FINANCIAL SITUATIN AT THE VEB CARL ZEISS JENA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A008200560007-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 21, 2016
• Document Release Date: January 8, 2009
• Sequence Number: 7
• Publication Date: October 21, 1955
• Content Type: REPORT

SUBJECT
PLACE
ACQUIRED
DATE OF
INFO,
Approved For Release 2009/01/08: CIA-RDP80-00810A008200560007-6
CLASSIFICATION -
CENTRAL INTELLIGENCE AGENCY
P INIVIMMATIONIEPOT
a I I I WHIP
Financial Situation at the VB
Carl Zeiss Jena
7317473;,:sdeNe.
THIS DOCUMENT CONTAINS I NTORLIATION AFFSCIIRS TEE RATIONAL DOPTINSS
OF THE UNITED STATES WITHIN THE MEANING Of TITLE II SECTIONS TAII
AND 794 Of THE U CODE. AS AISETIO20. ITS TRANSUISSION OR REVEL
AMR OF ITS nowrun's TO OR SECEIPT ST AN UNAUTHORIZED PERSON
IS PRONISITEO PT LMS Till Rev000uctioN or THIS FORD IS Pooinerrao.
25X1
25X1
fir tetelter 19,r
NO, OF PAGES 2
NO. OF ENCLS.
(LISTED BELOW/
SUPPLEMENT TO
, REPORT NO.
THIS IS UNEVALUATED INFORMATION
25X1
25X1
L. At the beginning of the plan year o: 1935, the total payrell ef VED Carl Ze!xe Jene
-comprised about 20,000 people. By mid-May this number had been reduced to about
17,500. Under the wost recent planning directive, which w oupled with e hieing
freeze, e, pclicy of not replacing personnel who left throuen noral attrition end
the bringing of indireyt presume upon the you "ale eeeloyeee to join the garreseeee
people's police (KVP.,), it is?intended to have a total payroll of only 15,250 he tee
end of the 1955 calendar year, ie at all possible. This reduction in personnel,
according to the labor and cadre chiefs, ls to be accomplished without making any
significant reductions in the 1955 production plan.
2. The 1955 plan envisages a total production in the zalue of approxiar e1y 117 million
DME. Up to 30 June 1955, a total of from approximately 55 to 70 million DME verth
had been produced. The 1955 plan also had the target Visure of 140 Aillion LMZ for
sales. Up to 1 August 1955, contracts had been concluded for the sale of products
for an equivalent of about 95 or 100 million DME. Actual production up to 31 May 1955
amounted to 45 million DME. Actual sales, including firm contracts for delivery. cf
Items within three months, amounted to 40 million DME.
3.
According to the 1955 plan, VEB Carl Zeiss Jena was to have a net profit by 30 June
1955 of approximately 10 million DME. By about 15 June 1955, however, there was a
net loss of about 2,250,000 DME instead. Even these figures, however, do not quite
accurately reflect the true financial situation of the lent since
interim credits were obtained 25X1
On two occasions, in May and June, VBB Zeiss Jena had such an
acute lack of liquid assets that it could not meet its payroll fully and had to obtain
an emorrncy advance of funds from the ministry. The payroll requirements were subse-
quently met in that some of the plant personnel were paid in the afternoon ratner 25X1
than the morning on payday, as was the usual practice', because the money was not avell-
able until late in the day.
4. No one eIngle factor can be cited as a eanme for the current unprofitability of tc
pleat. Commercial production and financial experts at the plant, however, ascribe
this condition to the following causes:
CI A.SSIECATION
STATE
; X NAVY
x
NSW
Airow
#1 xl tOR
S--C-R-E-T
DISTRIBUTION
71- 1 r-
r??????T"..
Approved For Release 2009/01/08: CIA-RDP80-00810A008200560007-6
25X1
25X1
Approved For Release 2009/01/08: CIA-RDP80-00810A008200560007-6
25X1
Approved For Release 2009/01/08: CIA-RDP80-00810A008200560007-6
COUNTRY
SUBJECT
PLACE
ACQUIRED
DATE OF
INFO.
Approved ForRelease2009/01/08 : CIA-RDP80-00810A008200560007-6
R;Pit RH1 -C-R-E-TI
CENTRAL IMULNIENCE Pomo'
INFORMATION REPORT
East Germany
Financial Situation at the VEB
Carl Zeiss Jena
25X1
REPORT
CO NO.
