Starting with the 1 Pf. in 1960, followed by the 10 Pf. in 1963, and the 5 Pf. in 1968, the old style coins were gradually replaced with new coins depicting the state name "Deutsche Demokratische Republik." Aluminium 1 Mark, 2 Mark and 50 Pfennig pieces were released for circulation in 1956, 1957 and 1958, respectively. In 1969, brass 20 Pfennig coins were introduced, with nickel-bronze (later cupro-nickel) 5 Mark coins issued from 1968. In 1973 and 1974, 1 and 2 Mark coins were redesigned dropping the former "Deutsche Mark" title. The brass 20 Pfennig coins were issued partly because pay telephones had a standard charge of 20 Pf. and were having problems with smaller aluminium coins jamming due to their light weight. Commemorative 5, 10, and 20 Mark coins of various types have also occasionally made it into circulation.
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.