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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110021-0

'''FIGURE 24. Large-unit construction methods are widespread (U/OU)'''

responsible not only for the construction of farm-related buildings, but also for the construction of housing in rural areas.

The government is forced to weigh carefully its priorities in construction because of labor and building material shortages. The data for 1970 show that 27.9% of the value of construction completed was for industrial and storage plants, while 16.9% was for dwellings. In 1971 these shares had changed to 29.3% and 16.5%, respectively.

During 1972, a year of increased emphasis on housing construction, 69,000 new apartments were built, compared to only 57,300 in 1971. East German statistics indicate that another 36,000 apartments were provided in 1972 through expansion, reconstruction, and modernization of existing units. The 1973 economic plan calls for the construction of 79,000 new apartments, an increase of slightly more than 14% over 1972. Because of the housing shortage and the age of dwellings, more funds must be used for reconstruction and modernization than normally required for wear and tear. According to a census taken by the state in 1972, approximately 38% of the apartments in residential buildings were 70 years old or more, while 41% were built between 1900 and 1945. A portion of new construction is also required to replace many of the older apartments, which lack water and sewage facilities and are too costly to repair.

5. Domestic trade (C)

Domestic trade is conducted largely by state organizations at prices set by the state. The central government plans the volume of sales for various types of commodities, the level of investments, and the volume of taxes and profits. Local administrations control only the day-to-day operations of the trade network. Private trade is regulated by membership in the commission trade system or by other indirect but effective controls.

Wholesale trade, entirely in state hands, is organized into Wholesale Trade Associations (GHG's), which supply both private and socialized retail stores. There are GHG's for each major category of goods, such as fruits and vegetables, textiles, and household goods. Agricultural procurement and distribution to retail outlets and food processors are handled by state-

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110021-0