Officials from both German nations announced a multibillion-dollar project Friday to renovate crumbling cities in East Germany and provide more and better housing for people on both sides of the border. Also Friday, East German's official news agency reported that ousted Communist leader Erich Honecker, who faces corruption charges, is too ill to be jailed and needs surgery to remove a kidney tumor. The first beneficiaries of the joint renovation project will be the East German cities of Meissen, Weimar, Brandenburg and Stralsund. Those cities and many other urban areas of East Germany require major restoration following damage during World War II. General neglect under a socialist system that gave priority to industry over living conditions, and the devastating effects of the brown-coal haze choking major cities, have contributed to their deterioration. West Germany's construction minister, Gerda Hasselfeldt, said Bonn will contribute $4 billion to the project in the next two years. Ms. Hasselfeldt and East Germany's minister for construction and housing, Gerhard Baumgaertel, said the reconstruction of the four cities will be the pilot project for cooperation between the German states. ``It is my hope that by pursuing all means of improving housing and construction in this country, that our housing market can be eased as well,'' Ms. Hasselfeldt said. East Germany suffers a serious housing shortage because many residential buildings are unfit for habitation. West Germany's housing problem is due more to a lack of space and the high cost of construction. Tens of thousands of apartments in East Berlin are empty because of last fall's exodus to the West of disgruntled East Germans. If the apartments were upgraded to Western standards, arrangements could be made to rent some of the space to West Berliners, who are short at least 50,000 homes in their crowded city of 2.1 million people. Ms. Hasselfeldt said more incentive for ``private ownership and individual responsibility'' was needed to ensure the joint projects succeed. She said West Germany was not putting any conditions on the financial and technical aid it will give to the renovation but said the projects ``cannot function successfully without structural changes'' in the East German economy. The new chairman of West Germany's Deutsche Bank visited East Berlin on Friday, but no details of the talks were disclosed. Deutsche Bank is expected to play an important role in turning around East Germany's stagnant economy after 40 years of socialist mismanagement. Communist Premier Hans Modrow has called for limited steps to attract foreign investment and encourage some private enterprise. His plan for guiding the nation out of its economic morass is to be disclosed next week. Modrow became premier during the pro-democracy movement that resulted in Honecker's ouster Oct. 18. Honecker, 77, has been in seclusion at a former Communist Party estate since Oct. 18, but he must be moved from the compound by the end of the month as it is to be converted to a state home for the handicapped. The official ADN news agency said Thursday that doctors had asked to examine him to determine if he could be imprisoned pending investigation of corruption charges. On Friday, ADN said Honecker was too ill to be jailed. Another new opposition group announced its formation Friday. The pro-Western party calls itself the Social Citizens Union of Germany and advocates reunification with West Germany and transition to a full market economy. Most other pro-democracy groups are pressing for closer ties with West Germany but retention of East German sovereignty. National elections are scheduled in May.
