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As a part of the Lithuanian economic council



List of sources and literature

1. Yu.V. Kostyashov. Participation of the USSR in the Konigsberg East fair//the Baltic region in the international relations during modern and latest times. Kaliningrad, 2004. Page 139 — 146.
2. Russian state archive of economy. T. 413.
3. Russian state archive of socio-political history. T. 17. Central committee of the All-Union Communist Party (bolsheviks).
4. Russian state archive of economy. T. 635.
5. K6nigsbergen Tageblatt.1940. 12. А^э.
6. From the diary of the plenipotentiary of the USSR in Germany A.A. Shkvar-tsev//Documents of foreign policy. M, 1995. T. 23. Prince 1. Page 522 — 524.

About the author

Yu.V. Kostyashov is Dr. east. sciences, the prof., RGU of I. Kant.

UDC 947 (470.26)

G.V. Kretinin as a part of the LITHUANIAN ECONOMIC COUNCIL

The condition of the industry and building industry of the Kaliningrad region during their submission to the Lithuanian economic council (1963-1965) is considered.

The state of the industry and in particular the building industry of the Kaliningrad area is examined during their submission to the Lithuanian council of national economy (1963-1965).

At a boundary 50 — the 60th of the 20th century to the USSR there was an active search of the optimum forms of government the national economy of the country. Reorganization of the leadership in the industry by the territorial principle by creation in the main economic administrative regions of Councils of the national economy (economic councils) became concrete attempt of improvement of management of economy. As a result the resolution of Council of ministers of RSFSR of June 1, 1957 No. 395 formed Council of the national economy of the Kaliningrad administrative region [1, l. 1].

In several years there was a merging of the Kaliningrad and Lithuanian economic councils under the auspices of the last. The decision on association was made by resolutions of Council of ministers of the USSR of January 10

1963 No. 27, Council of ministers of RSFSR of January 15, 1963 No. 67 and Council of ministers of the Lithuanian SSR of January 17, 1963 No. 36 [2, 492, l. 2].

Terms of resubmission of Economic council were exclusively rigid. On the nineteenth of January the same year VSNKh of RSFSR issued the order No. R-145 which obliged the relevant managements to prepare by February (!) 1, 1963 "necessary materials for transfer in ustanov-

Lynn an order to Council of the national economy of the Lithuanian SSR of the enterprises and organizations which were under authority of the Kaliningrad economic council with all assets and liabilities as of January 1, 1963, with claimed: to these enterprises and the organizations for 1963 (and on quarters of year) plans and additional tasks for production, capital construction, work, prime cost, logistics, with obligations for deliveries, balances of income and expenses (financial plans) and estimates" [2, 492, l. 328].

Already on February 5 the delivery-acceptance certificate of the enterprises and organizations was signed by members of two commissions: from VSNKh it was headed by the head of department G.G. Vodnev, from the Lithuanian economic council — the vice-chairman R.I. Yuryavichus. According to this act to the Lithuanian economic council 101 enterprise and institution, planned and reporting documentation, funds and limits, confidential and office office-work and even economic stock of central office of the Kaliningrad economic council [2 was transferred, to 492, l. 2 — 16].

In several years there was a question of the general liquidation of economic councils and final transition to the branch principle of management of the industry and construction. Process began on October 12, 1965 when there was a resolution of Council of ministers of the USSR No. 755 "About the questions connected with formation of the all-union and allied and republican ministries" [1, l. 44]. It should be noted that the return transfer of the enterprises, the organizations, buildings happened in many respects similar to the procedure of 1963. Except for the documents which settled in archives. Only about 250 cases, mainly short-term periods of storage returned to the area. According to the operating archival norms they soon were destroyed, and the area was left without sources of information on the industrial development within three years. And if in Soviet period to obtain necessary information from archives of the Lithuanian SSR still was vozmozhno1, then today it is represented business very difficult.

