THE EUROPEAN SATELLITE POWER COMPLEX

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Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79R01012A000900040001-6
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RIPPUB
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T
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105
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November 9, 2016
Document Release Date: 
September 14, 1998
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1
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Publication Date: 
July 7, 1951
Content Type: 
REPORT
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46-4, Approved For Releiii99/09/08 : C1A-RDP79R01083099W004&401-6 --7841BNE. CEVIRAL =ELME= MIMI OFFICE Or RESEARCH AND REPORTS CIA/PR Project 6.51s Contribition to NIE.33 THE EUROPEAN SATELLITE KUHR COMPLEX PART I INDIVIDUAL SATELLITE COV1TRIES8 ECONOMIC STRENGTHS AND WEADESSES 7 July 1951 33016 NIXOIMANGE IN CLAS. t 0 DECLASSIFIED CLASS CHANGED TO: TSOO NEXT REVIEW DATE: f7W AUTH:iotl DATEIMFROW REVIEWER: ENTNO. _ This report has been prepared at the request of the Office of National ........ ? Estimates as a contribution to NIE.430 The material for Section III vas contributed by ?IR Department of State* The crierwaIl elassifioation et the report is Top Loreto Certain seetionay howevers are of lower classi- fication and are so indieatede eft 7eirmseamerm Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09108 :tIA-RDP79R01012A000900040001-6 CONTESTS Summary and Cone1usions0.0.0.00.. 0 0000000000 I, Trends in the Structure of the Economy 0 000000 o . 0 * 5 110 Capacity *film Resources far Economic Development 0 9 0 0 Living ath Working Conditions . OOOOOOOOO 0 ? 0 0 * 14 IVO Foreign Trade arkdrinancel000?ow?000 e ao *via 27 V. Agriculture 0000.00.9... ? 000000000000 21 Vlo Industrial Capacity and Levels of Production ? ? 0 9 0 0 24 1 A. Ferrous Motels 0 ...??? 0 0 0 ? 0 0 0 0 0 ? ? 0 0 0 24 E6 Nonfermus lietals???????????????????? 2E; C. Coal Q 0 0 0 ? 0 ? 0 0 ? ? 0 ? 0 0 ? ? 0 ? 0 ? 00 0 0 0 D. Petroleum 0 . . 0 0 ? ? 0 ? 0 0 ? SO ?O 0 0 0 0 0 0 0 0 210 Electric Power 0 ? 0 ? 0 0 0 ? ? 0 0 ? ? ? O 0 0 0 0 0 0 Pu Cherdeale 0 0 0 0 0 0 ? 0 9 ? 0 0 0 0 ? 00 0 0 0 0 0 0 0 Gr. Engineering Industry 0 ...0 .0 0 0 0 0 0 0 0 0 0 0 0 Ira. TranoPortation 0 ? ? ? 0 o a o 0 0 0 0 ? 0 0 0 0 0 A. Bailroads094.000w aoe?O 0 0 0 0 0 0 0 0 0 0 Bo Highway* 00000000 a ??? ?oo coo oa C, Water Transport . 0 ? ? 0 . ? ? ? ? ? 0 0 ? 0 0 O 0 0 0 0 D. Air Transport 000 ?O 0 ??? 0 ??6??000000 E0 Pipelines 0 . .. 0 .. 0 0 0 0 ?? 0 0 ? 0 0 0 0 0 0 0 VIII? Current Allocations of Economic Reseurces000000?00n IL Estimated Degree of Vulnerability. to Western Economie Warfare o?on?ac000000eoc0000?00000 1:0 Indications of Preparations for War 0 Appendix A. Recapitulation ofIiimitations, Deficiencies, and Esculrements of Intelligence ? ? 0 0 0 0 0 0 0 0 0 94 Appendix 130 Footnotes and Sources ? ? 0 0000000.0 ??? 103 32 36 45 50 65 72 MS 8 8181f3ld Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 /7 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 C/A/RR Project 6-51 adr.sztarr TEE EUROPEAN SATELLITE POWER comma ? (Contribution to NIE-33) ,PI INDIVIDUAL SATELLITE COUNTRIES1 ECONOMIC SIRENCITES AND 14EAKNESSES Ma& iNaivitz.ind.ganslaitga? The Rumanian women characterised by a large degree of Soviat control and 4, great dependence cel imports of machinery ami equipment for industrial deeelopient, currently emphasises production of strategic materia1i3 fqr the Soviet Bloc. Toongt.cange pluming oOntemplates oonsiderable industrialization of the pz.edotninantly agricultural OCOnnitro Operation of the econcer utter emprehenaive plan, however, was not initiated until 1949, and. the USSR, up * to that time at least, had followed a policy of exacting whatever benefits it "mot vital little or no regard far the needs of the economy. In industrial sectors production, has not met planned goals, peasant to oellectivisation has been substantial, and the extent of planned for 1955 is not liltely to be attained. Three.foarths of the S Wilton vcrkers In the Rumanian labor force are caplgred in agriculture. Since 1949 the nonagricultural labor force has fathomed Shoat 25 percent, largely as a result of eati)haais on construction, rate of growth ill not expected to continue. Teolmical training is and labor productivity, although low, increased in 1950. Serious -1.01stages, deficiemies in housing, ley wpm, and adverse working time, all of idtich are producing discontent, are not expected to materially in the *ext 2 years. Despite the large proportion of the population engiged in fuming, =4 la little more then one-third of the national income is derived from agriculture0 n.4. but agrioul?anaLisobaisafae =ports of food to the MM, a draught in 1950, pejjt.nee to collectivisation have cianaajogjagajadabartiagn. eith fihrOrabia Imather and no increase in peasant resistance, avallaile for stocks and exports izt 1952 MeV 'reach 745,000 metric tons. Itenonsase amen iron wel etee3. capacity la adequate to meet &nestle 21111414enin1til? 13nt high percentages of the gat, er113jLand f tbsintlustly mut.wilamtagatid. Ore reserves Oev?p.ci, equiromt is obsolescent,*71111Up2aticed modernisation and IntiOniligin will depart on assIetenee thin tb. UM and the industriaLteed Satellites., anerhelf of an estiriated 'production of 250,000 Iraetric tone of asatifinished stool was Shipped to the USSR and to Czechoslovakian onmments plants in 1950, Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP swum Copper concentrates leado and mine are produced in limited quantities in Rumania aig by-products of gold and silver mining0 Although the tonnages Involved are small, vigorous measures are being taken to increase production gad and zinc for export to the USSR because of ahortages within the Bloc '1).eeause oriheir importance to the militory..esonosto potential* Rumania is sigatuffiagolLin-cault except tlimmusultable_tozAVg. Plana to increase production from 3 million tone in 1950 to 8a5 to in 1955 are not expected to be realized, The q,. .?labluanior-La-seeenvt-enagr-la_Zat of the USSR .177111 rc: It is important both as a source of to R and as a m 4nRtey1 the Total p and probable reserves are approximately 617 pollion metric tons0 But refinery capacity., 98 percent of whiCh is concentrated in the Ploesti area, dropped from over 10 million metric tons before the war to approximately 6 million tons as a result of ha* damage, overinteneive exploitation Soviet dismantling of equipment? Obsolescence, and. retami exploratory and development drilling* It is probable that, despite these handicaps crude-oil output will rise from 406 million metric tons in 1950 to 408 Million tons in 19510 Attainment of the goal of 10 million metric tons in 1955 is unlikely, particularly in ?iriev of the fact that urgently needed drilling eqpipment probably will not be available in sufficient vantitiesa The USSR allocates approximately 80 percent of Rumanian petroleum output within the Soviet Bloc, the remaining 20 percent being consumed domestically. ' The electric power industry produces sufficient power to meet Rumanian requirements and provides small exports to 8algaria0 Postwar Industrial development has brought into use most of the capacity Which was idle immediately after the war. New generating capacity is now required if production is to maintain the postwar rate of increase* Electrical equipment requirements mat be met through imports, with the USSR being the chief supplier. It la unlikely that the planned increases of 1 million kilowatts hy 1950 and another Million kilowatts by 1960 il1 be attaineda PiTsduetion_st-the isiszgalroonfined,_to the_cutput of heavy ied11e,ta3._che3nioa34 metallurgy, end InalPiz' paperintries, Caustic soda, soda ash, and particularly earban black, all exported to the USSR, are important for their contribution to the military economic potential of the Orbit* Although the small requirements for most types o ificant u ry ppe o e USSR, goods are imported; principally from Industry does not meet domestic pment, it does Rtle,a onall Bloc, partiouly In 2 Citekle re thanhaLfie the output of the e su ? stantial quantities of capital the USSR, Hungary, and Czeahoslovakia0 2 TOP SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOPS A. =Mbar of items of critical equipment are received from Switzerland* Austria, Italy, and West Germany. The plan to double the aggregate output of machine-building installations probably will not be achieved, although production goals for certain item appear realistic. Munitions output is steadily increasing in a naMber of plants here production of civilian goods continues sinalltaneaualy, Rumania's transportation system makes an important contribution to the Soviet economic potential for war througb the distribution of petreleum to' the USSR aud the Satellites, mainly by pipeline and by Soviet and Rumanian me:tient Shipping. Rumanian railroads and inland water transport also make - a small but significant contribution in the delivery of petroleum products, particularly to the USSR. Rumanian transport facilities, now operating below capacity, impose only minor requirements on Soviet resources, but ani substantial increase in traffic would neceasitate additional transport eqaPp ment from the USSR, Rumanian foreign trade is substantially below prewar levels, primarily' because the USSR, utich exercises wide control over the Rumaniat econony? Is maintaining and developing only those brandies of industry which are of direct benefit to the USSR, In the postwar period the USSR has accounted anticipated that 1952 Rumania will deliver about half of its an for as mach as 8 ere of the total fOreign trade of Rumania. It is- production to the Soviet Bloc ulthont compensation, OurrentUlhai.71aiLimacia sod Poland are beaming Rumania's principal. trading partners and hence the chief supporters of the economy, From the Bloc, Rumania 'obtains steel and 4 cotton, coal and coke, machinery* transport equipeorav &emir-els, and atharmacquticals. Imports from the West inolude limited quantities of all types of machinery? apre parts, iron and steel products* transport equip,. ment, cotton leather goods, chemicals, medicines* and pharmaceuticals. Rumanian needs for exploration and drilling equipment are acute; in maw instances this eqaipment is not available froth the Bloc. Although the long-range economic plan for Rumania contemplatee the industrialization of -the econounthe current pattern of the 'allocation of resourdes stresses the development of extradtiveindustries and, of agriculture? Rumania Is the largest source of petroleum and petroleum products available in Eaatera Europe ger the Soviet war potential and also is expeoted to provide significant quantities of grain, carbon bleak, some basic chemicals, and Small quantities of lead and mind. Western eponomic warfare measures againat the Soviet Bloc would have a' seriousimpact on RumayrtAo industry, would retard the development prom% -ind-uould lower living standarda. Is outstanding direct vulnerability ------toJieatern measures of economic Warfare lies in its dependence upon the West for 011 exploration and drilling equipment to maintain current levels of petroleum production, The vulnerability of the total economy is limited by - 3 - TOP UMW Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SEC= Its predominantly agricultural character. There is little or no evidence in the Rumanian economy of direct prepare" tion for early hostilities. The carrying out of the industrial development program; however; would significantly increase its contribution to the war potential of the Soviet Bloc.* ; AllitaNOMIND I; For a recapitulation of ltations, deficiencies; and requirements of economies intelligence with respect to Rumania, see Appemitm A4 po 944 litgotc. note references in the text that follows are numbered consecutively In arabic numerals for eaCh major subdivision. The footnotes themselves, together vith references to other sour:senatorial, are given in Appeal.% B9 po 1030 Explanatory footnotes; indicated by asterisks (or, in tables; Ir lower.case letters), are given on the page in the text where the reference occurso 4 as TCP WOW Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SD= I. llsrain-tilaltinadimat?thaissigno km= The basic reorganization dribs monads structure along Soviet lines and constantly increasing government domination of industry and agriculture have resulted in a highly effective state control of most phase of produc- tion and distribution of Rumanian resources. These ocmtrols will probtibly be fUrther extended through 1952. Rumaaa is subject, in addition* to economic control by the USSR, which exorcises supreme authority in economic matters. iSoviet economic exploitation of Rumania* although a source of strength to the USSR, has already weakened the Rumanian economy and is likely to muse difficulties in the implementation of Rumanian eoonomic plans. Moreover, - Soviet control over the Rumanian econcay 'win be further consolidated through 1952. The future developnent of Rumaniats economy will depend largely upon Soviet and Satellite assistance in capital goods and technical Guidance? 3,/ 10. ti the USSR Ito lefalgigaliti=go (1) b311162111211.0.224M. ? Rumazda had One Year Flans in 2949 and 1950, but the plan now in effect is a Five Year Plan (1951.45). In general, the two earlier plans emphasized the extractive, electric power, and heavy industries. The /IVO Year Plan Fartioularly emphasizes the establishment of economic foundations for the industrialization of a primarily agricultural economy.,a/ The attainment of an industrial clammy by 1955 is mI1ke3 because of Rumania es lack of machinery, equipment, and structural steel The Council of Ministers is the top polisswimaking and control organ. In addition to fannulating economic policy., it approves the over- all economic plan, which is drawn up by the State Planning Commiesion,d and supervises its fulfillment. The State Planning Commission receives from the various Ministries draft plans for the economic units under their luriedictiono the Elnistries having coordinated the production plans submitted to them by the industrial centers. The VInistries are responsible far supervision of planning for the entire sector of the soot:saw which la =der their control, with the exception of those enterprises which serve only local needs. Here, administration is in the hands of local authorities. 5,/ The - 5 - TCP SWAIM Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP MET industrial centers are the management and planning bodies far individxtal enterprise* in their respective fields* The centers plan prodnotion (Bubo bat to higher approval), acquire and distribute raw materia1s. mai control sales* (2) 12110.20atiago After the planp broken down by enterprises and including target datee for oompletion, has been approved by the Council ON:Winters. it 10 forwarded to the Winterise bythe State Planning Commission* The Ministries forward to the State Pluming Comission periodic reports on the progress of plan execution which the State Planning COmmission midst verify*V The State Comtrol Commission the Central StatiStical institute, the CatattoMion for Organisation of Co:perativee, and the State Comnission fOr Collection of Agrioatural Produce also help to IMplementplan-controls Contra by %mow over the Rumanian 11100b0Mie plane is effective* This -contra is exerted directly through Soviet pesonnd hOldimgkay? positions in Rumamian industry and governtent and through &Owlet politica control of Rumanian government officials* klatithlattigStraititge (1) &Mina (a) battglaLthOlaniaill. The goversmient nov controls, within the framework of the estannic plen, all of the most izaportant Segmente of. Rumanian industry* In addition to the basic pattern of control developed for the nationalised industries, the Damian government hai adopted other measures to expand and tietten economic controls over industry* First, goverment ministries have been reorganised in order to improve topiegvel control. Over gogernment agenciee and, ematiating the Soviet struOttria, a larger number of ministries with 'tzar:v.40d functioni have been created* 2/ Second. variouil Other crone of governmental contra, such law the. standardisation Commission and the Inatitute for Industrial P3mxaing, have been established as agencies mder the Couneil of Ministers* Si Third, the credit and texation systems have been reerganitied, to favor nationalised or cooperative industry over private enterprise* In the cooperative segment of inddstry the trend has. been toward Int:greased control by the government and an increase in the =ober of state cooperatives, at the expense .of both private cooperatives and Individual enterprises* Although they/hole cooperative structure since Its inception has been mtbject to varying degree of government control, an administrative TOP SECRVI Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SICRIS consolidation inivell 2949 Imoreasel state comtrolo The various coopera- tives are now organized Into national videos, uhidh are associated in national federations, coat:tuned in turn by tbe Central Federation of Consumers Cooperatives (Ciatreeoop)* (b) kilitegaZAISMate Feebler Soviet control *fitment= industry Lticesdisi bt4ont3umaL1; expanded, incremeUmgRunendes economic value to the 'USSR and making the USSR virtually the supreme economic authority in Rumania* Tor example, Soviet control of Rtuanian industry bas been furthered by the eetablisihment and development of joint Soviet-Romanian (Ugric') companies, managed by Soviet Directors-General having nearly absolute powers, and staffed by numerous Soviet officials* These joint companies control enterprises which have the majority interest in all key sectors of the sconce:* 2/ Because of soonomic privileges granted to the Sovrom companies by the state, most large private competitors have been driven out of business* 11)/ Despite the feet that Savrom companies (with the exception of Sovrombank) were placed ander the control of the Rumanian government in February 1949, Soviet control is still exercised over them, 21/ Through domination of Romanian political leaders tr the USSR controls formulation andimplementation of Rumanian economie poll es* The presenoe of Soviet personnel in dominant sectors of Rumanian Indust:mi.)/ increases the effectiveness of Soviet control* Furthermore, representatim of the Couneil of Mutual Econanic Assistant* (CEMA) are located in Satellite countries, and these countries must accept the recommendations of eneh adviserzo as well as furnish the USSR with all economic information that it requires* Reciprocal trade treaties, reparations payments, investments, allocations of raw materials and some manufactured products, and loans supplement the USSR peacetime control over the Rumanian economy* Should Rumania be threatened by invasion or air attack, an Important economic protood to the treaty signed by the USSR and Rnmania on 4. February 1948 provides that all Rtmetthul industries important to the war effort would be removed to the USSR. 222/ (2) Agtiabtalo Collectivisation of agriculture in Rumania is advancing at a elm pece, partly because private land tenure is a. deeply rooted tradition and ' Partly bemuse gweat :Antra over agriculture is being oseamplished by other meane Indepeu1ent landholdings stili comprise the greatest amount of /and area in Rumania, Collectivization was recently accelerated, however, at Soviet instigation, - 7 - Ur SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TM SECRET There are three types of statesoontrelled farms in Ruman4 a. gati contain land owned entirekr by the state and operated ty hired workers. '. anvi also are state-owned, but in theory eaoh farm holds the title to its in perpetuity. The %and Can topsitber field nor leased by the' callective. The szturela Lam is the first step toward complete colleetii. vization, and it pax:ma through various stages whieh are aharsoterized tar the differences in land and inventory ownership and in the methods by which par. meat for work is melet before coming under complete state control. 12/ (3) Donate pepless (Transnertatian. Cemqpnioations. ete.). (a) andgel in the Governmed. . Control of most or the mama? services in %amnia haw been effected through nationalization. In euckservioes as *compress for examples, wbere nationalization is not yet complete, the trend 'toward increased state and cooperative control is evident. The Rhtionalication Lav of 11 Awe 1948 nationalized insurance transportation, and telecommunications enterprises. tanking already had been nationalised. The techniques of control in these fields are similar to those employed in the industrial seotor. All major ezport and import establishments have been nationalized, and thelenistry of Trade controls virtually every aspect of Rumania's domestio and foreign commerce. 'Since 1 October 1950, prIvate traders have teen required to obtain licenses. (11) 2.9gtagia7ithalS. The principal means employed by- the USSR to central economic services in Rumania is the erten:sive use of Sorrom oompaniest including joint banking, transport9 airline, and insurance companies. 2, betentlalatingatLagiffiteljaisliqi stagsajaml. t iin4,1010 ? (1) Sitisd.se2Wsnantlalualawizz The Nationalization Law of 19A8 nationalized almost all manu- facturing or processing enterprises of any importance in Humanist all mining enterprises, and most economic servicetat In this sphere government control is rigid. Since the original c decree, some ahltional industries, such as motion, pictures and private health institutions', also have been nationalized. One of the aims of the current Elva rear Plan in Rumania is to liquidate all capitalist elements in industry and to curb privets cameras by 29550 8 TOP SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOPS (2) adleatkaraellgenggiasurastaaltatte Official figures for 1950 indicate that 2.5 percent of the arable land vas collectivised, 205 peroent vas under joint tillage or cooperative Cultivation, and 8.1 percent was bad by *tat. farms. These per:tentage, ars based on the total arable land according to the agricultural census of,19480 The figure for c011ective fans area is based on data for December 1950, for Joint tillage and cooperative fern area on data for July 1950, and for state farm area on data for October 1950. ? Al etymological survey of the major developments in control of agriculture demonstrates both the methods used by the government to obtain such control and the increased scope of sudh action after m14-1910. In December 1948, even before agricultural cooperatives had been introduced in Rumania,*a speech by Oheorghe Gheorghlu4e1, PirstVice President of the Council of Ministers and President of the State Planning Commission, made it clear that their status was provisional and set collectivisation as the ultimate goal at the government. His statement that colleetivisation would not be *forced* wanted. solely to allay the fears of the peasants, and ever-Increas- ing government control of agricultural supply, distribution, and credit,plus the vse of dimmehnincOmy measures to force the peasants into.collectivsation, have become effective instruments of government domination* A. drastic Iend Expropriation Act published inftedh 1949 provided for tote' expropriation of all land belonging to rich peaaants. Under the 1945 Expropriation Dews cely the larger landholdings had been expropriated* The formation of Machine Tractor Stations and 'voluntary* peasant associatious for the use of agricultural madhinery and equipment from these stations was encouraged as a move toward collectivisation* A new agrioultural tax:law passed on 11 July 2949 exempted peasahts with a production of less than 22,000 lei from all taspayeents and further weakened the position of the remaining private landowners. On 24 July 2949, rhanania inaugurated its first collective farms, modeled on the Sovietjakba, and granted them special eon,* cessions to establish their favored position and assure effective operation. In 1950, both the collectivization drive and the administrative control of agriculture by the government mre imoreased0 Collective farms, Iiihieh numbered 55 in 2949 and tilled only Oa percent of the total arable - land, increased to 1,029, tming 205 percent, in 1950. The State Comission for the Collection of Agricultural Produce also was establithed in 2950 to earry out the collection, purchase, and distribution of agricultural products within the purview of the economic plan. 39/ Forced sales of agricultural produce at discriminatory prices to this commissim have further curtailed the economic power of the independent landholder. A heavier tax: lee imposed in 1950 provided that 47 percent of the total governmental revenue derived from agriculture would be contributed ter only? percent of the land holdings? In June 2950 e Land Pooling Act outlined procedures for the pooling of private land into collectives. The plots involved generally ie sections of TWE Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SICRIE pod land not already taken .by the agricultural empropriations of 1945 and 1949 or otherwise forced Into collective farma. The need to expedite the collectivisation program also vas an impelling faster in the revision of the administrative divisions of Rumania In September 1950. si A further increase In colleetivissation seivity has been yildent In 1951 and probably viii continue through 1952. The Five Tear Plan specifically provide* for a great rednetion of capitalist elements in agriculture by 1955. Soviet control Over Rumanian agriculture is arereisel through political control of Rumanian leaders Ccessanist Party organs, and Soviet persormel placed in official position: In Relneilifto b. AIRMSEIVEiadajkaggitileaLeAlaitragatduitjessaargantrigho The Rmnanian Worker's* Party (the Cammunist Party) and its organisa? tions are important instruments of monad? control. Reonarie policy is dictated tgr the Party and Implemented Usr its membarst, and such Party units as the &maim Workers" Party Plant Cerasitteeis form peverful groups In factoriess urging both workers ard managemeat to greater produetion. Rumanian labor unions, which all workers are required to Jain1 have no independence, being merely devices to control workers. The Amionization of farm labor is proceeding under the direction of workers free? industry. &V TOP SECRET Approved For Release 1998/09/08 : CIA-RDP791R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SCREW Canacitv of Rumen Resonrces for' Reo?nomic Dovelament. aBIREC Three.quarters of the Rumanian labor force of 8 million workers are employed in agriculture. .Nonagricultural labor, however, has Increased by 25 percent since 1949 through the absorption of the unempleved and the induction of new workere. The planned rate of growth of the nonagricultural labor foree.will be slower in the next 2 years, But evenso recruitment of labor from agriculture and Increased employient of in '411 be required, in addition to the Yearkv increment in population of working age, if Rumania - is to achieve it. 1953 goal of 8.0 million market*. Although the training- of native technical personnel is Increasing, foreign teohnicians are still necessary in the operation of Rumanian industry. Labor productivity has increased lathe last year but remains low, 1. amend Distribution of the Labor Pomo Seventy.five percent of the Rumanian labor force of 8m41 lion workers is employed in agriculture, but the government Is endeavoring to increase the nonagricultural labor force through the divers:Wade agricultural labor to meet the demands of industry. As late as September 1949 there were 247,000 unemployed,ofwhom 160,000 were urban workers. vg Many of these were absorbed in 1950 into the nonagricultural labor force, ch increasedlqr 25 peroent over 1949. The rate of growth will not have to be as high lathe next 3 years, however, in order to achieve the Five Year Plan goal of an int:reds? of 38 ? percent by 1953.2/ One of the more significant developmente in 1950 has been the emphasis on construction in whidh troops, as will as political prieoners, youth brigades, and free labOr? haie been utilized. iv In addition, males between the ages of 18 and 56 and females between 18.and 45 ars required_te oontribute a specified amount of labor to the maintenance of highway-so 4/ Plan goals for the Rumanian labor force and its Components for 1950?53 are set forth in the table below. SBIRNZ Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Agriculture ,5/ Industry and Services Industry, Mining, and Construction Transport and Coarsanica? tions Commerce, Public Emplor. ment, etc? Total, Industry and 3019,10011 Student Pool Total if Civilian Leber Force 1950.43 125a. 122. 