FUTURE PLANS OF THE AUSTRIAN BRANCH OF SIEMENS-SCHUCKERT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R001400040007-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 15, 2016
• Document Release Date: April 3, 2001
• Sequence Number: 7
• Publication Date: March 25, 1948
• Content Type: REPORT

CiJSSFCATL 25X1A
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CENTRAL INTEL
,f4sig INFORMATI ? - PORT 174597 .31
CONFIDENTIAL
COUNTRY Austria DATE DISTR. 25 WIreh 19.f
SUBJECT Future Plans of the Austrian Branch NO. OF PAGES 2
of Siemens-Schuckert
PLACE 25X1C NO. OF ENCLS.
ACQUIRED 25X1A (LISTED BELOW)
25X1A
DATE SUPPLEMENT TO
25X1X REPORT NO.
The following is a translation of a document concerning future pans for Auntrian
SiemenseScbuckert enterprises. It was prepared by responsible officials of
Siemens-Schuekert before publication of the Soviet proposals for an Austrian
peace treaty. It should be pointed out that the officials in question have not
renounced the possibility of an eventual reunion with tale German parent fine,
but submit this plan as a stopgap policy to be carried out -by the purely Austrian
enterprise?
1. General itgail32254S11QX.
a. Business is to be conducted exclueively with the aid,of Ameriem capita"_
insofar as necessary means are not available through financial channels
open in Austria.
b. Sales territory will follow the lines of earlier economic connections
within the Austro-Hungarian empire, with emphaeis on the Danube valley'
and the countries of southeastern Europe. Concentration on this terri-
tory will also alleviate the raw material shortage, since certain importvl
raw materials are available from these countries (for example: copper ane:
bauxite from Yugoslavia; coal from Czechoslovakia and Hungary; mica from
Bulgaria).
o. Export possibilities for the Austrian electrical industry to western
Europe, as well as overseas, will be limited to 'special large machines
such as turbo-generators and transformers. In erder to be able fully to
supply the demand of the Austrian domestic market and of the 5outhealt
European countries for certain mass-produced electrical goods for houpe-
hold use (such as refrigerators, vaeuun cleaner, washing machines, aria12,
electric motors, and certain types of radio receivers) Sieeeee-Schueeet
must try to obtain the general European agencies for large weetern
European and American electrical concerns. Sine great technical strilee
were made in the manufacture of these articles during the ear: especialin
in the BEA, and since the market demand in Austria and the Danubian otaaen
is small, manufacture of such articles in Austria could be profitably
undertaken only if high protective tariffs were established. Furtherroec.
it should be noted that all the large Austrian electrical firm. (Siemoee-
Schuckert, AEG Union,"Elin, and Brown-Doveri) had, up to the oetbreaa.
the second World War, procured these products galualanly from their
German and Swiss parent companies; after the wee started, all aueh pee
-
duction was halted. The ideal situation for Austria would? of course,
CLASSIFICATION UMW'
STATE
'NAVY NSRB
DISTRIBUTION T
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By: "/'?
-RDP82-00457
ent is hereby regraded to
NFIDENTIAL In accordance with the
letter of 18 October 1978 from the
aciaelfcrerititlendteisligtaence to the
Next Review Date: 2008
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to have the parts for these articles imported from the USA for assemb4
in Austria. This would beecenomically sound, since workers' wages fir!
assembling work will undoubtedly for many years to come be considerab4
higher in the United States than in Austria. It should be clear that
such a business policy represents a brusque challenge to Soviet influerce
in eastern Europe and therefore will unquestionably meet with stiff.
resistance from the Soviets,
2. Ware okProductiolge
The sphere of production would comprise the program ?resented
25X1A It should be pointed out here that, in. view of her regulated
manufacturing conditions, Austria oan compete in a world market only againet
those goods, the production costs of which are nada ep largely of wages. On
the other hand, Austria could never afford to compete against goods mass-
produced in the west. Turbo-generators or large transformers would be ?
examples of the first Category, 'while vacuum cleaners or light bulbs would be
examples'of the second.
3.
