Kathrinchen ging spazieren (“Little Catherine went for a walk”) is a children’s book by Peter Hacks with illustrations by Heinz Edelmann, who is internationally best known for his work on the Yellow Submarine movie. The book was published by Gertraud Middelhauve Verlag in 1973. See some of Edelmann’s interior illustrations on Hans Bacher’s blog.
The Kalligraphia version used here is probably the one by Berthold Fototypes. Letraset adopted the design only after 1976, and also dropped the crossbars on z (as well as x X Z 7).