192. 1951 6,000 5,900 5,850 5,800 900 1,3)02/ 1,600W 1 Boo 20021.230 29/ 230 a/ 24O Q/ 613 at 613/ 57o/ 560 32/ Uhl 241421 lil WM all 400 2,7/ 420 32/ 440 aaLcx/NAN liags Totale are minded because of =certainty of final digitee 'revel gt Tecimical T'?nR p411,Gni Einoienor. Many prewar technicians and managerial personnel were replaced by political appointees when Rmanian induetriee were nationalized. There are Soviet technicians at present in ma gr Rumanian ixdustries, but their number, skill, and location are not known. XV Semiski.Uad personnel are likewise in aihort? euppreand instruction programs have been started to remedy this defioleatcy.49/ Under the Five Year'Plan, 500,000 viorkers are to receive profesaional on-Qs?job training, and 5850= is:tre are to be given training courses. In addition, students are sent. to the Soviet Union and to tho other Sa tee for various kinds of training. gy Detailed information 031 the prodnotivity and efficiency of the Rumanian labor force is not available. Prose cmments in March 1950 32,/ on the extbsesive amounts of overtime worked the lack of adequate training, the poor working discipline, and the need for no= changes indicated dissatisfaction with laming labor productivity. Industrial labor output reportedly increased by 11 percent. from the first quarter of 1950 to the first quarter er-195:6 According to the 1951 Plan them should be another increase of 14 percent. ? BERET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 MGT 30 impansibilitv sad A410414.15-tv ist the LINT -Fere*, Oditiaaal labor Input from Present leben ?orate It Is estimated that Increases In labor productivity, additional overtime and reductions in abeenteeiam wad increase the maa.41our Input of the present labor force by about 5 to 10 percent? %to agagna.PLAWAtansUbuRam. The annual increase of approximately 325000 In population of varking age is insufficient for the aehlevement of planned increaacs in the labor. . force. &V Although goals n individual sectors may be reached through a redietritution of workers attainment of the goal for the totallebor forse, depends upon significant increases in the am:pigment of Wean or MeMbers of other groups not now included in the work force? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 MORE - 1110 pivine and Working Conditioms. big= ?rRumanials 1017 living standards are not expected to improve In 1951 and 1952. The housing shortage is acute, deficiencies inroad supply have foreed holders of ration cards into the tree and bleak markets, and health conditions are unsatisfaotory. Labor morale is poor because of by wageo, heavy work loads, and bad working conditions. 2. IdA1siceaud4tiona. *0 IMPAIR& ? There is an acute Shortage of housing in Rumania. The adoption of the decree of 4. February 2949 on "Reorganisation of living Spacesol/whidh provided that all space in residential premises "superfluous to requirements of inhabitants" could be allocated by official renting agenciea to *homeless workers?" has resulted in evictions an 24?bour notice. In general, a family of two is not permitted to occupy more than one room. PerMermiddlem and war.? class families have been either evicted from their homes or assigned single rooms one rdon for each family. The moat desirable houses and flata are allocated to Party or state officials. A flat of two rocas, kitchen, and bath no, costs appradmately S,000 lei (about $53)* a, month, a prohibitive price except for a ftwhigh.cald Party members. In urban areas, workers pay about 1,000 lei a month, or about 20 to 25 percent of the gross income of an =skilled worker, for one room. Mohan and bath, wherever available, are shared with the other families in the same house, In granting lodgings, priority is given to Party members and workers who *surpass production norma. th) bd. Although It la an agricultural country, Rumania is faced with food( Shortages because of heavy shipments of meat, fruits, and cereals to the Soviet Union, Food is purchased in three ways: with food ration tickets, in governnent shops at "free, or higborices, and at even higher prices in the black market. Only workers and government employees are entitled to ration cards, The following groups and their families are denied rattan cards: those engaged in commercial transactions, those working for wages an privately owned land, pension holders who live in villages or who once owned land which has been expropriated, seasonal and dailylorkers lathe countryside, professionals who are not Party members or state employees, * One VS dollar equals 250 lei at the official rate. , 0 MUT Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 * Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 and domestics employed by any of the groups listed above. Food rationing is applied to bread, sugar, edible oils, meat, rice, macaroni, and potatoes. Kerosene, the most important cooking fuel in Rumania, also is rationed. There are now six categories of ratiau cardss Card A (750 grams of bread a day), for miners and steel furnace workers; _ B4 (500 grams), for manual workers doing menial tasks; B (500 grame)for all other laborers; C (350 grams), for all types of office employees; D (250 grams), for families; and D-2 (250 grams), fa r ohildren. The Miming are the monthly allowances an atypical cards 2 kilograms of Wheat flour, - 4 kilograms-of-corn (maise) flour, 2 kilograms of meat, 0.5 kilogram of fat, a .31dlogram of sugar, and 0.25 kilogram of soap. Several times a year butter and rice are distributed. Rations are insufficient for minimum subsistence, the rationed items are nt. Alum.0-1 amildble, and quality is generally poor. co Health.and. ITOMare? , &manse of malnutrition, poervorldng conditions, and leek of medical care and medical supplies, there has been a. marked increase of ttiberculoeis and.syphilis, particularly among workers. It has been estimated that fran 10 tO 15 percent of urban workers are tubercular and about laperoant are -Although all workers 'are insured, the Communist-controlled General Confederation of Labor Whidh orgenisee and controla the Social Security budget, has not pressed for prompt insurance payments for pensions by theitinistry of Labor. Hospitals and genital& are seriously overcrowded, and medical treat.. ment is not promptly given by the Hinietry of Health. d* Mali& ? Only' a small part of the population is entitled to clothing and shoe rations. Cloth sells at 800 lei (about $5030) ameter in contrelled markets and 1,600 lei ameter at free prices. Asuit of poor quality =ler rationing costs from 5,000 to 6,000 lel,whereas in the free market it costs 22,000 lei. The one pair of shoes distributed each year an coupons caste about 1,450 lei, and a better pair of'sbcioa bought in the free market costs 5,000 lei. VorkinteConditIrona. a* Agfes. Eight basic wage rates, correlated With Skills, are set for the Rpm/Lilian industrial worker. An vvialalled worker receives about 4,000 to 5,000 lei amouth, and a &killed worker is paid about 6,000 to 8,000 lei a month, Take-home pay, however, is frequently reduced by penalties for failure to moot production norms, for inferior quality of production, or for damage to state-owned property, and by deductions for union fees, *donations," and sdbacriptions to Party and laborpuhlications. ' SO 15 6. SEMIS cofApproved For Release 1999/09/08 : CIA-RDP79R01012A0009 40001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Production Norms, Each adniatry, in agreement with the trade =dew eatabliehes the work norm to be accompli r shed for each bandh of activity :nd determinee the quantity and quality of production or operation Uhich the employee must carry out inagiven period of time* Failure to fa= norms results in wage deductions, and the noneweyetaa has caused Uldespread dissatisfaction* co Safe tr Conditions. Employees in the foundries coal and salt mines and oilfields work under adverse conditions. Smoke- :nd gas-filled factories are a safety hazard? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 IvotateiaLlahamstzumese UMW Una Rucania does not -depend upon imports for subsistenoe, but foreign trade is vital to the emcees of its industrialization pmgram and provides strategic I taterials to the other Bloc nembers. Rbcports ?insist obiefly of the products or tho extractive Industries -.4., petrdleum agriculture, and lzmdlering. lit exehange, Romania imports minerals, dhemi:als, and capital equipment. I The great bulk of Rumanian fbreign trade is with the Soviet Bloc countries* -- For apart of the postwar period the USSR accounted for85.perceat of total foreign trade, tot Czechoslovakia and Poland have recently increased their Share. Trade with nonealoc I countriee although limited,?enables Rumania to acquire. koy items needed for industrial development. Soviet control ailment= foreign trade is as thorough as Is its =I ** Rumanian domestic economy.. The influence of the USSR is exercised Soviet...41==Jan joint stock companies and reparations agreements. Zalirgsimassz. Although Rumania sells some industrial products and buys such items ao cotton and coal In foreign markets, the cOuntry is dbiefly an exporter of raw materials and semiprocessed goods and an importer of flniabed goods. Foreign trade is at a low level, partly bemuse of the agricultural character. of the Romanian econcayezdpartly- tycoons the Soviet Union which exercises thorough control in this field, la maintaining and expanding may those sectors of the Rumanian economy which directJ,T benefit the USSR and the Blocs. 2..,,Tragev4th ROnpftlovitet Bloc count/sips. 44 SODO121, Rumania acquires key industrial items for the petroleom, tetallurgical, and transportation industriesV through trade with the nonpaloc countries. In return., Rtnania exports to these countries food, petroleum, and tither products. Total trade with the nonialoc countries roadbed a postwar peak of 673.5 million in 1949? with exports valued at $3809 million and imports at $34.6 million, but declined in 1950 to $45.1 million Uhl& included $16.7 million worth of exports and $2807 mill-toe-worth or imports. Postwar trade and payments agreements have been concluded with almost all of the Important countries of Western Enrope and with Argentina. 2/ West Germs:eye Italy, Austria, and Switzerland have supplied game goods cut off by export controls, Impossibly other Western nations. ? 17 SECREM Approved For Release 1999/09/08 : CIA-RDP79R01012A000940.241a01-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECREE b. &ports to Non-Soviet Bloc Gountrieg. Rumanian exports to its non-Bloc trading partners consist primarily of food products and also include petroleum products and a small quantity of timber products. These shipments were valued at $3809 million in 1949 and $16.7 million in 1950. c. peorts from Non-Soviet Bloc Gounlriep. /n 1949, Rumania received textile and machinery products fran Italy. and Belgium; machinery and apparatus from Denmark; chemicals, medicines, and pharmaceuticals from France; all types of spare parts and machinery, including equipment, from West Germany; textile and nonferrous metals Products fran the Netherlands; textiles, machine tools, and electrical equip. ment from Sweden; textiles, manufactures of base metals, scientific instru. mints, and dyes fran Switzerland; cotton and tanning materials from Turkey; and cotton, textiles and rubber goods fran the US. 3/ Other imports have included bell bearin;s from Switzerland and Italy, war material from Italy, Industrial goods fran Austria., medicines and pharmaceuticals from the Near East (primarily Israel), cotton fran Egypt and India, fi and hides and tanning materials from Argentina. 2/ The total value of' imports from non.Bloc countries was $34.6 million in 190 and $28.7 million in 1950. d.. ammati. Rumanian trade with the non-Bloc countries probably will continue the decline which began in 1950 despite the importance of Western industrial products to the country's industrialization program. Foreign credits?are shrinking, and Soviet reparations requiremente and other techniques are accelerating the integration of the. Rumanian seaway Into that of the Bloc. In addition, Rumania's unwillingness or inability to make reasonable eettle- ments.on nationalized properties and outetanding prewar debts has exacerbated. trade relations, particularly with Seitzerland, Italy, France, and the UK. 3, Tradevith Sevjet Bloc Countries., a. Sigastau The great bulk of Rumanian foreign trade is with the Soviet Bloc, ami Rumania is a net debtor, primarily because of the uncompensated deliveries made.to-the USSR under the reparations agaeements and joint stook company enterprises.. Rumania aoxprts petroleum, food, and tidber products to the Bloc countries and receivel in exchange capital equipment and industrial raw materials. Trade and payments agreements have been signed with the USSR and, under Soviet direction, with all the other Satellites. SEC= Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET , b. limorts to Soviet Blo9 Coyet4eq. The 1950 trade pact with the Soviet Union l/ provided for Rumanian 000Orts orios million metric tons of petrdleum, 130,000 metric tons of grain, 25 000 mOtric tons Of meat large quantities of other foodstuffs, $20 worth or ludber and ludber products, 120,000 Metric tons of cement, 14111ed worth of processed cotton, and other goods. &ports to the other followed asimilar pattern. Mash of the small trade with Bulgaria 10,411.14eintery in nature, Ritmania importing rem materials and returning *mem* pods to Bulgaria, 2/ Electric power oleo la exported to Bulgaria IX- Mounte. apports fram Soviet Bloc Countrtm or the 3950 trade agreement with the USSR, Rumania was to receive? worth of petroleum equipment, $30 million worth of other industrial $40 million worth of cotton, 220 million worth of-medicines .$5 width of rubber, 250,000 Metrics tons of coal, 180,000 metric tons of ? metal products, railroad and othattransport equipment, office land abrasives. ut Poland supplies Rumania with iron and eteel the metallurgical industry, coal and coke, and carbon electrodes supplies machine tools oil pipe, trucks and autAXmohatmsjah les oilfield equit, tools, electrical equipment, and In 1950, Rumanian imports from Czechoelovekla exceeded exports siontry by more than $10 million, while the coMbined import deficit and Poland was about 0 ;zillion. ut InOludina 44teagons of Mohilizetion for War. f. expected that the present pattern of Romanian trade with the Countries will Continue through 1952 and that the USSR will continue 2mmanian.foreign trade for Soviet benefit. In 1951 and 1952, Will probably deliver about half of its patroleum production to the Blec-medbers without compensation. ? 44 Neve of Catrvina_on 7ra42. Ebst of Rumania's trade with non-Bloc countries is oipped by rail to Central Europe? and the volume is -so small that fabilities are not strained. Danube River transport Which carries a large part of the trade with the .Bloc countries, is controlled by the USSR through 'e joint stock compam. 5. Ingginstegagglaajzfelea29.2.2.M. a. 'Taint Stock Campania'. Eleven Soviettaumanian joint stock companies have been establithed In the postwar period to direct the operation of properties formerly owned 19.' SECRia Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 .) Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SE= by Germans anl enterprises Vhich, although included under reparations, are Judged more profitable if left in Rumania. These joint stock companies, known as Sovroms, enable the USSR to exact fixed profits, to obtain a share of the production of strategic industries and services, and to insure Soviet Control of the RUmanian economy vhile avoiding the necessity of large Soviet investments. The economic agreement of 1946 eatablished Sovroms in the tields of transport (Sevromtransport), aviation (TARS), timber (Sovromlemn), Soviet." Rumanian banking (Sovrombank)? and petroleum (Sovrompetrol). f Sovrom. tractor and Sovramehemicale were added in 1948, Sovromgas (natural gas) in early 1949, and Sovrammetal, Sovromcoal, and Sovranconstruction in July 1949.1A/ The most important joint stock 'company le Sovrompetrol? which is reported to control from 40 to 80 percent of almania's oil production* b. Aemegsw. The reparations climes of the Soviet-aumanian arnistice of September 1944 set the keynote for poatwar economic relations between the tvo countries. 17/ The Rumanian reparations bill was fixed at $300 million to be paid off by 1 July 1952 through delivery of petroleum products, gratn, timber, river and ocean vessels, machinery, and other commodities, all valued at 1938 priceso with $110 million still outstanding, Rumanian financial difficulties ?i ached such proportions that the USSR cut the debt balance in half? w Nevertheless, the remaining indebtedness of $55 million in 1938 dollars imposes an annual burden of $41 m4114on in current dollars on the Rumanian balance of payments and further tightens the Soviet hold on the Rumanian economy.* 6, Mens env:141w Trade* Rumanian foreign trade la financed by exports, Ohort-term credits from the Council of Economic Mutual Assistance (CMA), and gold and foreign exchange reserves accumulated before the end of 19450 In the postwar period, Rumania has received the following known credits as Rumanian Postwar Foreign Borrowing Country*, USSR USSR Argentina Switzerland US (Chase National Bank) &wad Ralcbssing 10.0 1947..61 22.6 From June 1948 te Marsh 1950 25.0 2947 6.9 1947 1200 /947 Wii1122.2112. Probably None N.A. $106 Probably None None * Other =productive outlays Vhidh weaken the Rumanian economy are occupation costs, estimated by Gene Nicola? Redeems, former Prime Minister, to total $108 million from Septeabstr1944to February 1948,19/and m41 .4tax7 appropriations', which In 1950 amounted to $400 minion at the official rate of exChange0 200. MIR= Approved Fnr ReleasP 199Q/09/nR rIA-RDP79R01012A000900040001-6 V. Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET Amon gillnio the mainstay of anmanian agriculture and the stwle of the national dist. Production in 1949 and 1950 was less than in. 1948, the peek postwar year, but probably win surpass the 2948 total In 1951 and 1952 If average weather conditions prevail and peasant resistance to 'collectivisation _leas-Dot increase. Deficits were experienced in 1949 and 1950, but tightened ---rationing restrictions will probably permit surpluses In 1951 and 1952. Acreage ----is stable and no reserves exist. Stockpiling is expected in 1952. The numbar clanegilso_thtms, increaSing gladly in the face of strong peasant opposition0 *vresented only 2.5 percent of the total arable land in 1950. 1. ',reduction. Grain is the meet important agricultural crop in Rumania.* Livestock and livestock products beans* and other vegetables ale* are produced. Grainprodution, after iseadhing a postwar peak Of 7.3'mi1lion metric tons in 19489 deolined edbstantially in 1949 and 1950. The short 1950 crop vas primarily a result of unfavorable weather conditions and peasant opposition to collectiviza- tion. Latest Anndal Estimates of Grain Production 194840 ? 121Z =Mg& 1948 70362 3.949 60314 1950 5,732 Probable Range of Variation of Estivate 611974 to 17,749 5,981 to 6,646 5,431 to 6,034 Grain acreage, serloaely out in the World War II period, had readhed only 90 percent of the prewar total by 194S and 92 perdent by 1950. Acreages in 1951 and 1952 probably will not increase and may even decrease slightly because of peasant discontent. ' * Grain unless otherwise specified includes corn (maize),wheat, rye, oats 0 barley, and such minor grains as spelt0 meslin, and buckwheat. SECREC Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approve or e ease 1 /09/08 : CIA-RDP79R01012A000900040001-6 the Riaseniene relied upon grain for *boa 75 perm* Of intake" with oorn Noise) accounting Am approsimetely Alet4. Sims the war the percentage of grain in the diet hes prekty inoreeeed. The fact ibat the population lives near the eubsistence level therefore liudts the extent to which grain requirements can. be reduced. *et of the shortages resulting from the poor 1950 crop were probably met by decreasing grain for livestock !Wed. lietimated Domestic Requirements of lirain 1948,-53 ' ? 541 Tam for Jet listlatta bridaticatilidkuts 39049 6,763 6,6'70 to 6,869 1949-50 6,991 6,410 to 6,571 1950.41 6,394 6,321 to 6,467 19530.52 6,80 6,796 to 6,992 1952-53 6,886 6,813 to 7,009 4. gigilltgan. It is believed that, because of poor harvests in 1949 and 1950, there are no reserve stooks of grain in Rumeuda. No pain was imported in 1949 auol 1950, but small quantities may have been exported to the USSR, Albania, ? and.poseibly wee of the other Satellites. If the expected 1951 crop .materialises, about 0.7 Winos to will be available for stockpiles suxt =ports. 22 .uIl.. MEr APproved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET Estimated Stockpiles of Grain 1950.52 e Range of Ia ofBOW& Veriatian of Estimate 31 ally 1950 None Nome to 291 31 ALIF 1951 None None 31 July 1952 746 514 to 4130 50 Surclus or Deficit, Tightening of rationing restrictions in early 2951 has averted the threat of a grain deficit in late 1951 of 662,000 metric tons. There will probably be a surplue in the summer of 19520 Estimated Surplus or Deficit of Grain (Nxnestic Production) Tear Erdine 33. July 1950 31 4tly 1951 31 JUly 1952 60 P.SZ11S29.0t1413511111111220 Probable of =MEW Variatickof Estimate 417 Now 0.746 ..429 to 675 Now 6514 to 44130 .The first steps toward collectivization were taken in October 190 with the establishment of Machine Tractor Stations, followed in early 1949 V' the organization of smaller farms into farming groups or tillage associations In late 1949 there were 55 collective femme in operation, cultivating about 0.1 percent of the total arable land of the country, The number of collectives increased in 1950 to 1,029 small farm uhleh cultivated 205 percent of the arable land. The percentage of collectivized land in Rumania is too '"- to have an appreciable effect on 1951 grain production. Peasant resistance to collectivization is strong and persistent, 70 440 .? * ?f Sid for IFIDr. Government efforts toward land reform achieved on:17 a small increase in acreage in 1949 and 2950, The strong peasant hostilitYto both collectivism.. tion and the introduction of modern methods of farming makes it unlikely that the aoreage in 2951 and 1952 will exceed that of 1950, and a decrease is possible. Imports of train for stockpiles have not been reported, 23 SEEM Approved For Release 1999/09/08 : CIA-RDP79Roi 012Annn40640001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET VX Iz4i Ce.poity and Levels of Produotiono Ferrous Uetalso Summary The iron and steel industry of Rumania under normal ?auditions is ade= quate for the needs of the country. It is dependent upon importe tar all requirement" of ferroalloys? except manganese and some ohromite* as wan as war a len' proportion of its requirements *Metallurgical soks and iron. oreo Large reserves of ooal ere 1ooatei in the country but only a small part of domestics output is suitable for the produotion of metallurgical poke. Tron Ore roserves0 widely distributed throughout the country ere estimated at over 26 million tri tons but exploitation has been slow? and'Rummia imports a large proportion of it iron ore requirementez Uethods of extracting ores are primitive? installations and equipment -of the snail foundriee and steel mills are obsolesoent end worn*, mad competent mensiferial and teohnicel personnel ere lacking, To inorease produotion* Rummnia must make large investMents in all phases of its tatastryo ----Soviet 'managers oontrol Rumenia's four Urgent steel mills? and in 1.960 proximately 60 percent of the total produotion of eemifinished steel prod. ts vas delivered to the Soviet Control Commieston.for shipment to the SSP and Czechoslovakia* Produationo ? Frem1946 through 1960 there boon 11 increases in iron and eteel produntion Those inarcasass detailed lathe table below? -ogre aehieved through inoreasedwork hours mad more stringent labor disotpline* Estimated Produation of Ferrous Uetals 01101.01.0.11100.10.111. Uotellurgioal Coke -Iran Ore (30.60 Fe) Iron and Steel Sorap Ferroalloye Ilangenese amanita (30.50A Cr) Pig Iron Rem Steel Rolled Produfte 1948-50 law6nto Tons ...