ECONOMIC - FOREIGN TRADE

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP80-00809A000600150186-9
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RIPPUB
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S
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15
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December 22, 2016
Document Release Date: 
June 15, 2011
Sequence Number: 
186
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Publication Date: 
May 6, 1954
Content Type: 
REPORT
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Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 - F ~ Lit., US O ` -'tCI.ALS ONLY CLASSIFICATION CENN&L INTELLIGENCE AGENCY SUBJECT Economic - Foreign trade DATE DIST. ( May 1954 NO. OF PAGES SUPPLEMENT TO REPORT NO. TIIL YtIUD ;TIT!'l. It YwI Mlu*Btlll 6c t1T\l Ii? IICVIBI, tO B Tll. Bf ! l 4 1. Bltll. U' WRtbc.. Ifl TMM ?th!OIIO.Y 0V itYl?1 THIS IS UNEVALUATED INFORMATION ~M -1/2D3 WR-U& R TRADE AGREENWI, 50X1-HUM 50X1-HUM 50X1-HUM -1- I ,xczua aslT Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 I The term "State Treaty," as used ir this report, refers to the treaty concluded by the GDR and the USSR, probably in April 1952, by which the USSR returned 66 SAG:, (Soviet Corporations) to GDR. owne_sh1p. According to a report in Die Neue Zenon , a West German newspaper, of 29/30 August l953 9 t_ae agreed in the treaty to pay for these SAGS by delivering commodities to the USSR at the rate of 350 million rubles' worth of -o=odities per yea,-,. The ter. "'L' arcna t" in this report refers to the account into which rents o-1 :,r?ofits of the SAGS are paid. The balance in thin raccorat i- transferred to the USSR by means of commodity allowing s.bbreviations are used in tlis report: Main department Ministry of Foreign and Trade Main administration People-owned enterprise Inns-,erman and Foreirc Trnde Z:r..erprise ;~ni et Corporatior. Las, Metallurgical CG;bine (nca calla, J. W. Stalin Coabin.:) 50X1-HUM Negotiation of the 195 GDr=ur Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A00060015 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Helmut Junderlich, (then' Minister of General Machine Building, and formerly director of the VEB ABUS Nordhausen Plant. Werner Klopp, deputy directory of DIA for Metals. use Dorath, a secretary in the MAI. Rudolf Hordlitzka, main desk chief in the MAI. Gustav Rrcnde.L, director of trade of the DIA for- Machinery. Gerhard Richter, office chief in the DIA for Glass and Ceramics. Gerhsr'd Wiegand, office chief in the DIA for Metals. Horrt 7.irpe1, deputy directory of the DIA for Chemical:,. Rolf Aechenbach, office chief it the DIA for L1ICtrica.~ Equipment. ;':Ifred Spa-.hto, de;)uty dt.rect or In the DIA for Textiles. o stark, cfiic.. chief it the D1A iccc Foodstuff!?. Guenter Peserecn office, chief in the DIp_ fee, Transportation Machinery. ; nge Freite;c rcr?. p; eter in the tilt !rxr Tdarhi ner y. she ODR delegation ui-u the long-tern G1 -USSR Trade agreement, concl,ided ic. 1951, as a point of depa-t.wre for the negotiations. The follovinn table shows the GDR export s::a 1m crt. figures of ihr. CI?-t'SGR trade agreements, and actu l '.-liveries, 1950-1952 (fn mi?lior. rubles) (i): Exports to 638 638 730 730 1,222 1,013 1,100 1,030 1,533 1,340 1,067 1,267 i,6(4 1,340 (A West German newspaper, which also cites this table states that it was compiled by the "Research Committee of Free ?Juriots."(2i) Period Covered. 1950 A-"eemcnt Actual deliveries 1951 Agreement Actual deliveriee 1952 Agreement Actual deliveriee 953 A n rrruiciit 1. g -- Thus, the G'?i!R-USSR long-term trade agreement of 1951 provided for (MR exports in 1953 of 1.6 billion rubles, worth of cos>sodities, and for GDR im- ports of 1.3 (1.34) billion rubles' w-rth of coomwdities. This was the original Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 , _ i_,. o: tiae c u ao iity soups listed in the long-term trade 4,~rc.enent actually amounted only to l..2 billion rubles of OR exports and 1.15 billion rubles of GDR imports, Moreover, it was clear from the beginning of the negotiations that the commodity listings in the long.