there, bricks were brought in some distance, while local brickworks shipped
their output by rail.
No instance was observed in this district where materials were set
aside for use on illegal projects.
Sanitized Copy Approved for Release 2011/06/14: CIA-RDP8O-00809AO00600140247-3
Sanitized Copy Approved for Release 2011/06/14: CIA-RDP8O-00809AO00600140247-3