What were the two aims for the Allies in regards to the German economy?
To help it recover from the strain of war, but to a point where reparations could be paid.
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In regards to the other zones, how had the Soviet zone fared?
It had faced less war damage than those in the West. 15% loss of productive capacity to the West's 21%.
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What seemed to be the Russian's first aim in regards to the German economy?
To take reparations, at times it seems as though they were trying to take three times that agreed at Potsdam.
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What other aims seemed prominent?
To take their occupations costs from the zone, whilst taking all the productive capacity left.
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To what point might this be evidence?
That the Russians saw German division as being only temporary, explaining why they tried to take so much so quickly.
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What happened to production capacity?
It was reduced to around half of that in 1939. Whole industrial plants were shipped.
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What happened in July 1945?
A new centralised state banking system was implemented to replace private banks. Private insurance companies were merged into 5 public corporations; one for each Lander.
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What started in September 1945?
The Soviets began to nationalise mines and factories.
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What happened in June 1946?
25 Soviet joint-stock companies were formed by merging 213 firms.
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What happened to enterprises which had belonged to Nazi activists?
They were taken over.
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What happened in April 1948?
The ex-Nazi enterprises were made VEBS. Along with the 25 SAGs, they controlled 60% of industry by 1948.
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What happened to the remaining private sector?
It was worn down through taxes and price and planning measures.
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What did the Soviets want to get rid of?
The Junker landowners.
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What happened in September 1945?
7000 large estates were seized. They were used to form large collective state farms.
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What was done to avoid opposition?
Peasants and refugees were allowed to work smallholdings. But they were still dependent on state support.
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What happened in June 1947?
The German Economic Commission was set up to co-ordinate economic policy in the sector and produce a development plan.
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What triggered this?
Economic developments in the West.
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Who made up the Commission?
The heads of ministries and chairmen of the trage unions and farmers' association. All controlled by the SED.
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Other cards in this set
Card 2
Front
In regards to the other zones, how had the Soviet zone fared?
Back
It had faced less war damage than those in the West. 15% loss of productive capacity to the West's 21%.
Card 3
Front
What seemed to be the Russian's first aim in regards to the German economy?
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