ECONOMIC COORDINATION IN THE SOVIET ORBIT

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP82-00457R009300480006-8
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
4
Document Creation Date: 
December 22, 2016
Document Release Date: 
June 2, 2011
Sequence Number: 
6
Case Number: 
Publication Date: 
December 6, 1951
Content Type: 
REPORT
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PDF icon CIA-RDP82-00457R009300480006-8.pdf387.89 KB
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50X1-HUM Sanitized Copy Approved for Release 2011/06/04: CIA-RDP82-00457R009300480006-8 COUNTRY Germany (Russian Zone )/S3/astern Europe DATE DISTR. 6 DEC 51 SUBJECT Economic Coordination in the Soviet Orbit NO. OF PAGES 4 NO. OF ENCLS. ACQUIRED DATE OF INFO. ,1,'~~ATNS?INF IRMATION AFFECTING THE NATIONAL DEFENSE OF`THE UNITED STATES W HIN`'iNE MEAN~'HF. ~OF~THE ES (SNAGS' ACT "S8 `~ U ,S. C.,97 AN 32, AS AMENDED. ITS TRANSMISSION OR THE REVELATION {gyp' (Osf 1 c[t~ TO AN UTFAAtTHORTZED PERSON ISPRO- ~FtB1 D ax -,AW. , (.P 4 ._.. o aF THrs `F'b'~'fM` s.__PntfS~mift5`. " SUPPLEMENT TO REPORT NO. THIS IS UNEVALUATED INFORMATION 1. The p :unary' dasCtissions of the Committee of Mutual Economic Aid (CM A) in MMsdow hoe no t pro cessed as rapidly as had originally been hoped and it now considered un ilzeiy that the eomnitteets find. recommendations be avt.ilable lDef'or=e A6,g~.ist . A DDR delegation head ed' by Kurt Gregor, Soretary -of State of he Ministry of Foreign: Trade, and Muth of the Stq.tis- tieehes-Zentralamt (Central Statistics Office ) of the State Planning 6o? - miaaion, which was to have left for ?,,Moscow in May for discussions on the e-atablishment of a unified statistical and accounting, system among members of the Soviet bloc, is still in Berlin awaiting instructions. ( An agree- went' in this sphere is regarded as an indispensable prel minary to the suc- cessful conduct of the actual trade ne otiations, members of the DDR trade delegation do not expect to leave for. Moscow before late August. 2. The var-ioue officials who have been called to Moscow during recent months to give advice on problems of a spec hlist or technical nature do not par- ticipate in the deliberations of the committee, but carry on entirely in- dependent discussions. When these are complete a summary of the proceedings and the recommendations resulting therefrom is laid before the committee, which may either accept them or refer them for further consideration. Any information which individual experts may acquire on tho vie-,,Ts of the coilm.ittee is therefore restricted to a single sphere. 3. The DDR trade delegation to Moscow will c6nsist of the following: Head of delegation; Heinrich Rau Geoff g Handke President of the State P timing C mm esion. Minister of Foreign and Domestic Trade. inister of `envy Tn- der f `inister of Machinery 50X1-HUM ARMY Sanitized Copy Approved for Release 2011/06/04: CIA-RDP82-00457R009300480006-8 Sanitized Copy Approved for Release 2011/06/04: CIA-RDP82-00457R009300480006-8 SEC/ROL U.S. OFFICIALS ONLY RMAT ION CENTR#!L z W1Y AGENCY Dr, Heinrich Bertsch Dr. Lange (fnu) Staatssekretariat Ma.terialversorgung (State Secretariat for Materials Supply), State Planning Commission. Ha.uptahteilu.ngsleiter Wissenschaft u_nd Technik (Ohief, Scienco and Tech- ~ol.ogy Division), State -ling Commission, 4, In addition to the above, several other officials have been provided i,ith provisional travel permits and informed that they may be required to pay brief visits to Moscow as advisers during the couzso of the negotiations. These include: Chief, Hatiptverwaltung Schwermaschinenbau (Heavy Na:hinery Construction Di,ision), Ministry of Macai.ne Construction. (2) Wilhelm Friedel Deputy to Wolf. Hotter (fnu) Abtei; zngsleiter Chernie (Secti7n Chief, Chemistry), Staats;mkretariat Material- versorg ng, State Planning Commisston,. Muth ?lT.ti s-c'hes Z tral..a:mt. (1) Erich Kramer Gonera.ldirektor, '~eichsbahn. (I) And' ) 5. In accordance with the general trend of current economic policy within the Soviet bloc, there is now a. regular exchange of information among the,alan- ning nietries of Soviet bloc countries. The sole exception is the,U%R itself, which releases no figures of planned and actual production or .ports. From all other members the DDR receives monthly reports on imports and p;o_ duction, as well as details of planned production and imports (both short and long term), current bottlenecks and other difficulties encountered, axd a certain amount of information on technical and scientific development.. Within the State Planning Commission only Rau and his personal assistant Kur-, Zinke?,-'who also heads the B:ro f1r Fragen der gegenseitigen Wirtschaftshilfe SECRET/CO OFFICIALS ONLY I Chief, Haiptverwaltung Steine uni Erden (Stones and Ceramics Division), rTinistry o'.. Heavy Industry. Hauptabteiltng (sic. Haupt Sanitized Copy Approved for Release 2011/06/04: CIA-RDP82-00457R009300480006-8 Albert Binz Sanitized Copy Approved for Release 2011/06/04: CIA-RDP82-00457R009300480006-8 SECRET/CONTROL - U.S. OFFICIALS ONLY SE NFORMATICN CENTRAL 1 J NCE AGENCY (Office for Questions of Mutual Economic Aid), are entitled to see all. such reports and are ffully conversant with economic developments in other sn.tel- lite. t _I -.officials receive only such reports as are con- sidered by Rau to be necessary for the satisfactory execution of their duties. With the exception of scientific and technical data which have a much wider circulation, such information is never distribut0d below Ilauptabteilungsleiter level. 