THE EUROPEAN SATELLITE POWER COMPLEX

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79R01012A000900030002-6
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RIPPUB
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T
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169
Document Creation Date: 
November 9, 2016
Document Release Date: 
September 28, 1998
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2
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Publication Date: 
August 8, 1951
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REPORT
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,-Approved For Release ?$99/09/27 O VICE OF RT. t" H A-'rID REPO GCS / ?. Pro j t 6-51.s C stributioa to IE-33 EUROPEMT $ATKt ITE P JF t CO PART I INDIVIDUAL SATELLITE C?M.HIESs TOOMM f t` THS A WEAK SE5 8 August 1951 I DOCUMENT NO. NO CHANGE IN CLASS. i Cl DECLASSIFIED CI ACC CHANGED Tn. rS NEXT REVIEW DATE: _ / y9 AUTH: ++??HR 7-0-_2 DATES ~I REVIEWER; ig has been pregarred at the request of the Of ce of IM onal E timates its a contribution to NIE-33. The material for Section III oontributec. '' OIRs, Depart of Stet; for Sectim VI G7$ by G-29 Dgq=t-- ment of the Amy. The over-M classi l oatiou of the report is Tap Searet o C a seotio a however, are of love' classification and are so : .ca . 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A i CO 0 C o v'" 0 L" O a 9 160 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release I 9Ve" 27-=IA-RDP79R01012A000900030002-6 ? bO joct (Cants butio n ;o x>33) PART I IW IVIEXJAL SATELLITE COUNTRIES: I~CO,IQi IG STRENGTh S AIrji TTAMM,,"X5M Cz3 Ch't LcWAKII- gxl Conclusions. The oonoinic organization of Czechoslovakia, partilm iarly in industry, is far_advanaed to'&-erd tho Soviet type, and economic policy i directed from Moscow, She USSR pl to transform Czechoslovakia' s essentially light induct-:,T into a heavy indste,:rial cemaolex, which will be integrated with Polish industry and coal resources to forma "sencond Ruhr," the nucleus for the industrializati4:-i of the Bloc. In view of the inability of the Soviet Bloc to supply the neeee r.. capital equipment, as well as such rev meteria s as wool, cotton, rubber, and tin, it is doubtful that suoh a conversion ca-r- be carried out at the rate scheduled wader the Five Year Plan (1949?53). The shortage of nonagricultural labor i c another important factor limiting the ability of the Soviets to carry out their plans for converting Czechoslovak into the "machine shop" of the Bloc. Although the level o: technica"s. skill of Czechosloval labor is generally high by Eastern !Duopean standards ,q the expulsion of 3 raillion Germans, most of them skilled vioirker & from the u.c; tern part of the country after Tlorld Tar II was a serious loss. Furthc.-Tu)re, there is little reserve, manpaver available in agriculture except in the relatively backward region of Slovai ia? there industrial develops sent is being particularly emphasized. The standee : of livin in Czechoslnitakia is still the highest awng the Soviet Bloc countries,, but shortages of consumer goods have resulted in rationing and high prices vthich9 because the people have in the past been accustomed to standards comparable to those of Western Europe, have resulted in low public morale,, Levels of living are not expected to rise appreciably by 1953. The v-ital importance to the Soviet Bloc of Czechoslovakia as a source of industrial equipment is reflected in the rising value of trade between Czechoslovakia And the Bloc countries, Information on foreign trade shows that Czechoslovak processing facilities9 the best in the Bloc9 are being used extensively for the account of the USSR and constitute the. greatest exploit- able asses, next to the facilities of East Germany, gained by the USSR in the postwar eyrtti-nsion of Soviet hegemony. Czechoslovak foreign trade policy, as foivuulated by the Kreml.in, is to strengthen economic ties with the Bloc and to reduce trade with the Vest, but the composition of Czechoslovak foreign trade reflects a continued,, though declining., reliance on the Lest. The -most Approved For Release 1990+09127 : CIA-RDP79RO1012A000900030002-6 ''`Approved For Release 1999/09/, CIA-RDP79R01012A000900030002-6 Sz C:t zr important commodities secured from nor,-Bloc countries are iron ore, cotton, wool, other textile fibers, specialized industrial items, and nonferrous metals and productsm In l950approximately one-quarter of the value of Czechoslovak trade was with the USSR, one-quarter with the European Satellites, one-quarter ri.th Western Europe, and one-quarter slith the rest of the -;orlde C zechoslovakia has a ',highly developed iron and steel industry with the largest output of any of the Satelllites? Although the country has large reserves of metallurgical coking coal of adequate quality and of low-grade iron ore., the industry is largely dependent on imports for high-grade iron ere, iron and steel scrap, and most of the ferroalloys. Procurement of ferro- alloys is one of the most serious problems confronting the industry, and failure to obtain a regular and adequate supply has been a principal factor in the marked deterioration in the quality of Czechoslovak steel products. Insufficient, amounts of manganese and tungsten -:re mined domestically, All other ferroalloying metals are obtained entirely from abroado The Five Year Plan calls for an increase in raw steel production of from 2,7 million ,metric tons in 1949 to 305 million in 1953. To accomplish these goals,, existing plant facilities will have to be modernized and expanded, new mills built, modern installations and equipment p r ocured,, and production methods and plant management improved, These problems would be greatly aggra- vated by the necessity of extensive conversion of facilities were the availability of high-grade Swedish ores to be sharply reduced, In any event, the industry is faced with a critical scrap shortage, and it is unlikely under existing con- ditions that annual production targets will be met in any year of the Plan, Czechoslovakia is almost cos3letely dependent on imports for nonmetallic minerals, as well as nonferrous metals, With the exception of antimony, mercury, and graphite,, of uahich there are exportable surpluses, the domestic supply is meager. There is no bauxite or tin ore and only small quantities of copper, lead,, and zinc ore, all of which are of low grade and too limited in quantity to permit self-sufficiency, The supply of coal., i:hich provides from 90 to 95 percent of the energy pro- duced in Czechoslovakia, is adequate, and reserves are ample for an indefinite period Some bituminous coal is imported, but an almost equal quantity of of icr types of coal and coke is exported. Proved reserves are estimated to be over 5 billion metric tons of bitumirors and about 4 billion tons of brown coal and lignite. The bituminous coal is generally of high grade and compares very favorably with Oezman and Polish Silesian coal., The brown coal is superior to German brown coal. Domestic production of crude oil is unimportant, probably not greatly in excees of 50,9000 metric tons a year,, and known reserves amount to less than +00,000 tons, Approximately 200,,000 metric tons of synthetic oil are produced annually from coal,, leaving approximately 400,000 tons of petroleum requirements to be met by imports,, mainly from Rumania and Austria and to some extent from the USSR and Hungary? SECRza Approved For Release 1999/0 /27 : CIA-RDP79R01012A000900030002-6 .Approved For Release 1999/09/2 CIA-RDP79ROl012A000900030002-6 SECRET Nearly 85 percent of the electric porter distributed over the extensive Czechoslovak grid is prodheed by thermal generating units. Coal is the principal source of energy. Coal reserves., most of which are broom coal with a relatively low heat content, are ample,, but it is planned to increase greatly the exploitation of hydroelectric resources. Czechoslovakia is pro- viding the generating naoUrcry and equipment for a new electric power plant in Poland which will utilize kvliuh coal and gill supply a large amount of electric power to Czechoslovakian The chemical industry is substantially self-6upnorting but must import sulphur and pyritesy as well as salt for alkali and chlorine production and phosphate rock and potash for fertilizers. In tonnage output and variety of production the industry ranks third after East GermarW and Poland among the Satellites. It acts as a processing agent for rasr materials shipped from the USSR or from the other Satellites. A large proportion of Czechoslovak pro- duction of finished chemical products, synthetic fuels$ and consumer goods depending on chemical compounds for their rraxuzfact-ure are exported to the USSR to the detriment of the Czechoslovak economy. Nitrogen production is inade ,fate, and additional quantities must be imported, principally from Austria. Three- fourth: of the domestic output of nitrogen is used in the production of nitro- genous fertilizers. The rubber fabricating industry is hilly developed and is capable of rtceting domestic requirements and providing a considerable quantity of a large variety of rubber products for export. /1though production of carbon black and rubber chemicals has been started., the country is mainly dependent on imports for these products, These imports have been obtained, some clandestinely, fron Western European countries and from the Soviet Bloc* The engineering industry is the most important sector in the Czechoslovak cconoW, and it is the key element in Soviet plane for the industrialization of the Satellites. The main divisions of the industry include heavy machinery, aircraft., vehicles, and general machinery, In generalq the luc~sstr es producing capital goods are vulnerable with respect to raw materials, cents, and specialized machinery., vhich in the past have come mainly from the West, V.estern export restrictions." even though loosely enforced, have impeded Czechoslovak pro- duction., inasmuch as the Czechs have been able to obtain from the Soviet Bloc only inferior metals, defective components? and almost no specialized machinery. Despite these obstacles, the trend is toward expansion of the industry and in- creasing conversion to war production. Approximately ]3 percent of total Soviet uranium availabilities is obtained from Czechoslovakia., ichhich has deposits of low-grade uranium ores Czechoslovak transportation is not a factor seriously limiting the war potential of the Soviet Bloc. The rail network,, vthich carries over 90 percent of all ton-kilometer traffic, is the most dense in Eastern Europe. It is more efficient than any other network in the Orbit area. Rolling stock availabilities are somewhat below present requirements., hoviever, since a large part of domestic production of this equiprent goes to the USSP. and the Satellites. Furthermore, a strain is irryosod on the main emst-west lane by the shift of traffic from Approved For Release I 999/ 75~ 1 -RDP79R01012A000900030002-6 "Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 aECIET To Trends in the Structure of the Economy, Summa A high degree of governmental economic control has been achieved in Caeoho- slovskia. The nationalization of industry and services is nearly complete, and over 22 percent of the arable land in the country is under collective or coop- erative management. About 80 percent of all retail firms are state-owned. Control is exercised primarily by the Czechoslovak government and secondarily .by the Soviet Union, operating either indirectly through the national govern- rent or directly through Soviet representatives placed in selected governmental agencies, The Central Planning Board is the highest planning authority in Czechoslo- vakiae and all decisions on planning are implemented through its operating agency, the State Planning Off'ioe? In addition, the State Planning Office supervises they Price Control Office, the State Statistical Office, and the Slovak Planning Office and checks on plan performance through the statistics collection services. Labor unions have been converted into instruments of governmental control over labor. Taxes and financial mechanisms are available for directing the flow of ooonomia activity and for checking up on possible diversions from the plan. Several trends,, however, indicate certain limitations or weaknesses in Soviet control over the Czechoslovak economy. Shortages of raw materials which cannot be filled by the Soviet Bloc greatly hinder the efforts of the USSR to reduce imports from the West and achieve maximum use of manpower and facilities within the Bloc. Efforts to expand the industrial labor force indicate that increased employment in heavy industry can be attained largely only by the trans' for of labor from other industries. Reduced emphasis on collectivization in agriculture reflects the inability of the Communists to proceed at their original pane without disrupting and reducing agricultural produationp Communist controls are in general consolidated and well-established, however, and are considered adequato for achieving Soviet objectives. 1. Control of the Economy by the Goverrmaent (inaludin& Direct Control by th a. Economic Planning. Economic planning in Czechoslovakia has both political and economic m5- Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 I -Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET objectives. The aoonomio plan is formulated, not merely to direct and control production and distribution but also to maintain and consolidate the power of the Covrauufist Parbyt, Economic plans not only give guidance and direction to economic activity but also embody control measures deemed necessary to aooom- plish various Communist political goals? (1) Predation of Czechoslovak economic planning; started with-the Two Year Plan (1947-46)9 a aeries of production targets designed to raise ar.viut an average of 10 percent above 193? levels, In these 2 years the government gained ex- perier:oa in planning and tranaformed the Czechoslovak soon* from a generally free to a largely planned system, The first Five Year Plan (1949-53) established far-reaching goals and set the stage for than introduction of control devices and mechaniaaaa to assure fulfillment of the Plans 1 The bane of the Five Year Plan was a sta. t1stical projection of operations, at maximum capacity and full employments of all productive facilities, After the original statistical plan was developed., alterations were made in accordance with the demands of various policies and problemr, For example, investment targets, which are the most easily changed# were revised to emphasize heavy industry at the expense of light industry, which formerly produced for export to the West. Industries to be reduced were either converted to other production or allowed to perish by cutting the main- tenance allowance below the attrition rate. .d Agricultural production plans were ohauged to meet the planned requirements of other sectors of the economy, Examples of such revisions are the increases projected for industrial crops and for those crops which permit greater mechanization and integration of farms, f Foreign trade plans were codified considerably for purely political reasons, as. for example, the stoppage of trade with Yugoslavia after Tito's defection and the changes made to counter Western export controls, 4Y The Five Your Plan took the form of laws which established targets for over-all production, investments and other aggregate measures which then became the basis for the allocation of materials, labor, finance, and supplies. In addition to this general plan, an annual plan was made for 1949, for 1960, and for 1951, These annual plans are based on the Five Year Plan goals but include alterations of those goals to meet changing situations, Such revisions have been made to include increased Soviet demands for military equipment and heavy steel products, increased exports to the Satellites, and decreased exports to the West. 6 In addition to the annual plans, there are quarterly plans or estimates whit , in effect, constitute "bench marks" for checking progress or for making short-term adjustnents0 The planning process begins with the transmission of Communist economic policy to the Central Planning Board, the highest planning policy board SECRET Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 "Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET of Czechoslovakia. All 15 members of tho Board are Conmunist Party members, and they frequently travel to Moscow to discuss the economic problems of Czeoho- slovm-kia. ? This Board is composed of the Prime Minister, top officials of the State Flaming Office, and a few others, 8/ The State Planning Office acts as the operating agency of the Central Planning Board and also supervises the Price Control Office, the State Statistical Office, and the Slovak Planning OCfioe,, The State Planning Office draft. plans for the Cabinet, checks on performance of approved plans through its statistics collection services, and conducts research on specific economic problems. In the performance of these duties it is given wide powers. All state and private economic agencies are obliged to cooperate with it and are subject to its instructions concerting planning techniques and methodsyand all persons are required by lam to supply promptly any information that 't requests, The State Planning Office has the following divisions% Group I -- Cadre, Plan Control, Legal and Legislation, Material Balanoes, Investaeents, Labor Force and Social Services, and Coeeearerce and Travel, Accounting, 4 II - 'Coordination, Financial Plan, Regional Plan, and Group III -- Heavy Industry, Light Industry, Construction, and Tresisportation, Group IV - Agriculture, Forestry, Food, Economic Cooperation, and Long-term Ply The Economic Cooperation Division in Group IV is probably the key to Soviet control of the planning organization at the working level, It is made up of the following nine sections, Coordination and Control, USSR, Poland,, Southeast, Production, Foreign Trade Finance, Transportation, Scientific- Technical Cooperation, and Research and Politioo-Economic Cooperation. (2) Plan Control, Plan fulfillment is controll3d through a system of checks and counterohecks on the progress and direction of production. Financial control, for example, is exercised through banking, currency, and credit regulations,. Production control is maintained through the allocation of resources, including raw materials, power, fuel, and labor, Further control is exercised through civilian rationing and other devices which limit the demand for goods. In addition, the government utilizes propaganda or psychological campaigns, various pressure tactics including "union" pressure, work brigades for special overtime work, uStakhanovites, "higher work norms, and police intimidation, a7- SECRET Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ? 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 The Communist Party ultimately controls all phases of planned . production and acts as the supreme economic authority, overseeing both govern. rental organization and various production units, Party committees are set up to assure control of governmental agencies. Party representatives are on all regional and district units of National Committees, The functions of local governments are performed by the regional and district units of the National Committees, and Party representatives are in all such units, Through these Tarty committees the Covnunists maintain control of factories or groups of factories,.. Production committees, trades union commmittees, social directors, and security officers erfeot control at they plant or shop levels, The Party organization appears adequate to oversee and control the complete economic process,. (1) Indust . Administrative control of industry has undesgons a number of drastic changes since the Communists cane to power in Czechoslovakia, Party- oontrolied Shop Committees or Action Committees were the first units to assume control over industrial plants and shops, Experienced managers were turned out and replaced by persons whose qualifications consisted of their loyalty to the Party, The resulting production difficulties made the return of ex- perienoed technical personnel a common occurrence. The functions of Shop Committees were then out back considerably, and control over technical manage meat was given to cadres of social or security officers, who perform certain personnel functions and check on management. In the process of socialization, various plants and nationalized factories were merged into enormous combines, 10 (Whole industries were brought under horizontal control through industrial. bureaus of the three production Ministries - Industry, Food, and Trade. More recently these Ministries were broken up into 677 separate directorates, which usually have corporate exist- once and operate like a corporation except that they are ultimately responsible to the appropriate Minister, In December 1950, in an attempt to eliminate the administrative confusion which had developed, these three Ministries were inorensed to four: Heavy Industry, Light Industry, Building Industry, and Food Prooesaing industry. (2) Agriculture, The Ministry of Agriculture is divided into 10 depart.nents: Education and Advisory (Agricultural Schools), Vegetation, Animal Husbandry, Cooperatives, Mechanization, Farm Material and Labor, Pasture Lands, Research and Experimentation, National Land laud, . and Political. The farm population is most directly affected by the activities of the Cooperatives, Mechanization, and Political Departments, 11 The Ministry of Agriculture, in addition to Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 *Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 "FUR ,.most completely nationalired0 In the appointment of plant managers, loyalty to the Party has been the primary consideration, and technical competence has been of secondary importance0 18 The last sectors of industry to come under uontrol have been the skilled artisans, espeoially those of the building in- dietryo Goverment control of economic services is also exercised through ownership. About 80 peroent of all retail firms are state-owned, Remnants of private enterprise can still be found in such small service establishments as tailor and shoe repair shops and among certain professional people such as doctors, but even these relatively unimportant reannants are indirectly controlled by the government through the all-pervasive checks and pressures- of the Communist Party, 19 (2) Extent of Collectivization of Agriculture, Collectivization of agriculture is progressing at a slow pace, 20 At the beginning of 1951, cooperatives and state farms comprised about 22,3 percent of all arable land, and the number of cooperatives had increased to 3,279, representing a gain of about 10 percent in the year 1950, J The Communists apparently with to avoid a disruption in agricultural production at this time and for this reason have not attempted rapid collectivisation, b, Plc over rental Organizations as Instruments of Economic Control, Czechoslovak trade unions have been converted into semiofficial organs of the gc.veraament and the Co :arsonist Party and are used as instruments for control of labor, The unions generally are organized on an industrial basis, and the shop committee usually is the key instrument of control0 Shop com- mittees administer social benefits, make assignments to vacation resorts, register vacancies in housing and recommend tenants, impose pema1ties on workers as disciplinary measures, and support efforts to inoruase production*. They are able to manipulate the workers' jobs, pay, conditions of work, housing, and social benefits In order to force or otherwise "persuade" the workers to fol- low directives, 22 'aces are used in Czechoslovakia as another instrument of economic control, In order to prevent the accumulation of real estate, taxes on real estate are graduated from 5 percent of the first $4,500 valuation to 30 percent on a valuation over $400,000. The so-called turnover tax (a kind of sales tax) in used to help balance consumer purchasing power with the volume of consumer goods available and thereby to control inflation, Heavy taxes are levied on private farmers and private retailers as a means of "squeezing them out," 23 -Ad Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 . Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 3, Economic Strengths and Weaknesses Indicated by the Trends, ~ ra.+ rww~~wrr~.w+~wv+r. m.~...~.r- w w?a~rw~ The changes which have occurred in Czechoslovakia since the beginning of the Five Year Plan have included (a) an emphasis on heavy industry, (b) the development of local sources of supply of raw materials, and (c) an in- tegration of the economy with that of the USSR and the Soviet Bloc, 24 These changes have brought more women into industry, shifted labor from rura areas to urban centers, and increased the number of children and young people in the labor force,, 25 Increased emphasis on the use of local raw materials reflects the diffi- culties the Czechs are having in obtaining imports of raw materials, even Eruct the Satellites, 26 The fact that trade with the East cannot supply certain requirements is a serious limitation upon the ability of thb USSR to reduce Czechoslovakia's trade with the West, The uncertainty of supply of raw material? is a weakness of the Czechoslovak economy. Planning techniques in Czechoslovakia have undergone oonsiderable develop- ment since 1947,, and planning now is much more thorough than it was in the early days of Communist domination, The planning procedure is integrated with the statistics collection offices, and the planning office, staffed with competent personnel, has been given powers broad enough to accomplish its mission. 