SOVIET ZONE OF GERMANY: REFERENCE COPIES OF BASIC LAW AND MAJOR ORDINANCES PROVIDING FOR A REORGANIZATION OF THE GOVERNMENT OF THE GERMAN DEMOCRATIC REPUBLIC

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-01043R002200130005-4
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 141
• Document Creation Date: December 23, 2016
• Document Release Date: August 2, 2013
• Sequence Number: 5
• Publication Date: May 16, 1958
• Content Type: MEMO

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'Despatch 529
May 16, 1958
Sulijeet: poygy ZOIE: or GENTIAN!: RefamcerCopies of Basic Law and Major
Ordinance's Providing fttr a Reorgiemliatian of the Govipment of
' ? the Gelman Democratic Republic
,
.FOr the 'convenience of the Dipartaent and of other U. 8, official agencies
? -intersejited in develop:eats in the Soviet Zone of Germany, there are .eaclosed
(reProducible mat) a translation of the basic law of January 23, 1958, prom
viding..for',a, comprehensive reorganization of the East German Government, and
three. copies,' each (fotofax) of a translation of the 6 aajor-ordinances, dated
February. leU 1958, implementing the basic law. A detailed identification
list of the Jriel.osures, for convenient reference, appears below. A full set
. of em anclosuris'has been forwarded to Embassy Bonn. The original German. ?
language texts appeared in the East German Gesetsblat Part I of Februaly ).9opy
(not. 1.1)'? and February 27 (no. 13), 1958. pROCESSINu
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11h0.0 sures:
FOR THE A,SSISTANT CHIEF OF mIsacch
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I
Chief ?
Eastern Affairs Section
'1. Law Concerning the perection and Simplification of the
Work of' the State Orgarp in the German Democratic Republic,
2. Ordinance Coate:ming the Tasks of the (G)R) Stater,
3. Ordinance Concerning the Management and Distribution of
Material Supplies.
4, Ordinance Concerning the Tasks of the Mini.strf of Pinging..
5. Ordinance Concerning the Tasks of the District and County
Eizr-triomAe CcubdAs,
6, Ordinance Conciirning the Organization of the Building Industry,
174p Ordinance Concerning the Unions of State Owned Enterprises,
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Page lot
Enclosure I to
Despatch 529
From: USHER
LAW CONCERNING THE PERFECTION AND SIMPLIFICATION OF THE WORK OF
THE STATE ORGANS IN THE GERMAN DEMOCRATIC REPUBLIC
In the German Democratic Republic, the first German workers' and
farmers' state, considerable success hab been achieved in all
fields of social and economic life. This success is due to the
deprivation of the monopolists and agricultural magnates of
their power in the political and economic domains, it is the
result of the far-reaching revolutionary transformation of
the society carried out under the leadership of the workers'
class. In the German Democratic Republic, the workers' class, in
alliance with the working farmers and in close cooperation with
all other spheres of the working people, has eradicated German
Imperialism and militarism and, by establishing the system of
the people's democracy, created the. basis for a peaceful and
democratic development in all Germany. By taking the govern-
mental power into their own hands and turning it into an
instrument for the socialist build-up the workers and farmers
have consciously formed their own lives. This has brought to
light the creative talents of the workingIeople and awakened
and promoted their initiative and activity. In the daily hard
struggle for the solution of the complicated tasks facing them
in the transformation of the society, the workers and farmers
have learned and continue to learn how to direct the state. and
economy, bow to form their new socialist consciousness and adopted a
new attitude toward their state as well as a new socialist concept
of work.
' In the development process of the new social order there has
arisen the fundamental task of establishing and firmly entrench-
lug the rule of the Workers' class in cooperation with the
working farmers and other spheres of the working people. For the first
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Page 2 of ".
Enclosure I to
Despatch 529'
From: USBER
time in the history of Oermany the conscious guilance of social
developments is assured by the rule of the workers' class. The
gonsolidation Of the workers' ana farmers' state makes it
? neeeeeary that still closer relations be established between
:the governmental organs and the population, that the new social
democracy be developed further, and that its efficiency in the
fight against its kleerialist enemies and for the protection of
the socialist achievements be increased. The working people in
the German Democratic Republic look at the people's power as at
their state by which the build-up of socialism is being realized
and their own prosperity developed. 2he ,-,rowing socialist
?consoiousness of the workers' clasp enables the masses to =VG
forward on the road toward socialist achievements and to carry
'into effect the planful development of the political economy?
The great'economic and cultural progress achieved in the German
' Democratic Republic demonstrates the superiority of the socialist
? soeial,order over the capitalist one, as well as its tremendous
power and firmness which are based on the increase in socialized
property and on the consolielation of theNzialiet economic
system as tae economic basis of the state., In the German
Democratic Republic 88,8 percent of the indut..prial gross preduction
are produced by socialist enterprises and 927' percent of the
.trapsnort achievements of the traffic system are accounted for
by ,stateowned enterprises, Tath the socialized sector of the
agriculture already amounting to 33,7 percent of all farmland,
the 'superiority of socialist production methods becomes more and
More evident also in the agriculturafield, as is shown by the
;onsolidation of the existing and the formation of new agricultural
?reduction cooperatives.
?ile continued socialist transformation of the society confronts
the organs of the workers' and farmers' state with still greater
tasks and calls for a continuous development and perfection of the
state organs, their organization and working methods. Therefore, .,
the present stage reached in the political and economic development'.
in the German Democratic Republic and the tasLs of the continued
?sOciaIist build-up demand a thorough and comprehensive improvement
an4 simplification of the work of the state orGans0 The increasing
demands facing the state organs reeuiro a hir-11 degree of
0Onsciousness and improved perking methods on the part of all their
members as well as the creation of socialist methods in the .
Guidance of the people and their political and ideological education
by the state? Tho organs of the workers' and farmers' state led
? by the workers' ?lass and cooperating with the social organizations,
are faced with the treat task of carrying on the struggle for the
abolition of the old bourgeois-capitalist relations and the
UNCLASSIFIED ?
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Page of
Enclosure I to
Despatch .529
From: USBE,R
development of the new socialist relations between men.
BTperfecting and simplifying the work of the state organs the
unity of a rigidly centralized system of planning and directing
,the state and economy and of the participation on the largest
possible scale of the working people in directing the state and
economy will have to be carried into effect with even greater
consistency. The quality of planning mist be Improved
decisively and the strict implementation of the uniform state
plan insured. The trade unions, mass organizations and the
committees of the National Front of the Democratic Germany must
be accorded more elbow roam in order that they may be able to
cooperate to an even greater extent in the preparation and
implementation of the plans. They are incited to seize this
opportunity. The trade unions, as the organizations of the
workers' class, are requested to organize the participation of
the working 'people in the steering of production. Better
prerequisites will have to be created for having the local
representative bodies and their councils measure up in full
to the great responsibility., entrusted to them by the law
concerning the'loeal state organs, in the build-up of socialimm
within their local scope of competence. It has become necessary
in all state organs to apply the teachings of Larxism-Leninism
in accordance with the existing conditions of the social build-
up; The members of these organs will have to acquire a superior
pplitical education and a thorough technical knowledge in their
reepactive fields of work. The scientific team work of the
research workers, scientists and production activists is to be
advanced further. At the institutes of higher 1Jarning and
teehnical schools the uniform political and scientific direction
is to be enforced. In all state organs the methods of mare
administrative activities and their confinement to the respective
fields or duty will have to be eliminated, as the work of the
state organs must be based on firm connections with the working
people at the places of production.
The perfection and simplification of the work of the state organs
will result in a continuous increase in production and the
strengthening of the workers* and farmers' power in the German
Democratic Republic. This is in line with the interests of the
entire socialist camp and will help to meet the great obli3ations
assumsd by the German Democratic Republic as a member of the
community of the socialist countries.
The consolidation of the system of the people's democracy on
Carman soil, the growing superiority of the workers' and farmers*
state over the imperialist regime in West Germany will increase
the certainty.of,the victory in all Germany of the great ideas
of peace, democracy and socialism already realized in the German
Democratic Republic,
? UNCLASSIFIED
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Page 4 of
Enclosure I to
?
Despatch 529
From: USBER
To this end the People's Chamber has decided as follows:
I.
Article 1
The proposals concerning the perfection and simplification of the
work of the state organs submitted by the Central Committee or the.
$ocialist Unity Party of .learmany and by the Council of Ainisters
of,the German Jemocratic Republic are approved.
Article 2
(1) To. insure the fulfilment of the increasing tasks arising from the
build-up of, socialism, the work of the leading organs of the
.entire administration shall be improved as follows:
1. The principle of democratic centralism shall be applied to the
. activities Of all state organs, especially in the field of the
planning and direction of the political economy, The planning
within the individual branches and spheres of the political
economy shall be effected as a whole and on a local basis.
?. The right of every working individual to conscious and creative
cooperation in the production. and direction of the economy shall
be. guaranteed. The 'planning organs and managing boards in the
econOmy shall bring about a close cooperation with the trade
unio'n organs.
3 tn their activities the organs of the state administration shall
concentrate on the decision of basic questions and insure the
control of their implementation.
4, Pursuant to the law of January 17, 1957, concerning the local
state organs (Official Gazette I, p. 65), these Organs shall
'be fully responsible for the administrative and economic
functions within their range of competence.
5. The operative manageMent of the industrial, building, and
agricultural enterprises shall be effected on a more basic level.
The operative and economic independence of the enterprises
within the state planning system shall be strengthened and the
responsibility of the factory executives increased,
6, In the fields of research and teaching a closer connection shall
be established between scientific work anci.the practice or
spcialibt build-up. The scientific and technical experience
gained shall be applied more quickly to the efforts aimed at
IncreasinG work productivity.
UNCLASSIFIED
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Eneloburel I to
Despatch /529
From: upEER
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(2) The perfection of the work of the state organs shall be combined
with the simplification of the structure and working methods of
all organs of the state administration. The simplification of
the work of the state organs and the change in the working
-methods are supposed to result in the saving of financial moans
and manpower.
Article 3
(1) The State Planning Commission is the central organ of the
Council of ?.:inisters for the planning and direction of the
political economy as well as for the control of the implementation
of the plans.
(2) Tho State Planning Coamission shall prepare the drafts of
the prospective and annual plans concerning the development of
the political economy, It shall be responsible also for the
proportionaL development of the political economy and for the
coordination, as a whole and on a regional basis, of the more
important tasks of the political economy. It shall insure the
strict implaneaation of the economy plans.