~.~....ronwetwaserso as+04..z :-.?,?? -., 600000 600000 70?000 '1750000 . 3260000 350,000 -LA:. 4590T 700)00 709000 N.A.,, 59000.70000 89000 1859000 ' 1750000 . 2009000 2209000 2359000 2509000' 2009000 2259000 2309000 SECRET Approved For Release 1999/09/08 : CIA-RDP79R01d12A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET Soviet managers0slo have arrived in increasing =Where rime 19480 now eontrol Rumania's four largest steel mdllso In 1950 the Soviet Control Commissionreoeived about 60 percent of the total output of seraifinished steel produote for shipment to the USSR and to the armament plants of Czeohosiovakia? 2? EatimatetaelatZEI-.1:21M4-212E212r0 The goals *Tithe Five Year Plan were based uponAttioipated-imports of _equipment from the USSR. Theip_shumals_husjaile4.4.-werberioliss.-1 Awl the Plan targets will not be reached, Production in 1962 win be sub. stantially the same as in 1951? Estimated Produotten of Farrow lista).* 1951-68 Thousand Uotria Tons listallurgical Coke . 'Iron Ore (30.60g Fe) joatIlerrO 39;13.0y6 050 Chromite (30.60% Cr) Pig Iron' Raw Steel Rolled kroducts 1961 and 1952 70 400 Ta.Zra. 623 76 NA? 9 IloAo 250 10000 276 10260 260 800 TA, " 700 Although large coal depoaits exists muoh of their output is unsuited to the production of metallurgioal cokes and they prarvide only a small base fbr expansion of the iron and steel industry? Irma ore reserves are estimated ,et 26 milliou metric tons and range in iron oontent from. 30 to 60 permeate but exploitation has been go slag that Rumamia is not yet freed of dependence upon import80 The chief iron ore deposits are located in the Banat0 Eastern Transy1vania0 and ia the vioinities of Dente Apuseni0 Ehnedoara0 and Uhramureso 30 Domestic Resuirements0 Although little information ia.available on requirements, differences be. lemon 1949 and 1950 are believed to be s1ight0 Estimates are based on tho usual requirements of ran materials to produce pig iron and rag steel? =25. SECRE7 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET Estimated Domestic. Requirements or Ferrous Details 1949.60 Uetrio Toni 1942. ant_ , Uetallurgioal Coke 2004000 225,000 ron Ore 5604000 4004000 rap 1250000 1604000 erroalloys Uangenese 11,A, 11440 Miscalls 11,4A II.A, ne1ybdenum0 Nickel Tungsten, and Vanadiluabf Pig Iron 1764000 2001000 Raw Steely Rolled Pto =tell( EtrriiriarraThil111 IUD= .d( Dommstio produotion is supplemented by imports, 4.0 a22.q11213 Rumanian produotion of iron and steel products is too IVIT to permit stookpiling, Domestio output o alloomm3ditie5 except manganese it be supplemented by imports, Surylus or Defictit3 'Rumania must import all of the ferrous metals needed tO maintain its iron and steeltadustryi, sith the emption of manganese, Domestic produotion ot this or prebe'oly satisfies requirements and permits some surplus,' but no taftormation is available as to the amount, Estimated deficits of metallurgical col= or 1560000 metrio tons in 1950 and 1754000 tons in both 1951 and 19520 Defioits of iron ore are estimated at from 2600000 to 3004000 tons and 5004000 tonsorespective174 for the same periods, There are also deficiencies bf wrap and raw steel* as well as of ohromite4 mo1ybdermm0 nickel? tungstens an4 vanadium* of vthiah only insignificant amounts are required, 60 Internal Limitations, Ulning methods are primitives .and there is a need for modern techniques and mechanised equipment, Installationi-and equipment of foundries and mills are obsolescent and vrorn4 -Furthermore, competent managerial. and teohnical personnel are lacking? Until large.soale improvements aremades there i11 be little advanee in production., cr,26a sEcRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET 70 Tag1e=4222241.s.Ipazitions of llobilisation for Tiara Fleeing the four largest 10441 mills under the nenagement of Soviet speoialists nay result in a small increase in production, A change also nay be expected is. the type of semifinished products produoeds with emphasis on their usability in the *moment programer +be Soviet Blooa rom4 stool pro- duct swill be *mailable for oonsuner ussa SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIARDP79R01012A000900040001-6 51301tET 83 Nonferrous Wald? Summary The prinnipal nonfarm* motels produced =Rumania ere lead and sine, copper production boingn?gitgibl Coppers. lead# and AI= aro produoed only ao by-produott of the coneentration of gold and silver onto? (Gold and silver will not be oonsidered in a paper oontined to industrial metalso) Copper minerals are smelted into oopper mattes which is used to make copper eu1p1ate0 The possible mine produotion of recoverable copper in 1951.52 is from 800 to 800 metrio tons a yea.re atereas requirements are ootimeted et iron 69000 to 8,000 tons, Thus therevrill bo a defioit of from 5,400 te /0200 tons a Year? Assuming that tbo tina smelter at Copse-Uloa hut been built and is operating, zinc and lead produotion in 1951 and 1962 is ostimated at from 49000 to 70000 metrio tons of load and 11=139000 to 43600 tons of sine a year, Botimatel requiromonts for lead.aad sino are from. 40000 to 89000 to eacih annua11y0 and Rumania io expoqted to be self-sufficient in lead by 1952, But requirements tar sin* foreshadow a deficit of from 19000 to 1a500 tonal Ream reserves of copper, lead, and tioo ores aro not 16402 This is probably tho.most important factor limiting produotion of these motils, 4 nonfarm* metalo (wahine formed =January 1950 apparently is oonsolidsting operations of all the principal mites produoing copper, lead* and stimbe InsteXlations and workers evidently ambelog transferred to these mines from other mines in a, vigorous effort to lacrosse produotion of coppers lead, and AMOz Under.tho Five Year Plan, flotation plants are to be built for treatment of those complos ors** The quaiity and quantity of nontormas minerals aveilable in Rumania are not of aufftoient importance to add significantly to the etrongth. of the Soviet B1oo0 and Rumanian induetrial require:m*6ft tor suohndnerale arm ? nsg1igib1e0 1, Copper? ea Production? Produobion of copper is negligible, being estimated qt about 520 metric) on in 1947# the latost year for which figures are available, 11 Output csow- mists only of coppor minerals recovered as a by.produot fromtbo conaaubmdlon of gold and silver ores ? These are smoltsd into copper mattes wbieh is uged to make copper sulfato, Copper metal im not produoed =Rumania, 0. 28 SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET ? b, Estimated Possible Produotkan and C aap joa. t? The Five Year Plan oontemplates that through "the development of exist. ing mines and the opening of new Zama* the produetion of Goppar, lead, and eine ores in 1966 will be 263 pervent of 1950 ouliput411 Possible mune production of reacraerable oopper in the 1951.62 period is estimated at from 600 to 800 =stria torus a year. Capitol* of all processing plant* does not emceed 2.700 tone of copper a year, y Op poreetio Its.Wrementil? Current inibreation on requirements a oopper is leaking, but in 1947 it vas reported that annual eoneumption wee between 6,000 to 7,000 metric) tons tons The requirements for the 1951.52 period are estimated at from 6,000 to 8l , tens a year, Information on stoukpilea i laoking, and the annual. defiolt for 1950.62 is eatimated at from 5,440 to 7,200 tons, inter_nal Limitations, The major Limitation to the produotion of copper In Rumuria is the shortage a ave.ilable oopper ore, Nearly- an of the oopper presently pro- du.oed is a by-product of gold end silver caning, There is one known oopper deposit, "Alton Top." looted in the northern part of Tuloes near the Bleak Se8,0 but it is not known whiet.her this deposit is being worked, liew mine* oontaining SO= 4000000 metrics tone of from 3 to 6 percent oopper Ore wore uncovered in 1939, so Trends.-Inoludin.g Indications of Ibbilization for Wars. The transfer of workera end equipment from other metal mines to oopper, lead, and sine Mines indioatee vigorous efibrbs to Inert:ASO the production of nonferrous metals, A nen nonferrous metale oombize.. formed in January 1960, reportedly has spent 400 million lei for now mine equipmenta prinoipa14 poor. quality machinerr from tbo Soviet %AMU Under the Five Year Plan, nine flotation plants are to be built to prooess ores containing copper, lead, and sins, 23 Lead and Zino, ao Produotion. The procketion of lead and eine in Rumania is a ter.produot .of certain gold and silver mining enterprises in the Gauntry, Production in 1947 VOX 3,316 metric tone of lead end 2,247 Metric, tons of sine.* y In the ease of sino it is not Icnown whether 'this figure represent? eine me metal content of ? sine coneentrates, A sin* palter with a ?opacity of from 6,000 to 9,000 tone of concentrates annue.1.1$3/ was to have boon vonstruoted at Copeampioa before World Tier II, but it Is not knows whether it was completed., The principal mines SECRE'T Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET which produce lead and sine are the Bells, ndne of the Phoenlipor Bata.Uhref, Company and the Baia SprieD Capnics and baiut =thee. b4 Estimated Possible Produotion and Capacity. (1) Production. Estimates based on the output and eapecity before Tlorld Tier II indicate that annual production of lead and sine in 1951.52 ray be from 4s000 to T,OCOmetrio tons of lead and 3,000 to 4,500 tons of zinc (provided the sine molter at Copse-Moe has been, built and put into operation). Rumania is expeoted ta be nelf.suffiolent in lead in, 19520 (2)ii2...1Aae* (a) Icad. There are three lead smelters in Rummies all oonnected with important olvemioal =tikes but intonation regarding their capacity differs* Capanily muy vary from 8,000 to 8,000 =trio tons of lead a year for the 1951. 52 period* (b) gine. Information is leaking on the zino smelter Phichwas reported to te under oonstruation in 1939 at Gopsa.Uica. If this snelter were coMpletea. and put into operation at the proposed eapacity of from 80000 to 9000 metric tots or concentrates ayeari) Rumania's zinc netaly output could be Pons' 3000 to 4,500 tone a. year during 1951 and 1952. ? Dcweirbie Requirements. Before World War IIs RumanWapparentlywasiself.sufficient In load but had no surplus for export. In threat-me peried, Rumania exported all of itm production of zinc concentrates and imported =average of about 4,300 metric tons or slab zinc a yearelif Eetimated domestio requirements of lead and zinc for the. .1948.52 period are front44000 to 80000 metric) tons a year each* Although Rum:lion lead pioduotion sill probably satisfy requirenents by 1952, requir*. ments tor sine indicate a defioit of Prim 10000 to 19500 tons* Information on stookpiling is leaking* d* Intercal Limitations* Lting faatore in the produotion of lead and sine are a shortage of rasnaterials, teohnical personnels -and equipment* The 'Shortage of tier ma. rials -arra probably be t] nost important limiting faster* A recent report indicates that the eonferroun motels oombine has enemmabered difficulties emus? the development of less pronising deposits has been =gloated, and the rioh ?realms exhausted in September 19500 CIO 30 CD Approved For Release 1999/0MMIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SCRIM Zrands...-IncludIns Indications of MeMbkal for War. Information g indicates that the principal gold mines producing copper* lead* and zinc as ty--Trodacts have been consolidated under a non- ferrous metals combine and that all gold Imes not producing these nen. ferrous minerals have been closed down. Installations and workers from the latter are being transferred to those mines and mills shit& produee nonferrous by-products. This auggeste future increases in the production of lead and sine* 3. 9thes Nonferrous Metae. The production of other nonferrous metals in Rumania is =important* and requirements for tin, aluminum or antimony either are supplied by the USSR or other seteutte countries or are imported frac outside the Soviet Bloc. According to the International Tin Study Group* RTENIMit in 1949 imported 355 long tons of tin from Malaya and 25 low tons fran the Netherlands* it in 1950 only 100 law tons were imported tree Malaya* 31 WORM Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Co Coalo SEX2tET ? Surinam Rumania is self-sufTicient tufa typea of opal exoept those suitable for coking. Produation in 1948 vas 2.61millionmetrio tongs in 19490 208 million tons; and in 1950, approximately 3 million tons. The planned inorease for 1951 over 1960 is 26.9 peroents and the 1955 target is 805 million tons but neither of these targets is expeeted to be attainedo It Is estimated that produotion 1.n 1962 will not exesed 4 million tout. Produetion in 1949 on misted of 7103 pecoent brawn ooal, 2109 percent lignite, 505 pereent bituminoua eoals and 14 peroent anthracite. About 85 percent of the brawn coal is produced in the Petrossai area. It is estimated that 150,000 nutria toes of metal.. lurgioal ooke and at least 50.,000 tons of coking wait/ere imported in 1950 to meet Rumanian deficienoiee. Approximately 200,000 tans of coke and 50,000 tons a ooking Goal will have to be imported in 1952. Domestic production of metallurgioal ooks is about 70,000 tans annually* Railroads oonsume 60 peroent or more of the total output (mostly brwan coal -and lignite), and pomer plants take approximately 18 percent) rlearly all of the bituminous *coal and =oh of the anthracite are used by the iron and steel plant at Recite.. Allocations for heating probably amount to around 200,000 metric tans, or 7 percent ot total output, and the remainder 30 used :by 'various industries) Produotiono. Coal is not nearly so important infix+ produation of awry/ in Rumania as in other oonntriee of the Soviet Orbit, beoause of the availability of large deposits a petroleum and natural gas. Coal production in 1948 was 2.6 million metric tOnsils or about 15,000 tone less than in 1940* The 1940 output of 2.8 milliontona consisted of brawn coal, 7103 peroent; 1igatte0 21.9 percents bituminous coals 66 percent; and anthraoite, 1.4perdent. .2./ Total production for1950is estimated at 3 millionmetrio tonso 1 All of the mime, with the exception of those in southern Ehnedoara produeing brown coals are small., ao Brown Coalo Rumania's mal reserves consist mostly of brawn opal, *doh is of better quality than ,ordinary lignite and osa be tUrther improvellwiwashingo The principal produotion id in the vioinities of Pertrila, Petrosani, Aninoasa, and Lupeni in the au's:Talley field in the mouthern part of BUnedoara Province. This area in 1947 produced 104:million matrix: tons& or 87 percent of the gu/t? put of brawn ooal and 6307 percent of the total Rumanian output of coal* N? The sesond most important area is in the vicinity of Asau and Camanesti in num Provinces her the combined output of several mines was 1430150 metric tons in 19470 or about 806 percent of the produotion of brawn coa10 Third in. fili) 32 se SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08?:-CIA-RDP79R01012A000900040001-6 SECRET Importanoe is the coal field lying west andnorthweet of 014 in Cluj Provinee, where there are mines in the vicinity of Agbiresult, Titu, Deno, and Begun.. These mines in 1947 produced 48,811 tons. Met at t1 telexes of produotion oomee fromithe eastern part of Salaj Province, nbereas;Tihau (ollocated) and Lbbolia in Cams Provinoe make insignifioant additione. b. ,Ligni,e!, Licnite prodaettom is soettered in t dozen different provinces but': the fmar provinpes of Lbseol, Bambara** Bnnedoara, and Prahovo accounted in 1947 for nearly 80 pereont of total Rumanian lignite produstion'ot 448,729 metrio tons, The main producing area is the basin south of Oampulung in Liumel Prdvinoe, nhiob.prodused about 126,000 tons in 1947. None of the other pro- vinces. produoed as much as 100,000 tone.. 0. Bituminous Coal. The entire produotion of bituminous ooal comets from Carla Provincse in. eouthaestern. Rumania and Brasov Provinee in *antral Rumania. Production in 1947 vas 139,374 metrio tons. The Anima Doman, and Seoul mines in Cares Province g000unted for 76 pereent of the total tonnage, the ludas mine alone farnisbing sliglatkirxrare thaa 50 peraento It The Mines at Codlea and Vuloan In. Brasov ProVince furnished only 20,8/3 tans, or about 18 peroent Of total production, the balanne omming from& fee -very $mall manse. 117 Anthraoite. Before World 17ar II the produetion of anthraoits vas lose then 4000 metric tone amdally, all frmn the Sobel% (Schott) mine in Oorj Province. It is reported .6.1 that in 1947 production was 4,117 tons from the?Soheia mine and 19,882 tons from tbe Baia Ndua Mine (at Eibenthal near the Dandbe Rivek in Cares Provinee). 2. Estinisted Possible Proauotion and CaPaoitra Plan goals for coal output have not been. met in rpoent years* The goal for 1960 nes approximately 3.1 million metrio tons 1.6 and output fell short by an estimated 126,000 tons, In 1960, new lignite mines were opened in the vioinities of Allfer.Biosad sand Paiete de Sus in Baia Uare Provinoe. Pro. ductionvas.carried,onby primitive methods, but installation of mein= equip.. ment vas plannad.,2/ other lignite mime Isere being opened in stuttered lo,. The oaal target for 1961 .ie an increase ot 25 peroent over 1960, I/ or. ? a total'oftabout 3.8 million metrics tona, but this figure is unlikely to be attained. In the ftrut quarter of 19516 output -was 98,1 peroent of Planned output. 10/ 1h is estimated that Rumania /81U produce 3.6 million tons of. Goa/ in T51 and 4 million tons tn 1962. Anoording to the plan for 19549 prodhation is to read* 865 million tons, 11, and lignite output in partied- leirmriLl be oonsiderably expanded. 33 0. SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET $6 Domti ..........._3.iterame a.6 Railroads4 Coal oonsturiptionby.the rallroade is 60 peroent of total production, In 1946 the USSR supplied the railroods with000 metric' tone of 40810 probably bituminma, and 30000 tons of coke* 12 Requirements are estimated at 146 million tons in both 1948 an 1949# 10 million,tone in 19500 and 2e2 . million tons in 19526 b6 .Electric Power* Power plants ars the sectondmajor consamer of c)a16 About 19e8 per- oent of the output of eleOtrio energy was produoed from ooal. in 19500X and oonsumption is estimated at 5350000 metric tonne Only 150,000 tone o ggite were used, but new thermal stetio3s9 in ths plennieg stage or titular corstruetion9 wall erectly loaresas the uce ur lignite for power prodeotion4 Aocording to the plim tor 19560 power plants ate to) =Sumo 342 vilIionmetrio tons of 1igaite0 afbut this will depend upon the template= of the planned powe.c. ftoi1itie80 It is probable that mot of the increases in power output estimated for 1951 and 1962 will be obtained ftais lignite, Coal reqairements by power . stations are estimated at 1 millimtone i. 19520about? 25 ,percent of total cool prodution ai oomposed with about 18 peroent ,41 total proluotion in 1950- c* Iron, apd Steel Industrz* Trobsibly at least 80 peroant of the bituminmts coal produetion sad 00126 of the anthracite is going to the iron end stool works at Recite* Nevertheles89 domostio euppltee have been inadequate, and it ha a been neaeasary to import ooking coal, local produotionrerrtedly being confined to only on Mines lo- cated et Seou10 In addition* metallurgical wke must be imported* eine Rumanian produotion apparently motet* only about one-third of the elountty'are quiremente* Poland sup lied 300000 metrio tone of coal and 359000 tons of coke to Romania in 1949, )f Czechoslovakia screed to supply 250000 tons of ooke for foundry u? and N9000 tons for blast lUsneoes in the game year, 2.1/ ? It it estimeled that in. 1900 the iron And steel industgy required .185*000 metrio tons of ?Cal, mainly. for ooking purposes, and 2200000 tons of metallurgioel oaks for blast fUrnace00 At least 509000 tone of coal and 150,000 tone of ooke had to be imported By 19529 Rumania will probably have to import 200,000 tons of coke but may need pa sore coal imports than it does at presente Produotion of metallurgical coke in 1952 ie expected to be 700000 mstrio tone, tbe same as in 19609 which would require approximately 1000000 tons of male The balance of the oottl used by the iron and stool plants is consumed mainly in the produotim of gas and *teamo do Other Induetries* The bulk of the oval used by "ariotte other industries is in the form of briquettes produoed from brown ooal edned in the Jiu Valley., Requirements are ec, 34 0. SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET estimated at 2750000 metrio tons in 1.948 and 1949,0 3000000 tons in 19500 and 380,000 tons in 19526 So Domestic Destine Allocations of ooal for heating in homes and buildings are probably About 2000000 metric tons annually at present* Ten percent of the 1947 pro. duotionfrcethe Jiu Valleyor about 145,000 tons reportedly went for house. hold heating. 40. Additional quantities of lignite probably increased total oonsumptLon in t year to 1760000 tone or more? 40 Stookpi1ew0 Coal stooks cannot be largel,because brown coal and lignite are unsuited to prolonged storage, and the better types of ooal are in short &apply. Some dioation of the miss of stooks is found in &report of July 1948 which stated that the railroads were able to aommulate about 1200000 metric' tons because the mild winter of 1947.48 reduoed oonsumptionoaa( It is probable that in a normal winter muoh lase than a manth's requirements are on hand? Stookpiles at the end of 1950 are estimated at only 150,000 tons and represent for the most part 'working inventories? 50 Surplue or Deficit* Aamhough the quantities involved are relatively small, Rumania must impori about two-tbirds of its requirements of metallurgical ooke and most of its coking ooa10 It is estimated that 150,000 metric to of metallurgical ooke and at leaat 500000 tons of edam coal WekrO imported in 1950 and that by 1952 im porta will, be 200,000 tons and 500000 tons, respectively? ? 55 SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SWIM NetImated Rumanian Availability and Requirements of Coal 1948-50 and 1952 tym41*Mi4t __ Production Anthracite Bituminous Brown Lignite Total . 453 12/ tidals 112/ Moment listrie Topa 1242. 1222. 222 35 hO 50 151 165 200 1,972 2,115 2,650 605 675 1,100 Lala L221 ital&Q Stocks (as of 1 Zan) 100 200 biPor 204 30 Subtotal 2a221 314= Exports 0 0 Stocks (as of 31 Dee) 200 175 Total Availability Requiramenta Railroads 1,700 1,700 Electric Paver 410 480 Iron and Steel IndUstry 150 260 Other Industries (including Briquetting) 275 275 Domestic Beating 200 203 Total Requirements Zan Zeal 275 50 Jam 150 50 Zia= 0 ?0 250 150 AsS122 1,850 2,200 535 1,050 185 210 300 200 1422 350 240 /an 6. Warne]. Litktatitaa. Lack of domestic eupplies compels Rumania to import coke and coking coalo Coking coal reportedly is produced in only one nine, located at Seoul. The mansfaeture of equipment far the coal industry is apparently confined to one plant in Petrosanl? mhidh doubtless can provide only a limited number of the items required and probably serves principally as a neehine repair basso It is necessary to import most machinery and tools* The mines in the important Petrosani-Petri1a4upien area are reported to be modern by Romani= standards, and considerable new, equipment has been installed since the ear. Little electrical machinery is used underground, but pneumatic picks are employed to a large extent for digging coal, and the main haulage is done by compressed MC= Approved For Release 1999/09/08 : GIA-RDP79R01012A000900050001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET air l000motives. In 1948 the Petrosant minas were reported&to be working two 12.hmer5hitts, and the labor forgo included samevmmen, which say indioate a shortage of ltbor. 70 Trearlizto Indioatiora t Ibbilisatton l'or Ware Coal produetion has inoreased cradually sines World Tier II, and it is planned that by 1965 production will ree.oh 8.5 million =trio tons, or about 285 percent of the estimated 1960 output. A tenfold inoree.sa in the produotion of metal. lurgioal coke, now about 70,000 tons a year, is planned ibr 1966. Power plants in 1956 are to Gomm 5,2 adllion tons of lignite, as oompared with only 160,000 t0121 in 1960. A number of not lignite =Ines were opened in MO, and plans ibr moo3hanising these operations etre under way. Some diffioulties vill bii encountered, prilioipally in obtaining sufficient equipaent, so that production probably will not be as high as intended. On the other hand, it is equally un- likely that coal requirements will mach the level oontemplated in the plan, and to this eztent failure to attain objeotives for coal production will not handicap the Rumanian eacnorgy. The ambitious program to increase ooal and coke production cannot be judged an indioation of war prepare.tiona, tut when considered in the total, context of Vs. Five Year Plan, it does portend an acoelerated rItt. of industrialisation. which Mulct add materially to the Soviet war potential if obJeetivess were aocolplished. These objectives, however, seen to be beyond Rumanian capabilities, 37 Ca 8E08E7 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SECRET D, Petroleum, Summax7 Rumania is the largest Satellite Mine of petroleum and petroleum produats available to the Soviet Unions In 1950 an estimated 408 million metric tons of orude oil were produeeds and it is probable that despite continued use of uneoonemic methods crude.oil output will rise to 4,8 million in 1951 and 5.0 million in 1952. Teohnioal deficiencies are a barrier more rapid gains* Rumanian refinery oapatlityiunder the impact a war damage deterioration of equipments and oannlbalizations dropped from la, prewar figure in excess ef 10 million metric tans a, year to approximately() million tone? Rumania, recently has had difficulty in obtaining repair and replaoement eqeipment from the tra- ditional souxees it. theUest0 and the Soviet Union.hae partially supplied these requirements, The output of the refineries is generally of poor qeality, For exanples aviation gasoline is 72-ootanee and the lubrioants are of only medium grade It is reported that all thermal ?racking faoilities have abut damn, The output of refined products ia estimated at 4 million metric tans in 19500 40175 million tons in 19510 and 4035 million tons in 19520 Of these amounts0 72-octane aviation gasoline will at:count for about 110,0000 1150000 and .1200000 tons. respectively, Domeatio consumption in 1950 was about 8900000 metrics tons* approximately. 