/specialCollection/nwcda2/51/CIA AND THE ORIGINS OF THE BND, 1949-56 VOL. 2/CIA AND THE ORIGINS OF THE BND, 1949-56 VOL. 2_0002.pdf

;
G PPR, 1954. •
DIST .
v3 EE
3 COM
2 BONN
argo 51 —
5 April 54
REL Ger
Secret 774
Secret
REL Ger
•
.TO
(SPUMY AIR OR SEA ROWS)
U‘t'
AII
b1S.PA1CH NO. EGLA 8/437
2 5 •
, ...„,C1.74S.11FICF,a1ON- 0 nuo;
!Tn
TO &121; h
FROM
SUBJECT: GENERAL— Operational
sPEanC-- ZIPPER and East/West Trade Intelligence.
1. Some months ago I entertained Deputy High Commissioner Walter Dowling,
UTILITY, at dinner at my'home. Sometime after
dinner the conversation turned to the subject of Germany's trade prospects with.
the Soviet Bloc. 1
2. Both Dowling and 111111,111foilowed the East/West trade question with some
interest in Austria and have, of course', pursued 'the matter with interest since
their assignment to Bonn. They both assured UTILITY that the present economic •
structure Of the Soviet Bloc was such that, disregarding the political implication_
of East/West trade, no western country could really mako trade with the Soviet
Bloc a prbfitable affair. UTILITY replied that this was not entirely consistent
with the opinions that he h d heard advanced by German experts, including his friend
/Ain DirDr)VollrathAhr v _ TZAR, head of the Foreign Trade Section of the-Economics tanintfy'in •
• „ Li''' sb P. NI.
Chief of Base, Pullach
...n r 1 •
ri:..d.,;,-.;..:.14. Iti..).$4, ■••/1. "a. t. .ii.
i
DATE:
Si
• 1
3. UTILITY returned to Dowling's position later that evening after Bawling. • -
1and 111111.1111111had departed to catch their special train back to Bonn. He expressed
surprise that the Americans had such clear—cut, black—and—white views on the subject
and declared his intention of discussing the matter further with von MALTZAHN and
other German economists.
L. Against this background and in light of tha. recent ZIPPER/POWEE'agreement
that ZIPPER should direet its efforts more into the "legal" type ofcperations, we
should examine that has long been suspected but can now clearly be labelled as
UTILITY's policy regarding ZIPPER reporting tb EUBARK on East/West trade. From a
sensitive ZIPPER source, we have leanvd that 'UTILITY has issued instructions that .
ZIPPER is to refrain from submission of reports to KUBARK that 'reveal Federal Republic
industrial participation. Allegedly, UTILITY expressed this view some time ago.
He desires utmost protection of Federal Republic industries, and maintains that the
harm that'ZIPP-at could do to this trade by keeping KUBARIC informed is far outweighed •
by the value of cooperation with KUBARK in this field. Thus, the collection of
.intelligence onkthe Federal Republic concerns engaged in this trade is encouraged, .
but the resulting 'reports are not disseminated to KUBARK.