IMDB says "Country: West Germany / Spain." But my digital cable said "Spain/DDR." The DDR was East Germany. So, which Germany was it?
I can't imagine that the East German regime, which was culturally very conservative, would have allowed for such a film. But I was thinking that maybe it was supposed to show the decadent, corrupt, unsafe West.
Even though you posted the question a few years ago, it was a West German production shot in Spain. A Spanish director would have had a very hard time getting behind iron curtain at all in the 70's. It would be like an American going to North Korea to make a movie today. I have never seen an East German movie though there are some interesting looking ones here:
http://en.wikipedia.org/wiki/List_of_East_German_films
The Eastern Bloc made some great films though I like some Soviet ones and a few from Czechoslovakia.