THE EUROPEAN SATELLITE POWER COMPLEX

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CIA-RDP79R01012A000900040004-3
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RIPPUB
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T
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80
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December 16, 2016
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April 20, 2005
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4
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Publication Date: 
July 1, 1951
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REPORT
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Approved Foi. Release 2005/04/27 : CIA-RDP79R0 CENTRAL INTE.LICENCE AGENCI OFFICE OF RESEARCH AND REPORTS CIA/RR Project 6,-451,1 Contribution to TE E EUROPEAN SATELLITE ?CUM COPIPLr PART I INDIVIDUAL SATELLITE COUNTRIESt ICONCXEC STREilGTHS AND WEAKNIMSES joly 1951 1012A000900040004-3 1 vimmasio NO CHANGE IN CLASS. 0 DECLASSIFIED 7;70 25X1 116 A e? ti ktnr-r-1 T." rc. " AIL AA Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 25X1 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 CIA/BR Project 641 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 WieSECRST THE leactim um= POUR COMPLEX (Contribution to N/2.33) PART I IBDXVIDUAL SATMLITEOds ICONOICD3 STRUMS AM VEZNISSIS AULGARIA The primarily agrioultaral economy of Bulgaria' is scheduled under the Pi. Year Plan (190.63) to be reoriented drastically toward Industrialise- tion, with over four-fiftbs.of investment Mods allocated to heavy industry. However, it is questionable that industry will be able to attain its planned. goal of 55 percent of nonagricultural production in 2953 in view of (1) Bulgaria's great dependenne on. the Soviet Bloc. and an 'Wiliest for industrial materials and equipment4.(2),Inadequatielectric power, and-(3) deficiencies in trained . personnel. in lor event, the industrial development of the Bulgarian economi will continue..te-depind heavily on the Soviet Bloc for financial' andIndus- trial assistance in 1951 and1952. Organisation of the Bulgarian swamp' for purposes of control is patterned closely after that of the Soviet Union. Since January 1950 the government bas extended its jurisdiction over the econcmyiand private enterprise, previoaaly eliminated entirely in 'large industries, has been progressively reduced in mean local industries and trades. Soviet control over the Bulgarian edimumerwas extended in 1950 by the plating of a large number of Soviet personnel in major economic adminis4.e., cos, thus facilitating the Soviet Deices adaptation of Bulgaria to a fie role within the Bloc which will emphasize exploitation of mineral Lnd agricultural reeources. The increased tempo of econceeic assimilation and the extension of Control are placing severe strains on the economy. Weaknesses are apparent in the . shortage of trained reliable personnel and In the disaffection of the papuie,. tient particularly evident in peasant resistance to collectivisation, Develop- ment of the Bulgarian economy is retarded by a shortage of skilled labor and by a generally lev level of labor productivity. Increased technical training of Bolgerians and the influx of Soviet 'and Satellite technicians probably con- tributed- to an improvement in Ube* productivity in 1950. Although the government is able to redirect productive effort to a considerable extent through discriminatory food rationing, a persistent belie weakness is the OOP SWEET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 -111 Approved Fo-r- Releaslaning : CIA-RDP79R01012A000900040004-3 failure of the incentive program to overcame the Apathy of the uorker as a step toward raising productivity. tip : ? 1 y? ? , 3/ .? s ' . :i:;?.alt .. 4 L: but production mmy decline. There is us circirrl , is expected that by 31u17 1951 there will a carry-aver rr ? ICS '-'*--- adequate to cover civilian requivemente for 10 to 12 weeks. Food consumption remains .below prewar levels however* and it is considirably lower than that of Western Europe. Although 50 percent of the arable land had been consolidated 1 by 1950 into larger units suitable for neobanised farming* and davit, the fact that production goals ter farm nachinery may well be attained both acreage and production are mare apt to decline than increase by 1953. Expansion of agricultural prataction is limited principally W dislocations produced In the accelerated collectivisation and mechanization of an essentially primitive agrieultural economy. The program for the industrial of Bulgaria. 4152421111 - tattoo ?, ,/ -p.1 _ henstit of the and other ? ;t ea. ? L - end of 1950* Bulgarian ores and concentrates contributed 4 percent of the total uraelue available to -the USE. Bulgaria has no iron and steel industry* although it has in limited quantities most or the rev material* nectebmanr to support a sma1l metallurgical induetryl !winding a good grade of iron ore and eemeral Of the more impstent terra- alloying elements. Earlier plans for development of a small steel industry have been suspended* iron or and ferroalloy minerals being exported to the USSR and the Satellites. Of nonferrous metals* Bulgaria exports and sjgi4 f'Wnt enoia 2adand 1:11_1e to tlelaso. Coal supplies* low in alizt, ar--Eirr There isno crude? ail production in Bulgaria, and the only prospect for a domestic petroleum industry is in the small unexploited reserves of oil shale* whioh could eventually yield from 30 to 35 minks tons of crude oil. Postwar additions to Bulgaria's -electric power industry, which was *oiled to an agricultural economy, have made only a smell contribution to the .development of the Bulgarian economy., There are sufficient fuel and water resources to supply an expending power industry* but Bulgaria is Almost entirely dependent upon' imports for increasing production capacity and replaoing capital equipment. - Such ismxrrts have been received only In limited miantities. Bulgaria is sywhich it imports from the Bloc and the West to reqoirements. cbem4eis1s, as veil as glycerine* gely to countries of the-T-Its slam mental selphtn. is ) * and total planned production of 40 " a .4. In 1951 i. scheduled for shipment to Cseehoslovakia. ?. ??? -1 The very mall rubber fabrics industry is supplied F imports of approximately 1,000 metric tons of natural rubber per year. The small engineering industry does not now make a significant contribution to the econopy of the Soviet Moo. The Vary large expansion of the machine-branding industry projected by the fly. rear Plan will be difficult of attairment. liettnohiles almost all lettalblea7 and vehieles must, be imported. Bulgaria does not have* nor does its predominantly agricultural economy require* extensive transportation facilities and equipment. Its mmellmseale fogillia,juity. primarily with the Soviet Bloc.. is for the most ? U.14." ir; ? 2 TOP MAST Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Reletup 2fflt*4127 : CIA-RDP79R01012A000900040004-3, part carried across the Meek Sea. Recently Bulgaria has imported more from the USSR than it has exported Po it. In relation to the Satellites the jagagna, though small, more appreciable. /*ports to the USSR to ? other Satellites consist sine concentrates, tobacco, cement, and some foodstuffs. Imports from the Bloc include mainly cotton, metals, oil products, and industrial and agricultural machinery. The Soviet Union obtains some hard currency from the sale of tobacco and rose oil imported from Bulgaria. Receipt of industrial equipment, replacement parts, and medicines thm401 extra-Orbit trade, primarily from Western }Wrap*, contributes to the economic development program. Exports outside the Bloc consist almost entirely of fOodstuffs such as vines and fruits. Little change in the composition or' volume of Bulgarian trade is expected by 1953, although there may be some increase in the export Of metallic ores to the USSR and same reduction in trade vith Western Europe. The Bulgarian industrialisatiOn program- cannot be expected to be sufficiently advanced before 1953 to eliminate continued dependence on the Soviet Bloc for financial, economic, and technical assistance.'r 25X1 TOP SIORIff Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Miff I. ILIESILALS&MBRUZLELZHARESEZ? Ma= The structure of the Bulgarian econoiy, petterned closely after that of the Soviet Union, is organised along fhnotiomal lines under the direct administration of various Ministries. These Ministries are directed by the Ministerial Council,' the *hie exseutive organ of the state, which, vith the adviee of the State Planning Commission, establishes national economic goals. The najur divisions of the annoy and the Ministries responsible for these segments maybe moonrise' as.followst Oprielone of the 'creep Industry and Transportation Farm Vorkeres Cooperatives, State Farms Machine Tractor Station!, and Auxiliary Enterprises Local Industry and Communal Enterprises State and Cooperative Trade Htliber of Workers in State Enterprises, the Salary Fund, and Work Productivity and Reduction Capital Investment DiStributionaMIterials Expansion or Local Industries, Agriculture, Capital Investments, Turnover, Communal Economy, Education, Public Health, and Cultural Activities, under the Nrisdie. tion of the Local Soviets 4.11kitrIPa Cort2(47100 Ministry of Trangportation Ministry of Industry Ministry of Forestry Ministry of Electrification Central Cooperative Union Minietry of Agriculture Ministry of Forestry Ministry of Comma Affairs Ministry of Foreign Trade Ministry of Internal Trade Central Cooperative Union All Ministries and State. Enterprises All Ministries Concerned All Ministries Ministry of the Commune). Economy Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005Netit CIA-RDP79R01012A000900040004-3 Since January 1950 the government has extended its jurisdiction over the economy. Private enterprise, previously eliminated entirely in large industries has been provessively reduced in smell local industries and trsdes. The Bulgarian goverment also has undertaken a militant program of agricultural collectivization since the beginning of 1950. The proportion of individual farms collectivized increased from 14.2 percent in January 1950 to 43.4 percent in September 1950. Cultivated land under control of the state amounted to over 50 percent of all cultivated land at the end of 1950 The government also has intensified its efforts to strengthen the centralized control over the country,s productive resources. A State Coordinating Commission was formed within the tanisterial Couicil in 1950 to deal. with problems of over-all economic direction. Techniques for controlling credits and industrial materials were refined, and special inspection agencies, such as the state and local control commissions, were ordered to increase the *mope of their activities. In addition, executives at all levels of the economic hierarchy were replaced in order to assure that the directives of the central government would be reliably executed. From the point of view of the Soviet 'Onion, Bulgaria occupies a highly strategic position on an exposed flank, and apparently, as a result, the Soviets grasp every opportunity to take over the leadership of Bulgaria and the direction of its economy. A control device used by the USSR was the placing of large numbers of Soviet persom31 in the major economic administrations in 1950. Their activities were facilitated by an official order granting Soviet citizens in Bulgaria the same civil rights as Bulgarians. Similarly, Soviet-trained Bulgarians continued to be placed in positions of major economic responsibility. Coincident with the extension of Soviet control over Bulgarian economic policy in 1950 and 1951, there has been intensified emphasis on agricultural development, as important objectives planned for 1953 in the industrialization program are falling short of attainment. Assimilation of the Bulgarian etonomy and the strengthening of Soviet control permit the USSR to achieve a better division of labor for the Orbit as a whole, as veil as assuring tho continued availability of Bulgarian resources in support of Satellite mobilization. This trend will continue through 1952. On the other hand, the increased tempo of edonamic assimilation and control places severe strains on large areas of the economy. The shortage of trained, reliable personnel needed to meet the problems of centralized economic administration is a major bleakness in control of the econom,? but the primary weaknesses are the disaffection of increasing proportions of the population and, especially, the inchoate resistance of the peasants to collectivisation. Such disaffection directly affects production levels and will continue to be a source, of economic weakness for at least the coming year. - 5 - SEC= Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A6Z0900040004-3 SECRET Ciarlailw Direst Contrql The Bulgarian government in committed to the policy of establishing complete and direct control over the utilisation of the country's produotive resources, both human and material'. This ob3ective-and the institutions and techniques by which it is pursued are patterned after those of the Soviet Union. The continued dedicationof'the Bulgarian Communist Patty in utilising its monopoly of power to remake the country in the image of the Soviet Union constitutes the overriding trend of the current period* In areas which are of direct Soviet interests saah as foreign relations and Soviet-Bulgarian trade, Soviet control approachei the absolute* The USSR -alio is exercising increasing direction over the eeonomr. of Bulgaria relying on indigenous Communist elements as the primary instrument of contra. a. lomm1122Lanniss. The economic policy of Bulgaria, like that of the USSR, receives its formal expression in periodic economic plane. A plan pot only provides policy direction but. also determines in large measure the intensity of control required. It is also an index against whieh the effectiveness of control is measured. I/ (1)ikeltuttignaUlen. (a) addialatio4 or PlaBOnst -PolAer, , Determination of policy in the process of plan preparation is the prerogative of the highest organs of the State, and, as in the Soviet Unions responsibility ultimately rests with the Communiet Party. The Stet* Planning Commissicm, a body of technical planning experts, is responsible for the over-ill direction in the preparation of the plan. 41 Following the Soviet model, Bulgarian policy was to put primary emphasis tea shown in tbe 1949 plan) on large-scale development of the heavy and extractive industries, planned expansion of production in light industries and in agriculture being relatively small. Under this policy the burden of the program for economic developient falls on the rural peasantry, as economic support for the expansion of the labor force, increased foreign exchange for the importation of industrial materials and equipment, and the costs of an extensive control apparatus are to be provided for primarily out of agricultural surpluses. Compulsory agricultural deliveries at the level required could only be assured by separating the independent farmers from their holdings and placing them under the direct surveillance or the state. Therefore, collectivisation of agriculture has been carried forward aggressively. The industrialization program, howeveri;. as initially planneivis not being fully SMUT Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A00900040004-3 realised, Fru* the point of view of the Soviet Union, modification of the initial program for Bulgarian industrialization could possibly be justified in the interest of a better division of labor within the Orbit as a whole. (b) ItiadatajoElandbajaeraM0 The State Planhing Commission is responsible to the Ministerial Council for the preparation of over..all national plans. The Planning Commission is assisted in its task by planning departments in every miniatry and all enterprises under its jurieitction and all community and Alkalize people's soviets.* these panning depeAments are largely .independent of the ministries and enterprises to whidh they are attached, being responsible to the State Planning Commission. The process of plan preparation is a continuous one. . Annual plans are directed toward the goals of the Five Tear Plan, Quarterly plans or estimatee are made in order to *heel progress and provide adjustments. Dynamics of the planning process are such that plan preparation apdsplan- execution are closely interrelated, treparation of the detailed annual plans engages* the attention of the entire hierarchy of economic administration frau the individual ministry to the individual farm and factory. The preparation process is initiated publicly by the rinieterial Council in a aeries of resolutions exhorting the chief economic ministries to correct deficiencies and to present their planning estimates to the PlanningCcinnission within a specified time. The Ministries in turn direct their subordinate-administra- tions to submit annual production estimates to the Ministerial planning sections.. Basic productive units, the individual farm and factory, each prepare an estimate of their output for the coming year. For example, the administrative council of the. cooperative farms is charged with preparing an annual production plan and, concurrently, a supporting labor distribution plan, broken down for each work brigade. 