ECONOMIC SURVEYS ON THE RUSSIAN ZONE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00415R006100240003-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 111
• Document Creation Date: December 22, 2016
• Document Release Date: March 2, 2012
• Sequence Number: 3
• Publication Date: December 5, 1950
• Content Type: REPORT

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%-LAOOIFljPtIIVIM - U."). Vt'C.Lulaliz) UA LY
GENT RAL I!V LLB . NCE AGENCY REPORT
1 N F R A O N REPORT CQ NO.
I
FRY' Germany (Russian Zone)
.ECT Economic Surveys on the Russian Zone
DATE DISTR. 5 Dec. 1950
NO. OF PAGES I
PEACE
ACQUIRE
DATE OF
INFO.
This DOCOMENT CONtAlEs INFORIIATIOD AVPE011NSTNE HATIONALDZFENSE
OP TEE BFtITED STATES IOITNIN THE NHANITGO OH THE WSPIONAOE ACT So
a. is, c- A I ADD SE. AS AMINDEM ITB TRANSOONNON OE TEE IRVRLATIORI
C'F ITa CORITURTS IE AHT S* SER TO AN OEIAOTAO$IZED PERSON It PEO^
ANO.OF ENCLS.
LISTED BELOW)
UPPLEMENTTO 50X1-HUM
REPORT NO.
THIS IS UNEVALUATED INFORMATION
1. The attached economic material on the Russian Zone of Germany entitled
a, German Economic Press Review
b. Economic Report on the Soviet Occupation, February/March 1950
c. Economic Survey of the Soviet Occupied Zone of Germany
d. The 1950 Economic Plan for the Soviet Occupation Zone of Germany
_ _ _ CLASSIFICATION SECRET CO U. S. OFFICIALS ONLY
STATE _ -dAVY
NSRB _ OI RIEU7i17f1 ~~ 1
FJ14
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50X1-HUM
This Review covers news items of econoirdc interest rc orted
by the German Press and Economic Periodicals relating to:-
I. The Soviet Zone of Germany and
Soviet Sector of Berlin.
II. Western Berlin.
III, The Federal German Republic,
as rpepotTrzyrt~~ed by the BEPLIN and ASTERN
GE_TU~4 24 PRESS.
50X1-HUM
cUSS Y oP ~13BRETIt.TIONS USED
i~TN (SOVIET LICENSED)
BP (1 JE ; i' T i~l~iuv ;ld )
IPA ~VTESTER v uE1ZLi N)
SZS 0
:Llgemeiner Deutscher Nu,chriehtendiene~t
Reichsbahn Prossedienst
Deutsche Presse !gentur
Soviet Zone: State Control Cormni,ssion
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 kti
n Part - Sanitized Copy Approved for Release 2012/03/02 : CIA-RDP83-0041
The Inform:,tion a,f'ice Pr, su Corferenc; rz 1 'i t1
19th January, 1954
PA1;T I,
fS TJ, ]Ai,~'S I;'ELE "Ifu TO T , SOVIET Z~I`L s=' D SOVLJI' ZLC`1'0 h ()I,, 13ERLIN
fA, C~ONQ I* I VI OF THE ;~OVl1;T L1Gn Td~1;u Yid
rv - -- '--'-'i ?., "'? ~`?" `-~vu. vJ.AG Gli V11 V11A1U
ew5 i hlights of the second ne~v~s-week of the year proz,.nt: y under review.
s
ez s e .~ Cor,i erence held in
Berlir~r on 9th January, the Jocialist Unity Party Congress of 1 0th and 1 I th
Janua- and the passim on 12th January by the Eastern German Government
.of :hp. Th 1 i ,n ------ A
n-I
The Eastern German Propaganda lvini~l ' P
< ~.r
Ea V I
VI6 dCtazl In the :introduction to Parts II tui , III of this review.