27 .MW Economic weaknesses are displayed by the changing emphasis placed upon various aspects of control, The shortages of raw materials and the efforts to increase the labor force are indicative of the probable failure to achieve maximum production, Peasant resistance, with its threat of a reduction in food deliveries, has caused a deceleration, probably only temporary, of the collectivization drive. Soviet controls over the economy, however, are largely consolidated and sell-established and should be considered adequate ultimately to achieve Soviet objectives, Soviet pressures,, thereforeyaro likely to in.. crease rather thsn diminish through 1952, 11 . Approved For Release 1999/09/27 : CIA-RDP79RO1012AO00900030002-6 ? ?Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET 110 Capacity of Human Resouro xs for F? onc DereIo231pt, Weir and postwar upheavals reduced Czechoslovakia's manpower and left it poorly distributed. Total employment in 1949 was 5.1 million persons, or 600s00C below the level of 1946. Aooording to the Five Year Plan, industrial employment is to increase by 900,000 in the period 1949-53, rising from 30 percent of total employment in 1949 to 45 percent in 1953. This increase will come from a 250,000 natursl increase in the population of working age; transfers of workers from agrioulm ture, handicrafts, and commerce; and recruitment of women and youth. The planned additions represent almost the maximum, although further mechanization of agrioulture is expected to create a surplus of labor which would be avail-. able to industryo The only other increase possible in labor output is that which an be achieved through overtime work. The Czechoslovak labor force is well-educated and highly skilled, and training programs to adapt these skills to key industries have been started. 1. Size and Distribution of the Labor Force. War losses and the deportations of 1944-47 reduced the population of Czechoslovakia by 2.4 million, causing not only an over-all labor short- age but also a severe maldistri ution of workers by area and by industry. Some 3.4 million Germans, expelled from border provinces, were replaced by 1,9 million Czech citizens from other provinces. ,2r/ The first Two Year plan (1947-48) was not successful in overcoming the latror shortage, because the state did not have complete control over the supply of labor. !/ Even though the Czech labor force has been supplemented on ocoasion by workers i`roia Ru- mania, Hungary, and the USSR, some 800,000 fewer.workors were employed in 1949 than in 1946. There is, therefore, virtually no unemployment. In 1949, total employment was about 5.1 million persons, composed of 2 million agricultural and 3,1 million nonagricultural workers. Czechoslovakia plans to add 600,000 workers to the nonagricultural sector between 1949 and 1953. Such an increase will necessitate a not reduction of 100,000 in the agricultural labor force, full utilization of the 250,000 natural increase in the population of working age, and an intensive recruitment of women. 32 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Estimated Occupational Distribution of Labor Force 1949-53 Thousands 1949 1950 1951 1952 1953 Agriculture 2,043 1 2,127 1 29050 y 20000 el 10930 y Nonagricultural. Workers and Employees Industry and Construction 19636 7/ 1,740 8 2,053 9 2,236 10 2,419 10/ Randiorafta 631 , 520 12 406 / 402 NF 398 Transport and Comenuuications 13 322 326 330 334 338 Conic eroe, Public Employment 600 583 a1 1 330 1 530 1 Total, 1onagrir cultural 3,089 15 30169 .J ! 5,519 /3 it , 5,132 5,296 5 6169 5,502 52618 . Rstimated on the basis of reduction planned to and of 1963, accelerated 1 year., Y Estimated on the basis of 1950 and decreases likely to result from ab- sorption of artisans by industry and construction. Residual within nongricul aural workers and employees. Estimated on the basis of increase to and of 1951, less increase in 1950, Interpolation between end of 1951 and and of 1953, The state plans? within the nonagricultural labor force, to transfer sane 3009000 workers frown handicrafts anc co erce to induatryo The n tuber of woven employed in industry increased from about 26 percent of total industrial employment in 1947 to 32 percent in 1951, 17 Further increases are being promoted by a large expansion of facilities for day care of working mothers' ohildrans Youths are forced into industry by limitations placed upon entrance to college, and others enter industry after completing advanced technical courses, 20 Level of Technical Training9 Skill,, and Efficiency. Czechoslovakia, which has one of the highest literacy rates in Europe -13- Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ,Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET and a long tradition of vocational training, is attempting to increase tech.. !ioa1 education. Enrollment in various educational institutions in 194849 was as follows: ?nursery, primary, and intermediate schools, 1,728,706; gym. nasia, 70,446; colleges, 59,000; advanced specialized schools, 7,110; teachers' :raining schools, 5,445; agricultural schools, 11,000; technical schools, 218,545; industrial schools, 28.440; men's vocational schools, 21,815; and cam- :,ercial schools, 26,1570 18 In the immediate postwar period, efficiency was lowered by the loss of skilled German labor and the replacement of nob.Commnists in key industrial positions. This loss has been largely overcome by apprentice training, by the regimentation of workers, and by inoreaaes'of work norms, and productivity In 1950 approximately equaled prewar levels. 18 80 Expansibility and Adaptabilit of the Labor Foroe. Czechoslovakia will encounter difficulty in attaining the increases in industrial manpower called for in the Five Year Plan. Without the rapid col- lectivization of agriculture, further expansion of the industrial labor force is not likely. The official work week is 48 hours? and although data, are not available to indicate the amount of overtime now worked, the cancellation of holidays and the lengthening of the work week would add from 8 to 10 per- cent to the man-days of labor per year0 Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 ? Approved For Release 1999/09/'CIA-RDP79R01012A000900030002-6 III" ~a ving and Workings Conditions SUMMaq The general living conditions of the Czechoslovak worker have improved over prewar levels, although periodic food and clothing shortages necessitate general rationing, and housing shortages have not been overcame, because in- dustrial construction has been given priority. The status of the middle class, including professionals; traders, and independent farmers, has deteri- orated under the Co iunist regime, Such social benefits as medical care,, old age pions, and paid vacations; which formerly were enjoyed only by the niddle and higher income groups,, have been extended to all workers and to peasants who have joined farm cooperatives y Full employment and the special privileges granted to workers have improved the economic position and the asocial status of Labor, Although the population is not subject to labor conscription, the obligation to work is generally accepted and enforced, T,ages, hours of work, and general working conditions are determined by the government. The functions of trade unions have been limited chiefly to increasing output and productivity norms and conducting a variety of educational, propaganda,, and social activities, The speed-cup methods modeled on Soviet techniqueb are causing discontent among the industrial workers and frequently result in low productivity and failure to reach the plan-nod goals of output. Recent efforts of high officials to restore morale among workers signify the govern- mentps awareness of the siituation, Discriminatory measures intended to spur the collectivization drive have improved the living standards of workers on state and collective farms whereas the position of the independent peasant has deteriorated. 1. glIaL Conditions,, n w.r~..,~.wn.rw Improvement in Czechoslovakians standard of living since 19147 has been slow because of reconstruction needs, a bad harvest in 1917-48, and social upheavals following the Communist coup in 1948, A large part of the country's economic effort in 1949 and 19x0 was concentrated on increasing the production of capital goods and military equipment at the expense of con- .=W goods. Shortages of con^umer goods have led to tightened controls and higb prices for the general public and to allowances or prioritico for shock- Rorkers ( tst&khanovites") and collective farmers.. . 15 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/0W27Zl`CIA-RDP79R01012A000900030002-6 The food supply in Czechoslovakia h;;s been rapidly improving be- cause of the successful harvests of 1948-49 and 1919-50, but deficiencies in bread grains have had to be covered by imports frou the USSR. Flour., bread, milk, sugar,, butter, eggs, and neat are rationed, but supplementary quantities of these products are available at high prices in the free markets. In 1939 and 1950.9 some staples were derationeds and their prices were re- duced, in some cases from 10 to 35 percent, and in the case of breads 25 per- cent. In December 1950, prices of bread and flour rose again, and on 1 March 1951 rationing of these items was reinstituted. Lqualitarian ration- ing was abandoned in January 1;19 in favor of a system rhich gave preference to workers aver nonworkers and to high-producing over lavaproducing workers Despite the rationing restrictions., the population receives sufficient food. Lost urban workers obtain food at reasonable prices at least once a bay from special canteens and lunchrooms at their places of erploymento Children in urban areas whose parents are employed also are provided with lunches at nominal cost. Such luxury foods as poultry, pastry, sweets, and candied. fruits., enjoyed in the prewar days not only by the propertied classes but also by raarq of the wor scrs., are again available but at such exorbitant prices that only the higher-income classes of officials and ' Stalch,.anovites" can afford then. Although the standard of living of these groups has risen above prewar levels, such Capitalist elements as professional men, trades- men, white collar corkers, independent farmers, and priests are able to buy only bare necessities; for which they must pay high prices. Goverment claims., however, state that average food consumption per capita is higher than in pre- war years. According to one such report, "In 1950 consumption of food and the other :industrial products considerably exceeded prewar consumption. V.hereas before the war working class families could not afford butter, its consumption has today become a matter of course and in 1950 rose from 3 kilograms to 4 *85 kilograms per person*" 2/ The sane source compared free.. uarket data and found meat sales 400 percent Higher., butter sales 68 percent higher, sugar sales 76 percent higher, and egg sales almost 500 percent higher In December 1950 than in December 19149., co Clothinga .L limited quantity of essential clothing and shoes is obtainable at low prices in the rationed market and at high prices in the free markets established in January 19149, Even the purchases in the free market are re- stract.ed., however, and cover only the minimum needs of the populations a 16 1;M Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ,Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET d0 Other Consumer Goods. Availability of consumer goods h s increased since 1950. Basic items are moderately priced, but the prices of less essential goods are ex- orbitant.* All luxury items are of domestic origin, but most of the output has been designated for export. The tiorkers, who have never used such articles, are now being promised thmi in the near future, provided they raise their production norr-s, but so far only a fer: "Stakhanovites" have been able to afford them. e. flour . Although an extensive construction progran has been inaugurates: in Czechoslovakia, housing construction has been slog because of shortages in building materials cnd because of priorities given to industrial construction. The present difficulty of the housing industry, rich has been under criticism whenever its output failed to meet planned targets, is a result of the short- ages of manpower and lack of mechanization. lJ Deliveries of construction machinery, expected from the USSR since 3:2407s, have not materialized- The housing shortage is especially acute in industrial centers There priorities in housing accommodations are given to essential and influential persons. Rents have remains under effective control, and recent rumors of general rent increases apparently were not substantiated. / Since industrial con- struction and cooperative housing have priority over private housing, shortages probably will continue through 1952* f o Health. .Health services have been nationalisou and are freely provided to the general population. Because of the wide coverage and the shortage of medical personnel.. however, the quality of the service is low, go Social V-elfare. Such social services as recreation, child care, and old age pensions are being extended to the Czechoslovak population on a much wider scale then they were under the previous regime. Over 19 percent of total state expendi- tures in 1951 are allocated to social welfare and health services. zee in 1950 pure sed 12,700 refriger_torc, 17,200 kitchen robots (an electric machine with maw attachments which does various household jobs), 2112,000 bicycles, -15,000 washing machines, 33,000 sewing machines, 29..300 vacuum cleaners, 15,000 electric ranges, and 2111 radios. 2/ Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 U 2a Working Conditions. Wages, hours, social benefits, and general working conditions are reguulated by the state,, Industry has been standardized on an 8-hour c;ay and a 48-hour week, but longer hours occasionally are worked to increase production. In many industries a three-shirt system keeps the plants in continuous operation. Unions have no bargaining power over wages, hours, and other conditions of employment but have advisory power over vurking conditions in individual inoustries. Trade unions and their committees and Communist Party trustees are authorized to carry out certain im-rrovemonts in sanitation and work loads in local plants and work shops and oversee the enforcement of regulations. A speed-up system emulating the Soviet "Stakhanovite" method and Soviet techniques for maintenance of discipline have been widely introduced. Wage payments in east instances are based on piece work.* Production norms are currently being revised to increase productivity and efficiency, but detailed information on these revisions is not yet available, Wage incentives currently used in Czechoslovakia include loyalty bonuses for higher output, and special Sunday shifts and overtime work. These are now to be supplemented, according to the Czechoslovak press, by better utilization of normal working hours, better organization of work, better utilization of machinery, proper use of two and three shifts, better coordination in the supply of rase materials pre- vention of~ hoarding, and alleviation of the manpower shortage. Accident rates are high, and safety provisions, particularly in the mining and transport industries, are inadequate. Not only industrial v+orkers, farmers, and government employees but also professional men such as lawyers and doctors are subject to strict control measures in the practice of their occupations. Their activities must be in line with the Communist ideology and code of law, and those wtho do not comply are purged or placed in compulsory labor camps for "reeducation n The state determines the fees of professional men and assigns clients to them.. Independent artisans and traders have been almost eliminates or absorbed by state enterprises,?/ and their economic position hcc been reduced to that of industrial wage earners or lower.2/ Farm workers on state and collective farr.o enjoy a more favorable position than they enjoyed before the war, because of social, health, and pension benefits arts shorter fours of work. Working conditions of the independent fanner, however, have deteriorated. Under govern- ment pressure fbr farm collectivization, he suffers from tax discrimination, heavy demands for deliveries, and w lack of essential social benefits. Data for various ca egories of workers are unavilable, but the average monthly wage of Czechoslovak workers in 1950, accordin;. to the government, was 4 .*340 crowns (386.00), havin. increased from 3.600 crowns (w72.00) in 1945. 1/ sEca r Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 -Approved For Release 1999/09/27CRECIIA-RDP79R01012A000900030002-6 SET 1V0 'orsi Trade and Finance,, Sums r Czechoslovakia in of key eoonomio importance to the Soviet Bloc, largely because of its advanced development and extensive oapaoittiy in engineering and heavy industry. The Soviet Union itself accounts for approximately one-quarter of all Czechoslovak trade, approximately $200 million a year of both imports and exports.. From 40 to 50 percent of Czechoslovak exports to the Soviet Union in 1949 and 1950 were finished industrial machine and metal products. On the other hand, Soviet exports to Czechoslovakia have been composed largely of raw materials, principally iron ore, cotton, and foodstuffs. Czechoslovakia also contributes to the economic war potential of the Soviet Bloc by shipping heavy industrial equipment and supplies to the other European Satellites. The ability of Czechoslovakia to contribute transportation equip. ment and other industrial products has been a major factor in current efforts to make the European Satellites a self-sufficient industrial area. Again, Czechoslovakia imports from the other Satellites largely rav materials, the p4' duotion of which does not require technical and industrial skills. Trade with Western Europe decreased in 1950 from its postwar high in 1949 and undoubtedly will continue to decrease in 1951 and 1952, Trade with the other European Satellites is expected to increaser and trade with the Soviet Union probably will increase slightly, Imports from other arena of the world probably will remain at approximately present levels because certain banjo raw materials which Czechoslovakia needs, such as jute, ootti, wools and same nonferrous metals, are not available within the Bloc. 10 a0oducti on. Cneo't1oslovakiaas prewar foreign trade was the most diversified of that of any Eastern European country, In 1937, Germany, the leading trading partner, accounted for only 15,6 percent of imports and 13.7 percent of exports. Next in importance was the LTS, supplying 10.2 percent of imports and receiving 9x3 percent of exports. Major Western European countries accounted for most of the balance, but non-European cameras, principally with India, Turkey, South Africa, Egypt, and Australia, was considerable. Moveover, trade with other Eastern European countries was important, particularly that with Rumania. ,which aocounted for 502 percent of total Czechoslovak foreign trade. Czechoa Slovak-Soviet trade was negligible, being only 1.4 percent of total imports and 0,8 percent of exports. -1191 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/?q 0OA-RDP79R01012A000900030002-6 The aonnpoaition of Czechoslovakia's foreign commerce in 1947 reflected prosperous economy based on the processing of raw materials into light manfactures for export, Principal imports were agricultural products, fibers and yarns, and minerals, followed by machinery and fuels. Finished to stiles, iron and steel ii nufacturoa, glassware, foodstuffs, machinery, and war mae. terialis were the major ex aorta, Effort surpluses were customary$ and the absence of foreign eoonamio domination allowed the Czechs much leeway in the conduct :)f foreign trade Relatively light war damage to Czechoslovakia's economic complex par? witted a comparatively rapid comeback of foreign trade, and, before the Co?? munist coup of February 1948, the Czechs were fairly successful in trading simultaneously with both the Fast and the West* The biggest handicaps, aside Prom supply and other difficulties common to all countries, were the loss off' skilled workers in the glass, jcwelxy, and other trades and the traditional ?.iependen^e on foreign transit facilities because of Czechoslovakia's inland geograph'.' o position. Business was carried on through nuunerous private traders and followed prewar patterns, except that agricultural imports were greater and exports scaaller tsar formerly as a result of deficient harvests, Sinoo 1948, Camnaunist polioiee have effected a complete reorientation of Czeuhoalov kia'S international trade. Trade with the Bloc now receives priority;, and exports to the West are tolerated only insofar as they are necessary to pay for essential purchases. The manufacture of light constmoer goods is being deemphasized as Czechoslovakia becomes the main supplies of industrial equipment among the European Satellites, In addition, trade has been initiated with Communist Chins, Czechoslovakia's foreign trade reached a postwar high in 1949. Total imports rose from. $754.3 Trillion in 1948 to $788 million in 1949, and exports from $753 million to $806.5 million, producing the first export surplus since 19466 The 1949 export target of $1,865 million, however, was missed by a considerable margin, mainly because of political difficulties with the West, implementation of Western export controls, and the doolining quality of Cseoho- slo$ak exports, Total trade with Western Europe declined in 1950, combined imports turd exports being $380 million as compared with $507 million in 1949, but the composition of trade continued to reflect some reliance on trade with non.Soviot Bloc countries. The most important commodities procured from not Bloc sou. ass are iron ore, cotton., wool, other textile fibers and yarns, speciaii:era industrial items, and nonferrous metals and products. The increasing importance of Czechoslovakia to the Bloc and its lessened reliance on the West are indicated by the trend of 1950 trade, approximately one.quaa er of which was with the USSR, one-quarter with the other European Satellites,, oneegtxarter with Western Europe, and one-quarter with the rest of the world. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET Isn of 822uir .ente. a. Overt Traded Czechoslovakia's principal import requirements are coal, iron ore, textile raw materials, pyrites, chemicals and pharmaceuticals, certain specialized industrial items,, nonferrous metals, petroleum products,, rubber, and foodstuffs. Some of these are available within the Soviet Bloc,, such as Polish coal, Soviet iron ore, East German chemicals and pharmaceuticals, East. German and Soviet specialized industrial items, Polish and Bulgarian zinc and lead.. Rttxan3an petroleum products, and Soviet and Balkan foodstuffs, Certain cainoditiee, however, must be procured outside the Bloc,. Ugh-grade iron ore is obtained from Sweden. Liariy of the textile raw mate. rial.s, hemp, flax, jute, ramie, and wool are acquired of necessity from non- Bl.oc sources. Pyrites is imported from Yugoslavia, and some chemicals and pharmaceuticals are procured from Western Europe,* Certain types of bearings, industrial diamonds, abrasives, and specialized machinery are available in neceess&r quantities only in the industrial sectors of Western Europe, whereas tin is available only from Western-controlled sources, Electrolytic copper oontinuall.y commands a high priority among Czechoslovak trading agents, and rubber must be'procured from Malaya or Indonesia, b, Clandestine Trade,** Czechoslovakia is the most active of all Soviet Bloc countries in the field of clandestine trade. As a result of its traditional7,y active inter- national commercial relations, Czechoslovakia has a wide network of trading agencies and a large group of trained personnel available for such activities. In spite of defections and the necessity of installing political arel.i,ables," the Czech traders are still the most active and most successful of all Soviet Bloc agents in the procurement of critical materials, many commodities and channels are,-used, Copper is transshipped through Belgium, and bearings Caine from Italy through Switzerland and Mustriao High- quality industrial goods from (lest Germany arrive through third countries or are smuggled across the border, Czechoslovakia engages in another type of clandestine activity of direct benefit to the war potential of the Soviet Union, In addition to a continuation, on a reduced scale, of its traditional arms export trade, Czecho- slovakia supplies arms to dissident groups (preferably Communist) throughout the world, thus furthering the aids of international Co=iniam as well as pro- viding hard currencies, Zile term :: extern Europe includes all. the oEEC countries and SpLin. Clandestine operations are defined here as procurement of etrate is natoria)i in violation or circumvention of ~;eatern export controls, ~21-90 SEMMT Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET 3, Trade with Non-Soviet Bloc Countries. Slightly leas than half of Czechoslovakia's trade is with non-Soviet Bloc countries, and this trade is divided almost equally between Western Europe and the rest of the world. AD &orts to Non-Soviet Bloc Co~triea. (1) ti?leatera Europe, Czechoslovak exports to Western Europe in 1949 were a65 million but decreased 22 percent in 1950 to approximately ,#206 million. Allowances for the price increases which took place in the latter half of 1930 accentuate this decline in terms of volume. In spite of this drop, Czechoslovakia accrued an export surplus of approximately 430 million,, about ]0 million more than its export surplus in 1949, The largest export quantities in 1950 went to vilest Germany, the UK, the Netherlands, Switzerland, Sweden, Austria, Italy, Turkey, France, and the Belgium-Luxembourg customs union. (2) Other Area. Czechoslovak exports to other areas of the world are similar to those sent to Western Europe and include textiles, steel products, transporta- tion equip, industrial equipment and supplies, sugars hops, and malt. In addition, arms are exported to these areas. In spite of the official Soviet Orbit blockade, Czechoslovakia still trades with Yugoslavia through Austrian and Swiss intermediaries. It appears that metallurgical coke is the principal, if not the sole, export from Czechoslovakia to Yugoslavia* b. apaarta ft M Non-Soviet Bloc Countries. (1) Western AMM. The largest single category of imports, by value, from Western Europe is machinery, particularly machine tools and their components, The second largest category is wool and other animal hairs, followed by iron and steel manufactures and chemicals and pharmaceuticals. In 1949 these four categories accounted for about 30 percent of total Czechoslovak imports fray Western Europe. The importance of imports from Western Europe, however, is nct apparent solely from general cav odity groupings or total valves, In- dustrial diamonds, electrolytic copper, tin, bearings, and certain specialised types of industrial machinery have a strategic importance beyond that reflected in the trade statistics. The relative importance of Czechoslovakia's trading partners is the same in both Imports and exports, but trade is not bilaterally balanced in all cases. For instance, although Czechoslovakia exported 246 million worth of goods to the UK in 1950, it imported only 47,3.9 million worth. In Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SEC: s trade with the Netherlands, an export surplus of i million was realized, and a similar situation existed in the case of ;;eat Germany. Imports from -lestern Europe in 1950 declined more than 30 per cerxt. from 1949 levels: The importance of this reduction is not in the de- creased total figures but in the eategorles In which the decline took place. imports of chemical and pharmaceuticals dropped noticeably, as did shipments of mineral fuels, minerals, and ores, These particular items are not generally available from other non-Bloc sources,, It is noteworthy that sirrei:ar dope did not take place in imports of metals or of wool and other ,animal. hairs. (2) Other Areas, Czechoslovak imports from non-European countries consist almost exclusively of raw materials, such as cotton from Egypts rubber and tin from Malaya and Indonesia, jute from Pakistan and India, and hides, leather, and quebracho from Argentina and Brazil. The particular raw materials which Czechoslovakia needs from these countries apparently cannot readily be supplied from Soviet Bloc sources in the near future, This trade will therefore prob- ably continue at approximately its present level through 1952, 4, Trada with Soviet Bloc Countries. Trade with Soviet Bloc countries constitutes a little more than half of total Czechoslovak trade, Approximately half of this is with the Soviet union and the other half with the Boropean Satellites. Trade with China is a srua32 percentage of the total, a, 'Trade with the USSR. I (1) Exports to the -W-Z4 The most important exports from Czechoslovakia to the USSR are locomotives, light and heavy dump can, and other railway equipment; electric motors; heavy machinery; other metal products; textiles; shoes; suigar; and malt'. Ueta corking. industries provided in 1949 about 25 percent of total Czechoslovak exports to the USSFL, and textiles, shoes, sugar, and malt accounted for most of the balance. In 1950, however, as a result of changing emphasis on trade within the Bloc, it is probable that more than half of the total was composed of metal products, Textiles, shoes, sugar, and malt con,- t_inued to provide moat of the reat of Czechoslovak exports,, The armament in'. duatry is producing weapons and components for the USSR, ac* of which are now being manufactured in conformance with standardized Soviet specifications .. 23 - T Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 "Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SWIREM (2) I acme from the UM. Czechoslovak imports from the USSR are composed primarily of -oodatuffg, raw materials, and semifinished products, Capital equipment and finished industrial products account for probably less than 5 percent of the total. J The primary commodities received from the USSR by CsechoslovakiA are iron ore, manganese, copper, nickel, lead, idlest, rye, corn, and cotton. The lore grade of the iron ore and the cotton, however., have occasioned soma .difficulties in Czechoslovak industry, reducing efficiency and, in the case of cotton, lowering the quality of products, The reintroduction of ratios ing of bread and bread flours in 1951 indicates that the wheat imported from the USSR probably was stockpiled. Satellits. bo Trade with Othx r.. .. r .. ~r~-.rr~ Trade with other Soviet Bloc countries, except with East Germargr, follows the general pattern of all Czechoslovak trade -- the exchange of finished industrial prodnats for semifinished goods, raw materials, and foodstuffs. (1) Eporta to Other ?jtenites. Czechoslovak exports to Albania, excluding war materiel, are approximately $3 million, a year, a little higher than provided in the trade agreements. ./ The most important exports to Albania are textiles and trucks, which together account for about one-third of the total. These and other goods are seat primarily as direct support for the weak Albanian econocW. Similtaneously with the signing of the 1949 trade agreement, Czechoslovakia extended a 82.7 million credit to Albania to be repaid in goods, starting in 1951. Czechoslovak exports to Bulgaria jJ are between $10 and $15 m4 11on a year. Road materials, machinery (pririai,81 y agricultural), instrueaents, chemicals, and hope repareseat about 7; percent of the total. Czechoslovak exports to China 5/ appear to be designed primarily to support the Chinese war potential rather than to aid the industt'3al develop,. memo of the country. Skoda machine guns, antitank gang, artillery, and aminwd tion were shipped to China in 1950 in exchange for soybeans, soybean products, and wool. In 1951, Czechoslovakia is c omitted to deliver 800 trucks, 720 buses, and 3,000 motorcycles to China, and it has been reported that the USSR is ordering from Czechoslovakia large quantities of railroad equipment for China. Czechoslovak exports to East GexmatW J were approximately $15 million in 1949 and 327 million in 1950. Because of the Berlin blockade and counterb:Locksdeend the problems of economic rehabilitation which followed the postwar plunder by the USSR, East Germany in 1948 and 1949 incurred a $2.9 million import surplus with Czechoslovakia. Czechoslovak exports to East Germargr conaist of foundry coke, tires, rolled metal products, textiles and 24 to Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 leather goods, and production equipment. In early 1951, East Germany ordered from Czechoslovakia two three-high rolling mills and one seamless tube rolling mill, valued at a total of $2,8 million. Czechoslovak exports to Hungary 7/ are composed of timber and timber products, metallurgical coke, metal products, and chemicals, Exports to Poland 8 f include mining equipment, metal products, metallurgical coke., agricultuxQ machinery, tires and tubes., technical equipments radio receivers, footwear, and textiles, These exports in 1949 totaled approximately $45 million, and the Communists claim an increase of 25 percent in 1950, Exports to Ruaania,21 according to the 1950 trade agreement,, were to consist of general industrial equipment, metal products, chemicals, and vehicles,, (2) Ia orta from Other Satellites, The decrease in imports of certain commodities from Western Europe is being offset by production in or by procurement through other Bloc countries, Imports from East Germany,W are therefore of great and increaa ing importance to the successful reorientation of Czechoslovak trade, Machin- cry, s~ufacturee, chemicals and pharmaceuticals, fine instruments, and optical equipment, all of high quality, are available from East Germany. As the industrial expansion of East Germany progresses, Czechoslovakia will be able to acquire many more of the goods which it now can obtain only from Western Europe, It is apparent that a large measure of success has already been achieved in this program. Czechoslovak imports from Poland / are of considerable impor- tance to the economy. In 1950 the Poles agreed to deliver 3.9 million metric tons of coal, and this goal probably was met. Czechoslovakia has indigenous coal resources which are suited to the production of metallurgical coke but does not have sufficient coal for general industrial use. These imports, therefore, are of great importance to Czechoslovak industry, In addition, Poland exports to Czechoslovakia zinc, chemicals, agricultural products, and machinery. Czechoslovak imports from Poland in 1949 totaled ;AO million,, and the Co n rsi$ts claim that there was an increase of approximately 25 percent in 1950. 5, Trends - InAlud-IM dications of Mobilization for Vdaro A continued increase in Czechoslovak trade with Soviet Bloc countries, a continued decrease in trade with Western, European countries, and trade with other areas of the world at approximately present levels can be expected in 1951 and 1952. Increased exports of heavy industrial equipment and supplies wif result from the Czechoslovak Five Year Plan (1949-53), but increased im- ports of industrial rate materi.ls and supplies and specialized equipment will. SECRET Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 =Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SDCR1T be necessary to carry out this program, Czechoslovakia and Fast Germany wilt .supply nruch of the industrial equipnent needed in the effort to mdse the Soviet Bloc a self-eufficient industrial caaplex q nsion of the at nt and heavy machine building industries, which represent a direct Czeohoalovak contribution to the economic potential for spar of the Soviet Union, will continue. 26 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Agriculture. MEM Agriculture in Czechoslovakia is conducted largely by peasant farmers engaged in the production of grain, livestock, and sugar'. in the postwar period, grain production has fallen off, meat production has increased enough to provide a slight surplus in 1950, and sugar production has in- creased substantially, resulting in a sizable export surplus. The cotton textile industry is heavily dependent on imports of rar materials from the USSR, which closely allocates the supply and distribution of textiles within the Bloc. The woolen textile industry depends on non-Um sources for 95 percent of its requirements. Czechoslovak industry has the capacity and skills to add materially to the-textile production of the Soviet Bloc. Collectivization of agriculture has made relatively little progress in Czechoslovakia and thus has had little effect on production. 1. (bra 3. a. Production. Grain and grain products constitute the most important agricultural commodities of Czechoslovakia,* 60 percent of the arable lend being planed to grain. l heat and rye are used chiefly for h an consumption, while coarse grains - corn (Mize),, barley, and oats -- are used for livestock feeding. The prewar consumption of cereal products in Czechoslovakia constituted 41,9 percent of the caloric value of all foods consumed. This ratio was less than those in other Eastern European countries, however, but there was greater con- sumption of high protein foods in Czechoslovakia. Postwar trends indicate a lowering of the standard of living in respect to food, with less high protein food now available-and more cereal grains consumed than in prewar years. Production of grain in Czechoslovakia maintained a relatively stable average in prewar years, and the country was approximately 95 percent self- sufficient in food and feed requirements. Postwar planning has altered this position by decreasing cereal production and increasing coarse grain produces ,ion, a policy which has increased the need for isaports of food grains and grain products, chiefly from the USSR. $ Grain unless otherwise specified includes wheat, rye, barley, Dais, corn (tee), and mealln, a minor grain. SIORET Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ,Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 A ricultural, methods are much further advanced in Czechoslovakia than in the other Satellites,, Planning, crop rotations, increased use of fertilizers, and other modern agricultural techniques enable the Czechs to obtain crop yields higher than in any other Bloc country. The most inten- sive cultivation and crops of the highest yields are found in :3oravia and Bohemia. :ilovakia is less important as a gain-producing area because of its geographical position and lower level of agricultural developnbent, Grain production In 1950 is esticaatod at 4.7 million metric tons as compared with a prewar (1935-39) average production of 5,7 million metric tons'. The decrease results from planned reductions in the sown area of grains and smaller yields per hoctare. Latest Annual Estimates of Grain Production 1948-50 Thousand Metric Tons Year Estimate Probable Range Variation of Estimate 1948 4,554 4,437 to 4,671 1949 5,122 4,990 to 5,253 :.950 4,684 4,564 to 4,804 b. Probable Production. Pressure has been brought to bear on the Czechoslovak Government by the USSR to increase wheat production at the expense of feed grains and forage crops, and slight increases in total grain production may result, as indicated below, Estimated Grain Production 1951-52 oueand Metric Tons Year to Probable Range of Variation ofte 1951 4,763 4,641 to 4,9885 1952 4,812 4,688 to 4,935 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 a'OR T c. Doraastic Rbauirements Because of population increases, domestic requirements of grain have been gradually rising in the past few years rid will continue to rise through 19530 Estimated Domestic Recjuirementa of Grain x.948-53 Thousand Metric Tons Year Estimate _ Probable Rangef'' Variation of Estimate 1948-49 408o 4,828 to 4,933 1949-50 5,179 5,118 to 5,241) 1950--51 5,315 5,260 to 5,368 1,51?52 5,384 5,319 to 5,449 1952-53 5,437 5,372 to 5,502 d. Suratus or Deficit. Czechoslovakia has always had a grain deficit. Although before the war some grain was exported (wheat, barley, and oats), rye, corn (maize), and rice had to be imported. Not imports averaged 134,000 metric tons a year. Under the Communist regime, grain deficits have fluctuated from year to year with variations in production but, with the exception of the good crop year of 1949, have exceeded the prewar level as indicated bel. Estimated Deficit of Grain (Domestic Production) 1948.53 Thousand Metric Tons Y Estimate Probable Range of Variation of Estimate 1948-49 .326 262 to 391 1949-50 57 13 to 128 1950-51 631 564 to 696 1951-52 621. 564 to 678 1952-53 625 567 to 684 SEGHW Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 0, .CtoC j.et3 , Followin ; the poor crop year of 1947, Czechoslovakia imported 940,000 metric tons of grain, which, together with domestic productio4 more than covered requir nta, so that 105,000 metric tons were carried over on 31 July 194into the consumption year 194&.49, The total of this earry6over plus imports in 1948.49 is computed to have been 625,000 metric tons, of which 50,000 tons were reexported. The deficit in domestic production in 1948.9 was 326,000 tons, 3nddiiccat:uig a stockpile of 249,000 tons on 31 July 1949. Although 1949 was a good crop year, Czechoslovakia imported 550,000 metric tons, of which about 75,000 tons were reexported, The deficit in production in 1949-50 was only 57,000 tons, indicating an addition to stores of 418,000 tons and a stockpile on 31 July 1950 of 667,000 torso The harvest of 1950 was poor, the deficit being 631,000 metric tone, and imports, chiefly from the USSR, were expected to reach 605,000 toned Assuming reexports of not more than 60,000 metric tones the stockpile on 31 July 1951 may be about 581,000 toned Estimated Stockpiles of Grain 1950-51 Thousand Metric Tons LOU Estimate Prob4ble Range of Variation of ,mate 31 July 1950 667A/ 531 to 601 31 July 1951 581 580 to 782 J Six weeks supp ys Five weeks' supply. This stockpile of 581,000 metric tons will not cover the estimated deficit for the year 1951..52, and, unless there are substantial shipments of grain fran the USSR or the other Satallitea. Cueehoelovakia will enter the pup 195253 with only the usual turnover eupp,a until the new crop enters dis- tribution channels, In this case, some 625,000 metric tone will have to be imported, or grain consumption will have to be substantially reduced, fo Trendn Includina Indications of Mobilization for'llar, The USSR is reported to have brought pressure on the Czechoslovak government to increaoe wheat acreage at the expense of feed grains and forage crops in order to relieve the need for bread-grain imports, There is no indi- cation of mobilization for mar in grain production, -30- Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 2,. Meat a, Froduetiions By 1948, meat production had dropped to 69 percent of the prewar level in Czechoslovakia, Importation of 30,000 metric tarns in 1943-49 brought meat availability up to 73 percent of the prewar average, and these supplies.. together with a postwar reduction of 14 percent in population, brought per capita availability in 1948-49 to 30 kilograms, or approximately equal to prewar levels. Meat production in 1949.-50 increased 7.3 percent over the output in 194.49. If, as is assumed, the increase in production was accompanied by a 2,5 percent increase in per capita consumption, import requirements for this period were 19,000 metric tons. In 1950..51, meat production is estimated to have increased to 411,000 metric tons,, or 83 percent of the prewar level. It is assumed that per capita consumption increased 2 percent and the population increased 1.1 percent, in. dicatinu total requirements of 400,000 metric tons and a small surplus of 11,0(0 tons.* Latest Annual 1+lstimmatee of Meat Production 1.948-30 Thousand Metric Tons Year Estimate Probably Range of Variation of Estimate 1948 343 322 to 353 1949 368 346 to 379 1950 411 386 to 423 b. Probable Productions. Available information indicates that the USSR will not supplyl Czecho. Slovakia with feed grains to maintain its high potential for meat production. The USSR has, in fact, urged a reduction in acreages that are seeded to feed grins and forage crops, It is therefore anticipated that ,neat production will be sauced both in 195152 and 1952-53 by not lass than 2 percent each year, * Czechoalovak: a in 1950-51 produced a surplus of meat for the r rat tine .in decades. Czechoslovak guverrvuent reports on livestock numbers, howo',or, in- dicate a meat surplus for 1950-51 that is unrealistic. Approved For Release 1999/6W- CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Estimated Lisat Production 1951-52 Tone Thous n4 1et? Year Estimate ?_ Probable Range of Variation of Estimate 1951 403 379 to 43.5 1952 395 371 to 107 c. Danest3c Rec~uiraiuents. in 1.948-49, meat requirements, estimated on domestic production of 343,0 metric tons plus net imports of 30,000 tons, were 373,000 tons., or .30 kilograms per capita. In succeeding years the per capita availability of meat for consumption has been assumed to fluctuate slight3y, in accordance with corresponding increases or decreases in production. It is estimated that reductions in per capita supply will offset population increases and leave total, requirements in 195253 unchanged from the 1931-52 amount. Estimated Domestic Requirements of Meat 1948-53 Thousand Metric Tons Year Estimate Probable Range of variation of F..atimate 194849 373 352 to 383 1950-51 387 369 to 398 1951.52 400 381 to 411 1952-53 400 381 to 411 do Stockpiles. Czechoslovakia is norma3ly a meat deficit country. There was a ==U ssirplus of from 6,000 to 12,000 metric tons in 19511, which is only a carry. over stock. Projected estimates for 1953.52 and 1952-53 indicate that Cz,echo. Slovakia'a meat supply will be even less. 32 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 e~ surplus or Deficit, Czechoslovakia had a alight meat surplus in 1950-51 and may be margin- ally self-sufficient in 1951--52. It is probable, however, that in 1952-53 the meat supply position will again. became a deficits It should be noted that, although Czechoslovakia consistently exports processed livestock producte, the country has, with the exception of 1950-.51: been a net importer of meat. Estimated Surplus or Deficit of Meat (Domestic Production) 1 -53 S'ar' 1u Probable Range of Variation of Estimate , . :.948.49 30 0 1549-50 19 19 to 23 1950'-51 11 6to32 1951.52 2to4 1952-53 4to10 ~-ctuml. imports? . Trends -- Including Indications of Mobilization for ;ar, !r I-. r- ^ P From 1948 to the beginning of 1950 there was an upward trend each year in nnnbera of livestock and in the meat production potential, In 1951 and 1952 the trend will be downward, There are no indications of mobilization for war iu meat production and distribution, 3. s aro a. Pao Domestic sugar production in the prewar years provided Czechoslovakia with an export surplus and permitted a consumption level equal to that of the Western European countries. Production fluctuated in the period 194-+.+47 as a result of economic dislocations caused by the war and by a severe drought in 11147, It was not until 1950 that prewar production levels were regained, but in the interim period rationing apparently became permanent, .33-- SECRET Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Latest Annual Estimates of Sugar Production (Raw Value) 19150 Thousand MetrU Toffs to Ed LM Probable Range of Variation of E ti mate H 1948 634 570 to 640 1949 626 560 to 635 1950 700 630 to 750 Probable Production. Considering projected aims and assuming normal agricultural conditions,, future sugar production is estimated as foU vat Estimated Sugar Production (Raw Value) 1951-52 Thousand Metric Tons Year Est t Probable Range o Variation of F?atimate 1951 754 670 to 800 1952 784 705 to 820 Production estimates for these years indicate an output above the prewar level. c.Dome t I e uireMente. Rationing of sugar has been in effect since the end of the war,, and there are no indications of its impending removal in 1951. Estimates of requirements are based on a per capita norm ranging from 17 to 19 kilogratms. (rant value) and an additional 80,000 to 95,000 metric tons which are used industrially by the food,, confectionery,, and distilling industries. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Estimated Doaestic Requirements of Sugar (Raw Value) 1948-53 Tho Metric ona Year Tstima a Probable Range of Variation of Est1aate 1948-49 342 307 to 376 1949-50 348 313 to 382 1950-51 351 315 to 386 1951-52 355 319 to 390 1952-53 358 322 to 393 These estimates are based on the asaugption that rationing will continue through 1952, thus preventing consumption at higher, prewar levels. d, Stoolcpiles. Stocks of sugar will probably increase, and it is estimated that a stockpile of 90,000 metric tons will be available by the end of the 1950-A consumption year. This estimate assumes that 1 mcnthos supply has been set aside each year since 1948. A similar proportional increase is expected in 19520 Estimated Stockpiles of Sugar (Rae Value) 1950-51 and 1952-53 Thousand Metric Torus Estimate Probable Range Variation of Estimate 1950-51 90 1952-53 150 3,35 to 165 e0 .:s+:1 . or 2a wit, Czechoslovakia's present sugar surplus is a result of reduced consumypm tion, If rationing continues at the present rate and production is increased, the available surplus by the and of 1952 will add measurably to the sugar stocks of the Soviet Bloc, -35- SECiTET Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Estimated Surplus of Sugar (Domestic Production - Ran Value) 1951.52 XM Est at_e .Probable Range of Variation of Mimate 1951 399 357 to 438 1952 426 383 to 468 In the consumption years 1948-49 and 1949-50, Czechoslovakia exported appraximatelq 460,000 metric tons of sugars, of which 40 percent went to the Soviet Union. There is every indication that even larger supplies will be shipped to the USSR and the Satellites in 1951 and 1952, f. Trends -- jMlugAag Ind atio of iniiation for War. Trends of production and planning reveal the importance placed on self- sufficiency in sugar production by the Satellites and the USSR. Long-grange planning may. include a higher level of consumption, but for the present the primary aim is the accumulation of stocks that might be required in the event of war, 4. Cotton. aQ P} dize._. Czechoslovakia is a major producer of cotton textiles but does not grow cotton. All raw cotton needed for processing must be imported. From 1934 to 1938, Czechoslovakia annually imported an average of 83,000 metric tons of ginned cotton, 60 percent of it from the US, and exported 22,390 metric tona of yarn and finished cotton textile products. In the postwar period, t1S imports hav. steadily declined, and greater reliance has been placed on the USSR, Bar 1949, US imports represented only 20 percent of the total volume, dropping to lose than 2 percent in 1950, whereas the USSR supplied 45 percent in 1949 and 55 percent in 1950Q The effect of decreased US supplies in the postwar years has been apparent in the failure of the Czechoslovak cotton textile industry to attain prewar production levels and in the corresponding decline in the volume of textile exports. b, Domestic Reguiryjento. For capita consumption of cotton textiles is catch higher in Czecho- slovakia than in other Soviet Bloc countries because of the advanced productive capacities of the country and the greater availability of imported raw materials. .4 36- Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 -Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Estimated Dt r:eatic Requi'e ments in Tema of Ginned Cotton 191+5-53 Metric Tons X, Fate Probable age L n g to 1949 35,412 31,000 to 39,E 194950 47,774 41,000 to 52,000 1950-51 J 498705 44,000 to 54,000 1951-52 W 500003 45,000 to 55,000 1.952-53 50,560 43,500 to 55,5OO Based on reported per capita corsumption? Projections adjusted for population changes only. Stock ].ee. Under present arrangements Czechoslovakia has little opportunity to accr .ate stockpiles of ginned cotton or textile fabrics. Domestic consump- tion uses 75 percent of the present volume of import., and the surplus of pro essed material is either exported under existing trade commit me or shipped to the U& under established processing agreements. in view of the present world shortage of cotton and the expected heavy demand by other nations in the next 12 months, the possibility of buil& ing Up stook. is remote, dG Trends - kc_IgALng Indications of Mobilization for "Jar, The Five Year Plan limite Czechoslovak textile production in favor of heavy Industrial production, although the textile industry currently is pro- ducing at much less than capacity. Domestic requirements can be met by working a single 1C hour shun. If raw materials were available, Czechoeloraki a l s out- put at full-capacsty operations could contrUbutc materially to the textile re r.4irement4 of the US3l for mobilization. r. *lool prod uuction in Czechoslovakia is walla and present. erti=tee indir. cat* that the total. annual wool clip does not supply more than 5 percent of 37 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 do stir requirecentso Postwar efforts have been made to increase the numbers of the dosneatic herds., and a moderate measure of improvement has been noted in 1950 estimates, The results!, however, do not acid significant],y to total domestic supplies,. Latest Ann al Estimates of Wool Production (Clown Banjo) 3-950 ---lietric Tans year Esc Probable Range of Variation of Estimate 1948 581 520 to 630 194.9 611 540 to 660 1950 633 560 to 680 b.,, Probable Production The 1950 estimate probably represents the postwar peak in production. Soviet pressure on the Czechoslovak government to decrease acreages of food and forage crops in favor of expansion of wheat acreage probably will reduce .,iveatock numbers. If the marginal lands in the Sudeten area' nor used for sheep grazing are returned to crop production, the tu=ber of sheep will be turther reduced The reduction in wool production probably will not be less than 2 percent in each of the years 1951 and 1952; Estimated Wool Production 1951-52 etr.~* 2onn Estimate Probable F.anga of Variation of Estimate 195. 620 550 to 670 1?52 608 540 to 660 0, Domestic $ ts, Domestic requirements of wool from 1948 to 1950 averaged 10,157 anet? ao tuna a year. Computed or. a per capita basis, this figure is much higher that -2verage3 of other Soviet Bloc countries,, It is assumed for the projection of Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Aiture requ3 reneflt,3 that no t.*rther increases will be possible, Estimates are adjusted for population changes only, Itimated Domestic 1 equiremenbs of Wool 191,&52 Metric Toss Year Wtinate Probable Range of yari ati~on of i&et1mates 1948 10,290 9,200 to 11,300 1949 109364 9,300 to U,400 1951 30,418 9,400 to 11:500 195-1 10,516 9,500 to 11,600 1952 30,633 9,600 to 119700 Present facilities are capable of processing dowestic requirements of woolen yarn by working a single 10-hour shift o A deficiency of combing equip- ment for waste yarns, however, necessitates Imports of wool tops in addition to grease and scoured wool. d. a2ftil", There is no evidence of stockpiling of wool. Although a credit agreo- ment for the purchase of wool was made with the UK in 1949, the quantity of wool supplied by the UK and the British Dominions since that time has not zlaen appreciably over 1948 balsa ea $u, rD1u jr Deficit. With requirements rising and domestic production falling, Czechoslovakia is e< ailed to have increasing deficits of .wool. The estimated deficits for 1951 and 1952 are about 109000 metric tons each. Since 95 percent of require- ments mast be net with imported supplies.. Czechoslovakia is highly vulnerable to the effects of a strict3j enforced embargo on wool. f o Trends - bvbdin Indications of obi lization for War, According to the Five Year Plan, production of textiles in Czeecho- elovakla Is to be reduced in favor of heavy Industry. This action has been parts ally motivated by the world shortage of textile raw materials,, which has aggravated the difficulties of obtaining supplies from outside the Soviet Bloc. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 There are indications of a close connection with the Soviet Union in processixag agreements through which the Czechoslovak textile mi31 are being utilized to the adv& stage of the USSR. It is impossible to judge the went to which this arrange&.errt has conU?ibuted to Soviet military stocks, but if raw materials wore supplied in volume and the textile industry were to operate on a 24-hour ba is, a sizable contribution could quickly be made to the Soviet war potential, 6. Cala.+"ti.^~i taation6 The Czechoslovak government has sbcceederi, as of 1 March 1951, in orrganirag tbo it 3,300 so-called 1t nai fled f'axmera a cooperatives," in which tilacge is carried on cooperatively while the tittle to the land remain* in the bands of individual households. About 4,000 other farmer organizations purchase and use farm machinery cooperatively, Faxmer resistance indicates that the goverrv- man , probably will not attempt to establish collective fare of the Soviet . o,,; ho type for some years., although plans ode for the eventual social t.> r ,t ion of agriculture. 40 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/:x&& A-RDP79RO1012A000900030002-6 Rio Industrial Cgpacit and Levels of Production. Aa Ferrous Ustalsc The Czechoslovak iron and steel industry is highly developed, and production is larger than in any other Satellite country. Although the country has large reserves of metallurgical coking coal of satisfactory quality and ,of a law-grade iron ore, the iron and steel industry is dependent largely upon imports for high-grade iron ore, iron and steel scrap, and most of the ferro~- alloys, The new economic plan announced in 1918 emphasized the development of heavy industry in Czechoslovakia, Ferrous Metals Production Targets 19119-53 Thousand Metric Tons COQUOdiu 949 L9P. 1 1952 1953 Metallurgical Coke a 'J 2,08? 2,W 2,248 2,520 . 2 860 Iron ore (30-35% Fe Manganese Ore 1.,355 176 4370 83 1,360 201 1:370 245 , 1,265 Pig iron 1., 865 1,890 1*905 2 8 360 2,725 Raw Steel 2,650 2,680 2,750 3,160 3,550 Rolled Products 1,900 1, 920 1,960 2,270 2.,550 For domestic industry only; exports excluded, To accomplish these goals, large sues of money have been budgeted for investment in the iron and steel industry. New coke ovens to be constructed at Kunciae are to have an annual capacity of 570 000 metric tons, and others at an unnamed foundry are to have a capacity of 20,000 tons. Exploration for new and richer deposits of iron are has begun, further exploitation of existing mines is under way, attempts are being made to procure modern mining equipment, and modern methods of mining are being introduced, 1. Production, Production is estimated as follows: 41 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 `M;-,,: :al btealwgio?a woke a L= Orr? (x)5% Fe), Pig xrov Raw .a' ea Pro&wts e o~ ~ .fit ) UU, ", . , Of ;z J1 q L%tty w?. 1s in wag i?~;75O 2 1,475 1 *940 tuattou hau fail c to writ p W, targets,, and I ~ks b n I the Plan g 1 2 e t Thea e2.~c-y "Ad h Oz ~: tom i xi and ~? ].. ~stry in 195 be est :+:tedt. but r rz action affbi t n; m Pt ,ated P b tio 0.t s may Meta .r 1:952 3.99 an Ne uurgic Coke .1roit ore Cw~-n% To), ) less ore Pig Raw b3te1 R031t4 Prodacta .12AICL. AM .at Nn Ae k000 3e16O to O am"16 metal om 9tq X ;t{ requi emex to for he Ima ai i at ;t. j~tduatiT are esi.m taat. as : .: o rz3 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release I 999/09/ZL t A-RDP79R01012A000900030002-6 Estimated Dwwatic Requirements of Ferrous Metals 1949-5o Coke ustallurgical Iron and St I1 ?errroaaloy Met Manganese Chromium Molybdenum Tungsten Vanadium Nickel Pig Iron Raw Steel Rolled Products Metri.a Tons 1,850,000 29050,000 308008000 4,000,000 1,400,000 1,600,000 100,000 2O?,500 N0A0 N0Ao 995 1' 60 . 66 75 1,400 19500 N.Ao NeAo N.Ao !/ in terms of metal content, NOA. N0Ae In negotiating the 1949 Sredish-Czechoslovak trade agreement, Sweden refused to accede to Czechoslovak demands for l03 million metric tons of are but finally agreed to ship 885,000 tons of ore during the period of the agreement. To compensate for the reduction in imports from Sweden and for lose of 80,000 tons of ore ,rhi.ch Yugoslavia, before the Tito-Coma nform break, had agreed to deliver, the USSR agreed to send Czechoslovakia le2 million metric tons of iron ore, a considerable increase over the 400,000 tons shipped in 19480 The USSR thus, for the first time in history, has becoyme Czechoelovakiaas chief source of iron ore imports, In 1950# Czechoslovakia received lea million tons of Soviet ore and 920,000 tons of high-grade Swedish ore, Swedish shipments for 1951 have been set at 750,000 tons, 4, St so There are no stockpiles of raw materiala or of iron and steel products in Czechoslovakia, 5o Sub 11u8 or Deficit, Although the iron and steel industry of Czechoslovakia is heavily dependent upon imports of raw materials, the production of semifinished and finished steel mill products represents an important contribution to the industrial potential of the Soviet Bloco A portion of this output is exported, chiefly to other Satellite countries. 6o Internal Limitations, Throughout the Czechoslovak iron and steel industry there is a chronic ahortage of labor and of managerial and technical personnel. Absenteeism runs 43 Approved For Release 1999/09/2A-RDP79R01012A000900030002-6 'Approved For Release .1999/09) j.clA-RDP79R01012A000900030002-6 high,, equipment is worn and obsolescent,, and modern production methods are urgently me dedo Over a long period of years until 1949, Sweden was Czechoslovakia's principal source of high-gaude iron oreo Czechoslovak blast furnaces orig - nall,r were designed and constructed to use the high-grads Swedish ores in raixttrre .th the low -Wade area available domestically and procured from' other foreign sources, and !.he use of a high proportion of Soviet ore now pressnt8 a serious problem to the.Caechoslovak Winistry of Heavy Industryo This ore Faust be sintered,, or agglomerated, before it can be used in the bias: f'urnaceef rand, to accomplish this, more sintering equipment must be can- strur tda Furthermore, the blast furnaces will have to be rebuilt in order to a ke the necessary changes in furnace linings and to permit the introduc- tion of the larger amounts of omen required in processing the larger prop- portion of Soviet iron ore* The Czechoslovak iron and steel industry is uiiabL!.e to make the increased investmsnts required for reconstruction and expansion or to disrupt production long enough to make such oonversionso As a result, pig iron production has not met planned targetso The procurement of iron and steel scrap also is a serious problem, since scrap is in short supply not only in the r"iioc but throughout the world- If the TTSSR desires to maintain a flow of steel products from Czechoslovakian some provision will have to be made to supply sufficient quantities of scrap for the Czechoslovak open-hearth furnaeese ' Sony of the equipment needed to modernize and expand facilities and to increase production,, such as blast furnaces and sintering equipment, can be constructed in Czechoslovakia# but most of the needed installations must be procured abroado Western export controls make it unlikely that much equip- ment can be procured in the Westo The USSR is the only possible source of such aid among the Bloc countries, and it is doubtful that sufficient aid will be forthcoming from this quarter to help materially in rehabilitating and expanding the Czechoslovak iron and steel industryo 74 'ends-Inca Indications of Mobilization for Waro &ctuatl production will continue to fall short of targets for the remain- ing *yoara of the Five Tear Plano SECRET Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/2 -RDP79R01012A000900030002-6 With the r ception of antimony, Czechoslovak production of nonferrous metals from indigenous ores is relatively unimportant, and domestic require- ments are fiUed largely by imports and by domestic secondary metal and Scrap, timated Requirementel, Production, and D ficita of Nonferrous Metals 195.52 Copper Requirements 530500 59,700. 65,300 Production 3,000 9,600 10,100 Deficit ALM loom 2 lead Regtzi2'"ementa 229000 22,000 220000 Production 6500 6,500 7,000 Deficit Zdne Aequiremente 21,300 23,700 26,300 Production 2,500 3,000 49000 Deficit lam= MOM 220 IM Alter Baquirements 20,000 22,000 25,000 Production 4,000 4,000 4,500 Deficit O , - 11 I'm a2psw Domestic copper production is ubiefly from scraps and imports are obtained from Wearbezn L=uropeo Lead is produced frcm both ores and scrape and foreign supply sources include Bulgaria and Rumania, Scrap metal is the sole domestic source of rains, and the bulk of Czechoslovak requiremeenta are obtained from Poland, which supplies 23,9000 metric tons a year; from the USSR; and from Western sources, Aluminum is obtained through scrap recovery and through imports from the Soviet .'.3 c0 Czechoslovakia will. continue to rely heavily on the Bloc for coppere lead, zinc, and aluminum, It depends largely on overseas sources for its tin requirementsp Czechoslovakians production of antimony is well in excess of domestic requirements and is a significant contribution to the Soviet Bloao -45- Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/E;,lA-RDP79R01012A000900030002-6 ar Productiono Production of capper ft on domestic ores in Czechos1ovajda is from 55 to '15 metric a years f Other sources of copper are scrap and possibly p rr.-tea imported from Spain, *ich is used principally for its sulphur and iron content but may contain fzzi 005 to I percent coppers Total production is a timated an folds Estimated Copper Productim 194T.50 Metric Tom Electrolytic 500 600 600 600 Smelter (From Scrap) NQAI 7,4o0 78400 7,400 Total N.A. 8 $4000 880DO Planned bo Estimated Possible Production and Capacity,, rseap+rri rmr.. a ~rarw.o+.~m.sri.ianrn The annual production of electrolytic copper is expected to rein at, 600 uric tons in 1951. and 19520 The output of smelter copper from scrap, however, is estimated at 93000 tons in 1951 and 9, 500 tons in 1952, raising total output to 98600 tuna in 1951 and 10,140 tone in 19520 2 The 1952 cap;city of eleatrolyti: copper facilities is estimated at metric tons, of bael:bare at from 1,CJO to 1,500 tons, and of second smelters (scrap) at possibly 10,000 tons, c':. Domestic LOILIrementso copper production from domestic mines provides only about Ool percent of C ec' oslovak requirersents, which are estimated as follows W; Estimated Copper Requirements 1988 2 )fstric Tons 49?O35 5DO422 53,478 590680 65,310 it is reported that Eastern Europe can supply about 17,000 tenet leaving tho fo"Llo .ig amounts to be imported from nowt .Bloc sources s Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/C IA-RDP79RO1012A000900030002-6 Estimated Copper Import Requiiwants from Non-&oc Sources 1948$2 Metric tons 32,035 33,422 do StockpUeso 36,478 42,680 48,310 Stocks of copper for industrial use are esti. ed at 19,830 metric tons as of 31 December 1948 and 26,260 tons as of 31 December 1949. 42o Surplus or Deficito Caschhoalov aes copper deficit is estimated in term of requirements leas domestic production from-area and scrap: Estimated Copper Deficit 195052 metric Toes Requirements 53,x378 Production 8,060 Deficit 45 fe Internal Limitationso .59,680 65,320 9,60o 10,100 5OS48? 5.,123? Since Czechoslovakia has almost no copper ores and very limited 31t and refining facilities for processing imported ores and blister oc,oper,, it must rely heavily on imports for its copper supplyo g, Trends-Including Itxtioations of Mobilization for Waro Czechoslovakia is attempting to expand munitions production and to ctYatribute to the industrialization program of the Bloc,, j/ xhich x411 in. crease requirements of copper. In particular, the engineering industry is ea.poo.t ed to supply equipment for Soviet electrification projects* Moreov srp domes{ria production goals have been raised in a recent revision of the Five Tar Plan, To fill these growing demands, the copper industry will have tc~ intenaily its efforts to maintain and increase copper importso a,. Production. Czechoslovakia obtains small amounts of lead from scrap and from do. st{c ores. Zinc production in confined to scrap recovery, and all of the zinc concentrates are exported for smelting* 1/ Production is estimated as follm s 47 Approved For Release 1999/09/27$l`-RDP79R01012A000900030002-6 Approved For Release 1999/09x"` IA-RDP79R01012A000900030002-6 Est wited Lead and Zino Production 1.99-1?50 metric Tons L*ad i Scrap Frm Ores 21925 33*500 385OO 6A 6,40 2,505 20500 Ca 0 Low, mat Pva i b1e Production and Action of load and zinc in 1951 and 19x52 are eatiamated as folios a Estiited Lead and Zinc Froductton 1951.52 ldstric Tone Lead :x a Scrap 3,000 3,000 Frcam Ores 30500 l,000 To tal 6A 2E-, * 74000 Zinc 3,cO 4,O-W- ,rho annuai capacity of primary lead smelters is estimated at from 6,003 to ?ffi('00 metric tons of rc fined lead. No intormatiaa is available an the r apacity of sacorc ary lads lterso Czeohoalovakiate ~7' zinc eifiera, with an & mia1 capacity of 23,000 ntrio woos, Sze reported shut down in 190, No- infoz* tion is available on the capacity of secondary smelters,, D atia2 tSo T Regr ?i,r tss for lead &-A zinc are estimated as foUowa s Estimated Li &d and Zinc Requirements i9i18--52 metric Tons u tad 4 18.9040 229000 22,000 22,,000 22$000 Zinc 18,800 20,100 2183OO 239 700 26,300 o ~itOt11 0 g :-aad atcc a reporti at 2O,s518 r- trio ass of 31 Dee r 1949 for as~r zinc stocks at 8,: tons. 6/ Approved For Release I 999/099, & f IA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/x:,CIA-RDP79R01012A000900030002-6 Sur~or Def. stimated deficits indicated below do not take into consideration st eke an of 1 January 1950 but represent only the difference between estt.. r ted r quirements and domestic production. Estimated Lead and Zinc Deficits 1950-52 Lead 15,500 15500 15,000 Zinc 18,800 20s700 22,300 in the case of zinc, Poland in to supply 13,000 tons a year. ;aria a n d R u m a n i a s h i p l e a d c o n c e n t r a t e s to C z e c h o s l o v a k i a b u t not-in quantities sufficient to make-up the deticito J fo Internal Li mitationeo Czechoslovakia has only limited reserves of to-grade lead and zinc ore:=s and mining operations are handicapped by the mss of the veins, hik;h prohibits Loge-scale operations, The Pribram mine and the Danslca Stiki ica mine are the only known domestic sources. Reserves of the Pribrem !nines which produces out three-quarters of the total output of primary lead, are estimated at &pproximate1y 3. million motric tons of ore containing about 202 percent lead and 101 percent zinc. mining operations are from 1#200 to 1,5OO meters deep, and production is about 500 tons of ore a day. Ore resew, of he Banska Stiavnica mine are unknoirn, and the ore yield is about 103 per- ' 'Lead and less than 0.6 percent zinc* g. Trends-,-Inclndir,g Indications of Mobilization for War. Expansion of the lead-zinc mines is unlike3yo 3. Aluminum. a, Production. Production of aluminum in Czechoslovakia in 1950 is estimated at 4,000 meV??ic tone, mil/ all of which is secondary production from aluminum scrap. bo Estimated Possible Production and Cap3oitiro Domestic. production is not expected to increase greatly in 1951 and 1952, being estimated at about 4,000 and 4,500 metric tone, respectively. Capacity production is estimated at 5,000 tons in 1951 and 6,000 tons in 19529 co Domestic Requirement-s, Domestic requirements ware estimated at 20?000trio tons in 1950, 22s00O tons in 1951, and 25,000 tons in 1952- 49 Approved For Release 1999/09t3bzVIA-RDP79R01012A000900030002-6 ,Approved For Release 1999/094f IA-RDP79R01012A000900030002-6 do 3ta-c9ileso tons* V so .... lus or Deficita The total aluminum supply available in 1950 vas 344013 metric tons, comprising 10,000 tons of stocks, 4,000 tons of production, and 17,000 tons of imparts. Consumption is estimated at 20,000 toots, indicating a surplus of ].1., C:0 tons. The surplus in 1953. in estimated at 12, 500 tons and in 1952 at 1.4,o tons, f. Internal Limitations0 ~~ 3Q Since there are no deposits of bauxite in Czeohoslovakia,(p~rimary alur Chum production pends entirely on imports of raw material. Iocandaiy production is li Wed by the quantity of aluminum scrap available within the cour:try and through imports. An adequate supply of technical personnel and meal aniaal. equipment is believed to be available* g. Trends-Ina Indications of Mobilization for War. The increasing demands for imports of aluminum by Czechoslovakia are presumptive evidence of expanding requirements for aluminum, 'which, it is be33.eved, are primarily for military production* s~.o 0 Csechoalavak production of antimony narmally is sufficient to meet domestic regaimenta. The Cucna mine in southern Slovakia was the largest prewar producer* accounting for two-ftixds of the country's production, vhiah totaled about 800 metric tons in 1938- The balance of the 1938 output was obt43n1 as a by%product from the lead-zinc mina at Pribram In response to Gexr:~mn wartime de mantis, production vas isaxeas.d and in 1942 was estimated at over 3,OOO metric toxs. Postwar production is estimated as fol].awss Estimated Antirmoi r Production 1947-50 8V M. 1,434 1,6 1,800 2,000 Aluminum, stocks as of 1 January 1950 are estimated at 10,000 metric Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 MGM aaitva bo etin-ated Peaaible Produ21120 MA-222 A new antimony mine was reported in Deomaber 1949 at Lorinobana, , located between the to of Zuconec and Zrolen in Slovakia. In viw of the upva-.d trend in production since 1947, possible production from nev mines, mid the wartime increases achieved under the Germans, production is e?atizaated at 2,300 metric tons in 1951 and 2,,600 tans In 1952. ~a. t R o Czechoslovak production of antimony meets dousestie regnir nts and prooides a surplus for .xport or stocks. Them is little doubt that require- ments are greater today than before the war because of inorassed Industrial activity and possible preparations for war. Estimated domestic requirements are 1,200 metric tons In 1950, 1,300 tons In 1951, and 1,400 talc In 1952. d0 21oake3lea. Antimony stocks cannot be estimated fran available information, but it is 1xillevved that a part of the annual surplus is reserved for stockpiling ,td the balance Is shipped to other members of the Soviet Blow e fl am - 2= _- Fieased on the estimates of production and domestic requirements, surpluses in 1950-52 are projected as toilaas: Estimated Antimozy Surplus 195"2 r~e N+~-+n+r+~MrM ~ Production 2,000 2,300 2,600 Requirements 1,200 1,300 1,400 Surplus M The available euppiy of antimony is believed to be sufficient for current needs,, although definite figures an we reserves are lacking. Sine, Czechoslovakia is a progressive,, industrialized country, the availability of technical pera;anneal and facilities for the manufacture of mining and Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 processing equipment should be adwquate. The possible disaffoatiamof labor is a potential limiting factor. go a~-?1 ladinu lndicat Ma !49bili ts 99?ii At. The production of anthxn ny is Increasing. Although th re - are no data avadlable on increases in plant capacities, the de lopment and exploitation of m' new mine would require additional aancntrating facilities. 