(3) With thQ assistance of the economic councils of the districts,
the State Planning Commission shall insure the carrying out of
the centrally administered economic tasks by the enterprises
supervised by the local state prgans,
,(4) The sections of the :tate Planning Commission shall be
responsible for the planning, direction and control of the
economic activities of the a.7sociations of state-owned enter-
prises, They shall decide on the fundamental questions of the
implementation of the plans, as far as these questions cannot
be solved by the associations of state-owned ent_irorises them-
selVes,
t)) The State Planning Commission shall be responsible for the
planning of scientific and technical -developments. In drafting
its plans and applying the research and development results to
the production it shall enlist the permanent cooperation of the
Advisory Council for RoseareA and Jevelopments in the Field
of Natural Science (Research Council of the G)R).
(6) As an organ of the Council of Ministers, the State Planning
Commission shall organize international cooperation in the fields
of technical science and economy.
Article 4
The deputy ehairman of the .State Planning Commission and the
chiefs of sections of thev3tate Planning Commission may be
at"-ninted as ministers ,
x
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UNCLASSIFIED
Page 11 of
Enclosure I to
Despatch 529
From: USEiER
To this end the People's Chamber has decided as follows:
I.
Article 1
The proposals concerning the perfection and simplification of the
work of the state organs submitted by the Central Committee of the.
Socialist Unity Party of L;ermany and by the Council of Ainisters
of,the German Jamocratic Republic are approved.
Article 2
(1) To. insure the fulfilment of the increasing tasks arising from the
build.-up of socialism, the work of the leading organs of the
entire administration shall be improved as follows:
l. The principl of democratic centralism shall be applied to the
aptivities of all state organs, especially in the field of the
planning and direction of the political economy. The planning
within the individual branches and spheres of the political
economy shall be effected as a whole and on a local basis.
2. The right of every working individual to conscious and creative
cooperation in the production and direction of the economy shall
be' guaranteed. The planning organs and managing boards in the
econbmy shall bring about a close cooperation with the trade
union. organs.
3. In their activities the organs of the state aaministration shall
concentrate on the decision of basic questions and insure the
control of their implementation.
Pursuant to the law of January 17, 1957, concerning the lOcal
state organs (Official Gazette I, p. 65), these organs shall
be fully responsible for the administrative and economic
functions within their range of competence.
5,'The operative management of the industrials building. and
'agricultural entarprises shall be effected on a more basic level,
The operative and ecenomic independence of the enterprises
within the state planning system shall be strengthened and the
responsibility ef the factory executives increased.
6. In the fields of research and teaching a closer connection shall
be established between scientific work and. the practice of
spoXalist build-up. The scientific and technical experience
gained shall. be applied more quickly to the efforts aimed at
increasing work productivity.
4-ft
UNCIASSIFIED
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Enaltisure;I to
Despatch ;29
From: UpEER
(2) The perfection of the work of the state organs shall be combined
with the simplification of the structure and working methods of
all organs of the state administration. The simplification of
the work of the state ()roans and the change in the working
methois are SUDPOsed to result in the saving of financial means
and mnnpower.
Article 3
(1) The State Planning Commission is the central organ of the
Council of .linisters for the planning and direction of the
political economy as well as for the control of the implementation
of the Piens.
(2) The 3tate Planning Commission shall prepare the drafts of
the prospective and annual plans concerning the development of
the political economy, It shall be responsible also for the
proportional development of the political economy and for the
coordination; as a whole and on a regional basis, of the more
important tasks of the political economy. It shall insure the
strict implementation, or the economy plans.
(3) With the assistange or the economic councils of the districts,
the State Planning Commission shall insure the carrying out of
the centrally administered economic tasks by the enterprises
supervised by the local state ,organs.
(4) The sections of the State Planning Commission shall be
responsible for the planning, direction and control of the
economio activities of the aasociations of state-owned enter-
prises, They shall decide on the fundamental questions of the
implementation of the plans, as far as these questions cannot
be solved by the associations of state-owned enterprises them-
selVes,
(5) The State Planning Comaission shall be responsible for the
planninn or soientific and technical develop.rents. In drafting
its plans and applying the research and development results to
the production it shall enlist the permanent cooperation of tha
Advisory Council for Rosearc'a and Developments in the Field
of Natural Science (iiesearch Council of the GDR).
(6) As an organ of the Council of Ministers, the state Planning
Commission shall or,]anize international cooperation in the fields
of technical science and econaq7,
The deputy chairman of the
chiefs of sections or the',
a,Tr'Anted as mlnietersq
Article 4
,..tate Planning Commission and the
:tate Planning Commission may be
1.
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Enclosure I to
Despatch 529
From: USBER
Article 5
The Economic Council with the Council of Ministers shall be dis-
solved,
Article 6
()) AT;sociations of state-owned enterprises (VVB) shall be establish-
ed in the various branches of the economy to serve as the leading
economic organs for the centrally alministered state-owned enter-
prises,
(Z) The associations of state-owned enterprises shall, as a rule,
be under the supervision of the section of the State Planning
Commission comOtent for the branch of economy concerned.
(3) The associations of state-owned enterprises shall be responsible
F for the independent operative management of the enterprises and
institutions 'under their eupervision. Tho own responsibility or
-the.factory managers is to be maintained.
(4) The Ste Planning Coramission.may entrust the associations of
state-owned enterprises with certain coordinating functions
concerning the entire branch of industry concerned, especially as
regards/the supply of material,
(5) Thi) functions exercized so far by the ministries referred to
in article 79 paragraph 1, in the fields of research and engineering
ghe:a be conferred upon to the associations of state-owned enter- .
?Tidos or the councils of the districts, respectively,
The associations of state-owned enterprises are, as a rule, ,
Illpplemented by supervisory institutes for research and development
verk, The supervisory institute furnishes the research and
elevelopment livisions of the, enterprises affiliated with the
associations of state-owned enterprises with directives concerning
the planning and carrying out of the research and development
Pork and the application of its results to the production. The
/supervisory institute shall be responsible for the establishment
'of oonnections with research and development agencies outside the
"associations of state-owned enterprises which solve research and
development problems for the branch of industry directed by the
association of state-awned enter. rises or are consulted for their
advice.
*/
Article 7
(1) The Ministry' for Mining andletallurgy,
. The Unistry for the Chemical Industry,
The Lanistry for Coal and !:,nergy?
The Ministry for Heavy aachine Construction,.
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Page 7 of
Enclosure I to
Despatch 529
From: USW
, The Ministry for General Machine Construction,
TheMinistry for the Light Industry,
The Ministry for the Food Industry,
The Ministry of Labor and Vocational Training,
The State Secretariat for the Local Economy and
The Advisory Board for the Building Industry with the
Council of Ministers
shall be abolished.
(2), The functions of these organs which are not conferred upon
the associations of state-owned enterprises, the economic
councils of the districts or other state organs shall become the
responsibility of the State Planning Commission, unless they
concern fundamental problems to be solved on a central basis,
Article 8
(1) The Ministry of Agriculture and Forestry shall concentrate
its-efforts on the fundamental problems of the planning and
direction of the agriculture and forestry, more particularly on
the further socialist transformation of the agriculture and the
. ?increase in the a6ricultura1 gross and market production,
(2) The operative direction of the agriculture by the local state
organs shell be insured.
Article 9
(1) The Ministry for Reconstruction shall be converted into a
Ministry for the Building Industry which shall be responsible
for the fundamental teaks concerning that industry.
'(2) The Chief Administrations Shall be abolished. As regards
the construction material enterprises, there shall be establish-
ed associations of state-owned enterprises to be supervised by
the Ministry for the Building Industry.
(3) The local state ergans shall be responsible for the carrying
out of their own building projects. To insure the fulfilment of
these tasks, construction boards shall be established with the.
couneils of the counties, districts and larger cities,
Article 10
(1) There shall be established with the Council of Ministers a
Committee on Labor and Wages which shall be responsible for ,the
fundamental questions concerning work productivity, manpower,
the Protection of labor, wage policy and labor laws,
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'Enclosure I to
Despatch
JSR
(2) The Chairman of the Committee on Labor and Wages shall 'be a
member of the Council of Ministers.
(3) The associations of state-owned enterprises, the councils of
the counties and distriets shall deal with questions relating to
'work productivity, manpower, vocational training and the pro-
tection of labor,
(4) The control of the protection of labor at the factories shall
be the responsibility of the trade unions.
Article 11
Al? state-operated enterprises and institutions whose management
by the central state organs is not required shall become the
responsibility of the local state organs.
Article 12
(1) Vor,the uniform direction of the political economy, economic
?couneils shall be established with the district councils. The
edonomip-councils are organs both ,of the districts/ coundils and,
of the State Planning Commission serving the planning and control
of: the tasks relating to the political economy in the district
concerned.
(2) The edonomic councils shall prepare the drafts of the
prospective and annual plans concerning the development of the
political economy within the range of competence or the state
organs of the districts. They shall insure the strict
Implementation of the plans by all economic organs of the district,
They shall be responsible also for the management of the
associations of state.-owned enterprises, individual enterprises
and institutions under their supervision.
(3) The economic councils shall direct and control the work of
Os planning commissions of the county councils.
(4) The economic councils shall coordinate the development of the
centrally administered economy with the development of the economy
administered by the district and local organs. They may be
entrusted with certain rights of decision and'control regarding
the centrally administered economic organs and enterprises in their
district,
.(3) The chairman of the economic council shall be the deputy chair
man of the district council. The appointment and dismissal of the
chairmen of the economic council and of his deputy must be cenfirmed
by the .State Planning Commission.
UNCLASSIFIED
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Article 13
Page 9 of,,
Enclosure to
Despatch 529
Fr* USHER
tli The tasks of the planning commissions established at the county
()pumas shall be extended. To be able tocerry out their tasks
the planning eommissions shall be given more qualified personnel.
L*.) AS organs of the county councils the planning commissions shall be
responsible for the entire development planning within the county
and for the control and implementation of the plans. They shall
be responsible especially for the planning and direction of the
Coda-bp-administered industry, transportation, the municipal
?eeenomy as well as for the planning of manpower distribution and
PY Arceationel training in all fields of the locally administered
.economy? They shall be charged also with the planning of the
-supply of material and the allocation of the Quotas to all enter-
prises and other institutions requiring material within the area
under their jurisdiction.
(21 The planning commissions of the counties are under the super-
vision also of the economic councils of the districts,
(3) The ehaiman of the county planning commission shall be the
d6pUty chairman of the county council.
Article 14
(1) Fr the enterprises in the same branch of economy managed by
the district councils there may be established associations of
state-owned enterprises or supervisory agencies which shall be under
the supervision of the economic council or the competent technical
organ of the district council.