-term trade agreement, were no longer realistic-(1) In the long-term trade agreement of 1951, the OR had agreed to export certain general cosmssodity groups; but it was unable to fulfill the obligations it had assumed in that agreement. For the UBSR generally ordered just th?oae eo odltles,, which were in short supply in the GDR.(3) The fo11c"aina table lists sons of the general cormnadity groupu, included in the son; -term tcada> .=_~rrtemen'. trhich, t!v, ',,DR. cc i de?Svsr only in part or not at all:(1; 0)~ CAL i% Gro Flufiers Couplets squi}asent for 1 01;0 ra. nteaar, tilrbanr.. flare Ilel-plardrg mactaneo :?7 i p;.n.^.L for th,. :her1^41 ] i C~' f tt } l:quirzent for the rr.?~r,'?1+ T s?bngenera? ' n Power plan-.- C.cueeators, mrtnr_ The GDit could not. del. tnc i......,t: l,at ::ai d ic: aaco 1t}' grc;,ps wh I were included i* the err _.ade n,rc-rmcnt ;+J Commodity Group Equipment for food-. ;ccaci-:,? _na:ut:. Equipment fc: 2rickrorLj mate. Floating pile diivers SIIeltiea-furnorp tn~tAl! ?r,,,~ Avails.'bL. rc,r Exp,~rts ut Time of Troie. d!< ?at,l ~sta~ _ ..2 million rubles; The hydroturbincs, ttubosgenerators. power plant-s, and fl'~uting pile drivers listed above could not be delivered because they had not yet been designed. Only 42 (not 1t5, as shown above] power plants were promised by the GDR in the long- term trade agreement, and they were to produce jO;Ct00 kilowatts each.0) to ?,a i, 0"'yi - ti'rn 'l.:?~.: s s:t11:'r rui?:u, ::a:tity or value List?.d _n Long-Term Trade eement .0 mil,irn rubles. S-E-C-R-E-T A Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 1 ire GAR found it no diffi:ult to complete delivery of the commodity groups listed above that Minister Kurt Gregor asked the Ministry of Foreign Trade USSR whether r,n1!( )f the obligations ass> d by the MR in the long-term trade agree- ment could not be lowered or canceled. The Soviets agreed to these changes, and on their part requested that certain other commodity groups be delivered by the GDR in smaller amounts or not at all. The latter ccsnodity groups included the following (1): Sludge pu-mpu 350 units Crane motors 1,000 units Electric not. s a Cry units Potash (38-J--2%) 11-"WC c.crc Measuring and toetinc !r,ctrsc+nerts 35 n:1211or. Electric elevators 6C{~ vrtf 180 units 1,000 uniis 22 million r ab ).e s [Sour.. _ eta?cc c r;ne GDR, n >u L'a3R , sal c~ for a reduction in the GLR deliveries of eq ipment bias :r_n er,. j if the "glue of the conncditioe t be delivered tc "he t'3SF by the GDR under the long t,rm trade agreement amounted to 1.2 bfl_Licn rublea, cc xoditiee in the amount of about '?2C million rubles remained tc be delivered after the reduction listed ebove had been made. Rowever, the GM vas not expectec: to be able to deliver a further 200 million rubles' worth of coeodities, because its production facilities were overloaded and because.theoe vas a shortage of materials. Another difficulty in the negotiations was the backlog of deliveries from the 1=, trade agreement. On receipt of s, diplomaticnott from the USSR 're- garding this backlog;, the GDR requested the USSR to postpone delivery of 225 million rubles' worth of commodities of this backlog, becat*e..these commodities could not possibly be delivered by 31 December 1952. However, this backlog actuall.g amounted to 335 million rubles' worth of coramrditiee.(1) [Source 2 states that the GAR backlog of deliveries to the USSR esoumted to 450 million rubles on 11 December 1952. of which 393 million rubles were acouwxlated by the nonfulfillment of the 1952 export p.ipn. The.bseklog, accord- ing to this source, was the 4ubject of a considerable dispute between the governments of the GDR and the USSR; it led to the retireamat of Georg Handke as Minister of Foreign and Intra-German Trade [on 13 September 1952) and to a sharp protest from USER Foreign Minister Vyehinskiy to Minister President Otto Orotewohl.] Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 -I the, 1953 GDR exa ore potcen:::A by :~ n. od ! i ru`_ (4 ) detailed aaa.ysis of the GPR economic situaticn and pointing out the discrep- ancies between its import needs and i`s export i.otential. :alnister Kurt )' qor nimse)f :stated t jt hi,; 1.e;ter had been r,eiit.