Evening star., 1948-02-13
Russia Establishes
Own Economic Rule
In Zone Of Reich
Germans Are Directed to
Establish Commission
To Work Under Reds
BY the Associated Press

BERLIN, Feb. 13.-GermanS IN
the, Soviet-occupied Eastern
zone were instructed by the Rus
sian commander today to set up
an economic commission for
their part of the country.
Marshal VASTLY D. sokolovsky is
sued the order. Another Soviet
spokesman said it does not mean
establishment of an East German
government.
The marshal had objected to
German economic administration
for the American and British zones
in the West, now being formed, and
demanded that the plan be dropped.
In ordering an economic setup for
his own zone, he turned down once
more a standing invitation to tie in
the zones economy with that OF
Western Germany.
Commission to Issue Orders.
Marshal Sokolovsky granted the
commission power ito issue orders
and instructions binding on all
German organizations in the Soviet
zone of Germany in harmony with
orders of the Soviet military admin
istration."
The commission was empowered
also to examine questions of the
|re-establishment and development
of peacetime industry in the Soviet
zone of Germany as well as CO.
ordination of the activity of the
central German administrative or
gans for individual branches of the
economy"
The commission was ordered ''to
carry through according 10 plan
Preparations deliveries and to satisfy
the needs of Soviet occupation
forces in Germany"
Under the marshal's order, the
commission will be organized along
Soviet lines. 1t will consist of a
chairman, two subchairmen, three
representatives of the Soviet-con-
troled trade union federation, two
representatives of a mutual farmers
aid society and other persons rep
resenting the Russian zones five
states and directorates of the Ger
man central management of the
zone.
Executive Group Planned.
In an authorized interview an Of
fetal of the central Soviet admin
istration for finance denied the
move represented establishment OF
an East German government" He
said the aim simply was ito reor-
ganize the administrative body" for
the Soviet zone.
The commission was told to set
UP an executive committee" similar
to that established for the eco
nomic council of the British and
American forces.
Pravda told the Russians today
that the British flag is being taken
down all over the British zone OF
Germany and the Stars and Stripes
raised instead, as Americans take
over" the Ruhr and other British
administered areas.
A Munich dispatch printed in the
Communist paper asserted the
United States is continually buying
into Ruhr mines and German fac
tories and otherwise assuring Itself
uermanent footholds in the German
economy.
The Americans are turning back
industrial firms to former Nazls,
Pravda said. 1t depicted the Amer
Iican program of reparations as dl-
rected toward removing from the
scene all competitors of American
firms, leaving untouched the total
German war potential.
New foreign investments in
Germany are forbidden under
military government law. Gen.
| Lucius D. Clay, the American
military governor, repeatedly
has denied Russian reports OF
/ investment of American capital
/ in Germany. Pravda's assertion
that the American flag is replac-
ing the Union Jack apparently Is
intended as symbolical irony
since there are no American
troops in the British zone to fly
the American fag)
/ Anglo-U. S. Regime Set Up.
The economic administration for
the United States and British zones
is prescribed in a military govern
ment proclamation effective last
Monday. 1t will consist Of a two
house legislature chosen by state
llegisla lures, an Allied appointed
(See GERMANY, PagvA-D