EAST GERMANY NATIONALIZING RESTAURANTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600280265-7
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: September 21, 2011
• Sequence Number: 265
• Publication Date: January 17, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/22 : CIA-RDP80-00809A000600280265-7
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CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
COUNTRY Germany Soviet Zone
SUBJECT Economic - Consumers' goods
tanw
LANGUAGE German
WHERE
PUBLISHED Zurich
DATE
}Fla DOC01t1T CO.TMII l.r011AT101 .1"CA1r S111tAT OSAL D.n11.
.1 T1. O.IT.O S.M. 1171111 T.. Sun= l, nn,Id1AAA ACT .A
Y.. C...1 A10 08. AA 01510.0. IT. TSA1.1l/.IU1 OW T11 a lOLaTIAF
OT Ill! COMM.. IX 447 !1100! T4 :1 OMAVTpO.I.RO .........AO,.
,AO It L.W. .K..OO.CT.JI OF TWI. POLO 1. PM11.IT1A.
,.-SOURCE Neue Zuercher Zeitvng, Ho 2457, 1949.
EAST GERMAHI_iiATIOIALIZING RESTAt j ,V.X
Loose time ago, the German Economic Commission, through its organ the RO
(Trade Organization), started instituting so-called HO restaurants. in all
parts of the Soviet Zone and the Soviet :ectcr of Berlin. Allegedly thin
at-tion was prortnt-d by the following ime: elimination of the Slack market,
r`iwelion of coiAtrols; ar4 :c iiucbion of prices. It is obvicus,.hovovpr,
that none of these three goals has been achieved and that, on the con;:rat?s,
the underlying reason for this "reform"'vas the desired collectivization of
this important and extensive trade, in line with the general collec:1viztion
program effected by tue regime.
As for price reductions, pzactically no progress has been made. Menus
,n ?-".
+..~. scale i\i aru.'t ==Ire)
aiCvlwd lily ca a the 1'~1.LV?i PZ ,
B vt'h? with noodlccc
2.00
2 rolls, or.one eli:a of bread With sausage
4.50.
1 boiled egg
2,20
2 fried eggs f.si ham
9.6
Sausage With cabbage and potatoes
7,60
200-gram pork chop With fr]sd potatoee and mit'ea. naiad
2],15
1 cup of coffee with milk and sugar
1.80
Mixed vegetable platter With baked potato
6.oo
I slice White bread
.40
1 piece of plain cake
2.05
chest prices very from day to cny, depending on the rate -f exchange
affe Ang East and West marks. On the day of report the exchange was 5.60
Erst marks for one west mark. kccorlingly, prices in the loviet Sector
(figuted in West marks) are on a ]par with or somevtat above -those prevail-
ing in the Western Zones of Germany.
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Sanitized Copy Approved for Release 2011/09/22: CIA-RDP80-00809A000600280265-7
 Sanitized Copy Approved for Release 2011/09/22 : CIA-RDP80-00809A000600280265-7
R STBICTED
With the price of a pork chop amounting to nearly one half his weekly
wages, the average Berliner can hardly afford these eating places. The
majority of pat.?ons, therefore, consist of functionaries of the Socialist
tniLy Par , of Germans employed by Somiet enterprises receiving pay far
.xcc the ;; a ccuie, and of Berliners from tke Western Sectors
who are trying to profit from the favorable exchange rate. This explains
the fact that eating paces in the Western Sectors are doing an extremely
i,c?r business.
Eastern Perlin now has eight large HO restaurants, as well as some
(;s ea and p991.ry shop,; and numerous HO snack bars. Other such eating
pla,;ea are i:"_anncd. They are not under H') jurisdiction but are being
administered b.,r a planning commission whose members have an active inter-
est in the various food-selling enterprises. This commission is responsi-
ble for the businese administration, for carrying out improvements
deter-
,
mining Prices, enforcing cleanlincea anrd inu?ring proper tof
food and friendly, efficient service. Tips have been officially abolishcd.
All personnel share in the profits and a premium systsrn is in effect.
DU ihIL i ED
Sanitized Copy Approved for Release 2011/09/22 : CIA-RDP80-00809A000600280265-7