50 Zi0 The production of tin in Czeaboslcvakia is negligible. A tin mine is reported to bave been opened in Cinabanaa Slovakia, but nfcr tion regarding its development and exploitation is lacking. Imports and con tLon for 19M.50 are estimated as follows Zastimated Tin Imports and Canmimption 1948-50 I= TM I arts W Netherlands X05 10030 796 gigs 93 0 265 Malays 0 0 25 Total 20 Co ! t1on 10630 1,03D 10000 52 - Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 G? 9A1. Coal In the sr .e of aver 90 percent of tba orgy acbotmsfd in Csechos l avak ad Coal production in 1950. s reported +0 have been 18.5 million metric tons of bituminous coal and 27.5 million toga of broom coal and lignite. The bi' inous mines failed to most theft r output quota by 2.1 percent,, althoag i brawn coal mines exceeded their goal t r 1.4 pereent0 Objectives for 1951 call for the output of bite sous coal to , increase 6.5 percent and brown coal 7.5 percent ever 1950 levels. It is believed that bitmirons mines will ba able to produce only about 19?2 m4114 metric tans., but that barons coal output probably viii be approximately 29.5 minion togs, or close to the nor Plan goal. It is doubtful if production in 1952 will ex9ed 20 million tons of bious and 31 million toms of gown seal The coal. Industry has had to contend with serious postwar labotr problems. Shortages of manpouier have resulted in the widespread use of fasraed labor and apprentices, vbo are unsk313.ed- and inefficient. Dim. sat'sfactiou of the 'minere with .gees, working conditions, and ineTeaaed pra action quotas has been manifested in sporadic sit=down satrikea, alp- dotAa, and high rates of absent?oismn. Gee ioslovekia is a net importer of solid Thou o In.1950, imports probably mounted to about 3.9 million %*trio tons of bituminous coal.. Poland had agrsed to furnish this quantity, vhioh is 350,000 tons lose than Czechoslovakia had requested. Imports may rise in 1951 and 1952, unless output abed iscreaie more than it believed likely or unless exports should deeiease3 Experts in 1950 are estimated to have been appro ' tely 707,000 metric tons of bituminous zml, 1.4 mill ion Bone of terra coal., and over :L2 jdlUcn tons of coke. Possibly as much as tsa-tbirda of the export ton na a vent to non-Soviet Bloc countries, It is estimated that coal requirooments in 1950 weKre near3,y49.B rail.I.ion 7'L Otric tons and probably will rise to about 56 mill ton tone in 1952. According to the 1949 Place, bituminous supplies were to be distributed as i oUss u m3 , .13-1 pe ent; metallurgy (probably all for metallurgical er1w); 17C 4 per ent; other coke, 247 percent; tra rtation, 12.3 pareent; t.eetric power plants, 5.8 percent; briquette plants, 1.7 percent; other Inds r s, 17.9 percent; and dunes9ti.c heating, 781 percent. Bro%m coal and brown coal coke were t+, be allocated as folaases , 7 percent; I53_ Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 e1e3tt'1t pc?wer plante8 11.8 percent; synthetic fuel products (Stalin Weeks) r, 117,0 percent; transportation, U,1 percent; briquette plants, 2.5 peresn`:; other Industry, 317 percent and domestic heating, 18.9 percent, 1c ~~ CzechoOnvekia produces bitsm inaus ooal, mash of Which is of the onking type, but the major part of total. coal output is to ovn coal sod 1(wrwgrade l ignites m Produatiesh 9,s o atimalted as follam s latest Annual Estimates of Coal. Produotlon 194850 Dram coal ISK Moue gal t,1,,,, 194 1?v746 23,589 41,?335 1945 17,043 26,52'7` 43,5M 1950 18,456 27,506 45,962 The s r1g+i . goal. for 1950 vas exceeded by 4 percent for bites pz duo.- tio : and by 4,,4 percent for bra= coal and lignite, but the bituminous miroa failed b,,, 2.1 pest to meet their revised goal, althaugt the broM coal des a +feedeit their higher goal by 1.4 percento i'tiuninou coal is produced in five districts in Czechoslovakia. Of greatest importance is the t trava era vino field, vhiah is the aoutbeastern extremity of the Upper Silesian coaal basin. This field contains the best coal fotud in Csertnoa1oy kin and yields coke of outatandfrg qualltyy and, as a ra.t,, an extensive coke industry has developed in that area. The 1950 target for the t .atrava-garvinaa district was 15 million tone, which, if attained, would have represented about 81.3 percent of the total bituminous output (the actual figure was vloaer to 80 porccnt). The Mad mo (Central Soha=nian) district produ a Pram 10 to U. percent of the bituminous tonnage, the balame comes f Pisen, Tratnov, and Eosics-, The 1948 quotas for each district are given in the following table. Sines the total coincides exactly with the production reported for the year, Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 it f sst probable that the output f rcm each district did not wry mach foram the targets. Planned Bituminous Coal Production by Districts 1948 irrrro-i..~.a ^ r-ri76ilrr^^^rirYll~r~U =MMOA BIWA Tom PeReent wrywsar~~~rir~i~ oatt~esvas ar dn0a 13,710 77,26 8tad o (C ntral n e Bohamd an) 2$000 11.27 Plzen (West +~ Bohn i s ) 920 5.28 Trutxs (Furst Bohemian) 610 3.04 Roeiene (South 24sviaul) 506 2695 Total. Thu priaafpal bran coal deposits are fond on the Ore Hou telna fault stretching along their nortbvest.rn be*da=y of flab sis. In this district, two brown coal bao3.ns have been famed, the Most and the Sokolov* The Most basin is in also and output the largest coal basin in C$achoslavsl~3 a0 It extends for 60 kileaaeteras 4raa Labem almost to Kadan, and is about 12 td c tst rs vide at its $eaaator, which is in the vicinity of Most. One seam is up to 40 meters thick and is exploited both by deep mines and strip mining. The Most district accounts for more than 70 percent of Czechoslovakia's total ' owsa coal and lignite pre&ucrti on, and 53 mines In this area veiusre worked in 194,, Three large open-cast mines were being developed in the o year with a ccmmbined capacity expected to mach 8 mm.ion tons. Seised in Importance in the Sokolov br+aass coal basin, located sexsftaeet of the Most district. The Soke1ov basin extends for 30 kilometers, from ?? 1ovy vary to rheb, and has a m5anmm width of 8 kil c rs. There were 26 miser operatic in the area in 1948, of which 7 were open-cast operations, and the quota for this district represented 20.7 percent of the 194 pled Out lt* The remaii Ier of the production is scattered and. ce 1ats of 1w -grade lignite, with the notable oweption of a few fairly large brown owl mines in Slovakia in the vicinities of Handl czaa and Noya /b - 55 SBORET Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECMW The 1948 Plan called for the following production by districts: .san=d Brown Coal and Lignite Prodsaatf o a by Districts 1942 Perch. Mlk= an Most 17,145 71. 7 4 .%koiov (Formerly TnThiov) 4,950 / y ~ 20.70 SIovakla Districts 924 3.87 Lignite in Boheia 344 104 4 Lignite in Moravia 537 '` 2.25 Total 2, WA=JW Pepsi le Pr_nductin and Canaeit . M&W The original Five Year Plan establ(ahed-the following ob3ectives for the production of coal and cakes Planned Coal Production 194953 1953 E1tamizon Coal 17,750 170900 18,050 18,650 20,800 117.2 Brown Coal 25,800 27,250 29,000 30,600 32,200 134.7 mining coke 3,350 3,550 3,550 3,550 30550 246.6 Metallurgical. Coke 1,480 1,490 1,600 2,015 2,470 172.2 Gas Coke ' 423 396 42 446 4W 150.3 Brown Coal Coke 1,298 1,410 1,457 1,504 1,551 192.2 . The targets for coal and coke production were revised in 1949 and 1950. The goals for 1951 have been raised 6.5 percent for bituminous coal and 7.5 percent for brown coal. These increases are probably based on actual production in 1950, making the indicated targets about 19.7 million metric tons of bituminous coal and 29.6 million tons of brown coal,, a total incase of around 3,3 million tons in 1951. Considering the recalcitrant attitude of a large segment of the labor force and the pressure exerted on Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 8WRIM the workers in 1950 to reach the pl ersnad levels of output, it is ereaay doubtful that the eettmate d goal for bitaminc a mining will be aehievedo althaug the prospects for brawn coal mUdM are better. CoLt produc?an in 1951 and 1952 is estimated as follows s Estimated Goal ProductIon 195152 ago 81.UMMMOUe 19,200 20,000 Brown 290500 31?004 Total On the basis of coke production data for the aecomd quarter of 1949, it is bell ev d that the Plan goals of 7 asill ica metric Una in 1951 erd 7.5 rillion tons in 1952 represent r onablg close approximations of the tonnages -f coke that will be produced in those year e,, Total coke pro&atiaa ' in 1949 vai reported, to have been 6.59 million tones, as *OMpared With a Plan target of 6.55 rail Ucn tons. :30 It is estimated that coal requirements In 1950 were about 49*8 mdl1icn netria tone and will probably be about 56 udlllon tone In 1952. Lppr xtmate]y 47.8 million metric tons of coal- and brown coal coke were alloeatead to the domestic eeconuW in the 1949 Plan, but actual distribution is estimated +00 have been about 365,,000 tons less than this figure The planned disstributim of 20,8 million metric tons of bitty einaua cool was as fellaerss mitrin, 13.1. percent; metallnra (probably all for me+tallnrgica L cure), 17.4 percent; other coke? 24.7 percent; transportation, 1.2.3 percent; electric power plants, 5.8 percent; briquette plaxite, 1.7 percent; otfler 1nduatr7, 17.9 percent; and d atia hustings, 7.1 percent. The distribution of 27.1 million metric tons of t'or't coal and berms coal coke was to be as fellows s mia(ng, 7.0 percent; e1e etrte power plants,, 11.8 percent; Muthetie fuel produetes (Stalin Works) , 1.7.0 pe cent; travoportatiofl, 21.1 p=v:s et; brie tte plunte, 2.5 percent; other industry,, 31.7 percent; and domestic beating# 18,9 percents J Approved or Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 The fc alev3ng tables show the planned a11ooatiom of. bid and 1 own cost for 1949 and estimates of regaftements for the period 1949-5o l tinted C oe1 v k ..vailabilf ty and 1949-52 i9re rents of Bites Coal &M me . .. .. 9 Itz Proctuc#,f 17,750x0 _ 17,00 18,456 190200 200000 Stocks (as of I Jan) P-.t1co (Briquettes 29100 291 268 400 450 and for M71mg) 37200 372 4?0 400 400 8avifts ffte C ptioa 5M.5 500 0 0 0 ports 20800.0 3/41. 39850 4,000 4250 Subtotal $ 8 Oka (as of 31 Doe) 39 .5 268 400 500 Total Jimllabillt7 AIM &A mniw 2,729 2,620 2,850 2,920 3,000 t?ic Power Plants 10202 1,202 1,300 1,400 1,9300 Gasworks 570 570 567 5W 600 Xrm1metals 435 435 460 500 550 14etal.urgr 3,608 3, 3,700 4,000 4,400 Coka 5,135 5,135 5,550 5,600 50650 $ li heal wry 245 245 260 270 270 Other uses 29450 264550 20600 2,800 3,000 Ra.roads dater Transport, Urban 20532 2,532 2,650 29850 3,000 Railroads 29 29 30 30 30 B,igmttes 352 352 40D 400 400 Dcaewtic Rating 1,480 3-0450 19500 11,550 1,600 ?aster. Re ents MA The udes hard coal briquettes. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ZZat"Ited Cx004oa1ovak Availability and 3 quir~e~tr~ 9f Vmm Coal and Bps Coal Coko 2949-52 Prodwtion Stooks (as of 1 Jan) 26,450Q4~ 26,E 270 400 2gi450~0 U,~ Production (Brl usttos q and for Drying) 4130 425 A" Brown Coal Cole 1,32 640 1,~ 1, 1,440 1,00 Zalu . Col 2600 26 25 _ 25 25 Imports 2000 20 0 0 0 Sbtotaj Xqwrtm 1,220.0 1,52? 10476 1,000 800 Stocks (as of 31 Des) 480.5 400 415 700 925 Tote]. Avail abdlit r .' ems.. ~ . - ..a . . mining 1,8885 10890 1,925 2,100 20225 Rtaeatic Porn Pleats 3,.209.0 3,210. 3,350 3,700 4,000 Ga"arks 19.0 19 20 25 30 Irons Metals 975.0 975 1,025 10200 1,350 asst 1uV 485.0 485 525 boo 650 tafsoacel Izrlastr- (St*3a Works) 4,622.0", 4,,621 4800 5,200 5,450 Other chamias1 Industries 1*350.0 2,350 1,400 1$550 1,700 Other Indiustrass 5,717.2 '5,711 5,850 60230 6,6Q0 Pa1lrods 2090.0 2,955 3,100 3,350 3,600 Water Tramports Urban .moods 55.0 55 55 60 65 Briquett6s 673.0 670 700 750 800 I aotie Skating 5,126.0 40900 51,125 5,365 5,530 Total Req 1 its a x+olta s 5543 aaitria too of Y ?n owl coke 59 we SEDRIT Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 M t.axe el vas of 1948, stocks aonaietcd of about 29.L,0C0 mebrie t Of h` Cuss ewl and 4928OO0 toms of brown cowa and brown c0a1 coka` or Lisa than mw as roquirmmto. A might decline In ctooko of :max o and brown coal coke was anticipated by the and of 1949. It -.sss planed to iacreaais reserves of Utusalnous coal ' Igd`OOO two.. but tl3a goal prbab]y was not r zedo Cool. stocks are be1teveed to be 1 and thero is little 'Ak 1 hood that t1i.y will Increase Vxoogb 1952, 99 RIMA. Avaij Lb1 txaft data shov that Creoboaiovskla vas a not 1np rter of solid fuels 1 1949 19504 In 7.949, P 1a d euppliid 3.5 xailllon mrtrie tone f bit wi c4mU. a . agrssed to A dsb 3 R9 million tons in 1950 in responas to ae o ;a+al.avaklaes request for 4.2 million t=w. $Zmate in 1950 an estimated at appraxtzete1y 707,000 netrLe tone of bftmd. ioua cca7.k 1.4 tit= n tome of brown cola 1.2 r ta? tars of bard raal weep and 61.9,OOC= tons of bnm cad cokes Of the total estivted ports of 3.4 mi.in metric tons, about 67 per at *nt to no Woe co mtx iae Vhe fo7.l.uing tables lu deh statist4es an iiaportss eM exporta of coal and aolm In 19"b C hoslevak a stopped reporting its tarado in these i mI s after Augut i949a and it therefore bas been neceaa to x' ?' ea !Mort data supplied by variot*a European coantrl es and an trade agree ae nts with wxtrie v In the Soviet B1oe in me nj; these c+omputaUone. yg en e'er 1914.9 and 1950 abou d therefore be regarded only as approadmatiaM o Eutimted Coal bVerts (C aIwmkcs) 19.4&p5O -j --.> Bitumium Pew 2 Lp a $/ 3,,460e9O0 . 3s85fls000 1V Drown HUU8017 20,4150 9 Coke Poland 3, TV . W Ttade Reported. .t. Si. .a if . 'bab7;j none, - 60,w Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 tee : its of Bite CM a (Csehoela C1a) 194& 5O S t1 floe CcIAntrier. HM%PV7 Poland 9iabtot.-i Total m _ ~- m Im 337,215 383,8 250VOW 20 20 0 0 0 26#312 1.879731 409W 220,348 223;000 29,732 880900 120,000 150 0 0 2 l7 gQ . 44,200 608,000 1.09 0 0 63 Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 . 'Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 !t3.ted parts of Brom oe3. (Czechoslovak a) Ito Cries AwtxI& Vert t cmw 9vitzerland ugoa u Subtotal Bice Countries G Total A &MI19 If a 3WO204 43.9.300 375,OOo 8658147 11006#100 1p000?000 16291 3Q- 30 0 .23/ 1 IgA&IM irk' rM2 404% 6,000 A/ QLAW Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 ,Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Eit mat d Exports of Herd Goal Coke (Czeoboa3,avr kia) 191,6-50 Dmmti8aticrt Hoa3lac Gies 139j,356 6?,OOO 105,000 Finland 0 0 100 Vzan a 46,917 71#,000 700 W?at Oert 74:100 0 0 Itev land 116,OOOO 450,700 600000 Trieste 1,315 0 0 Tugoelavia Subtotal Moo Countries 272#292 0 0 aamxia 2,000 205t) 3,000 NSA GenwW 25,000 400,000 4 4,000 Al 257,673 325,000 2111000 PolAnd 1050934 208,700 150,000 Immu 451,82 100,000 150,000 subtotal Other Palestiu Total. 3.o:taon 700 Lgr= IMAM 1 W P coke demo Plan ftgmre4 ,. 63 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 SSO1i,L+T Estimated &ports of Drown Coal Colas (CseohosLavo d.a) 1948-30 I . No= TOM 3~3 Auxtria West GMMTT Total 4,828 28,300 11,000 34,100 72,300 52,203 40,400 50,000 6o i'~ats~*na1 Li1n to Hass The Cseehoslovak coal i try bas bad a serious x9opmw problem. The. postwar deportation of thmaands of Sudeten Germans created a scarcity of ors and re&ul.ted in heavy dependence upon fwced labourers and yOUng apprentices, mho are unskilled and iaefticient0 Worker dineatistaction vit tams, working cooaditicu, and In=-wood pi,c6nctL= a tan has been %=I - fested in sporadic sit-dove atarikesa, elau?der.m, aid high rates of absenteeiemo Miners are largely opposed to me+cbanittatie n beoeuse the feel that they derive little benefit f xi it, Sam of the coal minea are veld nipped vith modern macbinerry, mash of vhi bas been imported fray the US and the UX. The used for more maebinery and equipment and particularly for spare parts, however, In considemblee Open-cast operations require all sizes of smaavatIng shovels and a large rnmmber of bulldozers its vhieh are in short supply in Gzeahoslovaldae The majority of the abaft mines in the important Ostrava district have `been usi ezapresaed air equipment, and conversion to electri action In the larger rlnes has been great 3,y delayed by look of electric babies and .thew ne sssaiy vgaip nt. Vaderground operations in other districts are generally less mechanised than an the Ostrava m1nec, part3yr because of natural coalition . The rlying rock strata are very veal in the E3ndnn and Most die vriatz, and the cos are exbNemely su copt5ble of spontaneous eambtwtic b These ccvdition , b oh also *caw in some other districts, render mining ,xbn a'C .y hazardous and reduce the possibt1ities of vd2laing move efficient types of elect rietatl maohineoryo 7o Approved For Release 1999/09/27 CIA-RDP79R01012A000900030002-6 -Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ;'? -??Inselud3~? Inc3ie f3a~ of HA M tu.%&* Co*. is the source of fmm 90 pare ut to 95 per*snt of all wa rgy -:sad is dseehoal a4 Higher aneas'L production goals ref'. a t the rising industrial requirements four fa.L Peetwer output gains baw'bsen duets to a lsxTe extent, to the installation of modern mach1n 7 obtained from the West,, Cessation of these d+el .vwles would force C ahosl.a~va]cia to rely on the Soviet Bloc for machinery and equip at and v 1d rednos the possibility that coal pivduetion voiald attain planned goals, Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ITIOPSEs fi Fstroleum? The production of crude oil in dssoboslovakia in 1950 was about 50,,000 mste:ie tons t year, vaich covorod less *ban 10 poroent of annum doi st; a re? quit nts of 700,000 'once The 'remainder of the rsquiromieats 'Mere not by aeyrat: do fuels produosd in the Stalin Works at Zdost, the refining of imported ,ado oil and masut (residual fuel oi1), and the importation of petroleum products. Output of the Ave operating crude oil refineries in 1980, 1951,0 and 3062 it estimated at about 215,000, ' 230,000, and 255,000 metric tons, _*. rapsayivo7yo To this nhauld be added about 350,000, 5800000 and 400,000 tons at a, thetic fuels in the a. years, respectively, from the Lbst refinery, In addition to the cvuds oil and residual fuel oil imported from Austria amd pia for reaming, estimieatsd at 200,000 netrio tons in 1960 and 250,000 tons in 1952,0 Csochoslnvseakia receives ebout'300#000 tons of motor gasoline, and gas un diesel 'oil f om Hunanla, Austx i~ amgary$ sad East GermazW, : There is considerable rvidumv that astocks have been and era being built, upo L]ilitary and reserve depots are kept ;till. at an timsa In 1950 alo , Czechoslovak petroleum produ tion ishsd a possible surplus of 150,000 metric tons for etoakpiling0 Czechoslovak crude oil reserv are small er of inferior qualitya Laren deposits of brown coal, h r,, provide adequate roar material, for & synthetic fuels industry. The meant iaaport nt establishment of the. Czreialovak petrol, industry is the Stn7.in Workag the synthetio fuels plant at Lbst, Piftrr ? percent of annual petzvleuta req it-vwnts are not by the output of this punt, which is the, sole Cseohoslovek producer of aviation gasoline. P1 1950 to 1952, output of 95/130?ootana gasoline is expected to rise from.50,000 b 500000 metric tons, Froddact1on, and Estimated Possible Production and C aoi d CzeobezslovWda$s production of crude oil has never been laurgi The 05.1 . produced is a heavy nonparaf`finoua tam containing little gasoline and lmrosaesa. if By far the mast important producing area is ate. the Lk racvi an.?- Siovaki.an rdcr no&r Alzatria, in the vicinity of Gbe]yy and lbdonin6 In this area there are four fields in operation, at Broolav, Maly, Stepbeareov, emd Lab, Tatar, arid, oil output in 1950 was about 5O ,OOO metrio tons,, Eaefi sine arr plospwtion is being carried on, but results base been discouraging, 1 and output probably will r vaain at the some le "I in 1963. and 1952 -66- TOP SPl3PST Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ,Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 TOP SE In 19360 Gso*boslo tia had 13 rsfin.riss with a "4' axemsal ospaoitp of about 900000 mstria tons0 J Only five Of thalao With a. total aanuai sa,. pao .ty of 440,000 taxes, eears in operation is 1948, In ividusl oapaeitiss rare sstimsted as follaxn a Estimated Refinery Capacity D3stillsizion Tbarmal SM!LdM Total Appollo Darstia1ava 800000 500000 130 ,000 Psnta- 5 Paxdubieo 800000 0 , 808000 States fiasry .J Dabove+ 80,000 0 800000 Vaou-un Z Rolla 90,000 0 90,0000 Privoi bravska Ostrav% 600000 0 600000 390 000 so.J0 0 460 The refinery at Bratislava is bsthg expindsd to a ospaoityr of 200a?0? netria tons a yasre Omd it bas also b.et raparted that the Pardubfes refinery is in tbm provers of expo i,ou,b, The refinery outp,at from both dox stio and imported crude oil and masut is estirted as follows b's Estimated Refinery Production. Lbtrio Tout A Year 1950-62 1952 Gasoline a 9 Seroxem 10 12 DUM1 ani Other Distilaatai 39 89_ 4S Y asl Oil 26 so 3ti I ioanta 86 " 91 99 Aapbalt 30 32 35 Paraffin 4 4 4 Others is 16 18 lbzv than bait of the toted output of refined pzodusts ooarsis f?om the Statin Uorka, at Lbw-.v built by the Germans in World Wsr II to produce agnthetio fuel -67- Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 TOP SECUT from b n *Na by the Dergius pmoesso " This plant is dssigtwd to bon a +oVwity of 1 million metrio sons of liguid fuels a yrasa but the output obtained vsas only 6820,000 glace 10 The Stalin Tor3ca von badly damaged in the xvar but hsr a been partiZ!Qr reared, and with firthsr recto-. ration output probably will aontinus to rise as estimated belaaer ll c Esti tefd Produatian of Synthetio Fuels Thousand ti trio 1950 .1961 1982 AV"-Lion Gasoluo 30 40 2btar aaolira 161 176 ITS Se"sama3 33 35 36 Diesel, and Othiw Distillates 120 130 1#0 Total The aVSat ojinu Pro probably grads 95130e 2. Domwutio Eaciuir&a utr. sc3~~w.w ~n.rw wr.e.wr.>'.dnMwrawiuw~ .D Btia petroleum rsquiramwntas fttaled 700,000 metric tons In 1960. About 65 perow* of this was not by refining domestic *rude And by the output of the Lost ey t ictic retifirwrrya satth imports of arcade oil and refined prod=ft supplying the r+esA ,er. App dmately 580,000 tons ware used for civilian purposes as fb11Dws ah Estimattaed GivilLta F'e fro ,+ieam -8egoit'eroszxbs 1980 ?m. land A tx1 c Zb gViation Gas Oil Ubtoar and Diuel La____ r Gasoline Gasoline and Pusl Oil Xerrosens lubricants T al Air import 13 0 Latex' import 0 222 nail Transport 0 24 Tnduatt7 0 31 Construction 0 5 Agriculture 0 10 otber 0 1 Total 118 291 o 0 99 0 26 0 3,1 2 6 1 66 18 0 15 0 13 15 336 1 80 8 52 2 12 5 98 1 17 68 36 TOP SECRET Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Top SI!.T Total require a ts, civilian and milit a rya in 1960 for the perm ipal petiole= products we as .ib11ow x Bstirratad Total Petroleum 8equiromeats 1950 Thousand Lbtrie Tom Product Civilise ................. am "t% Aviation Gsaolix* 16 6 18 Lbtor Giaeolins 291 70 361 Gas Oil and Diesel and F MI O31 206 35 261 seros.ne 30 0 36 Lubricate 82 1S 44 Tetra 578 323 701 It is probable that little ohange in tavtal oo2isi ipt3on mil be registered in 1951 and 1952, nine sivilimn. a 1oeatioas could be out to aupp2;. ric acid, conataned in various fields of the chemical industry., while the balance is 1ar, .y used for the bleaching of sulphite pulp, The country has excess capacity, and there is little like3dlcxod of additional facilities being installed in 1951 and 3,952, 4. Coke C=`healcalsa The Stalin Works at lost, cci feted by the Germans in 19113, is one of the it icportant chexni.cal plants in the Soviet Bloc: and the bulk of its products are of military value. It was designed to produce synthetic gasoline frc the brcqm coals ford in large quantities in the area, By- idu&,3 of thia proce. a include large quantities of benzol., toluol* naphthalenes, wood preaer,a.. tives? and a special product called py:ocate which has potential use as an i rt t ingredient in rocket 11ue3z. The Stalin Rorke is by gar the largest producer of catechol in the world. All catechol output is exported to the SSISR, and p'oduction at the rate of 3,000 metric tons a year is suffici to provide fuel for a large number of rockets. The dyestuffs industry in Czechoslovakia is expanding, and by,-ju'oducts f the Staff Works Will, be osaential.. for this industry, At the present t Lee, n'n benzol has been offered for sale through Polish ports to the TiS 0 - 83 - Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27: CIA-RDP79RO1012AA00900030002-6 50 .phaU Acid, ss.n r .rim~s+s.+++4 Sulphuric acid,, one of the most important cheadca1e In any industrial fates, is produced in substantial quantities in Czec a3ovak a. The estimated - oduw;t4on in 1950 of 2588000 metric tons 3s approximstely, oneebalf of capacity. The s` ortage of pyrites supplies.. nearly half of which are obtained from nano orbit countries, is the reason for the comparatively low roduction. About cne-half of the production is used in the manufacture of fertili ere, About 30,000, metric tons is used in processing steel, and aprro3dmateljr the gene amount is used in the production of rayon. Recent reports show that United quantities of sulphuric acid have been imported from Italy and East QerMwTa / 4 Y h and !~xlMNI 0 a', Production, No native eulpliar is produced in Czeeboslovakias and the output of b,7-product sulphur is believed, to be negligible. SrU quantitios of pyrites are produced- from deposits in the Chveletice area. Production in 1950 was 40,000 metric tons, and planned production in 7951 is 3.00,000 tons. lam/ Some forced labor has been reported in the mines b? Estimated Possible Production and Cspadty. Production of pyrites in 1952 may reach 3,508000 metric tons* c;, Domestic Requirementse (1) Su1ir, Rents of sulphur for industries which cannot use pyrites are estimated to have been about 28,000 metric tons in 1950, principally for rayon production but also for ag.