(SANITIZED)WEEKLY SUMMARY (SANITIZED) MISSION OF NEW SOVIET AMBASSADOR TO E. GERMANY AND SOVIET ECONOMIC INFLUENCE(SANITIZED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80T00246A041400110001-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: December 22, 2016
• Document Release Date: May 7, 2010
• Sequence Number: 1
• Publication Date: March 17, 1958
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
This material contains information affecting the National Defense of the United States within the meaning of the Espionage Laws, Title
18, U.S.C. Secs. 793 and 794, the transmission or revelation of which in any manner to an unauthorized person is prohibited by law.
COUNTRY East Germany
SUBJECT Weekly Summary DATE DISTR.
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STATE X IARMY X INAVY
X jAIR
~iFBI
AEC
I'NFORMAtION REPORT INFORMATION, REP'O'RT
0
1
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3. Nav
I. Inland Negation
The USSR is trying to intensify passenger traffic on inland
waterways by mass production of small Diesel passenger
vessels. In particular, this traffic is to interconnect
oitiei with their suburbs. The first vessel of this type,
RAKEE.Pk, average speed 37,8 knots, was employed in line
traffic between ;orki and Kazan (press).
II. GDR
1. Merchant L13
According to a press report, the VEB Deutsche Seereederei
Rostock was ordered by the GDR Ministry for Foreign Trade
to investigate into possibilities for chartering tonnage
presently not being utilized The present
tonnage demand of the GDR was reported to exceed 250,000
'GET.
Comments The report is interesting insofar as tonnage
available in the GDR has not been utilized recently. The
10,000-ton freighter FRIEDEN f.e. has been berthed in
Narnemuende harbor There are allegedly
no orders for the freighter available. GDR delivery firms
prefer to execute their export deliveries with
vessels via Hamburg on the grounds that in the
GDR, goods were handled without care as a result of high
work quotas. It is assumed that the report was launched
because of the following reasons:
Either for a more propagandistic effect with a view to
the downward tendency of the ocean freight market;
or because the GDR determined on the basis of estimates
that expenses of the Deutsche Seereederei were
o io gh and that it would be more economical to use
Western charter tonnage (press). )
2. VEB Schiffbau Proiektierungs- and Konstruktionabuero
Formerly: Zentrales Ehtwicklungs- and Konstruktionabuero
(ZEK),
JECREY
NOF06tN
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The VEB Sohiffbau Projektierungs- and Konstruktionsbuero
(ship construction planning bureau) (VEB SPK) was located
at-129 Seelenbinderstrasse in Berlin-Koepeniok, telephone
No 650281. It was subordinate to the HV Sohiffbau
(shipbuilding) in Berlin (chiefs Herz Homburg).
a. The VEB SPK was headed b Naval Constructor 7ilhelm
Stollberg The following
divisions were directly subordinate to the VEB
managements
Cadre iv
Labor Div
Frau Gartrud Die
Otto ; Krosohel,
1,
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Commercial Tlanagements Fraeulsin Erika fiuebner
Accounting Office $ Walter We
Bureau for Inventions Karl i1artin
(patent bureau)
Central Office for Erwin Lonsle
Standardisation $
Planning Div i :Sistuach
Research and Development
Div = fnrrnorl y yna RnA nl f (:itiel AnAr_
Library s Ursula Behrend
F
Interpreter Section s Henke,
Technical Library $ Frau Gertrud Wills
Photostats and Photo- Gueldno
0Dr Ing Fritz Stateczny
Section Technical Construction Ships.(TKS)s
Liechanical Ina Herbert Ulbrich.
Section of Machine Ing Fritz Linos
Construction (TK.1) $ member;
Section Furnishing (TKA)$ Karl Heins 17iu
Section Norms (TKN) s Ing Erwin Lions er
Calculating Section Ina Albert Schmid.
Ship Construction
(TKPS) s
Calculating Section Ing Thoremin
Machine Construction
(TKPLt) s
Electro Section (TKE)$ Ing Hans Gerlac
Planning Section : Egon Gie"oh
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MCRETF RN
c. Attached to the TED were the Bureau for Planning of
Shipyard Installations, in Berlin; the Bureau for
Planning of Cinches and Equipment, and the LTodel-
Testing Tank Establishment Berlin-Karlshorst.
d. The TEES maintained also connections to the Wolgast
Engineering Bureau; the Institute for amine
Construction, formerly Rosslau, now Ludwigsfelde,
chief Ing Boehm*; and the Lachine Factory Torgelow.
(1) 10,000-tdw freighter type IV (Aarnow Shipyard)
ordered by the USSR. Instead of the planned 4
engines (totaling 7,200 HP, 14 knots), vessel was
furnished with turbine plant, probably of 2 x
5,000 IIP, in order to reach speed of 17 knots.
(2) 8,000-tdw'coal/ore freighter (Neptun Shipyard);
(3) 'whale factory ship YURI DOLG0ftUI I (Warnow Shipyard);
(4) Railroad ferry (11eptun Shipyard);
(5) Inland Freighter (intermediate order);
(6) 1 floating ,dock for Wismar, project postponed for
undetermined period.
(7) Reconstruction of D 2500 :iercedes Diesel, 8
cylinders (and/or 4 cylinders), in cooperation
with Ehgine Plant Ludwigcfelde. LIajor deficiencies
on crank shafts.
(8) Tests with 750-HP opposite-piston engine (special
difficulties with piston deliveries).
Um/See apparently particularly interested in
projects (7) and (8).
(9) Orders for training ship and I. ocean-going tug were
postponed.
(lo) Ship's turning cranes with a capacity of 5,9 end
13 tons.
