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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110024-7

substantial more than the relative growth in population, even taking into account such other factors as inflation.

In line with the Honecker regime's efforts to upgrade the standard of living of the East German citizenry, a decision was made in 1972 to raise the minimum pension to DME200 per month, an increase of DME40. All other pension plans, such as those for widows, orphans, the disabled, miners, and war veterans, were raised accordingly. At the same time stipulations setting maximum pensions at a level to 85% of earnings were revoked. In order to encourage pension-age workers to remain in the work force, supplementary pension schemes were made more generous for those who did not take the option to retire.

In addition to incomes and services provided by social insurance, East Germans also receive aid from other state sources. The largest expenditure is for family aid—cash allowances when children are born and a small monthly subsidy for each child. The state also provides minimal relief (Sozialefuersorge) for people unable to work when other sources of income do not provide the basic necessities.

The Honecker regime has also increased family allowances, expanded assistance to working mothers, and upped social welfare payments. Thus birth grants have been doubled to DME1,000 for the first child; interest-free housing and home furnishing loans up to DME5,000 each are available to newlyweds and up to 26 years allowed for repayment with substantial reductions occurring at the birth of each child; travel discounts are offered to families with three or more children; working mothers of such families have a shorter workweek (40 hours) without reduction in pay and a longer vacation (21 days); and basic social welfare payments have been increased from DME120 to DME175 per month.

Despite these comprehensive benefits, the East German programs are not as effective as those in West Germany in meeting the needs of the people. In part this is because of the low level of benefits for unproductive persons. Cash benefits, pensions, and other allowances from all public sources were estimated in 1962 to provide only about 70% as much nominal income per capita as in West Germany, or less than 60% as much real income in terms of comparable purchasing power. Maternity benefits, sick pay, and accident insurance are relatively adequate because these are more closely related to incentives for and the morale of the economically active population. Many East Germans believe that they are better off than their counterparts in West Germany in certain programs such as health care.

3. Social problems

The major social problems in East Germany arise from the imposition of communism on part of an advanced industrial nation with strongly entrenched native social and cultural traditions. The widespread indifference to communism among the East German people has given the people a sense of a community of interest, a "we" versus "they" attitude toward the authorities. Despite years of propaganda most East Germans probably would still prefer to live under conditions resembling those in West Germany. They are, however, becoming more critical toward certain features of the West German social system, and it can no longer be assumed that there would be wholesale defections if travel restrictions were removed. Most East Germans still blame the Communist regime for the continued separation of families and for the many obstacles placed in their way when applying to visit relatives in West Berlin and West Germany.

These attitudes—social problems from the regime's point of view—probably are beginning to weaken somewhat with the passage of time and as a result of measures taken by the regime. Since the erection of the Berlin Wall, increasing numbers of East Germans have become resigned to living under the Communist system for the indefinite future. A growing number have come to feel a commitment to the system which has opened doors to them through educational or professional opportunity—doors that were not open in the pre-Communist era.

The Communist regime takes great pride in its claim that all types of crime have decreased during the years that it has been in port and in the elimination, or virtual elimination, of certain categories of crimes which it claims are characteristic of capitalist society. Prostitution, bank robbery, fraudulent bankruptcy, and counterfeiting are alleged to have been eradicated, and official statistics do not report these crimes.

In 1970 there were 109,100 confirmed punishable offenses committed, or 640 offenses per 100,000 of the population. This is about 18% of the West German crime rate, although comparability is not exact because of differing definitions of criminal offenses and the failure of the East Germans to publish data on crimes they claim to have eradicated. East German police and courts have unusually high rates of convictions, as attested by data released in 1966 which revealed that 94% of those detained were found guilty. The most common crimes are theft and fraud, of which there were 50,200 cases in 1970. The next most common are traffic offenses, of which there were 16,100 cases including 2,600 involving serious injury.

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110024-7