I ~c;c ors of Berl~,n and of l,'estern Germany. This news-item is
d It 4.1,
open
r c w ~_nC _ or a
rulefint propaganda offensive e? :,inst the r isolationist trade policy of the
'edcx~l . Government of Ueestorn ,Germany, reflected according; to the Eastern
t'opa~anda Iw.nister, in the px'escnt state of economic staagnaation in the
priest, alleged to be leading irrevocably to the ecorioriic collapse of the
o~terrr P t
ed weight to the Eastern line of propaganda argument was provided
ol:btless purely coincidental connection,between thu. Eastern (kxI:an
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r
3 on~;ressp as the
'target date for the complete fulfilment of the Eastern Zone `1 ro Year
Indust,'ial Production Plan.
na9e; ant emphaszs~.ng its planneu. f'ul:'ilriont without, the aid of foreign
capital and without crisis; as also thf announcement by the Minister of
Planniflg, of 20th July, 1950, date of the mid-s,, 1 rer P
t C
> y CLngmss
Provided a more detailed picture of the provisions of thu 1950 Soviet Z one
E co n' Pl
.
t
0 re, La- Cerman Government,
Walters ULLRICIIT, Deputy Primc i',~inister, and Heinrich RX, Minister of'
Econonic ?laming, on the occasion of the Socialist Unit F 4-
oeches made by `,:4ilhelm I'IECI~
Pra=sidcnt o: t1
ie rv Year 11.an, which the Tarty 1aon s, will fortuitously
synchronise with increasing instability of the economy of Western Germany.
e
y n yr in order to J. orm
the ec9norric corner stone of the National Front campaign for a united
Germany", as also the planned e:-ploitation at the Autum-:n Eastern German
elections of the anticipated announcement to be made at the sum)-mer Congress
of the success of t1 IN
r
t to the J,I. erom
En tern UESrmany oy f rngii ci;rir, products.
The :7up ,lc1~ e t~~r r BEd
1,94) with Polunc1, t k)ic L., t d to'!
~ a 1 c 'or
consido abler incx
trod t1wh0 cr ever th 2 million (10 L 1; o irk
c1 rr 01 -ood's
[5 j w?1.tc or
by ih, pr(vious aE rc ), n
of 2j c,. 1?iirr 19 1,49~ prOvict?s for ir)cx,;ss(;,.,,
imp cr bo -t o a s' c .( b,xI
of hard cc U, . okc any7
. ,._c ~ ~ end ot'~c r<
th
~
e E t
v.2rotwvo yen ='G[ lI COVE nvd ~~ tht 1949/19513
y' 1_~a~v. , , rj1 1950 eduction t," t (. > .tillicr tun.: of brown cor..L or i_tet c;s a ;n -t
for tr)o sE c'ond. ,y-c L:r ci Li :e ",70 fear t
t
ons i, i in'.lly U' 1 _ or inc d two year oario . `i' :ie farther
1fl1pro..iment in 1 '> 3 1) i ;. 'A'
SE.Y ~`11.1Si;r '! 0ttIG ). :) 1>E enccu ;Ci b'
presert;st.cb stantic.lly itt ~ , E, i ,,o l7 i e:x ti=liaon po: i t1t):i) )nd, r?y the3`
production tar"' Cat :~ 1 C G' 0 i i tots of i\itrogen act or 11.1')C), a.a )i . tP. do
in 1900 of t}
1 1)
7c
;route?t: oli of a'tosicraus.
production get o: x,400 t.'actore for t :l i rr
r ~n>
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/02 : CIA-RDP83-00415R006100240003-4
C1Y).
Ili. F
19ix, January, 1 50
L tlie, oio e o i is interview the Nilnist(-1 :~)L~~ hi:;d 3arl the , fo spec sl
u1 I ib 3r -Inpor ,; i tt 1 "'E"LLY to ensure '_w imprC. ,'Ci 1.3LxY Of conouse O' ds
1 11~ 3 C 1)UP"21 1 on. The aeknowlE t4~'.A l l i ~ o ur, 7 Ix,mo-rati
f t-,
L cu1)ld', h i, h G 12
s udtGC!. in an :
xl,Gll:~ cr, . oL nit cL .k trade
rcenl nt s
hut I nt _'.'e 1 i 1 'porgy eo i o d.epondunt upon la,.C"(7:' ?tarts J_I? O.i.'d~:' ~.O voIi
1 ~ cc.rts 'rya-ro(J, or fo .s _-i crLdit ,.
