Article: West German Aid Helps East Germany Avoid Crisis

West Germany has gradually increased its economic aid to East Germany in recent years, helping the hard-line leadership here sustain one of the Communist Bloc's highest living standards while resisting liberal reforms now sweeping much of Eastern Europe.

West Germany props up its smaller, less prosperous socialist neighbor with myriad forms of assistance including direct grants, lucrative trade concessions and cash payments to the swelling number of East Germans visiting West Germany. Even the "care packages" of Western goods West Germans mail to their relatives in the East are estimated to be worth $500 million a year and are thought to play a significant role in easing shortages here.

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