4/ individual plans of the Ministries local and regional soviets, and autonomous* public organizations are reviewed and analysed by the State Planning Commiasion to coordinate planning between different sectors of the eemmXgy. A separate planned estimate is made for each of the factors which enter into the total economic process. There is, for example, a controlled materials plan and a controlled personnel plan. Planned estimates also are made of the allocation of the national:product. The over-all plan is in reality a series of plans, each dealing with different sectors of the econamy and with the distribution of the factors comprising the national product, The primary concern of the government in the process of plan preparation is to insure that estimated production targets are not placed too low. Estimates must be equated to productive capacity. As a guide to this equation' production norms for every possible type of output are worked out, hut higher unit in the administrative structure is responsible for seeing that plan estimates are in line with objectives at its level. Various SIORYS Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Refiese 2005/04/27 : CIA-RDP79R01012A000900040004-3 STOW control arms of the state, Communist Party representatives and special inspection services are utilised both to insure realistio Planning on the part of productive units and to falog through an plan enemation. Productive facilities which are not under direct govern.., meat supervision present a special problem for plamriv. Previouely? assessment estimates for the compulsory delivery of agricatural products were made an an overman regional belie, but the trend has been to refine the assessment on the basis of the estimated yield of the land available to the individual farmer. 1( Little allowance is made for variable factor* in crop yield in determining the aMoUntsto he sold by the. farmers to the state purchasing agencies. Planners assume, no doubt rightly, that the independent farmer will take advantage of every possibility to withheld the product of his labor for his own consumption or for sale at noneontralled prices. The 1910 plan VAS announced by the Ministerial Council in a series of 10 resolutions. Each resolution is a separate plan end indicates the lines of administrative control for the execution of the over-All plan. y mastsusanisLusausuisuman Bulgarian Ministerial Counql/ Resolution Subject Matter Panietriea Concernsi 1 Fundamental Indexes 2 Phu: for Industry and Transportation Plan for Farm Workers' Coopera.. tivei State Farms, Machine Tractor Station's, and Auxiliary Enterprises 4 Plan for Local Industry and ComMunal Enterprise 5 Plan for Education, Science, Pubs. lic Health and Social Welfare 6 ? Tian for State and Cooperative Trade Ministry of Transportation Ministry of Industgy. Ministry of Forestry Ministry of Electrification Central Cooperative Union Ministry of Agriculture Ministry of Forestry Ministry of Cesinunal Affairs (An indicated by title) Mirdetry of Foreign Trade Ministry of internal Trade ? Central Cooperative Union Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Resolution 7 9 10 (2) Approved For Rerease 2005/04/27 : CIA-RDP79R01012A0110900040004-3 SECRET Subject Matter .111.01:1011111111.00111WOOMPOMM1000.160.10.111.0.0011.NOMPoralfeMOOMINIMMVIIMIrolier Plan for Establishing the Number of Weirkira in State Euberprises, the Salu7.1A:nd, and Work Productivity ani Colt Reduction Plan Vor Capital Investment Plan for the Distribution of Materials ? i Plan for the Expansion of Local Industries, Agrieulture, Capital Economy investanints, Turnover, Communal Etroticey, Education, Public Health, and Cultural. Activities, under the Jurisdiction of the Local Soviets - Ptinistries All lenistitisii end State ituterprises All applicable Ministries All Ministries ? Minis:try of the Comoneisl ZINS...4N1104. Importent agencies of control are (a) the material. supply Agencies, (b) the financial agencies, (e) the State Control Consission,- (a) organs Of special ow:tray and (e) the Coonmnist Party. All of these agellaiaa are directly concerned with the proper fulfillment of the plan, as fellows: (a) The Ministry of State Reserves and the Minister of State Supply are .cherged with holding and dietritating the .raw materials stocks of the State.. Critical materials are supplied to industrial estabilehments at the rate required for planned production. Factory inventories are kept at a IttellIMI, and careful audits are made of their utilisatioe. (b) the ricistry of Finance translatea the physical components of the plan into financial items. Through the Budget Control Comission and the nationalised banking system, the Ylnistry is in a position to supervise and control virtually all financial transactions. Government enterprises are requireti to maintain nearly all of their working capital and other fUnds as deposits with the banking erste". All credits granted by the banking aysteft are steply counterparts of the production, plan. Ar vatehiag the bank balances of the various enterprises, the authorities are in a position to detect deviations from the financial Paw and to take appropriate measures. In 1950, financial eontrols were tightened, the circulation of all fends being placed under control of the Bulgarian National Bank. Credits for capital develement are supervised by .the Bulgarian Investment Bank. If SD= Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For ReMese 2005/04/27 : CIA-RDP79R01012A0*0900040004-3 SEM (e) The State Control Cemmigaion on ths national level is paralleled by local Social Control Commissions.- These special inspection agencies cheek an the fulfillment of all government dee/Wens. In practice they direct their inspection activities into areas where the administration is encountering difficulties. For examples.a continuous complaint of the Bulgarian administration and of the consuming public is that production quotas are met by levering standards of quality. Special orders for investigation are issued on the basis. of complaints received. from individualwmokets. People are encouraged freely to criticise local Inefficiencies, and an attempt is made to see that such complaints are submitted directly to the appropriate state organs eithout observing the usual Channels. Failure of the control admissions fully to carry cut their functions is apparent in the disparity between planned objectives and actual attainments. 2/ CO Special control organs or inspection teams are constituted from time to time to deal with specific problems. Late in 1949 a State Inspection was established for assessing the harvest. It was given a broad mandate to check on agricultural controls, the assessment of harvest yields, end other related matters. It is probable that the work of this control group was closely related to the intensive drive for collectivisation which took place in 1950. joi (e) Comosmist Party members are being severely oritleised !Or not properly understanding and felfillim their functions. Largo areas of the econcegy are not considered to be under effective Communiat direction. b. A4m1ntrtret4veCesity91,0 Over-all administration of the economy is the responsibility of the State Coordination Commission. This cosaission? whit:lbws formed in February 1950, sets as an economic cabinet for the Ministerial Counsil. Membership of the State Coordination Commission is as follow jas President of the Ministerial Council Vice President of the Ministerial Council Special Minister appointed by the Ministerial Council An Assistant of the Premier Representatives of the State Planning Commission Minister affluence .Miniater of Labor and Social Welfare Representatives of the Professional. Unions The et:emission does not include representatives from line economic ministries such as industry or agriculture. It is probable that the need for a =RR Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Retease 2005/04/27 : CIA-RDP79R01012A090900040004-3 coordinating body at the highest level arose as a result of serious problems of disorganization in the administration of the wonder. The Intra-Party struggle in Bulgaria following the death or Georg' Matra, provided the Soviet Union with an opportunity to take over the leadership of the country. From the Soviet point of view, Bulgaria oocupied -a highly strategic position on an exposed flank, and its dependability in the Soviet power aligement was considered imperative. Therefore' the Soviet 'Onion tightened its grip on Bulgaria, and all of the Ministries received large nuibers of Soviet personnel in 1950. In contrast With previous years, the identity and activity of Soviet offidials within the Bulgprian Government no longer kept secret. 2,1/ Soviet citizens resident in Bulgaria were granted the same civil rights as Bulgarians, 22/ and Soviet oitizens,.or Soviet-trained Bulgarian:a, have been pities& in strategie seadvisore.positions. in every Ministry and with every large economic, political, social, and military organization. lar (1) libincr! The dearth of information on problems of industrial organisation In Bulgaria is probably related to the primacy of agriculture in that country and may have eome significance in what appears to be a scaling-down of the industrialisation program in comparison with agricultural expansion. (2) 4A41004MM Administrative control over the production of independent farmers is not considered adequate by the Communiet regime. State purchasing agencies under the direction of the Ministry of Internal Trade and the Central Cooperative Union Continually encounter difficulties in filling their quotas for farmers' forced sale of agricultural produce. The Party lacks the dis.. oiplined control needed to compel individual farmers to meet seheduled deliveries. Following consolidation of Soviet control over the central administration of the Bulgarian regime, an intensive colleativisation drive was launched in agriculture in 1950. This was the first sustained large- scale effort to win complete control over the lives habits, and output of the Bulgarian peasants. The drive was samenhat like the Soviet colleetivise.- tion effort of an earlier period. Urban Ccononist units were dispatched to the countryside with the same militant determination and cooperatived were formed under the dual compulsion of force and glowing plromises. A directive of the Ministry of Agriculture fixed the quota of new cooperatives for each district. AV In a. pod of 9 months the amount of cultivated land under control of the cooperatives was raised from approximately 10 to almost 50 percent. U.. SECRES Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A00-0900040004-3 SNOW This overzealous action brcut a peasant reaction or resentment, sporadic open resistance and Increasing disorganisation of the productive life of the Countryside:la ?rile Minister Cherenkov, amolatiug natal's "make haste slowie speech In'thel9300aseelled a temporary halt to the drive. Be stated that more than 50 percent of the farmers had joined the cooperatives but admitted that the Party ?for the time being had failed to convince thee that the cooperative cause MBA right.* 2411 Beery attempt is being made, psychologically and otherwise, to convince farmers of the "rightness' of cooperatives. Amajor reorganisation of the administrative structure for agriculture was undertaken simultaneously in an effort to consolidate control over the farm labor cooperatives. A nay Ministry of Supplies and Food , Production also was created. This ministry is primarily concerned with reviewing standards of production and enforcing deliveries to the State.. It is significant in: this regard that the Minister of Interior Bud Brietose,? was relieved of his duties In this capacity and appointed Minister of Supplies and Food Production. Brietosov is a rough and ready Communist willing to carry out any instructions to the letter. 22/ (3) ci if e Services (Tran tiqpG711S.. .to.) . Bulgarian economic services are regarded by the Communist regime as critical araascd'the economy to.controlo. As a consequence economic services without exception have been nationalized and are clos:aradministered by the state. a, (1) &tent of Nationetlisatien 9f jndustrr. Under the 1941 Nationalisation. Law, industrial enterprises other than these engaged in lumber and food processing, or nearly half of the nationalised plants and factories were put under the jurisdiction of the Ministry' of Industry. Umber and food-processing firm passed under the jurisdiction of the Central CooperatiVe Union and the Ministry of Forests. In addition, mire than 3,0C0 enterprises of local sigeficommt were turned over to agencies of local goverment.. These enterprisasincludmidairies, hewing and hotel industries, slaughter houses, and the like, In 2945, it was eetimated that 93 percent of industrial production um. =timeline& iv Deputy Prime Minister Poptcam reported that 'The private sector has been entirely eliminated in large.male industry, whereas in the mall local industries it has shrank./". to 0,2 percent in the present year (1950).3 Be also stated that the total share of private business in the induarial sector 'mounted to 0.1 percent. Z2/ 1.2 , Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A0130900040004-3 (2) alatilitattkiibiltiaNdiall.ataild2talin? The rapid growth el colleotivisation is indicated tr official figures in the table below. By the end of February 1951 the number of Individual tarn colleotivee sonetituted ?over 50 percent or the total amber of farms In the country. The pace of coLleotivisation ins slowed douh in 1951 to permit the regime to consolidate its control, and it is probable That the oolleatirisatian program in the Attars will mote at a slower to, Collectivisation in Bulgaria 2g/ No.etoeszolussia."--1.--rnalLur ?L Coopers-. So. of Tedivid-. Total 3' Under Coo ti 1 Jan 48 549 44,100 4.4 180,400 1 Jan 49 1.100 78,900 7.2 292,380 1 Ian-50 1,000 156,000 144 550,800 1 Sep 50 1 Oct 50 2,053 2,479 362,000 474,800 33.0 434 4433.300 1,883,080 V Cultivated 3.8 5.9 114 29.4 39.2 W One hectare equals 2.471 sores0 b. tv, - During the'indnetrial nationalisation drives Individual artisans were famed to 3nin cooperatives. rif 2949, with 44,100 Implores swelled In 1,000 artisan otoOperatives the state was in a position to direst the output of inlividual fauftsmeL The totems:A is taking iUrther measures to stavngthen. Its ecartwol over artisans. Produstion combines have been estahlished far all artisan enterprises, bringing together artisans doing the same trpe or vomit in a partioular region in order to aneroise non effective supervision over work standards end output. The artisan Gobbles In Sofia are broken clown into row groupie Shoemakers, shoe repairers, glove.manufaoturers, leather workers; 2) Tailors; 3) None services, including locksmiths, electricians. , painters, plumbers, sod tinkers; (4) Nissellensous, including watchmakers, goldsmiths, oboe patithers, chimney sweeps, photographers, etc. WRIT Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 II. Pozoottfr or ba w 2aisice The agrieultural labor form in &aorta has been astimated at 2,700,000 in 1949 and 2,650,000 in 1950, indiesting a drop of about 109 Pireent? Zt emigration to Turkey continues, the -supply .of agrioultars1 labor will probably doom's. at approximately the same rat* until 1953, but this Is not 41111pettei to have a sigaitleant *Mot on agrienliarral preach:lotion. On the other hand, the nonagricultural labor force is estimated to have increased from (109,000 in 1:9413 to 865,000 in 1949, or about 7 percent, principally In the fields of industry, mining, and construction. ? In 1950, mush Inbar totaled 891,000,, an Inaroase of about 3 percent. Unless the planned industrial goal is changed, the annual rate of increase during the next 3 years mill be tely slightly above that of 1950. The technical training of natilia personnel is Increasing Vela the assistance of Soviet and Satellite technicians, but although predbativity has apparently inareased in the pest year, it is still believed to be relatively low. 1. AlicaulAtialladlaultiniaschafa. The estimated size of the Bulgarian labor force, by category, Is tabulated below. Civilian labor Pores (Estimated as of 1 Zanuary) Thousands 3242.. AUL 19LIL. 222. 122.. Agriculture 2,9700 _ 2,650 2,600 2,550 2,500 Industry, and Construotion 341W 383.2/ 407 4/ 434 460 5/ Transportation and Communications 114 1/ 98 2/ 100 gi ? 102 2/ 104 2/ Commerce, Public ImP1070 etc. 20/ 384 384 3a4 384 384 Total 1.2112 MU Ida 14212 2.1411 The decrease in total esployment is landeictbtediy osased t increases in zeilitary, paramilitary, and forced labor groups. lath the data at hand it is SNILIE Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved ForRerease 2005/04/27 : CIA-RDP79R01012A06-0900040004-3 SACHET difficult to determine the exact else of the famed labor group. However* it is estimated at 75'0000 j2/ The estimate of the agricultnral labor fordo is *object to a seargia error of 10 percent, 'thief: idil inerease with the passage of tisane/ems additional Intelligence collection produces MOM aoaerate based far estleates. The figures for total nonagricultural civilian emplqinent and far industry (including construction) and Oansport are believed to be =greet, aseneft the Accuracy of pehlisbed, data. No data are available for Immerse and public employment* tut as &residual figure within the total nenagrieultaral labor faros it appears to be held oonstant. The Increase In the nonagricultural labor force was smaller is 1950 than in 1949 because the vindsplqired group was being absorbed into the economy and the aunnal innrement in the next 3 years is alpented.to be only slightly above that of 1950. The4Imnolrear Plan shows the govarnsentia interest In increasing both industrial employment and employeent In conetrue- tion, The growth of the &instruction labor fume ban been aleable, and the planned percentage increase in constzuction labor for 2951 in Mud at a higher 'goal than the total Increase in the nonagricultural labor fares* The total member of persons engaged in construotion is difficult to gannet however, because at the aeasonal fluotnatiosie. thie trade and thous* of labor troops (Trudosinne), short.term ftdlanteera labor brigades, and !breed labor in addition to free labor. jai - 26 LerelpfTeehnicallteininaeSicilloplpiOrrieiency? Plitieal appointees replamelmanyof the tembnieigns endurance= who were in Bulgaria at the end of the war: In 1948 tbo Oulgerien press reported that there were 3,000 engineers and architects and 16,000 tedhnicians in the country. 