U.S. soldiers feed black market
East Berlin black market thrives on U.S. dollars
BERLIN (AP) — American soldiers, by their
own account, are bringing black market money
into East Berlin to buy goods — sometimes on
tours conducted by the U S. Army.
There is no way to determine the scope of
the transactions, which are illegal in Com
munist East Germany, but they appear
widespread.
A dozen soldiers interviewed recently at
the big Centrum department store in East
Berlin freely admitted they brought East Ger
man marks into the country and implied that
everyone else in their 70-member group had
done the same.
The uniformed soldiers were seen buying
goods ranging from rocking horses to vodka at
prices that would be extravagant at the legal ex
change rate but, with smuggled marks, were in
fact dirt cheap.
“This is a great savings, even over the PX
(in West Berlin),” a soldier from Connecticut
said, fingering a 318-mark black leather jacket.
“At the PX, leather jackets are 135 bucks. But
here, this one would only cost me about 30.”
One soldier, clutching a liter of vodka,
crowed, “Quality stuff, and just 16 marks, so I
paid...about a dollar sixty.” Another soldier
carried a stuffed rocking horse worth 78 marks
or $32.50 at the legal exchange rate, but only
$7.80 when bought with East German marks he
had brought into the country.
All talked only on condition they would not
be identified.
At currency exchanges in East Germany,
one West Germany mark buys one East Ger
man mark. But in West Berlin, you can buy for
East German marks for one West German mark,
worth about 41 U.S. cents at current rates.
Although East German law requires all
East German marks to be purchased in East
Germany, and forbids taking them in or out of
the country, the soldiers said it was common
practice to buy East German marks in West
Berlin .
Tourists also pay five West German marks
for a day visa to East Berlin, and must change
an additional 25 West German marks into East
marks at one-to-one rate.
Leftover East marks must be deposited in
a tiny state bank within the checkpoint area or
donated on the spot to the Red Cross or other
charity. Deposited marks can be withdrawn if
tourists return to East Germany, although there
is a time limit. The minimum exchange require
ment does not apply to U.S. soldiers.
The law is designed to protect the Com
munist currency.
However, as one West German money
changer openly selling East German marks put
it: “That’s their law, not ours.”
“Of course it’s all black market money,”
said a cashier at the IWS currency exchange in
Frankfurt.
While tourists attempting to take East
marks into East Berlin run the risk of being
caught, the soldiers do not.
“This uniform is a shield," boasted a
young sergeant.
Under the Four Powers agreement at the
end of World War II, American, British and
French soldiers have free access to East Berlin,
the Soviet sector of the divided city.
Sheik loses half his fortune in divorce
LOS ANGELES (AP) — A
judge overseeing the largest
divorce action in history
ordered Arabian Sheik
Mohammed Al-Fassi on Thurs
day to give his wife half the
fortune that she claims is
worth $6 billion.
If Sheika Dena Al-Fassi’s
claims prove accurate, the
default judgment granted by a
superior court judge would be
the largest divorce judgment
in history — $3 billion.
But the sheika’s attorney
has indicated she would settle
for about $500 million in cash.
Judge Robert Fainer
postponed implementation of
his order until May 27 to give
Fassi time to meet certain
conditions that he has so far
refused to comply with, in
cluding appearing in court and
giving a deposition.
“The court understands that
this is a harsh remedy,” the
judge wrote. But he said his
action was warranted by
repeated defiance of court
orders by the sheik.
‘‘The court has already
found the respondent to have
acted willf illy and without
substantial justification for
failing to answer inter
rogatories,” Falner said.
The 28-year-old Fassi fled
from Florida to his homeland
of Saudi Arabia last October
taking along his four children
without court approval. His
trip followed a dispute with a
Miami hotel over an unpaid
$1.5 million bill.
A federal warrant is outstan
ding for him for removal of the
children from the country and
Fassi has said he cannot
return to the United States to
take part in the divorce pro
ceedings because of the
warrant.
The Sheika lives in a
bungalow behind the sheik’s
gaudy Sunset Boulevard man
sion, which was gutted by an
arson fire in 1980.
Neighbors had complained
that the mansion was painted
a bright green, had plastic
flowers planted in urns out
side and the genitalia of nude
statues were painted red.
Under the default judgment,
the 24-year-old sheika must
prove the value of her hus
band’s property and is entitled
to one half of it under Califor
nia’s community property law.
Her attorney, Marvin Mit
chelson, had said previously
that if default were granted
they would probably seek $500
million in community property
because "it might be difficult
to prove he is worth more than
$1 billion or $2 billion."
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