(11 'According to source trio letter was written by Minister Prestueut Otto ;;-?otewoh1. the GDR boverc,mon-t wrote to Stalin [e.'.: an .u:en-:c.ifled dater, glvito a Altar Stalin's the IJ R decider- tc ?cnie :o an a,-ytecment with thi GDR. it wiped out tits t,.: ~1_~ deft-it by nc; i ,. c:; cxr:: t de'_ve:wes. the ollowtng categories of ,...Ycxtity c;;i aentc. (a o tier: which were to be ,'slivered , _ider t::? . to.t.c Treat;;, and (b) : (_e:, i. a u::'. n e a to 4e delivered from the "T" account.. The ;fFSil ccanocl.ei 2?5 ei].11:n rob',. ;wed to it under the State 'k-reaty and 28, nil-lion _?ua?_e= owc5 t) it from "T" ao ount, and credited the: e zuaour,te to the foreign-trade The Ministry of Foreign trade of the USSR transraitted now commodity to the UDR trade m:csion aentionci above) in mid.-April [1953). These lists set CDR exports at 1.6 billion rubles and GDR imports at 1.34 billion .ubleb.._ (1, 2) [Source 4 lists the exports as 1.55 billion rubles.) The new commodity lists reflected the adjustment, already described, in the USSR's demand for GDR exports of heavy-industry produ^ts. They also included [unnpecifiedj commod- ities, which the USSR had not heretofore imported from the-am.(1) The latter were produote of the GDR light industry. On the basis of the new cc2::odaty 1i5t:,, a GDR-USSR treide agreeent vq,s signed in Moscow on 28 April .1953. The difference between the 1.55 billion rubles' north of GDR exports and the 1.34 billion rubles' worth of GDR imports, proviaed for in the 1953 CMReUSSR trade agree,nsnt of 28 April 1 05'1 -i1 *. eery to the debts which the RwA! c-vz,- the USSR. Moreover, the GDR roust make up Its 1952 ?back:,og of deliveries to the- USSR. Since the beginning of 1953, delivery of thia?backlog.(385 million rubles) has been extremely slow; only 230 million rubles' vortn of these cemmodities had been delivered by the end of May 1953, In addition to the 155 million rubles' worth of cpmmodities, which thus remained from the 1952 backlog, a further back- log of 100 million rubles' worth of cosaodities had already piled up under the 1953 trade agreement [possibly by the end of June 19531. This backlog is likely to increase further before the end of 1953, especially in view of the most re- cent events [presumably the institution of the New Course policy). F'urthe ore, Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 -, I s i 50X1-HUM the ODR was able to plan the production of the 1.55 billion rubles' worth of export coamodities only with the greatest difficulties. it is ast,1 ated, therefore, tthat the backlog of 1953 GDR 'emits to the USSR will amount to at Analysis of GDR Imports Under the 1953 OW-USSR Trade Aaeenent Quantity De- sirerd' Z Quantity Agreed on in Trade 'Woment Butter 35,E 30,000 Vegetable oil 42,000 18,500 Wheat 300.000 300,000 ;barley 750,00 450,000 Oats 70,000 70,000 Rye 120,000 60,000 Corn 50,000 50,000 Meat 5:000 5,000 Animal 1,000 1,000 Rolli.g-miU. producta 220,000 191,000 Pipe s =G.00) (or morn) 23,400 Copper 13,000 10,000 Lead 14,000 12,400 Pig iron 200,000 170,000 [Unapecified] ores 800,000 (or mere) 6805000 Anthracite 210,000 120,000 Tin 8,000 8,CAC Mercury 250 180 Ship planks 5,000 all -- Red lead 900 -- Forgings 1;700 350 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 V Quantity Det- Quantity Agreed on sired. by C in gads .6 eeioent Harvester cc banes 400 units 400 units mica 150 80 High-grade asbestos 2,600 2,600 (of third and fourth quality) (1) Cadmium 80 26 (4) The ODR expected to receive the entire quantity of wheat, which the W SR is to export to the under this agreement, by 31 July 1953. The like- wise expected to receive by that date the entire quantity of ostsc 300,000 tong of barley, and 35,000 tons of rye, of the total quantities to be imported from'the USSR. All other iaTorts from the MM are expeted in full by 31 De- cember 1953. The folloving are data about ODR wool and cotton iscpo~ts from the (in tons) (.I) 'Wool C}DR re uirament 13,000 Quantity ODR desires to