50 percent of prewar consumption. A slight increase in domestic) consumption in 1951 and 1952 may be registered in the military category* Civilian consumption will remain restrioted to a minimum, The Urge surplus of Rumanianpetroleumproducts brings little benefit to the oountry. nest of the output is exported to the USSR* mith smaller quantities going to the other Satellites, and only about 20 peroent of total production is oonsemed internally, The loss of this @aurae of petreleumpro. ducts mould be a serious blow to the B1oo0 10 Production, Not only is petroleum Bumanials basic) indestry, but Rum m Rumania is the oat fi'mportant oil produoer in Europe with the exception of the Soviet Unioe. Over 95 percent of Rumanian oil production its concentrated around Ploesti0 Despite strenuoui efforts* however, the petroleum industry has not met Plan goals. Annual increases in produotion since the war are beooming progressively smaller, Crude-oil production in 1950 was estimated at 406 million tons. V ot1y.53 percent of the 1936 peak:production of 8,7 million tons* 40 3/1 TOP SECMT Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SECRET Refining aapaeity& conoentrated aeound P1oaeti0 has elways been :etch larger than the amount of orude oil available, Prooeasing twilit-tea were estimated to here ar. original capacity in emcees of 10 million tonsannually;1231 Present ospaeity& reduoed by bomb damage& dismantling& eannibalisationl deterioration of equipment& probably does not exeeed 6 million tons& a total still in sxceas of orude production. Only five of the refineries have thermal tweaking re- alities, and these facilities were shut down in.JUne 19601 Since the olose of World Vier II & at least 7 of the 16 most important refine es ham* been ?lewd& AI reportedly beeause of insufficient supplies of *rude oil end the poor con. L _ tion of equipment, In 1950 the estimated output of the operating refineries was as follows Ys Estimated Produation of Petroleum Products 1950 Thousand Lbtrio Tons Produnt Production. Aviation Gaeoline 110 Ibtor Gasoline 878 Xprosene 508 Diesel Oil 628 Llaaut 1 108 Fuel Oil and Distillates 438 laricante 12 Resideals 92 Othees 230 Totel Avietton produefid are of madiumquality, , 4090_ gaeolinn le atraight runetth an ootane number of 72, The lubricant's 2, la_stAiLte.P...dolailatEry_tun_and_Cg....SEaei, The 1951 crude-oil produotien goal ia 116,7 peraent of 1950 output& or about 5.3 millionmertree tens 0V Under the Five Year Plan the seal for 1955 is 10 millron tons," Both appear unrealistic beeauee of the premature exhaustion og existing fiel and the Allure to unoover new deposits? It la likely that by forcing the existing field output can bo immreased to an estimated 4.8 millior million metric: tons in 1951 and 5 million tons in 1952, Despite recent efforts to obtain replaoement and repair equipment and re. ported pleas to oonstruot new refineries&-notably two installations in UOldavia (one a creaking plant)p .?0 is doubtful that the actual pattern of refiner output will vary =oh in 51 and 1952, The following table is based an this aasumption.. Approved For Release 1999/090118 0411,n4' DP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SECRET Estimated Produotion of Petroleum Produots 1951.52 Preduet ....If" Prodwotion 198]. -- 40.0.......summloilalloft, ....... Aviation Gasoline 115 120 Ubtor Gasoline 915 953 Kerosene 530 550 Diesel Oil 655 663 Ulm.* . 14456 14205 Axel Oil end Distillates 455 474 LUbrioants 13 13 Residual, 95 100 Others 242 252 ? Total 4 350 33 12a2tiga.:.........teE111.* 07.1 .is the principal source of fuel for industrial and civilian .1441. The stringent -restrictions on domostio requiroments nocessitated by Soviet eaa ploitation of the oil industry are impeding the development of tha Rumailan. econow4r, Shortages of gasoline9 keromes and fuel oil have been reporteds and estimated domestics oonsumption in 1950 was only about 50 percent-of.prewar Consumptim in 1950 is shown in the following table by produot and class or oonstuner; Consumption of Petroleum Products 1950 Thousand Metrics Tons Produot Civilian. Illitary Total Aviation Gasoline 2 11 L3 Motor Gasoline 52 136 188 Kerosene 111 111 Diesel Oil 161 76 237 F4e1 Oil 274 16 290 LUbricante 11 21 32 Others 19 Total 030.- 260 800 Ths principal oonsumers in the oivilian categdry were industry* 35 peroent; transports 27 percont; shipping? 19 percent; and nett.: tranzports agricoultures households end air transports 9 peroent* Civilian allooations are not likely to increase in the next few yearesbut Jai:vases in military Approved For Release 1999/09/08 40LIA-RDP79R01012A000900040001-6 TOP SECRET Approved For Release 1999/09/08 ? CIA-RDP79R01012A000900040001-6 TOP SECRET requiroments are expeotedo By the end of 1952w dorestic uonsumption mar reaah about 1 million metrie tonso 40 8tILV1221* Permanent storage facilities in Rumania are extensive* Capacity of the principal depots is estimated as fellyso Storage Capacity Thousmi 'Istria Tons Location * ..21MAG Crude Oil at Oilfields 660 Refined Products at Refineries 18639 - Unitary 106 Total AAA In, addition.'tbere are a nuMber of depots at airfields8 old depots are being' expanded8 and new faellities are under construction. Nevert1e1ess0 barrels were reportedly collected in the spring of 1960 by the Uiniatry of Defense to: oil sterageea() There is no information permitting an estimate af the quantities stoo iled. Shortages of gasolines kerosene, and fuel oil ova be explained in part by efforts to increase stookao 50 S112...M....... 02 t;fieit0 Rumaniao the largest oil produoer among the Satellites, has a large sur. plus of petroleum products,' All of the crude oil produced is donestioally re'a ? tined, and the exoess produots are exported 8 chiefly to the ussn, Rumania's only deficiencies ars high.octane gasoline and aviation 1ubricants8 Which are imported trot the Soviet Union in unknown amounts() The Nstimated surplus in 1960 is them in the table belowg Petroleum Produot Surplusee and Defioits 1960 Thousand Ustric Tons Product Outpu Consumption Surplus Defioit 011106.3101?1111101111111V Aviation Gasoline 110 13 97 Deter Gasoline 876 191 686 Kerosene 608 111 397 Diesel Oil 628 234 394 Fuel Oil and Distillates 436 290 146 Wbrioants 12 32 20 Lasut 18108 18104 Other 322 19 303 Total -1946Q9 890 41200 20 =111?11 Approved For Release 1999/0910=-RDP79R01012A000900040001-6 TCP ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SECRET SOMA of the surplus for the past tew years has been, used to build stooks Possibly 5000000 metrio tone were shipped in 1950 to other Satellites and to Finlandp vd.th small quantities going to Western Europe and Israel. These shipu nents were mostly motor gasoline and lUbrioants. All of the surplus of marat1V and fuel oil is shipped to the USSR. Considerable quantities of aviation gaso- line. motor gasoline, kerosene and diesel oil also are taken by the Soviet Union0 60 Internal Limitations. The ohief limitation on the Rumanian petroleum industry is the wasteful method of exploitation by the Soviete. who show little oonsideration for the future of the Rumanian econenve ftrthermore, shipments of drilling equipment lase been out aft by the West ani only lted suppliet have been obtained from Czeohoslovakia and the USSR, Some of the refineries damaged in World Tlar II have not been reactivated. Equipment iz wearing outs and repair and replacement supplies are soaroe. It is possible that the condition, of the refineries would preclude inereased operation even if more crude oil were available? A large number of experts and technical personnel have left the oountry, and same of . those Who remained havw been imprisoned or replseed. None of the refineries haa been modernized. as 42 as TOP SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SECRET 70 Trends.Ino1ild4rg Indications of Lbbiligation for Taro Although Soviet efforts appear to be shifting from the intensive exploitation of old eilfialds to the disoovery of new ones and to oonstivuotion of additional refinery ao.paeitra the extent and progress of this trend are unknowns Rumanian Crude Oil Produetion 1960 ,Thousand Lletric Tons Drilling District amtilt Ploesti Area UUntenia Ur 33104 Boidasti 33907 Campine 13008 Buiaoi 76407 Lbreni 44606 Targoviste 45106 0ohluri 41300 Sovrompetrol il 4547.0 Tots10 Ploesti Area 424 7 9602 Berea (Buss.u) 11203 24 Bacau 2:1/ 6300 14 Total 110.24 42( No breakdown by drilling distriat is 100.0 ?xessasani:". available* Sovrompetrol produced an estimated 170000 metric tons' 1.173.dav3a about 460000 meal? tone TOP SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SMUT Estimated Annual Capacity of Printlipal numanian Operating nefineries.s( Thousand Detrio Tons Refiner' Location Crude Distillation Thermal Crooking b/ Total ConsordisArega Ploesti 19000 193 19193 BomanagAmerioana Teleajen 750 279 1$029 Stesna.nommia Campine 800 . 800 Oreditual Lanier Brasi 275 106 363 Astxa Pomona Ploesti 1s650 495 4145 Golobbia Ploesti 500 216 718 Total 4014 w wwww 141,29), 80o68, ?????????...".? XIDA an on oapao II WS a Sep 0? a I on ? refineries listed there may be a few small ones operating, but they are unimportant, l Thermal creaking faoilities have been reported *closed? There are no catalytio.oraoking units, - 44 Approved For Release 1999/0906sECNORDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET E. Electrio Power. SummarY Rumania's eleotrictity requiremwnte are smalls and the produ,tion of electrio power is now and will remain sUffioient to meet those demon& and provide a limited amount for export to Bulgaria. Industrial plants and mine consume nearly two.thirds of the total output* Although production doubled from 1942 te 1060, the inorease was aohieved through fuller utilisation of existing eapaoity rather than by adding new fa. oilities. The current expansion prograr stresses greater UBO of lignites whioh now ranks behind gas aud petroleum among the energy sources of .the industry. The expansion procram is dependent upon imports of teohnicians and equipments and it is not expected that the high capacity and production targets set for 1955 and 1960 Will be reaohed. Econoric Importanoe of the Industiz. Most of the elctrie power produoed in Rumania is consumed by industry* Sinoe the economy is relatively undeveloped' lxvwevers industrial requirements for electric' power are small. The growing proportion of marufaotured goods Or total Rumanian output :lakes electric power inOreasingly important to the scone:gr. Nonindustrial use is negAigible, only 25 percent of the population being served by elootrie power0.1( 2. PreardPrwanEmtTrendsandDcrrelots. Eleotrio power +capacity is still about the same as in 19420 but output has. - more than doubled sines World War II. Over half of the thermal *opacity uti- lises; methane gas and coal for fuel. Power plants in the Buoharest and Ploesti area depend upon petroleums and supplies are not equal to demand. Available fuel supplies are limited, and neither rationing of fUel nor partial con. version of power plants to the use of gas his waved the problem of fueling the eleotric power industry. The principal goal of the Ten Year Eleotrifieation Plan (1950.60) is an inorease in oapaoity of about 1 million kilowatt* by 1956 and a further in- areal. of 1 million kilowatts by 1961C:102.ot Produotion is to be rore than doubled in the same period. Although it is ly that capacity and production will inerease as fast as soheduleds the industry oan expand sufficiently to meet reqt.draments through 1952. Pixel supply may remain& problems particularly if other domande for oil and gas increase, immune the industry cannot quiokly convert to other fUels. Thm greatest concentration of generating capaclity is in the Bucharest. Targoviste.Ploesti areas where possibly is maoh as 40 percent of total Rumanian capaeityls coneentrated. The Stalin (Drascov)0 Turbo., Tarnavenis Petrosanis SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET Reoitas and GalateaBrailt areas are the other principal power centers to? gather oomprising an additional 40 peroent of the total' Some of these areas naw have a surplus oapactity and ean expand productiaawithout additionn. It appears that the installation of new eapaoity is following the same locational pattern as in the pasts with the exception of hydroeleatrio faoilitiess whiah pre being built in the northwest. 30 Internal Limitations, !n. ozriog Petroleums gas* and lignite are the principal souroes of energy for the produotion of eleotrio power in Rumania, The three regions of P1oagti0 Transylvanik and the JitiValley0 Titer, large quantities of oil* gassand lignite are found* are also the areas of greatest oonaentration of electric power in. stallatione0 &mime of postwar diffioulties ir petroleumproduotions there is a etrong tendenay to limit tin of oil in power plants* and gas and lignite are being utilised at a higher rate, For examples twice as muoh gas was used in 1980 as in 1948031/the increase ooming through greater utilisation of gas- isonsuning generating oapacity already in existence rather than through the addition of new unite, Potential fuel resources for power plants are exo tensiVes and present supply shortages are only temporaz70 Rumania is well endowed with water resource's for power generation.' Thebrdroelootrie power potential has been estimated at 5.1 million kilowatts* f but only 1 percent of the total le developed* 'Rumanians streams are widely dispersed* permitting bydroeleatric development in lament every area of .the oountry and radiating the need for transmitting power and fuel over long distances., b0 Electrioitz Generating Plants. About 600,000 kilowatts of capacity are now available for meeting power requirements. IV This capaoity in principally thermals hydroelectric, units. 'oompriming about B percent of the total.. The proportion of thermal capaoity using various types of fUels is not accurately ]mown s but production in 1950 trri all energy sources? is .estimated as follows Use of Energy Sources in Eleutria Power Production 1950 Ener Souroe Peroent ,????????????????110?0 Natural Gas 4063 Oil Products 2908 Iligharade Coal 6,1 low.grade Goal and Ilaste 1307 Other Fuels' . 201 Water Power 860 Total 10000 ? 46 Approved For Release 1999/09WEIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET NO further inorease in the USIP of gas in power plants is planned and lignite. burning and hydroelectric plants probably will produce an increasing proportion of the total power output? The Ten Vier ElootrifiOatien Plan eevisages the installation by 1955 of au additional 960,000 kilowatts of oapaoity0 as well as the operation of 100,000 kilowatts of equipment now idle. (Over half of Rumeniate generating equipment is more than 20 years old but is still servioeableo) Bydroeleotric capacity in to be expanded to & point where it would constitute 1705 peroent of total capacity? The eleetrification telegram, is to reoeive 1140 percent of all investment funds allocated between 1950 and 19550Y The present rate of eon.. struetien0 however, will add only 50,000 kilowatts of oapaeity by the end of 19520 At aey rats* the Ten, Year Plan palsy even if aohieved, will be justified only if Rumania builds up industries that are large users of eleotrio power0 ;niche& prooessing of nonfetreas metals0 eleetrie metallurgy, chemicals& and eleotrio railroads? CD 112vallgeLEWEsto lemmata lacks national or regional transmission networks, little effort being made to link ooneuming *enters and power generation arose to obtain greaterutilizati.on of existing oapaoltyo The pattern has been to provide each oonsuming center with its own power plant, Power plants between Buoharest and Stalin (Brasov) are loosely linked, Although work is being oarried on to improve and extend the transmission lines particularly in the area of Tarcoviste and Stalin (Brasov), little ha: bean aocomplished since the ware A 60.kilovolt lino fr.= the Bucharest area to Giurgiu for the transmission, of power to Bulgari& was completed in 19494 Produotiono The following table gives figures fer pasta present& and planned produottea of power .2/1: Produotion of Electric Power 19384 19500 19550 1960 Milieu Kilmatt Beurs lam Thermalelootrio 2dugsk_eootri JNIAA 3.938 10003 145 1,148 1950 14940 160 2,100 1955 50690 760 4,350 1960 44660 2,340 78000 The oondition of the generating and transpiasion equipment is =oh that the average rate of utilisation of aapaoity probably will not be more thee 48000 hours a years or about 46 percent of full utilization, Production in 1952 may oo 4,7 oo SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET reach 2,7 billion kilowatt-hours, if?eresont evocity is incroasod by putting_ info operation some of the equipmont nao idle, by adding 50,000 kilowatts of neo generating equipmenti and by operating the total at a rate of 4,000 hours, Looting the 1955 production goal mould require tha installation of large amounts of now capacity, which is not likely to be done b* ammakia: The following is the consumption pattern according to the Tao Year Electrification flanyt Electric cower Consumption 1950 and .96O 10 ono op 01.01...11m.???????????? ? 1950 of Total rilliop..Kilornktt Hours Constueer Consumption' 1960 Consumptica7-7g of Total Industrial Plantt and uinea 10310 62,2 4,330 61,6 Electric Traotion 2 0.1 330 43% Urban vublic Servtoes Street Lighting 70 ZOO Streetoars and OU0Sed 80 200 14ater Supply) eta, 40 320 Total Urban Publio Services 190 940 520 704 Urban Uousoholds and Firms 220 10.4 750 10,7 Rural. Communities 20 1,0 230 333 Losaes and iTivate Use or fower "Jaants 358 1743 870 12,3 Total 2,100 :awn= 100.0 7,030 10000 1.1??????? ?ffl? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET 60 Int Requirements. Rumania has sufficient manpower, fuel, oporating supplies, and repair facilities to enable the countrY to maintain both existing electrical generating and transmission equipment and any small additional amounts that may be In. stalled. Largeftecale expansion. of electric) power capacity, however, would require imports of teohnioians and almost all types of electrioal equipment. Soviet Blocengineets are nmrt supervising the construotion of hydroelectric) plants, but the Rumanians themselves can construct thermal stations, except for the installation of foreign equipment. 7. tulnerabilitr. Rumania is self.sufficient in equipmentIsupplios, and teohnological skill Leoded to maintain or slightly increase output of electricity9 and theraore the eleotrio power industry oannot be considered vulnerable to measures of warfare unless a large expansion is attempted. 49 SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 MEW Chemicals. The Rumen-tem dhemical industry has developed rapidly in the postwar period. The country poem:twee ample supplies of the raw materials essential to production of Chemicals...Salts cokes limestone pyrite ss and natural gaa (methane)for fuel? Production haat been limited largely to the heavy industrial Chemicals used by the petroleum, metallurgy's and pulp-paper triea. Rumania is 8e1f6sufficient in suVamle acids soda aths canstio soda chlorines hydrochloric acid calcium carbide, pyrite ,methanols and dlyc:rise. The country also produces synthetic ammonia nitric acids nitrogenous fertilizers (ammonium nitrate and sulphateeand superposphate fertilizer. Output of nitric acids bowevers is inadequate for domestic needs and both nitrogenous ani superphosphate fertilizer must be imported. The plvduction of synthetic organic chemicals is undevelopeds and eudh as coal tar and aniline dyes oxalic acids and coke Chemicals benzols naphthalenes etc.) =est also be imported. Rumania also is deficient In sulPhar, The principal Chemicals exported have been caustic soda and aoda lash, both of which are in short supply within the Blocs ands to a lesser extents hydrochloric acids calcium carbides and wood chemicals? Rpmanian Writes is an Important addition to the Ortdtes tete sugar. Imports of I Chemicals have not been sufficiently large to cause a serious drain on the Bloc. Fertilizers have been received froz the USSR, and Czechoslovakia Ima been the main supplier of organic and special chemicals? The bulk of the output of chemicals originates from five principal plants, A sixth plants the Deft State Works at Uceas may be completed near the end of 1952, Soviet technicians are direoting the works and Soviet equipment will be installed far the production of synthetic ammonia* nitric acids and =moans nitrate. With the addition of the new. Dees plants Rumania should become nearly self-aufficient in basic industrial chemicals but will remain dependent on imports for the small volume of organic and special chemicals not now produced. The Rumanian rubber industry is smalls and finished rubber products are imported to meet domestic demand. Synthetic rubber is now being produced in Rumania tut output is small.) Four tire plants two of Which produce only bicycle tiiiess are in production. Carbon.black production has greatly increased in postwar years, and most of the output is exported to the Soviet Bloc. 50 ? Approved For Release 1999/09/08%A-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Calcium Carbide. a. Productim. Rumanian production of calcium carbide is estimated am follows animated Caloium Carbide Production 1948..50 2948 NCO ai 2949 5, 56 a/ 1950 5,800 The "Nitrogen ? plant at Tarnaveni (Diclosanmartin), formerly part of the Solvay Cadbine is the only known calcium carbide plant Rumania. Its reported annual capacity is 30,000 metric tons, y but the peak production, attained in 1943, was only 6,227 tonsilbecause only one of the three furnaces installed is used to produce carbide, the other two having been converted to manufacture ferramangeneae. The actual prodUction capacity for the plant, therefore, is probably about 10,000 metric tone a, year, b. Estimated PossOle Proftuctpon and Canacitv. Carbide production by the Tarnaveni.plant is expected to reach 6,000 metric tons in 1951 and 6,200 tons in 1952. One 1949 report stated that the two furnaces now used for ferrananganese alert be reconverted to produce carbide/ but there is no additional information indicating that this conversion has been or viii be accamelithed. Asnestielteauiragents. The output of calcium carbide-ls sufficient to cover total require... manta:, estimated at about 4,500 metric tons a year, and leave a surplus for export. Carbide is used .in Rumania principally for the production of acetylene gas. There is no known production of chemicals synthesised and derived from acetylene. Before 1940 the "Nitrogen" plant at Tarnaveni produced calcium cyanamide from carbide and nitrogen but the cyanamide furnaces have been replaced with other installations. it/ There are no available reports in? dipating actual or intended atockpiling of calcium carbide in Rumania. The exportable surplus in 1952 may amount to About 1,000 to 2,000 metric tone. d, IgteraalLimitationa.. Rumanian production of both coke and limestone is adequate to supply the calcium carbide industrY. 51? SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SEORIO e. Irends..-Inalmdtla Indications of Mbbilisation for War. No information received to date indicates that any significant increase in the production of carbide or the construction of new facilities is planned. 2. gmullasJadlo a. DAV&lige. Rumanian production of caustic soda is estimated as follows* Estimated Caustic Soda Production 1945..50 Metric To Du ExamLim 1948 13,791 1/ 2949 23,8102,/ 1950 26,000 Caustic soda is produced in three Rumanian plants, located in Turda, Ocna Nhresului, and Ternaveni? which have a combined capacity of 36,000 metric tons a year. The Turda Chemical Works, heavily damaged in World War II it restored in 1949, produces caustic soda by the electrolysis of brine method. The type of abler...alkali cells installed la not known, but annual capacity is reportedly 20,000 metric tons. 2/ The Bioara plant (formerly part of the Solvay combine) at Ocna-Muresului produces soda ash by the Solvay process (lime-eods) and caustic soda by causticising soda ash, The capacity for caustic soda has been reported at 13,000 metric tons a year but actual production is undertaken only when the production of the Tat.da plant is insufficient to meet demands. Output could be increased above this figure, tut only at the expanse of soda ash production. The nitrogen" works at Tarnaveni has a caustic aoda capacity of about 3,000 metric tons a year. I/ The process is electrolytic, and Billiter-type cells are installed. The equipment apparently is old and constantly in need of repair, for only one- third of the cells are available at a time. Conversion to modern mercinpr. type cellslias considered in 1949. il b. rituladed-Pogsj,b12 Itodpction wd,Cancysity. The estimatel 2951 production figure of 33,000 metric tons is based on a planned increase of 127.8 perefert over 1950, ,?/ and 2952 output is cal- culated at 36,000 metric tons, or an estimated inorease of 108 percent over 2951. Under the Five Year Plan, two new caustic soda paamts? using the electrolytic process are planned. 