862.50/2–1648: Telegram
The Acting United States Political Adviser for Germany (Riddleberger) to the Secretary of State
372. Taglische Rundschau and other Soviet-licensed papers February 13 feature SMA order No. 321 providing for reorganization Soviet zonal economic commission (original establishment this commission in June 1946 covered by telegram number 1474, June 182).
This new Sokolovski order emphasizes aim of having German democratic organs in Soviet Zone participate more actively in reconstruction and development peacetime industry. Economic commission now given permanent chairman and definite field of duties. Commission will now consist of: chairman, two deputies, three FDGB (Free German Trade Union League) representatives, two VDGB representatives, representative from each Land in Soviet Zone, and [Page 67] presidents of following ministries: Finance, Industry, Transport, Interzonal and Foreign Trade, Post and Telegraph, Fuel and Energy, Trade and Supply, Agriculture and Forestry, Labor and Social Welfare, Resettlers, Statistical Office, and Commission for Sequestration and Confiscation—(Comment: i.e., practically every existent central ministry for Soviet Zone).
Commissions new future duties, as specified by Order 32, are: study of question of restoration and development of peace time industry, as well as coordination activities of the various central ministries; and supervising execution, reparations, deliveries and of meeting requirements of Soviet zone occupation forces. Commission empowered authorize all necessary instructions and orders realize these objectives. Finally, Order 32 provides for establishment permanent commission office, consisting of chairman, his deputy, FDGB and VDGB chairman, and presidents of Ministries for finance, industry, agriculture and forestry, and trade and supply—(comment: composition of permanent office evidently about same as composition of original commission—compare telegram 1474).
Comment: manner in which commission thus enlarged and given increased powers will presumably not change general situation greatly as effective domination Laender governments in Soviet Zone economic commission and central ministries has rather clearly been established for some time. Timing of this new announcement, as in case of establishment original economic commission, suggests action taken as a positive reply to the last Bizonal reorganization, and against general background failure London CFM. New economic commission, composition of which is clearly undemocratic as compared with new Bizonal administration, evidently has considerable powers rather comparable with those of its Bizonal rival. At the same time, Soviets will endeavor give impression that it in no way constitutes a zonal government as such an admission would weaken their continuing bitter propaganda, supported by German Communism, against Bizonia—(comment: compare last paragraph this mission’s telegram 3540, November 83).
Though not yet known who commission’s new chairman or his deputies will be, it is presumed that Bruno Leuschner, Communist specialist on economics who has evidently been associated day to day management commission hitherto, will continue play leading role. Addition of representatives from each Land Soviet Zone presumably effected in order provide better coordination between zonal and Laender authorities, and in order meet Laender opposition to their de facto loss of authority hitherto. Finally, role which SED played in order 32 is suggested by statement made February 11–12 meeting [Page 68] SED central committee by Walter Ulbricht: “Successful execution 1948 economic plan requires coordination activities of Laender economic ministries and of economic central ministries under an enlarged economic commission for Soviet Zone.”
Sent Department as 372, pouch copies Moscow, London and Paris.