METHODS OF EXPROPRIATION OF SMALL BUSINESS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R002400080001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 19, 2016
• Document Release Date: March 29, 2006
• Sequence Number: 1
• Publication Date: February 21, 1949
• Content Type: REPORT

Approved For Release 2006/04/13 : CIA-RDP82-00457R002400080001-0
Approved For Release 2006/04/13 : CIA-RDP82-00457R002400080001-0
 FORM NO. 51-4A
SEPT.1948,
COUNTRY Germany (:Russian Zone)
$J$JECT Methods of Expropriation of Small
25X1 Business
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'THIS DOCUMENT CONTAINS INFORMATIONAPPECTIHG THE NATIONAL DEFENSE
OF THE UNITED STATES WITHIN THE MEANING OP THE ESPIONAGE ACT 30
U S C.. S1 AND 82, AS AMENDED. ITS TRANSMISSION ORTHE REVELATION
rn.rrc 4c rw SPIV ULRNFS YO AN UNAUTHOTtISEDPERSON IS PRO-
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9 800
CD NO.
DAT DISTR. 21 February., 14c
NO. OF PAGES 2
W-W
THIS IS UNEVALUATED INFORMATION
p'oilowing -the 'campaign -fore the expropriation of big business ,
the German Economic Commission and the SED have now been asked
to direct their attention in 1949 to smaller. enterprises,
namely to artisans employing five or more persons, and to
mmq cial enterprises (particularly retail shops), employing
three or more persons.
Ever since the currency reform, German business men have been
permitted to keep on hand only such cash amounts as were required
for meeting their obligations during the next four to six days.
They were ordered to deposit. all. money in excess of these needs in
accredited banking institutions. However, these-instructions were
only partly followed, and this fact is now the opening wedge for
the 5'ED, which, through the "Volkskontrollen", started in December
1948 to have spot checks made in smaller enterprises. Any enter-
rise found to possess dash in excess or the amount needed during
or of violation of the law against hoard g of money. Tfese
violations are punishable by a fine w' however, is set so
high that it cannot be paid out of t ng`funds, of a small
loan from a banking institution ( the concern comes
under the supervision of the "Volk to offer his
plant for socialization.
The Price contro1~and the checking of st ne purpose,
and. likewise involve a high fine where off However,
only in rare. cases can it be proved that pur prices
are too high or that goods have been hoarded. ILLEGIB
4. Small enterprises and shops will be advised to su
from small business owners who fear that. should the politic
during December 1948; however, it encountered strong oppol
are members of the SEP. This procedure was'tentatively
recomMendation will be made regardless of whether or ft'
acitrd a request: for the expropriation of their ent
situation change, they might be accused of having supported t
LLCI~Its
M roffIX p and suffer reprisals. They argue, &n the other hand
31iCAT16N I
WAIF I
is doc+31meru is hereby reg?aded to
i`,I~ IDl r4 .IAi_ in accordance with the
f i 3 October' 11-78 from the
.er rec citor of Central. lnteli'gence to the
chivist of the United States.
 ILLE.GIB
Approved For Release 2006/04/13 :, CIA-RDP82-00457R002400080001-0
SPEC
CENTRAL INTLLIGENC$ AGENCY
Small enterprises are to be absorbed whenever possible by the
steadily growing. cooperatives of the Soviet zone. This applies
not only to small retail shops which are to serve later as
distributors, but also to small workshops and concerns making
food, textiles and other consumers! goods.
According to the
latest instr coons of the German economic `Commission, all
rationed goo s) except in a few isolated cases mus?, be delivered
by producers di ecti v +n . i
WARNING NOTICE: TH+S DI:.IRIbUTION LISTING MUST RE
EXCISED BEFORE PUBLIC RELEASE OF THIS DOCUMENT,
ed For Releas20_ CIA-RDP82 0~5J~Q`2
1 L
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