11/ It is =likely that these plants will be in operation by the end of 1952. Ms 52 OD SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SWAM c, agestioRecuirementa. Rumania is selfueufficient in caustic soda and produces a surplus for export. Domestic needs are estimated at 18,000 metric tons in 2950 and 241000 tons in, 1952. The soap, petroleum refining, and pulp and paper industries consumed 11,000 tons, nearly half of the total output in 1949. Lesser consumers are the rayon, vegetable oils, lye ankolegneers, textile, and other miscellaneous industries. In 1941, nearly 3,--4-artons were exported, and large amounta will be shipped to the Soviet Bloc countries in 1951. The heavy demand by other Satellite countries, especia117 East Germany, for caustic soda makesit estmanely doubtful that this commdity Slut been stockpiled ix:Rumania. Surpluses are estimated at 8,000 metric toms in 1950 and 12,000 tons in 1952. d. Limestone and salt, the raw materials required in the manufacture of caustic soda, are found in ample quantities in Rumania. Production difficulties have been reported at the Mitrogen" plant at Tarnaveni. The equipment is old and constsnt17 in need of repair. The Billitera.type cella 'la& filter cloths, aibestos (for cell diapbrapik: and experienced specialists to operate them also are needed. A postwar report stated that the Solvay- process equipment at the llioara plant in Ocna4quresalui Was badly worn but that situation may now be improved. It is believed that replacement parts to maintain ipatallations at all three plants currently are scarce. If this condition ahould continde maximum production may be limited to 27,000 metric tons a year, or less than 75 percent of capacity. e. Trende--Includinz Indications of Motdlizetion for liar. Despite Rumania's self.sufficiency in caustic soda, great efforts are being exerted to increase production. The construction of two caustic soda plants with a cobbined capacity of 15,000 metric tons a year is projected In the Five Year Plan. Nothing is known about their locations or the progress made in actual construction. These plans are probably not an indidap. tion of mobilization for var? because Rumania requires expanded production of caustic soda to meet increased domestic and foreign demands. 3. 2191101. a. rroduatin Rumanian production of chlorine is estimated as follows:* * Calculated from electrolyticallr.derived caustic soda production.. , MORN - Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : C!A-RDP79R01012A000900040001-6 SMUT Eetimated Chlorine Production 1947-.50 Metric Toep Zrgsbiatota 1947 11,000 2949 11,000 2949 12,000 1950 13,000 Mhdh of the chlorine produced is allowed to escape into the atmospherei and cray a small amount, about 500 metric tons in 2949 -and about 900 tons in 3.95q4/ is liquified. The remainder is used to make hydrochloric acid (estimated at 3,200 tons in 1954 Calcium chloride (about 4,500 tans in 1950), and a limited number of miscellaneons Chlorinated Chemicals. The following table estimates the amenable Chlorine (purified for use): Estimated Available Chlorine 2947-50 mittikasial Ine Italadlisa 1947 29000 290 39000 1949 4,000 2950 5,000 Chlorine is produced by the Turda Chemical Perks at Turda and the "Nitrogen" plant at Tarnameni (Diciosanmartin)9 Both produce chlorine and caustic soda by the electrolysis of brine method. The combined annual capacity for the two plants calculated on the basis of their cauatic soda capacity, is about 20,100. metric tons. The estimated chlorine capacity of the Turda CheMical Works is about 179500 metric tons enter, and current production is probably about 12,000 metric tons a year. The plant also produces same synthetic hydrochloric acid and calcium Chloride. The "Nitrogen" plant at Tarnaveni haa an estimated chlorine capacity of 2,600 metric tons a year. Current production is probdbly 19700 metric tons a year. The "Nitrogen' plant supposedly also produces synthetic hydroChloric acid. bo IdattsataLetaitat2raidisiMallgaitaio Chlorine production and capacity for 1951,42 are estimated as follows: 0.54. Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET Estimated Chlorine Production and Capacity 2951?62 Utz IlsdgailsoL ista 24,000 20.100 1952 15,000 20,100 Tans These estimates are projected figures from the 2950 estimate and are based upon probable electrolytic production of caustic aoda in the same years. Under the rive Year Plan, two flew plants fdr the production of caustic soda and chlorine by the electrolytic process are to be built. 3/ If these plants are constructed, it is unlikely that either of them will begin operation by the end of 3952. o agleej..ZAERSESSEdg,o The production of chlorine in Rumania? estimated at 5,000 metric . tons in 19500.6,000 tons In 1951, and 7,000 tons In 1952, is more than enough to meet all domestic demands. There are no known imports of chlorine, nor are aqy exports reported, an indication that liquefying facilities are inadequate. Most of the available Chlorine i? used in the production of hydrochloric said by the synthetic process (Combustion of chlorine in a slight excess of hydrogen). The other major consumers In Rumania are the petrolema-metallurgicalr.glue? and textile industries.* Production of calcium chloride also satisfiep all demand.. The synthetic organics chemical industry is not. develoPed in Rumania; so chloride is not required for gyt. thesizing purposes. Requiremente of chlorinated organic chemicals are imported, There are no Indications. that stotkplles of liquid Chlorine are being establiehed. Rumania produces slightly more chlorine.than.it consumes, but it is believed that apy excess production is lost In permitting the gas to escape. Internal Idmitatione. Salt, the basic raw material for the production of chlorine, is plentiftl? but Rumanian production is limited by shortages of replacement parts for wern-out equipment, facilities to liquefy and recover surplus production, and pressure cylinders for shipping and storage. e. 1 41.? ? Production or chlorine is indreating? not because of greater direct demand but rather because chlorine la a bywproduct in the electrolytic -method of manuf4cturing caustic soda, for which Soviet Bloc requirements are increasing. * The Turda plant furnishes mt.& of ito liquid chlorine to the Zarnesti cellulose factory. 2/ si 55 so Approved For Release 1999/09DIMICIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Two new plants are projected in the Five Tear Plan, and their coMbined chlorine capacity would be about 13,000 metric tons a year, based on an esti.. mated caustic soda capacity of 15,000 metric tons.il Total capacity would be approximately 3301C0 metric ton6 in 1955. There le no information, how? ever, that the construction of these plants has started, or even that the plans for their erection still exist. Anal14.9 Amtkoni4. a. Productioa. Rumaniala estimated production of synthetic ammonia is as follows: Estimated Synthetic Ammonia Production 1946...50 Metric Tons (Nitrogen Content) Tear 3946 1947 1948 ' 1949 1950 &sisbatkiss 1961O,/ 852 V 1,000 if 1,400 10800 Synthetic ammonia is produced by two inatallations, the "Nitramonia" plant in Fagaras and the "Nitrogen" plant in Tarnaveni (Diciosanmartin)0 both constructed in the late. 19309s. The iNitramonia" is believed to be the 'argent Rumanian producer of synthetic ammonia, present capacity being. about 20300 metric tons (nitrogen content) a year f whereas the "Nitrogen" plant has an annual capacity of only about 1,400 tons. 5/ Production of nitrogenous fertilizers is small, and some imports are necessary. Production estimates for ammonium sulfate and ammonium nitrate are as follows: Estimated Production of Eamumlion Sulfate and Ammonium Nitrate Metric: Tons 294752 1947 , 214W 1948 3502/ 1949 450 1950 600 1951 750 1952 900 56 N.A:. 1s050 2/ 1,002 1,150 1,250 1,600 Approved For Release 1999/09/81A-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 b. *etC.? ; t The estimated production and capacity of synthetic ammonia in 1951 and 1952 ia as follows: Estimated Synthetic Ammonia Production and Capacity 1951-52 11214.2..122a..1111k9gsskSaitscata. Rsza,iim 1951 2,300 3,700 1952 3,500 9,400 Another synthetic ammonia plants the Um State Works located about 25 kilameters from Fagaras in the Ucee de Jos-Ucea de Sus areas is presently under construction. Soviet technicians are directing the constructions and reported/ye machinery from the USSR is to be installed. The enterprise is a Sovromehims or joint Soviet-Rumanian chemical company, project. The Ucea pinnt is not expected to be completed until after mid-1952. The reported paned rapacity is 20 metric tone a day of ammonia 'with a nitrogen content equivalent of *beat 5,700 metric tons a year. 4/ The total mamba= capacity of all three p/ents by the end of /952 ay approadh 9,400 metric tons a year. c. R4madlakeuirementa. Domestic requirements are not known. Most of Rumanian output of syrthetic ammonia ie used in the production of nitric acids nitrogenous fertilizers, and other ammonium salts and for refrigeration? Some seMonia liquor is supplied to planta which produce soda aah by the Solvay process. Production of nitrogenous fertilizers since the-war has been insufficient for agricultural needs. The only known imports of fertilizer are Of Soviet origin. It is believed that the USSR it supplying fertilizers, perhaps ammonium nitrates but the amaunt probably is less than 101,000 metric tons a year. It has been reported that the ammonia production of the *Nitrogen' plant in Tarraveni is shipped to Mitratoniau at Fagaras to be made into nitric acid and that the "Nitramonia" plant supplies the nitric acid to the *First Rumanian Explosive Corporation" in Fagaras. There is no stockpiling of synthetic ammonia, since Rumania has none of the pressure-type containers required for stockpiling this commodity. In 1950 there was no known deficit of synthetic ammonia. Homemen.s nitrogen fertilizer r in limited quantities had to be importedo In 19520 uhen the demand for fertilizer will be greater, domestic production will not be adequate, even though the nevi fertilise:. plant at Ueea may begin operations in the latter half of that year. 57 6, SERE Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SitaRET C10 There are no raw materials shortages in the synthetic ammonia industry. Production is limited by shortagee of spare parts, general disrepair and obsolete- ness of equipment and unskilled labor It is known that the 'Nitrogen" plant as late aa 1949 was operating with inferior ammonia catalysts. 3/ 10, The completion of the Ikea nitrogen plant ahould assiet Rumania in becoming self-sufficient in nitrogen fertilizers by the ead of 19530 The Ucea plant will produce ammonium nitrate, which in event aver can be used by the explosives plants in the manufacture of Amato', a TNTs mammal= nitrate mixture wed as an explosive filler in shells and bombs, 5. at49.41,1, a. h2513=0. Rumanian production of nitric acid is eaLtnated as followss Eatimated Nitric Aoid Production 2938 and 1945-50 Die iteS211211 1938443. 1945582f 1946 1947 1948 1949 1950 1943,/ 191 jj 200 200 2/ 1,000 The only plant known to produce nitric acid is the nlitramoniai instail&. tion at Fagaras. Production of nitric acid by the ammonia oaidation method was planned ,at the ?Nitrogen" synthetic ammonia plant in 1940, 3,/ but there is no definite Indication that nitric acid is being made there. The ' "Nitramonia" plant is reported to have a nitric acid capacity of 8,400 metric tons (100 percent acid basis) &year. ki There are four or five combustion furnaces for acid production, but only one furnace was in operation in 19499 because of a shortage of platinum meshes (catayet)0,5/ Another plant that might be producing nitric acid is the "glossa BOW (formerIy *Phoenix") at Baia Mare? but even if it makes nitric acid, production is probably small. b. cti Ca ac Rumaniaes possible nitric acid production and capacity for 1951-52 are as fellows 58 czj ,11 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 MR= Nstimated Nitric Acid Production and Capacity 1951.52 naglia1211 *ORM 1951 3,000 8,400 3.952 5,000 8,400 'tCaine* increased to 23,400 metric tons if ea State Worki starts production, These produetion eatimates are considerably larger than previous annual output. It is believed that greater emphasis is nem being placed on the production of nitric acid, and that the condition of the equipment at "Nitramonia* is now much improved. Completion of the &tea plant, the ,planned capacity of which is 20 metric tans a da y of ammonia, or 5,700 tons of nitrogen a year, 4/ will permit a considerable expansion of production, Possible nitric acid capacity, therefore, may be about 15,000 tons (100 percent nitric acid) a year. c. Domestio Reoulirements. Rumanialle estimated requIrements of nitric acid are as fellows: Estimated Nitric Acid Requirements 1950-52 Negri9 7201 Xs= Erzbuttim 1950 5s000 1951 9,000 1952 101000 Domestic production Of nitric acid is believed to be sufficient for Rumanian industries whose requirements for this basic chemical are limited, Nitric acid is not imported, Artificial fertilizers of the fixed nitrogen type are in short supply, hoverer, presumabl7 because of larger agricultural requirements. Rumania will require abodt 10,000 metric tons of ammonium nitrate of fertilizer grade in 1954 and imports may therefore total about 7,500 metric tone, Estimated deficits of 4,000 metric tons in 1950 and 5,000 tons in 1932 will result Prom increased requirements for amMonium nitrate fertilizer, There is no information indicating that a stockpile of nitric acid has been or will be established in Rumania. SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 ? CIA-RDP79R01012A000900040001-6 6E6RET ? doili&mis eLjAgjacatimi. The raw materials essential far the manufacture of nitric acid 'are anhydrous ammonia, which ie in Magnate supply in Rumania air # and water. Stainlees-eteel alloys and fine platinum cause,* also required by the industry, are in short supply in the Soviet Bloc. It is expected that production at the "Nitramonia plant 'will be only 60 percent of capacity in 1952 because of shortages of replacenent parts for special equipment. e. bi The completion of the Ikea plant, not likely to be finiiihed nntil the last half of 1952, should assist Rumania in becoming self- sufficient in nitrogenous fertilizers by the end of 1953. The ammonium nitrate produced by the ticea plant could be available for immediate use by explosive plants in manufacturing a TNT-emmimmilmn nitrate mixture for high-explosive filler in shells and bombs. psigalislegio Very little information is available on the production of coke chemicals in Rumania. Only one plant is reported producing metallurgical coke* Thin installation has a battery of about 24 coke ovens, but it is not known whether all of the ovena are equipped to recover by-products. Plant capacity is about 80,000 metric tons of metallurgical coke a year, and estimated produca. tion was approximately 709000 metric tons in 19500 Assuming that all coke byproducts are recovered, the production of the various coke chemicals would be as follows Estimated Production of Coke Chemicals 1950 Coal Tar MOO Bensols Refined 570 Toluca 140 /Awe 70 Ammonium Sulfate 920 Naphthalene 190 Anthracene 40 Phenol 25 Cresols Xylenols Z Creosote 011 10 U&ect as a cata4st0 60 Approved For Release 1999/09/0113ROA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRNZ Production of coke chemicals is not sufficient for Rumanian require? ments, and Czechoslovakia supplies the small additional amounts needed. In 19480 about 100 metric tons of benzol and 50 metric tons of naphthalene were imported from Czechoslovakia. The synthetic organic chemical industry in Rmnania is not developed, and, therefore, there is no sizable &. demand for chemicals from coal. Some benzol is sired to the "First Rumanian plosive Corporation* plant at Fagaras SuUhur and Pvrttes. au 15.143811241. The only available figure for sulphur output is an =confirmed i report of the production of 5,000 metric tons in 1949. Sulphur deposits of unknown extent have been discovered in the course of petroleum explorations in Prahava near Ploesti. jdf Output of pyrites in 1939 was 31,600 metric tons. 10/ Production of pyrite concentrates in January and February 1949 Was 6,296 metric tons ,..j/ or an annual rate of 37,776 tons. Production haft probably been Increased in 1950 and 1951 to meet the requirements of the expanding sulphuric acid industry and to supply exports to Czechoslovakia. Part of the production is obtained from deposits of iron pyrites in Transy1vania0 part fron popper pyrites at Altan Tep and Balanul, and part from differential flotation of gold ores, II Much of the output is said to be of poor quality and high arsenic content. ,5/ idlanUsl.baniUst2EsegetasaugenSmanaz. NO info:matt= is available on possible production of aulphur in 19520 If the Five Year Flan Is to be three-fifths completed by tbn end of 19520 production of pyrites for sulphuric acid alone must reach 830500 metric tons0 ther this amount can be provided entirely by domestic' production is open fo question0 Co banntdabagransta. No information is available on requirements for sulphur, of which agriculture is probably the chief consumer. The production of sulphuric - acid acoounts for the bulk of the pyrites requirements. In 1950 the estimated amount Used was 42,000 metric tons' and in 1952 an estimated 83,500 tons will be required.* Requirements of other industries are probably small, so that the total demand for all industries vould be apiniaximately 60,000 and 1100000 metric tons in 1950 and 1952, reapectively. d. Stockpiles. Since Ruraania has large domestic supplies of pyrites stockpiling is not required. It vas reported in 19490 however, that pyrites from the Urals were being stored at Galati and that 10 Shipments of iron pyrites * Calculated from sulphuric acid production in 1950 and the 1952 goal. Approved For Release 1999/09MCIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79Rp1012A000900040001-6 SECRET were scheduled for delivery that summer. Furthermore, Soviet pyrites is reportedly shipped to Orsova for forwarding to the Viitorul steel plant, where the ore is roasted to extract the sulphur content. The finished iron is exported to the USSR. 2/ 0e arply, sc Deficit* As Rumania produces no sulphur, all requirements must be imported. ) incomplete import data show that 6,348 metric tons were received in 1949. Rumania is both an importer. and an exporter of pyrites and appermtly has a net surplus. Pyrites vas included in.the1947 Rumanian,Soviet trade agree... ment? SI/ and substantial quantities were to have ben received from the USSR in 19490 Rumanian imports of 2,900 metric tons from Cyprus in 19492atmg7 have been destined for transshiment to Czechoslovakia. On the other hand, Rumania exported 15,000 metric tons to Czechoslovakia in 1950 22,/ and In 1951 planned to export 400:00 tons to Hungary and possibly 40,000 tone to Czecho- slovekla0 jai f. IpternalLinitationg. No data are available "on the extent of either the sulphur or the pyritmt reserves in Rumania, nor it; there any definite information on Rumanian shortages of technicalmwmpouer and equipment. ? go +Pv,)?.! 4-1 .! ? _7 Rumania ia emerging as a fairly important source &pyrites for Czechoslovakia and Hungary, both of which have in the past depended largely on imports from non?Bloc countries. The Bloc will be less vulnerable, there- fore, to the world shortage of pyrites predicted for 1952. Rumania's ?vial' increasing production of oulphuric acid, howevers may restrict the volume of pyritea available for exports unless production can be materially increased. Although the bulk of the increased catgut of sulphuric acid win be used for the manufacture of fertilizers, Rumania's capacity to produce war materials, especially explosives, also will be increased. 8. Bulak__. a. production,. Rvicanian production of synthetic rubber is believed to be small. 2,/ The importation of 20 kilogram of rubber plant seed under the 1947 trade agreement with the USSR 2/ indicates that experimentation, with latexibearing shrubs suCh as kg:lc-aura, was planned* Tire production is reported at 316.4 metric tons in 1947. 2/ Capacity of the two automobile tiresproducing plants is 220 tires a days or 661,000 a year. 4/ Two other plants are believed to be producing bicycle tires. 2/ Postwar production of tires and tubes by the principal tire plant, the Banloc Rubber Factory is estimated at 1,140 metric tons in 1948, 62 0. SW= Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET 2,364 tons in 1949,* and 2,647 tons in 1950. 11/ Production of carbon black in Rumania was 22,086 retries tons in 1949. 2/ With the addition of another plant early in 1950, production probably increased. Planned production in 1955 is to be 4.5 times larger than 1950 output. 2/ Natural gas and the Waproducts from the refineries are of such quality that large quantities of carbon black can be turned out to agy specification required. letimatedPossible Production pnd Capacity'. Some expansion of plants for the manufacture of rubber products is prObably planned, and the 1949 trade agreement between Rumania and East Germany provided that East Gamey would supply various machines and spare parts for the rubber industry. 2/ The current Five Year Plan provides for the production of 4,000 metric tons of tires by 1955. 12/ C. pomeepticReauirementa. Rxmenials motor park, estimated at about 10,000 vehicles in 1950, requires from 40,000 to 50,000 tires annually. Carbon bleak requirements; are small, probably about 500 metric tons a year. There is no information available on stockpiling of rubber in Rumania. d. Surplus or Deficit. WO information is available on types and sizes of tire manufacturing capacity in Rumania, but Imports from the USSR indicate that Rumanian produoe! tion may be deficient in acme categories. The USSR has sepplied tires to Rumania since 1947. 11/ Other types of rubber goods also are 'imported from the Soviet Bloc. Imports of natural rubber have been leas than before the ? war and totaled 19000 metric tons in 1948, 1,250 tone in 2949, and 575 tons in 1950. 13/ However, additional imports of natural and synthetic rubber from the USSR and Satellite countries which are not included in these totals have considerably increased the total Romanian rubber supply, The USSR supplied 400 metric tons of rubber in March 1949, and additional quantities were probably shipped in 1950. 12/ Large surpluses of carbon black are available for export. '!"alaiditahtatalao Supplies of raw rubber must be imported. Rumania apparently received only 7 metric tons directly from Malaya in 1950. isti More was Obtained through reexports and transshipments through the and West Germery., and the USSR and the other Satellites probably furnished some. Rubber chemicals also were supplied by the USSR in 1950. Synthetic rubber production will require other raw materials imports. Soviet specialists are believed to be in the country to assist in developing synthetic rubber production, 15/ and other 'Includes 204 metric tons of bicycle tires and tubes. 63 Approved For Release 1999/09/WMA-RDP79R01012A000900040001-6- Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 technical aid by Soviet personnel viiiprobably continue. Rumania may also be :short of equipment for the manufacture of certain types and sizes of tires. 7rende.?Inc1ud2naind1cations of Itkokilisition for 11140 A great expansion of capacity for the production of carbon black in Rumania provides the Soviet Bloc with a highly strategic commodity. The Bloc countries have been critically abort of this product in postwar years, and great efforts have been made to procure it from the West. Tho ability to obtain large amounts of Rumanian earbon black will help to oont serve the Bloc's foreign exchange supplies. In addition, expansion of carbon Meek production and Increased tire production in Rumania will aid the domestic economy by taking the country less dependent on the Soviet Bloc and br strengthening its foreign trade position. Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ' Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 aratET Go k&ineerinx Industry. Summary The egausszingjaaatry of Rumania is goal and unimportant in comparison with that -of Czechoslovakia or Hungary, but RumaniagAlitga, in the fields of ra t and shipbuiI. neverthe- ess makes but is estimated that over 50 percent of the tot ? Put o the r industry is shipped to the USSR, and for important in- dividual plants the export figure is much higher, sometimes exceeding 90 rcent. Output of the more important products of the engineering industry is estimated in the following table. Estimated Production of Ships, Locomotives, Railroad Care, and Tractors 1950, 1952, and 1955 Item Unit 1950 1952 ' 1955 Plan Shipbuilding Metric Tons 28,000 21 40,000 N.A. Locomotives Units 150 200 N.A. Railroad Cars Units 3,000 3,600 '5,200 Tractors Units 3,000 4,000 5,000 ITXn 1949, The Rumanian engineering industry does not meet total domestic re- iquirements except for railroad equipment, and the fact that the bulk of the output is exported to the USSR further Increases this deficit. Imports of , capital goods are substantial, the major portion coming from the USSR* Hungary, and Czechoslovakia? Some critical equipment is obtained from Switzerland, Austria, Italy, and West Germany. The technological level of the industry is not high. Its products are of simple design, usually copies of foreign models, and little attention is devoted to improvement of technique e and products. Industrial laboratories and experimental shops have been completely neglected, although an attempt is being made to correct these shortcomings through adoption of the latest Soviet industrial techniques. The industry also is handicapped by a lack of engineers and skilled labor, and shortages of raw materials, machine tools and other production equipment, machinery components, and spare parts have constantly c=, 65 4- SWRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SEDRIN hampered production. Defective organiiation and planning have resulted in a number of production bottleneeks. These liwitations have often prevented fulfillment of production plans for specific items but have not prevented a eteady increase in over-all outputs The 1949 and 1950 Plans called for a considerable increase in machinery output. This wee to be acconplished by expansion of production at existing plants. Under the Five Year Plan (1951.