TRANSFER OF CONTROL OVER SAG PLANTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-01036R000100040001-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: October 27, 2000
• Sequence Number: 1
• Publication Date: November 23, 1953
• Content Type: REPORT

Approved For Release 2c01 103/@4a:1 ClAr DP81-01036R0001000 0qe-6
SECURITY INFORMATION
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT 25X1A
COUNTRY Germany (Soviet `Lone) REPORT NO.
RESPONSIVE TO
SUBJECT Transfer of Control Over SAO Plants
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25X1A CD NO.
PLACE ACQUIRED
(BY SOURCE)
DATE ACQUIRED
(BY SOURCE)
THIS DOCUMENT CONTAINS INFORMATION AFFLCTINO THE NATIONAL DEFENSF
OF THE UNITED STATES, WITHIN THE MEAN INO OF TITLE IS, SECTIONS 793
AND 794, OF THE U.S. CODE, AS AMENDED, ITS TRANSMISSION OR REVE-
LATION OF ITS CONTENTS TO OR RECEIPT BY AN UNAUTHDRIOED PERSON IS
THE T
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THIS IS UNEVALUATED INFORMATION
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DATE DISTR. %5 Nov 3
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REPORT NO.
On 23 Sept' 53 all general directors of SAG plants were summoned to an
important conference at Karlshorat. Only one representative of each ministry
concerned took part for the German side, The meeting lasted until 26 September.
2. According to a report of the Ministry of Foreign Affairs, there are at present
95,322 workers employed in the SAG plants, of which 226,112 are employed at the
Wismut AG alone, The SAG plants are organized In thirteen groups as follows:
SAG Wismut, SAG Br'r.,:ett, SAG Kaustik, SAG Kautschuk, SAG Zemen~, SAG Kali, SAG
Synthese, SAC _ Transmasch, _ SAG. Amo, SAG Minerald iger, _SAG Awtowelo.. SAG Kabe ,,
SAG Marten. From 1 Jan 54 these groups with their capacities will. be
p'. aced at ?the,.disposa..L of the national economy.. On this ground, comprehensive
plans and changes already have been prepared by the various German ministries.
At the same time funds were to be made available for the plants, because the
subsidy funds of the Soviet Kredit-und Garantiebank were to have been shut off
at the beginning of August, . Now it appears from this report that the Soviet bank
suddenly has made available a running credit of 200 million rubles for,. the 33
SAG plants, payments to run from 1 Oct 53. , For these funds the plants must
pay interest at 4,5 percent, a rate set by the NarQdny Bank in Moscow. At that
date, all SAG plants must make exact reports of. their available.. capital; not only
the plant capital, but also materials on hand, and accounts receivable must be
registered. The credits can be revoked at four-week periods. The further condition
is attached that the several production groups shall have their. own representation
through state secretariats in the respective ministries concerned, Up to now,
eight secretariats have been proposed. The plants will retain their present trade
organizations. The secretariats, and not the ministries, will decide about
supplies of material and apportionment of orders,
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SECURITY INFORMATION
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3. Control, however, shall be tributary to the German administrative authorities. Until
now the SAG plants have possessed full freedom of control. The finance plan for
1953 and-19.54 has not yet made provision for these extra expenses. A meeting was
held in the Ministry of Heavy Machinery Construction on 29 Sep'53?to,deeide how
clearings will be made for goods delivered after 1 ion 54. Through the
freedom of management heretore enjoyed and the existing credit system, it was
possible for the SAG plants to make clearings on the basis of the prices of 1938,
4. Among the Germans,-plans for these plants are being proceeded with very carefully,
because up.to now no firm agreements over immediate details have been made between
the government offices and the main office of the SAG in Berlin-Weissensee, The
Germans are also waiting for the Soviet claims for money for the capital laid, out
on the SAG plants, This relates mainly to machinery bought abroad by the SAG
main office,
5. The Wismut AG remains in Soviet possession, It will have its own referent in the
Ministry of.Mines. It will also in future (after 1 Jan ue
51 same fully the
social security contributions now administered entirely by German Social Security.
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