Page:CIA-RDP01-00707R000200070015-2.pdf/10

 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200070015-2

(Figure 2: Armed Forces and Militarized Security Forces Personnel Strengths not included due to quality of source material)

Selected senior officers from the ground and air forces attend the Armed Forces Command and Staff School at Dresden, and naval officers study under the school's naval faculty on Darnholm Island. Selected officers from all branches are sent to the USSR for advanced training and postgraduate schooling.

4. Military budget (C)

The military budget is prepared by the Finance Directorate of the Ministry for National Defense in accordance with the aims and directives of the SED and is submitted to the Ministry of Finance for incorporation into the total state budget. Following confirmation by the Council of Ministers, the national budget is presented for review to the Budget and Finance Committee of the People's Chamber. The appropriation bill is enacted into law after ratification by the entire body. Actually, however, the military budget is formulated in close coordination with the Soviet Union because of East Germany's close defense ties and heavy reliance on the USSR for military material. The People's Chamber usually rubber-stamps it as presented.

Since 1968, East Germany's defense budget has remained stable, showing only moderate annual increases in line with a modest modernization campaign and increasing armaments costs. As is the case in other Communist countries, the announced budget figures do not include all expenditures for military purposes. Some military costs, particularly those for research and development, are charged to other budget accounts. However, East German research and development expenditures are believes to account for a relatively small portion of total military expenditures.

5. Logistics (S)

East Germany's defense industry is small in relation to that of other industrialized countries, but its economy possesses the technological and industrial base to furnish a significantly greater portion of the country's conventional military equipment needs. A major expansion of military production would,

(Figure 3: Annual Defense Budget not included due to quality of source material)

5

APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200070015-2