import from the U88R 7,000 Quantity of DR i^purty provided for in the 1953 GDR-U88R trade agreemant 5,200 Cotton CDR requirements 79,000 Quantity OR desires to import from the U98R 74,000 Quantity of ODR imports provided for in the 1953 Obit-T. 8R trade agreement 62,000 The fol:cving additional information 4e available on soma of the import items listed above: Butter Butter was in very short supply in the GI)R at the end of 1952. The GDR had not been able to import 8,000 tons of butter for +Ihich it had "on- tracted with other ;ountries. F`urthermorre, the U8SR had dslivssd only 23,000 of the 33,000 tons of butter which it had agreed to export to the G under the 1952 MR- U 3 8 R trade agreement, The 1 bought abroad ;some or all of the) butter which it delivered to the GDR in 19'52.(4), Since butter vas available even in Noscov only in very snail amounts during the Christmas season (1952), and on as days none vas availa'ile, the U88R refused to increase i.ts butter exports to the amt in 1953. Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 r 120,000 tone of barley, were to be completed by the end of the second quaarter of 1953, in order to ms~- supplies last until the 1953 harvest.(4) The CSR requests for corn, vheat,.,and oats were satisfied. only: after the questt.on had been referred to the highest officials. However, the GM re- quests for barley and rye were not satisfied. The OR itself expected to-pro- duce about 7 million tons of grain, but it needs about 8 million tons. The OAR Ministry of Trade and Supply announced that the difference will be made up by using oil meal and forage from the state reserve. If supplies are to last until the 1953 harvest, imports must be assured through the second quarter of 195341) The trade agreement provides that all grain delivereies, with the exception of thio amount to 5,000 tone of meet and 1,000 tone of animal fate, to make more money avaia.ble for the purchase of rolling ill products. The total GM requirownts of rolling-mill products ur.dor the 1953 plan are 2.3 million tone. Of this amount, 1,(30,0(90 tons are to be produced in the OR and 310,000 tons are to be imported. i'hi remaining 360,000 tope arm to be We up by overfulfillment of the 1953 GAR productionr plan and by having elabe rolled on contract in 4oreign co=tries. As of 28 February 1953, these rolling-mill products are needed for the following purposes: TTonfl .xports to the USSR 285,000 Aeparatiuns 235, Coo State Treaty 9:,000 "V' account deliveries 11,000 The vale of 50,000 tons lion rubles.(?` of rollirg-mill products is given as 155 mil- The GDR has a deficit of at least 400,000 tons of rolling-mill products [in 19531 because of the high reparations deliveries and other deliveries, and because of the high domestic demand.(4) The GDR requires [in 19531 8o;ooc tons of pipes, Of this amount, 18,000 tons rare 'to be produced in t e taut and 37,000 tons are to be imported, (At the end of 1952, the 1953 pipe-production plan. bad ben 30,000 tins..) The remaining 25,000 tons (13,000 tons, originalily) will have to be made up by purchases in other countries or by foregoing some necessary repair work in mines and on railroads. ?cs{~K.~L{~~ r ~zrat ~, y ~. a..Atxw.~k;r r ..... ....+ i.....a...__L" .1!!try... ;...t..L ~`".I3g-SL'~ Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Copper The GUR's 1953 copper requirements are 53,000 tons. Ofd production from copper ore at Msxisfeld, from copper ecrep, etc. will guilt to 39,000 tons, and 10,000 tons will be imported. This will leave the OR economy 4,000 tons short of its rec,airea:ents. (l) Great difficulties exist in the supply cf copper. Production at the Wilhelm Pieck Mansfeld Coaebine is very snail, but the desert of the electrical- delivered to the U , t b e equil nt industry, especisliv for cable which mus is so great that there is a shortage of about 5,000 tonlis . However, aluminum winding is now being u;,..,' for electric motore(M) Of the 33,000 tons of lead required in 1953, 20,005? toss will be pro- 1 s will he imported. 