STATUS OF SAGS AND STATE-OWNED ENTERPRISES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R001500920002-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 16, 2016
• Document Release Date: September 11, 2003
• Sequence Number: 2
• Publication Date: June 7, 1948
• Content Type: REPORT

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COUNTRY
I N FOR MATI
Enterprises
G:.AS,:III- ICA] ION ur;(`
EINTR~112
Approved For aeas 0j%
Germany (Russian Zone)
SUBJECT Status of SAGs and State-owned
PLACE
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ACQUIRED
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DATE oW I!.FC
U. S. C.. St Aft Si. AS AMENDED. ITS TRANSUISSION OR THE RCVELATIOIl
OP ITS CONTENTS IN ANY WANNER TO AN UNAUTHO81ZSD PERSON IS PRO-
HISITED BY LAW. REPRODUCTION OP THIS FORM IS PROHIBITED. HOt.
AMER. INFORMATION CONTAINED IN BODY OP THE PORN NAT 88 UTILIZED
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Comment: There have been numerous intelligence re ort
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.~.?^, from the 1
DATE DISTR. n June 1948
NO. OF PAGES ' 2
NO. OF ENCLS.
(LISTED BELO'WI
SUPPLEMENT TO
REPORT NO.
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THIS IS UNEVALUATED INFORMATION FOR THE RESEARCH
USE OF TRAINED INTELLIGENCE ANALYSTS
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14 Fritz Selbmann, deputy chief of the DWK (German Economic Commission),
is reported to have said that all. SAGs (Soviet Stock Companies) in
the Russian zone are soon to be transferred to state ownership.
They are -then to be administered by the DWK without interference by
Russian authorities at Karlshorst. Selbmann stated that only ten
per cent of the production of state-owned enterprises is to be
25X1taken by the SMA for reparations.
p 0 an
per predictions that various SAG plants are to be turned over
to state ownership. For those that have actuall
b
y
een released by
the Russians during the past year the rinary reason appears to be
that they were operating at a deficit.- In almost all cases useful
machinery was dismantled before transfer of the factories to German
hands. The statement that reparations demands will be reduced to
10 % appears extremely unlikely..
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is striking how little effort is made to 25X1
ex an the s or to repair their buildings and machinery.
there is a general directive to all SAGs forbid
e investment of any funds in the SAGs. Thus, in the case of the
Schkopau Buns plant,,the Russian authorities appear to have no
interest in increasing production,which is at present far below
capacity. The chief of an SAG coal--briquette combine in Saxony-
Anhalt expressed his belief that some such directive against in-
vestments exists.
r
portance are to be grouped in a super-trust to be administered bye the DT1
In Thuringia the Zeiss plant at Jena, the Unterwellenborn steel plant, and
the Henry Pels machinery plant at Erfurt are scheduled for inclusion in
this group. Pets is at present still an SAG but is operating at a con-
siderable deficit,
1200 factories in the Russian Zone considered of
' -1-
i .e regraded to
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Fi 'AT1190457R00' 6
PORT
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4.
Thuringia
on 12
April
tion, but
it had
been
to their owners.
The
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CFNTf2AT. III` 't
r1w 1 AGENCY
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1,200 Iir?ms became state owned in
1948. These firms had been under sequestra-
anticirated that some 300 would be returned
total number of Antprnrlqpq in Thuringia
(including one-roan enterprises) Is set at 6,Oeo,of which
1,}500 are now state-owned. These state-ownea p ants are to be
administered by a separate ministry, which is expected to become
much more important than V-e present Economic Ministry, which will
have authority only over private enterprise,
Approved For Release 2003/12/ : CIA-RDP82-00457 R001500920002-6