SITUATION REPORT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A003300560002-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: May 1, 2002
• Sequence Number: 2
• Publication Date: January 12, 1954
• Content Type: REPORT

Approved For Release 2002/07/29 : CIA-RDP80-0081OA003300560002-2
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
This Document contains information affecting the Na-
tional Defense of the United States, within the mean-
ing of Title 14, Motions 743 and 744, of the VA. 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.
SECRET
25X1A
COUNTRY East Germany
SUBJECT
Situation' Report
25X1
25X1X
1. During the week 1-8 Jaliulkry 1954, Ambassador V. S. Semenov, Minister President
Otto Grotewohl, and Depu'y M nLSter President Walter Ulbricht were all in Berlin.
No leading personalities traveled between ''Berlin and Moscow. The Agitprop section
of the SED devoted ally its egy to advocacy of all-German'participatton in the
Four-Power Conferenoel;:iven the preparations for the fourth SED Party Congress
were pushed into the background. These facts suggest that the Eastern bloats
line regarding the Conference is now firmly established.
2', The main points of the Agitprop line are as follows
a. The interview between Malenkov and Kingsbury Smith shows that the possibility
of reaching an agreement exists, and that the Soviet authorities have demon-
their g9od will, which is supposed to be illustrated also by the return
strated
of 33 SAGS to G6man control.
be The DDR is the model for a future German state. This is strongly emphasized
in Ulbrioht's speech on New Yearts Day calling for the strengthening of the
DDR, the furtherance of the "new course" to raise the standard of living, and
the continuation of the "national reconstructionprogramme"? It may be noted
i SECRET
STATE ARMY
INAVY
DATE DISTR. 12., Jnuw.ry 1954
NO. OF PAGES 4
REQUIREMENT NO. RD
AEC
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SECRET
that the leading article in.Neues Deutschland on 7 January again demanded the
end of private control of heavy industry, land reform, and "demilitarization"
in West Germany as the chief points in a "democratic peace treaty according to
the recommendations of the Soviet Union".
c. There are repeated demands that there must be no international control of all-
German elections.
d. Very strong emphasis is still placed on lists of petitions, both, genuine and
falsified, "representing the voice of the people" and demanding the admission
of delegates from both parts of Germany to the Conference.
e. Attempts to woo France continue, illustrated by Semenovts visit to High Commissioner
Andre Francois-Poncet.
f. Sharp attacks continue to be made on the Bonn government, although there are stmul-- I
taneous attempts to court individual members of the iundestag.
3. In view of the known methods of strict press control in the DDR, the article in the
Neue Zeit (East CDU) stating that West Berlin is unsuitable as a site for the Conference
because of "insufficient security", unless four-power police control is arranged, may be
a government-directed attempt to put the West CDU into a position where an all-German
CDU will adopt the current Eastern line as to all-German questions.
4.. There are two possible interpretations of the announcement by the Council of Ministers
of the formation of a "Committee for German Unity": if the Conference should fail to
bring unification, the Committee would be an Eastern counterpart of the Kaiser ministry;
if the Conference should turn into a long-drawn-out affair, the Committee would be a
special publicity channel for the East German government. The reasons for the choice
of Deputy Minister President Hans Loch as chairman and Albert Norden as secretary of
the Committee are unclear. Loch, a leader of the feeble LDP, while 25X6
Norden, a former emigrant in the West and an anti-American intellectual, was shelved
when the Office for Information was abolished. In any case, there is no indication
of any modification of the Eastern concept of a united Germany.
SECRET
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5. Although the Office for Reparations has been formally dissolved, its entire
apparatus will remain intact, It is no longer responsible directly to Grotewohl,
but will function as a "control apparatus" within the Ministry of Domestic and
Foreign Trade; no official publicity has been given to this fact. Orders hitherto
classified as reparations continue in effect, still calling for the same quantity
of deliveries; it is not clear whether these are hidden reparations or how payment
is to be made, (Reparations in 1953 are said to have amounted to 1.3 billion
east marks actual value?)
6. The appointment Qd IJohannes R. Becher 25X6
to the newly created post of Minister for Culture may be an attempt to appeal
to all-German sentiments. The appointments of rthe"apparatchiks" Sepp Schwab
and Helmut Holtzhauer have been can.cele