(2) To promote the operating capacity of the enterprises in the
same bramih of the local economy there may be established in the
ooenties supervisory agencies which are to be supervised by the
eompotent technical organ of the county council.
Article 15
v.
To improve the work at the places of production and at the local
etate and economic organs through the work simplification measures,'
additional personnel shall be made available to the enterprises '
while the staff of the local state and economic supervisory offices
shall be increased by experienced :washers.
piCLASSrFIED
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Page 10. of
Eciolocure Ito? ?
Despatch '529
From: USHER
.The Council of rinisters shall be charged with taking all
'measures reauired for the implementation of this law and, in
accordance with article 3 of the Lew. of November 17,49549
concerning the Council of lAnisters of the German Democratic
Republic, with deciding on the structural dhanges in the
organs of the state aaministration having become necessary.
;aiticle 17
This law ahall became effective on rebruary 15, 1958.,
:eporting official: Representative Professor Jr. Polak
13er1in$, Xanuary 23, 1958
/s/ Jallmann
Chairman
of the .1.a1 Comwittee
/s/ Jr. Tharmer
...A3cond Deputy Chairmen
of the ,iconomic Committee
UNCLASSIFIED
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ETAN \! CS
boboerning the (..rganizator. of the P:nnning of the Political
1.conomy
Dated February 13, 1958
STAT
In carrying out the law of February 11, 19581 concerning the
perfection ard simplification of the work of the state organs in the
rna_n Democratic Republic (Official Gazette I1 p. 117) by which the
Pe,ple's Chamber approved the proposals presented to it by the Central
Committee of the Socialist Unity Party of Germany and the Councils of
Ministers of the German Democratic Republic, the' following is decreed
pursuant to article 16 of said law:
Tasks of the State Planning Commission
The State Plarning Commissior is the central: organ of the Council 4-
t
of Ministers of, the German Demorrati. Republic for the planning and
direction.of the political economy as well as for the control of the

?
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the exploitation of all possibilities for the starting,
?
increase in or change of the additional production of consumer
goods;
the assistance to unprofitable enterprises;
the preparation of opinions to be rendered by the district
council on project plans and the approval of the sites;
the preparation of the opinions to be rendered by the district
state-owned
council on the changes in the centrally administered/enterprises
and institutions which have an influence on the economic develop-
ment of the district (as, for instance, the closing down and
combination of centrally administered enterprises etc.);
the determination of. measures aimed at fhe carrying oat of
investments of nation-wide significance,
10. The direction and control of the planning commissions at the
county _councils-
The composition and structure of the economic councils
at the district councils
. The economic council shall consist of:
the chairmn of the economic council (deputy chairman of ,thS
district council);
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ta(- deputy chairman of the economic council (chief of the
planning division);
the chiefs of the most importint technical organs of the
economic council, upon decision by the district 'council;
the chief of the finance aiv ision;
the chief of the diutric- Construction Office; .N(
the deputy chairman of the district council competent for
agricultural and forestry affairs or the chief of the agri-
cultural and forestry division;
tne deputy chairman of the district council competent for trade
and supply or the chief of the trade and supply division;
the chairman of the district executive board of the Federation
of Free German Trade Unions;
specialists in accordance with the economic structure of the
district, upon decision by the district council.
The chief of the district office for statistics shall path-
? cipate in the meetings of the economic council in an .advisory
capacity.
The chief of the State Contract Court in the 'district and the
. .
district coMmissioner of the Central -Commission on State Controls
are authorized to participate in the deliberation-of the economic
Council.
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The chiefs of other in:.'tAtutions may be invited to attend
the meetings of the economic council.
The economic council shall not consist of more than 17 members.
.he chairman and tne memfiers of the economic council are
a ,pointed and dism;th;ed ly the d:strict council.
The appointment and dismissal of the chairman and deputy
cnairman ef the e':cro- council mue,t be approved by the State
Planning Commission.
Cne member of the econc.,Lic council shall be responsible for
export affairs.
2. The rights and duties of the cnalrman of the economic council:
The ahairman of the economit council shall supervise he work
of the economic council and insure the assistance to be rendered
by the representative body and its permanent commissions as
- well as the cooperation with the social organizations and the
population in the solution Of the tasks.
The chairman of the economic council ?shall be bound by the
'decisions of the dis trict representative body and the district
'council as well as by the directions furnished by the State
- Planning Commission. The chairman of the economic council
: shall be responsible and liable to render accOunts to the
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z
"I?
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district council an d the State ?lanning Commission for the
Aork of the technical organs, the unions of state-owned
enterprises, enterprises and institutions covered by the
economic council .
The chairman of the economic council shall be authorized to
give directives to the chiefs of the technical organs forming
part of the economic council, the .chiefs of the unions of
state-owned enterprises, enti.rprit,es and institutions and the
cLairman of the planning commissions at the county councils.
The proposals made by tne economic council and subject to
confirmation or decision by the district council shall be
submitted to the district council by the chairman of the
economic council.
;. The scope of activities of the economic council comprises
the following technical organs:
Planning;
Supply of materials;
Labor;
Food industry;
1.
Electric energy supply, inclusive cf the fillectric energy commissioner;
Transportation;
Water economy;
handicrafts, private industry and local eoonomy.
a
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In accordan:e witi. thc economic structure of the district
concerned the district councils may, upon decision by the
district council, _esx,.blish further technical organs coming
? - under the jurisdiction of the economic council, as, for
instance, for
machine construotio. Isencineering);
tlight '-nduJtryi
the textile industry.
In the case of a larh:er numb6r of district-administered enter-
prises of a branch of industry, unions of state-owned enters
rises may be e3tab11-4ed in the pie of technical organs.
Upon decision by the distrxct 'council there may be established
a section of the district-administered industry, if the small
number of enterprises makes it unsuitable to establish a
special technical organ or a union of state-owned enterprises
for their supervision. The wervision of the enterprises by
the technical organs may be carried out with the assistante
of the leading enterprises.
The tc^hnicel rsv-genA ,e1A enienc of state-owned enterprises
under the jurisdiction cf the .economic council shall be
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re7onsib1e for the control or the branch of the industry entrusted
them.
They shall discuss import an measures with the working people on
a wile basiss :7,1.1te considerat tor to their proposals and suggestions
a'1 mhbil 1 ze the working people for tne fulfilment and overfulfilment
-f the plans.
:v-,py shall base their pertif.ent activities especially on the trade
union and the committees of the National Front of the Democratic Germany.
The principal tasks of the planning section
I ne planning section shall .1-ave the following principal tasks:
1. TI-1e elaboration of the development programs on the basis of
connmi c analyses
2. re elaboration and coordinpt Ion of .he directives proposals' and
drafts of the long-term and economy plans
Rendering of opinion on the iraft budget plan of the district.
3. Tne determination of the principal key figures and of the detailed -
plan tasks in all fields coming under the jurisdiction of the
economic council.
L. The determination of the prncipal key figures for the plans
40,
relating to agriculture and forestry, trade and supply- and .
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the building economy in 'lose cooperation with the pertinent
technical organs.
the determination of the principal key figures and detailed
plan tasks in the fields of poplar education, cultural,
- public health and social affairs, youth affairs and sports
in close cooperation with the pertinent technical organs.
6. the determination and compilation of the principal key figures
for the long-term and annual draft plans of the counties)
the coordination of plan proposals submitted by the county councils.
7. The planning of the export of the district-adqinistered
industry and local economy.
8. The elaboration of opinions to be rendered on the plans of
the centrally administered economy.
?
In questions relating to the methods of plAnning, the chief
of the planning division shall be Authorized to give instructions
to the chiefs of all technical organs, unions of state-owned
enterprises and institutions of the district.
B.
The planning commissions at the county aouncile
I.
The sta?ius and the tasks of the planning coMmissions
at the county councils
The planning commissions are organs of . the 'county councils.
They shall carry out their acti'vities On the .basis of,and in
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-
carrying out, the laws and decisions of the People's Chamber,
the ordinances and deci3ions of Council of Ministers and the
decisions of the district and county representative bodies and
their councils.
They shall be resi:ons1Lle to the county councils for the
et.tire planning of th... Je4v.e 1 opmen t of the county. The planning
commissions and the finance divisions at the county councils
shc.11 jointly elaborate the economy plan and the budget plan
of the county on the basis of the decisions of the county councils
and of the directions received from the economic councils at the
district councils or of tne finance divisions of the district
councils, respectively. Both. plans shall be submitted simulta-
neously to the county councils for confirmation.
' The elaborationf implementation and control of the plans must
be effected with the large-scale cooperatiOn of the working
people, especially in close cooperation with the trade unions,
the other .masa organizations and the committees of the National
Front of the Democratic Germany. The planning commissions at
the county Councils shall have the following tasks:
1. the elaboration of development programs on*the basis of
economic analyses.
A
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2 the elabo rat ion and coordination of the directives and
proposals relating to the long-term and economy plans and
the draft of the county plan.
The county plan shall comprise the principal tasks of the
economy plan, the budget plan as well as the tasks of the
National heconstrwct.,,on ;;:rk.
3. the ela.b ;ration of tr. dtiiied tasks of the economy plan
in close cooperation with the technical organs in all fields,
with the exception of af:riculture and forestry, trade and
supply and the buil di ne economy.
In the fields of agrl:ulture and forestry, trade and supply
and the building economy, the key figures shall be fixed by
the planning commissions. The detailed plans shall be elaborated
by the competent technical organs on this basis.
4.. the planning of manpower distribution and wages as well as of
vocational training; close cooperation with the trade unions,
,Tcpeoially the district executive board of the Federation of
Free Germbn Trade Unions, in all questions relating to working
conditions, the distribution of dinpower, the 'planning of wages,
the observance of the industrial safety regulations, the con-
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clusion and implemen tt Inn of thu collective factory
agreements, the transportation of workers to and from
work, etc.
?
5. the assistance to be rendered to the towns and communities
in the elaboration and implementation of the town and
village plans.
the operatIve control nf tne pan fulfilment in cooperation
witn the tecnnical organs of the county councils, the regular
appraisal of the stage reached in the plan fulfilment, the
preparation of analyses on the plan fulfilment status.
7. the planning of the supply of materials and the allocation
of the quotas to all enterprises and agencies requiring ,
material within their field of activities;
dispositions regarding the most appropriate utilization of the
material and the introduction of progressive methods of
engineering;
the most appropriate utilization of the existing capacities,
the exploitation of local sources of raw material and other
local reserves.