*ionlture and the manufacture of, paper and r b"z . Sulphur requiremwts for 1951 and 1952. will depend largely on the level at which the rayon industry operates. The industry operated at 65 percent of capacity in 1949. 3/ Assuming reasonably fun operation of the consuming : 4ustriea, the 19572. sulphur requirements ii l be from 30,000 to 35,000 metric (2) .., rites. Total requirements for pyrites in 1950 have been reported to be from 300?000 to 310,9000 metric tons' ? and in 39518 from 380,9000 to 100,Gino tons. Of the 1953. requirements, between 290,000 and 300,000 tons are for the ?heaic .. industry and from 90,000 to 100,000 tow are for the pulps cellulose,. ud rryou industries. V Requirements for 1952 are estimated to be from 330,,000 to 150,00 metric tons. Y - 84. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Shy Stockpiles. h cane of V -,e diffirmlties encountered in importing sulpbmr and pyrites,, it is unlik 4y that sto cpilee of either of these materials have beau accumrvlated or will be by 1952, In Februaxq 1951, stocks of pyrites awe reportedly sufficient for 3 mouths' requirements, a normal supply for industries cousumLag mineral raw materials, e o Su 3= or Deficit. (1)Sa It is estimated that the sulphur deficit of about 31,000 metric Ums in 1949 trill iaarease to from 35,000 to 40,000 tone in 1952. Etoaspt for a aU c? tput of ley- u uct sulphur Czechoslovakia is eut$rely dept upon imports. Import of su:phui'. in ]9 were as f'ol'd 1/: Estimated Su1phur In-or is 19 Metric Tot:. Source ItO7 Portal USSR East Garmang 3.20873 12,4301 5,35t; 1,000 Total 657 31 rr+ ports of mnph= from East Carmn1 to Czechoslovakia in 1950 were 19334 metric torsa,. f In addition to the sulphur to be provided by the USSR miler the 1949 trade agreement,, the Soviets also were to provide 5,000 metric tens of sulphuric acid,, ,500 tow of carbon bisulphide, 100 tons of sodium sulphates and 300 tons of sod11fl 1 drosulphites 9 all of which would require about 1,865 tons of el tat culphur or 4.,T$0 of pyrites (I percent a p1i u' content). Reports persist that Czechoslovakia is attewting to proms sulpbnr from the US and Italy in c .rc tion of export controls. Spain and Cyrus, former ourcec of pyrites, have ddscoittittcad abin-writ to zec1toslovaki but have been approached to z esume thmmu. 3 ~M85 SEC~tE'. Approved For. Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 ,Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 (2) EELtMo Cxec1i e1ovaki.a enact 285,000 ic tons of 6 95 pmmt percent of its x OMMU in 5iu~ des based on planned imports of Of requi.?emeut$ is 195, aa of 100 000 tcazs3, but it i "'S 235,000 to M OOO tom and planned production : is= iii that, eman with in 'eased domestic product 70 percent of requirO ?amts 'sf1 have to be fined ty ii ports in 1952, Imports of p3ritM In 1950 end piano imports for 1951 are as fo lsws: Pyrites ~5a0adi pied Iazorta sources 150 W 1951 (piaa~med} Vf Soviet Bloc Subtotal _6 1 DA 0.0 0. No Soviet Bloc Iugoala' is 7,50i000 Greece and Cyprus 50, Norte 13$000 Sweden 7,,000 ' V % W t G 0 Italy 5, 0OO Subtotal 2C? Rumania Bu3 aria 60,000 Total. 28 4 MOD 1;09000 80 000 60,000 to 70,000 400000 109000 10,000 15,000 to 20,000 20,000 255to 170.000 .000 to 250,000 The i nports plat ned for 1951 porobab3 hill not be obtained, aeeca his giv+m notice that abipsaeeata i.U be diecoutfmisd, S edeu bas already o1 d. its output else there., and expected shipments rxu Na r, G'~, and ms g receive .taffy are not like)yr to be cOWjfft93.y .fil3.ed. Thus ^sechosU aku bat 75,OOO togs less than An expected supply of pyrites in 2951. No ti ate of the deficit for 1952 can be m- de$ because of the s ce tai uty of crfo:rmauee of foreign sources of sugp1ro Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SST The possibility of importing pyrit, a fro the Gi esche mina in Polish U V3= Silesia, as was done under' the Gem occupations is . being considered, . f, Internal limdtations 7 (1) Availability of Raw 2:iateriais. no in or>natian is available regarding the extent of the neer]y discovered pyrites deposits in C.aechoalo da.. The mining operation will. -eported%y yie3d 200,000 metric tans a year then in frill operation, / or about half of future pyrites requirements* Additional equipmnt required for further exploitation of the pyrites deposits can probab3y be mam*factured in Czechoslovakia. but the industrial competition for steel may be a limf t ng factor. (2) Shortages of Rain katerial s. Since 191.8, serious shortages of pyrites have hampered Czechoslovak industry, affecting the production of sulpirnric acid, rubber, textiles, paper, mad fertiliser, The shortages in sulphur and pyrites bare been caused by Western export controiB and by increasing vrorld demand. Czechoslovakia will fiord it increasingly difficult, if, not impossible, to procure these raw materials . non-Orbit areas in the future, and the econoW will be seriously R.*ampared unlew additional pyrites can be obtained frtwa. m1 n., Bulgaria, acrd Rumania. Tads-YIncleL.4ng medications of 2?nbilization for War. Ixploitation of the pyrites deposits in the Chvaletice aria bas been Given high priority, M/ alad a substantial increase in production may be t ected. Because the sulphur sbortage is more acute, it can be expected that ' -,lose industries which now consume sulphur but which could use pyrites by changing qui ont wi11 do so. The transition, howover,. YjU be c" . ecauve of the expense involved pnd the large quantities of steel fired, U3rq of the strategic east-jn%xkcts which use sulphur or pyrites as jwimsry' rya w materials are exported to the USSR. Failure of Czechoslovakia to rectos sufficient raw materials will result in the reduction of these ports$, since there is no substitute for sulphur in its several. foxwas, Rubberr. a, Production. Small quentitiec of neoprene-type synthetic rubber are now reporteMV produced in Czecbosioeatda, but lack of teohnical equi t keeps production at low 1e"1, The Bata plant in Ostrokoviee near Gotteraldav reportecl]y Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SEGR started praduoti4n at the beginnfng of lor3d liar II and prodnoed about 3,000 metric tans in 1942. goat of the plant was destroyed in the war, and production-has report y declined to about 1 ton a day because of a lack of equipment, Reclaimed rubber production is estimated at 6,0000 wetift toads in 1949 and ,900 tons in 1950. Production of rubber goods has eteaAi3y increased sinus the and of the drat w d fie output c:!' major types of goods is reported as follow z Product 1918 Rubber Qoed3 k I/ Y 1W s kilts 4,467,800 30,370,000 12,000,000 AntoimablU. Track and Tractor tkaits 703,000 900,000 1 20 000 Bicyc3e and Motorcycle Baits 3,7965,000 9,330,000 , , 10,75o,0o0 Bnbber I+botwear Pdra 25,5x7,700 27,400,000 29,200,000 Coaveyor.Belts Squa" ?.36,800 130,000 360,000 Nbtws a, E9stiateda Eatinated Possible Production and Ce sad ter. No data are available on increase . r3aamed in synthetic rabbet production. The Cseahoalovak goVeZMMWt reported3y has ordered the tIorad an distilleries and the rrluegar factories in Brno to plan for the pr+odu of synthetic rubber from alcohol. For this purpose, a large factory, to be latorm as "Detano7.ka," reported3y was under ns const:ruction in Ra3ecs now Blansko, and vck 1d be placed urder military control. Great increases in the production of rubber , 1factu red goods, particu3ar4 of tires and tubes, are planned in 19 Czechoa2ova2da bads the SateUitee in the production of major categories of rubber goods. The eoptusion of existing facilities and the addition of new plants have enabled the industry to surpass year'y p2anned production, and production in 1951 may approach the totals originally planned for 1952 as fol3.oaas /r SBMMT Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 8stimated Production of Rubber Goode 19b1 t Uait P roduotion Automobile, Tuck, and Tractor Tires Units 1,300,000 Rubber Footwear Pairs 29,700,000 Conveyor Belts _ dquare 180,000 If additional equipsent and an adequate supply of roar materials are available, a considerable increase in production of rubber goods* particularly tires and tubes, can be expected. '00 Doene guirsmeats Requirements planned for the first 4 years of the current FITS Year Plan (1949.53) are reported as follows 7/: Planned Rubber Requiraaaents 1949-52 DQstrio zM 1949 1950 1951 1962 Natural Rubber 30,180 32,248 33,750 37,800 Synthetic Rubber 7,200 7,722 8,060 9,400 Reclaimed Rubber 9,000 9,500 10,100 100700 48, 80 490470 51900 67 900 Carbon Black 81026 810618 8,947 . 10,481 Other Chemicals 53,166 67,494 61,920 73,812 From this expected supply of raw materials, production of rubber goods was plsrnmsd as follows P/: SECRST Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ? 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET Planned Production of Rubber (kw."- Product Unit 1948 1950 1951 1952 Automobile Units 428,000 800,000 8500000 850,000 Truck and Tractor Units 4000000 450,000 6009,000 680,000 Bicycle Units 4,750,000 4,860,000 5,280,000 5,250,000 Motorcycle Units 290,000 290,000 360,000 8?0,000 Total, Tires units 5,868000 8,190,000 8,8?0,000 6 910,000 Rubber Footwear Pairs 25,600,000 27,460,000 29,280,000 298760,000 Conveyor Belts Square M eters 120,000 120,000 180,000 180,000 Other Metric Tons 67,997 71,509 721800 85,265 Later Plana for individual years indicate that changes ~r+ere made is both planned quantities of raw materials and output of rubber goods, with major emphasis given to production of tires and tuber. 1 Requirements for rubber imports may be expected to increase in the next few yearn to meet eupanaion pl*ia of the industry. Csechoalovakia'e motor park, estimated at about 180,000 vehicles in 1950, would require from 720,000 to 800,000 tires a year. Although production of tires is believed adequate to supply these requirements, the diversion of tires to the USSR and to other Satellite countries may leave inautfioienb quantities for domestic consunptione d. Stockpilese. There is no indication of any stockpiling of rubber or rubber goods, The small reserve stooks maintained before the war were ocsapletely exhausted by the Germans during the occupation, and the rubber industry has since operated on a hand-to-mouth basiso 10 Stooks of raw materials for the rubber industry are usually maintained at a ut a 3-months' supply. At the end or 1948, Cffisohoelovekia reportedly had 3,810 metric tons of natural rubber (including latex) and 1,099 tons of synthetic rubber, 11 f which would constitute only a normal carry-over of material. MW 90 - Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ? Approved For Release 1999/09/2~-RDP79R01012A000900030002-6 e, 9urplxls or Deficit.. Natural and synthetic rubber asplied 81. percent of to requir~ea>raentaz of the n in 3949p .'These imports. estimated at 1,3 000 metric tons of nature]. rubber e and 4,000 tons of reclaimed rubber in 1937, 22 7 have reparted3y i acrsoued since the end of World War II as follmt RubbW Imports 3&48-50 . Eetric Two .29 Natuirallubber 3 3S Synthetic Rubber Reclaimed Rubber 2,621 I Total b I& RLO 27,500 28;000 8,000 8,000 V/ 3,av0 3,000 ~ 38,500 393000 ecL M am Czechoslovakia exports ooatiaiderabls gear Lties of an types of rubber products to the lei eastern .c ountries and to ' the Soviet Bloc.* it is the major producer among the Satellites of a wide variety of rubber goods and reportedly must supply the USSR, with finished rubber pods in exchange for the raw naterials required by the rubber industry, being a]lcnred to sell oal3r a portion of the finished goods in Czechoslovakia to cover IDBntlfaatu1'ZA. g costs, RBCett reports have indicated that Czechoslovakia, is "dumping",~ titres of rubber goods in Western.. countries to obtain foreign currency. '+'! The production of tires is considered more than adequate to meet domestic requirements, except possibly for oertada types and sizes for heavy vehicles. A oonsiderab7,e portion of the tire production is reported to go to the USSR and other Satellite countries. Some types and sizes of rubber tires have been imported. from countries outside the Soviet Orbit,- Dom, ]tic supplies of carbon black and rubber chmo3,cale are inadequate, and requirements of these materials are filled mainly by imports. zec rubber goods include Benelux, Sweden, the UK, the USSR, Switzerlapd, Austria, Yugoslavakia, Venezuela, and Iraq. 17 91..* SEr Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6` L' Approved For Release 1999/09/27 CIA-RDP79R01012A000900030002-6 be designed for the pa odnction of automobile tires, 30 Special efforts probabIy win be denoted to provide suffidieait equi a exi for tire production. A new tire plant IqW to be opened in JWvar7 1950 in S]rovalcia With equipment ordered from the t1S, but the denial of export licenses for the machinery .made it necessary to piece out facil3.tien fat' the plant from other plants in country. So= equipwmt ma3 have been obtained in - other coimtrl es. g. Tr ??. Tmdicatima of rabilization for liar. Major emphasis in the rubber industry in Czechoslovakia, 4s in Poland, bas been placed upon tire production. Soviet -instructions reportedly have been issued that, since. Czechoslovakia bas the most advancmd. rubber industry in the Soviet Mae. countries,. the manufacture of all rubber n'cducts in the Satellite countries is to be. conceutmted there. 32 The coca diaated effort of the soviet Moe to increase tire production , recent em aria on obtaining tire cord facilities - also point to the major role tat Ctecbdslovaksa 3s expected to play in the rubber fabricating field. 33 After similar action in the USSR, Czechosloovakia in the ear3y postwar period tuxt rtook to move frontier. industries toward the interior of the aovntsy. Several. rubber fabricating plants were moved into Slovakia, now the ant' of the industry. Factories were placed on a vartine basin, and increased SUM and special security measuree'Were added. Production ban been initiated of certain items of possible military use, claming rubber gas,. tanks for airpianesp gas' magi life jacketa, rubber dinghies,. and equipment four M*nl 8tilxllSlYieas , . 35 w 93 Sa'r4aliii Approved For Release 1999/09/27. CIA-RDP79R01012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET Go. ....._, T 7ia The Czechoslovak. ergineexriiag 213dnstzy is the largest amo'g t8e 9si.23i*ee It produces a aubstantiai v&me of a vide rungs of mddmaq and equI;mft, which Mots domestic requir e, accept for Certain steam, and See a aurplva, equal to about 50 percent of total onbpat, a large propor- f# of fah is d to-other members of the Swat MOO* The industry in 39117 ample d t.080 and it 38 pleas d that t 3953-em020me1t Will be 6311 bio, or about 26 percent of a total labor fom In indasta y and ocoostruotl t of 2,1i19,000 wo sreo The main, sectors of the Czechoslovak enginset g iudustiry ino]xate her machinezy, pracisicu mac inert', aircraft and vehielee, and gametal mRChinory, Appro~(mate 80 percent - of _ the capao?ir of 8koda, the major producing =ft of the enginearii ig industry, Is centered in the Insts11atioans at Pilsou The fao.. tarp of ttis Skoda combine produce Complete eleattria poesr stations, camp1ats eTAPxmt for Sin str3a1 p]ents {including chamibal factor as, pap i. lle; refiner .ss, pumplr:g s tatiacs, rdWng mills di ftl33srlee, agar thatozrles, etoa), vehicles, steel stsuatuz+es, ccuatraction machinery, ind3v d1 units at machine totaa, - att r*tic machines, presser, and mmte-rms other types of equip. merit, It is reported that fro 60 to 70 pez'oent of p~roduatiaet of thaw items is eucpaa ede Lbrecm+er, Skoda is one of the chief an ad produce= In Bmapeo . Produotton of the_ Bering industry in the sar]y postwar years increased greatisr over prewar linls, and, vender the Five Year Plan, ou%m to scheduled to rise at an even acre rapid rate, Production surpasses domestic ragn3re~nts, ci eating a large surplus which amounts to about 5o peroe* of t ho production total outputs All of the surplus is exported. Mm followft table at of selected o nod3,tIes ahdws actual and plarnnd production. Production of 3e3sated- Frnginsering ]937, 3948, 195143 m MGtne Tools 5> meatrio Lbtorii Tractors Agricultural OLdhInN7 84 o20 i N, A. Automobiles 32,634 Trucks 3, locomotives 75 FraLapt cam NoAo BSUOUP L A, W. 16,000 N. A. 19,0W A' N. A, N.A. 8,000 5,500,000 Uod 17,504 , _ 39,900 Na A. 890,,000 20,000 20,000 ICAO LA0 No Am 1tO'04D ICA I5vOOO O 4 4W t - 8000 6,500,000 N.A. N. A. 94 Approved For Release 1999/09/2.7 S RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SRS' 1? k' 41' a T+DOse. Prodlot3,ao. its prodoobi of =am a $oc s In 4a oslosakia is !fr gsaime- - that of mw O mw Soviet Mad ems* 'the W M6 and Oi romks to Oils ss#n sawn of nappy tar 8its31its -111 ;d', IS-1108 at 0041 as IAoo a. Proiestf m is eetimsttsd as f*22= a i tad Produaltcn of ? ddas gaols j93?, 'I9L643 'site 2471 Proatzoad 5,496 6,770. 9,?l3. 31,814 34;300 3,5,000 16,000 17,900 Mamad 12,500 24,769 24,000 22,400 19,900 iattms milting machines, brosabee g B mao4fase, gssz' aaad Paltaebb g ms , obape 'e, ax a Being zast1iti t an own -0ts aLd ' "pas of macb1n too to raaratth d. The rid labor fwm In this 1.W7 1$ 118,1$_ DDrb" but' aim* raeporte differ for now faotoarlste and figures s Wst available for others, We total is oaeaidemd teeabftve. steed Posaibla nM notion and ta-. The Cseat aelovok msahirn toot- 3zaetrg Is proditoirig at amp eft, Omtpi ana aspaoity an both vet1 ted at 26,000 Mite in 3$1 and 1?,540 ud& ft 290. Despite PZVO M0 ee eonat erduc be at+e~vod , ft Is 1ib*3 wirb *e 3 peodtio~ tim 6I of DamaestiC H, i . Data on daasatie rsgaire?soobs ara nat avaiyab]a. Orsahoeit 1e paroialKau its eufficeirent to fi31 daaeetio needs In mespr 01ctegorl1*oef mntlae taeo3s, bat outer types mast be 1 orbede For ezuWLs Ossahaalovaicsa bas ordid aft Weebeft ntrOps wag =d grit . ttttng umbi eery, mechisrerl far prodaradsos t bead s, amd other epsofal mohiae toolso Then is no stoo1tp33.tng of msahiae tools as sertoh, bob eani a vblrr gtit3,ss of vaea$d ltgir0 w MI* boats an stored in tlaeotswlroaak seer beoa*re of a aak net . Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 abroad. There are baresk and that there Is at Wawa* at P"ft but ad63tioas 1 ebW radstenes ?ab a variety of aarsr itug b Gemm .vea bme expe0lsd ftm ' n.baaa not been T] WIfte ]~ ~?~ma T7~ T,eetbf: wi' '1~ ~n ~'~`_ i There am ue 3ncUoratidats . of largo-sod ataen-sreicm !Tans msthi tool p"fteman to the pyre uotioa of mar matea'ie le' Mary' -tyre of amine tools produceid! In C oB1o sk a ere adspt01. to both ai Bent awd s3litar7 uses howeusr, and their p although not a clear ii ieatiam 9C prep ttiCOlb, doe. stmgmm &a wir potential at the B3 s. WWbI" teal Plants tifabs atl z atpparsrstiy tong entirely to ailittN7 prc~dnctss ID!!ke both tads and 'military aslts i282ode Rafts Skoda Adeatovs I Skodat W0116 a, 8koda. Vovy! Bars Skoda PilaaMs Sts~attfl0eti0e, Qeetixa, &V asd Ceelos' Zbo ejadlcs. At 83gaiflearit and socoesst3. W is have been mad* to ptnzase fart the tlaet sn+oh items as bidh-speed tbnaftg msddAms (from Pi'anes) r~3~t ma be ttaad fcr almemeaat pradaat o and aa*a-idea1 for pred tcn ear mart, 22f and gear-anttttnrg ii hinges tz Stserlata, cb itts Was besisvr are to be used In the map Since there are no atomic energy pleats in Cssohos]arlda, there =xe a ttompstic requirements for fissionable materials, and now is aatpsoted 1952. 4. 3t~sl, s. All t material recovered is shipped to the V=v and no stack. 101.3 am maistaiaed within the country. 5. Ietarfaall4nitations_ The wailablle. manpower .apply is snff'ieiasit fpr the ezpWtatiap of the uraa;~i ea d po~.ts. IAning practicer are ineff"l mega , ho~arrv~st, and- aosi w ~~eatileticn sad mseihanised equipotant are iwdequ&U, vb5I proper ? toed sari lothtig for the vor' s are lsuekiisg. $nwportatioem r+ gUiramests and they a ly of teetueial personnel are bs ievod to to ad.quate. 6. ssi m I oatiwa oLMa U,wtidq t ? the outpat of mranLt oorntaratee free 1946 to 1950 has beset :steadily up rd, with a sharp Jiug in 1949. Yaaraaase sins 1949, however, bslieved to have been at a low but steady rate. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET Me Traneportaticm. The transportation systems of Czechoslovakia do not contribute sub- stantially to the Soviet eeonamLc potential for tar. The rail network, which is probably in the best condition of axW Satellite system, in important to the USSR chiefly It T;+ -~i ninC the prof activity of C tyoslovak industry and in delivering industrial equipment and munitions. Mob, of Czechoalovalcia* a output of locomotives and other ro33.ing stock is deliveoced to the USSR and elsewhere in the Bloo, but the industry is operating W U be3 z its potential capacity. Althougjt Czechoslovaks highvWs are insfgniA- cant in the Soviet economic potential for war, the country's motor vehicle industry is a major source of Soviet Bloc supply. A large portion of Czechoslovakia's relatively limited vehicle production is allocated to Ill Bloc requireaots, to the serious detriment of Czechoslovakia's ors' motor transport .inctistry. Czechoslovak civil aviation is developed more extensively than that of any other Satellite and is of some importance to the USSR, since it provides a rapid means of movement to and from the West for high-priority personnel and strategic eormoditiese The watery rs of Czechoelovakia, ixwover,. make virt iUyr no contribution to the Soviet ec of mic potential. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ? Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 -A. Tailroads. 1. Direct Contributions of Railroads to the Econ=ic Pots} ib>? Tar 0 a. tieneral DescrfptiAn Of, the Netwero The net=* of the Croe ablovsk State Ra31vge (CSD) 3s adequate to meet the recgiireee s placed on it by the cauntryi s eoo doogr and co affc 'd 8=e surplus carrying capacity.. The netaork. is terry sparse in the east and quite dense in the west, and there are few lines on the eastrveet axis. Despite these Befit i?naf es, the railroad system meets the requireseazte of one of Central Bwope& s most industrialized areas. no Cseohvelo~ak railroads are staacrd-gouges and tranaanad- ing of goods or change of car axles is necessary at Junction points with the broad-age Soviet railroads. The tnansloading station at is one of the largest on the'Soviet western perimeter and appears to be capable of handling the Ctechos1ovak.6ovsst tZa,Yfice b. Traffic. Railroad traffic in 19b9 amounted to 24.h b5314an mstria ton- Id].ameters,.an increase of 3.3.7 percent over the previous year. y It is estimated that the IZO level of traffic vas 75 billion ton *i2ogetera, a level- hi percent bi&w than 1938, the last corms]. prewar year. Platmed traffic for 1953 is 17 billion ere. CsechoelaPak3.a does not coact the Soviet Union with iaporUnt strategic or economic areas. Thez etire, the oauntrya a railroads n s iRpartant to the ASSR chiefly for maiataind the pro&zctivity of C$echossovak indtmtry, and 82 percent of total rail traffic is internal. The largest single ca=K)dity carried is coal, vbich accotiate fbr40 percent of total traffic by s followed '+ay stone, porcelains -1 9: p t) . apd sod (in; The chief commodities wbicb move by rail between CsecboslovaIaa and the Soviet Union are machinery, weapons, munitions, orbs, and metals.. C. r1ment0- The The faoilitiee of the CSD suffered less in the vw than moet continental rail system, and its egnipment is in better condition than that of most of the Satellites. The condition of lines in wastes CsochoaLo~d a Is quite goods but in Slovakia the equipment is vcrn and of older design. Ballast and rails are too light for the efficient handling of current traffic requirdme nto. S19ia1 equipment is as advanced in Caechoa3 oyalda as e . In. Eastern Europe, but a Soviet conLdasion has recently surveyed the 6D n&b- the Soviet e ork with "viewt~convo ing from the International "Qa 8igi'ial system to v \SI~QiLT Approved For Release 1999/09/27 : CIA-RDP79R.01012A000900030002-6 Approved For Release 1999/09/2-RDP79R01012A000900030002-6 d. City. The Czechoslovak railroads, it is believed, do not operate as close to maxim capacity as do other Satellite system. Since Czechoslovakia, before the war, possessed a rail system adequate for an advanced industrialized nation, the sudden postwar increases in transportation regairewente experienced in other Bloc countries have not occurred: It is likely that CSD can sustain temporary and local traffic increases equal to 20 percent of current traffic. The system as a whole should be able to support an ova-all increase in traffic of 10 percent, or a 5-percent increase over arty given route, with a few except- ions. The chief weakness in the capacity of the Czechoslovak network is on the main east-went line between Cornmad-Tiean and Win- the lino which carries almost all of the Czechoslovak-Soviet traffic. YW,nerabd\lity. The Czecboa%oval: railroad system is vulnerable to sabotage and air attack because of its many bridges and tunnels. This vulncrabillty could be critical in Slovakia, where only one east.-west through route a dste, but is not serious in Bohemia-3Soravia, where the network is dense enough to provide alternative routes for most of the lines. Tlorkshops are not 1tl li y vulnerable in Czechoalovald.a, since the well-developed and railroad equipment industry can provide considerable emergency m~rLnte capacity. 