-65)0 output of madhinery is to be doubled, and 10 or 12 nevi:lents are to be constructed and put into operation* though individual production goals for various categories of machinery and pment could be attained (1) if the plant construction progrwa is completed on time, (2) if sufficient raw materials and production equipment can be ' imported, and (3) if munitions production does not expand and monopolise scarce resources, the aver-all target of doubled aggregate output seems likely to be achieved. Expantion of the Rumanian engineering industry means an expansion of potential for the manufacture of war materiel. Nhnitions production in the World War II period vas Liignificaut but declined precipitously in the postwar period. In the latter part of 194 and in 1949, production of munitions vas reeumed in a number of plants and has stendily_increased. More than twowthirds of the munitions manufacturing plants of World War II are, to varying degrees, again engaged in the production of light weapons, ?opponents, and ammunition* There are isolated instances of total conversion, but, in general, production of civilian goods has continued parallel with that of mations* If the current trend toward increased munitions output continues, however production of machinery and equipment will decrease, and the Rumanian engineering industry ? te unable to meet the production goals established in the Five Year Plan* 10 NJohine Tools. The production of machine tools is mall when compared with the require- ment!, of Rumanian industry. A few machine tools were manufactured in Rumania before Weld War II and during the German occupation. Par plane for the development of heavy industry have placed increasing emphasis on the uenufacture of machine tools. The rive rear Plan schedules a production of 645 lathes in 1955. Although this is asmall number, it is maw times more than present production. 2/ More Important is the projected production of a number of new types of machine tools, many of them complex WhiCh Rumania thus far has shown no ability to nenufacture.* The principal m:nufacturing plants for machine tools are Steagul Rosu and Strungul in Stalin (Brasov), Victoria in Arad, Cugir in Ougir, lemrtirea in Oradea, Unio in Saba Mares, and Dinamo in Dacharest02/ * At the Rumanian Industrial EXhibition in 2950 a few machine tools of Rumanian manufaeture were on display.engine lathes single-spindle drills, banal grinders, two boring machines, a Shaper etc. With the exception of two of the drills the machines bore the inecription "Made for the First Time in This Country' They mere All simple models and appeared to be fairly good (topics of US or British typee. 3/ 66 Approved For Release 1999/09/0WMA-RDP79R01012A000900040001-6 Approved For Release.1999/09/08 : CIA-RDP79R01012A00090004000.1-6 SECRET Almost all requirements e machine toola must be imported. According to the Rumanian press, the ikRumania with a multi ? e Never*. $, eon v. tools from Pit $ particularly frau Switzerland and Italy. Official exports of machine tools firm Switzerland to Rumania totaled 44metric tons in 1948, 191 tons in 1949, and a4. tons in the first 6months of 1950. kj France supplied Rumania with eight hieh.. apeed threading machines, useful in nnnitions production, in the fourth of 1950.y Italy shipped 35 tons of boring machines in Novedber 2950 and,-under the current trade -agreement, is to vumAy $300,000 worth of machine tools during'195102/ 2. Ariculteralikehigery. Production of tractors was started in Rumania in 3941 when the former IAR aircraft plant NN-Converted to tractor production iusler the eontrol of the Saint Soviet-Rumanian company Sovramtractor.V Current tractor production is 31,000 units a yearelf Annual output is scheduled to reach 4,000 units in 1952 and 5,000 units in 19550y Production was begun with an .adaption of the German Hanamag? wheeled model, to which several modifica- tions have eince been made. Current production Should be aufficieat to net the minimum requirements of agriculture for the type of tractor produced. However, the entire output may not be allocated to domestic users. Despite the increased domestic output, Rumania has continued to import tractors. Seventy! Zeter4nantoZn?Vr?.c..gec. a tpre were imported in a 4m41outh period in 1950, and Rumania .:s so received sem Se?'.= n aq Ai Caterpillar tractors are no ?? ? a presen ough the actor plant is acheduled to make the Soviet 0.35 caterpillar tractor in the near future. The Rumanians possess a number of Caterpillar D.17 and D-8 tractors of US manufacture, for Which it is difficult to obtain replacement parts. for In addition to tractors, the Sovromtractor plant has far name time produced aircraft and possibly tanks. Tractor production may possibly have been suspended in early 1950 in order to expand tank production and to produce accessories 261' armored ears. Such total conversion would conflict with the urgent needs lof Rumanian agriculture for tractors and would therefore constitute an Important step toward mobilization for var. 3. Irensnortation,Eduiument. The greatest contribUtion of the Thalami= engineering industry to the economy of the Soviet Bloc haa. been in the field of railroad equipment. than SO percent of the production of locomotives, freight cars, braking equipment, and wheel sets is Shipped to the USSR. Production of steam locamotivea is concentrated at the Sovrommetal plant in Recita and at the "23rd of August" plant in Bucharest, which produce an estimated 100 and 50 units a. year, respectively. Over SO percent of the locomotives are of the Soviet vide.gauge type and are shipped to the 67 SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 UMW USSR, whereas the remainder are standard-gauge for the Rumanian State Railways, Total production in 3.952 will probably approximate 200 units. Production of rolling stock in 1950 is eatimated at 3,000 units and dhould increase to 3,600 in 19520 The Five Yearn= calla for an oats. put of 5,200 freight and tank cars in 1955. Almost the entire output is sent to the USSR. 21 The most Important producers of railing stock are the "23rd of August" pleat and the Steagul Rosa plant in Stalin (Brasov), Other producers are located at Arad, Bran% Orastie, Seta Mere, and TurratSeverin. Some railroad equipment is imported, and several 1949*mode1 Swim diesel locomotives have been seen in operation on the Rumanian railroadso The current trade .agreement vith Italy calls for the supply of $200,000 worth of Italian railroad equipment in. 19510 Narrow-gauge cars were imported from the USSR in 1950, 3/ Sh6tages of raw materials and components...welled steel, stamped partsg timber for freight cars, antifrictLan bearings, and injector and pumps for locomotives--and of production equipment serioualy hampered output in 190. These shortages still edit, and although they are not sufficiently serious to cause a drop in preduttion, they have slowed the rate of increase? 40 b4osafaigUagisitid* Rumania produces a small amount of oilfield equipment. The "First of May" Sovrompetrel plant in Ploesti and the Sovrommetal plant in Reoita have for some years produced steam drilling rigs on a small scale. 1/ In 1949 the Steagul Rosa plant at Stalin (Brasov) began production of tricone dr411411g bites vindhes crude pmia. and drilling rigs? 3/ The 1949 and 1950 Flans placed considerable emphaais on the production of oilfield equipment. Production target? for 1955 were given in the Five Year Plan only for rotary tables and drilling trollaya and the goals, 90 units in each case, are modest, 2/ Quarterly fulfilliaent reports have stressed substantial increases in production of other drilling equipment such as crown blocks, traveling blodka, drilling rigs pumping =its, and re:lacing gears. The low production of the Rumanian oil industry in 1950 has been attributed, among other things, to a shortage of new equipment and a deterioration in existing facilities. hi Even if Rumania's total output of oil equipment 'were allocated for domestic use the requirements of the oil industry could not ------bakmet. A substantial part, however, including such items as crude-oil - pumps, rock bits, drilling tongs, traveling and crown blocks, rotary tables, rotary awivels? blowout preventera and tubing, has been going to the USSR as reparations, 3/ Items ouch an diesel drilling rigs and all control apparatus raist be imported. ?/ Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECR12 Before World War II and immediately thereafter, Rumania imported con- siderable quantitlea of US equipment, After the imposition of US export controls the Rumanian government made strenuous Warta to obtain this equipment elsewhere. Substantial quantities of drilling pipe and vial casing have been procured through circuitous channels from Italy and Weft Germany, The USIA (Soviet enterprises in Austria) firm of NannesmannoiTrausl supplied Rumania with drilling equipment in 195002/ ItAT is sdheduled to supply drilling equipment valued at $120,000 in 1951, y Rumania placed definite orders in September 1950 with the West German firm TTAG for delivery of $150,000 worth of drilling rigs, 2/ The USSR has also anpplied equipment, inc1104/1g, it is reported, drilling machinery for four new wells in the latter part of 1950, 12/ The Steaua Rosie Works (formai3y14 Waft Corporationl in Bucharest, the only significant producer of refinery equipment, 22/ manufactures large structural parts Each as fractionating columns, tanks, and beat exchangers, 31,j Pumps, valves, motors, and control equipment for refineries are imported. The trend in Rumania is toward an increased output of petroleum equip- ment. T%ere are no plans for construction of new plants, however, nor far any. substantial *pension of existing plants, Recently announced percentage increases of considerable magnitude for the production of oil equipment reflect the manufacture of new items rather than any great expansion in volume of output, Rumania will continue to depend, although to a lesser extent than before the war, upon imports of petroleum equipment* 50 41=2M0 During World Wer II?Rumania had a anbstantial cepacity, distributed among 29 plants, ji for the production of light 'weapons and ammunition* Monthly capacity has been eertimated, presumably on the basis of wartime output, at 75 pieces of light artillery, 345 mortars 4540 small arms, 403,750 shells, 14,500 aerial bombs 234,000 mortar :hells, 330,000 infantry grenades, and 12,290,000 rounds of Lalluierms ammunition, At the end of the war, most of these plants were converted to peacetime production, although a few government arsenals may have continued to produce munitions on a email scale. By order of the Ministry of War, however, 40 percent of the facilities for munitions production was not to be used for nonmilitary purposes bawl to be maintained in condition to resume operations on 48 Mures notice, Furthermore, Industrial mobilization plana were prepared to enable the Industry quickly to regain the level of production reached during World Wer II. a/ Since jun. 1948 the entiremedtions imiustry, like all heavy industrY, has been nationalized, Military directorates known as Production Directorates, whirl receive orders directly from the Minietry of National Defense, Yhave been establidhed in the lanistries of Industry, Oil, National Econazy? and Food. In late 1948 and.1949 a number of Rumanian industrial paants resumed production of munitions, although continn4ng to marafecture industrial products. This trend was accelerated in 1950 and early 1951, Approximately 20 ODD 69 wir Approved For Release 1999Mr: CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 =Mr of the 29 plants villa. produced =mitions during the war are again producing light weapone, ammunition and components, a Theee 20 plants include almost all of the important engineering establiOhmentse The Nina IllePintilie (formerly ifergineanca) plant near Ploesti, for example, made shell made, fuzes,and mortar shells during the ware Capacity was 282,000 dhalle a year. I/ Liter the war the plant %me coaverted to the production of agricultural equipment, but in mid-1949 obeli production was resumed. In the first 91 months of 1950, 200,000 antitank gun &ells for the USSR were turned out, and the 1951 production goal is 14 million shells, over 5 timee the plants estimated World War II capacitre2/ It is un.likaly that the munitions industry as a whole is currently producing at a level near its wartime capacity. Most of the engineering plants conttnue to manufacture peacetime industrial products, but civilian production appears to have been cut back. There have been =emus instances of diveraion of materials and manufacturing facilities to munitions production, whiCh vill inevitably reduce the output of machinery and equipment. gy Although Rumanian, munitions production represents a subetantial Contri- bution to Soviet strength, the industry must depend upon Bloc assistance* It say be able to supgy the requirements of the Rumanian Army far light weapons, small arms, and ammunition, but heavy weapons would have to be furnished by other Soviet Bloc countries. In addition, the munitions Industry is dependent upon outside sources for much of its raw materials and almost all of Its production equipment and replacement parts. 6. Aircraft. Rumania has neither an extensive aircraft iniustry nor the resources to support one. The country is dependent upon imports frxn the USSR to fill civil transport and military aircraft requirements. Domestic uae and export to the USSR of the aircraft instruments and light training and sport airm craft currently manufactured mill probably continue, but no important contribu. tion to till power of either Rumania or the USSR is made by the industry. The chief advantages to the Soviet Union are the facilities for extensive maintenance of Soviet transport aircraft operating in and through Rulania and for potential repairef tactical aircraft in event of war. The contribution to the Rumanian econagy ie not significant? The industry is completely nationalized, and total emOloyment probably does not exceed 1,500. Aircraft and components are produced In conjunaticei with other product.; in plants under the direction of the Ministry of Metallurgical and Chemical lnduetrye The most important plant with respect to aircraft production is Sevromtractor, a Joint Soviet- Rumanian company under the supervision and contra of the USSR. After World Var II, same machinery in aircraft factories was.traneperted to the USSR, and most of the remainder ma used for the production of consumer goods. In 190, it as reported that the Soviets had authorized the retooling for aircraft production of the SET plant in Budharest and the Astra and Sovromtraetor plants in Stalin (Brazov). A, group of 22 engineers and tedhnicians Approved For Release 1999/0MIFIbIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 8103M from the 'USSR visited the Sovrantractor plantirith. the samoluseed purpose of developing It for the production of jet aircraft, although the real reason probably was to determine Ito usability for aervicing jets* No large expansion of production is expected, and reoent augmentation of repair facilities and personnel has been Insufficient to indicate =anise.. tion for ware 70 iltaXt1laglag0 iRizaszdals 24 known shipyards have an annual capacit7 of 80,000 metric tons. The planned production for 2949 was 42,000 tons, though =3728,000 tons were built, but in 1950 production increased by an undetermined amount? Although. larger Ohips can be built in the major yarde the great bulk of the present and planned output consists of tugs tanker b:rges fishing craft, small river CO Ships, and, in the Sovrameyerdss, motor tOrpedo boats, - patrol boats, minelayers, and minesweepers? All of the naval craft.are etandardited- on Soviet specifications, and a new motcas torpedo boat, the prototype of which is believed to have been fininhed in the lzbanda plant at Braila, wilI go into construction in 1951..520 The industry employs approximately 22,000 workers, and the most Important Shipyards are located in Brallal Tun= Severin Galati., and Constansa0 Technical trade schools were inaugurated in all yards in 2949, and the result. ing intrease in labor skills, together with larger imports of engines and raw materials fron the USSR and the standardization of construation, is .credited with the 1950 production gainp. The entire output of the. Rumanian phipbuilding industry from the teraim tion of !tal.d War II until the end of 1951 was delivered to the USSR am reparations. In that period Rumania purchased some ships abroad, tut its merchant marine is still deficient, The industry is expected in 1951 not only to fill the reparations aueta but to have a nurplue for national requirements, with an increase of output to more than 40,000 metric tons0 ltemiumlen nhipbuilding ie bee 41 Tungsten, copper, aluminun? and are obtain ? the USSR, manganese franliusgarrand Bulgaria, and steel from Poland and Czedhoslovakia0 The Is the principal source of finished marine engines, although plants In 0 Galata, and Turnu Severin produce that in limited quantities. There is no indication of convioraion of ether industry to Shipbuilding, but expansion of all shipyards ham been marked in the past 2 years? Nev machinery has been snppliedbythe USSR for constructing two new but $mell yards. Although increased activitgr in this industry cannot be &moldered an immediate step in mobilization for war, the war potential in definitely being ipproved. The need for imports makes the industry vulnerable in peacetime, and the -concentration of the shipyards in awry few locations, woad make them vulnerable to boMbing. SEC= Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 VII. Transportation, SECRET SusinarT The distribution of petroleum products to the Soviet Union and to the Satellites is the chiet;vontribution of the Ruminian transport system to the Bloc's economic potentialfwvar, This distribution is carried out principally i/// the pipeline network, in conjunction with the Soviet and Rumanian merchant rites and, to a lesser extent, the Rumanian railroads and inland water de /transport, / Rumania is not capable of making large contributions of transport equip.- ment to the USSR. The diversion to the USSR of moderate quantities of rolling stock and motor vehicles, however, would not seriously affect the Rumanian economy, Rumania probab37 will 4ntinue to deliver rol34ng stock and small vessels to the USSR out of current production, Present Rumanian transport activity imposes only minor requirements an Soviet economic resources, since most Rumanian transport facilitim are operating below capacity. A substantial increase in traffic, however, would require Soviet assistance in the form of additional transport equipment. Because of Rumania's strategic location, its transport system is of considerable military as well as economic importance, SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 szcier Railroads. 1., Direct Contributions of Railroads to the Economic Potential for mararmirtm RuMania's railroad facilities make (*Ilya limited contribution to the Soviet economic potential for war. The principal economic importance of the railroad stem is in the distribution of petroleum products to the USSR and the other Satellites and in the event of war the system would provide logistic support for military operations in the Balkans and the Adriatic area. 1-*\ The difference ingmege between SaViet and Pcimanimil railroads* does not prevent the USSR from- utilizing the Romanian network, because trans- loading points at Galatz-Reni, IasirUngheni, and possibly at Dornesti, permit through traffic between all points In both systems.- Transfrontier traffic is accomplished by transloading shipments and by substituting axles of the desired gauge at the transfer points, a. ....22Geteanagaistion of the Network. The major portion af,Rumaniats railroad network is roughly parallel to the southern and eastern frontiers of thqcountry, cut off fran Transylvania by the East Carpathian range and the Transylvanian Alps. From Craiova? two parallel lines sweep eastward to Bucharest and northward to the Soviet frontier south of Chernovitgy. Five gaps in the mountains lead into Transylvania, but only the routes through Orsova and Brasov are major lines. Branch lines to Galata and Constanza carry Rumania's heaviest traffic.. .00 Traffic. Rail freight traffic comprises 85 percent of all imbarnal traffic in Rumania. The level of traffic has surpassed the prewar volume and apparently continues to increase. RMMUIPUI rail freight traffic for 1951 is planned at 7.8 billion ton-kilometers, 28 percent above the 1939 traffic figure, Domestic rail traffic consists chiefly of petroleua products?** timbers grain, and some iron and steel. products, Responsibility for the control of railroad traffic is divided between 2 of the 14 Central Directorates of the General Directorate of Railways: the Operations and Traffic Directorates, which have subordinate offices in the 6 regional Railway District Directoratel-Bucharest, Iasi, Craiova? Timisoara? Brasov, and Cluj. The respective ragional.levei Directorates control sdboffices * The soviet gauge in 5 feet; the Rananian, 4 feet ai inches. ** The railroads carry only About 22 percent of the oil delivered to the USSR, the repainder going by pipeline and tanker .a/ 0. 73 - SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? Approved For Release 1999/09/08: CIA-RDP79R01012A000900040001-6 at every junction and station throughout their regions. be Railroad traffic control is not highly developed, and no centralized traffic control equipment has been installed, leaving the telephone as the chief moans of control. On double-track lines the conventional semaphore type signal wean is used, mhile the "train staff signal system" (Zhezloviya Sistema)? under 'which trains proceed fraa station to station and receive - further orders at each stop, is employed on single-track lines. be However, autanatic block systea signals have been placed in service between Bucharest and Ploesti? and fUturo improvements in this field are expected? Co Equipment. Met of the war damage to the fixed facilities in Rumania has been repaired, but the postwar program to improve the stibgrade, replace worn rails and ties, increase the weight of rail on main lines, and install safety and signal equipment has not been completed. Only the major through routes have capacities comparable to the average of Central European lines? New rails for postwar construction and replacement have come Chiefly from. the USSR and. Czechoslovakia, but Rumania is noor believed to be self-sufficient in rails. Rumanian production of ties is more than adequate for domestic needs, d, Cepacity. The traffic capacity of Rumanian railroads has exceeded require- ments since June 1947. 5)( Capacity in 1951 is estimated at about 845 billion ton-kilometers a year, a 40-percent increase -over 1939. Planned requirements for 1951. are only 768 billion ton412emeters, and the railroad system could carr7 additional loads of 1.78 mil-1Jan ton-kilometers a day, =amount sufficient for large-scais economic or military traffic movements? ' Since 1947 the opening of four mew limbs, in conjunction with certain improvements to a few claisification yards and block signal installa- tions has nearly doubled the theoretical capacity between Liveseni and Bumbe:tis Craiova and Bucharest, Viseul and Telciu, and Faurei and Tecucip The effective capacity, however, as contrasted with the theoretical capacity depende not only on fixed line facilities but includes rolling stock and loco. motive inventories, yard facilities and signalling equipient. All of these items must be increased before the theoretical capacity can be realised, The capacity of transloading stations between Rumania and the USSR is adequate for present needs, and if traffic is greatly increased, the stations can readily be expanded to cope with the additional requirements. Vulnerability, Rumania's rail facilities, because of the system's many bridges, tunnels, and strategic junctions, are vulnerable to a limited degree to both air attack and sabotage. Alternative routes have been increased since the war, SECRIME Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 sEcRET but numerous targets are available for the effective redaction of rail communications. Rail traffic could not be disrupted completely, however, without heavy and suptained attacks. 2. Direct Contributions of Railroad Equipment to the Economic 'Potential for Tfar of the USSR. a. Inventories. Current railroad equipment inventories are estimated at about 62,000 freight oars and 2,000 locomotives, about 10 percent being unw serviceable at agv given time, These inventories are approximately equal to prewar figures, and intensification of utilization has been achieved to cope with the substantially increased current traffic. Tarn-round time, for example, has been reduced to a mintmam, and workshop production has achieved greater efficiency. , b. Production Capabilities. . Only slight increases in traffic can now be met by intensifying utilization, and ewe increases in rolling stook and locanotive inventories must be made if future traffic requirements are to be met. A slight reduction In exports to the USSR would enable Rumania's railroad equipment Industry to provide the necessary domestic additions. c. Effect of Transfers to the USSR. Any of locoMotivee or ether roilliag stook to the USSR sr , elseWhere in the Soviet Bloc would result in redaction of domestic transport availability in proportion to the quantity of equipment removed. Such removals however, would not sUbetantly augment Rumania's contribution to the USSR's econanio potential for war. 3, Indirect Contributions. a. Role of Railroads in Soviet Trade. ir (1) Extent and Nature of Traffic with the USSR and the Satellites, The chief exports to the USSR which are carried by Rumanian railroads are petroleum products, timber, grain, and cement. Petroleum is the major export, but only 12 percent of total petroleum shipments to the USSR move by nail. Grain, timber, cement, and some iron and steel products move chiefly by sea but depend on the railroads for transportation to the ports. Machinery imported from the Satellites depends heavily upon rail transport. (2) Importance of Traffic to the Soviet Econogy, Transportation of petroleum from Rumania is of primary importance to the USSR. Imports of grain, timber, and cement from Rumania are less vital to the Soviet econagv. 