FAILURE OF THE DDR EXPORT DRIVE DISCUSSED AT CONFERENCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R005800340005-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: November 16, 2016
• Document Release Date: February 29, 2000
• Sequence Number: 5
• Publication Date: September 21, 1950
• Content Type: REPORT

INTELLOFAX 21
CLASSIFICATI
Approved For Retail%
COUNTRY
SUBJECT
PLACE
ACQUIRED
DATE OF
2MX
INFORMATION
Germany (Russian Zone)
Failure of the DDR. Export Drive
Discussed at Conference
25X1A
25X1A
12IGI111,3 3iLY 25X1A
2-0045157MIN93=
CD NO.
DATE DISTR. 21 ;312 50
REPORT
NO. OF PAGES 2
NO. OF ENCLS.
25X1A
SUPPLEMENT TO
REPORT NO.
1. On 23 June 1950, a confereace of departmental heads of the DAHAls, DIMIs
(Deutsche Handelszentralen) and of representatives of the Export Department
of the nnistry for Domestic and Foreign Trade and Material Supply (MIAM)
took place under the chairmanship of Makower, head of the "liandelspolitisehe
Abteilung" of the MUM.
2. The focal point of the conferencR was a speech by Nakomer Which was unrur-
passed in acidity and threats. "0 stated that not one of the DDR departments
connected with trade and industry seemed to appreciate the situation in Which
the DDR was placed. Recounting in detail all the current trade agreements
with other countries, and setting import results against export results, he
came to the conclusion that While the DDR had taken full advantage of every
offer of goods from abroad, it appeared to have given no thought at all to
fulfilling its counter-obligations on the export side. On an average, im-
ports due under existing agreements had been surplied to almost 80% (in many
eases to 10(Y%), while exports to the countries concerned had been negligible.
3. flakower then turned to Frankfurter (head of the MK Export Department) for
an explanation of this situation. Frankfurter replied that, as he .
was responsible for exports only he ceeld not account for the success of the
import plan 9 which was nchultchen's affair. He could only confirm that
the DDR waster behind in its exnorts, particularly in thoseto the USSR.
The mean realization of export commitments stood at that time at 30-4%. As
a reason for this, he referred to a memorandum recently addressed to him by
the Itinistry of Industry, in Which ballad been notified that a number of firms
had already had to restrict their production, that many others had been forced
to cease work altogether (particularly textile firms in the Chemnitz area,
Which had. completely run out of artificial silk), and that still more mould
be ceasing work in the near future. The lack of raw materials was the sole
cause of this situation Which was, incidentally, leading to a steady increase
in unemployment. Re asked Makomer to inform him What had ballooned to the im-
ported raw materials Which had never reached DDR industry - a ease in point
being artificial silk, of Which large quantities wore known to have been im-
ported under a number of trade agreements, but of which the Chemnitz industry
had hardly received a square yard. It was the business of Ilakowanole Economic
CLASSIFICATION
s u.? orriciw ONLY
STATE
NAVY
lir
MSRB
a UTION
I
I
I
fo---1
ARMY
MR
10.
ea
Ti
I
I
L
Approved For Release 2000/05/18 : CI
Document No,
No Chang Changg p
Dectassiad
Wass. Cheng-J Is: IS $
ti.411bit?.9_058091y: 000A-0
Approved For
VitIkl.Cifteftegeipday.57R005800340005-0
fTflAL 11711 aL
LLIG:N' AGETTCY 25X1 A
Policy Deparbment to insure distribution of imported mat rials to the in-
dustries requiring them, and Frankfurter refused to be held responsible for
the lack of exports.
4? At these words, flakomer appeared to lose his temper completely, and threatened
to have Frankfurter tried for "unobjective criticism" of the economic policy'
of the DDR. He then read out a list, from which the conclusion. was drawn
that 80 percent of all imports under trade agreements had in fact been
appropriated to DDR industries in accordance with the requirements list of
the Ministry- of Industry, Which was wellknown to everyone present.* . It
was also clear that the remainitr 20 percent was sent direct to the USSR.
5. Makower then closed the two-hour session with the following words; "Those
Who merely do their duty and nothing more, and those Who are incapable of
implementing my demand for fulfilment of the port plan, I shall have arrested
by the SSD (iinistry of State Security) for sabotage, evasion of duty and
AkluArtion".
11111111113mpt: From the list read out by Makower; the SAGln and purely Russian
companies had clearly been given preference in the allocation of raw material
imports. There was no mention throughout tho speech of reparations obligations.
Approved :trAgkiiihTf70457R005800340005-0