&N FN
I 1?~ at L _7FIE.) BhCIJiU`9 carrion an DN r~ ~;t>r1 0000((bj) ~ to rich ' hc:-
`~i.Ln:l.~:tE;.f'.' Of .[Sl 0l7CI?'11. C,. _u ha ony l: si. r] ,t,d to +)-!ye c.:nnL}ilYl~,'. d t)',`'at t' .` ovorall
l_)t~l "t i_a'l output i : ~rorl~r incrcr-., ed t,~r 37/6 in Go,a;_-arE,d. Wj_th 1 91 3
T)i[1 1710:.UCti T et t' :.;Xti lnduotry rose By 'OrI`i,ro.'-.. 5,,. 10t} .` )1 L Y >r,
1 c ! FCC
.
accc01_u1 of t1Er Deu.tsc h( IVotenhank with the Bank f5iut :cher I,ncnd.er h( co+dillo
to ])Ivi th Lr t co > > rrlrne rJi; of a.Fpprox. 60 Lo.n,: of -.0
1 !, lro_ arr_ ti F L
i ~ ot` ..le
Ft
n ~ 1 e n ise(i 4.t:1 G - 1..r .;;Esr Ole r~~(;n ?F in i 4. rlkcnh l)7' on {;h X111
Je ,j:l'ry, 19:~~=t
Y1 o lal to tb , 'r.LU 1 D.11. 2.5 million has boon ;f'OVF C) by t
a1.1.11i: hies in f stE rn .,rr1?lnr
Y. :P 'tent rill Br. nvernc.nt. 13th January, 1150
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 f a e.'e fl C , n , w t". sP i I& 3 a ., 'Ac -'VI + i V .}',..C1 -Y.k r R if ~,I~Yg7PRii4@4a~ +Mf9FA 9 2q'J :.. ~
SPECII'L CONCENT- TI:ON C1;ivii S2T UP IN' EASTERN GEI 1:ii'? TT TO HOUSE
!RElXTIONJRY EI2IV1>JNTS" l1CC,USEI~ OF ECOTvUI:32C CRIMES i+"tINST TM,
WJ E1,S 7,RAT GEI IVII,N DETJOCR TIC ORDER
against the new democratic oxder. 15th January, 1950
A r xcording to thy;' "Ti.GES,'I'IEGZ;L" (Berlin-Americarn) of 15th Janu 4ry,
the Eastern Zone PcoJ,ice have ' set up special concentration camps to
house "reactionary elements" accused of perpotratin? economic crir o
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 Declassified in Part - Sanitized Copy Approved for Release 2012/03/02 : CIA-RDP83-00415R006100240003-4
ECO1NO,4aC .. : ; VIs4v 1'l0.
15th janun.ry, 1)5()
Th'' NMI was tj l :air Lr e the ;L 1 L)d ur ,^ rqv1eqj for c further tntf n , .utour of civil wir".
5' c' Sovi.:t l oa L fr:,so has also taken full iv nt u of tb.-;
tt at r1r 1;t attrl rutod by the Wo t irn l;inunsed Ea se to the West `_? in Oily
tie La sur.`:.r Cr. ?.t__'iS, K xi common tir_ , on the monthly rr,duct on of 5 r!.ill.inni
) 'r) nia xf by t o - a l
01 ETov of Western a
7TIiGn t C r7CrrCr` ry 'I n their r rC fIl o
6U million Jai , a.i& to west Eerain ur to the nd of it arch, that "195(
ic' Ccd like b(-ir Mr] 's blrxci,c:s t year sin& thq n! of th, ar".
