PROCUREMENT SECTION OF THE ADMINISTRATION FOR SOVIET PROPERTY IN GERMANY (USIG), ZVK

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80S01540R002200020009-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: May 15, 2012
• Sequence Number: 9
• Publication Date: August 12, 1953
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2012/05/15: CIA-RDP80SO154OR002200020009-2
CLASSIFICATION 3i R .f'/CON;TRm - U.. S. OF.ICIALS 01 my
CENTRAL IN ELLGNCE AGENCYT3
INFORMATION REPORT
GOU NTRY East Germany
U13
JE,T Procurement Section of the Ach:ir ,3tratjon fer
Soviet Property in Germany (VSI4) a ZVE
LACE
CQUIRED
";TIE CIO:"
y ..
:
MIL D6t, Il ^7[Z4T GO.7TAii59 INPOppp710N RIIECTINF Y!1E NAYlOdlpI DEIKNtiE
OW VW OtlfYLO STATt(fi WITNI$ Till, ITlAHIHA OP 7HC E3plor"OE ACT 60
U 7!. f:,. DE W40 fill. A8 1413E113DCD, [f6 T1IARSGIA'i1Ot1 OH THE esVELATIC7!
U ITS GrPTEfTS I17 4W 9ANdl8 TO AN ONA5TWCp1YcD PlInSON IT IpCA
a(D(TED 1i' LAW fSP OOHCfON OV T1111 roan Is PROK1DMlED
REPORT
CD NO.
DATE DISTR.
12 Avast 1953
NO. OF PAGES 4
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO..
THIS IS UNEVALUATED INFORMATION 50X1-HUM
nll T(,C l , o tt C` :'ion Of t' C .y: :rLT11:'trati "i for moll hope rt;j in OerA 7;. r
l: 1' .) 1 t h f, k,(:, e ion h i~ h x CtC. i i..i : a :lat ,,,ri.u].s :1t c d b-,? the var 1o a;
? mete ics for their rcci Ct__e;i7 fi'U-'^ S. T';he sr'Ction is divided e into
twc rrt$ : a Lc?.'ict r ,rt located on the f-rounr1 floor of the :lain, buiicla
l
the herlinor S'trasse, in r in-'', ei::senseo; and a Cerman part, located
In the rear ? 1r of the '_'SIC :)u,.:ldin ~, with entrance at Licber annstrasse 6.
-"112 f ollowjn;~ 5.r, the 1,reakdown of the'
he L'SIJ rrcct.:rcr erlt section, the rernan
r nrt of i.h cn is ;-morally known as ti1e Zerrtralcr ver sort-unjskontor (ZVK) :
:,a:Lariov (I':-TU )
,crran :unction
Lduard Feukor Chief, ZVI'i
Josection for ferrous ,etalr
e rev Ja Y.: -~ .itcl J
iC until C,Z1U?', v~7 SC:C't.ion for
his de "'ection April 1.953 ferrous :-..etnls
;~~ZZe (fn,a) A, si:>ta it to Sto1 ~o r
hoT pictr (fnu)
interrreto.c
J rau ichoen (fnu) '14;rfist
Cza linSi{J. (1""Tall/ tatist~c:Lan
rau Kretsclu-ia:.n (fnu) Assistant
:;ubse;ction for nonferrous metals
STATE 1NAVY
ARMY i A172- t
:uuehl (fnu) Chief of subsection
Neumann (fnu) In chartc of co..-pen-
ration deals, incLladint-
those with hest Con-ran
fir .is
'r aeuleinriec'-elbur- (f:mru) Interr,reter
(fnu)
statistician
CLASSIFICATION Stare/rOrrrROr rr.Tnt nny
NSRfl DISTRIBUTION
FBI
T (3H2? IN,
Declassified in Part - Sanitized Copy Approved for Release 2012/05/15: CIA-RDP80SO154OR002200020009-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/05/15: CIA-RDP80SO154OR002200020009-2
Declassified in Part - Sanitized Copy Approved for Release 2012/05/15: CIA-RDP80SO154OR002200020009-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/05/15: CIA-RDP80SO154OR002200020009-2
? _- 2 50X1-HUMS
AAstaskov (fnu) :Zadtke (fnu) Chief of subsection
Si*ion (fnu) Assistant
rloetz (fnu) Assistant
Subsection for machine construction and electrical oQuipment
Donskoy (fnu)
Subsection for auxiliary materials e
wood, textiles,
materials, etc.
Donkey (frai)
Subsection for chemical goods
Barthel (fnu) Chief of subsection
Ou eni r (fnu) Assistant
Iiadrys (f nu) Typist
Sikorski (fnu)
Suchy (f nu)
Chief of subsection
Typist
50X1-HUM
2. The trade union (FJGD) sr,(: -etary for the ZVK is Rudolf I.eurrann. Neumann has
been with the LVK since
o 1951. He was formerly director of DIA-tall
2. The following is a descry tion of the normal course of business at the Z/K:
a, Six months before t :.o first of each year, the individual SAC factories
draw up on Freccri 3d forms lists (Bedarfsplan) of the raw materials
they expect to rey.ire in the forthcoming year. These lists indicate
for which product! on pro r in the different items are required and also
show what stocks f raw materials are already on hand at the plant
itself .
b , The lists are f c -crarded by the r larte to the c" r foront 1C ; our head-
:;. ra.s:;.ash headquarters, Isabel headquarters, etc.), where
they are collatr:d, checired and -q-,roved.
c, The lists are ? hen forwarded f TT~TG, . "c: e t,'.~i are first reviewed by
v: et car= c'1cut of the procurement section and then passed to the'
Ccr:uan corT orient for action.