7. Outside the State Planning Commission, c stricted to Georg Handke, Kurt Gregor, ar as foreign trade adviser on CIEA question. sions in.Berlin also receive a certain amount of information on veiopment in the DDR and other satellites. Information on CMEA passed except where considered to be of immediate interest 6nd flirectly through the government of the country concerned.() economic de- is not normally then only in- Efforts of the DDR to obtain alternative sources of supplt,T for items unobtainable in the West have been closely related to its general policy of achieving in- dustrial self-sufficiency and of becoming as far as possible independent of all supplies from the West whether previously obtainable or not. One reason for the delay in the signing of the 1951 trade agreements with Czechoslovakia and Poland was the DDR-s insistence on greatly increased deliveries of steel sheets, fine sheets, special profile steel and plates for ships, all of which were prac- tically unobtainable in the West. As additional supplies have now been promised, the DDR is no longer dependent on the West for these items. Brown coal- and pig iron requirements can also be satisfied entirely from within the Soviet, bloc. 9. In respect of all other materials, the DDR is still a long way from achieving its aim, though some progress has been made in the manufacture of fine steels and deliveries of steel for machine tools from Czechoslovakia are to be stepped up considerably. It is also hoped that, as a result of the new agreement now being negotiated, greatly increased supplies of hardening agents and other non- ferrous metals will be forthcoming from China in 1952. During the current year, however, a considerable proportion of the DDRts reauireme t his sphere will have to be met, if at all, through trade with other countries outside the Soviet bloc. of effecting economies in the use of Russian personnel at the executive leve These include: 50X1-HUM 10. Although there is no indication of any relaxation of Soviet control, a number of organizational changes have been and are to be made, ~,,rith the apparent object a. The dissolution of Soviet trading agencies in the DDR. The DDR offices of the .vari~m4 3 rt encies are to be closed. Regiae:~t % for supplies will .do : quAh -the Welsvertretung uer Uda SII (`I';?ade Fission b. The dissolution of Techsnabs. There were originallu% four Techsnab in Berlin, Halle, Dresden, and Erfurt, which were responsible for the a:l.locr.t hn of raw materials to SAGs. Of these the Dresden and Erfurt offices have already been closeQ and their functions transferred to Berlin and Halle. It i s- anticipated that Berlin and Halle will also be closed whereupon ~Iistribution to tr~ SAGE and VERB will become the responsibility of the DHZs ^.cting on instructions from the.~taatssekro.ta.riat Materialversorgung, It is possible, however ,..that Techsnab -'Berlin (Base Marten) will be retained. as P. purchasing agency for urgently required materials, c. Grant of increased powers to the Staatssekretari at 1:a terialversor ~_ng The Staatssekretariat Ma.terialversorguanFl, now. has cam; le`-e control- over allo- CQNT'ROL - U.S. OFFICIALS ONLY Sanitized Copy Approved for Release 2011/06/04: CIA-RDP82-00457R009300480006-8 Sanitized Copy Approved for Release 2011/06/04: CIA-RDP82-00457R009300480006-8 SEORET/CONTRj j U ,S . OFFICIALS ONLY SECURITY ~f TION . CENTRAL INTTEL~l7 AGENCY -A.- (2) (3) (4) (5) (6) (7) (S) 50X1-HUM cation of materials to both VEBs and SAGS, Individual SAGS may no longer as hitherto appropriate urgently needed supplies from DAHAs or DHZs with- out prior authority from Materialversorgung, Corraent: 11uth is apparently Walter Muth, Gruppenleiter, Abteilung Handel and Versorgung (Group Director, Trade ^.n Supply Section)} State Planning Commission. Comment : Kurt Wolf is Obq'referent Eiseninclustrie (Head, Iron In- clu.stry Desks , HV P ietallur;ggie., . Ministry of Heavy Industry. (sic), IComment: Dr. Dieter Zaulek is Technischer Leiter (Teoh.nical Director) of HA (sic. IIV?) Metallurgie. Comment: The name of the Generaldirektor of the Reichsbahn Is reported as Erwin Kramer 50X1-HUM Comment: This list is not complete. 50X1-HUM Comment: The Bi1ro fitr Fragen aer gegenseitigen Wirt schaftshil.f+ only on paper. Comment: Homelin is probably Kurt Homelin, Abteilunj Handel spolitik (T ar Policy Section), Ministry of Foreign and Domestic Trade. Coru ent: No direct communication between CThA representative's and satellite missions could be observed. It, is dou.bcf l whether C1`EA in- formation pe.aeed on by satellite governments would be clearly' recognizable as such. Q ~ U S . OFFICIALS ONLY SECPET/CC~P Sanitized Copy Approved for Release 2011/06/04: CIA-RDP82-00457R009300480006-8