CRITICAL FINANCIAL CONDITION OF ZEISS-JENA WORKS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R014000020002-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Sequence Number: 2
• Publication Date: September 29, 1952
• Content Type: REPORT

Approved For Release 2007/03/02 : CIA-RDP82-00457RO14000020002-6
~~,p~A~HkX 1!
FORM fO
FES 5
1^ ~- 111 e-.., nr 19 A -_~
INFORMATION REPORT REPORT
CD NO.
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
25X1 REPORT NO.
THIS IS UNEVALUATED INFORMATION
Since 1951, the financial position of the Zeiss works in Jena has deteriorated to
such an extent that it can be called almost hopeless at the present time. The
directors called the top personnel of the plant to a confidential meeting at the
beginning of July. They explained that the financial situation seemed to them
extremely critical. It was pointed out that outside help was needed to tide the
works over its present crisis and that the firm could only stave off disaster if its
accumulated stocks of goods could be converted quickly into cash. Examples of
the situation. were cited: on days, in the recent past, there had been insufficient
cash on hand to pay the fees of business mail; the plant has been obliged to seek
small loans from private sources in order to meet its most pressing obligations.
a. An accumulation of products which do not sell. The plant now has a stock of
finished and semi-finished goods totalling about 20 million DM (East). Never
before in its history has Zeiss had such an inventory of products. Some of
the products are: precision measuring devices, double-angle prisms, magnifying
lenses, screw gauges, thread measuring wire, thermometers, coincidence levels,
timing devices, Abbe refractometers, sugar refractometers, measuring devices
for refraction, photo objectives.
b. Difficulties in the procurement of raw materials which have caused delays in
delivery of products to customers in the people's democracies. These delays
have occurred so often and to such a degree that customers in the East have
lost confidence in the ability of Zeiss to deliver at all. Deliveries have
been held up by lack of material or by the delayed arrival of material in
insufficient quantities, Zeiss has, in the past, been obliged to reimburse
customers with considerable sums for failure to deliver on the stipulated
delivery dates.
COUNTRY East Germany DATE DISTR. 29 September 1952
SUBJECT Critical Financial Condition of Zeiss-Jena Works NO. OF PAGES 2
25X1
DATE OF
INFO.
PLACE
ACQUIRED
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES, WITHIN THE MEANING OF TITLE 18, SECTIONS 793
AND 794, OF THE U.S. CODE, AS AMENDED. ITS TRANSMISSION OR REVE-
LATION OF ITS CONTENTS TO OR RECEIPT BY AN UNAUTHORIZED PERSON IS
PROHIBITED BY LAW. THE REPRODUCTION OF THIS FORM IS PROHIBITED.
25X1 1
SECRET
STATE # x NAVY X1 NSRB DISTRIBUTION
ARMY X A I R X FB I OSI P&E Q ORR Ev x
 Apprbved For Release 2007/03/02 : CIA-RDP82-00457RO14000020002-6
25X1
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c. The fact that deliveries to West Germany and the Western countries have
stopped almost entirely. This is due to East-West trade restrictions
and to the fact that Zeiss-Opton in West Germany has reaches tht, =lligrc
where it is in active competition in rnariy respects with Zeiss- ena.
do Competition from other sources.l.
e. The defection of a large number of top rsa'_ing specialists to the West
which has impaired the efficiency of the olr,ato
f:. The draft of first-class workmen into the Volkspolizei which has further
reduced the efficiency of the plant.
30 In order to meet the emergency, Zeiss has sent out salesmen in East Germany
and to Eastern countries. These representatives are to offer products directly
to customers. In addition Zeiss has forwarded a detailed report on its
difficulties to the East German Government and has, in return, obtained small
emergency loans from the government.,
4. Since the middle of July 1952, several official commissions have visited the
works; these inspections are continuing. About 25 July the plant was notified
that several ranking persons of the East German Government planned to make a
tour of inspection.
ommento Although the competitive sources were not mentioned in the
mee ing, it was evident that Russia was meant as the chief competitor among
Eastern countries.