2,2/ The native tecbnical gr baa been supplemented with Soviet and Satellite personnel. The Soviets, in particular, are lawn to be numerous, but data are insaffloient tamales an accurate estimate. Training programs for apprentices, as well as for engineers and technicians, hate been expanded. /n.1949 there neve 61,000 students in intermediate vocational schools and 30,80D in trade sebools14,4 and 6,543 engineers and technicians were reported to have been gradaxted. 15/ In 1951 there are to be 66,000 students in profeseional training sehoo1e;,16, Trainees are also sent to the USSR and to other Satellites. j2/ Little specific recent data relative to efficieney and produetivity are available, the 'best clues coming !Mtn publiebed and broadsast complaints concerning defnctive production and inefficiency and from the eneannent of remedial measures. Percentage increases in productivity are of little value in the absence of an adequate base, but the increase of 13 pereent reported at the end of the first quarter of 1951 over the preesaggyear is a 'feeble gain in view of the failure to moot productivity goals in 1950. UV 15 . =RR Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 3.BIZSDIGUILISLICILMINISAIMILICAULXIINT-11=0,- There are same indioatioas that ?lefties wort is practiced, but the extent is not loom. &ideation of absenteeism woad add psrhape 10 percent to the Ilkan.bour inpatat The =wool= of the nonagrioullural labor farce planned te . for 1952 is than that of the previous yeer. The ammel increase in population of eating eget howerer? woad permit some expension in the labar form even with larger isiliter7 forams, as would the *ore widespread employnent of women, 13110811T Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 25X1 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Next 4 Page(s) In Document Exempt Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 SWEET rito balm Trade and ylatneee AMU Bulgaria's postwar commorse is estimated as being 85 percent with the Soviet glee, initially almost entirely with the USSR and more recently with other Eastern European countries of the Bloc as well. Bulgarian exports to the USSR consist primarily et lead and sine concentrates, tobacco, cement, and some foodstuffs. In exchange for these the SovietUnion sends Bulgaria cotton, metals, oil products and industrial and agricultural machinery. The USSR enjoys special benefits from this trade by importing Bulgarian tobasce and rose oil, which is then sold an world markets for hard currency. Bulgarian trade with the other Eastern European Satellites dhows a somewhat larger excess of imports into Bulgaria than does its traie with the USSR. The general oommodity composition resembles that of the trade with the Soviet Union. Bulgaria's trade with non-Bloc countries is primarily with Western Europe and la of significant benefit to Bulgaria's economic program. Experts consist almost entirely of foodstuffs, such as wines and fruits. ,Imports, on the other hand, are composed ins nly of industrial equipment and parts and medicines. It 11 probable that there will be little Change in the pattern of Bulgaria's foreign trade between now and the end of 1952. Some increase in ore exports to the USSR, and possibly a ought reduction of trade with Master% Europtoan be expected. The Bulgarian industrialisation program makes it probable that Bulgaria's imports from the Bloc will exeeed its exports to that area throagh 1952. Benefits of this industrialisation program will not become evident before 1953. The total amounts involved, however, are so small as to have little effect on the economic potential for war of the Soviet Union. 1. bdazsdustax. The primitive agricultural nature of the Bulgarian wow is refloated in the composition and Tatum of its foreign trade Practically 411 industrial goods and means of transportation must be imported and paid for by soles of agricultural products. SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 SECOS Bulgaria obtains frosVestern Europe materials stieh are not readily available from within the Bloc, intending precision instruments, abrasives, railroad equipment, textile machinery, automotive and aireraft equipment, ball bearings, and bolting silk. In certain instances the quantities sought have inAlcated that some of these imports may be destined for third parties* Imports from the West are beginning to be curtailed by export controls. The denial of a German license for aithrake spares, for .example, will considerably handicap Bulgaria's strained railway system. 231/11.101.12,3 9gagelo Switserland, Italy, Austria, and West Germany have amounted for the bulk of Bulgaria's trade with the West. This trade has been complicated by Bulgaria' e- inability to :supply commodities desired by the West, as:wale* by trade practices such as the refusal to accept agreed-ion secondary items under a trade pact with Italy and the undercutting of legittmate business in Austria in dealing through USIA (the Seviet..controlled firms in Austria), Failure to reach settlements regarding compensation for nationalized iestern properties further deters expansion of trade* bp lingalL12.bitailadaRiaga. Tne largest Bulgarian exports to non-Soviet areas are foodstuffs, During the first half of 1950, Dor instance, Bulgarian exports to West Oermmqr oonsisted of eggs, fruits, tobasco, mine, and *rude ohemicals. The extent of this trade is small, totalling only 03440000 for the helfwyears rts to Italy for the same period, composed mostly of grain, with moms meets and eggs, wore 3354,0000 .2/ Other food exports included such items as tomato paste, rose oil, and red pepper.A/ 40 Imports frontUomrSoviet Bloc Countries. Imports have been oharaeteristioany Industrial* Per example, machinery, electrical equipment, and noppreeious metals and manufactures comprised the great bulk of Bulgarian imports from Sweden in 1949 and during the first 9 months of 1950. There was, however, a noticeable shift in emphasis during this period from imports of technical equipment to imports of metals and metal products. 3/ The regular trade agreement with Belgium provides for Bulgarian Imports of eleetrical equipment, machinery, and transport equipment. A/ In addition to this, Bulgaria is reported to have completed a recent agreement for 360,000 Belgian francs worth of ait. compressor hammers to be paid for with Bulgarian vines. 4/ Austria is Bulgaria's largest trading partner outside the Soviet Bloc and provides bearings, steel products, electrical apparatus, machine tools and.parts, transportation equipment and parts, and chemicals. 23 SICREP Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A090900040004-3 WORM Trade with the other Western leropean countries fellows the same pattern. Other countries outside the Soviet Bloc, such as Egypt and Argentina, aupply raw materials (cotton, wetly hides, and quebracho, et 7,) ahloth are utilized by Bulgarian fabricating industries. d. Itsmga. It is probable that the general composition of Bulgarian trade with non-Soviet Bloc countries will remain Omit the ease In 1951 and 1952 82 it was in 19500 Imports of equipment from Soviet Bloc countries, however, will gradmally reduce Bulgarian dependcnee upon Western European countries for replacements and spare parts* This shift to Soviet Bloc sources, coebined with Western expert controls, may reduce the volume of Bulgarian trade with the Wasta 3. Insbudnusisciatauusaatan, Trade with other countries of the Soviet Bloc composed about 80 to 85 percent of Bulgarials total trade in 19490 or this amount, the Soviet Union accounted for about one-ftird of the imports and onsAalf of the exports, and ?eland, Czechoslovakia, and the USIA together provided about one-third of the imports. Czechoslovakia was the most important recipient of Bulgarian exports after the USSR. a. 11122121.12.kda.M211.491=2?. The USSR, and, to amnoth lesser extent, Czechoslovakia, Poland, and Hungary, import all of Bulgarian ore exports* The most important of these are lead and sine concentrates and some copper. In addition, the USSR receives the bUlk of Bulgarian tobacco and rose oil and, sells most of these items on world markets far the Soviet account. This adds to the Soviet Unionos supply of hard currencies. In addition, the USSR receives from Bulgaria foodstuffs, wines, and ether agricultural prodects. Reports to Czeohotlevakia consist primarily of tobacco, hides, wheat, other agricultural products, and some nonferrous ores and concemtrates* Those exports represented about 10 percent (about $10 million) of Bulgarian exports in 1949c Bulgarian feodstuffs have been melange& in large quantities for Industrial goods from US/A. These exports of foodstuffs are of Importunes to the Soviet Union, because of the Austrian black-market operations of USI Imports from Bulgaria are usually brought in without passing through customs, thus giving the USIA outlets a big competitive advantage In the Austrian markets. Bulgaria exports goods of similar categories to the other Satellites but In lesser quantities. CD 24 de, SERV Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Apart' from Soviet Bloc Countries. Bulgarian industrialisation* such as it is, is being developed primarily with importwermaterials? supplies* and equipment from Soviet Bloc countries. The Bulgarian econceyidil thus became less and less dependent -upon imports rran ether countries for replacements and spare parts. Purthermare since the Bloc absorbs the overwhelming proportion of its exports, Bulgaria would be unable to pay for any large quantity of imports from the West. ? Imports fres the Soviet Union* totalling about $46 million to $449 minion in 1949, included for the most part iron and steel products nonferrous products machinery, petrolaue products, cotton, ma* and chemicals. 9,t Imports fron Poland are second only to those from the Soviet Union. They totalled $24 million in 1949 and were eomposed primarily of roada building and other heavy machinery and chemicals. 2r Bulgaria receives from Czechoslovakia machinery, electrical apparatus transportation. equipment* eonstruction equipment, and Industrial mathinery. The total of this trade was about $10 million for 19499 9/ DS/A supplies large amounts of truas, some electromotore, and other industrial products to Bulgariac. IQ/ Electrical apparatus and instruments are the main imports Ileasifungar7. Petroleum products come from Rumania. Trade tdth Albania is untepertant. c. rrobahle Trends. The Bulgarian Five Tear Plan as originally oonesived projected a large-scale and intensive development of foreign trade. Support of then= by the USSR and the rest of the Soviet Bloc called for a considerable effort on their part. There have recently been indications that, in Bulgarian ' development, the emphasis on industrialisation may be reamed and promotion of agriculture increased. Such a shift in emphasis would, of course, in the long run reduce Bulgarian requirements for capital goods and industrial materials below the levels at which they would otherwise have been. However* shipments of construction equipment, agricultural equipment, and industrial equipment continue. The probability is that sufficient Industrialisation will be inslertaken to develop further the nonferrous Metals industry, to Increase someehat the electric power capacity* to complete the nitrogenous fertiliser plant, la/. and generally to provide the maintenance and repair facilities for Increased mechanisation of agriculture and of related elements of the econopy* such as transportation. Trade with the Orbit is likely to continue along present lines for the next year and a half, with possibly some increases In volume. Trade with the Soviet Union in 1950 reportedly increased 20 percent over 1949. 13/ This trend will probably contdnnes although it is doubtful Whether Bulgaria can greatly expand the actual volume of its total exports before 1953. In the meantime, the Soviet Union and particularly the ether countries of the .25. =car Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000.900040004-3 SEWS Soviet Bloc will continue to provide Bulgaria with the industrial products needed to sustain the eco noey and increase agricultural and metals production. 4. bombard_ or TradeLyith NonmSovie Bloc Areas. Bagariass trade with nenmSeviet Bloc. areas is about 15 to 20 percent of Its total trade. The bulk of its non.,00bit trade is with Western Bdrope and will undodbtedly decrease as Bulgaria's exports became more absorbed within the Bloc and as Western contras on trade with the Bloc increase. 5. jruccueensated Deliveries to the USSR. At the end of the war the Soviet Union traded German assets in Bulgaria for Bulgarian assets in Germany, making a net profit of about $100 minion on the transaction. 14/ Other war claims and assets were settled to the benefit of the Soviet Union between 1945 and 1948, including one goods credit of $19 minion. Di There are at present no Soviet or joint.otoek companies in Bulgaria, nor does Bulgaria pay any reparations to the USSR, 13/ Financial manipulations however,'provide o =Mod of Soviet exploitation which Is used in trade with glgaria. The official rate of the lova has been progressively reduced from 15 to the ruble to 100 to the rehle in additions, the disproportionate increases in Soviet prices have lessened the return to Bulgaria for its exports. IV 6. ItandLC; The primary trends reflected by the Bulgarian Five Year Plan (194845) shows sharp increase in the exports of animal products and processed goods and a decrease in the exports of industrial crops, as well as a sharp increase in the imports of machinery, equipment? and metal products and a decrease In the imports of raw materials. : The pattern of trade until 1953 probably will continue to reflect these trends. Iges the Miming table an porsent460 allocations in Bulgarian tarsi= trade.) MUT Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 da7 Approved For Rerease 2005/04/27 : CIA-RDP79R01012A000900040004-3 Bulgarian Foretell Trade 194849 =ions at tf MUM, Country Eastern Bump. Orbit USSR 59.2 47.5 Czeohoslovakia 15.5 10.4 Hungary 1.5 8.5 Poland 6.0 2400 Rumania 2.0 4.0 USIA (Soviet Zona) 6.0 10.0 Subtotal 2214 Iasi NeenOrbit Finland 0.5 0.4 'Yugoslavia 6.8 Subtotal 2a3. gaik Western Europe Austria 2.6 5.9 Belgium 0.8 2.4 Denmark 0.6 0.3 Prance 1.1 0.5 Germany oa 04 Italy 2.7 2.5 Netherlands 0.3 0.5 Norway oa oa Sweden Switzerland UK Subtotal Others Egypt Graeae Turkey US Other Subtotal 0.6 0.9 1,0 2.0 1.6 2.8 2161 0.9 04 0.8 0.4 2.1 1.4. 1.3 11 /al 1242 42.5 11.9 45.0 10.9 1.6 8.5 6.0 2.4 2.0 4.0 6.0 1.0 224 ILA 0.1 003 16.6 11147. 24 3.4 4.5 0.2 0.3 04 0.1 1.3 004 0.2 3.0 24 3.2 0.3 04 0.2 0.1 105 0.9 1.2 0.4 0.6 0.6 11,22 1222 1.9 1.2 1.3 0.4 2.6 1.9 2.6 14 fiala Total itiaal MA 23A2 10,4 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 MOM . Approved For Retease 2005/04/27 : CIA-RDP79R01012A09000040004-3 SECRET Five Tear Plan Percentage Anocations in Bulgarian Foreign Trade 1.111MOMM.110?11????????.........jagaILMOMMI....0.0101?011MINMI...... Industrial Crops 75.3 Grains and Legumes 3.6 Fruits and Vegetables Fresh 2.8 Canned 3.2 Wine and Spirit Products 1.4 Animal Products 4.7 Minerals . 6.2 Products of Wood.precesaing Industry 1.6 Other Goods . 1.2 Immorts Maehimery and Equipment 24.9 Metals and Semiproeessed Metal Goods 25.5 Textile Rem Materials 12.1, Bides and Leather Goods 0.3 Rubber and Rubber Products 1.9 Petroleans Products 5.3 Cho:deals 7.5 Medicinal Articles 2.3 Cellulose and Paper 6.4 Food Products 10.7 Other Goods 2.8 28 OMIT 1221 34.6 9.11 8.9 11.5 9.0 1/.0 3.2 2.7 3.3 121.41 48.9 23.1 6.7 1.0 1.3 5.0 9.7 1.7 0.6 0.4 1.6 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Rerease 2005/012TCIA-RDP79R01012A0170900040004-3 At the close of World Var II, Bulgaria was a country uith a primitive, self-sufficient type of agriculture characterized by small peasant holdings divided into uidely scattered stripe, by primitive tools, and by customs and habits handed doun from generation to generation. Since then, the government has inaugurated its collectivization program, and by the end of 1950 approximately 50 percent of all arable land was in collective, or state, farms, Peasant re- sistance to the collectivization program has retarded production and may tend to decrease it further Because grain is the most important food crop, a separate analysis is presented. Exports of other agricultural products form an important part of Bulgarian foreign trade, and tobacco is the most important single item exported. The 1950 grain production is estimated at 3,247,000 metric tons, or 9 percent below the prewar average9 In the postwar perio4population increased 10 percent. Therefore, the per capita availability of grain in 1950 was appreciably below the prover level. Grain stocks as of 31 July 1951 (the end nf the 1950-51 consumption year) are expected to be 385,000 metric tons, or almost a 3-month supply. The size of these stocks is not large enough to in- dicate war intentions. 1. Production. a. Bulgarian agriculture at the close of World War II was of the traditional, primitive, small-peasant type, based on motorise and habits handed down from father to son for generations. Since the mar the government has made attempts to consolidate the small individual holdings into larger units suit- able for mechanized farming. EV the end of 1950 about 50 percent of arable land had thus been consolidated. Lechanization, however, does not necessarily increase production per hectare, although it does increase production per man and thus releases man power for other activities. In some districts the p,asante are resisting collectivization, and there is the possibility that, because of sabotage, production may decrease throughout thm currant Plan periodo The important crops are grain/land tobacco. Tobacco is the most important single commodity in value exported by Bulgaria, whereas grain is the chief item in the nutrition of the population. In addition small quantities of sugar beans tomato paste, and other agricultural products are exported, the combined total forming an important part of Bulgarian exports. Because of its importance as the basic food and feed item, grain is the only agricultural oommodity analyzed in detail. * drain unless otherwise specified includes corn (maim), wheat, rya, cats, barley, rice, and such minor grains as spelt, mmslin, and bnekUheat. 