1 iht t1T,(~ F1' , : CL Ltilj ll
r,~iitorial Jr' 10th January under tM cart nil
u1 _
A= 1 th earn-. i.gn for unity", , r l.ws a tt,ention to the fact that ur ?1,-loymunt 0 Jost r n Berlin had new reached thy: highest figure r .cnrd.C:l.
during the 1923/32 : r?_(., noonornia depression,
Thin r ou 1 t of t''. iiiictic and n.t zl1ngcal
,.sj;l?.t+inT of 13r::r_l_ir into dv!~
of,'rc ,e, _L oaia ps, v. bet. i ,''r otcoquc and. 1
S; .euS.
t 1.r r air w~f an lcn r th 'fS eobol of t ;tern 1erni_-n "
,,ter e:l y
mr,~,dy ,, o yr ti _ tore revs, but the rnrbnl ot;' u;"mr ln,,rmon+;, ,~',7"';C'
st r tion of 1 1cd
J on1 poverty, growing fore1 -n do
000 "~Gi1
`t ~
of M zr{~ i
t th
n
. ..__,pe, ane -c o t n,_,
e Orman peold th~blf
prnen t tat;. r f cdi 1 marworcy.
Cr; 11th Ju t o rr, n ' qt `i t) 111TS(;.ril RV'i)" carried n :j) f !-.-.7rrt
~3 1','7x147
off !cl In 1
1 no dG ,cct ion of the Went P'rlir City CouneII
W t
C7 re_ ui tn. r,..1 Mans of L,rm_3inr, the ,"tnc le to yoal ps:.
it u:otry in th ,.,,qtr etoro of the City, the o, lv:tinr-, if the w
of t,l"l r. G J r ' t " : i _ , rn hurAc`L1 and bui1dmntt in t-Ju trio s 7 lay in -tl n : -n t o n of to------- rr, l tip ,3 with Ea ,-rn TerJ Yr
no the Anst-nrr
of ~QiA. 'l' 11? r .nt in to say liot there elan. row
un.. c1Eya3 and }..)rt 11 wo - r , in ,.(;:t of which 100 JX,
ur * .lcyt-3 .t_'J' t,0I-e uh mh-time workers were r' rJ: ,.
.c;i'.,.., SC.C1'iC'7'1'~lLt'~ lot-Hot
b17 i, i ~Jr~.:1.711 ~71 , a'Llfij11 f'r~rrtn~ Ttnn17r City, 'FPf
r,r. .'.l.or~._a to rl; wolf i,, ~ 5 Y .7r',,
-t lice, 60 00i) of the 689000 etoloyablc
1. cr = ro of this Lo t2 i o L being without work.
t 1 h tr('~ ~r Ci~'f J iy S.f ytc,t_linscsed econar"Ic :t 'otr'.-, 't t.,
I2tr ~'zntvtry, coral rc t c r
, c. rr~,~l.CE,nt npf]r17.IIi Lac.~.t i Jn~7 H" C r-,1
c
rev:'V'L: V of M C 1
~, .~t~, r t ('r:^ C~i Berlin eg '-"
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 AIMIJUSINUMT1
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addressed by West Berlin politicians to the people of lest Berlin,
reflected by the whole of the 7'icstern Berlin Frees, which proolair:ie(j. that'
"artiest Berlin was over the danger period" and that "thy upward swing of
West Berlin's economic `life was in 'sight', with the
editorial of 5th January on the "Now danger to Berlin's economic r cevury
brought about by the !ootu-rn Geri-man Government's, out in Berlin buy get
subsidies", and City treasurer's statement that "it looked as if 1950
would be Berlin's blackest year since the end of the war".
The paper states that neither 5 million DM (i.v) either way will tYako
any appreciable difference to the catastrophic Wont Berlin budget deficit,
though there might be some truth in the claim made by the West Berlin City
Council to BONN that the 5 million cut in financial .atd'will make: the
Continuapce of unemployment benefits payments impossible.
