East Germany Unveils Radical Set of Reforms

Prime Minister Hans Modrow on Friday announced a radical program of economic and political reforms, emphasizing that the change under way in East Germany is “irreversible.”

In a speech to a special session of the East German Parliament, Modrow recommended stronger economic ties to the West, particularly West Germany, as well as continued solid links with the Soviet Union. At the same time, he firmly rejected the idea of political reunification with Bonn and said East Germany would remain socialist.

Offering a solution that amounts to the introduction of a planned market economy, Modrow encouraged private enterprise and foreign investment.

“The GDR (German Democratic Republic, as East Germany is formally known) is open to all proposals such as joint ventures, investments, transfer of profits and environmental pilot projects,” he said.

He declared that “only an economically stronger state can do something for its citizens.” But he added that “economic reform does not mean scrapping planning. Life points us toward a socialist system in which planning and the market are closely linked.”

Modrow’s speech came as the second wild weekend since East Germany opened its borders Nov. 9 took shape with an influx in the West. By Friday night, about 1.2 million East Germans had entered West Germany, including West Berlin, and cars were lined up at crossing points for miles.

West Germany increased its bus and train schedules and posted longer hours for stores, while several new border crossings were opened for a total of 55 and another boarded-up subway station under East Berlin was reopened.

East German police have issued nearly 9.6 million travel visas since Nov. 9, representing 58% of East Germany’s population of 16.5 million, the state news agency ADN reported.

The drastic overall changes in East Germany are needed because the Communist-led nation faces an “economic crisis,” Modrow said. He called the restructuring of the economy with a strong foreign trade program a “question of survival.”

Many economists here have rejected the more market-oriented reforms undertaken by Poland and Hungary, where the economies are far shakier.

Forecasting hard times ahead, Modrow said continued budget deficits will be necessary and said that the government must bring prices into line with production costs. He blamed current deficits on “squandering of state money and excessive administrative outlays.”

An official of the European Community in Brussels said Friday that East Germany had submitted a memorandum on wide-ranging economic cooperation that will be discussed today in Paris at a special summit on East Germany.

At the special session of Parliament on Friday, members also unanimously approved a radically reformed, 27-member Cabinet that includes 11 non-Communists. But the Communist Party held on to the most important posts, including the ministries of defense, national security, foreign affairs, finance and interior.

In the previous Cabinet, which resigned en masse earlier this month, the Communists had controlled 39 out of 43 posts.

Calling East Germany’s first genuine coalition government a “newly defined and creative political alliance,” Modrow, 61, promised a new electoral law and changes in the criminal justice system, under which dissidents previously were routinely jailed.

He assured Parliament--itself newly stripped of old Communist Party hacks--that additional laws would be submitted for other widespread liberalization measures.

Modrow also strongly criticized mistakes made under his ousted predecessor, Erich Honecker.

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