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The extent of required factory installations is based on the following goale;
the achievement of the status of 1938 with the addition of such machine toole
and other fittings which technological progress have rendered essentiale Thr
capital needed for this purpose must be calculated on the present schilling
dollar ratio of 10:1 and comes to 200,000,000 schillings, or $20,000,000.
This amount mould, of course, not be necessary immediately, nor in a lump
sum, since the value of presently available property (including grounds,
buildings, machines, patents) can be deducted from it. However, if it were
necessary to buy back the assets of the Siemens enteeprises from their present
occupiers in order to restore the concern to the condition mentioned above, the
entire $20,000,000 would be necessary.
"'rem the time the quest fon of ownership is settled and the first part of the
capital sum granted, it is estimated that three years would be required to heile
up the plants and re-establish the necessary foreign connections for purcheeine
and sales. It is assumed, of course, that the occupation will have ended ane
that the country will be in a position to carry on normal trade and business
as a sovereign state. The above proposals lose theie validity in the eveat
the present Soviet-controlled enterprises continue to function extraterritore
4e Cprrent Situation
The total turnover of the firms of, AEG Union, Siemene-Schuckert, Elin, DrownReveri, Siemens & Halske for 1947 amounted to less than 130,000,000 schillinece
Reckoned an the 1937 schilling value within the scale of present domestic cael:
prices, which are seven to ten times as high as in 1937, the 1947 tutnovee eee
be counted roughly as 16,000,000 (1937) schillings. In the year 1937, the teeee
over of the aforementioned firms amounted to at least 250,000,000 sehillinga, -
which approximately one-half came from domestic sales. Thus the total reeeipte
for 1947, calculated in terms of the 1937 schilling, are about one-eighth au
large as in 1937. Siemens-SChuckert did, and still does, account for 60-70%
of this amount.
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12. Representation in the universities is very weak and amounts to less than fi-ie
per cent. In Rostock University, for example, only twenty students out '.3f
total of 1,000 are members of the ?DT. Members, however, do enjoy certain
advantages, particularly when dealing with prominent persons who are them-
selves SED-inclined. The former Chief of the Mecklenburg police, Kahle,
stated publicly before his death that in the future police recruits would
taken exclusively from the ranks of the FDJ.
13. No one is allowed to take part in any sporting activities whatsoever unless 11
is a member of the FILL Thus, men of seventy years of age are members, fe72 it
is otherwise impossible to obtain permission to go fishing. No other sportin
organisation or youth organization is allowed to existIsince the SMA wieass
keep tight control on youth activities, and .exploits the general public'
interest in sport for purposes of political indoctrination. The SED ViejeB
to form a VOlksportuverband in order to avoid the anomaly of having old :ilea
belonging to a youth movement. Their efforts to form this new organization hve
so far been unsuccessful, partly beceuse of antagonism from the SNA and pnr_
because the SED has insufficient functionaries to control such a new organi2a-
tion.
14. There have been few cases of public disapproval of the FDJI;the most notal13
have come from Church circles. The most prominent antagonist is a certaln
Jugendpfarrer Wellingerhorf of Schwerin. The Churches, both Catholic and
Evangelical, run illegal youth movements. Among the rank and file there
little open disapproval shown as there was against the Hitler Youth in the
15. There has, as yet, been little evidence of direct contact between the MI
and Russian youth organizations. On the first anniversary of the foundatiz)n
of the FDJ in Schwerin, an offioial representative of the Komsomols appear B.1
person and made a speech in which she congratulated the FIV upon its suc,le.::1
and deliverea the sincere greetings of its comrades in Russia
16. The main inspiration within the FDJ comes from the German emigres who were
resident in England during the Hitler era, and these persons hold most of
the leading positions at the higher levels of the organization.
17. Policy with regard to fraternization between Gerians and Russians follows th,i%
of the Russians. Until recently there was no disapproval of friendly relsoy)-
ihips but, following the recent Russiah declarations upon this subject, a
strong disapproval is now shown.
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Approved For Release 2001/1
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DP82-00457R001400040007-9