2. Dissect Contributions of Railroad Equipment to the. Eco is I~\~\i~ ^ Ir_I\/^YiY~\~ a o Me" MM a,* Imrentories. CSD has an inventory of locomotives and freight cars adequate to meet all foreseeable traffic requirem,eats. Eat .mated CSD equipment in- ventories in 19149. included 40.90 locomotives and 82,5841 ? ei ght cars, repre- of 4' locomotives and .85,3214 freight can are planned for 1953. 7. The 3.3-percent increase In the freight -car inventory planned for 1953 iLU require 685 new cars a year fbr 14 years, and total requirements, including r laceme3ntI Of a possible 2,4.00 care yearly,. are more than 3,000 care yearly, a figure far below Czechoslovakia's production capabilities. b. Production Capabilities. Czechoslovakia has the best developed transportation equipment industry in the Soviet orbit, vith a capacity to matmtacture at ],iaet 18,000 freight cars yearly. Present production is estimated to be only about 8,000 .freight care because of reduced requirements and the conversion of much plant capacity to roar production, Locomotive production is estimated at 220 units in 1950, 2140 in 1951, and' 260 in 1952. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SET . c. Tffects of Transfbrs to the USSR. Substantial emergency v+ithdrawals of railroad equipment could be made rtdthout serious disruption of the Czechoslovak eoonomW Be- movals of up to 10,000 can of all types (12 percent of total inch) could be made for a short period of time without seorioualy affecting traffic, but protracted removals might imposo restrictions on pertain aspects of the traffic pattern. Then removal of 5,OOO cars would not seriously affect traffic . or reduce the total transport capabilities of the country. A eubetanti.al part of Czechoslovakia's current production will. continue to be devoted to meeting Soviet and Orbit requirements. The extent to which Czechoslovakia is now supplyin 1Oeamotives -and other rolling stock +Q-'1' . USSR.is not accurately known, but it is~apparent that Czechoslovak production is currently at a level far below the in&istYy'a capacity, suggesting that requirements and inventories are not far out of balance throughout the Soviet Bloc. 3. Indirect Contrioutions. a. Role of Rai]roacas in Sovet Trade. (1) Extent and Nature of Traffic with the USSR ' and the Sate tee. Czechoslovak- railroads do not play a vital part in Soviet trade. The CSD handles virtually no transit.traffic between the USSR and other countries, nor does it handle all Czechoslovak-6oviot traffic, some of which is carried by Polish and Ilu garian railroads. Czechooloval.^-6oviet tsatfio is generally restricted to the oast-west line between Zilina and C , which i i delivers approximately 7,500 metric tons daily to the USSR and Smaller volumes f the USSR to Czechoslovakia. The chief corxaditics in this traffic are machinery, heavy industrial products, munitions, weapons, ores, and metals. The W SR delivers certain ores and metals to Czechoslovakda for manufacture, largely for Soviet account. (2) ar ZM6 is to the USSR. The volume of traffic between. the USSR and Czechoslovakia is not large enough to be of serious consequence to the war potential of the Soviet.economy. Tranaloadings at Cerna,.for example, total an estimsted?5 million .metric tons yearly, eastbound and westbound, or only 0.6 percent of the total tonnage c rigiz atiog a .ly within the USSR. The a$cial nature of moray of the materials hauled, including macbIne tools and subassemblies for arcmments,mak+ea the traffic of catch greater importance to the USSR than its vo]nme alone would indicate. Nevertheless, the Soviet Union's economic potential for war would be reduced very little if CSD traffic were cowletel,y halted. 125 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27: CIA-RDP79R01012A000900030002-6 b. Role of Railroads in Trade with the lest. (1) E,ct it and Nature of Traffic. Cseahoalvvaddat s rail-borne trade with the .eet declined sharply in 19149 and 1950? Rail traffic to Trieste is geatay reducede and the vol=e of traffic with Se3.tacar3' and- lustrla= is also - believed to be reduoed. Trade with But and Vest Geruar y, 'Aa Loin Countrioe, and oversew areas eaves largely by the .be waterway system and highwa. (2) Clandestine Traffic. The volume of clandestine rail traffic is not kw=A, but Western export controls we -e believed to have redaced cuich traMc. (3) Impgrt!nce of Traffic to the Orbit Econoear. Host items hotted from the Jest are in short within the Bloc and are of an economic or military importance which their dollar value. The Czechoslovak railroads, however, handle only a mall volume of trade with the test and east be considered of major importance in terms of the Soviet war Potential. 4. Inverse Contributions. a. S mm[,t and Uateriats. The 00 is not dcpender on the Soviet Union ibr either rail- road equipment or materials. Caeahoslo~vak inatry produces surplus quantities of locomotives, freight cars, passenger care, rails, and signal equL nt. b, owel`. Czochoe1ovalda nas an adequate member of skilled and vn&31"ed workers to maintain all aspects of railroad service and equipment prodnation, c. Soviet Control. Direct Soviet control Wwrtod from within the Czeahoac3,,ovati Lin istry of Transportation Would T ire an unwieldy or_anizatimatted, the USSR uses the Fourth Bureen of the Czodhoelovak General Staff, the militaz ap?aratus though which the Czeehoslova c Armor controls the C3D. The Foourth Bureau, '3iieh has army representatives in the L'inistsg of Transportation and in all, eight of the divisional directorates, controls all railroad planning, in- ibrmtivn, and operations, and the i lnf stry of Transportation In s1mp17 a vehicle for - the operation and a a1 nistration of traffic. In ad tion to con- trolling the Fourth Bureau through Soviet Arm officers or the Czechoslovak General Staff, the USSR is also believed to have Soviet Angr officers at various levels vithin the Fourth Bureau in order to maintain control and to proaum in- formation. These Soviet officers are called a ',hiiitary Transportation Lriseiom. J SECM Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 elmom" The (D will tmderCalcs certain 1wz m amente in 1951 and 3957 which will stramgt7m the iv11 eystem and yield some iacresaes in tasfric capacity but v311. not materia33y affect the Sovlat eoonomde potoeMal for tsar. The eastt+gast line betmeen Prague and Cerra- *d-Tisan, via 74"-'=,, my be doable- tx cked, ui th the possible eocooption of a abort stz et ab east of Poprad. iktectrificaticn probably win be wteuded eaateard tram Z313na to Spin des by the and a ]959 and my also be Initiated on the Pz*g - Ces'sa- Trsbo a line before 7953. It is unlikely that increases of moa than 3 peroent will be made in freight oar inventories bl- December 2909 alt u h a L-peroont decrease in the total lomotiwa inwentoiy may occur. Ibe- ooo- st ot3on may include mother Um,, to In -opened between Danorm and IIsharad, ooineotiag Slovakia and the W SR. 127 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/gilA-RDP79RO1012A000900030002-6 B. Fii,,,rhwaa. 1. Direct Cgntributions ofrs to the Economic Potential for r ~rr~r~wrrri~, ?rr. Bar ~ ? . The Czechoslovak road system, -0:i1e useful in the national ecoryot r, is in genorally poor condition and makes little direct contribution to the Soviet economic potentiaL for veer. It is doubtful that the USSR in t h e .f twe v 1 1 1 e i t h e r m e k s i i b nee of or benefit eppreaa,ehty !'leas Czechoslovak; highways. a. General Description of the Network. in 19148 the hi ghwar network nos 71,000 kilometers, slightly more than the 69,,810 kilometers in use in 1936. Of the 19148 total, only 12,000 kilometers, or less than 17 percent, were reported to be hard-surfaced highways, and the remainder was considered unsuitable for heavy traffic. 2/ Several re- ports indicate that little highway construction and repair worklbas been under- taken since the end of World War II and that the. road system generally is in dire need.of repair, only 20 percent of the roads being classified as in "good conditions" Several of the sane sources agree, however, that all of the more important bridges have been restored. A total of 930-permanent bridges were built between 1945 and 1950. 3?/ Road construction plans for 1950 indicated that no major effort was intendeds 1115 kilometers were to be reconditioned, l 860 kilometers rolled, and 790 kilometers resurfaced. 2/ Perhaps the most significant project in'the 1950 program was the reconstruction and widening of one of the few highways linking eastern Slovakia with the USSR. h/ Since highways now radiate from all the important Czeokwoslavak cities, and the density of the cystert (0.56 kilometer per kilometer) is alread~r comparativo2,y high by Eastern European standards, little a on effort is required. Uoroover, bridges are now in generally good repair, and it is believed that the entire network could be put in first-class condition within a few months, should either economic or military circumstances be considered compel ing. b. Traffic. Motor vehicles operating under the Ministry of Transportation account for between 2,5 and 20 percent of total passenger traffic and a little over 20 percent of total freight tonnage hauled by all types of transport. In terns of ton-kilometers, however, this tonnage equals not more than 3 percent of the freight carried by all forms of Czechoslovak inland tromport, 6J ,btor, transport is concentrated around the large urban areas and consists of short-haul cartage and conmmter service. Under the Five Tear Plan (19l9-'53, development of highway transport is being directed toward. "the greatest possible cooperation ... with the railroads in the form of radial transportation." 3/ The naryiretem is do s Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SE= designed to achieve a more eoonomi.e two of both rail and bigbwsW transport. A sharp curtailment of lee n-oaoc1oad rail ahipmentte is irked. edienb operating dialricts" have been established, and shipmc nta of packaged. ods within these districts must be made entirez]y by highiiy. The dixtricto probably are so defined that the longest possible shipment is' net nwh in e =em of 1,5 kil eeneterss the distance recently estiwited as the ate average length of hti1. It r4dpmmU are to crows c strict boundariees they mast be rrved by bigh Toy to the nearest rail co 11ection center and tram- chipped it carload lots by rail. 1 Passenger traffic figures are shown in the following table 2/s Passenger Traffic c o Travel" Aveaof B"a ( ) tea) ( ~ilaet , 1937 75.0 N.A, 15.0 ~.1. 948 172.7 1,654.1 67.1 9.6 J 1, 8 245.3 N.A: 8662 NAG 19148 July an 225.6 2,229.9 87.1 9.9 rsd - aft 226.6 2,722.4 914.9 12.0 Ju3* Plan 249.5 2,5O7.3 99.0 10.1 2404 2,877.0 109.14 12.0 1953 July P2= 307.14 3,21i6.6 127.4 10.6 Revised Plan 241.5 . 2,91403 118.0 12.2 a/ ina d nationalized concerns reporting to the Mniataq of J Eetimatod. Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 Approved For Release 1999/09/,IA-RDP79R01012A000900030002-6 v Freight traffic is as fbIlove jQfs 393?F ,j' 1i9bt 9j~9,1a Toss Ton- SUoeraters Av+mcage I+sagl2t Carried Kilometers Traveled at.8~ year (ninia 1937 12.5 l.A. 74.9 B.A. 1947 17.3 343.0 111..7 17.5 191y8 23.:7 R.A. 136.2 N:A.. 3948 July Plan 318.0 161.7 14.9 3.9Revie d rim 49 24.6 Am 167.7 3.4.2 July Plan 22.0 356. 200.1 16.2 19RRevised Plan 53 25.1 371 3 188.8 3149 July Plan 263 4b3..l 24 65 16.8 Revised Plan 29.8 41x..0 224.0 314.8 Inalndes only traff c of nationalized concerns reporting to the 113nistty of 1 Estimated. Although actual -#igures for. L91t9 and 3950 have not been released: press sports suggest that motor transport, operations have e0panded considerably since 39118. In 1949, total freight carried reportedly reaohsd 20 million netrln tons, an increase of 21 percent over 1948 and well in s=eas of the Flan goal. It appears that ed goals are subject to ohmage as the oiroumitances earrant. In late 191~cs the Czechs evidently considered to re- vised goals for 3,949 and 1953 attainable, but Whether changing condition have praq*ed #srther-Plan revisions since that tune is not koo m.. - 1 Restrictions on the use ofnotorr f WI,, Isposed an I August 1948, bad some effect on motor vehiclo tsafflie. Private vahicte operation was sharply roduc , and, although gacoline was removed fm?the list of rationed oom Mies in Janwry 1950, its price -remained at v"1,75 per gallon, ttms eo 1ng any v despcead resumption of use of private cars or trucks vnllkely. All wholesale trucking companies and an private but lines were nationalized in. 3.940j, shortly after gas ration ng vas instituted. CSdD, the state enterprise for motor transport, has effectively marnpolizcd highwar passenger traffic and endeavored to expand its trucking operations. The 3argest part of total motor freight, however, his been moved in foreign (mostly Dartch and Belgian) trucks and in vehicles belonging to the various large nationalized industrial organization, and traffic statistics for these vehicles are not avail- able. Military traffic data are also wdanomu Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 3SGRhT Although information permitting a coc?odity breakdown of higbnvay traffic is not available, it is believed that most motor iredrht com- prises industrial raw materials and products. Total highway traffic also embraces horse-drwm transport, atsich is of less magnitude and sic icance in Czechoslovakia than in the other Satellites but provides a 31~ndac~ntal service to the agricultural, eoonotr and is, thereforep of eci national Sm- poxtanco. Altogether, total. Czechoa] ovuk highway traffic Bust be considerably larger than is indicated by the figures of the 1.inistry of Transportation: Itemertholese, since cost of it is carried only short distances, total highway traffic in ton-ki].aaaeters remains ma11. c. Road Construction and :Iaintenance T.quipmR . Details as to the quantity and empl cy sent of road-build machinery in Czechoslovakia are not knoru. There in some evidence that high priority has been given to the purchase of eastb-moving equipment friom the 'test. There also is some indication that road maintenance and repair are to be andled in the future by road-building machinery stations, which are being established in Czechoslovakia on the Soviet pattern..:! It is believed that to dates however., the small amount*of maintenance and repair work actually 'undertaken has been performed mainly by manual labor. d. Cam. Despite limitations of capacity imposed by the poor con- dition of the roads throughout much of Czechoslovakia ands in certain seasons, by the weathers highway use is restricted principally by the availability of serviceable vehicles and of traffic and probably does not clown' approach the capacity of the road network, except possibly in the large urban areas, The highway networks although in need of repair, apparently is meeting the require- ments of the national economy. e. Vulnerability. Since motor transport accounts for less than 3 percent of total f5reiCht traffic in terms of ton-kilometeres its over-all economic vainer- ability is judged to be relatively slight. There are long-distance road connections between the major cities, but alternative routes are generally available, particularly in the western part of the oounttye 1 cover, the roads also are supolcmiented by rail lines, thus reducing the economic effectiveness of attacks on highway targets unless rail connections were disrupted at the same timo. The pby ical vulncrrability of the Czechoslovak road system to air attack and ground demolition is considerable booause of the large number of bridges and culverts on all main routes. Vulnerability is heightened by the many obstacles to cross-country movement and dispersals both in the mountaimun areas and in the highly cultivated river valleys. Good demolition targets also exist on hilly sections of mare' routes, where the roads are frequently out into rock above steep-sided valleys. These conditions prevail particularly on the .. i V Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SE= frontier crossings around -the Caachosloevak paar3meftr+. Because of the terrain, howeverp frontier crossings would be readily defensible against groms? forces. The vullerabdlit*r of the voter vehicle park is higL, and as intensive attack directed against the-park probab]y would be the scat ailect- ive means of dissvpt4ng highway. transport. The deetructi,~ of urban tsort facilities, would have a high mace value,, and barse-&m tr iaportat on peroba r would be inadequate to -oovensate for aslyr tholesale deatraction of motor vehicles. Direct Caatsiburtiane_ of Hiifta4r Rranecport Bquip to the 10, A kw=al lAr arc . a. Inventories. Offl ai a1 f gores on the motor vehicle inventory have not been released since 19168. At that time the sitwation, as compared with 393x, van as fallow ]1 s Motor Vab iclis alie 1938,I98~ ns 1 Augst 1938 29 Febraary 20 Motorcycles 80,676 6CO 1119 Autamob es 99,119 , Trucks 8,537 66ii,ioO Tractors 17,000 Buses 3, 8oD I Others h,o1o , 3,880 Total 338 380 The 19168 figures do not include 2,870 trucks and 2,0i1 buses oened by the State Railways or the various vehicles operated by the police, the post offices and, presumabtily, the army. It is not believed that the total vehicle inventory has changed significantly since 19118. Incroasee from donestie production cannot have been large, because oanedderabie numbws of new vehicles have been ecported. Although complete eacport figures have not been repot ted, substantial motor r-ehiole dbipmaita are know to have been made to Pblaed, Romania, and the Nether].a s, the first two receiving mainly trucks and the third passenger oars. Czechoslovakia also exports vehicles to all of the other Orbit countries, as well as to several Latin American countries, India! Pakistan, and most of the Western Dnropean countries. Total estimated exports in 1910 are shown below ] _' fs SBGTMT Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/0%I1IA-RDP79R01012A000900030002-6 Passenger Care Trucks and Buses Lotorcycies 10,1400 2,100 21,600 50 33,. 33 Taking into consideration the ].invited UVa is of 3,5b Passenger cars and 50 trucks in 19119, vehicles allotted for do eatia oonsuaptiori kmi d.tted a retirement rate of only about 5 p"cent for trucks and 8 present nor passenger cares aseindng no ohv 1-s rial egystem which turned out these products was teclmologica13,y . advanced by Ustern European standards and did not sustain Important war deism. To a considerable extent,. the problem of integrating the Caaechoalecntak ecaragp Into that of the Soviet Bloc is one of modifying wing procbnct l oa facilitla s required by the USS& and other Bloc members. Thins involves a tar+a *tax on from a predeominatat,].y light indartry oaagp1 ar to a heavy one. Tons wh(1 the pfd average annual rate of Industrial construction at 7.7 psacoant dorbog the Five rear Plan is small when compared with the planned rate for other Satellites, neverthe3eaa over 40 percent of Caechoslo~rak icaanaaetmealt Is to be in industry, aiming at as increase in industrial productiax by 1953 to about 50 percent above the 1949 level. 2.R.t- A& teulture In Cneohoalrnrakia accounts fear 17.6 perce Of the noticlurarl Income and xmplaya appa"oac3atate],y acne-third at the papnlation. It pa o ss Over 90 patent. ,f domestic food requir meats and a small export eurp2uss ib7deac the Five rear I JAns, will receive 8 patent of the noti,onau] Inrestmat budget. Tae primary purpose of this e p sion Is to sappLy ner] a tad aachins tractor stations end producer oooparatiiea with equd puMA ,. fwwiasars, fuel, and other basic materials. Crop police 'under the Five leer Plat Is de- signed to increase livestock and sugar best production at the eocpsoss of gain. In 1S B, crop production was 65 percent of the total value of agrift3twa1 output, livestock being only 35 punt. $g 1953 the ratio is pranced to be 52 percent for amp j oduction and 18 percent for livestock. 'This agriaoaltvrai. program wUl call for Ingports of grain from less highly 4 ndmitri a3 Is now of the Soviet Blot, but it should halos better use of available land in O al arakla, yielding more livestock paroduots for home oeo~ and moss sugar -146 Approved For. Release 199- 9~ /0- 9/27 ? CI- A A rcFaFa,-vvvc,~-v~zvveevv- ~~ Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 for export. The chronic labor shortage in Cseahoalovak agtioulturs has been only partially relieved by Carat mandatory work programs. 3, C 2MME 4.O. With a high degree of economic devolopment and near self-andfi dcnay ~ food, ~ the highest In Eastern eyed little .. damage, C$sahc~slo~rakiuaes atsndat+d of Lrops, despite the addition In early 1951 of bread and flour to the list of rationed foodstuffs, on the othas hood, high prices, the relative scarcity of goods as aoa4ared with praaer a wa?~ty, and government pressure to work longer and hordes have sa'Louslj impaired public morale. Because of the lack of new co nsisvation and of repair of existing units since 1947., housing remains inadequate. Factors caotributing to the housing shortage inC1ud9 rM material, ahortagos, high pei+ces, an In- suffici labor supply, and the priority given to industrial dsviloiauent. A planned increase in the total. Investment of the National Health Service aqy contribute to an improved standard of living, 4. oxdributi on of the Boonomz_to the Dour Czechoslovakia and Poi.and, under Soviet guidance, are to bsaor the main canters of heavy industry in the Soviet orbit. Coal and heavy un4.try, particularly the engineering Industry,, in Czechoslovakia will provide the nucleus for the of the Satellites. The aggineer1i uad~st:y produces mainly heavy machinery, including electrical equipment precialon machinery, aircraft and vehicles, and general machineay. Over 60 pseroant of pro 2ucti can in these categories and from 40 to 50 percent of tractor parodncti, an are exported to the Bloc. The export of, half of Czechoslovalciaea output of machine tools to the Bloc constitutes a basic contribution to the Soviet poten- tial for war,, The Czechoslovak machine tool industry is. second only to that of the USSR, .which is incapable alone of supplying Moo rsquireeen s for this type Of equipment Cz?choal vak uranium mines accounted for 15 per a" of the total w VA* of urani'a obtained by the USSR in 1930. Thus proportion is expected to be ained through 1952. The Satellites depend an Cssohoslarakla for rabber per, and coal and metallurgical oaks are wworted to the Mm, Despite the fact that the production of consumer goods is being subordinated to heavy industry, Czschos;7.ovak exports of goods ankh as shoe , t=U:Lets sir, and glassware matte a eignifiaant eanctribution in Tier of ahortages of such products in other W-00 coeu~tri ea. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 U. EJUMIld RUM gt 92&.E ME-WAR W arc 1. ,Ma ion;, kwatrt$. Czechoslovakia, the most highly 3nduatriaM ned couaptry in the Soviet Orbit, is dependent upon the West for certain 3 strial products and rw materials, the lack of which would seriously prejudice the at the Five Year Plan goals and reduce Csechoalovak a's coar-tributioace to the Soviet war potential. Mazy of these items either cannot be obtained within the Bloc or can be procured there only at considerable cost. For eocanele, Czechoslovakia's ferrous metal industry is dependent qpm Swedish high ,rails iron ore, and the denial of these imparts would substantially reduce ozeah steel. production until a reconversion could be made in order to use lower.. quality Soviet ores. In various other instances, production increases are predicated upon increased imports from, the West. Specialised machinery (particularly ccgxI x machine tools), beads gi, industrial diamonds, s and sulphur., tin, die copper, other items are needed tram the West and a" ppaarttiicular impart~sno , red attaining the planned production of Cseah industry, The es'fects of Western, European restrictions an exports at msspr critical items are evident in Czechoslovak efforts to acquire such items, especially bearings, industrial diamonds, some types at machine tools, recd electrciytia copper, through covert channels, Althat* it is a major carport r of maautaotured goods,, largely light industrial ca.,modities, Czechoslovakia has not enjoyed a favorable bargaining position with the West because its plants must often compete with similar industries in Western B cope. Czechoslovakia depends an overseas counbries for many raw n t wia7s, principally cotton, rubber, hides,, wool, and jute, name of which can be supplied in quantity by the Soviet Bloc, 2. Y Seia of me 105MR. The steel industry in Czechoslovakia is dependent ' upon Swedw for about one-half of its iron ogre. If the Importation of this high-grade an should stop, a mininim at 1 year would be necessary to eanvert the industry to the uti'l.ization of lower-grade are, and production schedules all slang the line in heavy industry and in other sectors dependent npoa it would not be est. C manmifactures only slightly more than one-third of its antitx~icticn bearing requireaments. An effective adbargo on bearings would severely limit Csechosl ovaki,a to contribution to the Soviet war potential, -I40 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 _ iET I. Xudigat ir 3WA w . As the rearmament program within the Soviet BLoc was aoosle~at , Ce.01~a- s]roralda, MAW Saviet direction, and partricu]arlyy after.191,4, o41 sf I i I Isa raised p r o d u c t i o n ]avels I n f r i e s o a a fi r r i b a U z g to the - -- - - W potential, of the MAG and cuirtalled the pro&cti an of oonsuerer, goodo. in inareaeilag degree cKf Qoiversion to military produotiasu took plans in the ' +6 drys Pwiaular],y in a .tura3. equipaent taetariss. Bvidenoe of actua], dispersal of imduetry is ].Lofted, but sass 41## 2&9*. asst of manufacturing plants eastward to 31mides. has noon's par 1arIr in the rubber ice, and the Fives Year Plan "120 tar the rapid is&strla]. V Vs in vb! of Slamakla. Despite the natural ado ages at Sl+avalda's relative abw deace of ]Tabor and its greater paraoc dty to r+aw material souroes, sash a reoeiantation In induct ry a1, d.velopwent my be 3ridiaati a of perepsa'sti on tar There is no ostensible coamwsicc to war production as a i h, but tabs ssaitr- nrant of priorities for pr ftot&ou and allocation of raer :flaterlala is as taUsms (1) war fndustry, atiuittg and, heavy industry, pa ticular]y steel aad rcU3sg ed11s (2) p`eciaiosn on, tooa. industry, vehicle iaductery, and tracto ind+ stzj and {3) 1 yDt Industry and optical . The tc d rec ri *Am of td? Cseohaslvveic so< r to eupply induatri,sl roquireaaesxts for th .