8. the advancement of ,the trade union-sponeored contests system.
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jevelopment of the
- 9. DLipos,tions rETardinv Crie/centradly and district-administered
economy, especially by:
the carrying out of the council decisions regarding the
aid and control of the, fulfilment of the plans concerning
mass
the additional production of/consumer goods;
the registration and distribution of waste material.
suitable for f,tirtner use and of other local reserves;
the carrying out of investments for social, cultural and
sanitary ihstallat-ons ar.d for further measures resulting
from the development of the centrally and distrlct-
administered economy for their respective scope of
activities;
the assistance in. tne -carrying out of central investment
projects;
measures aimed at insuring the distribution of manpower
in accordance with the requirements of the political
economy .arid vocational training;
the control of the implementation of. the manpower and
vocational training plans.
- 10.. Ahe integration of the private economy into thesocialist build-up;
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a a a
'a IMP 'a
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the promotion of the establishment of production cooperatives
of the handicrafts and of state partnership in capitalist
private enterprises.
The composition and structure of the planning commissions
at the county councils
1. The planning commission shall be composed of:
?
the chairman of the planning commission (deputy chairman of the
county council);
the deputy chairman of the planning commission;
the chief of the material supply section;
the chief of the finance section;
the chief of the agriculture and forestry section or the deputy
chairman of the council for this special organ;
the chief of the local industry and handicraft section;
the chief of the county Construction Office;
the chief of the trade and supply section; '
the chief of the food industry section;
the chief of the obligatory deliveries and purchase section
and a representative of the trade unions.
In accordance with the economic structure of the county, the
chiefs of further technical organs as well as specialists, as,
for instance, MTS-directors, may be appointed as members of the
planning comwtssi.on by the county 00111-tang"-,
?z?
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The chief of the county office for statistics shall parti-
cipate in the meeting of the planning commission in an
advisory capacity. The county commissioners of the Central
Commission on State Control shall be authorized to participa'e
in the meetings of the planning commission .
The planning commission shall not consist of more than
15 members. The members of the planning commission shall
be appointed ani dismissed by tne county councils upon
proposal by the chairman of the planning commission.. One
member of the plannin commission shall be responsible for
export affairs.
2. The planning commissions shall be responsil;le for the planning,
- direction and control of the district-administered industry,
transportation ana the communal economy.
Upon decision by tne 3 ouncil, the deputy chairman of the
council and the chairman of the planning commissi9n ilay be
entrusted with the supervision of further techniOal orgams.
The assignment of the various fields of activities to the
deputies of the chairman of the council shall be cleoided?by
the councils on their own responsibility. According to
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article 40 of the law conrning the local organs of the state
ariministration, they are authorized to give orders to the chiefs-
nf these technical organs and to the chiefs of the enterprises and
in-,titutions under their supervision.
1 The planning commission is divided up into
The long-term planning group
the operative annual planning group
.the coordination group
the material supply group.
4. The pr:Tosals elaborated by the planning commission which are
subject to confirmation or decision by the county council shall be
submitted to the county council by the chairman of the planning
commission. The chairman of the planning commission Shall direct the
wnrk nf that.commission. He shall be responsible and liable to render
aceounts on the work of the plannipg commission to the county council.
Pi
?
The direction of the district-administered and local State-owned-industry
and handicrafts
The following principles shall be observed for the direction of the
?
district-administered and local state-owned industry, of handicraft
`OF
enterprises with a state partnership and of the private capitalist industry:
? 6.
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The district-administerq(! aud loca; .itate-owned industa
1. ."P orincipa) aim of the :istrict-administered and locally directed
r4tate-rwned tndustry shall he thP fulfilment of their tasks set by th.,
plan; with special consi4eration to be given to the rapid increase in
he production of nigh-quality and new mass consumer goods to meet
the increasing demands of the population and the most suitable
expinitation of all prod-tion capacit4es and material reserves.
2. The district-administerec in-4ustry shall be established from among the
enerprises previously manage on a local basis and the enterprises
released by the ministries, above all those of the light and food
industries, and be placed under the supervision of the district councils.
The operative management of the, ,enterprises shall be effected by the
tochnical organs of the disfrict councils with the assistance of the
leading enterprises -)r the unions of state-owned enterprises.
3. Upon decision by the district representative body, unions of state-
owned enterprises of the district-administered industry may be
established with the consent of the State Planning Commission)
provided that a larger number of enterprises of one or more ?industrial
branches of a similar type of production is controlled iqk the
district councils.
^
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? ? e - ??e
t1.4 .4 r
:
P ..io irpSeS above al
- to (If the term
:f
I ieorf-u.r. izati on of :he
. .1 ? ...ation
? - .r s ? ered and .
4, A ? ne onterprises wits a
the district counc
1 e .r.dustrial branch
..1....ini.:tered union of
y .C113 May determine
.eadine. er46 -n- - state-owned ..ndus!..:-:-t
rpri:es, if a arc-: .o:=r of the same
:at,,q7-ory Isjocte
enterpr. ze the exchange of
experience. By mca..8 economic conferences and inter-
factory cempar..sons t Lest rest its and methods of improving
?-ne technoloe,y and v. org.anizat iori etc,. shall be made
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able to all enterprises, especially t those lagging behind
in profitableness.
The leading enterprise shall nave no right to interfere
with the management of the enterprises of the industrial
branch in the form of ihtructions.
oevral smaller enterir,see of tne same branch of production
or :iupple:Lenting iaL oer which are administered on a local
baS1S by the councils of the counties, towns, city boroughs
and communities may be combiped, if this would result in
increased profitableness, tne perfection of the management
and the reduction of costs.
The combine ion of enterprises must be approved by the district
council.
6. The transfer of the centrally administered state-owned industry
to the district-administered or local state-owned industry
shall be effected with the consent of tne distric.t representative
body, unless a pertinent decision has been taken by the Council
,of Ministers.
District-administered or local state-owned industrial enter-
prises shall be placed under the supervision of a centrally
_
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A
tlministered union of state-owned enterprises only in
exceptionsl cases and if require i for political or economic
reasons. The approval oi the dlatrict representative body
enall be required, unless a pertinent decision has been
taken by the Council of Ministers.
7. As a rule, the local state-owned industrial enterprises shal
be under the supervision of, and administered by, the counoils
councils of
of the town and rural cot.r.t Les or of the,/ larger towns located
in the county, and community councils.
Smaller state-owned industrial enterprises may be placed under
the supervision of the community councils or the councils of
tne city boroughs. changes in the status of enterprises
within the district-aiminitered and local state-owned industry
people's
shall be decided upon by the/ representative body of the district
people's
or county, respectively, after- consultation of the lower/re-
presentative bodies concerned.
4
Enterprises with a state partnership'
1. The enterprises with a state partnership shall be included in
the planning System in accordance with the same methodical
principles as are applied to the state-owned induitry. They
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? z'o:,c,ir r production
cies Le a::c.c.*Pd ae.r 'ter.a.. quotas by the .
t,:.t
itered. 1 the of cooperative
.1:1s w,%h ent,crpr.:,eJ tl.ti ?tate-owned industry, the
of mi.'erial [Lay .
tht, A'at-owned
?-,t- basis o: co- arreeme; tu.
pllcat!ons concer1.1-4, .1.e acceptance of state partner-
admin.strat.ve supervision shall be decided upon by
t:4e i.stric:, councils up,n r.onsultation with the county councils.
2ne administrative status of tr.e c,?%trally-administered unions
,)f state-owned enterrlses shall cc deciced upon by the State
ilu.:ining Commission,
5 To insure :he qualification of the economic functionaries of the
entrprises with a state partnership, regular consultations and
the exchange of opinion on political and economic questions
shall be organized by the district councils on a voluntary .
basis.
Handicrafts
1. The handicrafts shall be directed and furthered by the local
councils in a way promoting the manufacturing of high-quality
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and maintenance.. work
??,,, ? ?
4 07-) '?
,-
4te
The economic activitieB of the handicraft enterprisea shall
be directed above all by the supply of material ::from state
?
.t.4014111 -i1irrrItriter,44tittf, 4- -.4 0 g_k?)t ? +A_ _ ? ? t ? '4;..
) d I? :
r
enterpriaea and the handicraft purchase and deliv,ezr,coopersitives
*
t .. L. ,.?S ?,-: ,1 4 t: c.0'.1 , 4 , . -
. ? ..
The local. coupe ilei, ahall furnish .the handioraft - .:ir
,* - r.'... , , ; , -?-?; '-'?:".* ; ',..,
?-
. , 4 2.. x ?
.
tiVeS with directiV'es- concerning'-the :developmen
, .
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4,
? , ?
1.1%,
. are ? S
.Ddes.
:.).
erat:ves snail
nanc.
Inn
;
"
. snail oe ebtac:isbel
tion cooperL.tives
--onsolidation and
as well as in tne
of craftsmen still
.1..cnase and aelivery
ring offers to the local
: ,ounty councils.
oas,s of the Lanufao-rino:- offers they will be
allocated tae mater. I. .le .111,-.!at:or may, however, be made
contingent upon tr.e var.f..c.turInw ol certain products. The
county councils sne.:1 ,:o:.tro. the .:omi..i,ation of manufact4ring
offers by t.,e parcn,:. ard deliver: -o2peratives. Members of
the purchase arld del.ve-y ccoperailves may also receive their
material allocation J.Lota:z a.rec'ly from the planning commission
at the county council or the technical organs.
.5. The principal task of tne ilstrict chambers of handicrafts
politically
and their county branch offlram ,0 that of/influencing thg.
craftsmen 'and qualifying Vaasa for a:: intensifled integration
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- 29 -
into the socialist build-up. The distr,ict chambers of handi-
crafts shall be under the supervision of the distriot councils,
? ?
while the county branch offices shall be supervised by the
district chamber of handicrafts anethe county 'councils. They
will operate in .accordance with the directives,received from
the councils.
IV.
Capitalist Private Industry.
1. On the basis of the responsibility for the. 'capitalist private
enterprises entrusted to the local representative: bodies and
councils by the law concerning the local organs of the state
administration (article 6) , the local councils shall direct
? ? ?
the economic activities of these enterprises- in:.'ab000rds;nos with
? . ?
,
the key figures of the economy izi.an by the al),Opation of
material,, the registration of the marketing oonra;cts as well
,
?;,?
as by the License, procedure and 'other me urea.
