I'm a Profiteer in Cold War Germany

He quickly analyzed the current situation in his mind.

’As the head of the quota department, Klein holds absolute power over the allocation of foreign currency.

What’s his core need? Rent-seeking.

To use his authority over quota approvals to pocket the massive difference between the official price and the actual market price.

And my value lies in this: I have genuine procurement channels, able to obtain goods at a cost far below the official regulated price.

At the same time, I also have various "special channels" to circumvent customs inspections and foreign exchange controls.

Our needs complement each other perfectly.

Klein provides the protection of his authority and a veneer of legitimacy, while I handle the actual execution and assume the risk.’

With this in mind, Werner began his performance.

"Swiss watches..." Werner said thoughtfully. "First, it depends on the specific need. For an official procurement through normal channels, one Omega watch would require a quota of about 150 West German Marks."

Klein nodded. That price was indeed the official regulated price.

"However," Werner continued, "if there are special channels—for example, purchasing through a technical expert working in Switzerland, or using the Church’s charitable supply channels—the cost could be as low as around 100 West German Marks."

A 50 West German Mark difference! Klein’s eyes flashed with greed. Converted to East German Marks, that was about 200 East German Marks.

"Of course," Werner said, feigning caution, "an operation like this requires extreme care. We must ensure all documents are complete and all procedures are compliant."

"That goes without saying," Klein nodded. "We are a state agency. We absolutely cannot engage in any illegal activities."

The three of them exchanged a look of tacit understanding. The atmosphere in the room grew subtle.

Werner knew the time was ripe.

Klein took a file from his drawer. "Comrade Werner, I happen to have a small project here. See if you’re interested."

"Please, go on."

"The People’s Shipyard recently surpassed its production quota, and the higher-ups have decided to procure a batch of goods to reward the workers." Klein opened the file. "Mainly things like coffee, chocolate, and candy. The budget is about... 5,000 East German Marks."

Werner didn’t show excessive excitement, instead feigning a thoughtful expression. "That’s a sizable budget. What kind of procedures are required?"

"You don’t need to worry about the procedures," Klein said confidently. "I’ll arrange for the Special Materials Company to give you a ’Procurement Consultant’ position. I’ll handle all the approval documents. You just need to be responsible for purchasing and delivery."

’A perfect "white glove" arrangement!’

On the surface, Werner remained cautious. "Then... what about the profit split?"

Klein smiled. "This is business. Everyone has to get their cut. You’re taking the risk and handling the execution, so of course you should earn something. I just need... an appropriate return."

"What do you feel is appropriate?"

Klein thought for a moment. "You take thirty percent, I’ll take seventy. After all, without the approval, there’s no business."

Werner calculated quickly in his head. ’Out of the thirty percent I get, after Klein’s seventy, I still have to give ten percent to Schiller for making the connection.

Even so, the profits from this deal, not to mention the income from future deals now that this connection is established, would be substantial.’

"Deal," Werner said, extending his hand.

The moment their hands clasped, a vast network of interests was officially formed.

Werner was keenly aware that he was about to become a key pawn in this power game—a perfect "white glove."

In this system, Section Chief Klein played the role of the power broker.

He controlled the state-monopolized allocation of foreign trade quotas, giving him the power to decide which goods could be imported, in what quantity, and at what price.

In East Germany, where goods were extremely scarce, this power was practically a license to print money. At the same time, Klein also provided a protective umbrella—with official backing, Werner’s operations gained a veneer of legitimacy, greatly reducing the risk.

Werner’s value, on the other hand, lay in execution and risk assumption.

He had genuine procurement channels, allowing him to obtain scarce goods at costs far below the official prices.

He also had various "special channels" to evade customs inspections. More importantly, if a problem arose, he would be the one pushed forward to take the fall.

The core of this cooperation was to carve up the excess profits generated by the state monopoly and market shortages.

A watch with an official regulated price of 150 Marks had a real procurement cost of only 100 Marks. The 50-Mark difference was their shared "cake."

And there were countless such "cakes" in East Germany—coffee, chocolate, electronics, precision instruments... Behind every scarce commodity lay a massive opportunity for arbitrage.

Best of all, the entire operation was cloaked in a mantle of legitimacy.

"Rewarding the workers," "technical assistance," "charitable donations"—these high-sounding justifications provided the perfect cover for their profit-seeking activities.

"Comrade Werner," Klein’s eyes shone with greed and excitement, "I have a feeling we’re going to have a very pleasant partnership."

"I think so too," Werner nodded, but his mind was already pondering deeper issues.

’Klein needs more than just money. He wants Western goods that can’t be bought with East German Marks—premium liquor and tobacco, electronics, even cars.

For an East German official, these items carry immense symbolic meaning. They represent the Western lifestyle and are status symbols.

And I am precisely the one who can provide them.

More importantly, I can provide hard currency—West German Marks.

On the East German Black Market, the purchasing power of the West German Mark far exceeds that of the East German Mark.’

"So," Werner asked, "when should I report to the Special Materials Company?"

"Tomorrow afternoon," Klein said briskly. "I’ll let them know you’re coming and arrange a ’Technical Consultant’ position for you. Your job will be to assist in procuring special goods."

"What’s the compensation?"

"A monthly salary of 300 East German Marks, plus a commission on each transaction," Klein said with a smile. "Of course, the real income isn’t from that."

Werner understood. The 300-Mark salary was just a cover; the real income would come from those massive price differences.

"Section Chief Klein," Schiller interjected, "when does the 5,000-Mark project begin?"

"We can start next week," Klein flipped through his calendar. "However, Comrade Werner, I need to see your supply capabilities first."

"What do you need?"

"Get two Swiss watches first to test the waters. One Omega and one Longines."

’This isn’t a test of my supply capabilities,’ Werner knew. ’It’s obviously a personal gift for Section Chief Klein.’

"By the way," Klein said, as if suddenly remembering something, "the higher-ups have been tightening regulations on Western goods recently. Border checks are also more frequent."

A knot formed in Werner’s stomach. "What are you implying?"

"The implication is," Klein looked at him meaningfully, "that the window of opportunity may not be open for long. What needs to be done, should be done quickly."

Werner knew perfectly well that the Berlin Wall would be built in less than two months. He had to get this channel fully established before then.

"I understand," Werner nodded. "Then let’s hurry and make all the money we can."

Klein smiled, satisfied. "I like your decisiveness!"

After leaving the Ministry of Foreign Trade building, Werner and Schiller walked side-by-side down the street. The sun was setting, and the streets of East Berlin were sparsely populated, with a few dilapidated Trabant cars occasionally driving by.

"You did well today. Klein seems very satisfied," Schiller said with a casual smile. "But you need to be careful. That man Klein... he has a huge appetite."