INDEBTEDNESS OF DDR TO THE USSR

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R009200320006-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 15, 2016
• Document Release Date: April 24, 2001
• Sequence Number: 6
• Publication Date: November 30, 1951
• Content Type: REPORT

-??
COUNTRY
? SUBJECT
PLACE
ACQUIRED
DATE OF
INFO.
, .1.?,LMOZA r
?. . ? r,
pr :rcf
, ? . ) r
AP PrPV ediWKile# LIAJ4 V.1114n P 8M0ethbj6
Vi.66(ii11X
N FO Pi A II 1,0 R E Nr)
C?N
Goray 03usvilan Zone)
NAL:
Indebtedness of DM to the US?
25X1A
CD
?DATE?USTT. 30 re 51
No, OF PAGES. 2
NO. OF ENCI.S.
(LISTED BELOW)
SUPPLEMENT TO
. REPORT NO.
25X1A
1. It har not been possible to confirm the renortee MP det of DI: 51,200 ,00n,000
to the'USSR, It nust also be assumed that such r deb account is lcnoma to n
restricted circle of persons only.
2? The 50% reduction (Haibierung) of tlio rcTlraLiorr, p':)yr:onto whioh the USa haN
promised for the years 1951 to 1965 represents only a sll!all reductlen of Gem.zn
paymentsr These payments will bnve to he used to fiunnc'e onLerprises in the
Soviet Zone which are not recognized as roPqrationu, On i,ho basis of nrevouo
experiences, it must 4)e ansumod that at least ,3,0n0,000,0f)0 PY -Ndli be paid out
yearly from the regular budget for this purpose. There nre no indications that
this siun will be reduced substantinfly. By multiplying the ye.c-Jrly payments of
?3O00r000,000 DM by 'the number of years between 1951 and 1265 11,15 yrJ.r.r8), It
will be seen th,tt the sun to be paid alnost eqyals the debt?
3. It is therefore justified to assume that, whore the Ger7,ans ere concerned, this
is a domostic account in which are entered all pay-lents of the, Soviet Zone to
the occupation authorities, including the payrionts net recogrAzed as
reparations by the Russians,
The following payments are not recognized as reparntdons by the Russinns:-
(1)
Subsidies:
25X1X
a). To enterprises required to mnke payments on the basis of the April 1944
price level (Stopp-Preise April 19/..11.),
:b)., For many industrial products assigned to reparations end whose price
level has been arbitrarily' lowered hy the Russians.
c)? Large sunsto basic industries, esnecinlly.te coal nining enterprises
In al] three of the above cases, considerable ul,,eidlos must be rade
from the domestic budget,, These solvddAes aro not recognized as re-saatious,
------
STATE NAVY? NSPS
ARMY AIR i F31 1
CI ItiS7.;S I FICIATION
1 r,
,? 1
., . ENTilki ..
f
1 R JUT1ON
Document No.
No. Change In Class. E]
1
..44Date: _y _91_
? Approved For Release 2001/12/04 : CIA-RDP82-00457R009200320006-3
? By: Aar_
Approved For Release 2001/12/04: cifirialninTrAt,,320006_3
25X1A
SECO nWORMATION
CENTRAL INTELLIGENCE AGENCY
(2) Large payment? to the occupation forces, which are not taken into
account by the Ruseians as reparations..
(3) The SAG concerns receive regular subsidies from the domestic budget
These subsidies total millions and, on order of the Ruesians, mat
be paid from the budget. On the other hand, SAG profits, whAeh are
oonsiderables are credited to the Russiens. These profits cri easily
converted into goods by the Russians because of their control of in-
dustrial production. In addition to their regular reparations, this
has enabled them for years to channel a stream of goods to the Soviet
Union from the Soviet Zone of Germany. For the population of the
Soviet Zone, this represents a continual loss.
( )
The Wismut AG is financed exclueively from the DER budget. This
amounts to an estimated 700,000,000 to 800,000,000 PM per year.
All shipping costs, including insurances packaging, etc., are borne
by the DAR. On the basis of a Russian order, delivery of the ropeeations goods is made f.o.b. destination. The Russian shippIng come
pathy DERUTRA holds the monopoly for shipping reparations goods. This
company receives approximately 65,000,000 to 70,000,000 DM yearly
Furthermorea, considerable subsidies are made by the Soviet Zone yearly
to ease credite. (Verbilligung von Krediten).
All reparations goods are inspected for quality when they arrive at
destination. This inspection is extremely severe and quite arbitrary.
There are no Germans present during these inepections. Without suf-
ficient grounds, wares are often classified as being of second or n_
even third quality and entered in the books at a lower price. Ito
consequent not inconsiderable differences in price must also be borne
by the DrR budget.
5, The Russians have set their reparations demands at 10,0000000,000 dollars
worth of goods but recognize only one-third to one-half of the real value
of the Roods delivered to them. This divergence between real cost and
the value net by the Ruasians is probably the explanation for the existenee
of the high debt account kept by the Germans (probably in the Secretariat
of the State Secretary for Finaneep)0 in which is entered all real amor-
tization of the DER reparations debt. Officially, of course, it is etated
that reparations demands are moderate.
CONFIDENTIAL
Approved For Release 2001/12/04: CIA-RDP82-00457R009200320006-3