DATE DISTR.
NO. OF PAGES
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
25X1
27 October 195,
2
25X1
4 41
THIS IS UNEVALUATED INFORMATION'
25X1
1. At the beginning of th?lan year oetot TB* 14tit Omer
comprised about 20,000 people. By mid-May this number had been reduced to about
17,500. Under the most recent planning directive, which was coupled with a hiring
freeze, a policy of not replacing personnel who left through normal attrition and
the bringing of indirelt pressure upon the younger male employees to join the garrisoned
people's police (KVP), it is intended to have a total payroll of only 15,250 by the
end of the 1955 calendar year, if at all possible. This reduction in personnel,
according to the labor and cadre chiefs, is to be accomplished without making any
significant reductions in the 1955 production plan.
2. The 1955 plan envisages a total production in the value of approximately 137 million?,
1364 up to 30 June 1955, a total of from approximately 65to 70 million DME worth
had been produced. The 1955 plan also had the target figure of 140 million DMZ for
sales. Up to 1 August 1955, contracts had been concluded for the sale of products
for an equivalent of about 95 or 100 million DME. Actual production up to 31 May 1955
)4mounted to 45 million DME. ActualAales, including firm contracts for delivery of
items within three months, amounted to 40 million ENE.
3.
According to the 1955 plan, VEB Carl Zeiss Jens was to have a net profit by 30 Awe
1955 of approximately 10 million DIME. By about 15 June 1955, however, there was a
net loss of about 2,250,000 DKR instead. Even these figures, however, do not quite
accurately reflect the true francial situation of the plant. since a number of
interim credits were obtained
On two occasions, in May and June, VEB Zeiss Jena had such an
acute lack of liquid assets that it could not meet its payroll fully and had to obtain
an emergency advance of funds from the ministry. The payroll requirements were subse-
quently met in that some of the plant personnel were paid in the afternoon rather
than the morning on payday, as was the usual practice, became the money was not avail-
able until late in the day.
4. No one single factor can be ci current unprofitability of the
plant. Commercial production at the plant, however, ascribe
STATE
Wtw
Ti
Al Approved For Release 2009/01/08: CIA-RDP80-00810A008200560007-6
25X1
25X1
25X1
25X1
Approved For Release 2009/01/08: CIA-RDP80-00810A008200560007-6
smiler
2
a. inefficient use of manpower, partly caused by material bottlenecks and
sUdden changes in produetion plans decreed from above without properly coordinating
the production output of the various Obispo.
b. Enormous surplus stocks in excess of plan. As of 30 Auks 1955, the plant had
above-plan stocks of raw mete:dale valued at 2.5 million DMZ; of somi-finisied products,
15 million Ma; and of finisibeditems, 8 million S. is there was a total of 25.5
million SIM in above-plan steaks whereas amormalw above-plan stooks durimg the
summer season would amount to about 6.5 million MM.
c. Reject figures for it.. manmfectured during the first half of 1955 were
roughly 100 percent higher than during the 1953 and 1954 production years. It was
about 12 pereent,whereas rejects in 1953 and 1954 amounted to about 6 percent.
5. An interim credit of about 14 mallet% DMIS, LJ..ems to
be reduced by 6 million MMI by September 1 11T4 11111.114
the summer months, it is unlikely that this
It is therefore likely that another interim *rent will be requested, or that Os
liquidation of the Marsh 1955 Wrath 14).1 be postponed by at least smother six months.
6. On the otherhake/ Seinneohenik end Optik and the Ministry for General Meohine Cowl
*traction realised in 1954 that the non-techniowl DIA and ministryimmvennel were
not in a position to further the fires expert drive, and therefore in 1955, as a
great ooneeseien, they allowed V Carl Zeiss Jena to resume its own export business,
to be handled by its own technically trollied salesmeno In addition, Zeiss Jame was
granted a special export credit of about.6 million BM to further this expert drive.
The MIR is at present making ted effort to reestablish and enlarge its
network of foreign representations.
25X1
25X1
25X1
usnerauy speaking, In
spite of the special export drive, no appreciable increases in export sales have
been obtained so far.
3..
igemmmit. This indirect pressure takes the term of denying the young
sepia'ss promotions or certain privileges *blob they might normally expect
to on.10,, and the like.
Approved For Release 2009/01/08: CIA-RDP80-00810A008200560007-6
25X1
25X1
25X1