ECONOMIC SITUATION IN GERMANY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A002700060002-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: June 3, 2002
• Sequence Number: 2
• Publication Date: October 21, 1953
• Content Type: REPORT

Approved For Release 2002/07/22: CIA-RDP80-00810A0027000609C-4
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
This Document contains information affecting the Na-
tional Defense of the United States, within the mean-
ing of Title 18, Sections 793 and 794, of the U.S. Code, as
amended. Its transmission or revelation of its contents
to or receipt by an unauthorised person is prohibited
by law. The reproduction of this form is prohibited.
sragrz/CONTROL - U. S . OFFICIALS ONLY
SECURITY INFORMATION
COUNTRY East Germany/USSR/China REPORT NO.
25X1A,
SUBJECT reOnomi Situation in Germany DATE DISTR.
21 October 1953
NO. OF PAGES
2
25X1DATE OF INFO.
REQUIREMENT NO.
RD
PLACE ACQUIRED
REFERENCES
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
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president of the Deutsche Notenbank stated that tne Deutscne notenoans 13)3.0. a
cash deficit of 81./600,000 eastmarks. This had. been caused by the lag in the
production of consumer goods and. the decrease of purchases at the HO shops. As a
result, the Deutsche Notenban.k is not in a position to graft -credits to
industrial enterprises for the payment of wages.
2. In order to eliminate the dangers inherent in this situation, Minister of Trade
Kurt Gregor was keitto negotiate in Moscow for the immediate delivery of foodstuffs
and raw materials.' It was also decided that industrial enteirprises which lag 'behind
production schedees will be closely supervised by the13ED.
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it was further resolved to grant special aid. fOr reconstruction
tOlhina in 1954 and. 1955. The main administrations of the pertinent ministries
were orilered to draw up a plan for the rehabilitation and, redonitruOtion of Chinese
intuctry, The plan is to be turned. over to the Chinese Gov'ernment in Peiping
by, Minister Kurt Gregor in mid-OctOber.
With regard. to the reorganization of the East German Governmegt, the Ministr3t Qf of
Heavy Machine Construction, the Mtni.stry Of Ingineering (sic) and. the Ktnistry
for Transportation and. Agricultural Machine ConStruction are to be merged. and.
laced.'ituider Deputy Minister Heinrich Rau; the toltnistry of Mining and, Smelting
ita. the State Secretariat for Chemistry are tO be headed by Minister Fritz Selbmann,
Comment: This information., indicates that deliveries of raw' materials
and. foodstuffs promised by Xoscilair in Anguat 1953, have not yet started to arrive
in any sizeable quasrtities. It will not 'he until after the arrival of these
deliveries that a flow of money to the Deutsohe Notenbank will resume as
the result of the increase d marketing of consumer goods.
Comment: Possibly the Ministry for General Machine Construction
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FBI AEC
STATE 1#x
ARMY
NAVY
AIR
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Approved For Release 2002/07/22: CIA-RDP80-00810A002700060002-4
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Comment: This reorganization, which was probably initiated by the
SCC, folloWs the pattern of the reorganfzation of the Soviet Government.
Previous observations indicate thaVtoP ranking tarty officials have been
placed at the bead of ministries in time of crisis. After a return to more
nOrmaIoOnditions the top level men are again withdrawn from the front line.
It appears that his line has also been chosen with regard. to Rku, who
previously held the position of Commissioner for the CoOrdination of Industry
and. Commerce% and who is now being ordered telovercome the critical situation
in the machine construction industry. His appointment also indicates that,
contrary to directives laid dawn for a 'Knew courses in East Germany,
the engineering industry'vill continue to receive priority. Therpromotion
of Ban and Seibmann, Who have both been. reported in opposition to Walter
Ulbttpht, indicates two different aspects of the Soviet policy in East Germany.
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Approved For Release 2002/07/22 : CIA-RDP80-00810A002700060002-4
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Approved For Release 2002/07/22 : CIA-RDP80-00810A002700060002-4