As West Germany was reorganised and gained independence from its occupiers, the German Democratic Republic was established in East Germany in 1949. The creation of the two states solidified the 1945 division of Germany.  On 10 March 1952, (in what would become known as the " Stalin Note ") Stalin put forth a proposal to reunify Germany with a policy of neutrality, with no conditions on economic policies and with guarantees for "the rights of man and basic freedoms, including freedom of speech, press, religious persuasion, political conviction, and assembly" and free activity of democratic parties and organizations.  This was turned down; reunification was not a priority for the leadership of West Germany, and the NATO powers declined the proposal, asserting that Germany should be able to join NATO and that such a negotiation with the Soviet Union would be seen as a capitulation. There have been several debates about whether a real chance for reunification had been missed in 1952.
The SED emphasis on managerial and technical competence also enabled members of the technocratic elite to enter the top echelons of the state bureaucracy, formerly reserved for political dogmatists. Managers of the VVBs were chosen on the basis of professional training rather than ideological conformity. Within the individual enterprises, the number of professional positions and jobs for the technically skilled increased. The SED stressed education in managerial and technical sciences as the route to social advancement and material rewards. In addition, it promised to raise the standard of living for all citizens. From 1964 until 1967, real wages increased, and the supply of consumer goods, including luxury items, improved much.