With the formation of a separate East German communist state in October 1949, the Socialist Unity Party faced a huge range of problems. Not only were the cities in ruins, much of the productive machinery and equipment had been seized by the Soviet occupation force and transported to The Soviet Union in order to make some kind of reconstruction possible. While West Germany received loans and other financial assistance from the United States, the GDR was in the role of an exporter of goods to the USSR—a role that its people could ill afford but which they could not avoid.