00 to n du.ced in the GDR and rocove,eed f r= scrap, end 12, 5 This will leave the economy 600 tons or more short of its requirsents. iron Ore riMaa.ily from the ISrivay-Rcg area, It ore p The QAR requested iron was expected that use of this ore would permit a more edvantaVtr4N oweion of the charge, wh:,cb.would result in lover coke coneu4tion. Vovevor, sole of the ore was to be delivered from the Kesch area-(1) Pig iron The GDR will requs.re 2.3 million tons of ilia iron in 1953 to :1f111 u;c9 acormic }Ian. 1114g-iron production, however, is as follows (in tons): E1 , 2telinstad2 750,000 Mexhuette, Untervellenborn 300,000 Neat Meballurgicel Plant, Calbe 20Q,000 (4) The GDR'e 1953 requirements of coke are 5,300,000 (5,360,000) tons. This quantity is required by industrial plants a follows (in tone): EKG, 6Calinatadt 1,080,000 Warchustte, Untervallenborn 350,000 West Metallurgical Plant, Calbe 460,000 Eettntedt Rolling Mill 3?0,000 Fc-un rlegf etc VEEs SAGS 1,BOp,000 1,340,000 of this amount, 950,000 tarns ere to be imported from Poland, 900,000 toms from C:.Lhoslorakia, and 325,000 tons from the U98R. fte be]ena is to be obtained from the llatyaa REakosi Coking Plant in Lauebbeanserq the Liebknscht Coking plant (location not indicated), and from gas plants.`1) N A Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 The coke supply will fall about 700,000 tons short of GOR requirements. Not all the needed coke can be supplied through imports; the production in Poland has also been below the planned total, and Czechoslovakia cannot deliver more than 900,000 tons to the QDR. The GDR requirements are to be met by in- creased imports of anthracite and by the use of brown coal in industry.(4) short of requirements. This shortage is to be made up from increased imports. of anthracite. It is believed that the ;,DR's 1953 requirements of black coal The coke.supply will be least 670,000 [cf. 700,000 tons above) tons The GD:R's 1953 requirements of tin will probably be net by imposts from Poland. It is believed that even the 8,000 tons of tin listed above as imported from the USSR in 1953. However, the GDR will receive only ..8o tons ofr.' The failure to import all the cadmium requested by the GDR will cause considerable difficulties in the production of Lamps for miners Lr4.trans?- portatios employees. Safety in mining and t_araportaticn will thus be affected. Red lead is required primarily for reparations deliveries and exports to the USSR. The USSR will not accept goods coated with substitvH! . Ship plate Ship planks sae needed primarily for reparations production.(1) rorgings In 1953, the GDR requires 2,500 tors of forgings,.for the electri power pc'og'sm and for the planned increases In heavy-industryprodilotion. (1) At least 1,700 tons of this gwsn~ity wo+a].3 have to be imported from the UeJR. When the 1953 GDR-USSR trade agreement was signed, orders for only 350 tons of forging. could be placed in the USSR, Rlthough the greatest efforts were made to place more. Moreover, none of the forgina so ordered were for tur- bines of more than 12.5-kilowatt capacity. Between 28 April and 30 June 1953, the USSR accepted or+1ere for a few more forging.. In 1952 the USSR delivered only 3 forginp out of a total of 15 ordered by the GDR.(41 9emifinichad forg- ing* are to be annealed in Hungry. The GDR has great difficulty in obtaining mica, because Russian and Chinese mica is of low quality. The GDR hap bee>1 able to secure 1953 imports of only 80 tons.(1) Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 50X1-HUM Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 1 The principal C exports under the 1953 dDR-t SE true agreement are. re- ported in the following table (i.)a Ccxmsod_ities Vertical lathes Blast-furnace egtaipme!~ Steel-melting equllmment Casting machines Boilers Stem power plarrte Installations for brick and roof the production Cotiplete eq'.i a-ent for turbines and boilers Steel pushers (Stehleehieber) Equipment for food-processing industry Equint for chemical industry Pumps and compressors Cment factories Equipment for stranding (of wire) Cable works Cranes Excavators (tCugelechaufler) Generators Switch panels quantity ar Vaiue 40 units, 4- to 6-m sizes 5 units, 2-m size 4,500 tens 3,500 tons 67 units 22 units 13 unite (to be delivered is 1954) ?5 pillion (rubles) 2,000 tons 43.4 million rubles 52 mi:,Iion rubles 40 million rubles 7 nits tor red bricks 2 umitw. for P" f tiles 2 units 4.2 miUton [rubles) 2 units 2 railroad crane 2 eaatry arms . 