The, continued rise in ';dust Berlin unemployment to 280,000 at the end
pf Decoebor is the final yard stick by which the economic crisis in the
I-estern 'Sectors can be judged. Nor is there any hope of any reduction in
the nun4or of West Berlin unemployed. On the contrary, there is a rising
endency indicated by suet Berlin's present restrictive export policy,
hick in the electrical industry has -exulted in the announcement by the
t'elefunken marks ?in Sohoeneberg of the dismissal of 2U workers on
I January'
enterprises also forced to close down during this period.
Thoac figures exclude the considerably larger total number of small
and. 37 electrical engineering works which closed clown oomplc.tely.
conomic'collap,se is stated to be the setting up of an e.xecu.tive core ittee
coinposed'of masters of the manual trades from all four sectors of ,orlin
to establish a united Manual Trades Chamber for the whole of groatcr
Berlin.
Tiio ?T GLICHl. Rt TDSCHAU" on 11th January states that according to
reliable reports from West Berlin, during the three-month period
(October, 'inclusive, 416 West Berlin Work and factories' stopped production
entirely, 116 closing down completely.
The clothin~ industry was worst affected, 97 fi?.ins being involved,
followed by 42 firms in the metal industry, 38 vehiclo building; works,
countries, to drive hundreds of thousands or best Berlin unemployua,
old age pensioners, artisans and tradespeople to complete destitution.
A Sign of West Berlin's growing resistance against the policy of
blackest year it will only be against the will of the people, who arc' -
determined not to allow the present policy of West Berlin's politician;sP
which is preventing the economic recovery of the Western Sectors which
.eponds on the resumption of trade with Eastern Germany and. Eastern Bloc
.1 - ? , -Just Berlin's
The article concludes by saying that if 1950 proves to be
B, ECONG1',TIC HET MW OF. THE Ni SI"~I~1V-LICENS sD P1 SS
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83-00415 8006100240003-4
1. V S''-BERLIN'S STRUCTUR iL ECONT;7l':~C CRISIS
The monthly economic summary issued by trio conomic Department of the
Con ense from the "TI LL'GIR2 (Berl in-British) of 15th January
West-Berlin City Council, for the month of December, 194, confirms the
eccnomic difficulties of the Western Sectors of the City apparent at the
close of the year.
4
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_15-
l7'l'.~lSJ.t ' i'+ .EGOT';()P~'1C i " L~~SS .Cti1~J l ' 4i_ TV O. 6
19tr: Januai `j i ~G {
On the pcsiti,rr: side an overall increase in the value turnov ?r of
industrial product ion is reported, as _lso incr+ aces in bank d(,T o r! to and
revenue from taxat'Lon Payments from 'iVestern l.{ern7Fl.ny for goods r'ilrc,hlF4.-,,od
from Vest-Brlin incr. eased 'luring the month reviewed an. the vc .uric of
Chxicl;mas r te.il tract : was satisfactory measurfcd on the ;rioderat 3';.`Lt Gard
of
tide: t- rlin'sret uirerrents,
On the nccgatJ:-- .dole the numb' r of persons gainfully employ{.;;, 7. o
l;ioro Luring the ins,-A%i than during the two precealin:r months.
'j'nc conclusion cf the inonthly report is that improvement in tri gebieral
economic situation is conjectural, under conditions of unchanged and
a nti.nuing structural crisis.
The exr.lanatii ns off, re d for the continuation of economic ten io zrc
[river; as the tirre -,a7 of several months at th, earliest between tee
receipt at the. end. of Dec amber, 11 91.9 of financial aid a .locations to
':Testerm Berlin and trim-! time when now industrial investments can be eapobted
to affect industrial produ.zctivity, as also that aid to :?merlin nee .cures
,%l--proved by the Fecicr__1 Government of Western Germany had not naterialiLed
by the end of 191+9.
rIG.HE},: EIEC`T: