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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R00020011022-9

Cargoes transported from East German ports consist chiefly of machinery and industrial equipment, chemicals, rolling stock and other transportation equipment, packaged and bagged freight, coal briquettes, potash, nitrogen, salt, sodium phosphate, photographic materials, and plastics. Bulk goods predominate among imports, especially heavy bulk items such as petroleum products, coal, ore, apatite, and pyrite, followed by light bulk good such as grain, semifinished products, packaged freight, baled products, bagged freight, barreled cargo, and lumber. In 1971 the ships operated by DSR transported more than 4.8 million long tons of cargo in seaborne trade, an increase of more than 17% over the amount transported in 1970. Deutfracht ships transported 4.7 million tons of cargo in 1971, an increase of about 300,000 tons over the 1970 figure.

East Germany established its first overseas trade route to the Mediterranean in 1954. DSR ships now are employed for the most part in regular service to all continents. Ships operated by Deutfracht seal mainly in tramp service worldwide. During 1970 the merchant marine made 3,653 calls at 317 ports throughout the world. Although the fleet has increased considerably in recent years, East Germany must continue to utilize a significant number of non-Communist-owned ships to assure movement of its seaborne commerce. Available statistics show that 159 western-flag ships were chartered in 1970, and 54 ships were chartered in the first 7 months of 1971. Charter agreements were made primarily with shipping agents in Greece, West Germany, Norway, Liberia, and France. In 1970 there were 152 voyage charters, six time charters, and one continuous charter. Of the 54 charters in 1971, 49 were voyage charters, four were time charters, and one was a continuous charter.

Passenger service began in January 1960 when the Volkerfreundschaft (12,452 g.r.t. and accommodations for 392 passengers) was put into service. This ship is employed on excursion trips in the Baltic, Mediterranean, and Black Seas.

The Government is fully aware of the important role played by shipping in the economic development, welfare, and prestige of the nation. Shipping has become one of the best sources of revenue so far as foreign exchange is concerned, but chartering of foreign ships, with resultant substantial expenditure of foreign exchange, is still necessary. In this connection, East German policy aims to increase the size of the fleet to reduce the need for chartering and to increase foreign exchange earnings. Also, political motivations is building a merchant marine are that a sizable fleet will give the country greater prestige in its pursuit of international recognition as a sovereign state and will strengthen its policy of influencing less-developed countries toward world communism. While there is no official documentation as to East Germany's goals for development of the merchant marine, it is estimated that by 1975 they will have 200 ships totaling 1.8 million d.w.t., and by 1980 there will be 230 ships totaling 2.5 million d.w.t.

About 8,000 officers and seamen are employed aboard the oceangoing and coastal ships. In addition, about 1,100 administrative workers are connected with the maritime fleet. These figures include about 1,300 women, roughly half of whom are employed aboard ships as pursers, stewardesses, labor-union organizers, secretaries, and cooks. Foreigners may be hired to serve on East German merchant ships, but only on the basis of interstate agreements or, during cruises abroad, when maintenance of ship operations calls for such a measure. Membership in the Socialist Unity Party of Germany (SED) is not compulsory, but failure of maritime personnel to become members can have an adverse effect on advancement. There is an acute shortage of qualified seamen, especially officers, primarily because of poor working conditions and low pay. The situation was further aggravated when East German industrial concerns instituted a 5-day 45-hour workweek in 1967. In an effort to alleviate this condition, the division of crews into deck and engine-room personnel was abolished in late 1969 and "complex brigades" (Komplex-brigades) in general-purpose crews were introduced on merchant ships to reduce the size of crews, to meet the requirements of marine automation, and to have a labor force on hand to work on any part of the ship. Membership is voluntary in the Power, Post, and Transportation Union, one of 15 industrial and nonindustrial unions under the control of the Communist-controlled and staffed Free German Trade Union Federation (FDGB), which is the only trade union organization in East Germany. However, it is considered the duty of every worker to join, and membership is almost universal among wage earners.

On 1 September 1969 the Merchant Marine Academy in Osterbad Wastrow and the Ernst Thaelmann Engineer School for Ship Engineering at Warnemuende were consolidated into the Maritime School for Navigation and Ship Engineering, which has administrative offices at Warnemuende. Locations of the schools were to remain the same. The Maritime School can train about 1,000 students each year. The DSR Vocational Trade School (BBS) which began operations in February 1967 at Rostock, provides training for apprentice sailors. Newly hired

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R00020011022-9