29 CID Approved For Release 2005/0111CatIA-RDP79R01012A000900040004-3 Approved For Relase 2005/04th : CIA-RDP79R01012A000900040004-3 b. About 50 percent of all grain is produced in the Danubian plain north of the Balkan mountains. Some 30 percent is grown south of the mountains in the Uaritea Valley. The remaining, 20 percent is scattered over plateaus and upland valleys. Before Toad War II, Bulgaria seeded,to grain an average of 2,862,000 hectares, which produced 3,578,000 metric tons, of which 269,000 metric tons, or 7.6 percent, were exported. During the war, acreage dropped slightly to 2,714,000 hectares, but since the war this has increased, reaching 3,039,000 hectares in 1950. Grain production in 1950 is estimated at 3,247,000 metric tons, or 9 percent below the prewar average. Latest Annual Estimates of Grain Production - 1948..50 Thousand rietric Tons Pro. Range o Year Estimate Variation of Estimate 1948 3,575 3,387 to 3,763 1949 3,411 3,231 to 3,590 1950 3,247 3,076 to 3,418 2, Probable Production, Grain acreage in Bulgaria is, within a narrow margin, statiepand it is unlikely that there mill be a significant increase in the sown area in 1951. Because of unrest among the peasantkthere will probably be no significant increase in 1952, and there may possibly be a slight decrease, ,Estimated Grain Production 1951-52 s Thousand netric Tons Probable Range of Year Estimate Variation of Estimate 1951 3,634 1952 3,658 3,443 to 3,82E 3,466 to 3,851 The 1949 and 1950 crops were both below average because of unfavorable weather conditions and peasant resistance, the principal factors which gill also determine production in 1951 and 1952. Estimated production for 1951 and 1952, therefore, assuming average weather conditions, should be equal to or slightly above the 1948 level. Approved For Release 2005/04PEA-RDP79R01012A000900040004-3 Approved For Rerelse 2005/0a2L'061A-RDP79R01012A0C10900040004-3 Domestic Requirerents. Domestic civilian requirements of grain in 1950 are estimated at 3,328,0u0 metric tons but may range from 3,269,000 to 3,388,000 metric tons. Estimate* of total roquirements are based largely on annual increases in population. The drop in requirements between the 1949-50 and tho 1950-51 consumption years is, however, accounted for by thesught amp in 1950, since less grain was used for livestock feed. The reduction in feed for livestock was not sufficient to decrease livestock numbers materia14. This is reflected in the estimated grain requirements for 1951-52 consumption year, which are based on normal practices. Estimated Emestic Bewirements of Grain 1948.43 Thousand . Uetric Tons Year Estimate Pro.. Range o Variation of Estimate 1948-49 3,407 3,341 to 3,472 1949-50 3,370 3,308 to 3,431 1950-51 3,328 3,269 to 3,388 1951-52 3,497 3,430 to 3,565 1952-53 3,528 3,461 to 3,596 4. Stockpiles. Because of the poor harvest in 1950 and the discontinuance of imports, the Bulgarians may have been forced to dram on their total stocks. The decrease probably amounted to about 81,000 metric tons. 1/110.10.1.111111?111?111111100?01MMISM.1?131. Stockpiles of Grain Thousand Metric Tona As of 31 July 1950 31 Za13r 1951 Estimate 466 (3 months' supply) 385,a/ (2.7 months' supply) Probable Range of Variation of Estimate 344 to 466 151 to 669 a/ Statistical cumulation., 431ca SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/0411lA-RDP79R01012A0015900040004-3 3. Surplus or Deficit. The probable surplus or deficit as of 31 July 1951 and 1952 is given below without taking into account carry-over stocks or net trade. If carry- over stocks are considered and the 1951 harvest estimate is correct, then there should be a total surplus of 515,000 metric tons on 31 July 1952, Stocks or a surplus of this size, if not exported, might indicate that the Bulgarians were expecting an cmercencY. Estimated Surplus or Defleit of Grain (Domestic Production rear 31 July 1951 31 July 1952 Estimate (-) 81 (.013o Variation of Estimate (-) 193 to (4) 30 (4.) 5 to (4) 255- 6, -Collectivization., Collectivization of agriculture it Bulgaria began in 1944 with the formation of 147 so-called Labor Cooperative Farms. Consolidation of small peasant holdings into large fields seeded to a single crop use facilitated by the lone-established custom coma= to many villages in Bulgaria of village crop rotation, Although each peasant seeded his own individual plot* himself, only uheat vas seeded in one parte the village, corn in another, the barley in still another, etc, Bulgarian peasants uere accustomed ,to a system of large areas, comprising hundreds of indtvisbiAlly,owned plots, seeded to single crop, It uas, therefore, not too difficult for the peasant to cooperate. in the cultivation of the Labor Cooperative Farms as an outgrowth of their village crop rotation system. Pressure brought by the government on individual peasants hastened the process of collectivization, so that by December 1950 fully 50 percent of the tillable land of Bulgaria.uas cultivated by 2,568 Labor Cooperative Farms. 7. Trends -- Including Indications of Babilization for War. There is no indication that there mill be an increase in the area seeded to cereals in the mar future. Because of the relatively static position of the Bulgarian grain acreage, it is unlikely that intentions to mobilise for uar would be reflected in a change in the grain acreage, Such quantities as might be required to conduct a campaign against Yugoslavia, forcumuwaxi, could readily be shipped from Odessa. Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 11 Industrial Capacity and Levels of Production. A. Ferrous liotals. Bulgaria has no iron and steel industry, its small fabricating plants being entirely dependent for semifinished iron and stool upon irports from the USSR, Austria, Hungary, Czechoslovakia, and Poland. Bulgaria has, houever, a good grade- of iron ore and several of the more important forroalloying metals, zhioh are no shipped to the other Soviet Bloc countries. Righ-quil14ty coal suitable for making metallurgical coke is not mined in Bulgaria, and the small mount of metallurgical coke used in industry is imported from Czechoslovakia and Poland. Deposits of iron ore, chrome ore, manganese, nickel., titanium, and tungsten exist, but none has been thoroughly developed. Bulgaria needs equipment, mining experts, capitaiand improved transportation facilities in order to expand production of ferrous metals. Plans for a small domestic iron and steel industry appear to have been abandoned. 1. Production, Bulgaria has most of the mu materiale needed to support a email steel industry a gpod grade of iron ore and several Of the more important ferroalloying metals -- but all production is now shipped to the other Soviet Bloc countries. Production of ftrrous Ebtals 194840 Year Iron Ore (?0ti: Fe) Chrome Ore Metnic Tons Manganese' Ore 1948 38,000 33,000 3,000 1949 38,000 34,000 3,000 1950 40,000 34,000 4,000 20 Estimsted Possible Production and Gapecity. Deposits ot ironer*, obrom ore, nengenese* niekel* titanium* and inngsten exist in &aorta* but none has been thoroughly developed* and reserves of these metals are net large* Production in 1962 is estimated as follows: Irma ores 40,000 **trio tons, chrome oras 45,000# and imulgonoso ores 60000 Because there is no iron and steel industry* there are no domestic requirements for ferrous SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005104C2STCIA-RDP79R01012A000900040004-3 motels and no etookpileso An iron ore produced is exported to Bingen., Polani Cseohoslovekla. and Rumania, and.all chrome ore is sent to Bast Geraanyo IL is believed that all mengenese ore is shipped to the USSR? Ms Five Tear Plan.oalls for the production of 20,000netrio tons of pig iron end 10,0001mM:rig tone of raw steel kr 1953, In order to ***owlish the production goals for 105 of the Five Year Plane a coke plant, too blest ferneees, and a small integrated steel mill wore to Imre bean built, but there is no evidences that audh courtmmrtim is under Iwo 3.ik_a3_,...._4_t_errLimiatiens. Bulgarlaneeds equipment, mining experts, capital, and improved trans- portation facilities in order to expand production of iron ore, chrome ore, and manganese and to exploit resources of other ferroalloying metals. 4. Trends s.=_lngkidsL2fLggnfL2LaLuk...Astn_wabt.,b za Since Bulgarian plans for a small iron and steel industry appear to have been abandoned, it is not anticipated that great strides mill be nade in the mining of ferrous metals. a* 34'a SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 D. Nonferrous l'etals. Summary The production of nonferrous retals in Bulgaria except for copper and lead and zinc conce:trates is unimportant, and any requirements would have to be supplied through, imports. for is Bulgaria a particularly important producer of cop:er, estimated production being from 1,250 to 2,000 votric tons of contained copper ineopper ;.ntte, which is shipped to the USSR for further Drocessing. Recent information on the calacity of tho smelter at Elisonja is lacking, but production of from 6,000 to 7,000 metric tons of matte a year may be possible by the end of 1952. Production of electrolytic copper will begin as soon as the :bzdra-Kurilo high-tension power line is completed. Ore reserves are not extensive. Any increased production of corper mill probably be shipped to the USSR, with limited quantities going to Czechosloval:ia. Lead and zinc concentrates are exported. The metal content of lead concentrates produced in 1949 was 11,250 metric tons, which in terms of recoverable natal after smelting and refining is estimated at 10,000 aetric tons, In 1949 the zinc concentrates mined contained 4,640 metric tons of zinc, which in terms of recoverable metal is estimated at 3,700 tons of zinc. The production of recoverable Lietal in 1952 is estimated at 13,100 met:ic tons of lead and about 5,000 tons of zinc. According to the Five Year Plan, the capacity of existing concentrating plants is to be enlarged, and lead and zinc smelters are to be constructed. Details are lacking, however, on construction deadlines. Present domestic requirements are estimated at 1,000 metric tons of lead and 1,800 to 2,000 tons of zinc per year. The USSR has sent a number of technical personnel to Bulgaria to aid in the development and exploitation of mineral deposits and will supply equipment for nem metallurgical plants in Bulgaria. ???????????????? 411111.?????????????????? 1. ....o.RELC. a. Production. Bulgaria is not a particularly important producer of copper, and the entire output is exported to the USSR. A small copper smelter 1./ located at Elisenja near Sofia produces a copper matte containing approximately 69 percent copper. Production in 1950 is estimated to be from 1,250 to 2,000 metric tons of contained copier in the copper matte. exa 35 SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Releise 2005/04/27 : CIA-RDP79R01012A0017900040004-3 b. Estimated Possible Production and Capacity. No recent informtion on the ca;acity of the Elisenja smelter is mailable, but previous estimates indicate a production of about 20 tons of matte a day. This uould amount to betueen 6,000 and 7,000 netric tons of matte a year, aUoin for interruptions and shutdouns for repairs. The smelter and concentrating plants at Elisenja, uhich uere built by a Franco-Lelgian csany and nationalized about S :rears ago, process ores from the. Burgas area on the Meek Sea coast and from the Plakalnitza rains, Information indicates the possible production of electrolytic copper ae soon as a high-tension pouer line is-comaeted fr^m Nesdra. to C. Durestic Revirements. Informatirn is lacking on present requirements. Houever, according to the US Bureau of lanes V, Bulgaria imported an average of about 1,600 metric tons of ,Jopper a year for the period 1935-39. All copper minerals . and matte are shipped out of Bulgaria for further processing and refinini-band it is beliowd that very little, if any, copper is stockpiled. Therefore, the ocuntry depends upon outside-13moms, probably the USSR, for its domestic rcquirements. d. Internal Limitations (1). Availability of Ran Uaterials. The reserves of copper are in Bulgaria in 1935 rere estimated as fcllous Ah Proved Ore I-robable Ore Metric Tons Cooper Percent 190,000 500,000 150,000 4.5 4.5 2 to..3 These reserves are not very extensive, but they could be exploited by the USSR for about 8 years at the rate of 4,000 tons of copper a year, (2) Shortage of Rau Uaterials, Technical Personnel, and Equipment. The USSR has taken over the Bulgarian mining industry and has sent technical personnel in considerable numbers to Bulgaria to exploit the mines. According to the Five Year Plan, copper production in 1953 should a" 36 ala SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Rrelease 2005/042+4r6A-RDP79R01012A000900040004-3 be 317 percent over 1948 5,./, Which would nean the mining and processing of about 100,000 metric tons of oro a year. The Plan also includes the installation of a converter in the Elisenja smelter, which will maim possible the production of blister copper for the proposed electrolytic plant. The equilment will probably be imported from the SR 5f or other Satellite countries such as East Germany or possibly Czechoslovakia, e, Trends. All information points to the increasing production and processing of Bulgarian copper, which will probably be shipped to tho UM and imitated quantities to Czechoslovakia. 2. Lead and ?inc. a. Production. The latest information on production of lead and zinc concentrates is for 1949. 2/ It is reported that all of these concentrates were shipped to the USSR, Lead and Zinc Production 1949 Production Detal Content UStric Tons Metal Percent Lead Concentrates 15,000 11,250 75il Zinc Concentrates 8,000 4,640 58 il Other accrues indicate 73% lead. W Estimated Possible Production and Capaci0 According to the Five Year Plan, the production of lead and zinc ores is to be increased 68 percent over 1948 levels. To this end, the capacity of existing concentrating plants is to be enlargedmand it is planned to construct lead and zinc smelters. 2/ Thus far all concentrate have been shipped out of the country for processinc, Dazed on the scanty information available on production in 1949 an:' using the increase proposed in the Five Year Plan, the estimated pro- duction of lead and zinc concentrates in 1951 and 1952 would be approximately as follows: SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Re Tease 2005/04MMIA-RDP79R01012A0-00900040004-3 Estimated Lead and Zinc Production 1951-52 iletric Tons 1951 122 Lead Concentrates 18,600 20,200 Natal Content at 735? Pb. 13,600 14,700 Recoverable Lead at 89% 12,100 13,100 Zinc Concentrates 9,900 10,900 /Mal Content 5,750 6,320 Recoverable Zinc at Sait 4,600 5,056 Planned production of lead metal in 1953 is 13,300 metric tone. This requires the construction of one or more lead smelters. No figures mere given for zinc metal production planned for 1953. There is, therefore, no basis for comparison. c. Domestic Requirements. Information on domestic requirements is lacking. However, the Bureau of Dines4/ reports that Bulgarian imports in the period 1935-39 averaged 739 tons o lead and 1,216 tons of zinc annually. Present requirements have probably increased to some extent, poseibly up to 1,000 tons of lead and 1,800 to 2,000 tons of zinc, an increase of approximately 50 percent. The requirements are for semitabricated naterial such as sheets, lead and zinc tubes, and lead shot. Information on quantities is lacking. The metal content of the lead and zinc concentrates produced in 1949 indicates a surplus over domestic needs. This will prevail through 1952. Information on stockpiling is lacking. d. Internal Limitations. (1) Availability of Raw Laterials. No authentic data on ore reserves are available, but according to a Bureau of Lanes report there is an important mineralized region in the Rhodope mountains in southern Bulgaria, occupying parte of Plovdiv and Stars- Zagora Oblast. Natal content of ores from the Rhodope district varies widely-- 1 to 47 percent lead, 2 to 20 percent zinc, up to 2 percent copper, and up to 500 grams of silver and 50 grame of ;sold per ton. Ore reserves of the district have been estimated as high as 200r4l1ion metric tons. Production from these deposits began in 1925, c? 38 al SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/0410TZIA-RDP79R01012A000900040004-3 (2) Shortages of Ram Materials, Technical Personnel., ?pmnnt. and Other Limiting Factors. Known deposits are a considerable source of rau materials. It takes tims, however, to prepare ore deposits for extensive mining oper- ations* The USSR has sent a number of technical personnel to aid in the development and exploitation of Bulgarian mineral deposits, aquipment nill be obtained through trade agreements, as an- nounced in a speech by tho BalgarianNixdster of Foreign Trade in Jay 1950. Under a long-term trade agreement with the USSR the Soviets nill supply equipment for non metallurgical norks. Transportation problems zw cause some delay in the exploitation of the Rhodope area. e. Trends. All information indicates an extensive though probably un- realistiesprogram for increased production of lead and zinc. 3. Other Nonferrous Mtala.- Tho production of other nonferrous metals in Bulgaria is unimportant, and any requirements would have to be supplied through imports. SECRET ? Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/0021A-RDP79R01012A000900040004-3 Coal? Sumnary Bulgaria produced 5,250,000 metric tons of coal in 1950 as compared eith an estimated 4,800,000 tons in 1949 and 4,015,000 tons in 1948. Nearly 95 percent of the output consists of lignite, and nearly 80 percent of the total comes from the nines at Dimitrovo (formaflyllaird1). The quality of coal, in general, has been poor, principally because of its high ash content and inadequate preparation. The revised plan for 1951 calls for production to increase 24.8 percent, or 4300,000 metric tons over the 1950 output, which is equivalent to the original goal (6,550,000 tons) for the last year of the Five Year Plan (1953). A gain of 1 million tons in 1951 appears to be a more realistic projection of what is likely to be accomplished. It is estimated that out- put in 1952 will be 6,875,000 tons, or 10 percent higher than 1951. It is believed that production was more nearly in balance with re- quirements in .1950 than in several preceding years, The shortages that have existed have been felt mainy by household consumers. Allocations are approximately a, follows: railroads, 35 percent; electric power plants* 15.5 to 17 percent; Atter industries (inducting briquettine), 30 to 33 percent; and domestic heating, 18 to 20 percent. There is no evidence of any Imports of coal in 1950, but Czechoslovakia probably has been furnishing about 2,500 tons of mice annually, probably of metallurgical grade. Bulgaria has a coke plant at Plachkovtsi and another at Kazanlik, but production as well as requirements is very small. There may have been smAll exportsof coal to Egypt and Austria. - A few mines in Bulgaria have received raodern equipment in the last few years, apparently frun the USSR, but mining methods in general are primitive. Most of the equipment is of German make and is now old and in poor condition. Bad working conditions and low pay make the industry unattractive to labor. Production depends to a considerable degree on forced labor, and in the fail of 1950 about 200 women were hired to work in the Dimitrovo mines. Increased production of coal is not itself indicative of preparations for war. In order to meet the rising civilian and industrial requirements implicit in the Five Year Plan, production of coal must be accelerated. a. 40 am SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/2/MIA-RDP79R01012A900900040004-3 I. Production. Bulgaria produced approximately 5,250,000 metric tons of coal in 1950 as compared with a target figure of 5,580,000 tons. The output represents an increase of 9.4 percent over the estimated production of 1949 of 4,800,000tons. In 1948, productionpwas only slightly more than 4 million tons and far short of the goal of 4,920,000 tons. 1/ About 95 percent of the coal produced is lignite, the major source being the 8 to 10 mines operating at Dimitrovo (formerly Pernik), 20 miles south- west of Sofia. This area furnished 3,120,550 metric tons 3/ of coal in 19479 or more than 75 percent of total production. It is probable that the Dimitrovo mines produced close to 4 million tons in 1950, or about 93 prcent of the total output of coal. The balance of the lignite production is scattered throughout at least a dozen areas, none of which accounts for any significant tonnage, It is possible that none of these areas produced more than 350,000 tons in 1950. According to 1947 data, the Bobov Dol and Pirin mines in south- western Bulgaria were producing approximately 100,000 metric tons each, and five principal mines in the Maritsa coal basin in the vicinity of Rakovsky accounted for a total of between 190000 and 240,000 tons. The only other important source of coal was the Cherno More (Black Sea) mine, located about 9 miles northwest of Stalin (Burnes). which produced about 100,000 metric tons. 1/ All of these mining areas have increased their production, in particular the Marital& mine, which is now probably the most highly rechanized in the country. Estimated Coal Production 4/ 1948-50 Thousand Metric Tons 31pe and Aree 1948 2.249, 322 Anthracite Svoge 25 30 Bituminous Balkan Basin 125 155 Lignite Dimitrovo Other Areas Total SEC= 3,050 3,650 815 965 _ L122 .4,015, Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 35 190 4,000 1,025 .11.1_20 w:;CRS.A. Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 2. Estimated Possible Production and Capacity. According to the Five Year Plan, the coal production goal for 1953 was 6,550,000 metric tons but this figure, is now the revised objective. for 1951. Although an increase of 24.8 percent 16,/ over 1950appears to be an ambitious undertaking, it is likely to be accomplished, eince production in the first quarter of 1951 was reported to be 20.1 percent greater than in the same period of 1950. It is doubtful that output will teach the nen target for 1951 unless the peasants, who generally return to their farms in the summer, are compelled to continue working in the mines. Increased opal prodUction depends mainly on better organization, greater labor efficiency, and more manpouer. Output in 1952 is estimated at 6,875,000 metric tone, or an increase of ablaut 6 percent over the revised 1961 pale 3. Domestic Requirements. Coal supplies in 1949 improved considerably in comparison with 1948, when there was an acute shortage of fuel for beating. The situation was some- what better in 1950, and it is probable that in the winter of 1950-51 supplios were more closely in balance with requircuents. However, the quality of all types of coal is generally vary poor because of high rock content and inadequate processing, which reduce fuel efficiency and increase consumption. Although there are little data available ooncerning coal requirements, it is known that railroads are the largest consumers, using an estimated 35 percent of production in 1949. This proportion, however, may decline to 32 percent by 1952 as output increases and quality improves. Allocations to other consumers are estimated as follows: electric power, 15.5 to 17 percent; other industries (including briquetting), 30 to 35 percent; domestic heating, 18 to 20 percent. A more detailed breakdown is given in the table below. Estimated Availability and Requirements of Coal 1949-52 4110110MMOMINIMOOMft Thousand !Istria Tons 2242 1950, 122 Availability Production 4,900 5,250 6,250 6,875 Stocks (As of 1 Jan) 501, 125 250 300 Imports 4a.122 5375 -?AM t.175 Exports . .50 2/ _5O( -.502/ Stocks (As of 31 Dec) -125 -250 -300 -300 Taal Availabilit4 .4A725 5,075 6,150 6,825 Approved For Release 2005/04/27 4ZIA-RDP79R01012A000900040004-3 Amim J Approved For Release 200604/27 : CIA-RDP79R01012A000900040004-3 Requirements 1,650 Railroads Electric Planta 755 Industrial 12/ 1,370 Driquetting 100 Domestic Use C50 Total Requirements h43.1 1,725 2,025 2,200 C85 970 1,065 1,425 1,850 2,250 100 105 110 940 1,200 1,250 5.07 6A122 ALea Re9uirements Percentage Railroads 35.0 34.0 33.0 32.0 Electric Plants 15.9 17.4 15.8 15.5 Industrial 29.0 28.1 30.0 32.7 Briquetting 2.1 2.0 1.7 1.6 Domestic Use 18.0 18.5 19.5 18.2 Total 100.0 100.0 100.0 100.0 4. sto.ltaLe.s. Coal stocks have always been relatively 6=31, although they were larger in 1950 than they had been for many years. No figures areavrrilable but it is doubtful that stocks would meet requirements for more than 15 dalt; during the winter months. Since most of the coal is lignite, it is unsuited to pro- longed storage, Total inventories of coal on hand probably did not exceed 250,000 metric tons at the end of 1950. 5. SurDlus or Deficit. There have been shortages of coal in Bulgaria during and since World War but the hardships caused by these deficiencies have been confined principaAr to private consumers uho use coal for heating. Railroads and industries probably have not been seriously affected. Coal production in 1950 probably balanced essential miuirements and permitted a mo6est increase in stocks, as well as small shipments to Egypt and Austria. Supplies of coal are expected to be adequate for all requirements in 1952, 6. Internal Limitations. a. Labor. Difficult working conditions and poor pay make coal mining unattractive to laborers. Bulgaria therefore relies heavily on forced labor and "Trudovalosn in the mines; in the fall of 1950 200 uomon were hired to work at Dimitrovo, Other handicap!' to the smooth functioning of the industry include chronic .43. SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For I3elease 2005/04/27: CIA-RDP79R01012A000900040004-3 absenteeism, the exodus of peasants to the farm in the summer months, the high proportion of unskilled morkero, and a general lack of initiative. b. Equipment Only a feu mines ;lave modern equipment, uhich consists mostly of conveyors and probably some.rnchinery:for cutting coal. Little if any coal is mechanically loaded. In general, all equipment is in poor condition. Since mo.t of it is old, considerable repair is necessary, and spare parts are difficult to obtain. The small quantities of available soviet machinery are of poor quality. Bulgaria apparently is dependent upon foreign sources for all equipment, including such indispensable items as pipe, pumps, and possibly rails for mine trackage and feeder linos, 7. Trends Including Indications of Lobilization for Coal production increased about 20 percent in 1949 and 9.4 percent in 1950? and a jump of 24.8 percent is planned for 1951, advancing the date for fulfillment of the Five Year Plan goal by 2 years, This accelerated production schedule is considered to reflect the country's industrial grouth rather than to in- dicate mobilization for mar. Some thermal pomer plants and a feu industrial plants, notably the chemical plant at Dimitrovgrad, are under construction, and these mill require more coal. EXpanding output of industrial products is re- sulting in increased freight traffic and fuel requirements of the railroads. Increased production probably mill make more coal available for civilian needs. a' 44 a? SECRET 40004-3 Approved For Re-Feat/0p ?,0491/227 : CIA-RDP79R01012A800900040004-3 Do IldinsUallo Una There is no erode-oil protection in Bulgaria. The only possible domestic *aurae of oil is shale* There are a nuiber of shale deposits, the two largest being near Breanik and Urbino's* Together these have some 150 million metric tons of shalatcontaining from 30 minion to 35 million tons &oil. A plant has reportedly been built for the experimental recovery of oil from shale, but no details are available. Although three small topping plants with an annual capacity of 60,000 tone were in operation before World War II, there is no record of their operation since the end of the var. All of Bulgaria's domestic requirements are met Iv imports from Rumania and the USSR. Of the 200,000 metric tons of petroleum products imported in 1950, an estimated 165,000 tone were consumed* Efforts are being made to build up stocks, but the actual size of stockpiles is not known. Bulgaria is not and will not be an important sontributor to the petroleum economy of the Soviet- Orbit, lack of indigenous petroletu, technical skill, and equipment make the country& drain rather than an asset. 1.? .?1 Although the only indigenous source &petroleum in Bulgaria is oil shale, there are quite large Shale deposits whither* 4*U-suited to development* The shales are high in oil content and would lend themselves readily to open-pit mining. The two most important deposits are located immediately north of Breanik, where an estimated 30 million metric tons of shale have a recoverable crude-oil 'content of about 3.9 million tons, and at Serbinemo, 9 miles south of Gorna-Dzhwaya, where some 120 million tons of dole are estimated to contain neatly 30 million tons of crude oil. Mere are ether deposits near Eyustendil, Poportsi, and Keesbnliti A number of other geological structures are considered promising. Periodically, plans for the development or these sources of oil are reported. Although it is probable that some experimentation is being conducted, there is no information 'on the extent of development or on probabilities for the near future* However, production will probably be inadequate to satisfy domestic requirements. A. plant for the experimental recovery of oil from Shale is in operation in eastern Bulgaria, but its exact location and size are not known. Before World War II there were three wan topping plants' at Ruse an the Danube River, with a combined annual capacity or only 60,000 metric tons* Some 25,000 tons or crude oil were imported annually from Rumania for ? proceosinglit? and the output was approximately 25 peroent gasoline. 12.5 percent kerosene, 12.5 percent gas oil, and 50 percent residue, the last being used atalew-grade fuel 011.3/ These refineries have not operated Blade World War II.3/ oo o- TOP SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 TOP SECBICT 2. 4gailabga4gantio Bulgaria!s domestic requirements are met entirely by Imports from Rumania and the USSR, In 1949 the following petroleum products were imported and consumed: Imports of Petroleua Pr:Kb:eta Gasoline 19,000 Ierosene , 28,000 Diesel 011 35,000 Lubricants Is Creases 12,200 Others ? 1,800 Total 2fiagS2 In addition, about 8,000metrie tons of aviation gasoline were imported, most of which was stockpiled. ki As the result of the build-up of the armed forces in 1950, requirements Increased. Military requirements were mot ki an Increase in imports and by a decrease in allotments to the civilian economy. Si Actual consumption in 1950 was about 165,000 metric tons of the total Imports of 200,000 tans. Civilian consumption was probably no more than 50,000 tons ,- 3, Spic1ce4lev Before the end of World Ver II, permanent storage capacity vas estimated at 125,000 metric tons. ?,/ Since then. a nneter of depots have been expended, and even drums are used for storage. Stockpiles at the end of 1950 amounted to approximately 35,000 tons, plus any stocks carried over from 1949, which may have been considerable. 2licauagrjiltua, BUlgaria has always been entirely dependent on imports to supply domestic requirements for petroleum; and there lam indication that the situation will change in the near future Even If the experimental recovery of shale oil ii successful, it is extremely doubtful that dependence upon imports will be relieved by 1952. 5. Interpaljipitatione. The lack of known erode...oil deposits, plus the inadequate facilities for oil refinement, are basic limitations to Bulgaria's petroleum industry. Dependence on outside sources for technical assistance and equipment is great. eta 46 el* TOP SECRET . Approved For Release 2005/04/27 : CIA-RDP79R01012A000000040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 TOP UMW IssizineumingsdaskiLseasalliatatigamilsto The =Rhea recently extended aid for the development of the petroleum industry. This trend is considered to be Julius with the over-ell plan for greater -Bulgarian industrialisation and (*anomie self-suffieleusy and does not necessarily indicate a step toward mobilisation for war* The efforts directed toward stockpiling of petroleum products, however, may prove the moat significant single indicator that war mobilization plans are being Implemented within the &mem* of the industrialisation program. - 47c Top SWEET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 UMW L 211Plitte Pont. Men Since the esonopy of Bulgaria is prinarily agricultural, elestric pewee- is leen important than in other more developed economies. Failures in electric power would have dislocating effects in local industries and in transportation, tut the effect an the total economic potential of the Soviet Orbit would be elmost unnoticeable. . Fleetric generating capacity at the end of 1950 amounted to 1929000 kilowatts, end the ratio of thermal to hydrodlectrio capacity was About 55 to 45. The greitest concentration of power plants is in the area within a 40-mile radius of Sofia, where about 60 percent of the total installed capacity is situated. By the end 01'1952 the total installed capacity in Bulgaria Is expected to be between 230,000 and 270,000 kilowatts. There is incomplete infornation on the amounts of electric power being used todNy by various classes of consumers, but 56 percent of the power generated in 1947 was consumed by indastry? the balance being accounted for by transportation, street lighting, home uses, and transmission losses.. Bulgaria has sufficient fool and water resources to supply an aspanding power industry Vat Is almost entirely dependent upon imports for increasing production capacity and replacing capital equipment. This handicap also applies to transmisaion and generating equipment, which cones Chiefly from the USSR and Gzecboslovekia. The increases in power production accompliehed since the end of World 9kr II not ally have been insufficient to contribute to the economic strength of the Bloc bet also have made only a email contribution toward the develops. meat of the Bulgarian econogy. alr.111111ftlelenall9011.0. 411111101111?10 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved ForRaease 2005/04/27 : CIA-RDP79R01012A000900040004-3 SD= 10 kesedeageaddawitaajatuar. The electric power industry elan a minor role in the Bulgarian economy and offers no significant contribution to the economic potential of the Soviet Orbit? The agrarian nature of the econmgr and theilack of largeescale industrial users of electricity have been largely responsible for retarding electric power development0 Despite the emphasis given to elestric power development in the 194748 and 1949-53 Plans, production falls far short of requirements, and electricity remains less Important than coal and fuel wood as a source of energy,. 