2. The Production agreements and the supply otterial Shall be
effected on .a contractual -basis. Contracts, bit!sen partners
in the pri.vate. economy 'must be confirmed hy-,the ,technical
organs of the c9unty oounbile and are' subject ?-t the pdyment
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30
of fees. The material will be allocated from government
stocks on the basis of the regdstered contracts. In this the
largest possible consideration shall be given to the exploitation
of the factory's own and of local reserves. In the case of
cooperative relations with state-owned enterprises, the
material may be allocated also by these enterprises.
3. The principal task of the district directorates of the Chamber.
of Commerce and Industry and of their county branch offices
shall be to bring to bear a political and ideological influence
on the owners of private capitalist enterprises with a view to
advancing their integration into the socialist build-up.
The district directorates of the Chamber of CoMmerce and Industry
are supervised by the uistrict councils. The existing county
branch offices are supervised by the district directorates'and
the county councils. They shall receive their initractions
from the councils.
4. The Presidium of the Chamber of Commerce and Industry 2.in"d'
its orgatts will be abolished.
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1)
z.ffocsi..ve Date
This ordinance shall beco:Ie effective on February 15, 1958.
Berlin, February 13, 1958
The Council of Ministers
of the German- Democrat1z Republic
-Stoph
De pity Chairman
of the Council of Ministers
J smite t zky
State Sedre tetry
for Local Colincil Affairs
..?
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rr. Lorenz ? r.ssner
concerning the orgdr:a zuLior. 0: _ne building industry
eu rebruary 13, 1958
In carrying out the law of re, ruary lio l''58, concerning the
:perfection and simplification of the work of the state organs of
, the ,;,.rman Democratic epublic (0ificial jazette I, p. 117) by
which the People's Chamber arproved the proposals concerning the
r gan i :at ion nr the building in iustry presented to it by the Central
CrImittee of the Socialist Unity Party of asnmany and the Council of
?
Ministers of the German LAmocratic depublico the following is decreed
pursuant to article 16 of said law:
A,
Central organs and institutions of the building industry and their
tasks
I.
The Ministry of Const-ruction Affairs
1, The Ministry of Reconstruction shall be. converted into a Ministry
of Clnstruction Affairs which shall be responsible.for.the uniform
direction and supervision of the building industry and the con-
sllidation and further development of the socialist es et or of
-
this industry. It itall carry out all the planning ,of 4Japortanos
4 -
to the economic and technical development of the b044inc industry.
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;
STAT
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The Ministry of Conatruction Affairs anall be responsible fors
a) the legislation for and the supervieion of the beiiding industry,
control of the-p/Sns for the
. ,
, .
; ? ?
plan for housini,tionatruction
?
and the application of the reeults of reeear4h.,
'7.
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-3
the union of state-owned enterprises of the building elements
and building expansion industry with its seat in Leipzig.
l'he establishment of the unions of state-owned enterprises shall
be regulated by the Minister of Construction Affairs by means of
decrees.
The Minister of Construction Affairs shall issue statutes for
the uni-ms of state-owned enterprises under the -supervision of the
Ministry of Construction Affairs on the basis of the. ordinance
concerning the statutes of the unions of state-owned enterprises
?
within the scope of the otate Planning Commission.
4. To improve the direction of the building industry, the transfer
and take-over of state-owned enterprises of the building and building
material industry shall be effected on the basis of annex 1.
Deviations from this procedure are subject to approval by'the
central operations staff establIghed by. the Council of Ministers.
5. rhe colleges and vocational schools listed in annex 2 shall, be
placed under the supervision of the State Secretariat for college
and vocational school affairs.
The technical management of the colleges and voCational-schools
'
supervised by the State Secretariat for colleges and *ational
Schools shall be exeiscized by the' Gert. Building,,t
of the Ministry of Construction.:Affairsi
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4
???
11.
Advisory Boar. tor Construction Affairs
1. he Advisory Board for construction affairs at the Council of Ministers
the 4erman 'Amocratic Aepublic will be dissolved and replated by
the Advisory Board for consLruction affairs at the Ministry of
Cc,nstruction Affairs,
.he Advisory Board for construction affairs shall assure the
c-ordination of buillirg projects and the continuous contact of the
Ministry of Construction Affairs with the construction offices of the
local organs of the state -administration aid promote the collective
cooperation of all organs of the building industry.
2. rhe Advisory Board for construction affairs shall be composed of
representatives of the district councils and other local organs of
the state administration, representatives of the building enterprises
and of the trade unions, representatives of central state organs and
of the German Building Academy. Its chairman shall'be a representative
of the Ministry of Construction Affairs. 1+; permanent secretariat of
the Advisory Board for construction affairs shall be established at
the Ministry of Construction Affairs.
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-5
3. The Advisory Board for construction affairs is an advisory- organ.
- Its special tasks are as follows:
a) the discussion of the plan proposals of the economic and technical
development in the field of building, inclusive of the, legal
regulations and directives on the investment policy in .thi
building industry,
b) the rendering of opinions on the research, developAnt and standard?
ization project plans as well as the promotion .of ths application
-)f research, development and st andaniii et ion project 'risilts in
practice,
c) the discussion of measures aimed at assuring the- overall building
projects, especially places requiring a special building effort
and in large cities,
?
d) the discussion of the planning of important towns' ind. installations.
III. 9
The German..uildin Acade
kto.
1. The German Building Academy shall be converted into e:,:conrain-
stitution for the research and development in all'fielda-ortheC..
building industry. It shall be the head organiiatiOn..of th'Opet
!
important institutions in the field of building.;:::14040.01Mg lOta
-
the economic plans the German?Building Acidamy-s
_
1.4
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or
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?.?
-6
scientific and technological prerequisites for the development of
-
ihe building industry, in the German Democratic RepWino, It shall
, .
be responsible for the coordination of Scientific and technological
,
,
activities in the field of building. '
? .1
2. The Gelman Building Academy shall be supervised. by.1.441: Z4in..ist.17 of.
. J.
Construction Affairs. To assure a close cooperation ,between the.
Ministry of Construction Affairs and the German Building Acc4,4,
a representative of the presidium of the German Building Academy
shall be appoittted as' a member of the Board of. therMinistry of
?
,
Cmstruction Affairs, while, a leading meiber of the Ministrp-of
? '
?^ ?
Construction Affairs shall become a member of the iresidites of ' ?
644,
the German Building Academy.
3. The following instituted controlled by the Ministry Optieophitruction
shall be placed under the supervision of the German;7114 .3441#8
.?
Institute for t.he?Builcling ,IndustFy inLet
4:3
Institute for- Balding Material." in Vielisei).
.,; . - ?.:t .
Institute..?for:Ztendardization id' -,'Berlin'
,? . t ,.. .,? ... :. , .:,,,,, .:_-:',4i ...,,,-?...:,?-;,./: ,t..;..i,..t-:-.3-..--,..., ,....-...,';',..
in Halberetedt:And.DrAiiden;:'-'fk -
,...?.,..,
:7
? -
The German,Building Exhibition'in
-?A
? _ .7,
-775TAR
,efAw?
of Terilifi.
-
building i'n hall ?be
Leipzig plad under:.
? ? .
*.? ? ? '
Gerriv,i-tialdiiig -A
?
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re estab1ish7nt of' c.1%.6,-xt.lor c tfe6 in oistrictS, counties
ass_ swr
?'ons'rucCon ofr!cec 1. ;Is%rict;,) court-ies and towns
. he existing rec %tructi in divisions a.n1 ,he head or chief
arcritects: t& loca, organs of tne state administration
hall De Inf,rf;e1 and c. it-rted into Lnatorm Jistrict, county and
towns :lot under county administration,,
.f required, cons, ruction .sffices may be established in county?
iiministered towns. .,sne district council will decide upon their
establishment.
1. .'istrict construction office
?
;'he district construction office shall be responsible for a uniform
the
control of building activities in the district and be under the
supervision of the district. council. It shall be responsible
_
for building projects in the district oh the basis of key figures
of the economic council at the district council. The district
construction office shall be responsible for the guidance of the
district enterprises and institutions under its 'supervidiOn, as
well as for the technical direction of the district and, town
construction offices. Moreover, it shall be responsible for
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4
he technical and designing problems of the regional planning, as
well as for the overall planning, building projects, preparation
and carrying out of large-scale building projects in the district.
The district construction office shall be supervised br-the
have
dist,rict director of construction affairs who will iisodrititbuttlx.
a deputy. In technical questions, the district construction office
will be advised by the Ministry of Construction Affairs. The.
district director of construction affairs is a member of the economic
council with the district council.
2. County construction office
The county construction office shall be responsible for a uniform
the
guidance and. control of .building activities in the county. It shall
carry out the planning and the control of the building industry in .
the county on the basis of key figures of tt2e planning ccend.ssion
with, the county council. The county construction off ioa shall be
?
responsible for the direction of enterprises and institutions under
its supervision, as well as of the town construction 'OffioSis? of,the
-
county. The 'county construction office shall be also respotis'.
;,ibis
?
for the overall planning, projects, the preparation- tuid carrying Out
,
?
'.44et
of the blinding projects in the county. The county conOViU4i*,=OifiOs
shall be supervised by the county director of construction .affairs
-
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?
?
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a
-9
- who will have a deputy. The county director of construction affairs
will be under the supervision of the county council and ?be .advised
in technical questions by the district construction office.. The
. .
? county director of construction affairs is a member of -.the 'planning
commission at the county council. The county building adthini, .stration
offices shall take care of the planning and the investment: building
cnntrolfoi all building measures taken by the county with the except-
ion nf large-scale compounds to be decided upon by the district
cnnstruction office. Smaller project groups shall be ettsblished
for designing purposes at the county building administration offices.
In counties Wnd towns in which there exist the prerequisites for the
establishment of designing offices of their owns the iatteie shill be .
established and incorporated into the county building:adiSinistration
offices. The establishment of these offices -is iiibaisc;t; to, ci,Ireision
by the district construction office.
3. Construction Office in towns not under county administration
The tasks and the structure of the construction offices. in towns.
?? ?
- not under county administration shall be established sii1ar to
county construction offices. The town constr4otion.offitoss.'shii.13.
, .
be controlled by a director of town construction:iff04*.:Who;Will*:,
,
%.=
be under:thoHiupervision of the city council and
?????????.????????11
?
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technical questions by the district construction offico. Re 'is a
-meMber Of the planning commission at the town council and ?has a deputy.
. ?
, .
In counties of particular importance, as for instance-In.large
, -
district towns, the structure of the construction OffiaOhal.l-bs .
adapted to that of the district construction office:
".
In largp cities with 'city boroughs, borough conitrUction offices
?
shall be established. The tasks of the borough conebrUOtiop.ciffices
are similar to those of the construction ?Moss 1.6-ifi:adadilistered
'f
towns.