75 Approved For Release 1999/09/6110MA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET bG Role of Railroads in Trade with the Nest*. Rumanian railroads are of negligible importance in the low volume of overt trade with the Vest, A small amount of clandestine. traffic with non-Bloc countries moves largely over Eastern Edropean.rail lines, but the motor vehicles, machinery, and replacement parts whiCh Rumania procuree Ln this may from,the nest probably are not required to maintain econanic activity at prewar or even 1948 levels. I. Inverse Contributions* a* 2quipment9 Rumanimn railroads make almost no equipment demknds on the Soviet economy, and, in fact, Rumanian industry exports considerable numbers of locomotives and other rolling stock to the USSR yearly, be Materials. The USSR supplies small quantities of materials, steel plates, and wheel rims to Rumanian railroad equipment factories. Rumania imporbed some rails from the Orbit in the years immediately following the warp-but domestic productive capacity is now believed to be slightly in excess of Rumania's own rail requirements* Co Manpower* Rumania is self-sufficient in manpower for railroad operations* The Soviet Union has supplied technical experts in the past, largely in order to train Rumanian personnel in Soviet procedures, but the few Soviet railroad personnel now employed in Rumania hold supervisory positions to insure Soviet control 'of the aystemu 5. Probable Developments* Small and gradual improvements are expected throughout 195142 in the condition of Rnmsanimn railroad equipment and facilities, chiefly in the strengthening of the fixed facilities along main lines. These improvements will maintain present capacities rather than appreciably increase the total carrying capacity of the rail system. It is possible that in 1952 Ramaniawilidouble- track: A large portion of the line between Bucharest and Craiova and strengthen the roadbed and superstructure between Darmanepti and Salve via Vitra Dornei* Construction on the projected bridge between Corchia and Gigen may be well advanced in 1952, but no werk is expected to be undertaken on a bridge planned between Giurein and Ruschuk? Locomotive and freight car inventories may be increased slightIy011:nd_ the average age of equipnent will be reduced, The percentage of cars with air brakes and automatic couplings mall*. increased by the replacement of obsolete equipment* '76 413 Approved For Release 1999/09/81tatIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRN 26 abaggio 2. Weft Comtrtbutians of Blahvers to the Economic Potential far Xer qt:the ow. The condition of Rumanian roads is pearl and highwey traffic is not considered important to the national economy. In goal weether9 practical4 all of the rowls are negotiable by motor vehicles but lzkwet weather, eapecially in the spring, most of them can be tra;ersed only with the greatest difficulty. it Postwar efforts to improve and modernize the road system have stressed e construction of relatively highicapacity, weather highways across Rumania from northeast to southwest. While these highways will contribute aubstantially to the economic capabilities of the comtry, their routes and struoture, and the great emphasis placed 'on speedy comp1etion9 indicate that atrategic considerations may:play. a large part in their construction. a. Ceara Descrintlop 2f the Network. Although the Rumanian road gystem is well distributed throughout the country, its condition is poor, its deceit?' la low (0028 kileacter per square kilemeter)9 and it is inadequects for economic and military requirements. The extent and character of the network in 1947 was as fallow's V Types and Distances of Rumanian Roads 2.947 Class of Roast Rational Depar4exata1 Mhnicipal Total ballad 29149 42 Lau Oravel `er$111?101MMO. Earth ingEEL.L11 lizaka Mod= =A- 10,245 17,000 11,500 180 3,900 22,000 143.74 209942 33,500 alba The gravel and broken atone roads cannot inurbain prolonged highs.apeed traffic, and only 29655 kilometers of the 10,245 kilometers of national roads of this type were in good condition in 1947. Raverthe1ess9 at preaent there are probably from 49000 to 59000 kilometers of highweys. strategically located .to facilitate motor transport across Rumania from the USSR, which are capable of carrying rapid long.distance traffic. y Postwar projects emphasize the construction of modern hard.surfaced highways leading north and east from Bucharest, the prewar highway system having been oriented mainly toward the vest and south0 to77ai SR Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/0?60W-RDP79R01012A000900040001-6 Large-scalo reconstruction is reported in Trawl:yentas tinand there are plans for the improvement and widening of roads in the Banat p area bordering Yugoslavia. L, Road construction projects accounted for 21 percent of the 1949-50 budget,, y b. Traffic, The 1951 plan for highway transport calls for the movement of 8? million of freight,* a sizable increase over the 49 million ton.kilometers carried in 1950.1( Although reliable data for previous years are lacking, there are indications that since the establishment in 1946 of RATA, be .the state monopoly formotor vehicle transport, truck traffic has steadily in- created. RATA carried 5,100 metric tons of freight in 1946 and 123,000 tons 1949?2/and the 1950 Plan for RATA called for the movement of 371,000 tons of freight. 10/ Ekcapt fot a small quantity of highway traffic handled by the joint Soviet-Rumanian transportation agency, Sovrastransport?** RATA does all the camu martial trucking in Rumania. 16( Hosever, a Much larger proportion of total higtmay traffic is of a noncommercial nature and is hauled by trucks belonging to various Industrial enterprises and by horse-drawn vehicles? Agricultural produce is the Chiercommodity transported by road, but, in addition, industrial products and =materials are carried in the urban areas. C. Equipment? The type and quantity of road-building machinery now in use are not known,. Imports of heavy construction machinery fron Czechoslovakia, Hungary, and the USSR have been reported in the Rumanian press, and small quantities of such equipment have, been requisitioned fran private ofters. Manual labor is si.dely used, and road work is compulsory for much of the population at a maximum rate of 20 days a year. 41? Capacity.. From 4,000 to 5,000 'dictators of the highway network, inyluding roads from Bucharest to the Soviet and Hungarian frontiers are probably able to sustain traffic at a rate of 1,000 metric tons each ally a Say. The capacity of the rest of the system is unknown, but it is highly unlikely that any of the highways are Used to capacity. The road system, therefore, is probably capable of accommodating appreciably increased traffic movements. e. Vulnerability. Long-distance motor vehicle traffic in RuMania is confined to a limited number of highways, but the resulting vulnerability is of little importances because of the small percentage of total traffic normally carried by highway transport, r"'""t7-rpWent of all Rumanian freight traffic,, ** Sovramtransport, a Soviet-Rumanian joint stock company, is believed to contra the policies and operations of RATA. 78 SEC= Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ? ' Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET Afoot Contributiema pf pialway pmpoark louinms0 to the bonande Poteartial for War of Vie 17SSEk. kratotattaae Before World War 21 there Were frau 32,000 to 35q200,vehiclea of all types in the Rumanian motor vehicle pasty but by early 1948 the total had dropped to from 15,000 to 179000, an of which were reported to be in Pool" condition. 13/ Another report for the year 1948 etatee that the vehicle inventory at that time totalled 17,200 units, includingll9000 passenger cars, 5,000 trucks, and 1,200 buses. Thirty percent of the trucks and buses, all of which turned either gasoline or diesel Mel, and 70 percent of the passenger cars were believed to be of US manufacture. 311/ Receipts of vehicles under the terms of Romanian trails agreements with the USSR have been widely publicized, but actual figures have not been reported. Mlimaniats known vehicle imparts are as fellows: Irmo?Rumanian note VobjeIs Imports 1949..50 ittada 1949 VS. ? Italy UR Czechoslovakia Hungary USSR 4,/ Passenger =MaThmej kotal 130 ji/ 200 16 1,600 si/ Total III 1421A 1950 Italy 222 100 42/ Czeahoalovakla 260 USSR 790 V Total Orand? Total la aari 16 50 Ito 25 ? 226 25e 16 1,650 947 322 270 790 ?a 032 ii/ Through Turkey. II/ 3.00 rasconfirmed. ,2/ Probable. W Types unknown. 2/. Unconfirmed. Approved For Release 1999/0MMIA-RDP79R01012A000900040001-6 Mile theme figures do not represent total deliveries, they are believed to include a sufficient number of deliveries to indicate that the current vehicle inventory does not exceed 25,000 units, This figure probably includes military vehicles and vehicles belonging to industrial establishments and government ministries, since in 1948 RATA operated a fleet of just over 400 trucks and buses 'and at that time expected to operate only 1,000 vehicles by the end of March 1949. The number of available motor vehicles is inadequate, as indicated by e 1949 government decrees mach ordered all private owners of draft animals and carts to register with police authorities for the purpose of carrying materials for various state enterprises as required. Despite the small size of the vehicle park, gas rationing has been in effect since 1948, probably because of heavy petroleum exports to the USSR. It ie likely that the age and divergent origin of much of the Rumanian vehicle park and the difficulty involved in procuring parts for obsolete models limit serviceability to a meadrama of 60 percent. The press in 1949 stated that RATA vehicles, reported to be operating about 100 kilo- meters each a day, Waveraged 27,000 kilometers between repairs and traveled from 40,00Z7to 60,000 kilometers an one set of tires. 17/ be Effect of Transfers to the USSR. No transfers of motor vehicles to the USSR are knaan to have taken place. The comparatively undeveloped state of Rumanian Motor transport and the small percentage of total vehicles no used for commercial purposes suggest that possible future transfers of motor vehicles mould have only a minor effect on the Rwandan economy, If, however, transfers should include largo numbers of carts, wagons, and draft animals, the effects on the econagy mould be more widespread. 30 Indirect Contributions. Some motor vehicle traffic presumably moves between Rumania and the USSR, but no data are available on such traffic, There is no known highway traffic betmeen Rumania and the lest. 4. Inverse Contributions. an Equipment. The acceleration of large-scale highway construction and improve- ment in Rumania mill require imports of additional road-building machinery, and the continued expansion and modernization of the rotor vehicle park will require increasing imports of vehiclee. An. April 1951 report states that Rumania is importing 250 Soviet vehicles, mostly trucks, a month. 18/ Spare parts and tires represent a further import requirement, CzedhosiNakia probably will also continue to supply Rumania with vehicles and parts. b. Materials. Rumania has ample supplies of road-building materials. Cements, asphalts and a newly developed surftoing material called iradbit are all produced in volumes 'which meet Rumanian needs and leave a see-garnr OD - Approved For Release 1999/09/01FLIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET export. Structural steel for bridges, however, is a major highway item for which Rumania is dependent on outeide aid. o. Manpower. Ronnie. has a pool a manual labor sufficient for highway needa but requires external assistance in obtaining engineers, designers, and trained technicians, d. Soviet Control, Road construction, although controlled by the Ministry or Construotion, is performed by the joint Soviet-Rumanian company Sovros- construction, staffed mainly with Soviet personnel, and by ite Derubau, a former German organisation taken over by the USSR after the war, Derubau has been responsible for tha construction cif the major Rumanian roads of national importanoe, Although details of the control of the highway transport agency RA.TIL are not known, it is likely that its policies ard operations are directed by Sovrombransport, the joint Saviet-Rumanian,comany largel,y staffed and exclusively controlled by Soviet personnel? 5.., Probable Developments, It is probable that 1952 will see the completion of the major alimweather highways now being built through Rumania to link the USSR with Central Europe. It appears doubtful, however, that motor transport traffic will increase significantly or that the number of motor vehicles allotted to commercial activity will expand appreciably. The development of bath the vehicle park and the highway network will cc:outlaw to be focused on military and strategic rather than on economic objectives. SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET Co Water TraeeParbe 10 Direct Contributions of Water Transport to the Economic Potential. Ito liar of the USSR. 1 Rumanian water transport facilities make a direct and important contri tion to the Soviet economic potential for war. The Danube River pr 0 a cheap and easy means of transportation for petroleum exports to the USSR. Rumania's maritime ports, moreover, are essential to trade with the USSR, since cargoes moved within Rumania by rail and pipeline are trans- shipped at these ports to the Soviet Union, Despite their vulnerability, Rumania's ports would be useful in wartime supply operations in the Balkans, and the Danube would provide a military supply routes a. General Description of the Network. Although Rumania has several navigable rivers, only the Danube, which forms much of the sauthernborder of Rneania? is of economic importance. Constanza is the only major maritime port, and its importance will be increased by the eventual completion of the Danube-Black Sea Canals nmerveder constructions wiliCh will link Constanza with the Danube near Corns- Voda. Galatz and Braila, inland ports on the Danube, are also served by Ships trading in the Black Sea. In addition to Galatz and Braila, there are *bout 25 smaller ports on the Rumanian Danube, some of them mere docking points others, such as Orsova, Turnu-Severin, and Giurgiu? of considerable importance to river traffic? b. Traffic. Rumania's water transport system is important to the country's foreign trade, as males to the internal ecammer. Rumanian exports to the USSR consist primarily of petroleyi products Zran the Ploesti fields, grain and other foodstuffs, and lumber, which move doenstream on the Danube to Rmsenian Black Sea ports for transshipment to Aoviet ports on the Black Sea. Thera is also considerable petroleum traffic to the Communist Far Et. Although the Rumanian merchant fleet has become increasingly active in foreign trade, such as the grain traffic to Albania, the bulk of the petroleum traffic ia carried in Soviet vessels. Danube traffic also includes petroleum and grain for Czechoslovakia and lumber for Hungary and Western Europe0 ammniam imports carried by water are Chiefly industrial raw materials and products shipped down the Danube from the other Satellites and by sea from Poland, the USSR, and the West. Equipment. The ports and waterways of Rumania are fairly well-equipped with traffic and cargo-handling facilities. War damage has not been canpletely repaired in all ports, although Constanza? Braila, and Ciliate are 'believed to be in better than average condition, and in many harbors the lack of storage facilities is a severe handicap. The Danube route is still replete with such traffic hazards as sunken bargee and rapids. CP 82 SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET d. Capacity, The total capacity of Rumanian ports for ocean traffic is estimated at about 13,500 metric: tons a day, a significant portion of the total port capacity of the Satellites on the Black Sea. Of this total, 8,500 tons can be handled at Constanza, and 5,000 tons at Galata and Braila. Recent reports indicate considerable activity in the Rumanian seaports, and It is poseible that there is no significant excess capacitr available at the present time. The combined capacity of the Danube ports of RUmania might be as much as 15,000 metric tons a day. a. Vulnerability. Disruption of water transport would affect both Rumania's domestic and foreign trade and would be particularly damaging to the transport of petroleum and grain. 2. Direct Contributions of Shiing to the Economic Potential or TTar of tbe R0 aAi ? Inventories. The Rumanian fleet includes seven ocean-going ships of 29,000 gross registered tons. NO reliable census of the river fleet is available,, but it is known to consist of small passenger boats freighters of from 500 to 600 tons, cargo barges and tank barges up to 1,600 tons, and tugs of various sizes, be Effect of Transfers to the USSR. The USSR has already taken over portions of both the Thalami= ocean and aland fleets and receives tonnage as Well frau current Romanian production, As a result, the Than fleets have little or not surplus ton- nage, and any further transfers to the USSR would be correspondingly damaging to their capacity. 30 indirect Contributions. Role of Water Transport in Soviet Trade* Although much of Soviet-Rumanian trade across the Black Sea moves in Soviet ships Rumanian water transport makes a direct contribution to this traffic and play: an important role in the inland movement of export traffic destined for the USSR, The principal export cargoes are petroleum, 'wheat, and timber, 'stile Runmian imports consist mainly of cotton. This traffic, as previously indicated, is of considerable importance to the Soviet economic potential. The transport of petroleum products would be of critical significance in the event of war,, Rumania ss maritime and Danube traffic with various other Satellites is not believed to be of major economic Importance, but the Rumanian Danube is also used for transit traffic between the USSR and other Satellites, Approved For Release 1999/09k IA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET be Role of Water Transport in Track with the West, Rirromistn ships trade with Turkey and nearby Black Sea areas but in recent months have teen increasingly active outside the Black Sea* Traffic with the West, hammer, is of little econamio importance, 40 Inverse Contributions* Any major expansion ce.Rnmanials water transport potential momidnecessarily depend largely on Soviet assistance or direct participation* Soviet contra over _Rumanian maritime transport Is complete at present, and there 1/1 little prOapect for any ohange in the near future* 5. Probable Dev....its.e. Several ships maybe added to the RUMantan fleet in 1951, and port futilities and river navigation conditions maybe improved, but sub? stantial Changes in the Romanian umter transport potential by 1952 are not likely? SECRET ??? Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECREr Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 D. Air Transport. 4), - ? sautir.91:flt 4?..m: )111,`It: .111 ? .? The only factor in lbriffnirm air trarutport of strategic, signfi. canoe to the USSR is the oonizribution made by tho Rusuniez airfield network to the Sovict-spemacrod couplax of suoh facilities cactezading fromtbe Baltic Sea to the southern frontier of Bulgaria. giSMI-attalad121-$43111110271? The Rumanian airfield network consists of 49 airfielde and 1 seaplane base.X.1 There are 15 airfields designated exclusively for civil aviationp and 6 tional airfields are shared jointly by civil and milit aircraft. Cf the 49 land installations oar 3# BuobareatAenesas Btebeatf Otopenip and Zilietea, have paved runways. Zilietaa is the only airfield known to have a runway extending from 6O00 to 7,000 feet, It is possible, however, that runways at the two Bucharest airfields may be in process of extensien9 b. 213062. Civil air traffic in Rtzsania is light, and operations are carried out by the leintly awned Soviet-Rumanian airline TARS. With one exception all domestic routes radiate from Bucharest. Two external routes are flown by TARS. Rutunian Air Route 1951 Internal Duebareat-Constansa Duchareat-Sitd:caCargu Maras-Cluj Buabarest-Tininoara-Arad Danhereat-Cluj-Satu Mare BuebereaWibiu-Oradea Mare Dunhareat-Targn Awes-Cluj Daehareat-Galats-Daeau-laeay Timiaeara-Arad-Oredea Mare-Cluj External Duellareat-Ekblapeet Bunhareat-Pregue Unknown Daily exempt Sunday Daily except Sunday Daily exempt Sncds7 Daily except SundA7 Daily expect Sunda,' Daily except Sunday Unknown Diveekly Weekly Foreign air traffic into Rumania is limited to certain Satellite airlines and the Soviet Aeroflot. 85 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SEIMS Pereiga Airlines Serving Throats ICT (Poland) Maszovlet Obuigurh CSA (Czechoslovakia) Aeroflot (USSR) Warsaw4Imuleanume. Budharest Bucharest-Budapest Prague.Bucharest Moscow.Kiev6.0dessa- Bucharest-Sofia Weekly Biweekly Weekly Pour Times a Week 0. limammod. Rumanian airfield equipment is prtive by Western standards bat could support an increased air transport program if =Oh operations were conducted with aircraft no larger than the 11-2. A limited airfield equip- ment and runway extension program was Initiated in 194d under a Soviet.. Rumanian agreement. ?aphasia has been plead an the fielda used for civil transportation such as Arad/dealal Cauj/Sameseni, Satul/Mare, and Sibin/ Turmisor. Ballo aids to navigation consist only of to/P equipment, tower facilities, and beacons. Airfield lighting for night landings is not adequate, amd ground lumilleg equipment is amerces 3/ Cavacitv. The capacity of the Rumanian airfield network would permit relatively lergemecale transport.operaimmviiith the type of aircraft utilized by the USSR. o. Rumanian air transport equipment is vulnerable to sabotage, bat its deetruation would have no affect upon the Soviet economic potential* a? With the sasteption of three 31042 aireraft obtained !reel the USSR and used by?the civil airline, all Thailld132 civil. sal military air transports are obsolete, and a large percentage are nonoperational because of lack of spare parte.* Rumanian air transport equipment, therefore, does not add to the econcmic notential for lair of the USSR,. Ir'TfiTIGZM aircraft inventory iiaaluded 3 IL4125, 13 Mass 4 J6.52s, 4. Lodestars, 5 P0.42e, 2:Mal1s, and 11 JU-34s, 4/ Military a1r4raft are limited to 5 JU-52s1 5 S4.49s, awl 5 C-6060,5/ 96 Approved For Release 1999/09/0MVA1RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SMUT bo itthritartMeara to the USSR. Transfers of operational aircraft to the USSR wOuld result In the virtual cessation of air traneportation within RUM:1U bat would have no appreolable street on the economy. 3. bilarectCqutlittettioee. . Rumanian air transport is not a factor in Soviet.ftmanian trade, nor in Rumanian trade, overt and Clandestine, with thelWeste 4. Imagusiamdalbalgos* 416 Radom& Ruleentee Principal requirement in the field of air transport La for aircraft of the LI-2 or 1642 types, which can be obtained only from the USSR. Soviet assistance to Ramanian air transport has teen limited, however, to one I10.12, delivered to the civil air line in 1949, and two ethers recently made available. b. Nettaga. Some spare parte for the miscellaneous group of Rumanian aireraft have been obtained, presumably tram Czedhoslovakia or Hungary, bat the large percentage of nonoperational aircraft indicates that Romanian requirements for spare parts and engine rep1ace6ents are not satisfied. 00 MOM. Rumania has sufficient personnel to conduct the present limited air transport operationi without assiatance from the USSR. 50 Zabalaaratigarada6 A recent report ,it discloses a plan to improve the efficiency of Satellite air transport operations through a consortium of airlines. Undor Ws. plan, designed to replace the present system of individual single.irtop round trips, the airlines of Naomi, Hungary, Bulgaria, Rumania, and Cacho. slorakia would operate over an International Satellite network touching the principel cities. Such a development, requiring a pooling of equipment and repair facilities, is feasible and would probably adhieve same economies of operations. It Would also tend to simplify Soviet control of Satellite air transport operations. 87 SRIE Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SE= 122.411ANNI. 1. axeatContr4,DurtipampfP4N,Ineranitlitiesi,o_tbekazds rotantial fir War or thf U. a. riENCESUNENARAINLQUilaillb2d. The total length of the IbveinnieTt pipeline network is about 1,420 kilometers. Oil pipelines connect the Ploesti fields with Constanza, Giurgiu, and Rani. Three 10-inch lines lead to Constanza. Branobing from ---thess.linee are a 5...inch and a, 104nch line extending to Dunham% Pratt -which two 5-inoh lines continue to Ginrgiu. A 104noh line Also branches fron Paurei to Braila and Reni. Extension of this latter line to Odessa is believed completed. The branch line to Rani was built an Soviet orders with pipe taken from two additional lines which the Germans bad laid to Giorgiu. Two gas lines also lead to Bucharest* b. UM& It .is probable that over 50 percent of all POL supplied by Rumania to the USSR is at some stage carried by pipeline* e. Radius& No data are available on maethinery in use for pipeline construction in Rumanis. d. agalatk. Capaeity of the Rumanian oil pipeline system bee been estimated at 17,000 metric tons a day. The reliabilitr of thie estimate, which indicates; the existence of substantial unused capacity, has not been established. Parthermares it is not the practioe of the petroleuat industry to operate oil pipelines at capacity for extol:lied periods of time. The capacity of the gas lines is unknown, e. julnerabilttz. The econcedo vulnerability involved in the ell pipeline system is illustayted by the fact that apparently about 60 percent of all Rumanian oil is tranaported at sane time by 3.mmg.distanee pipelines. The Constansa lines cross the Danube on a rail bridge between ?Oast& and Ouidiu, and the line to Rani crosses the Pruth in a similar mummer at Galatia. Successful attacks at these points would seriously diarept Rumania's oil transport system. 2. Eqgjosterk to tip lioommeip So far as is known, no Rumanian-ballt pipeline equipment has been transfeaved to the USSR. Ruannian production of such equipment is probably - - Approved For Release 1999/09/OVRrA-RDP79R01012A000900040001-6 ' Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SEORIE limited to pumps and le so slight in volume as to preclude future exports of any egaifioance. 3* liallagatadatallakina? Although Thmuurtan on exports to the tISSR do noten_gaircreuth., petroleum s thin a Sinai over 50 percent of all exports to the USSR is carried at acme time ay pipeline, and eines other fcame of transport could not absorb this; traffic in its entir4ity, the role of Rumanian pipelines in trade with the USSR la a vital one. The Rumanian pipeline network plays no part in trade with the West. 4121201?tatiabitisia? Whatever pipes and mope may be required for expansion of the Rumanian pipeline network must be largely imported. 