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itself controlled in all respects by the ruling party, the SED.

a. Council of State

The Council of State was established by constitutional amendment in 1960 to replace the office of the presidency after the death of Wilhelm Pieck. Its constitutional status was meant to add to the prestige of Walter Ulbricht who as "elected chairman" is the chief of state. It also provides sinecures for leading members of the collaborating parties. According to the constitution, the Council of State is elected by and responsible to the People's Chamber; it is composed of a chairman, six deputy chairmen, 17 members, and a secretary, all of whom serve 4-year terms. In addition to exercising ceremonial functions normally associated with the office of the president in a Communist country, the Council of State has specified executive duties and one significant legislative function. The Chairman of the Council of State proclaims the laws of the land, swears in members of the government, and represents the German Democratic Republic as head of state. The full council ratifies or abrogates treaties, appoints and recalls East German representatives abroad, receives foreign diplomats, calls elections to the People's Chamber, and convokes its first session after the elections. The constitution also empowers the council to frame basic decisions on problems of defense and security and to convoke meetings of the National Defense Council, two additional prerogatives normally associated with the executive branch of government. In its legislative capacity, the council since 1963 has acted for the People's Chamber between its plenary sessions, thus replacing three standing committees of the legislature which has been charged with carrying out these functions. The Council of State also has the constitutional power to issue decisions which have the effect of law and to issue binding interpretations of laws.

In November 1971 Walter Ulbricht was reelected Chairman of the Council of State despite widespread speculation that he might also lose this post because of his retirement as SED First Secretary 6 months earlier. Ulbricht's reelection was consistent with the theme of continuity in leadership and did not signify that he had retained a power base. In fact, the Council of State appears to have lost status despite the presence on the council of a growing number of high-ranking SED members, including Erich Honecker. In October 1972 a law was promulgated which granted the Council of Ministers substantial new governmental powers, largely at the expense of the Council of State.

b. Council of Ministers

The Council of Ministers (cabinet) organizes, on behalf of the People's Chamber, the execution of the political, economic, cultural, social, and military tasks of the state. All members of the council serve for a period of 4 years. In early 1973 the council, in addition to Chairman (Premier) Willi Stoph, two first deputy chairmen, and 10 deputy chairmen, consisted of 28 ministers with portfolios and four heads of special agencies having ministerial rank, with the following areas of responsibility:

Ministries:
 * Agriculture, Forestry, and Foodstuffs-Industry
 * Bezirk Administered Industry and Food Industry
 * Chemical Industry
 * Construction
 * Cultural Affairs
 * Education
 * Electrical Engineering and Electronics
 * Environmental Protection and Water Management
 * Finance
 * Foreign Affairs
 * Foreign Economic Relations
 * Glass and Ceramics
 * Health

Agencies:
 * Price Office
 * State Bank
 * State Planning Commission
 * Workers-Peasants Inspectorate
 * Heavy Machine Construction and Installation Construction
 * Interior
 * Justice
 * Light Industry
 * Material Management
 * National Defense
 * Ore Mining, Metallurgy, and Potash
 * Posts and Telecommunications
 * Processing Machine Construction and Vehicle Construction
 * Science and Technology
 * State Security
 * Trade and Supply
 * Transport
 * University and Technical School Matters

Formerly the chairman was chosen by the party having the greatest strength in the People's Chamber, but under the 1968 constitution the Council of State recommends a candidate for the office of Chairman of the Council of Ministers and the nominee is then dutifully approved by the legislature.

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110019-3