4. Town Construction Office in count -ackinistered
;
Construction offices can be established in count.
?
bCa
towns, The town construction office 8111 be
- of construction affairs under thh supervision of t6ig
_ and advised in technical questions by the 'Ounty1c*:'4
The county oouricil shall decide c4;the establiih*On
- ?
constrUO4Onsoffia
. ,
???.? ? ??? ????iK?4141,41.4 ?? 4.?.? * Ver?a?11.1.14
Ir.'eA.,FA0';'' ?
A ,
err 7.44 il*"'
Fox...the jolution, ,of
;
. talkti
?
. ? ,
. ,
Cal ik econamiC.counail s
advisOvPr
11.????????:.
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C.
The State Supervision of Construction
In the interest of a strict construction control by the state
??
supervision authorities, the designing offices and construction
enterprises shall be relieved of their duty ofcontrolling the
quality of Construction. The state supervispn of conetrpction
? ?
shall constitute the exclusive task of the organs of the,;stats
administration. The Ministry of Construction Affairs shall guarantee
-
a uniform supervision of constriction activities in the.Cierman_.
Democratic Republic.
Da
?
1
The teaks of planning and material supplying tithe fieltt
of building and construction
I.
Plarinityf
1. The Ministry of Construction AiTaire shall.woik 'mkt
directive for the annual plan proposals on the basis of the
r+,
basic economic conception. This directive shalt'
- economic
most important/key figures of all parts of the
submitted to the State Planning Calmission-fOspp
. ? .
2. The Ministry of-ConitruatIon Affairs shall ;r?464
?,.
State Planning Commission the...key Tiguris ?dote
. ? , _ z
-?
approve.?
-a -diisci
_
%
7-
s!, for the unions Ot'steto ow*
?;w:.
.under, its superviion, as wellc-?asii;Or
???"' ti+,4,0W+ f+ ?
,
Xr-N4t4g t-'4: 4
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rhe district construction offices will receive from the,Stlite
. ? s"
111 4?';?7.
_Planning Commission ? through the district council -? the; posit:t.' ? :
f ?
? ? "
Important key figures for the local building industry: ?
?. . ,
,
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? 13 -
4. The State Planning Commission will turn over to the Miniift.?17.0
Construction. Affairs, as state tasks, the approved kierfigures
e ,
for the unions of state-owned enterprises under its iupsrviiioti,
a?
tI
? r
as well as for the industrial construction.and-bidatii
djvision SiMultaneously, the Ministry Of Construi446d4ifsi*s
? will be informed of the state tasks assigned to the. district qpuncils,.
The State Planning Commission will forward the state tisks to?
p,
the district councils.
:
5. The county councils shall receive the approved planninglakake. f:com
ths district
4
6. The Ministry of Construction Affairs shall itOrk in, .
50.
?
with the district construction oftices on all quesO.Cok
0
the plan implementation and control..
The scope .of competence of the ginieter of Construetica'-
,
in carrying out building industry plans ia detirstine,
.?
Sf January 17, 1957 concerning _the:104.1 ;organs ot,t
administration (off*-4.naz4t,...4f page 65
7. In elaborating district, plans,- the,
t , -
- ?
?
J It ?
a
shall require the 'el*UpPc'it' of. the is riots
' .
of the Gerinan Building?;4cademy...an&
- ,
, ?
?
4?4?????????????3
4.?
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14
LT ply of Material
1. The planning and supplying of material shall be carried out in
accordance with the building volume and on the basis of directions
from the State Planning Commission with regard to the details of
_planning and distribution of material for the individual.eara.
2. The 'Ministry of Construction Affairs Shall be directly responsible
for the planning and the supply of material to the union- s of state-
owned enterprises under its supervision and to the industria.l.
construction-and-designing division.
3. The Ministry of Construction Affairs shall submit to the State
^
Planning Commission the material requirements' plan elaborated .
in cooperation with the district construction officeiii% the**.
-of state-owned enterprises and the industrial construction-and-
designing division.
4. The planning 'and supplying of material shall be carried:0W
for all basic and auxiliary mateilkals, for equipmenti;inclUsiie
of steel constructions, and. for imports.
5..The Ministry of Construction Affairs shall balance
materials whiCh have not been balanced- 4, the
?
2
oa....r..????????.1
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211'5 ?
with regard to quantities and assortments, shall determine their
listribution and guarantee %he realization of the production.
6. -en the basis of this accounting, the Ministry of Construction
Affairs will forward the plan concerning the supply of building
materials to the district councils in accordance. with their
building vnlume and guarantee the inter2distriot SUPply-tif
building materials.
7. The district councils shall decide, on their own responsibility,
upon the purpose of use and the distribution of building materials
to the county councils.
8. The district councils shall see to it that the export business
and the supply- of districts be given priority.
9. Building materials which have been produced in local enterprises
in excess of state tasks, as well as those obtained by making
? * ? -
local reserves accessible, will be made available to -tbe district
council to a 'full extent.
.?
10. The quantities of building material determined for.usCOt,the
: ?
,. ? .
population shall be distributed by the district orcounty councils
to the consimities with consideration being given.. to the':cooperation ?
of .acti/iiitsi groups of Permanent Commissions at 'tbiAoseiple s
representatives' body.
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U. Acenrding to the directions by local:organs, the state-owned
enterprises "Building material supply", being under the super-
vision of the district councils, shall be responsible for the
overall operative supply of the territorial building activities
with building materials.
12. As a rule, the building materials shall be supplied by direct
relations between the production enterprises and the customers.
. .
13. Tr, guarantee the supply of building materials for Wilding projects
of particular importance, a dispatcher service Shall be established
Effective Date
This ordinance shall be.come effective as of Februart 15,_1958.
Stoph
Deputy Chairman
pf the Council
,of Ministers
The Council of Ministers
of the German Democratic Republic
tljnkler
Minister of Reconstruction
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ORDINANCE
concerning the statutes of the unions of state-owned
enterprises operating under the State Planning Commission
Dated February 13, 1958
Ti'. Lorenz
In carrying out the law of February 11? 1958, concerning the perfect-
ion and simplification of the work of the state organs in theGerm=
Democratic Republic (Official Gazette I. p. 117) by whish the Peoples
Chamber approved the proposals concerning the statute of the unions of
state-owned enterprises operating under the State Punning ammission
presented to it by the Central Committee of the Soeiabiet,Unity Party
of Germany and the Council of Ministers of the German Diliotratiork
,
Republic, the following is decreed pursuant to artiele16-ii,said
I.
The State Planning Commission shall issue a statute?for?tech.Of the
unions of state-owned enterprises under its jurisdiction, in accordance
with the following principles.
11.
To simplify and perfect the direction of the stater
-state-owned enierpriies and for the furthers. anf6Sa'
,
enterprises havabeen,astablished. Ille unity-of'thi
... Aaqiil:
. : ? .
,.--,
STAT
;
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;
- 2 -
iirection and of the coc4-]lat lemocracy0 the management of the industry at, tne
p-,duction basis and the viol, nd =bureaucratic evaluation of the experie.ce)
' will
renp-,sall hnd criticism by the workers and the technical intelligentsiVenabls
t_he uri-rs of state-owned enterprises to raise tre relations between thn
Pc -Lc-rgans and the wcr-ine people a-i their organizations to a higher
le-el cnrresponding to prodiction conditions in the Ger.'
lee-,cretic depublic,
Tte ,Inions of the state-oweei e....terp-ises are organs of the workers-and-
flrmr-power which, in ancordance with the principle of individual managelzent
and the collectivity of labor insure the operative direction of the entire
ennnomic activities of the enterprises under their supervision in close cooperation
with the local organs or the State.
Legal Status and Seat of the Unions of State-Owned Enterprises
Article 1
(1) The union of state-0-.:ned enterprises is the leading economic orgain for the
?
enterprises and institutions under its jurisdiction.
(2) It shall be responsible for the economic and political developmeni, of the
enterprises and institutions under its jurisdiction.
_
(3) The enterprises are juridically independent and operate under their
own responsibility.
(1) In the fulfilment of its tasks, the union of state-ollned ente'rprises shall
cnn-perate with the social organizations, especially with the.trads unions as the
rianizations of the workers, employees and technical intelligentsia.
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Amiclo 2
(1) The union of state-owned enterprises is a juristic person under
division
the jurisdiction of the competent =Mt= of the State Planning
Orsmmission.
(2) The union of state-owned enterprises shall establish its plan of
receipts and expenditures wtioh has to be confirmed by the Ministry of
Finance.
(3) The seat of the union of state-owned enterprises Shall be dater
mined by the State 131anning Commission.
The Tasks of the Unions of State-Owned Enterprises
Article 3
(1) The union of state-owned enterprises shall supervise the enter-
prises and institutions under its jurisdiction.
(2) The union of state-owned enterprises may be Charged by the State
Planning Commission with certain accurately defined functions and tasks
on behalf of the locally administered enterprises, if required for
economic reasons and for the simplification of work. If charged with
tasks of this kind, the union of state-bwned enterprises shall carry
them out in agreement with the local state organs and, with their con-
sent, with the locally administered enterprises.
promotion
- (3) The union of state-owned enterprises shall'insir-1 ?thit tabbing*
of the economic laws of socialism and the carrying- out?Of ?the? tasks set
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f-'r the sodalist build-up within the field of activities.
(4) The union of state-owned enterprises shall, on the basis of the
state plans, elaborate the plans fo:. the development of the enterprises
arid institutions under its jurisdiction and insure their fulfilment.
(5) The union of state-owned enterprises shall coordinate the cooperation
ni the enterprises and institutions under its jurisdiction, while furnishing
them with comprehensive operative assistance.
Article 4
(1) The union of state-owned enterprises shall supervise the planning of
the enterprises, the comprisal of the plans of the enterprises and the
elaboration of the plan of the union of state-owned enterprites. The'planning
of the union of state-owned enterprises shall comprise the erConomic develop-
-ments, above all the plans relating to production, material, capital invest-
ment, manpower and finance as well as the research and developaient planning
nf the enterprises under its jurisdiction. It shall carry out this task
on the basis of the independent planning of the enterprises and after a
thorough discussion with the factory staffs. The plans elaborated by the
?
union of state-owned enterprises shall be submitted to the State Planning
Commission for decision. The interests of the workers shall 1170 safeguarded
by discussions with the central el.cecutive board of the v4mpetent industrial
trade union.