The appeal to the Center of storage and studying documents of the contemporary history of the Kaliningrad region (TsHIDNIKO) — the former party archive of the Kaliningrad regional committee of the CPSU could become a way out. However the collection of the documents of the Center devoted to the "Lithuanian" period of functioning of the Kaliningrad industry does not differ in due completeness and systemacity. As a rule, in funds of the Center the documents covering activity of party bodies in the solution of some controversial issues were postponed. It is possible to assume that economic entities in Lithuania possessed bigger degree of independence of party instances, than in the Kaliningrad region, and by these "rules" forced to play the neighbors. Therefore correspondence with regional committee of party was also not so extensive. And only when

1 See e.g., the address in 1982 of executive committee of Guards regional council of People's Deputies in the Central state archive of the Lithuanian SSR behind the copy of the delivery-acceptance certificate of the Kaliningrad enterprises to Ministry of the Food Industry of RSFSR [1, l. 43 — 47].
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the enterprises could not resolve production issues acceptable, the request for the help in party bodies followed.

Lack of sufficient istochnikovy base in the State archive of the Kaliningrad region and the spontaneous nature of its education allow to estimate at TsHIDNIKO in many respects only indirectly the period of development of the Kaliningrad industry in the years of its submission to the Lithuanian economic leaders. In spite of the fact that chronologically it was very insignificant (from January, 1963 to December, 1965), in terms of dynamics the period was very difficult.

Most favorable for the industry and the construction industry of area it was 1963 when, despite resubmission of Economic council, the enterprises and the organizations worked according to already approved plans created by the budgets selected with limits. The initial actions of the management of the Lithuanian economic council directed to reduction of number of the plants and enterprises in the territory of the Kaliningrad region under the pretext of their unprofitability and future compensation of deliveries by the Lithuanian products similar to the range of the reduced enterprises did not cause special alarm. Partners, as they say, worked at trust. It was justified. So, in spite of the fact that in 1963 in the territory of the area two of three brick-works were closed, need of the area for a brick was satisfied [3, 46, l. 37; 2, 492, l. 14].

The first signals of economic problems in the Kaliningrad region appeared next year. Residents of Kaliningrad unexpectedly for themselves found updating of plans, unprofitable for them, reduction of allocation of necessary funds for production of products, an unreasonable rejection of their offers on production development.

In particular, in 1964 the management of the Lithuanian economic council and the State Planning Committee of the Lithuanian SSR it was asked about allocation of allocations for expansion of the Kaliningrad woodworking plant for the purpose of increase in release of details of large-panel housing construction by 70 — 80 thousand sq.m of living space (the approximate beginning of construction works — 1966) and on completion of project works on the new plant of the 70 thousand sq.m large-panel housing construction in a year. About that how significant for development and strengthening of base of building industry was the similar application, tell the existing production capacities of the Kaliningrad enterprises: release of joiner's products — 105 thousand sq.m, production of precast concrete — 132 thousand cubic meters, including the most progressive at that time details of large-panel housing construction — 35 thousand sq.m. However the application was rejected. Moreover, did not satisfy it and in the following, 1965 [3, 46, l. 3].

This year in general was the most difficult in relationship of industrialists and builders of the Kaliningrad region and the Lithuanian economic council. At a stage of planning of production activity it became clear to the Kaliningrad economists that areas are offered the plans which are obviously not contributing to the development of the industry and the construction industry.

Interdepartmental coordination did not yield results. In December

1964 in regional committee of the CPSU the meeting on consideration of plans of industrial production the next year took place. The chief of Economic planning management of Economic council Shya-putis and heads of the main industrial enterprises of area participated in a meeting.

At a meeting it was reasoned it is proved that a number of the indicators planned to the plants and plants is not confirmed by calculations and economic feasibility. So, at the car-building plant the full load of production capacities was not provided, decrease in release gross and products, reduction of the average salary by 0.8% and number working in comparison with available on 136 people was planned. The Lithuanian economists when planning production at other engineering plants of area did not consider the changes in the range of products offered by residents of Kaliningrad (for example, at the Stroydor-mash plant) that led to unreasonable reduction of number working in comparison with calculations and to change of other technical and economic indicators. Moreover, when planning production at the foundry and mechanical plant and the Mailbox 198 enterprise (subsequently the Kvarts plant) even special indications about it of SNH USSR (vice-chairman of allied economic council Lebedev) and the State Committee of the USSR on the electronic equipment were not taken into account. And understating of prime cost of the relay for the calculating machines released by the Mailbox 198 enterprise involved losses for the sum of 0.5 million rubles.