2- &SELOL3M.D373Pate2E2IIkail4adaniilddi* The prevent electricity supply system follows the primer pattern of concentration of the generating capacity around major population centers and fuel deposits 0 The greatest concentration of power plants is in an area within a 40.mile radius of Sofia. Rydro and thermal electric plants in this area constitute about 60 percent of the total installed capacity in the country* The Ploediv-Dimitrovgrad and the Black Sea *oast areas each contain about 15 percent of the total capacity, and there are minor concentrations in the center of the country, in the Area of RUSS on the Rumanian border, and in the extreme northwest0 Power production has been increased since the wer by repairing misting plants, operating plants for longer hours, and installing new capacity at erste of about 10 percent' per year. The development of new capacity, however, tele far short of the goals outlined in the Two Tear Flan (1947648) and the Five Yearn= (1949-53)0 The present trend is to attain wider distribution rather than to increase generating capacity. Greeter sephasis is now being placed on power4rrigation projects through the construction of small and dispersed hydroelectric stations. Since the construction of the large hydro. electric plants envisaged in the Five Utar, Plan appears to have been post- poned, the prier ratio of thermal to hydroelectric generating capacity (55 to 45) remains basically the same. Probable additions of capacity by the end of 1952 will be two 50,000 kilowatt thermal installations, one in the Pernik area near Sofia (for the lignite industry) and the other in the Maritza River basin (as part of the plan to manufacture fertiliser at Dimitrovgrad). Information indicates, however, that not more than 20,000 kilowatts of the 100,000 kilowatt capacity planned for these areas will to installed by the end of 195201/ 30 eietkaallagiagalSOL. a0 XISEMASIEUSISW Bulgaria has sufficient lignite fuel and water power resources to permit further increases in the production of electricity0 4,9 SEL'RPX Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A1700900040004-3 b. ..141eIdaitr_AL.10ra,Alag,, SECREr There are no large electric power plants in Bulgaria. About 75 percent of the capacity, estimated at 192,000 kilowatts in 1950, IA installed in planta of the 5,000 to 15,000 kilowatt size. The equipment presently installed, ehich is 15 to 20 years old, needs extensive repair or replacement, because it was abused by untrained personnel and operated excessively during the war period. o. Tranamiasio Svatemg. The construction of a 110.4ilovolt network running from Sofia northeast tonmera and Pleven, thence to the centraleeastern section at Goma Orehmitsal and back to Sofia through Dimitrovgrad and Plovdiv was begun after the war. The Sofia4lovdtr link of this network was completed in June 19490 but it is unlikely that this link will be of value unless capacity is increased in the areas of Pernik and Dimitrovgrad. Because the rest of this network extends through areas where fuel for thermal installs" tions is lacking, the hydroelectric plants proposed for the power irrigation projects must be built in order to make an extensive 110411avolt network feasible, The other transmission project of importance inlet:Ayes an agreement, signed on 16 July 1947, by which Bulgaria and Rumania undertook to create eammon power supply area for southern Rumania and northern Bulgaria. Rumania was to provide power in increasing amounts up to 1956, at which time 10,000 kilowatts were to be annually available to Bulgaria. The latter country, in tarn, was to instal in 1951 sufficient generating capacity an its side of the border to allow for some surplus, which would be available to Rumania. Zwf A tranaDanuho odbleof 604i1ov1t apacity.was completed and put into operation in Ally 194901 Intensive effort presently is being exerted toward the construction the Roeitsa dam and hydroelectric project in the north-oentral part or Bulgaria!, and attempts have been made no rob ace a large-capacity transformer for Goma Orekbovitsa in the same region. The trans-Danube cable has been completed, but it is not known hoar much power is now beiar transmitted to Bulgaria from Rumania? nor hoe great an area is being supplied* The building of rural supply cysts= and additional transmission facilities in population centers is another part of the proposed trans- mission network, and large amounts of foreign currency have been allocated for the purchase of necessary equipment. Failure to expand the transmission network will mean that other parts of the Five Year Plan will be delayed and will continue to retard the Bulgarian econoey. 50 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 he lX0M2112B* Increases in electric power production in Bulgaria compare favorably ulth percentage insreases reported in other Satellites. The per capita availability, howver, is leas than that of any other European country accept Albania, Production rose from 266 million kilowatt...hours in 1949 4/ to 548 million kilewatUhours in 1948, 5/ primarily through more intensive use of existing capacity, end secondarily through new installations* Production estimates of 730 million kilowatt-hours for 1950 and 890 million kilowatt-hours for 1952 are based on an estimated average increase in capacity of 20,000 kilowatts per year and an output of 4,000 kilowatt. hours by every newly installed kilowatt of capacity* Dependence on foreign sources for design of installations, trained personnel, equipment, and spare parts mill continue to hamper production thraugh 1952, since assistance fraa Soviet Bloc countries will be limited* 5* gengessalsea. The Sofia area ranks far ahead of other ?enters in the consumption of electric pewer* The Plovdiv-Maritsa area the cities owthe Bleak Sea, and the Dandbe port of Ruse consume most of Zs remainder* There is insufficient information on the amounts of power being used by various classes of consumers? Industry consumed 56 percent. of the power generated in 1947; commeroial and home use, power plants, transmission losses and slaese;lighting aecounted for the rest* ft/ The building of mall hydroel:etric plants in remote regions and the construction of the Dimitrovgrad fertiliser plant indicate that the agricultural sector of the eeonomy will benefit most from the expansion of the eieetticity supply. Since World uar /I, electricity requirements have increased, and produc.. tion is not equal to demand. Civilian consumption is rationed, and industrial shortages have been reported* The Sofia area appears: to have the strictest regulations; therefore it is possible that the requirements of certain industries in this region have increased, A decree of October 1950 which placed heavy restrictions on all but the most essential consumers and permitted most industries to operate only 4 days a week exempted the following industries: canning, textiles, chemicals, locomotive week, misdng, water pumping stations, refrigerating, milk processing, baking, and the tobacco monopoly* It can be assumed that priority is given to those installa- tions producing military goods* 64, out BecuIremenle* Input requirements for the electric power industry fail into tee categories. The first includes requirements for the daily operation of the plants, such as fuel, lubricants, expendable operating supplies, and manpower; the second, those things rewired for the replacement of capital items and the expansion of transmission and generating facilities. Belgaria is in a much more favorable st, SEC= Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release2005/04/27 : CIA-RDP79R010124000900040004-3 MSC pesitian in the first category than in the second, since it has adequate supplies of feel and sufficient manpower to handle daily operations ef the industry. However, it mast Import almost all items included in the second category, as is shown in the following quotation from a broadcast of the BulgarianDadies sm. capital investment far the entire tre tor Plan is 126,4 =Sae lavas of which 19.4 =lea lava er 1504 patelat? em allocated for the electrification of the count:ye As to the cost of the equipment to be imported, from the total a= of 43.7 billion lea for imports, 13.3 billion are allocated for electrical equipmeet.a Althouda it is impossible to make exact estimates of the investments actually made, it is likely that the actual pattern is similar to that of the Plan, The capital equipment lofted:led einem the .war was acquired *elit foreign firms, both Orbit and noo-Orbit. Austria, Czechoslovakia, Italy, Itagarn and the USSR have been the principal sources for new generating capacity, . transmission -equipment, and the Allied manpower which is nacessagy for installing this equipment. The purchase of spare parts, the need for Which has been great because at the varied origin and antiquated nature of the installed eleetrieal equipment, has ale* cionammed large amounts of foreign exchange. Tulnerfhdlity. The vulnerability of the electric politer industry is very high, Cutting off all imports of equipment and technical skills would have the following effects: (a) a, deterioration of equipment at an increasing rate as &result or lack of spare parts and (b) inabilthy to 'metal additional eapacity. Xlimination of imports from non-Orbit ccontries would farce some diversion of the manufacturing facilities of Saviet Bloc countries to supply Balgarien needs for eleetrieal equipment, at least In quantities sufficient to prevent deterioration of the Bulgarian electric power industry. The actual =mint diverted would depend on a decision as to the importance of the electric supply In Bulgaria in relation to other areas within the Bloc. It is prebable that an effort would be made only to :maintain the present status of the industry, and then only if it could be done without severe strain an the resources at the Blocs, SEQUer Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R010124Q00900040004-3 V itgaugt Esg;RTV 4w= The ehsmical indos-twy of Bolgaria is un?npootant srod endow:a/ape, Undor the Five !tar Plan the indualeor is to be expanded to produce most of the basic chemicals needed in the oconoNy ana in gnfficient quentitios to covor increasing retlaimosnts. Bulger/ethos a mr_all tevor,able =plus of onod Chemicale (methene4 aeotic acidv aeetonep ete) Glycerine production '.1a greater than =owl deatad And Is emported to Gsochogavvakla and Eurganyc Of tho lognie ha' choice:Lep only *slam earbids is produoed in tooMationt amount to met reqoirements. Xlenents1 sulphur if Mt prOftillIep god tho only irdieatioo. or pyrites production is the boom amport of 10,010 metric tons in 1949 one the plargei empart of ovono tore 5n-1951a all to Oseehoolovals. litric uzid is produced only fnr the moll eipcsiveo 14.06UrItiou of osmotic gods and suLfurio aold io inamfrioient to most eonnsdee and oaustio geglat, mostly for leap nanufectorees, in inverted from 3rifedfartio Rrmelnlap last Goatomo the USSR? e3d Poland. Some sulfuric acid vas tormatly supplied by Tugoolatria0 but ourrent sourceg are ItalT0 Bast Germary and the USSR. The le no known prodaction of other baeie heavy ohomioals. Soda a ?vapplied by East Gerriny anI coke ;Tlemicole are importediuLtnly frnm Czechoslovakia. Dyes are Peoeivel from Ozeohoolovalla aud Bungarf. Bulgarian agrimittmie requires soma nitrogeoeus Naldlioersp Vac* ars 'uroiahod by 36ot Garamy and tho USSR, Ori a totnage bacis Bulgaria oonsAmeg more cc9par ouL'ato than any other ebtelealp moat of whieh iv uved as a fueigLaae in the grape vineyards.. East Geromp. and protoaiy the BSSR are Tlet ehlof suppliers. B13opm1a has a of notural oubbee, tut Although prvluction of insitTleion to 1:12-3o9 balk of Bolt:arian tire smell =labor Itbrioative, 1n6o3try atoppliod by importo. tqolabed rater prollets aloe mrat beimoartodc arterobile 14708 has Increased ainceirlorld War IX it iv olulrementsp despite aomv Imports of tiresp bemuse tho production ig emported to tho USSR. Belaria cannot forniall arT Chomionla in sigeaficant quantitievo to ti a obit, erd Ito Import requirements rram the Soviet Bloo ere small. Bulgorio nla7 teeomo uolf-eufficient in baa lo hay chemicals if planned Inetollations like the Stalin fertiliser plant Dimitrovgrad and othoro are ,:lompi.otod ale :In operation by 1952. 1.44...iskeeemsarkawieumarw,a-,....caerabawasar-aftersaiSiarpearagt,urvalagasearritert?adeato ,3130EIS Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 =RIZ 10 gagiaLged142. au lbamallgo. The production of calcium carbide in Bulgaria is insignificant. Only one plant, the State Carbide Factory (formerly NolarovWorts) locateC at Ilienci near Sofia, is known to be in production. Production was 1,500 metric tons in 1948, and estimated. output was 2,000 metric tons in 3.949 and 2,500 metric tons in 1950. baliNitid2SUILMILLIZZOSEUMMILSAMM0 Production is unlikely to increase much over the 1950 level. .No expansion is known to be planned, for the Menai plant, the capacity of 'which is about 30000 metric tons per year.,/ It is therefore estimated that produss. tion will be 2,600 metric tons in 3.951 and. 2,700 tans in 1952. Calcium carbide will be made at the new Stalin State Factory of Nitrogen Fertilizers at Dimitrovgrad. 2/ This plant has been Underconstruc- tion since early 1948' and is not scheduled for completion until November 1952. If No calcium =tido capacity is reported for the plant, but it may produce about 27,000 metric tons annually, Cc Domestic Rtoutirqaants. Bulgaries calcium carbide demands are slightly less than annual production. There have been no imports since World War II, but small amounts have been . exported to Albania. One plant (the Stefain Zaneff) at Ibrilowo vas producing calcium ayanamide fertilizer on an experimental basis at a rate of about 60 metria tons annually, which would require less than 50 metric tons of carbide. 4/ Other chemicals derived from carbide and acetylene are not in production. All of the carbide production is consumed primarily by industry and mining. A stockpile of calcium carbide has not been established, although Bulgaria had a slight surplus in 1950. The surplus in 1952 may be less than tnat of 1950 becauseof rising domestic requirements. d. latermaigstatassa, Sufficient coke or charcoal and lime are available for the small annual production. Sc The Plan goal in 1953 is 8)000 metric tons of calcium carbide. It is not known whether the increase in production is to woe from the new plant at Dimitrovgrad or same other new plant or from expansion at thp Menai plant. ? SR Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012Pre00900040004-3 SECRET 2- cnala2d6- a. Prcductio4. There is no conclusive information that caustic soda is produced in Bulgaria0 b. balatiratmassap.U. Caustic soda is required tor Bawl& principally for the production of soap, the most important single chemical plant in the country being the Nikola Chilov soap factory at Instinbrod near Sofia. Although this plant employs about 900 workers a large proportion of the total number of workers avenged in the chemical industry, production in 1949 was only. 4,000 metric tone, about half of the prewar output. 1/ Bulgaria processes very little pulp and paper products, and its email textile production demands little caustic eoda. Before the mar, requirements averaged nearly 2,500 metric tons a year and in 1946 reached 3,600,23/ Estimated demands for 1952 are WOO metric tone. It is not likely that a stockpile has been established, and Bulgaria will continue to be deficient in caustic soda until the completion of Plan installations. e. 1anIerka,1 Ldmitations. Salt, the essential raw material for the production of caustic soda, is produced at the Solopoden Salt Works near Provadia. Even if construction of those chemical plants projected ender the Five Year Plan is actually completed, production will be hampered by a shortare of skilled labor and technicians. Equipment for this new industrial capacity must be supplied froa the Soviet Bloc. d.ZustiL=InsigalaiLatillmittgaltamoktillatitaam_ailW. A caustic soda factory is scheduled for completion in 1953, with production estimated at 3,700 metric tons a year. In succeeding years the output is to be increased sufficiently to meet domestic needs. This plant also is to produce 8,500 metric tons of soda ash in 1953. 3/ The conetruction of this plant is no indication of mobilisation for were an the establishment of facilities to produce caustic soda is a step toward self-sufficiency. 30 AndliEttranitagE0 Synthetic ammonia is not now in production, and it is doubtful that it will be by 1952. Requirements for this product are negligible. A smell amount of liquid anmonia (possibly anhydrous) is imported from tbe USSR. There is a alight demand for fixed nitrogen in the form of nitrogenous 55 SMUT Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A4100900040004-3 SECRET fertilisers. However, no nitrogenous fertilisers, except a small.emount of calcium cyanamide are produced. The USSR. supplied siMMUDiUM nitrate in 1950, but it is doubtful. that the total equaled 10,000 metric tons. The Five Year Plan calls for the production of the follotrilmicrmeducts? vith annual output as noted: .4NEMM4smowwwww?ammeosmorars.4....noM44?44rMillaglig Ammonia, Synthetic 40,000 (33,000 T-N) Ammonium Nitrate 30,000 ji (110500 T.N) Calcium Nitrate 35,000 ati (5,400T...10 Calcium Cyanamide 35,000 gt (7,350 T-N) Nitric Acids/ 60,000 v st Acid concentration not reported. If the concentration is 100% acid, the nitrogen equivalent required is 14,800 T-N, but if 40% (the usual concentration to produce mamonium nitrate), then the acid is 24,000 T (100% basis) and requires 5,900 T-5 to be made. Since ammonium nitrate is a constituent of Amato' (an explosive), as well a3 of TNT, Some or all of the production coed be diverted in event of war to he manufacture of explosives. 4. atalsAsia. The small domestic production of nitric acid is confined to plants making explosives. Total nitric production at present probably does not exceed. 00 metric tone (100 percent acid basis) a year. The canpletion of the Stalin fertiliser plant in Dimitrovgrad will provide Bulgaria with nitric acid for the production of nitrate fertilizers (ammonium and calcium nitrates). ,Annual capacity of the plant is to be 60,000 metric tons, 1,/ but there will be no facilities for concentrating the acid to high strength. If the output of 60,000 metric tons is 40 percent acid, then the capacity represents only about 24,000 metric tons on a 100.aercent acid basis. In time of war the nitric acid and ammonium nitrate will unquestionably be used 111 the production of explosives rather than fertilizer, 5. Csakitaustisk. Bulgaria does not produce coke Chemicals, nor is it likely to by the end of 1952. All of the metallurgical coke used by the iron and steel industry must be imported, because Bagarials coal is of inferior quality. The demand for cdke chemicals is negligible. M 56 44 SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04NAEIA-RDP79R01012A000900040004-3 ItLtdciRd- NO elemental sulphur is produced in Bulgaria, 1,/ and data on the production of pyrites are not available. In the absence of any substantial domestic eonsumption of pyrites the known exports are indicators of tits minimum production because the bulk of production is exported. These exports amounted to 10,000 metric tons in the last 9 months of 1949 a/ and 40,000 tons planned in 19510 all under trade agreements with Czechoslovakia. It is possible that additional exports vent to the USSR via the Black Sea. b. Issiallizatranut& Io sulfuric acid is now produced in Bulgaria, and ardent provided for in the Five Tear Plan will probably not be completed WI the end of 1952. Thus there are no requirements for this industry. Consumption of pyrites tor eller industries is small. Insignificant quantitie? of elementel sulphur are required by agriculture. Bulgaria has no stockpiles of pyrites. c. .W.pzug jeliatatitagt. The lunation and extent of the depoeits of pyrites in Bulgaria are not well known. Further development of, pyrites resources depends on the amount of Soviet assistance given. do Tronda?