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CENTRAL INTELLIGENCE AGENCY REPORT INFORMATION REPORT CD NO. PLACE ACQUIRED Notes on the Ministry of Railway Transportation and the Reichsbahn THIS OOCUNRNT CONTAINS INFORNATWN AEFRCDNS TER NATIONIL ORPSNSR or THN UNITED STATES. OITEIN TAR RRANIRS Or nnl Is. SECTIONS TSS AND 714. OF TWA U. S. COON. AS A49SOR5. ITS TRANSMISSION OR NNYRL- ATION Or ITS COMM" TO OR NNCRIR ST AN OuMTSONIas nSSOO IS PNORIMTES n LAN TON nrROROCTIa Or THIS VONR.. IS rRONIMnD. DATE DISTR. 5 October 1954 NO. OF PAGES / J, f, NO. OF ENCLS. (LISTED BELOW) SUPPLEMENT TO PFPf)RT NO 1. For 1954, the East German Ministry of Railway Transportation had provided an allocation of 20 million DME in the Reichsbahn Economic Plan for the acquisition of building materials for superstructure construction on Reichsbahn properties. As of the end of April 1954, only 1,800,000 DME worth, or approximately one-third of the quarterly allocation of about 7 million DYE worth of building materials had been delivered. The Reichs- bahn is currently faced with an even more severe shortage of raw materials than immediately following the end of the war in 1945. All deliveries of steel rails from the Soviet Union have suddenly been terminated, for reasons not known to the Reichsbahn officials in charge of procurement and raw material allocation. It is suspected that the steel required for production of these rails has been diverted to other end uses within the USSR. However, no explanation has been made to date to the Reichsbahn on the failure of the USSR to live up to the promised delivery schedule. 25X1 2. Deputy Minister for Railways Richard Staimer, who is in charge of the Material Procurement Section, has given orders for the East German government to attempt to obtain replacement rails in the 'Jest. The nego- tiations for delivery of these rails are being conducted via the Osthandels- gesellschaft in Hamburg, which is also negotiating with 'West German firms for delivery of railway ties and small iron fittings (Kleineisen), including spikes, tie-plates, coach screws, crab-bolts, spiral dowels, etc. 3. The shortage of nonferrous metals is so great that the Reichsbahn has been unable even to repair locomotives which have been rendered inoperative as a result of minor breakdowns requiring replacement parts or repairs. 4. Another serious shortage affecting Railway operations in East Germany, which has also been responsible in part for increased accident rates on Reichsbahn trackage, has been the shortage of hard coal for stoking locomotives. According to the original 1954 operating plan for the last German railways, only hard coal was to be employed: for operating locomotives. The hard coal was to be delivered entirely Yfom Polish mines. To date there has not been any delivery even of briquettes fre~a PoJ. so that the Reichsbahn has been forced to operate on "Yob,O.Kohle^ ~(f eoa ). As a result, and because of the lower heating power of the soft coal, the stokers are required to handle ten times as much coal, thus having to do ten times the amount of physical labor for each mile of operation, since the pressure of the boilers must be maintained throughout.. As a result, train crews, particularly stokers, are badly overworked, and the accident ratio has risen proportionately in the first four months of 1954. Another factor which has helped to increase the accident rate in 1954 has been the failure of the East German Ministry of Railway Transportation to obtain the required replacement parts for defective signal equipment. Deputy :,sinister Richard Staimer recently served as chairman of a meeting of dapartclent heads and their deputies in the Ministry for Railway Trans- portation, at which the organizational measures to be taken in connection :;ith the "Deutschlandtreffen" were discussed. Staimer is in his mid-40's. Originally a carpenter by profession, and an old-line Communist, he fled to the USSR from Germany around 1934, and is reported to '.lave received Soviet citizenship during the period 1935-1940. His office is located in the Ministry for Railway Transportation building on Krausenstrasse in East Berlin, in Room 114 on the second floor. Staimer is responsible for material procurement and organization of the ministry, the latter including the Personnel and Cadre Departments. In addition to his duties as Deputy Min- ister in the Ministry for Railway Transportation, Staimer also holds a commission with the rank of Colonel in the SSN. 6. The Finance Section of the Ministry for Railway Transportation is checking all RBD books in =last Germany in connection with an audit of repair costs on the basis of Price List (Preisvorschrift) Number 269, according to which all expenditures of all Reichsbahn offices and repair stations must be accounted for. The ministerial auditors are mainly interested in the Zuschlagssaetze, i.e., in the 25 to 27 percent extra charge (Zuschlag) which is permitted on all labor costs, and which is considered the profit on such repair work. Under the planned economy bookkeeping introduced into the railway system accounting, this mythical "Zuschlag" profit has never been sufficiently large to meet the costs of the overpoweringly large administrative apparatus of the Boichshahn and the Ministry for Railway Transportation. The cost of maintenance of this administrative apparatus is best illustrated by a comparison of prewar and present day personnel on an average employed by a single Reichsbahnamt: Political Administration Labor Section Organization Section Bookkeeping Section Security Inspection Unit Investment Section Plant Guard None None None, or one 8 to 10 employees 9 employees personnel man 10 to 12 employees 2 employees 25 to 40 employees None 4 employees None 4 to 6 employees None 60 to 200 men per Amtsbezirk East Germany, it is not known yet what function or relationship will exist in the future between the Reichsbahn and the WOSO office, since the latter originally was organized as an office of the Soviet occupation authorities attached to the East German Ministry for Railway Transportation, to main- tain liaison on matters affecting Soviet occupation use of railway transport facilities. Since 9 April 1954, there have been no accountings cleared on billings for shipments ohargeable to the Soviet Occupation Forces, since the whole question of accountability for these costs in the future is under consideration by the highest level East German authorities. It is expected the East German t.inist ort#jjpjq i niace add-Anvil 1954 jivilia only.' din** about SECRET 0 RO/ 1S: UtttL3nf.9 Y that all such billings will be held up, pending receipt of a new order on how these costs will be accounted for in the future. 3. The Transit Bri~ades of Reichsbahn personnel-at Frankfurt/Oder have been ?^^ disbanded. All railroad employees who belonged to these brigades have n the future, shiQments to the USSR and satellite countries will be shipped i ...Here tti,e rt t1yains will -he turn over to Czech and Polisi railway crews, who will h~ndle all traffic bktween Frankfurt/Oder and,'Brest-Litovsk, In the pest t e East Getman Reichsbahn crews took the USSR-bound trains through Frank- at-which paint the cars were unloadeid ai far as Bust-Litovsk t~Od f , er r a4d reloaded to Russi -gauge boxcars and flaticars by Russian railway i p rsonnel. ?Under theew set-up, the railway Brews of mixed Czech and Polish nat'onality willi.take over the physical' control of the loaded freight ca s at Frankfurt/Oder,~,and will esdort them tolBrest, where they will bA tuxk ed ove to Russian suthorities;hs heretofor4 for relo$ding. All docu\ men s indifating the final destination of loade4 cars coming into Brest- Lit Avsk halve always been, kept by Soviet personneR only; these records are required 11o direct the rd-distribtjtion of goods kt the est-Litovsk borde4' rail ros ing, where th_eg1o_ods are redirected to(their estinatione in the USSR "^^ rs ?-ef re-il -ehi s -to to #rrercase- ~; transit Yhg oOtcho'sl'avatcT8 ~$nd o nu M - .