d. The ZVK Bien passes the consolidated lists to the last German State Admini-
stration for i aterial Trocurement (Staatliche Veraaltung fuer i aterial-
versorung). The lists, as passed to the latter office, have already
been broken down into the following categories of goods:
(1) those ahich will rrobably be available from inports -
from the USSR, from ~-,e? t Germany, and from other countries
(2) those which will probably be availa~jle from Last "ernan factories;
fror.*. SAG factories in Last Germany; and from suj'T?lies stockpiled
in Last German by the SAG's. The list, as passed on by the
4,v$, is accaipanied by a request that the said items be included.
in the overall !;a,-,t German procurement plan for the coming year
and that the necessary quotas (Kontingente) be issued for them.
e. The ZVK then passer; the certificates (stating that the juntas have been
aprroved) down the line to the individual S'C plants. The plants then
deal directly with the local DHZ (Deutsche Hendelszentrale) offices
for the rurr.ose of obtaining the raw materials they need,
3 , 'seca1,se the above ;rrte*i does not work out in practice as it is intc~r,ded to
on rarer, it is in fact the rule that the ZV1 officials deal directly with
the f ollowi:ng additional offices on a trouble-shooting basis:
SLCRLT CONTROL
U.S. OFFICIALS ONLY
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.J . a y~l'1VItl~LF~ V~+L
.. 3
a. :ith the Berlin head offices of the various DUZ's whenever
negotiations between the local DIIZ'o and the individual SAG
factories have not produced results
b. ::ith the various producing: ministries (i.e. those which direct
the activities of t,ast "oYmran state-otmed factories)
c. Uith the L;act C:ernan .inietry for Interzonal and Foreign Trade,
as the body controlling tho activities of the various DIA's
(Deutschor Innen &.Aussenhandel), whenever the DIA'S have not
succeeded in i:porting goods needed by the ;:.V, plants
d. UIth the various DL headquarters in Berlin
e. ldith the individual factories in Last Cerriany which are potential
producers of raw materials needed by the SAC's
f. In the past, directly with representatives of Uest German firms
which were thought to be capable of providing the needed goods.
Lately, however, all contact with such representatives has been
restricted to Rudolf feumann.
g. Officials of the ZVE also attend the regular quarterly sessions
hold by the Last German government to discuss allocation of
rolling-quill products for the following quarter. These meetings are
attended by representatives of the AG's, the ni.nistries, the DIZ's,
the Office for 2eparations, the : ection for Government Orders
(Rogierumgsauftraegei, the A;inistry of the Interior, and the further
unidentified "Zeile 24" (Lino-21r) . The latter is usually represented
by some DIM official. It has boon observed that there is nevor, any
debate concerning the requirements of the "Ling 24" office, whereas
there are often heated arg Gents concerning the allocations for repar-
ations orders. The expression "Government Orders" is defined to
include all orders placed by the Rod ArV in Corm any.
u. I-ascellancous notes on the ZVK:
a. The ZVK was formerly located in the vinegar factory, Lieberman..
etrasse 126.
b. The various subsection heads within the Z'K deal directly with
their Soviet opposite numbers; that is, relations are not limited
to dealing through the chief of .,VI( with the Soviet co3ponent.
c. The predecessor of Calanov as chief of the Soviet portion of the
procurement section was F.ruteko, who held that post until early
spring 1953. Krut'ko is now said to be deputy General-director
of USIG, with responsibility for the Commercial Section. Galanov
was formerly deputy to Y.rut'ko in the procurement section.
"staskov has taken over Cal.anov'a spot as deputy chief of the
procurement section.
d. There was no connection observed between the ZVK and the Administration
'ox'? ;;r v-ict : roperty in Austria (USIA). If any contact exists, it
presumably is maintained through the Soviet components.
0. Krut'ko drives a medium-sized car of Soviet make.
f. Correspondence between I:osdow and ttSI3 is never observed in the ZVK
tho`. gh telegrams are often received at the z;VK office, usually
signed by one of the many Soviet importing agencies,
5. I:iscellaneous notes on LSIG :
a. About j -jerr:aanb and perhaps 200 Soviets are e.;tp toyed at DSIC in
Berlin-4eissenses.
vi.CRi T CONTROL
-3-
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i'C.tw:T CC.;T,f0L
01713"CIAIC ONLY
b. The General-director of USIG is IJebonin (fnu), who has held this
post since 1951. Babenin's predecessor was Trofi-nov. It was
rumored in the .3V1 in early 19$3 that Trofimov was again in Berlin.
C. =ror. prut'.;o, thur. are three or four o t'..ur de; sties to
Bobenin whose names are not known.
d. Direct interference by the SCC (Soviet Control Commission) in the
affairs of USIG was observed only in cases where USIG had attempted
to require 'oast German government offices to do more than they were
able to do or more than they were allowed to do. In such cases, the
Last German office concerned has ca~ lamed to the .:pertinent
control section of the SCC, which usually acted as mediator in the
difficulty.. No instance was observed, however, of direction by the
5CC in matters concerning purely production problems.
e. Those. goods which are ;roduoed in SAG plants under the so-called
"Konto-T" are intended for specific Soviet ministries, as opposed
to regular deliveries, which go to the usual Soviet importing
agencies to be re-sold to customers in the US51i. Such deliveries
are said to be based on the writing-off of mutual debts (gegenseitige
Verrechnung).
SI-CRLT CC TROL
U.S. OF?ICI "+LS Oi:LY
Declassified in Part - Sanitized Copy Approved for Release 2012/05/15: CIA-RDP80SO154OR002200020009-2