From the point of view of the Kaliningrad experts, the Lithuanian economists made serious mistakes when determining cost of products of pulp and paper mills (changes of state standard specification on viscose cellulose, increase in a tax on alcohol, carrying out commissioning, clearing and dredging works were not considered). Growth of the average salary was not provided in plans of a number of the enterprises, decrease in nonindustrial personnel [3, 43, l was planned. 2 — 3]. The meeting did not yield positive results.

In January, 1965 the secretary of regional committee of the CPSU N. Konovalov was forced to address the secretary of the Central Committee of the RC of Lithuania A. Snechkus and the chairman of Economic council P. Kulvetsu in connection with negative attitude of Economic council of the Lithuanian SSR to plans of industrial production of the Kaliningrad enterprises for 1965. The amendments introduced by Vilnius in these plans did not allow to resolve a number of the fundamental issues concerning use of production capacities, employment of the available personnel, allocation of necessary funds for production of products [3, 43, l. 1].

The questions raised by the Kaliningrad regional committee demanded the corresponding reaction of the Lithuanian officials. In this regard P. Kulvets's answer became indicative to N. Konovalov. Kulvets it is quite proved writes that at some enterprises of the Kaliningrad region not intense tasks on increase in productivity of work were established, but these enterprises never declared excessive limits, and on the contrary, complained of their shortage. In 1965 at a plan target

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on increase in productivity of work in general on economic council of 4.1% on the enterprises of the Kaliningrad region it made 2.1%. In this underestimated indicator, according to Kulvets, the difficulties experienced by the enterprises connected with number working, by change of the range and increase in labor input just are also considered. Kulvets recognized that at some enterprises the decrease in planned number of staff is provided, but it was explained mainly by reduction of volume of release of gross output, at the same time he held back that "reduction of volume" just and was put in the plan by the Lithuanian economists. Kul-vets promised that calculations will be specified, the Economic council already excited before Council of ministers of the Lithuanian SSR the petition for increase in the plan for gross output by 18 million rubles and products on 14.5 million rubles. Such is there was a price of "mistake" of the Lithuanian planners.

In terms of today the issue of financing of clearing and dredging works is represented especially topical. The main sources of pollution of the Neman Rivers and Pregolya were pulp and paper mills. Naturally, these plants also had to be responsible for cleaning of the rivers. Expenses on this activity essentially influenced growth of product cost, reduced the profit of the enterprises. Kulvets reports that in the Lithuanian SSR similar works are conducted at the expense of the government budget (as a result — high profitability of the Lithuanian enterprises), and immediately suggests residents of Kaliningrad to resolve this issue with Council of ministers of RSFSR.

An indicative example of lobbying of interests of the Lithuanian enterprises is the case with establishment of the underestimated prime cost of the relay of calculating machines. These relays were issued in the Mailbox 198 organization (the output of 1 million pieces a year). In the early sixties in Taurage (Lithuanian SSR) the plant of calculating machines where began to assemble similar devices, which production in opened

1965 about 400 thousand pieces were planned to finish.

According to the Lithuanian experts, the plant in Taurage "is recently organized, has no in enough the trained shots and on the hardware does not come within miles of the organization & #34; P.b. 198"" [3, 43, l. 5] 2. The prime cost of the relay at this plant was 1 rub 57 kopeks, and the prime cost of the relay made on "P.b. 198" was determined by this indicator. Such prime cost for the regime enterprise was excessively underestimated and incurred to the plant losses. The Kaliningrad economists expressed doubts in validity of equalizing of product cost at the plants with different conditions of production. The point of such approach was obvious: to put obviously unattainable level of prime cost for residents of Kaliningrad that would lead to reduction of profit and formation of reputation of the enterprise incapable to provide performance of the state task. At the same time to the new, perspective enterprise in Taura-

2 It was valid so, considering that the plant of electronic mechanical engineering of Kvarts at that time worked for the benefit of space and military (in particular rocket) the industries of the USSR.

ge which with success copes with difficult tasks advertizing and, therefore, additional resources for development was provided.