-analudinkIndicationa of liabilisation for Ware Production of pyrites will be accelerated to meet rising requinenente in the Soviet Blom) 70 Rubber. a. Pradua41or. There is no production of synthetic rubber in Bulgaria, and the amount of natural rubber obtained from latex-bearing plants is Inaignifloant. Produc- tion of automobile tires ,1/ has increased, since World War II, as follow ats 19399 4,000 tires; 1948, 12,500; 1949, 2618753h and 1950, 42,731. b. liejaegslandat.ergastilaufasLawirja. Postwar plans provided for the construction of a synthetic rubber plant, which may be the one located in Sofia that was to start operation in 1949. 3/ However, it appears doubtful that any commercial installation for synthetic rubber production is yet in operation. The Five Tear Plan calls for the construction of a nem tire plant and expansion of existing facilities and production of 100,000 automobile tires by 1953. Equipment for one tire plant was to come from the USSR and Czechoslovakia in 1950. .6,/ Expansion of tire production will depend on procurement of such equipment and upon the availability of :libber, carbon SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A900900040004-3 SMUT black, and robber dhemicals. Carbon bladk and rubber chemicals have been ID &Abort supply in the Soviet Bloc in postwar years. e baigithilLaggjagemSeto Natural rubber trust be imported to =PAY requirements of the rubber indnstry. Postwar imports are as follows lis 190, 650 metric tons; 1949, 929 tons; and 19509 775 tons. Additional quantities ma y have been supplied in 1949 and 1950 by the Soviet Bloc. Requirements for rubber will probably increase in 1951 and 1952, possibly to a total of 2,000 metric tons. With an estimated motor park of approximately 12,000 vehicles in 1950, tire rce quirements would probably be about 50,000 units per year. de tumlaturjaisiao Both raw materials and finished rubber products mast be imported and stockpllleg of either rubber or rubber goods does not exist. Despite some Imports of tires from the Bloc and the West and the expansion of the Bavarian tire industry, domestic requirements remain unfulfilled because the USSR takes the bulk of the Bulgarian outputs e. jatereilemblatettlegge Bulgaria is completely dependent upon imports for rev rubber. Natural rubber is procured mainly by reexports fees the ME and the Netherlands, and the USSR bee provided AOMO rubber (Whether natural or synthetic is not known). Another ma4or factor limiting production is the inadequate supply of carbon black, tire cord, and rubber chemicals reeesaary for the manufacture of rubber goods. Some carbon black and rubber chemicals are obtained from Western European counteles, and the Satellite countries also may furnish ams)1 quantities of these products. Tire cord is supplied by Cseehoelovakias some imports also being obtained from Italy and the Netherlands. Lack of nanufacturing equipment, especially for tires, likewise is a limiting factor in the expaasion of prodection. The USSR and Czeohosiovakia were to supply sOMO of this equipment in 1950, f. Les Expended and newly constructed plants for the manufacture of tires will increase production of a potentially military item. If the tJ1 and the Netherlands ceased to reexport natural rubber Xran Southeastern Anie,6. Bag/trial's ?libber fabricating industry would be entirely dependent upon the USSR and East Germany for synthetic rubber. Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 0, Agineerine InfItuasze NC= Um= BuIgarials engineering Industry is mall, and almost allmachinery and vehicles must be imported. The country therefore represents a drain on the engineering resources of the Setiet Bloo. Bulgaria does, however, have ambitious plans for development of its engineering industry. The Five Tear Plan (19494.53) placed heavy emphasis on the development of machine manufacture, which br 1953 was to be 65 times greats: than in 1939. Production goals established for 1953 include 6,250 metalaworking machines 21,200 electric motors, 4,600 units of construction eqUipment? and 90,000 units of agricultural mar..hinery. In order to implement these goals, the Plan called for the construction of two machine tool plants, a plant for automobile and tractor parts, two automotive repair plants, and three agricultural machinery plants. This program, representing only the beginnings of imiustrialisation - is nevertheless an ambitious one thieh will probably be difficult to fulfill, for Bulgaria lacks the raw materials, electric power, trained minpower, technelogical Skill, and industrial facilities neeeseary for a viable engineering industry. Despite these limiting factors, the Bulgarian (government, during the 2 yearn that *Islam has been In operation, has.contbmemay *3-a4med great production sueoesses. Machinery production in 1949 increaeed 340. percent. over the 1947 total. The production plan for the first quarter of 1950 was fulfilled 100 percent; for the second quarterp101 percent* On the other hand, the government has admitted certain deficiencies indicated in the statement of the Chairman of the Council of Ministers, Cheiivenkav that 'defective ? production is still tolerated; waste and woes, cantina: to hamper and 'reduce the output of production tools and cow:moral goods." The USSR is the principal supplier, of industrial equipMeat, followed by Cseehoslevakia and East Germany. .Western European countries also are making a substantial contribution, with Austria in the lead, followed by Italy, andsto a mudh lesser extent,Beeden, Finland, and Belgium. CO 59 SEMIlf Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A17/00900040004-3 SECRBf 1, neggalleas. Until /9490 Bulgaria produced no machine tools or other metalworking machinery. The Five Year Plan, however, scheduled an output of 6,250 metal-eanidmgmachines for 1953, In order to implement this Plan* two machine tool plants were to be constructed and In operation by 1953. There is no evidence that either of these plants has been ecapleted, although fulfillment of Plan goals for machine tool production is claimed with monotonous consistency by the State Planning Commission, Compared with 19470 machine tool production increased 304 percent in 1948 and 340 percent in 1949, With little previous production experience, technieal equipment, and few ectsponent-parts plants, it is Likely that the 1953 production target will only be apinimimated. Sven the optimum goal of fulfillment would result in no significant contribution to the economy of the Soviet Bloc, inasmuch as the machine tools produced would be of the simplest types. Bulgaries limited requirements for machine teas will continue to be for generalrpose types such as drill presses, lathes, milling machines, and planers. These are presently obtained from Cseohoelovaklavthe USSR, and Austria. The =Tent trade agreement with the latter provides for tho annual export to Bulgaria or$250,000 north of metalworking maenlizem 2, Alectricalleuinment, The Five Tear Plan calls for the production of electric motors, generators, transformers, and other electrical equipment required in connection 'with the industrialization of the country. The Bulgarian electrical industry before World War II consisted of a few smell breath plants of Atfreign firms, ehleh mannfaotured light bulbs, batteries, and other small electrical items. These plants have new been merged into one enterprise, the "apron? plant in Sofia, which concentrates on electric motor manufacture, In 1947, before consolidsr. tient electrical enterprises produced onl:Y107.motors. In 1948, after , nationalisation and consolidation, the Bulgarian press claimed a production of 950 motors. The production goal for 1953 is.21,200 motors, whiekwhile email when compared. with Czechoslovakia's output of 290,000 motors in 19490 is an ambitious goal for Bulgaria. There is no evidence that Bulgaria baa produced any quantity of heavier electrical equipment, and the country continue to be dependent upon outside sources for its a. Trade agreements in effect in 1949 provided for the import of 3,400,000 of electrical equipment annually from Czechoslovakia, Hungary, Best Germany, Austria, and the Netherlands. 30 AggsatusiXecklasz, Production of agricultural machinery in Bulgaria was negligible before World War II, The Five Tear Plan, however, has scheduled a 1953 output of 90,000 units of agricultural machinery, including cultivators, plows, seeders, Val 60 sla SECRIgr Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A0.00900040004-3 UMW binders and harvesters. In order to implement this program, three new agricultural.machieery plants are to be nompleted by 19539 At present -there are two plants in Bulgaria engaged primarily in production of agricultural machinery the GeorgLIdadtrov Agricultural Mealneig Melts at Poe, which manufactured the first Bulgarian fertilizer spreader in 2949, and the former aircraft assembly plant at Levee+. An iiterpolation of official Bulgarian statistics indicates that approximatAtly 44,000 unite or agricultipmamadhimrymere produced in 29499 (Poland during that year was producing about 30,000 units a month) Production will thus have babe doubled during the 5..year period in order to achieve the 1953 goal of 90,000 =its, Since the bulk of Bulgarian production consists of simple plows and cultivatore, it is possible that the planned figure will be reaphed, Bulgarian production of agricultural machinery will Swore domestic self-sufficiency for only a few items of equiPment, probably horse-drawn types, and the country will continue to depend upon outside sources for most of its requirements, Between September 1944 and December 1949, according to the Bulgarian press, the USSR shipped 1,200 tractors, 1,087 tractor plows, and "hundreds* of seeders cultivators and harrow to Bulgaria. Although the USSR has been the most important supplier Czechoslovakia, Hungary, and Austria also have trade agreements which provide for the export of agricultural machinery to Bulgaria. 4. Construction Bhuinment. The rive Year Plan has scheduled the establishment of a construction equipment industrY. An annual production of 4,600 units is to be attained by 1953, including such items as concrete mixers, graveling machines, compressors, and pneumatic hammers, Three plants for the manufacture of conetruetion equipment are to be built and in production by 1953, bat there is little evidence of any production as yet. The Gant Dimitrov Lodomotive and Car T4orks in, Sofia is reported to have produced three 14-ton steam rollers in the spring of 1949, the first units of such equipment ever manufactured in Bulgaria. Even with a production of 41,600 unite in 1953? Bulgaria will continue to import most of its requirements for construction equipment. Present sources of supply are the USSR, Czechoslovakia, Austria, Belgium, ind Italy, 5. Panspertation lopincept. Production of transportation equipment is negligible. The Five Year Plan calls for the construction of a plant for the nalufacture of automobile and tractor parts, as well as two automotiverepair plants. There is one railroad equipment repair plant, the Georgi Dimitrov Locomotive and Corr 62. 00. SISREIr Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved Foil-Release 2005/04/27 : CIA-RDP79R010121000900040004-3 SECRET Works in Sofia. This pleat Claims to have built two lonnotivesturkfi, but there is no evidence ofauy new produation since that date, are currently being imported from the USSR, Conchae:lova:kis, Austria, and /tan and leassotives from Cseahoalerakia and Italy. eq. MAIM& There are two falr.sised munitions plants in Bulgaria. At Sofia the State Arsenal (Zavod 12) has 2,000 markers engaged in the production of artillery shells, smalI.arms ammunition, and ground mines. AtEasenduk the Rdlitary Factory employe 2,700 workers in the production ?ranching gene, mines, grenades, ammunition, explosives optical devices, and anti. gam equipment. The production of these two pleats filis only a. portion of Bulgarian militaryrequirements, The USSR is the principal supplier of equipment for the Bulgarian Army, 7. ME6Eatt.- Buigaria does not manufacture aircraft or engines for the Air Forgo or the civil airline but depends upon imports fres the USSR. A, smal domestic industry, chiefly for overhaul and maint?enance, exists within some novae factories which manufacture or assemble other age:1point. Same Czechoslovakian parts have been assembled Into sport or training types, but the rate was only 4 or 5 per year in 1946 and probably does not now mooed 150 per year, ineloding Some gliders. It is unlikely that the USSR will help Bulgaria develop an aircraft production or final asesWely industry, because of the basis lack of aluminum and steel capacity., teohnical eampetenee, and aviation gas supplies. Bulgaria's aircraft Shop facilities however, are important to the USSR for the repair and maintenances a 4viettectical and transport aircraft stationed in, or Operating in and (Put of, the country in rapport of BUlgarian Army or Soviet Air Force operations in time of war, 8. 21011,1410g. Th? Bulgarian thipbuiIding industry is a stato.owned organisation eperatiag under Soviet contra and supervision. Before and during World War II the dammed on shipyards was'primarilyTor small modes sailing craft. After the- war thereinto greater prodtiati.on of diversified typea and tonnage. The sconio potential of the industry, however, is still negligible. There are three shipbuilding centers: Stalin (Varna) and Burgas on the Plea Sea and Ruse on the Danube, with an estimated coehined total of 64500 workers. The espaolty of these yards is limited to the building of ships up to 1,000 tons, although one drydock in Stalin may haveaoapaeity of 3,000 tons. Flahing schooners 8DU vooden.helled tugs and bargee were the ? 62 SEC= Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-,3 Approved ForRelease 2005/04/27 : CIA-RDP79R0101274000900040004-3 Tajor output until 1950t In 1950, &Never, two steel hulls were Launched in the Stalin yard at Varna and in the aoIovak yard five small biro. end one cargo vessel of reinforced concrete were laid down. The Varna yards are potentially able to build sUbmarines and small destroyers. In the period 194649 the average annual production ease shipping use 4,700 tons. Complete data for 1950 are unavailable, but production will probably be about 4,700 tans. Jour launchings and five deliveries were reported. A new yard for building fishing boats is believed to have been completed in the latter part of 1950. In view of this additional yard and the present practice of training *hip- building apprentices, a ',stem instituted by the Soviets, the annual output for 1951.52 can be expected to rise. Since existing capacity has never. been fully utilised, any expansion will be in response to Soviet requirements. These would probably be for small cargo vessels or motor torpedo boats, as the building of larger ships would necessitate the impart of mashinery and installations that Bulgaria cannot manufacture. The. country's rich forest reserves, whits!' coed provide an extensive source of rev material for vooden.hulled ship.,remain undeveloped. The lack of iron, steel, and most raw materials neded to produce steel Ships limits Bulgariats capacity in this regard. All propulsion units for ships most be imported. These were previously obtained that:many, Cseehoslovakia, and Hungary, but present reporting indicates that the DSSR is now the major source of supply for engines. ? There is no sign of the conversion of other industry to shipbuilding. The construction of steel hulls and Soviet-designed MTBIs began in 19500. It can be assumed that steel plating and engines will be provided by the USSR to maintain production for the Soviet account. SEORBT Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For-Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 SECRET Mum Prodnotion ofuranium in Bulgaria began in 1946 under Soviet control. By the end of 19500 Bulgarian output of uranium ore and concentrates accounted for 4.percent of the total uranium available to the USSR. All production is shipped o the USSR. 1. baSVatala.. Production of uranium in Bulgaria began in 1946 under Soviet controls, and output increased steadily in the 1946..50 period. By the and of 19500 Bulgarian production of uranium ore and concentrates acconnted for .4. percent of the total uranium available to the USSR. The 1946.40 rate of output is expected to continue through 192. There are no atomic energy plants in Bulgaria and, therefore, no domestin requirements for fiesionable materials all ;rogation being shipped to the USSR. No stockpiles are maintained within the country. 2. Although the deposits of uranium in Bulgaria are not large, Soviet requirements for this material are such thst all available sources are being .exploitoi. Sufficient manpower is available, but mechanical equipment, safety precautions, and replacement parts for mechanical equipment are in short supply. The ever-increasing domande for expanded output by the Soviet directors of the Bulgarian uranium mines are evidence of the continued trend toward a program geared to a war economy. 