sounds a load of crap to me as i've extensively researched the gsd and not come across anything like that. you'll find that its more likely a cross between highland thuringia and the wurttemburg sheep dogs.
It`s poo. Deninitely poo. There was a guy trying to sell a page from a German stud-book a while ago for hundreds of dollars which `proved` that GSDs had wolf breeding . According to him the stud books were then `edited` to hide all traces. And only his friend in all the world had the original which he was prepared to sell for megabucks.
It as been recorded in some of the early books from the begining of the 20th century that the great-granddam of Hector von Wohlen, whose name was Mores-Plieningen had a greatgrandsire who was the result of a cross between a wolf & GSD at the Stuttgart Zoological Gardens in approx 1881, this was stated by Monsieur Otto Rahm, of Wohlen Switzerland, before the SV stud book was open. In 1903 in the Swiss canine journal Centralblatt, there was mention of this crossing by Captain von Stephanitz. There is also mention of Phylax von Eulau I. having wolfs blood in the pedigree (poss mix of Laika or spitz with wolf and a herding breed). Then you have Woelfi von Wolfsnest formerly Suleika Star who had wolf ancestory.
I read somewhere that original GSD's were the result of crossing wolves and local German shepherd type dogs. I have not found any proof to this claim tho.
The most recent DNA studies have confirmed that the domestic dog (Canis lupus familiaris) evolved from the wolf (Canis lupus). Scientists are divided on when this happened, however. Some argue it occurred 100,000 years ago, others that it was a far more recent development, closer to 15,000 years ago. Most are agreed, however, that the dog almost certainly evolved in the far East, probably in China. Geneticists think the dog is closest in its make-up to the Chinese wolf. Ancient Chinese breeds, today represented by dogs like the Lhasa Apso and the Shih Tzu are regarded as the closest relatives of these prototype canines. I now regard my friend`s sh*tzu in a totally different light!