STATUS OF THE FINANCIAL PLAN OF THE MINISTRY FOR HEAVY INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A005800780001-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 21, 2016
• Document Release Date: July 7, 2008
• Sequence Number: 1
• Publication Date: February 4, 1955
• Content Type: REPORT

Approved For Release 2008/07/09: CIA-RDP80-00810A005800780001-5
GLASSIra;ftnc" a '.c:;t I'
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION REPORT CD NO.
COI INTRv F.n a'. Germany
IsUbJECI Status of the Financial Plan of the Ministry
for He a v}i Industry
PLACE
ACQUIRED
DATE OF
INFO.
7H1% SUCYIFMT coiTAlff IKlORIfa01; LcrICRRS NI IATIOIAa OIFRURI
OP 7Rl YSITIR STATII. `?riTRIR Till sum" OP "Us II, $ICTIOI$ 7Sf
wff 754. arm* O. f. COBS. Af A1111REO. ITS TRAIIEDMIIOI OR RITI1-
CLASSIFICATION SECRET 25X1
1. Water Ulbri.ohtl s 'statement concerning the production of East German
h:avy industry in 1954, which was published in the East German press,
was false. According to Ulbricht's statement, the Ministry for Heavy
Industry had suffered losses of 46v Wi DME, whereas in actual
fact the losses under t':e Financial Plan of that Ministry-as of 31 Octf
1954 amounted to 194 tX+ 3,0W DME, since the enterprises with platiyd
profits : ctuslly ?'howea ' 309000,O0G J.,2 less than the Plan and
the enterprises with planned losses had exceeded their planned losses
by 6(OOO DO DUE. s of 23 November, the Central Department for Com-
mercial Affairs (Zentrale Kaufmaennische Abteilung) of the Ministry
w.:a preparing a report on the situation for the Presidium of the Covneil
of Ministers.
2. ThA vi^istry for Heavy Industry attempted to obtain the amount cf 299000900?
DME from the Ministry of Finance o cover that share of the
uzivauz.ned losses. However, Hanisch (fnu) and Kaiser (fnu)2, of the
Ministry for Finance, absolutely refused to advance the money when the
rec:uest was made of them, giving as their reason the fact that the
economic reserve (Haushaltsroserve) was completely used up. It was be-
lieved, howeer, by Ministry of Heavy Industry personnel,. that there
waF. still the amount of one billion DME in the economic reserve, despite
the statement to the contrary by Hanicch and Kaiser.
1 Comment. Possibly identical with Gerhard Hannig, of the De-- 25X1
partmen ''for Heavy Industry in the Main Administration of Nationalized
Inv ;try of the Ministry of Finance.
2~ Comment. Possibly identical with Dr, Kaiser (fnu), Second 25X1
Deputy Minister for Finance in the Main Administration for Taxes of the
ministry of Finance. However, it was reported 25X1
that Kaiser had been remov&u Lxuw ziio UVtflY14uo 25X1
STATE ~_ N +VY I
ARI NY
754 FBI
DATE DISTR 4 ;>Fnruazy 1..55
NO. OF PAGES 0L? 25X1
NO. OF ENCLS.
(USTED BELAWI
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
F F
Approved For Release 2008/07/09: CIA-RDP80-00810A005800780001-5
 Approved For Release 2008/07/09: CIA-RDP80-0081 OA005800780001-5
Approved For Release 2008/07/09: CIA-RDP80-0081 OA005800780001-5
 CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION REPORT CD NO.
COUNTRY East Germany
SUBJECT Status of the Financial Plan of the Ministry
for Heavy Industry
ACQUIRED
DATE OF
INFO.
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFINER
OF TMR UNITED STATES, WITHIN THE MEANING OF TITLE 19. SECTIONS 7G3
AND 754. OF THE U. S. COON. AS AMENDED. ITS TRANSMISSION OR REVEL-
ATION OF ITS CONTENTS TO ON RECEIPT BY AN UNAUTHORIZED PINSON
13 PROHIBITED PT LAW THE REPRODUCTION OF THIS FORM 15 PROHIBITED.
DATE DISTR. 4 February 1955
NO. OF PAGES a, 25X1
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
1. Qa.l*er Ulbricht's statement eoncerningAhe production of East German
heavy industry in 1954, which was published in the East German press,
was false. According to Ulbricht's statement, the Ministry for Heavy
Industry had suffered losses of 462 DME, whereas in actual
v' t~ fact the losses under ti,e Financial Plan of that Ministry as of 31 Ocoixir
C A,
1954
nce the enterprises with plant(6
fit DME l
prosess than the Plan and
th? !a 'IL p xceeded their planned losses
by MM-- As of 23 November, the Central Department for Com-
mercial Affairs (Zentrale Kaufmaennische Abteilung) of the Ministry
w~s preparing a re:)ort on the situation for the Preiia mm of the Council
of Ministers.
CLASSIFICATION S CRET
Approved For Release 2008/07/09: CIA-RDP80-0081 OA005800780001-5
2. The Ministry for Heavy Industry attempted to obtaintilbe amount of 2~ QA61pb6t
DbE from the Ministry of Finance Io cover that share of the
unplanned losses. However, Haniscli (fnu) and Kaiser (fnu)2, of the
Ministry for Finance, absolutely refused to advance the money when the
request was made of them, givin as their reason the fact that the
economic reserve (Haushaltsreserve) was completely used up. It was be-
lieved, however, by Ministry of Heavy Industry personnel, that there
wL;s still the amount of one billion DME in the economic reserve, des
r71i,.e?the statement to the contrary by Hanisch and Kaiser.
1E:::::Comment. Possibly identic&I with Gerhard Hannig, of the De- 25X1
partment for Heavy Industry in the Main Administration of Nationalized
Industry of the Ministry of Finance.
Comment. Possibly identical with Dr, Kaiser (fnu), Second 25X1
Deputy Minister for Finance in the Main Administration for Taxes of the
1,"inistry of Finance. However, it was re~)orted _25X1
that Kaiser had been removed from his :.osition. 25X1
VI
CLASSIFICATION SECRET
STATE
ARMY
NAVY IX I NSRB I I DISTRIBUTION
AIR 1
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25X1
. At
 Approved For Release 2008/07/09: CIA-RDP80-0081 OA005800780001-5
Approved For Release 2008/07/09: CIA-RDP80-0081 OA005800780001-5