In general the answer of the chairman of Economic council P. Kulvets was characterized by typical references that "The economic council excited the petition before the relevant organizations", "the petition is sent to Council of ministers of the Lithuanian SSR", "the same questions are raised before the commission of the State Planning Committee of USSR". And the summary said: "At the positive decision the Council of the national economy respectively will make changes and to plans of the enterprises located in the Kaliningrad region" [3, 43, l. 4 — 6]. The pretentiousness of such answer was designated at once: the first quarter came to the end, and positive changes in planned work of the enterprises were not expected.

Meanwhile the USSR was preparing for the celebration of the 20 anniversary of the Victory, in the whole country the results of post-war development were summed up. Undoubtedly, it were available achievements in recovery of the national economy and in the Kaliningrad region, but before elimination of all consequences of war it was still far. In the cities and other settlements there were destroyed constructions and utilities. The rooms adapted earlier for production did not allow to place in them the modern equipment, hoisting-and-transport means. On railway transport traveling facilities, technical and office buildings and stations were not completely restored.

Undoubtedly, such situation in economy of area had both the objective, and subjective reasons including the political plan. Because of insufficient allocations the industry of area could not resolve issues of complex reconstruction of the enterprises and elimination of a disproportion in development of certain shops and sites. In mechanical engineering there were no capacities on iron and steel casting, the centralized production of the equipment, tool and plastic products, repair of processing equipment. In pulp and paper industry there were not enough power capacities. On Sovetsk pulp and paper mill possibilities of the cooking shop on additional release of 35 thousand tons of semi-cellulose due to the lack of the cardboard machine were underused. Most the enterprises easy and food (except fish) the industries (12.6% of total production of gross output) was placed in the old and shabby adapted buildings which were not meeting the requirements of technical documentation.

Especially modernization of production after transfer of the enterprises of area to Economic council of the Lithuanian SSR slowed down. For 1963 — 1964 in comparison with the previous period the gain of capital investments was reduced by development of the industry by more than 3 times. Growth rates of the output on the enterprises entering submission to the Lithuanian economic council decreased twice [3, 46, l. 22].

Planned economic organizations of the Lithuanian SSR sharply lowered investments on expansion of the enterprises of the industry of construction materials and building industry. So, capital investments on expansion

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the enterprises of Promstroymaterialy trust were reduced almost by 3 times (the average annual volume of capital investments on development of the industry of building materials in 1960 — 1963 was 1780 thousand rubles a year, in 1964 — 1965 — 602 thousand rubles), the construction organizations of Kaliningradstroy trust — by 2.7 times [3, 46, l. 22, 45]. It resulted in serious difficulties in implementation of the program of production, housing and welfare development.

The Kaliningrad building industry needed large-scale reconstruction which project for 1966 — 1970 was developed by Giprostroymaterialy institute (Riga). Offers on implementation of the project were sent by the Kaliningrad regional executive committee to State Planning Committees of the USSR and the Lithuanian SSR [4, page 38 — 40]. The State Planning Committee of the USSR the letter of May 7, 1965 No. 10 — 379 charged to the State Planning Committee of Lithuania to consider a request of residents of Kaliningrad on construction and reconstruction of the enterprises of the industry of construction materials for the specified period. What surprise of the Kaliningrad administration when indications of the State Planning Committee of the USSR not only were not executed, but on the contrary was, in 1966 only 0.5 million rubles were allocated for reconstruction and expansion of operating enterprises, that is there was a further reduction of capital investments for the Kaliningrad region [3, 43. l. 45].

The general scheme of development and placement of production forces on prospect till 1970 for the Baltic economic region in the Kaliningrad region provided construction of five new enterprises, including three engineering plants (the starting equipment, the industrial equipment and trade mechanical engineering). However construction only of two small enterprises was planned the title list of again begun buildings in 1966 — 1970 submitted by Economic council of the Lithuanian SSR (the plant of hygroscopic cotton wool in Gusev and the Bolshakovsky torfo-enterprise).

In the presence of raw materials and the big need for a cardboard container for needs of fishing industry without any bases the offer of Management of pulp and paper industry on construction of cardboard factory in Sovetsk [3, by 46, l was rejected. 22 — 23].

