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SECRE
ENCLOSURE B
DISSENT OF THE INTELLIGENCE ORGANIZATION, DEPARTMENT OF STATE
Chapter II and Summary*
The organization for Research and Intelli-
the application beginning in May 1949, of the
gence in the Department of State dissents
exchange rate DM 1 = -$0.30 to imports of food-
from SR-20 (Chapter 2 and Summary) be-
stuffs, and the resulting problem of food sub-
cause it considers the report an inadequate
sidies is omitted. Other important events,
picture of the present German economic situa-
such as the devaluation of the mark and the
tion even though the data given in the report
new decisions on dismantling have been
appear generally accurate.
omitted because they occurred after Septem-
Many important current issues such as the
ber 1. These events are of such far-reaching
Ruhr problem, foreign trade prospects, trade
importance that an adequate picture of the
between western and eastern Germany, fiscal
German economy cannot be given unless the
and financial policies, investment needs, the
deadline is extended to include them.
effects of ERP on the German economy, are
In relation to matters that the report does
either omitted entirely or discussed inade-
include, focus and emphasis are often dis-
quately. The two year plan for the Soviet
torted, in that the relative space given to
Zone as well as a number of other important
various subjects is frequently out of proportion
issues are mentioned in the summary but not
with their relative importance.
developed in the body of the report.
The conclusion is that SR-20 (Chapter 2
Although the report purports to be up-to-
and Summary) does not enable the reader to
date as of September 1, 1949, many facts and
obtain a reasonable and adequate impression
figures lag behind that date. For example,
of the present economic state of Germany.
* Chapter II and the Summary were issued after the publication of the remainder of
the report and were therefore reviewed separately by the IAC agencies.
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"ocrText": "SECRE\nENCLOSURE B\nDISSENT OF THE INTELLIGENCE ORGANIZATION, DEPARTMENT OF STATE\nChapter II and Summary*\nThe organization for Research and Intelli-\nthe application beginning in May 1949, of the\ngence in the Department of State dissents\nexchange rate DM 1 = -$0.30 to imports of food-\nfrom SR-20 (Chapter 2 and Summary) be-\nstuffs, and the resulting problem of food sub-\ncause it considers the report an inadequate\nsidies is omitted. Other important events,\npicture of the present German economic situa-\nsuch as the devaluation of the mark and the\ntion even though the data given in the report\nnew decisions on dismantling have been\nappear generally accurate.\nomitted because they occurred after Septem-\nMany important current issues such as the\nber 1. These events are of such far-reaching\nRuhr problem, foreign trade prospects, trade\nimportance that an adequate picture of the\nbetween western and eastern Germany, fiscal\nGerman economy cannot be given unless the\nand financial policies, investment needs, the\ndeadline is extended to include them.\neffects of ERP on the German economy, are\nIn relation to matters that the report does\neither omitted entirely or discussed inade-\ninclude, focus and emphasis are often dis-\nquately. The two year plan for the Soviet\ntorted, in that the relative space given to\nZone as well as a number of other important\nvarious subjects is frequently out of proportion\nissues are mentioned in the summary but not\nwith their relative importance.\ndeveloped in the body of the report.\nThe conclusion is that SR-20 (Chapter 2\nAlthough the report purports to be up-to-\nand Summary) does not enable the reader to\ndate as of September 1, 1949, many facts and\nobtain a reasonable and adequate impression\nfigures lag behind that date. For example,\nof the present economic state of Germany.\n* Chapter II and the Summary were issued after the publication of the remainder of\nthe report and were therefore reviewed separately by the IAC agencies."
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