5? haikailipiaragasuake. Little change in the extent or enployment of the Rumanian pipeline system is anticipated. Since petroleum production is not sufficient to ten the present capacity of the network, further expansion in ifticedtlyo OD 89 so SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 MHZ VIII, gigaigtaUgadaseLAUS2SasitiliMitigo 1.Inulatajaattatagailaidian. While the Rumanian soonomic plan aims et eventual brood industrializes. tion, postwar efforts have been concentrated on the development of key vs industries to capacities beyond domestic requirements and on the tion of egrieulture. Thus, while the general pattern of allocation of resources ie directed toward greater induetrialisation of the country, current and immediately prospective devolopnent is predominantly in fields iihich provide strategic materials to the Bloc. Strom is placed on the petroleum industry, on expanded production of carbon black, and on devaLop meat of copper, lead, and sincleining. Some attempt is also being mole to develop the production of industrial machinery and equipment sudh as oil drilling equipment and ball bearings. Tractor production is being promoted on a considerable scale as a step toward expanded output of grain. 2. tialgeLtagjatagenfat. Although agriculture employs about three?fourths of the Rumanian labor force it produces only a little more than onewthird of the national inoome. The e:onomic plan, while assigning higher priority to industrial developm meaty will devote enbstantial resouroee to the mechanization of agriculturev - and tractor production is scheduled to increase tree 3,000 units in 1951 U. MOO units in 1955. 3? raltaifilatalandiall? In the allocation or Rumanian resources ender the plan for economic development, requirements for civilian oonsumption reeeive the lowest priority. Zaed and ahelter apparently will be allocated only in amounts sufficient to maintain industrial and agricultural production as sdheduled. Coteibptilme of the Boomer to the War Capabilities gr the U$SK. pr fax' the most important economic contribution made by Rtsnania to the Soviet war potential is petroleum. Rumania is the largest source of petroleia and petroleum pWancts available to the Soviet Union in Eastern BUrope. Only about 20 percent of Rumania's output is consumed domestically, and the rimmnining 80 percent is allocated by the USSR within the Bloc0 aglimolso is expected to make a contribution to the Soviet war potential. An export surplus of 745,000 metric tone, anticipated for 1952v will be a significant Soviet gain in VieV of rising food requirements in the USSR. Other strategic commodities contributed bp- Rumania to the war potential of the USSR are carbon black for rubber tire production, pyrites for the produotion of sulphuric acid and caustic soda and soda ash for the chemical industry. Though small in tLnage, Rumanian exports of copper, lead, and sine are important, since these minerals are in short supply in the Bloc0 lab go .0 SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Various new industries, which did not exist In prewar Rumania, have been started as part of the country's lonvrange industrialisation program. Attempts are being mad.e to produce oil drilling equipment. The dittionlitt of obtaining bell bearinge bas led to the beginning of a domestic bearing industry. Tractors are being produced in increasing numbers. All these industries are still in their WWI', tut thftrreProaaat a significant dhiige in the structure of the eeonomy. This development of Smasnia's --AamWtry will contribute in the long run to the economic potential for war of the Soviet Bloo. *WO immediate contritntions are apparent in the shipments to the USSR of strategic materials, notably petroleum, grain9 chemical products, some nonferrous creep and pyrites. ? SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 '10 .-.1e ? " ?ft' Bemuse of the relatively :Low level of industrialization inftmenial its present import requirements, with same exceptioms, can be Impaled by the other Bloc members. The most Important emption is speolallsed machinery, particularly for the petroleum industry, which in order to maintain current production, requires exploration and drilling equipnent that in many instances neither the USE. nom. Csedhoslovakia can supply. Rumania's vigorem attempts to obtain this equipment from the Vest are evidence of ite serious need. Modern equipment wdll be needed to fulfill plans far a large increase in coal produaGion in the next 5 years. Neely establighed manufacturing industrials will also require:m:61nm and equipnent. If Imports from the 1.4est were completely cut off, the projected industrialization program would be retarded, whereas if Western exports were denied to the entire Soviet Bloc the effect an Rumania would be more severe. A large part of RumaLl's maohine tools, steel, transportation equipment, and agricultural maohinery are imported from within the Elm, and the reallocation of these materials and equipment within the Bloc, which would be necessitated by Western economicimerfare, would force Rumania to modify its economic plans. Purthermore the allocation of resources by the Soviets would probably be severely 11Mited because of Rumania's relatively small economic contribu- tion to the Bloc. Intrapaloc trade could only partially offset the effects of Western measures of economic warfare against Rumania, because the Soviet Bloc is already allocating the maxlmanaleilable supply of machine tools and other industrial equipment. Since the Rumanian emmany has only a few specialised industrial lines opportunities for adjust:met to measuree of economic warfare through :substitutions and changes in production achedules and consumptUnipotterns would he Limited. c92ai MIX Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 a Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 MORN balgiagaitjUnnuattgaLsuaTim. There is no evidence in Rumania of such mar preparations as the mobiliza? tion of manpower or the dispersal of in&ustry. There is no evIdence of stockpile accumulation that mould constitute immediate preparation for mar although there Is some stockpiling of petroleum. Efforts to reduce economic dependence on The West and developmeat of transport facilities are for the most pert an integral part of the Rumanian industrialization program, but the development of some transport facilities coincides with war requirements. ..93wi MEC Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SEC= APPENDIX A RECAPITULATION OF IMITATIONS, DEFICIENCIES, AND REQUIREMENTS OF INTELLIGENCE Sections III, VIII, IL, and X do not have material to be indluded in this Appendix. I.itljpj.SrendsirizrutureofthaE. Unfortunately, the limited time available for the preparation of this paper made It impossible to exploit all the sources of information that were available and to evaluate completely all of the information that was used. Consequently, the following list of requirements should be regarded as tentative And preliminary rather than complete. I,at12110fPPrarlans. a. Methods and agencies uned in formulating economic plans in Rumania. b. Soviet control of Rumanian plan preparation, including informa? tion on the extent to which these plans are drafted by the MM. c. The role in plan control of the State Control Commission, the Commission for Organization of Cooperatives, the Central Statistical Institute, and the State Commission for Collection of Agricultural Produce. d. The extent of Soviet control of plan fulfillment and methods by which this control is effected. 2, Plan Control. a. Libre recent quantitative estimates of industries and economic services nationalized. b. More complete lists of industries and services nationalized sine the original decree of 11 June 1940 and the percentages of total out? put produced by nationalized enterprises. 0. Effectiveness of government control over both nationalized and nonnAtionalized enterprises. cl4 Lore recent quantitative estimates of land collectivized in Rumania. e. The effect of collectivization on agricultural production and distribution. 94 TOP SET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ' Approved For Release 1999/09/08p OfteDP79R01012A000900040001-6 f. Other nongovernmental instrumsnts of economic contl-ol. g. Ilethods tgrwhich these other organizational struotures are utilized by the state an instruments of economic control. 3, Administrative Control of Industry. a. Administrative control of cooperatives and private industry by the Rmenian government. b. Key positions currently held by Soviet citizens in Rumanian industry. 0. Extent to which the Soviet control of Rumanian industry has effectively achieved USSR plans regarding those industries* d. The administratore nwonaux.i.om and the chain of command used by the government to control industry. e. The internal structure of Rumanian ministries, particularly those which implement state planning, f. Soviet-Satellite assistance given Rumania in its capital goods requirements/ investment needes and technical guidance* Administrative Control of Agriculture, a. Degree to which collectivization difficulties have been en- countered thus far. b. The organizational structure and functions of the Llnistry of Agriculture. 5g Administrative Control of Services. a. The extent to which control of commerce has been increased recently by the state and by cooperative organizations. b. Soviet means of control over finances particularly over banking. 0. The organizational structure of nationalized economio services. II, Cepacitir of Human Resources for Economic Development. The estimate of the total agricultural labor force is subject to a zargin of error of about 5 percent. Additional data on the progress of collectivize, - tion and the drafting of labor from farms are necessary for the refinement of estimates. The estimates of the occupational distribution of the labor force are believed to be subject to varying but small margins of error and additional &Ile are necessary for further refine:mart. Further collection of data concerning *** 95 7 TOP SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 . Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET military personnel used in construction and employment of political prisoners is necessary. The numbers of advanced students is believed to be subject to a margin of error of less than 5 percent. Additional data on the training of various types of technical personnel and on the number of Soviet technicians in Rnmanin are needed to determine the number of technical personnel available to theatimanimeconoary. Additional information concerning the level of labor productivity and factors affecting it is required for better estimates of futura changes in productivity. IV. loreign Trade and Finance. The problem of Asking an evaluation of Rumanian foreign trade and finance is made difficult by the lack of information on the value of trade for the period 194047. Another obstacle to trade evaluation and analysis 19 incon- sistency in the data. Attempts to estimate and to forecast encounter the same difficulties of noncontinuous and nonoomparable data. General statements, therefore, are based on different degrees of accuracy in estimating and in many cases need varying degrees of modification, depending on the assumptions used. Trade agreements were used to estimate the planned level of trade, but the official exchange rates indicate projected levels which seem abnormally high if compared from period to period. It is unknown whether these planned exchanges were based on prices in 1938, in 19441 in the previous year, or in the current year, or on world prices. V. ...115.1.,tam. Adequate prewar statistics and statistical bases have been prepared for Rumania by the office of Foreign Agricultural Relations, US Department of Agriculture; the International Institute for Agriculture, Roma (now the Food and Agriculture Organization of the United Nations Organization); and others'. In addition, the Rumanian Agricultural Statistical 'Yearbook is available in the Library of Congrese and the Library of the US Department of Agriculture. Postwar agricultural information on Rumavia has become increasingly unreliable. Until the early-part of 1950 the agricultural reporting, within . the limits imposed by the Rumanian government, '43 fairly good4 but at that , tine!, the vice consul in charge of agricaltural reporting was transferred, and25X9A1 he has not been replaced. This has farther reduced the standards of the US 25X9A .r.-.6711s Bucharest reports. t. 96 =MT Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET In general, the Food and Agriculture Branch depends primarily on news- papers, radio broadcasts, and other incidental information as the basis for its estimates. Mich of the required information, it is believed, could be obtained by a t1 "ed agriculture] reporter. Production estimates could be much more wourate if dependable weather infarcationvero available* VI. Industrial Capacity and ,Levels of Production. A. Ferrous Uetals. Very little information on developments in the Rumanian iron and stevaindustry is being currently received. Reliable data are needed on the location of ore deposits and mines; estimates of reserves of ferrous metals; production figures for 1948, 1949, aid 1950; production estimates far 1951 and 1952; trade statistics on raw materials and semifinished iron and steel products; domestic requirements for iron and steel products; ard progress reports on the expansion of the industry. B. Nonferrous Detale. 1. Copper, Information is lacking =recent production, figures, on the capacity of minas and processing facilities, on requirements, on stockpiles, on expansion of mines and facilities, and on new exploitations at the Alton Tep mine in Tulcea. 2. Lead and Zinc. reformation Is lacking On recent production figura; on whether or not a smelter exists at Gopsa-Mica and, it so, its capacitor; on the capacity of minas and processing facilities; on requirements; on stockpiles; and on the new nonferrous meta combine(. C. Coal. The following information is required: 1, Annual coal production tiguresbrareas and for indivilheal mines if possible. The last year for which such data are available is 1947. 2. Detailed data on individual mines other than those in the au Valley in Hunedoara Province, for which some fairly good reports have been received. Information ahould inclnde-the location, type of mine (shaft, drift or slope), thickness of tba coal seam mining methods, equipment used, mining difficulties, labor conditions anal;ses of the coal, cleaning and briquetting, and destination of the plooduot. 3. Data on thesource production, and types of mining machinery and equipment manufactured in Rumania. The A.C.P. plant in Petrosani is reported to be supplying equipment and apparently serves as a machine repair base, but nothing more is known about this plant, OP 97 as SE0RET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 ' Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 TOP SECIUT 4. Deammatima on the source, quantities, and types of coal ;wining machinery and equipment imparted. 5. Data on the consumption of and roquiraments for coal by various categories of consumers. 6. CUrrent figures on imports of coal and coke from Poland, Czechoslovakia, and the USSR. 7. Data on production and imports of metallurgical coke. 8. Data on the production of gas coke, including information on the plants producing it. 9. Information on the size and location of the principal stockpiles of coal. Petroleum. Historical data =Rumanian petroleum are very good, but since 1948 little concrete information has been received, The major gaps are listed below, 1. Size, location, and type of stockpiles. 2. Exports of petroleum products by quantity, destination, and product, 3. Location, capacity, and output of individual operating refineries 4. Crude-oil production statistics by fields and total. 5. Consumption by quantity, product, and consumer group. 6. Construction of new refineries, including equipment and units to be installed,. 7. Exploration, successful and unsuccessful, for new deposits of crude oil. 8. Construction or expansion of storage facilities, including capacity. E. Electric Power, 1. En' Resources. It is not known what difficulties are being encountered as a consequence of the Rumanian oil shortage and what steps, in addition the decision to place a limit on the consumption of gas by power plants, are being taken to overcome them. There is, therefore, no accurate way to predict consumption 96 TOP SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET of the varioue types of fuels in 1951.52 or to determine how the efficiency of the industry has been affected. Elsotriciier Ganarating Plants, There in almost no postwar inforatima on electricity generating plants in Rumania, A list of generating plants was prepared in 1, with a figure far the caeacity.for each paant, bet a leak of knowledge of the con- dition, age, and origin of the equipeent, of fuel supply, and of the adeqnacy of' trained personnel aims that the margin of error in estimates of the operating capacity of a powar pleat is as high as 50 percent. Such Me in information prevent accurate eatimatmeofzegional ocnoontrations of reserves ar shortages of capacity, and of the balance betneen the capacity-demands of an industrial Installationen& ths capacity ofanearhy power plant, Adequate information is lacking for an estimate of the rate of installatima of new capacity. arr of the projects underlay are known, but completion dates cannot be estimated. , 3. Tranmadsaion. Although there aro eome data an tto abwark of power (maw- ilea between individual pomar plants and consuming centers, there is little detailed information on the condition and carrying capacity of lines and sebstations, h, Production. The 2950 figure for total :predation is probably accurate, but estimates of productiOh far 1951 and 1952 ocatainveakneeses which are um. avoidable Wien percentages puhliehmi tithe Rumanian press, the oay *Venable Boum are wed. Figures farregiontildistribution of predation are lacking fag Ly year. Information of this type would help in estimating .reserve capacity, type of load, and condition of equIpmenb. 5. Consumption. dita on the consumption patternaregoodo but the lack of consumption information for industrial installations is a weakness account.. ing far the inability to determine trends in industrial coneumption. 66 Input Requirements, The Rumanians maybe capable of operating existing facilitiee without large inputs of spareparts materials, and skilled manpower from foreign count r is ries* but poof reqti red, There ie no inforration an 'which to thee quantitative estimates of equipment, materials, and manpower actually received. SECRET Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET F, Chemicals* The volume of current informstion concerning the production of chemicals in Anneal* has declined markedly' since early 1949. Before that time, published statistics an cutput of dbemicals were available, but, beginning in 1949, annual production -was reported only iziterms of per- ventage increases over the previous year's output. Information is needed particularly on the production and capacity of the following plants: wlitrogen, at Ternaveni? mlitramonian at Pagans, Turd & Chemical Wolin: at Turda, Ulcers at Ocna-Edresului, and the Vasa State Vazte at Ude* (1mder construction). These plants produce the bulk of Rumania's heavy chemicals. 1. Sulphur and Pyrites. . Little reliable information is available an the production and distribution of 80phi:rand pyrites in Rumania. The existing world shortage of sdlphur and the future shortage anticipated in pyrites make procurement Of such information increasingly important, since the Satellites are in large part dependent on:the lest for supplies of these materials. 2. Rdbber. Extremely little information is available on the rubber industry in Rumania. 'Data are particularly needed on eynthetic rubber production, existing or planned. Although press reports state that such production is underlay, the c] reportsavailable indicate production is at vulva pilot- .plant or experimental stage. Information an the actual existence of p3ants, their location, facilities, type and process, and raw material, is needed. Recent data on carbon black facilities, production and exports and any post- 'arida% on rubber DI:brio:aim facilities and production would be of value. 0, Engineering Industry. It is estimated that the accompanying paper represents approximately a 50-percent -research job at the material available in CIA. Beteeen10 and 80 percent of the material available was gowned, and it is believed that the nature and trends of the ROmanian engineering industry have been fairly adequately covered in broad outline. About 3 months would be required to complete a thorough research and development of the material available. The following table indicates the thoroughness of the research accomplished on the various 'Alamos of the industry: -1o0 - SECRET ApprovAd For Release 1999/09/08 CIA-RDP79R01012A000900040001-6 Approved For Release 1999/09/08 : 91A-RDP79R01012A000900040001-6 Ihterial Percent a Percent of Available Material Read Ihterial Dovelazed Planning Good 90 Production Fair 75 Requirements Poor 75 Trade Fair 70 Internal Limitations Fair 60 60 50 50 21 o etat4fltiaal analysis of the relative sise of the industry, ex- pressed in such terms as ambers of workera employed or aggregate terimee output, has been compiled. An estiante of tin total number of 110111:0113 Mould rewire tho addition of indisidual estimates on each plant, and no crwr-all Grammer& statistics aro believed to to available in C/A. Official production statistics in other than paroentage terms are not mailable except for tractors, for uhich projections on be Ando from base figures. Calculations of railroad equipment production Imre made from estimates of ex-prisoners of gar az defectors. For other types of machinery ami equipmeht, there are no prOductica statistics although estinertes could be Ea& tqf totalling ex-priaiaaer-olusa.r and defector estimates of individual plant output. Since the reliability of thew estimates vreiries vddelor, and for scam plants are not available, such ovarian estimates rould bo subject to a Vide rgin of ?tutor? Data on requiremente are sparse, bub with considerable effort reason- able estiratee could be made 011 Urn bOldB of produ.otion statistdcs for thee? sectors of the mower *Loh we users of machinery and equipment, such as petroleum and agriculturo. Trade data are in fragrentary fora. No detailed invert or export statistics are avallablavand little 1210re than general con- elusions could be reached. Present information concerning Rumanian aircraft production and Soviet intentions for its utilisation is mro2iob1o, inoomp3.ete0 and fivmpontlar contradictory. VII. Transportatica, A. Railroads. Available intelligence on Roennian railroadsie inadequate in every fiold of railroad aottvitr, Re1tbL traffic statistics for the years after 1945 do not exist. Reliable figures on invontories of loccentives? freight oars, tank oars, and passenger carp are not available after 11450 nor ts 101 =MT Approved For Release 1999/09/08 : CIA-RDF'79R01012A000900040001-6 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 SECRET there aocarate Information on the percentages of oars which era serviaeable, unserviceable, or beyond repair. Although there is fairly good information on network developments and new ltne construction In the southern part of the country, almost nothing is knoan about developments north of the lath parallel, despite the fact that this is the area in which strategic develops's,. are to be expected. Infonnation on line construction, strengthening, and b.roadening is urgently needed. B* Men* Major deficiencies in Information on fluManian highsay transport conoern the followings the specific number, typee, and condition of vehicles ettrrently In the civilian motor vehicle park; the procurement and disposition of motor vehicles, including method, number, type, origin, and destination; amilatenalace procedures and spare parte requirements; locatice and production of repair shops and parts plants; motor vehicle operations and traffic; fuel requirements; vehicle retirement rate; type, quantity, origin, and destination of commodities carried by motor vehicles; the nature and effect of seasonal factors In operaticiim and traffic; total tons now carried by motor vehioles, average length of haul, total ton-kilameters (similar data are also required for animal-draen highway transport); capacity of the road networks, in total and between specific points; requireMente, procurement, and use of road construction and maintenance stach.tnery. C. Water Transport. Mere information an conditions, faoilities, and capacities of the Rumardan river porta is required. A more abourate ?ensue of the river fleet is also, needed, and information identifying the fleet by name type, tonnags, e and official serial number, as well as a brief technical desckption of typical craft, would be vex,/ woeful. D. Air Transport. It is believed that two airfield& n Ituevuela are undergoing major improvements to permit their use by four-engine aircraft, but verification, as tall as the names of the airfields and the ertent of the rehabilitation being undertaken, is needed. Prompt reporting is deriired of any improvement in the system of navigational aide provided at several airfields Which would permit all-weather operations and night landings. E. Pipelines. Major deficiencies in &mailable information on aim:den pipelines Include accurate data on traffic, procurement and eourcee of pipes and pumps, operation and maintenance policies and prectioee, type and quantity of fuel used in pipeline operations, the administrative orruthation of the pipeline wyetem, and plans regarding future construction and operations. SEC Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 5X9A 1 Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6 Next 9 Page(s) In Document Exempt Approved For Release 1999/09/08 : CIA-RDP79R01012A000900040001-6