To fall of 1965 all opportunities for improvement of a situation in the Kaliningrad region with development of the industry and building industry were exhausted. The management of Economic council of the Lithuanian SSR just ignored addresses and proposals of residents of Kaliningrad, disregarded also indications of the State Planning Committee of the USSR, VSNKh of the USSR. Ineffectual were attempts of party bodies to solve this problem. The strategy of the Lithuanian SSR was clear: The Kaliningrad region became some kind of donor at the expense of whom the republic could improve the indicators of economic development considerably. A considerable part of economy of the Kaliningrad region, in fact, worked for increase in welfare of the neighbor. To fall of 1965 the industry of area was subordinated to various ministries and departments (see the tab. [3, 35, l. 34 — 35]).

Distribution of the industrial enterprises of the Kaliningrad region for the ministries and departments in 1965

The ministries and departments The number of the enterprises Gross output according to the plan for 1965 (million rubles) The number of working (people)

Ministry of Fisheries of the USSR 19 503.6 31849

Economic council of the Lithuanian SSR 53 234.7 37387

Ministry of the ship-building industry of the USSR 1 74.0 8866

Ministry of electronic industry of the USSR 1 5.1 1224

Ministry of Energy and electrification of the USSR 9 11.1 2907

Other allied ministries and departments 3 7.4 1630

Ministries and departments of RSFSR 70 76.3 5682

Local councils 35 23.9 5525

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A quarter of all industrial enterprises, about 40% of the workers and employees occupied at these enterprises, a quarter of a gross product of area — here that potential of which the Economic council of the Lithuanian SSR could dispose in the interests.

The area not only slowed down process of the development, but also got to a stagnation strip. About it the secretary of regional committee of the CPSU N. Konovalov wrote in the address to the State Planning Committee of RSFSR: "When in the neighboring Baltic republics consequences of war are liquidated, the cities and industrial settlements of the Kaliningrad region are still not restored. On their streets and the areas there are a lot of destroyed buildings, the living space makes 30% of pre-war fund. Water supply systems do not provide need of the population for drinking water. In the regional center city transport does not cope with passenger traffic and demands serious reconstruction" [4, l. 39].

Of course, the situation in the national economy of the Kaliningrad region was result not only the last years of development. In general the general policy (more true, its absence) the states in relation to the again acquired region affected here. Re-submission of a considerable part of economic capacity of the area to Economic council of the Lithuanian SSR, of course, slowed down rates development. But what is especially important, the management of Economic council took direct responsibility for stagnation of the Kaliningrad economy. Here the unwillingness of the management of Economic council to consider in the draft of the economic plan for 1966 — 1970 the interests of residents of Kaliningrad is an example. The leadership of the Kaliningrad region in the letter to Council minist-

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directly said a ditch of RSFSR that activity of Economic council became "a serious obstacle in the solution of many issues of development and improvement of industrial production. At such situation local conditions and problems of development of the national economy of area" [3, by 35, l were not considered. 35].

The plenum of the Central Committee of the CPSU which took place in September, 1965 made the decision (for area it became really fatal) on transition to management of the industry by the branch principle. The area economy according to this decision turned into submission to the ministries and departments of the USSR and RSFSR. Offers on resubmission of the industry and building industry of area were ready in October [3, 35, l. 35].

However process of liquidation of economic council was dragged out, remained a former order of planning for 1966. And even then, when it became clear that the industry of area will come out submission of the Lithuanian SSR, the policy of discrimination of the Kaliningrad economy still continued to work.

It was distinctly shown in the draft of the investment plan for industrial, housing and welfare construction in

1966 . If in 1964 — 1965 9 and 8 million rubles were allocated for development of the industrial enterprises of area respectively, then only 6.4 million rubles were planned for 1966. Especially capital investments in mechanical engineering and light industry decreased. The construction plan did not include a number of important objects on the operating enterprises which are already provided with technical documentation which need of a construction was confirmed by resolutions of governmental bodies. Assignment for drawing up technical documentation for reconstruction and construction of the enterprises in the next years [3, by 46, l was not planned. 54].

In the letter the secretary of regional committee of the CPSU M. Kudikin told the first deputy chairman of Economic council P. Izvekov that key indicators of the plan of industrial development of area for 1966 "do not correspond to the available production capabilities" [3, 46, l. 64].