-MU nsosi ,. tatee cc iderrab1e subat3.taxtl cn And eocamW in the use of ran materials, r.- SWICU of military acuaideraticna. Expedients auseb as utZlsistiroa ai' 'asb- stitute materials, rodmUm in the use of aitary etas]., and axb nsimn of the use of hard metals are being emplWed. The acono~nlat3Aa of. food stoaka, 13ke the effort to find substitute raw materials, ire not in itself an isudircetlcm of war pr+eparaticnso The rail fetvork, which is of po sdxdvanb !sas so. in the Oseoho~vrak transportation cyst m, oonti butee to the Moo ecatioetis?elilitery po .nUal chiefly in mainntaiaing the produett of as;e~otio lo~rak iadwstry. Tlrrs is little .or no evideaaoe In railroad amati;ans of par.parati for bostviliti s, but the continued 'fimplit of higtyaa ys may be indicative of war pespamm Zion. UO M a Approved For Release 1999/09/27 CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 APP# 4DIZ A fl &PITUXATION (` LItiITATIOAB, 'D8FICIEMCIE;3, AND MUM S OF D 1 LTD CE Section a Is, III, VLt2, M and a do not ban aaterial to be indluded !n this Appeand1z, U. aaci! of BbIDa nl6atsoaa+aeer for Eocnaaaaio Dev 1c soma The results of the 1*7 ceoaaws of popu]atian, particu]ar]y for taw tltualal sector, are avai]ub]a, but ]9 amens results are not. Int r-I wirl estimates of population, births, :mod deaths . appear in the official s Lsticw].. pnblicatioa~. Further information is needed an dumps in man. per plater as theq ooasw. Additional inforbstion concerning hours of work, prodiotivity, and the content of training cam" also is deeirebls. IT. Fever Trade and Fines *. a~~? Iwri.arr+rrll r~r+i~~r.rar+rr . Wonation an cv deed ai[. tmdb with all c0imtr!.ss Is adegoat1 ttLrough 17148 and the first half of 1949,0 but since the m3dd3~a at 291i9, hasaafv r, It bas' become progressively moire difficult to obtain. epeaifio and dspas aible .1 t 11i pones Informstio an trade with Wastern fnsope is still good. Oeort tssds etatistice pz v ds inf'ariaation of sufficient accuraay In. prs1 cooaalodi* grimVI ge. In new l nstaacea detailed breakdowns are avaf.Zabl., whersa* in *there only broad categories are given. Reporting an free port transacklow and tran3chiirrents also In fr agmen and insufficient, I> tozw~abian an trade with the Soviet Bloc ie iasuftioieat. Data an needed not. a0 y on oditj- zovemmft but also an prlo1 g policies and setbods of p.-. Information oa, trade with other arose of the world to available in same inataaoes, but winch tame aoe ld be reoeaasary to acs plait such and In many instances it'ia inadOq ate. dso of specific oonaaption raaquix~ements, impart z+egnire?ente, and aspbrt. availabi2ttloa of the Soviet Union., Caechoslavakia, and the other Soviet Blau oountrles Is necessary to anever the prob]Isaa posed in this paper. Such ir~foa~aati;on in not available to the Trade and Finance Branch except in v:"l 1?nited Instancee. ? 151 SBGW is Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET Information an balance of papments Items other than 11ty, =1 anti is ?incdeguate. For lastance, the prob]ma of using the faoilit ss of ether countries is particularly imgortaat in the am of Csechosl~akis, tiedt to ]and -3i deed, but little is bmm about t19 ttsnaportaticn and 1nsuxanof charges paid for tpe use of such facilities. Bs tatltui~. Adequate ?prenr inforsation is available on Oibchoolovsk igrioolt ire, but cm rsi4erable vo* remalas to be do* to establish a firs base for mootpar3.l~oin. 94M I reoent3ys reports tram the US RdmuM In Pragos have been, fairy adequate, At. the present tine, however, mere is no agricultural attache In Qeecttoel o~o+ak3s, and reports are inadequate in naaber. sad quallty. SO reports have besa. helpful, and the service e1touhd?. be hoc *nded. Greater dependence aoist now be psaoed an mrospapera, radio broadcasts, and other inuid+entnl bits e!f 1nfca~atiest an p ous]y, and tberefere mater. d~epen3anoe mast be placed ca mathsr infsrsa- tim, if and uben obts3nabla, in making eetieaateao. VI. ''t atrial Capacitor and XaV is of Prodoation: A. Ferrous Matale. After the Comet coop in Creohhoslo1vakia and until appraecimatsly January 1954, defectors, several of Khan held high posttioNIt in the iron aad steel industry, vsre- source of inforastion and of basic dooments of great value to this offieee. SinM January 1950, little iafor ticu has been xsdeived. As3jable iafonaatian is needed on the following.: 1.. Location and desariptton ' of iron ore and mangsneas deposits, mines, and concentrating p3ants; estimates of reserm.. 2, Descriptions of instaltiticas and egnipmert of axiatiag iraa and steel plants, to be used-ss a basis fbr a detailed plant vW&O, 3, Actual pradnctlcn of all mw materials and saeiifinlebsd paroduefir of the iron and steel industry from 19218 to date; eatiaatee for ]5343? 40. Cation of, raw materials by the Iran and steel industry tram 19218 to date; oco tion of iron and steel products idt rt E3nsoboelovstds ~- induetaq. 5. Import aM export trade In Iron and steel raw materials and products fxaai 39146 to date; trade agreements, with detailed ci nd tr sac o 3iete. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 3BCIR B, Nonferrous Metals. 3.. C ro. Iataraaatiaa is 1acklag an iaaaports for 3949 and 1950, pLamned imports for 2M and 19520 sad stockpiles. I"d. and Zino? Inlasm4tiaa Ira JACK M wan production in 2950, sequireasnts, stooia- pi3es, and expsnaarion of 3sad and lino ulnas. Infor~tian is needed an the amisltere at the Weisaaasan Wext5a at 9veta3a.-Chote3ovios and the Gebr. Dudek, Ssttenal. near Teplitz Sahcmu, zsportadly closed down in.3914 9 34 A1mdnum. Taco ttion is required an the use pattern for Imported alv>a!i m and the location of. Oxacboslovak fabricating punts. 4. Data aze. meded on production, Location of misses, planned soVan'- aims, re~uir ante, nee pattern, and location of fabricatiM plants, 5? M. Information is required as the new dev+elc>paeent Its Cinebsr* $]ovak s. .Caai. The foil using info tdJoa it requested: 2e Produotian In 2950 by diati'icte and by iaadividual mimes and Plan flgurrs for 1951 and IM, 2. Data an actual imports of bitnm1naus coal fro Pc3,ad,. In ,1950 and exports by types of coal and Doke to various oonatrles in ]950. 3. Site at coal stocks In the coantsy ip 2M. Is. Amiysis at the supply a aritmaatioaa and evidence of aw dwr*m at coal and coke. Data was aatval producrtim of me Mnargical cake, other lard coal oche, and brawn coal cake in 1450 and plena for 2951 and 19524 Out figures by indivi4i pints are desimd. 0.153.0 Approved for Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 TOP S 6. Data on the prcductioss and amp. ty of briquette plants. 7. 3b fora tfon oor~oeraing the -eat of nm adnea, eacpamedon of- old miuw# and clasiag of argr mines in 1950. 8, Data an mining madsinerry and equip ut, including qusattit3.es sod types being produced; queutitiea required by the coal indvrrtaty; and q*ntitses, tppea, and sources of imports. 9. Analysis of production diffimltiea and poasibilttirea for emp d- ing coal production. 10: Data on the co ion of ooa3. ancI coke in 1950 and planed consumption in 19a and 39 2. D. Petroleum. Xnfarmarticu is needed on the f I&Afte 1. Stockpile size, location, and product campositian, 2. Imports and exports by quantitys products and or].giu or destination. 3. Expansion of old refineries and oonstruat&on of nm onee, frith par- ticul.ar emphasis on eyntbatice e 11. Production of bigb?grade aviation gasp] inw. 5. Caaasrsmption t y consuiaeor group, product; and quantity',. 6. Infosiaationz art e>cp3orati on and explaitat.ton -of now fields. Be Electric Po , 3, Inteorna3. T.fmitatic m, a. Raaources. no critical gaps exist in intelltgwrsoe material covering eo U resources for electric pow 61nora'tialtw raati,oet an pot ttial nad?sr pow resouroes is sattys bat such 1'esourcea play a minotr part in elacti'ioit p roductian. be Eleotr4irW G rating Pants. ~~r ^ wrr,ar wrrr~~ rr.rr.wr There is auttf.aieut, inforaati~a? to detersdne the total installed oapacitr vitbin from 1D to 35 percent accuragV, but net addition since 3,947 TOP SEMM Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 cannot be learned from acvalUble ma-teria1. Further emaadnatii~on of III records may reduce this detic3.eatcy. Intora en non the p!Wsical ooaiditicu of ecpdpeent is .inadequate. Such informe~tdau is of iswrtanoe in estab34Wdng the real rapabilit~ of the plants to deliver pow, as wall as in deta dining replaotsment lieeda. Current Informuce an the pr'ogveee of new project ooastruckUn also ya inadequate. 9pecif3.oal3yr fatbxvast3+ou is desired on the progress of c;onstruation at the joint Cseob Poiiah plant at Dwory, which is 3ar?s mum& to main significant Qosctribntiona to the electric pdrrr supply of the Silesian region. a. Trat'isvion Sydte 0 Available material pro vi a rasoneh3y goody know3afte of Gaecbo~a1ai dais exiting and proposed trazlsmissic anstema~ but anal a~dd'itirona7 nformatIm is needed to der &a1 * their carrying capacty .and the degree of t;oordinati n into a natiaml nrnr !o*. L Prcdnctiau. Statistical data on electrical pa~oduc:t-i ou fr pVencar yawns to ,,be present are more plaotifWl and more reliable then for most of the oars! Satelttte nations. It is beocmdng more di Moult each ymr, hdvaverm to obtain such information. Considerable inteI13 Bence material is available as to the ~ pattern of use of el ectacicily bar the main sectors of the Czedaelovak eoonowa and the :3a we is true of the pro tiaatate use bar the principal oo mxwe itt iadaartary. ?brther inf i~oa and research, bowovw, will be necessary to establish ?eliable parer figures for essential inudustriee. 6. Input" Regnireeaencts. E pt for the need for more iafonnatiaoat on regnirmanta of new =d elsatrieal ec~i m there are no critical gyps in inta714genoe j:*aterial on input requir?enta. 7. Vn]ne~aMtar. Information is needed an time w i3'M of certain sear s4aeis3a for t lectrio equipment,nhidt appears to bo tuts paint of ailaeorabilily. Further reeeaarah i ith D/I and D/M should reduce this Wi ei sn F. Chawdca3a. 1. aka. Because of the great importance of the Caeohosla ak nitrogen industry An time of war as well as in peacettate,, the need to know more about its capacity 155 Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6' '' Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 S IMM and rate of production is a math of bigbest pa icrity. Unforttmately, the volume of infoiwatio n avatlaMs to this office ban dropped man y `since ear3y 1950, and the Wentity received in 1951 has been negligible. More infOX Lion is pan tcular3y required on the two new nitrogen p3daats at Uaost and at Uartrinove Co~afii a,.wxtion of their planned capac3t&es sod details cat the data of befr c 8bmatia are needed. {/~ Other data on the exLeting plants wau3d be he # to acid faci1it1e of the t%om81a Ostrava plant hay* been Increaseds but there is little information abdtt new cepaci'r and average dai3y rate of production. More recent coufbmation of the syathetie e?aaia or nitrogen capacities of the ~~Seattin ("Synthessi~a~"~)L~p~lant. at IbmveJaa Ontra,a and the plants at Ustirinad- fabom would prow valiiaV3e. 6. Su3)ha r and Pyrites. rr r r~.+.rr r i Lfcre information is needed on quantity and sources of Cuech imports of both sulphur and pyrites. Sloe dependence on the Meat for a substaarti7. part of its pyrites supplies renders Czecbos3,orrakia vulnerable to eoancdc warfare measures Which would ser 37 cripple many of its strategic Industries, efforts to obtain supplies through clendeeti ne moans particaler]y should be watched, information is also needed on progress in the. we Of C~eebaslooakiato resources of domestic pyrites-and traproduct salphar. 7e Rubber. Recant 3ufornst cn on the Caeca a1ovak rubber indnatry is inadequate. Production data, information on a pansicn of fabricating faciliittres end ii formation on any action twit to increase syutbetie rubber pa~odn are perticular],y desi.red* In addition, information on carbon black and rubber chesdea3s is extrama3y scanty, it is believed that a good deal of snub Informa- tion could be gleaned from open sources, such as trade. journals, nw spaperrs, and technical articles, were they made available to this office. t eating ?r!dustSrr. In the preparation of this paper, considerable use was matte of the Situation Report for Production Tqui- matt (Working Pape4 30 June 195C-for informatian which it was not possible to obtain from library sources because of the time 13 mi tati ons? ' This paper represente appro ri ately 90 percent coverage of 1950-551 material and ap roxlmately 50 to 60 percent coverage of material previous to that periods Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 SECRET For the engineering industry as a irlwle, the foU wing are the chief information deficienciess 1. Production figures for 1950 and the first 6 months of 1951 by product. 2e Degree of achievement of the Five Year Plan quotas for 1950 arid the first 6 months of 1951. 3. Specific of the cc?odities exported to the USSR, their quantities, ori,g1n, and, 'enever possible, their destinatiaai. '4- Types of coaranodi tie s being exported to the Sate=tee and factory of origin. 5, Trade agreements (1950..51) with the' countries of western Eueope and the Soviet Bloc, particularly secret agreements. 6. Shortages in raw materials, highly specialized machinery, etc, 7. Names and quantities of those item currently received from the USSR which are important to the Czechoslovak industrial econoap-. 8. Morale of personnel, the factors which affect it, and the effect of morale on production. 9. Organization of factories, with names and biographical infox-a,- t:Oon on top personnel. 10. Condition of factory machinery, degree of obsolescence, etc. 11. Factories recent3r constructed and plans for new construction. 12, Instances of factory conversion to materia of direct veur utility. 13. Soviet supervision of Czechoslovak planta, the sectors super Wised, purpose of supeorvision, and names, addresses, and technical background of supervisors wherever possible. ALreraft In the time allowed, it was impossible to do a thorough research job and make an evaluation of quantities of item being produced at the various aircraft factories, Nearly all information is of a hearsay nature. The system whereby the CIA Library files some documents and SO controls the distribution of especially valuable ones, thereby making their contents to av41ab3s for research, increases the time required and reduces the reliability of estimates. .. 15'7 r SEUM Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 9. s r In the preparation of this paper; research was restricted to the material on bawd covering the production of finished craft in sblpyards. Data an marine equipment comprises; 60 peroant of the inf'ormution avmi1 b1e in the Iiddustri,al Register and the CIA Library on the a12rinatvsive 5ub3ect of shipbuilding, which has not been exploited. The time allowed for a review of the subject was totally mdesquate0 Ho Uranixan. There is a large voltmae of informartiaan on the uaranl resources of Czechoslcvslda in OSI, but very little of this mterial In now available in this branch. _ An accurate knowledge of the real shortages In this field 'v rill. be possible only *hen a complete survey of the material in the Special. Comcdity files and in OSI has been made. Vii. Transportation.. Ra.i3roa so Re3iab3e figures for traffic or inventories have not been available since 19158. Railroad trackage developments and changes in the signal. systeer have been r moored, but no authoritative information is avai.Iable. B. . The major deficiency is - int.elligenoe iatoasaticn on Czechoslovak hi gb- wa y transport is the lack of detailed data concerning all aspects of highrm traffic.. Highway transport is, important tom ous sepwate of the national econo W, including agri=lture, industry~- the armed forces, commerce, and gov~er~eut. The total. vehicle park, lnc.ludiaeg both motor vehicles and anim 1. drawn equipment, in distributed according to the requirements of those segments. In order to estimate accurate 3 r the over-all capability and the eeoncm3.c vulner- ability of Caechoslovak highway transport, the allocation of vehicles to those interests and the nature and qumitity of all types of hi - traffic movements must be knomn,. C. water Transport, The capacity of the inland water transport system is not Imm with accuracy. Available information is incomplete, often misleading, and mabdgws. Port capacities are not sufficiently detailed. Fleet invent ol7 Information is inadequate, since available statistics do net differentiate clearly between Czechoslovak craft on national waterways and those operating in Poland. ?,bore details are also needed on the nature and voluaae of traffic. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ` Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 S De Air Tra part, To assess better the fmportunce - of Cuodws1orak air transportatian to the USSR eoonomdo potential for war, infoot tm abaold be obtained on the natum and To]=s of Czecbos]:otiatc air tso orts and esporta V oam y of origin or destimtiion andL on the percentage of air i orte farm the Weet that an trans- abipped ty air to the USSR. To assist in evaluating Csecboalotalda!.a dependeonos cc the tRSSR for air transport egaip mt add ap 'e par te, reparta are dosired ca the mat um and tolme of such freight - de3ivered ter air or of mamas of transport to Csecbas3 o- vWda from the IISSR, Approved Fnr Release 1999/09/27 0 CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 81 R APP U B FOO= W AND SOUR= Sections I, To vIII, IS, and I do not have material to be iao3 uded in this Appendix. II. Ga?jrae, i#aof &own fogAUL90c ,De~velat~me 10 2. State Aespatch No. as Prague,-15 Doc 3914. 34 The N i1 a of 4. CIA : au 990 B. Gloso as the Five ear Plan). 6. CIA 406430, og* get. 25X1 A2g 7. Did. 25X1 A2 8. a .i.etiok7 Zpravodaa, xif, No. 4., p. 150, 19503 9. From 1950 figure plus increase anmommed in FBIS, 1 Feb 19514 10. Bstimated on the basis of increase planned from .1951. to end of Plea in FBZS, 11 Apr 1951. 11. CIA 406410, . 120 Statisti+a~r , p. 16. 23. CIA 406410, sham to and of Plate over the Plan pe iod. 14. 1 Reports of State Statistical Office of C , VOL 7RZ, oe0 55-5e, 1.949. 15. CIA 406410, 22. 16, Estimated from tat Umwment announced for Five Year Plan, F=s 6 Apr 1951, lees then bar to be added from 1 Jan 1951 to and of 1953, IBIS9 U spar 1951. 17. F&8, 30 Jan 1951. 18. Reports of the Central Statistical. Office, Yos. m, No. 59, ].%9. 19. FBIS9 6 Dee 1950 (awed increases aonvertsd to prewar bass). ILL- Scam Sm i=TiiwGiiri Ii 0 1. 20 30 5 6. 7. s4 Vim. Vol. V, No. 236, p. 5, 27 Jan 1949 (Ming Prague z*dla broadcast of 36 Jan 1949)0 FBI$, 1 May 1951 (citing ZimadelsloQ l rimy, 27 Apr 1931)- 5 Apr 1951. ~g-s Vol. No. 266, P? 7, 26 Jan 1990. $ 31 Migr s FBZS, 11 May 1951. Feat the Curt Vol.. in, Bo. as 23 Fab 1951. Bo tg,_,Ir f en Czeaho.._....M +5$ Vienna, 17 May 1.951. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 Sa"T 37. E2010 2at F3nanae 1. State Dssp. 2910 Prague, 7 Nov 1930; State Dssp.1950 Praam, 4 MW 193Dj Prs 3 , .... 170?s 25X1A2g - -" -~ ? Jo3nt a 37'0 Pragwip 2. State Dssp. 134, Prag st, F$. 3. State Deep. 291, Prague, on., g-R j 80 4.7679? 4. State Deep. 39L,_ 8w, 1-9493 State Deep. 333, Sws 1990. 5. 6, 70 8. 25X1A2g /9? State,Desp., Hbf 34 Jan .1950; State A- 5, Prsgw, 7 Fob 1949? 31. via Emm MAW Saaroes= 25X1A2g I 7707Busm BT 666?49s 24 May 1949. WA -%WUI A~Pwr Ns? 20, Oct 28 1949. Be ND+ I.- FM 1/90, 10 Jan 1950 (deta3l+ed Five rear Plan t w the Cseobosl,v~raic lie~tallurgf,aa3. ?,~, 30 ~Caeohos]:~onrakia, 1tgy 1948. - 4. FDD 3/50, . Bit' 50 FDD, Speaf No. ] O, 6 Feb 1951. Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 6, 7. =S reply to Colloation Aequiest No. 9597.1. 9, Emu% .?.?.? ... ~alal.~ U Delay 1951. 20 bead and Zinc, 1. BID Csec?wslovakia Ua 1948 - CIA No. 129510 p. 80. 20 FDA) Special 10, 6 Feb 1931. 6. FDD sp oUT o Ti Feb 193].. 25X1A2g 8.- Fw 10 Jan 1937.* a 96 BMW Of i tetyZ AM W ZUMI! 9u y, Jan 1948. 3. A~e 3... Csdechos rak3,a, 1949 Operational Plan, FDB 10, 6 Pb h3.951. 4. A.,B1~, i M? 1. Bureau of l~tinea, MIMCII r M i ,Preprint, 19490 2. T 24 Today. Boyal institute at lrtt. rnati val Altair., 30 1948. 47* 9 ,,,,, 1949-,Fs NUMPM 25X1 A2g a. 2. OIR Report 53-64;--20 Sap 1950. 195]. Tin Committee as actual or estimated ooosumption; 1950 figure estimated) 0 D. 25X1 AOn 1. T, Jan 1938. 25X1 A2g ko lb' E'? J-98 ID EWCtd 18 1949, 50 Info~matfon Paper 88, CIA 518438, 17 Oct 1950. 600 ~-'. i AZ. J+9a, o 7. In Intozinatian I8pet , O. ACA. as. s ? 162 :11ir Mir Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Approved For Release 1999/09/27 : CIA-RDP79RO.1012A000900030002-6 TOP =MW 25X1A2g 2. World Power Conference, Report No. 4, Tablas 17 and 1&. 3? FM translation of oN}{. ;a :l sari" U, No. 4 state Statiatiaol Office, Pragng, 17 Sep 3.948. 4. 4th World Power Conference,. Sac. A., Pa'p.z' No. 15. 31 6. Wieport I R-249-49, .CIA 344410 {with mph us Federal pawn Commission Report, "ELectric Power Supp]yr in Cseohoelovakja,a Apr 1944? 25X1 A2g go nu - 12, 1949? 90 BmUgbink Feb 19503 AmLeg 232, 30 Y 1950; UN 11 tit Swat ati Qa Vj; i-a_+n through Aug 1944z 13e FM mss. . s ? f 25X1A2g Pragusi Z 50, CIA 464"9o 31 N4 195p ? s ? o Air Attache- 15. c 5X'~A~ F 28 Am 1950. ear. E. Ei49tria Dm- 45^ 1 25X1 A2g 12. 7.I.. FDD Thane. Sp. as M. A& g state 9. FDD Trans. Sp. 6, 01949 Operatiaoal Plus for Protctiea and Allocation of Fuel and Power in C hoelovakla," 21 Doe 1950 10. in Istformatioa Paper as* oR. g As 3. un 950 2. 14 Sep 1930. 6~. 9alahur aad v 'ittea. 25X1A2g.o 25X1A2g 25X1 A2g. 3tntistittto-. ~, Iwo 5-6,. 194' 25X1 A2g 3D. FBIS 37o-7 Feb 1953. (State Platmlzig Office release), 31. Ito FIB taranalation (net publie ihed) )ma paper.. 13dHoak "s Jul 19491 5X1 A2g 3.4.. C Repo Q?. s oa.git 25X1A2g 5. 6. 7. ,-163. Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 Next 1 Page(s) In Document Exempt Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ,Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 s 20 a t. ..awm"o 25X1A2g. 3? 30 t. l Maq'p oea'? 1. 3"te, Prague 18, 14 Jan 1990. 2. 30 4. State, Prague 18, o?~. a L? 5 6. ft., Prate 18, op. cat. 25X1 A2 7f Ceeob082 ora1 Five Yeecr p~aa fear Agriculture, 5 Apr 1951. g se 9 '~(. ? 25X1A2g ~o 13? 4. tractors. 1? 25X1A2g 2. 30 40 Into date 30 Apr 1949; IBIu?C M-V6992, Apa~ 19493 X113-i9, 25X1X750 6. M 25X1 A27g 0 e0 ~t9. Cseahoalvv&c Five Year Plan for Agrrioulture, 5 Apr 1951. 31.. HT .723-49.#9 22o a ? 25X1A2g ,? . 25X1 A2g 3.4. Y'a 04"t15FA, 25 fir' 1951 50 _l a, ,,, anon Eaui~ment. 25X1 X7 2. state, Prague 490, 25 Mar 1950. 25X1 A2 g C, , 50 Cam State Pluit Office, 22 Feb 1951 sir Approved For Release 1999/09/27 : CIA-RDP79R01012A000900030002-6 f' 'Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 25X1A2g 6. &j&td &tian k2MME. 1. 2, 3. 4. 5. 6. 7. S. 9. 1a U. 12. 33a? 340 1r5. 16. Sources: So reports, 00 reports, Air end Ara W Attache repents, ft way Prague.despatohee, USFA, FDD,, Internaticnel Atlas (Italisn-), and Jane's A ?{ ]4!a Aircraft. ` II. 2 ansnartatf oaa. A. Ra., ~..oade. 1. 2;, Czechoslovak qi e 19 Oct 1950, 25X1 A2g 3. B. U3 w s. 25X1X7 1. 2. 3. 40 5. Czechoslovak document issued by State.Plsw g Office Prague, 8 Jul 191;$). P] anriina Commission RE the Five ink CIS 4, 'ayy Transport, PI 289, Air Attache Paris, IR.-382-49. FDB Tranaiation 49/49, 7 Sep 1949 Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 ,,,Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6 7. $. 9? 25X1A2g 11. 32. 25X1 X7 33. S~ ate: Deep. 35s Pragues, 23 ~ 3.9491 NOV 99 ~(~ 1949 c9f~ M? cit.= FDD Trans3ati?n Special 3: Plan for Hwy TrweporQ, 14. State Rpt 5830 Prague, 19 Aug 3.948 (official a 15. State Deep. 4902 Pragues 21. Apr 1950 (eatimte t G officia L). 16 a Ibid. 25X1A2g 17. 18 FDD Trsnalation, Speoial Number 3, M. g&. 3.9. FDB 3.ati~oan 49f49, ottt. 20. Czech kk mooxfra Bulletin %4M Nov Nov 1948. 21. , e , 20 Mar 1950. 22o State Cable 80, Prague, 10 Aug 1950, atsacya:j. of Czech Indust tisl `firaz aport,. 0. !tar. 25X1X7 1. 25X1 A2g 3. (report, of a to r Groh Oder barge crewwa). 4C? d fit . $?.3. , Prague, 6 Nov 1946. 5 6. State Deep. 153, Viennas 3. Feb 3.953. (eatenent of Czech traffic expert in Austrian trade journal.). D. AL- Tr nporte 2. HIS C-& VIII, Sm. 37 3 a CIA- 345 (ReptPit, to the Gzeohoalavak. Central P]anoing Ccmisii,on on the Five Year P3= for Transportation). .4. ABC. M&.y i.JW 1951. Stations . of tha N 1d, Volume 34. and,gMW 5 o 25X1 A2 7. Air Qrder og $ett~e, no. 172120, 15 liar 1951. g 8; Approved For Release 1999/09/27 : CIA-RDP79RO1012A000900030002-6