STATE CONTRACT COURTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-01036R000200030087-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: February 2, 2011
• Sequence Number: 87
• Publication Date: April 16, 1954
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/02/02 CIA-RDP81-01036R000200030087-5
ECR,AT
CENTM4 IIITIEUJOENCE AGENCY
N off
COUNTRY
Germany (Soviet Zone)
:tate Costraot courts
DATE DISTR. A` Apr 154
NO. OF PAGES j
NO. OF ENCIS.
SUPP. TO
REPORT NO.
T h e state Contract Cobs of Skeft" Zone Government are :art important part
of the ecoao .o pl#uan . setup, snd fie the binding element betty an ecan mlc
planti ng and thi MC~y for the esults. They work under the motto
""Contract .d i S. ailit 11 1 Outs
24 The 5Late 0" *0 direr y'coder the Premier. with its lower
organs it is b;% talled close is the district councils and has to
m eke aeclslons on contracts for the various airristries. The to=J r contract
courts work directly under the government and not under the president:, of
the 0L triot sounails or the ret:ponsible minister:..
cr,
The presidents of the cistriet contract courts are selected by the :'r-m..
while the heads o arbitration commissions must be confirmed by the t 2'trict
lea c resnip of. the SED.
4.. Various peoples industries fill under the generei contract system, an:' ,,i.,:
retauix,e i to produce.: contracts . in sesordanse with the plans laid before tae;,i
within 30 days Of being advised. That is, a peoplets r'r dory f receive;; tint:
pl-'n for the prQdwti n of scheming, and 1s now require' to close oontr^et >
vith thf suppliQrs of raw Materials, as well as with the receivers of the
finishci goads, ' in sued a Qenner as to tnslare the fulfillment of the plan In
t .rn,:. Thee ovrl:traits rust be registered with anc approved ty the ? tote
Crr-tr ct Court.
_rt dr cm visa ss d do eeI$%u or, dno;h de Auiua t D'reaw of die ( d CA @W Dim::,. t'vm. V . AU ct pup of do swavo r;.
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Sanitized Copy Approved for Release 2011/02/02 : CIA-RDP81-01036R000200030087-5
 Sanitized Copy Approved for Release 2011/02/02 : CIA-RDP81-01036R000200030087-5
-dr
50 Slew Os'Abo r. ' 0 : rasa tM . t 'osw~s t -'ott'hos, was, reorganised, private
lMMlsieles are arq$e$ to resegwise the soaventional penalties for non-
hiti2 u $lmao qN dSaNiri of the Chamber of Industry and
Oe~reeee~ in road 195 the W .pssivats, iniostirial , star has berm ~ brought
umber we general contract systemm. There has been no relaxation under the
saw mecca., 81WArgh ens has been a need.
`. The $ IW'- low for the Contrast Court and contrast system are.,
Me new order for the setting up and activity of the State Contract
as" (LOW 51 of 1 aul 53).
be The seer for the prosedore of State Contract Courts (same law).
S. 'lie order for the iastallatiew of the general contrast system for
peepis4e inMatliss and those resembling them (Law 185 of 1 Dec 51),
d?. Tat I to 5 ions for the carrying out of this order (Ministerial
'wail
44 ': 7 v1,1Y'CSCS +
7?
IM food prolmeinh tries have bow planed under similar regulations,
or 1m11i* Mir 6t h ties br ". ie l: mpsrtlsnCw
?? Oeaieaets salts quantity, tjjw, ntturslet~ sec, ..,. sty, delivery
fists, and most sally penalties, for sarple 001 perm`` bf vwftlula-mac
Ms Seeds tier ft~ dy!s delay in delivery, 0,05. percent of. the value of the
ails fir MN1 s Se i i gn meat.
9. 0a the rest of hie pis to a oostraat, the Contract Court considered the
sass. It also sn Mme pietUreif one party has not made good on a penalty
or rbeR.aus party t Wish to enter a binding contract, One of the
parties east. to a iazsj-. If' both belong under the same ministry,
the court a$t+MN~ad to' that ministry makes the decisions.
10, The district Contract Courts have )urisdiction over all the industries in the
district with resold to the closing and breach of contracts, and their
authority is um+li*ted exempt in the ease of a basic question which must. be
hamiled by the rest Oorrt of the MR. For centrally led industries the
dis$rts$ 'scout handles Wesebes of ' oontraot up to 10,000 DM and the closing
of contrasts up to 100,000 pl. Snsms larger than this are. considered basic
+wstioms, but thmM him Centrist Court may delegate its authority to a
dS ir1et court, ]h' esses of bra sh, the location of the damaged party determines
lsh court" shall . handle t e sue.
11? 1mNOtar as po$sib1s the eoatras$-courts are to handle matters verbally and
t- oerstlasiosi of tM dims party. Any agreement in the course of a
ease is not nllow~{d to be in conduct with the economic interests of the DDR
or the tulfIllsmsnt ot. the plan, but should further these interests. If there
is no agrsemeent-'WitMisms the parties the -court gives a decision, The party
losing the case 21Hallowed an appeal from the district court to the Contrast
Court of the DM within five days,
Sanitized Copy Approved for Release 2011/02/02 : CIA-RDP81-01036R000200030087-5
 Sanitized Copy Approved for Release 2011/02/02 : CIA-RDP81-01036R000200030087-5
SECRET
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12. Contract courts say punish heads of industries who have breached contract
discipline within up to a month,a confinement; and may fine industries unlimited
sums when theylmve not fulfilled orders of the contract court within the
time allowed.. For especially contumacious breaches of contract discipline,
the contract court may order penalties without limit. Imprisonment may be
allotted Pon 4~, :*pel>let~nb :of P~ASihti.*s. +.: ;;> + ; >
13, 53., the c ntract courts
? Aeeq n&t Ag the order of 1.Jul may order:'industries
which' have not paid on ~ > 1- ?U 4ot~ w ,t '0" iWU ~.
seven days, this order has the force of a legal decision.
14. In the verbal processes a commission is set up consisting of a president, who
is a-Member of the4ontract court and two members from industries similar to
those involved,
15, The president of the state contrast court attached to the council of the Potsdam
district is Willi Osterburg', a banker, born 25 Nov 11. He is a violent member
of the -M v. In 1945 he was in the Rathenow Chamber, then head of the financial
section of thR,;industrial section of the Brandenburg state government, then
third director of the:_Oer an note bank 'in Brandenburg. Member of the National
Front. L1,v~t+s.: in. 1azn h ieersei irfe~rstras`se.
16. His secretary is Mrs. HelgaLirWenticrg,'a member of the FDJ (Free German Youth).
17. The president of the decision aommission'tar food industries andagriculture
is Heinz Walther,,"born 3 '; n '05, a textile merchant by profession. The
president of the deO siiii- fission for heavy industry, energy, water power,
machine ecnstruetio i ehiSi liylas,,'aeat and transport is Ernst Hermann, about
36 years old. He 'a st SED man and has SSD connections. He is assisted
by Herbert Pasoheelc' about 26 years.. old. The president of. the decision
commission for 11gh industry, the building industry and similar matters is
Johannes Quallmaiz, about 32' years old, with. only one arm, He is assisted
by Heins Etzsahke, about 33 years old; he does not have the confidence of
his eolleagues.
-. r
6EUR. ;12
Sanitized Copy Approved for Release 2011/02/02 : CIA-RDP81-01036R000200030087-5