In particular, to pulp and paper mills in connection with the change in price for viscose cellulose and terms of delivery of products decrease in the output on a shaft was planned for 2.2%. At the same time the increase in productivity of work for 0.7% was outlined. It led to need of reduction of number working for 283 persons against actual. The plan for work did not consider allocation of limits on industrial and production personnel for again entered objects. The expenses with a total amount of 700 thousand rubles connected with increase in prices for the technical materials applied in production were not provided in plans of product cost. Reduction in production on meat-processing plants was unreasonably planned for 5.6% that led to decrease in number working on 91 persons. To the Zelenograd brush factory decrease in the output by 18% at reduction of number working for 48 people was provided

To the Stroydormash plant the release of 250 modernized small-sized D-456 tractors was planned. At the same time calculations of the plant on development of release of these tractors only in the second half of the year were not considered that on -

zvolyalo until the end of the year to make only 125 cars. The Economic council established the plan of production of spare parts for this plant for the sum of 125 thousand rubles while the need for spare parts was defined by Stroydormashzapchast office of only 19.4 thousand rubles. To the Avtozapchast plant production of spare parts to the ZIL-157 cars for the sum of 1440 thousand rubles without necessary preparation of production and existence at the enterprise of the special equipment for these purposes was provided. The list can be continued and further [3, 46, l. 64 — 67].

Similar planning was characteristic also of the enterprises of building industry. So, to woodworking plant (DOCK) of Promstroymaterialy trust for 1966 the production of door blocks was provided of 30 thousand sq.m. This indicator was almost twice less actually reached in previous year. The Kaliningrad DOCK was the only enterprise in the area providing the construction enterprises with these products and annual requirement for it only of Kaliningradstroy trust made 50 thousand sq.m [3, 46, l. 68]. It is necessary to consider that decrease in the output led also to considerable reduction of working personnel at plant, to incomplete use of its capacities.

At the end of December, 1965 the Kaliningrad economy received "long-awaited freedom" — it turned into maintaining the allied and Russian ministries. The three-year experiment of stay in the structure of the Lithuanian economic council was completed.

In 1963 during realization of the principle of Territorial Department economy the industry and the construction industry of the Kaliningrad region was subordinated to two republics (to RSFSR and the Lithuanian SSR), to several allied ministries and departments. As showed experience, the new control system extremely complicated the routine and advance planning of the national economy of area, did not allow to consider correctly local conditions, did not provide employment of human resources, needs of housing-and-municipal and municipal economy.

Moreover, conditions for manifestation of forcible approach to management of economy of the subordinated region were created. The leaders of the Lithuanian SSR used resource opportunities of the Kaliningrad region for the benefit of the republic, caring for the prospects of development of the isolated territory of the Russian Federation a little. The situation with development of the draft of the five-year development plan for the national economy can be an example. In the spring of 1965 when development of the state plan of the national economy was already completed, the area had no uniform draft of the development plan for the industry and construction for 1966 — 1970 yet. All offers on expansion acting and to construction of the new enterprises of area were rejected by the Economic council and the State Planning Committee of the Lithuanian SSR referring to a lack of the capital investments allocated for them [3, 35, l. 4].

At once after resubmission of the enterprises and organizations of the Kaliningrad region the large-scale reconstruction and construction of a number of the plants and factories, creation of new capacities, offers on which were rejected earlier by Council of the national economy of the Lithuanian SSR, began. For example, in 1969 it was put into operation

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46

main building of the Elektrosvarka plant, long time which was at a stage of permanent construction. New life was received by the Kaliningrad foundry and mechanical plant transformed to experimental plant of the paper-making equipment, etc. [4, page 469, 475].

The main conclusion which can be made of obviously unfortunate experiment consists in need of granting to territorially isolated economy of area of bigger independence at increase in attention to the region from the Center.

List of sources and literature

1. State archive of the Kaliningrad region. T. 47. The internal inventory put.
2. State archive of the Kaliningrad region. T. 47. Op. 2.
3. Center of storage and studying documents of the contemporary history of the Kaliningrad region. T. 1. Op. 43.
4. The most western: The Kaliningrad region in documents and materials for 1962 — 1985 Kaliningrad, 2001. Prince 1.

About the author

G.V. Kretinin is Dr. an east. sciences, the prof. of RGU of I. Kant, biacrisi@baltnet.ru.

UDC 947 (470.26)

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