???????????"..m.....1
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(2% The union of state-owned enttrprises shall elaborate the long-
term plans for the economic and technical development of the enterprises
under its jurisdiction, based on the economic directives by the State
Planning Commission, as well as the economies of the industrial branch.
concerned.
(3) The union of state-owned enterprises shall carry out operative
plan controls) assist the enterprises in the elimination of .difficulties,
make available satisfactory experiences and methods to other enterprises,
erganize socialist aid and cause comparisons to be made between the
enterprises with the aim of fulfilling and overfulfilling the plane and.
of insuring the increase in the work productivity and profitableness of
the enterprises.
(4) To fulfill the plans and to increase the work productiiity? the
union of state-owned enterprises shall promote the contest and activists
movement and control the carrying out of the technical and organization-
al plans of the enterprises.
Article 5
(1) The union of state-owned enterprises shall allocate the material
quotas to the enterprises and institutions. It shall be responsible
also for the cqnfirmation and control of the observanci Of the material
consumption and 'supply norms,
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The union of state-owned enterprises may determine the procure-
ment and storage of certain paterial and equipment within its field of
activities. It shall organize the most rational form of utilization of
the material stocks and equipment in the enterprises under its Juries,.
diction.
(3) The cooperation with other unions of state-owned enterprise
shall be insured by means of contracts, global agreements or global
cnntracts.
(4) The union of state-owned enterprises shall assist the enterprises
in the conclusion of contracts concerning the procurement of the raw and
aubstitute materials to be processed by them. It may conclude global
agreements and global contracts concerning the procurement of materials
and finished products.
(5) The union of state-awned enterprises shall assist the enterprises
under its juriddittion in the marketing of their products. If required -
fer economic reasons or for the simplification of work, the union 'of state-
owned enterprises may be charged by the State Planning Commission with
marketing certain products itself or forming independent marketing orga-
nizitions for this purpose.
Article-6
(1) The union of state-owned enterprises shall insure the introduction
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?,?IP
-f new methods of engineeri:g, th5 conttuoas perfection of technology,
re prnmotion of the rationalizationg invention and suggestion systems
as well as the application and enforcemant of new working methods and
the further improvement of the work organization at the enterprise,
(21 For the solution of technical and scientific tasks, especially
in the field of basic researcn, the anion of state?owned enterprises
may cnnllude service contracts (contract research) with other insti?
tLtions, as, for instance, with university institutes.
(3) To improve the technology and work organization, the union of
atate?owned enterprises may organize the formation of collective work
groups from among the socialist enterprises and, for the advancement
of the rationalization system, enlist the aid of technical collective
-1.nrk groups, especially of rationalization experts and innovators*
Article 7
(1) The union of state?owned enterprises shall be responsible for
vocational
the special and technical development of the colleges 'and mexpoittima
schools of its branch of activities. It shall see to it that the
vocational training is carried out in accordance with the highest
Standards of sctence and engineering, insure the-close.dOcTeration
vocational
'between the colleges andiepobocioea. schools on the one hand and the
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.a.Lurlig Pr+
he- d i?8:3 Ln :he practical tra'---
.4ents at the en?-rpr-s, ail c?-zh e cooperation of
t )11es aid vo-atio-al ::1, evel pTent of the oranoh
, r
?1.i-tor concerned ahJ ,5-5. -* z.7f..ttE, of the universities.
dnd vocatio-al ,o1- :reacqisit..oh of up-to-date machinery
e
..13;me-11 samples and object models
e union stat.e erterpr!ses srall oe responsible for the
-t so:entific and technical
,-r3 rs, it. sha 1 1 es ro,q tmert and ihvelopment plans fcr
clentific and -,ectr.ical pkrswir.il r tne en:erprises of its field of
tiv1ties. It shall organtzA 1:14cLng ): graduates, the assignment of
ercireers, economisr ard --heir further professional
-1 ,atio in : he brahch of pre, oncerned.
-he union of stat.s-ownee e7te-pr.:..se8 shall be responsible for tne,
g..1t-lance of the enterprise, i- 'lest iors rele,irg to the vocational
training of apprentices in accorddlce wit- economic and technical require-
ments. It shall exercize its influence or the compilation of the technical
cf-nfents of the curricula jr 7 lie vocational training of apprentices and the
echnical qualification of the workers.
0?????????-".."..3
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Article 8
The further tasks of the union of state-owned enterprises include
in particular:
1. the elaboration of the long-term plan of the bransh of production
under its jurisdiction;
2, the control of the fulfilment of the obligations assumed by the
factory managements in the collective factory agreements in
cooperation with the competent industrial trade union;
3. the assistainee to be rendered to the industrial trade union in
the organization of inter-factory contests and of contests in-
volving tasks of special importance as well as in the exchange
of experience;
. 4. the guidance of the enterprises in the appliotioci
laws the contra. of the enforcement of the genera contract ?
system as well as the control of the application and observaboe
of legal norms;
5. the decision in cases of differences of opinion ridialting from
contracts concluded between t1 enterprises under'.its jurisdict-
ion;
6. the guidance and control of the enterprises in the carrying ottt
of measures relating to the patent and trade marks liar;
-
7. the protection of socialist property at the enterpriSes;
- 8. the promotion of the export and assurance of.the'fUlfilment-of the
export obligations entered into9 the cooperatu.t'Oxiwith the foreign
trade organs;
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0.0
10
9, he decision on measures aimed at increasing technical standards
and the quality of production;
10. the decision measures for the protection of labor;
11. the control of the observance of the legal wage principles, of the
wage and salary schedules agreed upon in the collective skeleton
agreement and the correct application of the efficiency wage principle
on the basis of the technically motivated work norms and time wags
premium systems;
12. the simplification and uniformity of the accounting system of the
enterprises, the improvement of office organization and technique;
13. the assurance, and control of the observance of the directives re?
lating to the price policy and the cooperation in the field of price
formation;
14. the assurance of the elaboration and application of technical and
, economic key figures;
15. the development, assignment and promotion of cadres.
Management of the unions of state?owned enterprises
Article 9
(1) The management of the unions of state?Owned enterp;$10 ,shall be
3
, .
effected in steady cooperation with the working people and their organi?
zations and in following the prindiple of individual
responsibility.
_
;
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11-
(2) The union of state-owned enterprises is headed by the chief
director who is appointed anc lismissed by he State Planning Commission?
(3) The chief director shall De responsible, and liable to render
accounts, to the State Planning Commission for th.t political,.economic and
-.)rganizational activities of tte union of state-owned enterprises and
of '.he enterprises and instit...tions ander its jurisdiction?
(4) The chief director is authorized to give directions to the enter,-
prises controlled by the union of state-owned enterprises.
(5) The chief director shall rJe responsible for the appointment and
dismissal of the directors of the enterprises, of their deputies and
of the chief accountants, unless the State Planning has reserved the
right of appointing the direotors to itself.
(6) The chiefs of the other institutions controlled by the union of
stater_owned enterprises shall be appointed and dismissed by the State
Planning Commission. The State Planning Commission may allow exceptions
to this rule.
( ) In his decisions the chief director shall be bound by the laws and
plans in effect and by the instructions received from the State Planning
Commission.
;
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Art4cle 10
(I) If prevented from carrying out his duties, the chief director
shall be represented by the division Chiefs of the union of state?
owned enterprises. The order of consecution shall bp determihed by
the chief director.
(2) The division chiefs shall be appointed and dismissed by the
.State Planning Commission after consultation with the chief director.
Article 11
The chief of the industrial maagement and finance contrpl division
shall also discharge the functions Of a chief accouCtant_.
Article 12
(1) To insure tha collective discussion of the bacii,questions of
the development and direction of the branch of produCtiOni a coun
on technical. and economic affairs shall be established at oich union
of stateowned enterprises. The council on technical and economic affairs
shall be composed of factory managers, scientists
"and production orkanitation exPerci represents*
industrial trade widom as well as Of reprepettliti
heleibil state
organs (above a..11 of tbe 0. concede 'counibt at the- di-160k ?
and not Consist of'mOre than.15'45embers4'
17.104.4k
vkA?Ata,?-4.,?ari...? 4????,.? ?????-? ? -1?? ?
?
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(2) The members of the council on technical and economic affairs
shall be appointed by the chief director of the union of state-owned
enterprises. The representatives of the competent industrial trade union
shall be proposed by the central executive board of that?union.
(3) The council on technical and economic affairs shall establish
its own working procedure within the framework of the principles
determined by the State Planning Commission; operate on the basis. of
plans established for each quarter of the year and convene at least once
a month. The chief director shall also be the chairman of the council on
technical and economic affairs.
Article 13
The structure of the union of state-owned enterprises,
The structure of the union of state-owned enterprise Shall be sUbject
the structural plan approlied by the State Planning *Mission.
The working methods of the ugass or stats;owned ontetpkiies
ArtiOls 14
managemes '
(1) To realize the principles of socialistAdiANISiiiii4 the unipn
?
of state-owned enterprises shall further primarUy thelA4SirS,40000erstion
of the working people and of the trade unions In the *igen* of the
branch of industry and of the enterprises under -its iiirii4i..4404be
principal Methods of this way of working are:
4
?
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a) the annual conclusion of the collective factory'agreements'aad
the control of the fulfilment of the obligations Contained in
these agreements;
b) the promotion of all forms of socialist competition mad the
application of the innovator methods in close 000peration with
the competent industrial trade union;
c) the furthering of such forms of the participation of the working
people in the direction of the ecohomy as, for instanee, product-
ion,consultations? activist planning groups, oommiesions of
activists and other activists, groups or commissions on special
tasks;
d) the preparation and organization of technical and edonomic conferences
at the enterprises and industrial branches in Olhie OooporttiOn
with the competent industrial trade..union and with the treads Union
organizations at the enterpriiee.
The union of statisowned enterprises shipi,11 see to ittisiWthit dedisions
taken during the production' consultations and economic OOOSOfenies'are
carried out and the collective factory agreements coneludeein time: '
(2) The responsible economic -functionaries shall reociei:i0ountito the
working people in meetings and trade union conferm40.**Oi 41iilment
? ?
collective
of the/faitory agreements and of the deoittiOas tab!"
imemignat"ic"04?Imaicelm"--141-21*-1111 oE?
A?,.
(3) To maintain...steal:4r relations between the
of statWowned entorpriees and thesOnte
dalmelas,
? i::.1.4?%-41:.4e;T'Aiintxtt
asi: and r
-
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rrA.
4
- 15 -
cratic elimination of obstacles in the carrying out of the plans,
regular factory consultations, discussions with the workers and the
active participation in meetings and conferences shall be arranged?