(11) Cable burying vessel.
f . General
The large shipyards have for some time been requesting
that the FEB Projektierungs- and Konstruktionsbuero be
dissolved, so that they can handle the projects by
themselves. A decision on this question is not expected
in.the near future; it is, however, belioveL that
drastic personnel cuts will be effected
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NO ORN
F. Premilitar4 and Paramilitary Training
Poland
Interior Troops
In Nov 19579 one KD7 regt, was stationed in Ar erburg, 25X1
in a section of the barracks southwest of Loetsener Strasee
(Ql.. Gisycho). Same installation had previously been occupied
by a WOP unit which had been transferred in winter 1956/57.
The rogt was fully motorised and equipped with about 300 vehicles,
inal Jeeps, GAZ-67 Be and GAZ-69s. Soldiers wore dark-blue cap
bands. Commander Major Irafosik and at least five captains of
the regt were allegedly of Russian nationality. Unit has been
observed at infantry and motor vehicle training at various
locations of Kreia Angerburg. No h'v weapons observed. In add
to the KBW regt, one by and two inf battalions were
stationed in Angerburg 25X1
Convents Withdrawal of the NOP-unit from and quartering of a
IBS-regt in Angerburg reported for the first time.
observed in ?arsaw in 1954. Number of officers of alleged
Russian nationality with this Polish KBW regt stationed in
immediate vicinity of Soviet Border, worth noting. Major
Krafosik possibly identical with one Lt Col Krafosik, who had
been signal officer with 6th K % Regt (Kattowits) in 1949.)
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A. Political-Economic
,SECRET
1. Situation in the GDR
The appointment of economic expert Pervukhin as Soviet
Ambassador in East Berlin was obviously effected under the
impression of the violent discussions on the future economic
course of the GDR at the 35th Plenary Session of the S3D
Central Committee. Uoscow is highly interested in an
overcoming of the present'staanation of GDR economy, mainly
because the fulfilment of export obligations of the GDR
toward underdeveloped countries is of great political
importance. It is assumed that Pervukhin has been ordered
to control the reorganization of the economic administration
of the GDR and, particularly, to make for a raising of
productivity in the field of machine, electric and chemical
industries. In addition, the GDR economy is to become more
closely connected to the East Bloc economy, while norms and
standards are to be coordinated to Soviet norms as soon as
possible.
Losoow probably considers predominantly organizational
measures, assuming that such measures would considerably
improve the East German economic situation. It is undetermined
to what extent Pervukhin also takes this view. It appears that
an essential strengthening of the Soviet Zone economy would
depend on an extensive Soviet economic aid; it cannot be said
whether or not the USSR is ready for such a support. No
principal change ,of the economic course of the GDR as f. e.
toward a certain liberalization, is expected to result from
Pervukhin's appointment. At the most, it is possible that
collectivization will proceed at a reduced speed and that the
present sharp course toward the workers will be moderated,
since prevalent tensions 'hate an unfavorable effect on the
planned raising of productivity. Even a compromise in the
question of norms would already considerably complicate the
necessary reduction of prime costs.
Ulbrioht apparently believes that prevailing difficulties
can be overcome by increased pressure in various fields. It
is quite possible that, regardless of their common ideological
basic attitude, there will be differences between Ulbriaht and
Pervukhin who holds practical economic views and may lend an
ear to SED party technocrats, thus strengthening their position
within the party.
It cannot yet be said, however, if Pervukhin will be successfull
in his task to follow a line which reconciles the political
concept of the Ulbrioht courae.with economic requirements.
Neither can any conclusions be drawn'with regard to the
outcome of the struggle within the SED leadership.
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SECRET
NDFCRN
Possibilities for the future economic course are very'
restricted and Pervukhin's relation to the SED leadership
is principally determined by Zsrushohevve,directives.
However, Ulbrioht is still considered the most reliable
guarantee for the Soviet status quo policy.
So far, Pervukhin had been chairman of the State Committee
for Foreign Trade Relations. On 4 July 1957, he had been
reduced from his position of full member of the Central
Committee Presidium of the Soviet OP to candidate. His new
assignment does not represent a promotion but rather a
position corresponding to the previous one. There is also
reason to believe that Khrushohev wanted to remove this
leading party technocrat from the central board. Pervukhin's
now task, the successful carrying-out of which, for the
abovementioned reasons, is most improbable, might turn out
to be the beginning. of his final degradation.
2. German.. Question at Talks between Rapacki and Gromyko in Moscow
The talks in Liosaow touched also upon the German question.
Poland gained the definite impression that, for the time being,
Moscow does not consider any alterations in the question of
the German reunification.
Rapaoki had to make a binding declaration, according to which
Poland was to react quickly and definitely negative on
statements by oppositional circles that, in this
questionn,, "Poland's attitude differs from the Soviet point of
Comment: Polish press reports, aw well as Gomulka's Times
Interview, - in spite of the latterwa being adapted to the
public opinion - indirectly confirm this Soviet move.)
3. Marshal L'alinovski's Visit to the GDR
Marshal Malinovski stayed in the GDR from 12 to 14 February.
In talks with Gen Zakharov, Commander-in-Chief of GSFO, and
GDR Defense Minister Stoph he discussed questions of military
cooperation between the Soviet Army and the NTA and the
withdrawal of 40,000 Soviet soldiers. On 12 February,
LIalinovaki, in East Berlin, lectured to NVA polit officers
and SED functionaries in charge of military questions. In his
speech, he stressed the necessity of cooperation between the
working classes and their'armed forces-and stated that,
naturally, the latter had to subm# completely to the
political concepts of a M rxist?Leninist Party
Meeting of Military Committee of