4 lame flosti*6 arones 2 an') f1oati4W cranes 21 ore-tresw1ordia` aras3ee 50 milli trgble+) [Cost of, all araW? ] 2 unity 613,COO kva two Information anilr? able ) (llo inforaation avail- Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 50X1-HUM Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 S-E C-R-E-T Cooodities Tractors Diesel motors Ships' diesels Presses A-1 [this abbreviation known to apply both to a pilot trainer and a continuous-wane telegraphy Instrument) aevicea quantity or Value 180 '[units] 200 units go? [possibly units] 45 units (firm SAO Henry Polo Heavy- Machine Building Enterprise, Erfurt) Television sets potentiometers Buns. Ethyl alcohol Colloxylin (Kolloxolin) Monochioroacetic and Butanol Plasticizer Fluorspar Amuonium sulfate DDT Phosphor-bronse vire mesh Cellulose ?arlon cord Furniture and it goods Porcelain Sugar 80,000 tone In respect to Owl exports under this eReessnt, the M will probably be able to deliver only up to 80 percent of the exports it bas contracted for, seaming that the saterial supply to heavy industry is adequate. Because of the initiation of the pew Cows* policy in the M, increased difficulties say also be anticipated in the production of light industry for export. Industrial L it-li t [Nu information avail- able( 20 million rubles 23,400 tons 1C,000 tons 5,000 tons (No information avail- able] [No information avail- ablt ] (No information avail- able] 700 tone 29,0CO tons 1,500 tons 30,000 si m 12,000 tons 400 toes 10 pillion rubles 6.5 nillion.[tubles] Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 plants of the light industry have been greatly neglected during the last few years. Consequently, their products do not measure up to the required standards. Anastas I. Mikoyan, Minister of Foreign Trade USSR, declared when the 1953 GDR- USSR trade a&eement was signed that the USSR is very much interested in con- sumer goods. After the signing of the agreement, the R announced at a con- ference held in Berlin that it desired to import more consumer goods. Its short- age of such goods was aggravated when USSR prices were lowered in April. 1953. It is therefore necessary for the USSR to increase imports of these commodities above the levels of previous years. The USSR demanded to know at that time how Toward the end of `he negotiations, the USSR gave the impression that it desired to ease the strain on the GDR economy. It lowered the deliveri z re- quired under the State Treaty and frois.the ""f" account, and it was also eager to fulfill the wishes of the GDR in regard to the 1953 Q R-USSR trade agree- ments. The effect of world public opinion made itself felt, and Moscow vasty changing its tactics. As a result of this new attitude of the USSR, officials of the MAI discussed the possibility of concluding a special. 1953 trade Agree- merit with the US'R which world provide for 500 million rubles' worth of addi- tional OR imports fr is possible that MAX will make overtures of this type to Moscow. As a result of the comes in the GDR economic plan made in June 1953, new negotiations will doubtless have to take plate between the f2DR and the USSR. For the Gi)R is in ni position to deliver before 31 December 1953 all the commodities it contracted for ?n the agreement of 28 April ?.953 plus the back- log remaining from the 1952 trade agreement. Kurt Gregor, QDR Minister of Intra-German and foreign Trade, stated chat an additional import of 50C million rubles' worth of csnoumer- goods from the U NR to the GDR was planned. However, the GDR can under no circumstances do without the imports of rolling-mill prod- ucts, copper, lead, etc. In view of the add?ticns,i GDA imports and the 93ZtIM gated cuts in OR axpcrts, the USSR will have to emend credit to the GAR. 8.,t?Q,A,s~ Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150186-9