The economic functionaries shall exhaust every possibility of explain-
ing to the workers the economic conditions as relating to the individual
tasks of the enterprises.
Article 15
The union of state-owned enterprises shall see to it that the rights
bestowed on the factory managers by law snail become fully effective
and that the factory managers are enabled to assume further rights.
Article 16
The chief director may entrust the fulfilment of certain tasks of
- the union of state-owned enterprises to an enterprise having the status
of a leading enterprise. In this case the director of the leading enter
prise shall be authorized to give instruction to the other enterprises.
Article 17
(1) The appointment of the staff, the work distribution and the work-
ing methods of the vnion of state-owned enterprises shall be regulated
by the job classification plan, the work distribution plan and work
procedure of the state-owned enterprises.
s
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0
?16?
(2) The work procedure shall be established by the union of state-
owned enterprises within the framework of the principles determined by
the State Planning Commission.
Article 18
The union of state-owned enterprises shall insure a close cooperation
with the local organs in all cases in which the development of the
centrally administered enterprises requires that consideration be
given to territorial points of view. This applies in particular to the
planning and carrying out of capital investments, the cooperation with
the local industry, the distribution of manpower; the sonial and
cultural care extended to the working people, the organization Of
traffic to and from work eto.
.Article 19
Representation in legal businesis
(1) In legal business the union of state-owned enterpriees.shall be
represented by its chief director. If the chief director is prevented
from carryingout this function, the representation will be,regulated
pursuant to article 100 section 1.
, (2) The division chiefs are authorized to represent the unitn of
state-owned enterprises within their scope of
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'-e
?.?
-1 t-tA-pr"see and c..%nolr
. 'te writtor.
*.".em t, ? :le: .1"e ? acn icjlv cua. ase,
a.. -fect.Lie o 15, 1958c
1" A
-et ruary _ LL,)
?
p
r.,i y ealrman
? , e ?eferred to in Part, I.,
-,- 3 ap ?i,y to all 'anions of
'le State Planal...g
. ti." '..F..%ers of the
.:-!--na? 72;
1,1 ut
a_ mar.
nft m! I '.3ommassi on
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STAT
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"t1
?
ORDINANCE
lr. Lorenz
concerning .the balan,ing and distribution. of production media
i Dated February 13, 1958
In carrying out the law of February 11, 1958, conoerning the
perfection and simplification of the work of the state organs in the
German Dmmocratic Republic (Official Gazette I, p.117) by which the
People's Chamber approved the proposals presented to it by the Central
Committee of the Socialist Unity Party of Germany and the Council of
Ministers of the German Democratic Republic, the following is decreed
pursuant to article 16 of said law:
?
I.
Basic tasks
The State Planning Commission shall be responsiblei"foF,the fixing of
the methodical principles of the planning, balancing and distribution
of the supply of material, the organization of sales, the activities
involving the technical and economic key figures and norms-in the ?
material econmy as well as for the organization and Centrally controlled
f,
enforcement of the utmost economy in the consumpti.on stocks-keeping and
appropriate utilization ormaterial.
U.
Balancing of Material
The State Planning Comission shall effect the balancing of the -
_
?
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Si
material procured from all sources and its distribution to the various
branches of the economy and fields of application so as.to insure
a correct proportional Allocation of the raw materiali material and
equipment important to the economy. To thie end it must have a
direct influence on the amount of the total resoUrces (production
and foreign trade) in accordance with the overall requirements of the
economy and insure the coordination of the balances of material.
rhe balances shall be made up within the scope.of4,he state plan
nomenclature. The balances shall show the total-receitorts'of the
economy from the domestic production and imports as well as the changes
in stocks. The otisTes in stocks must be accorded greate,r,attentiCn
--in order to neutralize any tendency towards the acoilMulation and
- ,
retention of material which will not be required for the produotion
effort of the enterprises within a rePsonable futuriTo this end the
stocks of material must be included in any general'or-spacified new
_
balance. The supplies available 4 the enterprise shall be.given
- consideration in the establishment of the supply,plaz*V., Ay available
-stocks of material exceeding requirements for th?l.ssned production
shall, as a rule, be removed and. 'either be allOelate
1
?.
othst enterprisee
?
?
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with a short supply of these mai erials or be stored in central ware-
houses ,
The making ui of the state material balances may be entrusted to
. ?
- the central organs (bureaus or central control organs for the supply
-f the economy with production media) or to the unions of state-owned
enterprises, economic councils at the district councils or to the
0,.nterprises.
Planning of the supply of material
The State Planning Commission shall be responsible for the planning
of the supply of the various branches of the economy with the material
shr,wn to be available in the balances, with the planning to be effected
at the same time on the basis of spheres of competence., as, for instance,
? ?
Ministries, district councils and unions of state-owned enterprises.
Tasks Concerning, the praCtieal implement ation of the
supply of material
1. The material supply plans shall, as a rulej be realized by the
enterprises or the union a of, state-owned enterprises,direAly: The
- -
of dire6tde2aiiiieF from one enterprise to
relations between one union of state-.owned enterprisesand another
is to be followed to the largest possible extent,. This requires the -
,
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? 4.
- 4 -
PnTprehensive application of the General Contract System of the socialisi.
- economy and its supervision and continuous control by the organs charged
with the direction of the enterprises. The Balancing and Production
? ,
Media Distribution Division of the State Planning Commission shall
in particular be charged wit the operative decision concerning the
special problems resulting from the material balances during the
implementation process and with all other questions relating to the
distribution of material reserves as far as they are of importance to
the fulfilment of the economy plan, In this connection the ,Balancing
and Production Media Distribution Division shall have'the right to
issue directives to the economic councils at the district - councils,
tn the unions of state-owned enterprises and to the offi0e or trade
organs handling production media.
2. In carrying ,out these operative functions, the Balancing and ProdUction
Media Distribution Division shall base its activities,. on the-folbowing
marketing and supply organs Which are tote reamed Iton t4a: marketing
_
nrgans bf the ministries ataxemakkir to be dissolved:Or_fidm.the.central
_ .
.aanagements of the existing marketing and supply ei.gin
COAL BUREAU ?
(except the state?owiied Coal trade enterprise su
distriCt:counCils)
METALLURGY 'BUREAU,,.
CASTINGS-ANDTORGINGS, FFICE- .
;
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CHEYISTRY BUREAU
(responsible also for the supply of the economy with
rubber and asbestns)
MACMERY BUREAU
ihe existing exchange bureau for machinery and metal
made a part of the Machine Bureau..
fertilizers,
reserves shall
The Machine Bureau shall also exercize coordinating functions in the
exp,,rt nf complete industrial installations,
INDUSTRIAL TEXTILES SUPPLY BnEAU
LEATHER SUPPLY BUREAU
(responsible also for raw hides and skins)
(.;ELLUIOSE AND PAPER SUPPLY BUREAU-
TIMBER BUREAU
3. These bureaus or central distribution organs for the supply of the
economy with production media as well as the Central Energy-Control
,NPam
Cffice, the Chief Load Dispatcher, the Central Heat Edoncimy Office,
, the State:-Owned Minol Enterprise and the State Trade Center for scrap
material are under the supervision of the Balancing and Production
Media Distribution Division of the State Planning Commission .
responsible for the planning, direction and conttol of the activities
of these bureaus or,central distribution organs.'
central 'distribution orgails
operate under the :principle
,
r.
may be budgtaxjF41stions or
-
?
Aits'or
of bupiness accountid
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The dispateher system shall be introduced at the Balancing and
Production Media Distribution Division and at the bprea4 or central
distribution offices for the supply of the economy wit:h,productioq.
media. The dispatching ayAtem must be closely oonnectiCto the
. A
dispatching services df the unions of state-owned enterprises and
the economic councils at the district councile.;.
V.
The tasks of the bureaus or central distribution or
p21L_IwmyitF_LpLdia
rforthesuoftheecor'oductionsie
1. The making up of the state material balances and the independent
fulfilment of all pertinent operative t'asks relatinito the-
unions Of etateowned enterprises, the economicbcdit**
the district councils and the economic organs -in ther,OitTi6te
with the aim of enabling the enterprises to maintairOt..continUous
production, as far as these tasks cannot be solved bytheie,
organs themdelves:,
2. The making up of specified balances to insure the supply.df4he
.)
economy with special and prePirli'assoried4materia .as fer-as
this cannot be aChieved by the CintraI-organe,Ci:
administration.thelihiOns of-st:atikowned enterip
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-7
technical and uconomic requirements.
4, The discovery of matPrinl reslrves to improve th6 supply of the
entPrprises with material an to inr..reAoe t'le state stochdile.
The fmmishin, of directives to the supervised wholesale enter,-
prises.
6. The organization of sales in fhe various branches of the economy
4
(for instance, by determining general delivery and service conditions),
. In the machine construction branch, the following tasks will have
tn be solved:
a) Assistance in the delivery of complete industrial installations;
b) the operative steering of allocations of tif;) 4;i1;71ani ?
Items t, the machine construction industry with a'yiew to
eliminating any exiating bottlenecks;
e) th+ez.allocation of material within the machine-Construcion
industry fox' the purpose of insuring a continuous.produgtione
VI.
The district-administered and local economy within the system
of the material economy
The State Planning Commission shall furnish the,counal Of a district
, with its supply plan concerning the production mediwto be-made
available, to it from the utate material reeerve,for,the-444 f the
- district-administered and local economy.
Ilr?maam???.rm???=5
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- A -
Jr"."10111111111"..P.
?
The districts not orlvdeliv.-r but also purchase goods subject to
the nomenclature of the state plan and, hence, to the central
iiqtribution system. As regards the material reserves subject to
the central distribution system in accordance with state plan
nomenclature, it has tc be considered on principle that only the surplu-
quotas of centrally administered goods concerned are subject to the
central distribution regulations. The district shall make itc actual
or assorted production surplus available to the central distribution
system. In this any unnecessary transports from one district to another
-shall be avoided. Phis applies in particular to the agricultural '
pr-duction media and to building material and timber.
The private .industry and handicrafts shall be sup lied
production media and material by the councils of the districts or
counties, respectively.
Lffective date
;
- ,
This ordinance shall become effective on -FebruarY]51
Berlin, Fobruary-13, 1958 . ., _? .-- -
, The Council-of Ministers ' -
of the G.irman'L'emoiiiatib Reialic
, .
Stoph, Deputy ChairMan . - - biOners-Chaiiman .
of-the Council of Ministers of theltitClaihnink Commission
'
Declassified in Part - Sanitized Copy Approved for Release 2013/08/02 : CIA-RDP81-01043R002200130005-4