LEGAL PROBLEMS IN TRANSFER OF GERMAN PLANTS INTO RUSSIAN OWNERSHIP

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R000300690005-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: December 17, 1998
• Sequence Number: 5
• Publication Date: February 21, 1947
• Content Type: IR

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NO CHANGE in Class.
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0 DECLASSIFI--) -
WNW Class. CHANGL .40: TS S
SEt1.4.i0.' DDA Memo, 4 Apr 77
Auths DDA REG. 77/1763
Date: 71 Nisi, Iffil By:011___
CENTRAL INTELLIGENCE GROUP 25X1 A2 g
5)c1A2g
INTELLIGENCE REPORT
COUNTRY Germany (Ruaelan Zona)
SUBJECT Legal Problems In Tr4iefee of %man nezta
into Run Ouner3hip
25X1 A6a
ORIGIN
25X1X6
25X1A9a
RATE: 25X1 X6
INFO.
DIST. 21 February 1947
PAGES 3
SUPPLEMENT
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A. President of Lane Thuringia, Weimar, 8 October 146,
To: Soviet Military AdminIstration? Weimar.
Reference: ntxj;rise Tn le tLte Sov1 4G's on Account of
,J,ermatt
Your ordeL:, orclex,ning the transfer of ThuringLAn plants to the USSR'
on aCcoun'L of Geximn pearations is the baSis of forms? the termin-
ology of which is not clear, al exarinIng the legal form in which
thesa plaAt arc. otng transforrd to the 3ov1ot AG s, tho. follow-
ing must 'j.t coneAerad:
The t3der st,ipula:tes that the transVer of the ,plants concerned takes
pace on the basis of an apwaisal.which is .undertaken in?accordance
with, .instrtetions Qiven.tc.thn general manager.,:2.concerned by the -
=AD. Sinsc in.this.situation a fre. agreemenon the .object, and
especially a free establishment of the purchase price on .the part
of both contractual partners,is lacking, the existece of a sales
contract mutt .be denied. A sales telltraet presupposes that 'both
contractual partrers have arrived at an agreement on the basis of
free negotiation about otect and price, in the course of which
the 'object was transferret2 agait*it p..:1-ment of the sum which was
agree6 -01)L, The fact that neiter the Land Administration of ?
Thuringip. -nor its repr-asaLtativos chargpd with the plant transfers,
are ampowercd to sell: cach assets further militates against the
assumption cf the existnue of a sales contract.
As a consegvence,,the proccss of transferring- these plants into the
possession cf the Russian AGTs must-be legally interpreted to the
effect that. these plants are being expropriated by the USSR On
account of. reparations by Germany. ,In the. course of this trans'
action, tIv.plants are being evaluated in accordance with
instructions stipulated .in advance by the BMA.
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CENTRAL INTMLIGENOR GROUP
This Is ts to request the SMA to confirm that it is in agreement with
this legal interpretation.
Signed: Jah. Paul
B. President of Land Thrringia0 Weimar, 12 October 1946,
To: Soviet Military Administration, Weimar.
Further to my letter of 8 October 1946 concerning the transfer of
plants on account Of German reparations to the Soviet AGts, I should
like to bring the following to the knowledge of SMA. I have made
the contents of my letter of 8 October 1946 the subject of a dis-
cussion between all members of the Land Administrations of Thuringia
The legal position taken in the letter of 8 October 1946 was approve
without reservation by all members of the Land Administration. The
members of the Land Administration believe that in their present
position they have no legal power to give legally binding declaratio
concerning property of the Land Thuringia, and especially to dispose
of such property. Since the Land Administration does not consider
Itself entitled to make the above-rentioned legal declarations, it
Is, of course, not in a position to delegate similar powers to other
persons who have been charged by the Land with the transfer of the
plants. concerned.
Reports have been received from persons entruoted with the transfer'
that here and there they have been put under pressure by general
managers for the purpose of forcing them to Sign documents which
they do not consider themselves empowered to sign.
This is to request the SMA to direct the general managers through
the Central Office of Russian AGts in Berlin-Weissensee to abetain
from all pressure and the use of force against those entrusted with
the transfer, until this whole complex of questions can be clarified
Signed: Dr. Paul
C. (Copy of the translation from the Russian into the German.)
Administration of the SMA of 14 October 19460
Land Thuringia, Weimar.
To: President of Land Thuringia,
Prof. Dr" Paul
With reference to your letters of 8. 9,and 12 October 1946, concerne
Ing the transfer of several enterprises to the Soviet AGIs for
account of reparations to the Soviet Union I should like to explain
the following.:
On the baois of the order by the Supreme Chtef of the gMA in Germany.
Marshal of the Soviet Unicn Sokolovski. 'of 8 March 1946, several
enterprises in Thuringia ( a list of these enterprises is in your
possession) are being singled out for trans::er into the ownership of
the USSR on account of reparations.
I have signed an order for each of the anteeprises to be transferred
to be handed over by Germany to the USSR. Its formulation is to be
understood as a transfer of the enterprise named in the order to the
property of the USSR; i.e.. the writing over of the property by
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CENTRkL INTELLIGENCE GROUP
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-Germany into the property of the Scot Union. Therefore you must'
-formulate the powers given to your repreeentatives concerning the
transfer of enterprises into the property of the U3SR in such a
manner that the wording in the German Iressee.age-will leave no doubts
with anyone that these factories are not merely being transferred
into the possession of the Soviet AG, but that they will become the
legal property of the Soviet Union. (.,. dass die Formulierung in
deutscher Sprache bei niemandem Zweifel erwockt dardber, dass diese
Fabriken nicht einfach in den Besitz der Sowjet AG dbergeben werden,
sondem dass das Eigentum (Brecht) dieser rabrikep iibertragen
(iiberschrieben) wird in das Eigentum der Scwjet-Union)
The legal bases for this are the resolution of the Control Council
'-nu tha above-mentioned order of Marshal Soko1ovs7iA.
Instructions concerning the formalities of .the transfer, as well as
the form and tables for the appraisal of the value of the factories
and their equipment and plants, were confirmed by the Control Counct,
and must be carefully executed. As you hae been told in-conver-
sation, Harshal Sokolovski demands a speedy execution of formalities
In the transfer of the enterprises. Therefore you must undertake al
necessary measures so that i can report on the completion of this
work to Marshal Sokolovski on 16 December 1946A
Signed:_ Garda-Gan. Major Kolesnitchenko
Chief of the Soviet Mil. Admin.,
Land Thuringia.
* The German translation give 16 October 1914 as date of completion.
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