64 SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 rat, Approved ForRelease 2005/04MIA-RDP79R01012A000900040004-3 Summary Because of the undeveloped state of the Bulgarian economy, requirements for transportation are sharply limited. Consequently, Bulgaria does not have extensive transport facilities, nor does it possess large inventories of transport equipment. The contribution to the Soviet economic potential for war uhich can be made by the Bulgarian transport system is, therefore, of minor importance. sub- stantial improvement can be accomplished only by extensive assistance from the USSR and elsewhere uithin the Bloc, as in the case of the current airfield improvement program. t-=L-- ot. SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For.Zelease 2005/04/27410DP79R0101.24000900040004-3 ...kku.:tro guba 1!, a, 1ecrjntion The 4?050.kilometer Bulgarian railroad network is a grid of three east-west lines and three north-south lines which connect the portent Stalin (Varna), Burgas, ard Buschuk with the agricultural hinterland and the chief population centers. These lines also provide the Soviet Union with direct connections to the frontiers of Tarkwy, Greece, and Yugoslavia. The &Mau mountains, which separate the Danube and Earitsa, valleys, are a barrier penetrated only by the Sofia.Mesdra line and the Stara Zegara- Trnovo line, A third line, to run through the Balkan chain from Wretch to Karlovo, has been completed as far as Troyan. The density of the network is among thelowestin Europe, 5.7 miles per 100 square miles, but the die- tribution is quite even throaucut the country. About 90 percent of the network, or 3,600 kilometers, is standard-gauge, and all but 10 kilometers are single.tracki, y 1:10 IkattLgA Bail traffic is not heavy in Dalgaria, 1950 traffic being estimated at 210700 million tom-kilometers, some 32 perzentslove 190 lavas. V Coal is the largest single item transported, amounting to 17,6 percent of all freight traffic; grain is 11.1 percent; lumber, 6.5 percent; and flour, 5 per- cent. This traffic supporta the rekthezlyundevelowl economy of Balgeria and, except for some possible shipments of chrome aid uranium ore, makes only a smell contribution to the ecommic potential fbr war of the DSSEL et. ataintia? The fixed equipment used in the Begarian rail network is old, worn, and of light design. Bails are long overdue for replacement and can support axle loadings of only 14 tone, veil below the Beropean standard. Bails and ballast are of insufficient veight..less than 20 percent of the net- work in 1945 had 82-pound rails. A program of rail replacement was begun in 1949-50 on some sections of the Sofia.Plovdiv line. There are =modems classification yards in aggaria. /act of adequate switching facilities presents difficulties forlargmo.scal4_Jecomomic and military movements. A program of in. stalling modern safety and signal equipment has been started but remains a long wer from completion. de The capacity of the rail system is 1 Jut-6410r the obsolescent condition of fixed facilities aid rolling stock. Only ism lines, the Caribrod. ?66? SWUM Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved Foc-Release 2005/04727RWIA-RDP79R01012A000900040004-3 Flovdi and the Pernik-Zona-Goma Orekhovitsa, have a olimurity of 16 trains a day in each direction at 420 tons each, Most of the lines will support only 32 trains a day at from 250 to 300 tons a train. Furthermore, if all lines are to be operated at capacity, locomotive inventories must be doubled and freight car inventories tripled. 50 Vulnerability. . The =Jetsam of numerous bridges and tunnels and the absence of excess workshop mpmAtyneke the railroads highly vulnerable to both sabotage and air attack, f, Conclusions. The facilities of the Bulgarian railroads will contribute only slightly to the economic potential for war of the USSR. 2, Direct Contributions of Railroad Equipmnat to the Economic mosrran. War or a. Inventories. Equipment inventories are apparently adequate for traffic requirements, but equipment inmost categories is Obsolescent, Rolling stock is estimated to include 612 locomotives and 119790 freight cars. Equipment is relatively lijA by Eastern European standards, and doable-heading of locomotives is frequently necessary.- Most of the freight cars have only two axles, and only a very small percentage baa air brakes. b. Production Capabilities. Although the Oeorgi Dimitrov plant in Sofia claims to have built two locomotives in 1949, the railroad equipment industry nevertheless continues to be United to the four chief repair shops of the State Railroads, a plant at Drenovo, and one at Stalin (Varna) which produce some rolling stock, Pro- duction at these plants consists largely of assembling components, many of which are imported. Bulgaria cannot yet produce necessary replacement equipment, c, Transfers to Uost railway equipment is of standard European guage and is not suitable, without extensive modification, for service lathe USSR. Bulgarian equipmgab is in poorer condition than are the rolling stock and locomotives of any other Satellite and therefore will be the last to be confiscated for service in central Europe. Should it be removed, the effects would not be severe because Bulgaria's economy is not heavily dependent upon transportation. For example, the largest single item transported by rail is coal, 90 percent of which is consumed by the railroads themselves. The loss of railroad service, therefore, wou.ln not be a great blow to the internal economy or to the war potential of the USSR. a' 67 do SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For-Release 200544kIA-RDP79R0101-21000900040004-3 d. Conclusions. Direct contributions of Bulgarian railroad equipment to the economic potontial for war of the USSR will be negligible. 3. Indirect Contributions. a. Role of Roilroads in Soviet Trade. The role of Bulgarian railroads in Soviet trade is of small importance. Little direct railwey traffic exists between Bulgaria and the USSR, although there is considerable movement between the Bulgarian Interior and the ports of Burgas, Stalin (Varna), and Ruse. This traffic is largely military, but there is same traffic in lead and sine concentrates, tobacco, wheat, and unaniwa ore. Such traffic, however, is inconsequential to the Soviet economy. Even the shipments of uranium ore are only avian part of total Soviet procurements of this commodity. b, Role of Railroads in Trade with the West. The role of Bulgarian transport commerce with the West also is minor. Trade with the West is only about 15 percent of total Bulgarian foreign trade, and little more than half of this moves by rail. h. Inverse Contributions. Bulgarian railroad requirements fram the USSR are not great. The volume of railroad components and materials imported into Bulgaria from the Soviet Union in any given year is an insignificant fraction of total Soviet production, although it is vital to the Bulgarian transport system. Locomotives and freight cars are procured largely from the Satellites. Bulgaria depends upon the USSR for skilled manpower at several levels in railroad operations, but the mothers are few, and the term of service is short, Soviet control of Bulgarian railroads is absolute, and is assured by reliable native Communists who are placed at every level of opera- tiona. Thus very few Soviet personnel are required for this function* 5. P.?,j,._11.)1_eleobDeve.......k. There will be few changes in the Bulgarian railroad system by the end of 1952, and the net in to the Soviet economic potential pill be slight. Inventories of locomotives and freight cars will be slightly increased; can siderable worn rails will be replaced with heavier rails on some of the main lines, particularly the Sofia-Plovdi-aurgas line; and the percentage of cars equipped with air brakes will increase. Work will go forward on the new Troyan-Karlovo line, and the Samnelpailistra lime maybe pushed to conpletion. It is unlikely that the Sub-Balkan line between Sofia and Karlavo or the connection between Gigen and Pleven will, be completed. SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For-Release 2005/043DMIA-RDP79R01012A000900040004-3 B. Livr.m. 1, Direct Contributions of H;dmovs to the Economic Potential 773FWa-F-a-TM7Inrt. ? a. General Description of the Network. Sofia is the focal point of the Bulgarian highway system. Although the network is mem (average density being about 0.2 kilometer per square kilometer), improved roads connect Sofia with all major cities, as well as with Rumania, Yugoslavia, Greece, and Turkey. Most of the major roads are waterboand macadam with stone foundations and rolled gravel or sand sur- faces (asphalt or concrete surfaces are largely confined to urban areas), and most of them, with the exception of certain mountain sections, are wide enough for two-way traffic. Local areas, on the other hand, are usually served only by narrow, unimproved dirt roads. Sharp curves and grades of from 10 to 20 percent are common on the mountain roads of central and western Bulgaria.1 The total network of surfaced roads is estimated it 26,750 kilometers. b. Traffic. In 1939, trucks transported 170 million ton-kilometers of freight, and buses, operating over 10,000 kilometers reportedly carried 6.7 million passengers. .3/ Accurate figures for the postwar period have not been reported. A known increase, however, in the number of motor vehicles and the progressive improvement of the road system suggest that the current volume of traffic probably exceeds the prewar level. The major portion of road traffic is carried by various forms of animal transport, 0. Road Construction and mailAssam_Naletn. The number and type of roadbuilding machines employed sinoe World War II are not known. Road construction and maintenance are generally performed by manual labor, using local materials. d. Capacity. The traffic capacity of the entire Bulgarian road system has never been accurately determined. It is vita certain, however, that the system has not teen used to capacity and that highway capacity has not been a limiting factor in the development of motor transport. Seasonal variations in capacity are not great, although climate and terrain do limit potential traffic throughout much of the year. With few exceptions, average speeds in excess of 30 to 35 kilometers an hour are impossible, and 15 to 20 kilometers an hour is a more usual speed. let The traffic potential is also United by the lack of uoiformity in bridii construction. -69.. SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For-Release 2005/04a7zFIA-RDP79R010124000900040004-3 ao Vulnorabilite. The vain weaknesses of the road system are the absence of good alternative routes between major towns and the limited capaci,ies of bridges. f. Conclusions. Road construction and repair work have been reported con- stantly since World War Ii and the highway network has probably been expanded and improved to some extent. However, its potential value to the USSR In wartime in not believed to have increased significantly. Although much roadwork has been reported in the border areas, work on the highways baa been evenly die. tributed throughout the country in accordance with plans for overeall economic development. In additions it might be noted that Bulgarian road construction is, for the most part, of a type that requires almost constant maintenance and repair, and this fact tends to minimize the importance which may be attached to reported road work. It le believed that the Bulgarian road system would be of great value to the ussa in a short, limited campaign but that its condition and seasonality would sharply limit its usefulness in any extended military operation. 2. Direct Contributions of H hwa Trans.ort a. Inventories. Since 1947 the total inventory of highway transport equipment has Juan likelihood been increased somewhat through imports from Czechoslovakia and the USSR, but it is doubtful that the present total exceeds 12,000 vehicles* Before the war serviceability of the motor park was about 70 percent, and since the war it probably has not greatly exceeded 60 percentot In addition, there is a substantial number of animal-drawn wagons and carts ich account for a significant portion of road traffic movements. be Production Capabilities. There is no production of motor vehicles in Bulgaria. Wooden bodies are built for imported Chassis, and possibly some *ported components are assembled, but a motor vehicle industry as such does not exist. Some spare parts are produced at Sofia and Plovdiv, and two vehicle repair plants are reported to be under construction, y c. Effect of Transfers to. the USSR. No highway transport equipment has been shipped to the USSR from Bulgaria, and it is extremely unlikely that any will be shipped through 19520 '70.' SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/040WA-RDP79R01012A000900040004-3 d, Conclusions. The Bulgarian motor vehicle park makes no significant contribution to the Soviet economic potential for war, There is a heavy dependence upon imports of transport equipment from the USSR. There is no reason to believe that Bulgaria through 1952 mill make any direct contribution of highway transport equipment to the USSR. 3, Indirect Contributions, There is virturt11y no highway traffic betmeen Bulgaria and the USSR, nor mith the West. 4. Inverse Contributions, a, In February 1950, 65 Soviet-built trucks mere imported through Burgas as part of a consignment of 375 trucks promised by USSR. 21 The Bulgarian press reported in 1949 that 2,020 "automobiles and tractors" had been received from the USSR in the period 194547. 13/ Bulgaria has perhaps received up to 1,000 motor vehicles per year from the USSR since the end of World War II. This amount is barely enough to maintain an inventory of 10,000 vehicles, The Emil atonal increases in the size of the motor vehicle park are believed to have been the result of additional imports from Czechoslovakia, Bast Germany, and the West. b. hhterials and Danposer. With the exoeption of asphalt, which must be imported, Bulgaria has ample quantities of road-building materials. There is likewise no shortage of unskilled labor. The country is, homever, mainly dependent upon outside aid for supervisory personnel, designers, and trained technicians, 0. Soviet Control. Soviet control is exercised through Soviet personnel who hold positions of authority in the Hiniqtry of Transportation. 2/ Although no definite information is avAilpble on the extent of this control, it is believed to be virtually complete. 5. Probable Developments. It appears unlikely that any significant changes in the status of Bulgarian highway transport mill occur through 1952. Continued moderate increases in traffic and in the size of ,the motor vehicle park may be expected, as may the further improvement of major roads and bridges. However._ even if the current rate of development is radically accelerated, the contribution which Bulgarian highway transport mill be able to make to the Soviet economic potential for mar mill remain Small. 71 e? SECRE'T Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Re.tease 2005/041tMIA-RDP79R01012ACW0900040004-3 Co 12lier_ErmtsepLto 1. Direct Contributions of Water Trans ort to the Economic o n la or'ax' of a. General D_itcr..ILV_4ri of the Network. The Danube River is the primary water transport route in Bulgaria. There are several other rivers in the country, but they are of little importance. The value of the Danube to Bulgarian water transport is lessened somewhat by the fact that, although the river forms much of the northern border of the country, its mouth is in Rumania. (Under the present Soviet domination of the Bloc countries, this disadvantage is probably more theoretical than actual.) Furthermore, the Danube does not penetrate the interior of the country, where much of the population and economic activity is centered. Along the Danube there are a few ports, such as Ruse, Lam, and Vidin, which might be of some use to the USSR in case of war, but their value is greatly reduced by the present poor state of all facilities for handling ships and cargoes. Bulgaria has several ports on the Black Sea, but only two, Burgas and Stalin (Varna), are of importance. The economic significance of these Black Sea ports would be increased considerably, however, if there were water-route connections to the interior. 'Burgas is the main port for Western trade, and Stalin (Varna) is the principal port for traffic from the USSR, which comprises the major portion of Nigerian foreign trade. b. Traffic, Bulgarian-water transport is of little importance in purely domestic traffic. Both maritime and river traffic in Bulgaria consist principally of raw material exports, such as lumber and mineral products, and Imports, largely machinery and finished goods, from the Soviet Bloc, About 25 percent of Bulgarian trade is with the West. co Eqgipment. Bulgarian waterways are in poor condition, needing much technical assistance which the USSR is either unable or unwilling to furnish in adequate amounts. d. Capacity. The combined capacity of the two main ports of Bulgaria, Burgas and Stalin (Varna), is of some importance in meeting present require- manta. It is believed that present port capacity is insufficient to provide for greatly expanded operations, although the capacity could be expanded through allocation of sufficient resources. 72 SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04027RECIA-RDP79R01012Att80900040004-3 e. VuleerabilitE. Bulgarian eaternays and port facilities would be extremely vulnerable to attack by Western aircraft based in the Near East or along the Adriatic. Land- and possibly carrier-based aircraft, for example, could hit the ports on the Black Sea, as well as lay mines in the Danube and dis- rupt traffic on that route. f. Conclusions. The contribution of Bulgarian waterways and ports to the Soviet economic potential for war is at present slight, being confined to limited . traffic movements on the Danube and relatively small and unimportant cargo movements through the maritime ports. However, the potential contribution could be increased by intensive build-up of facilities. 2, Direct Contributions of Shipping to the Economic Potential 7-7-77-1EorazirtZST, a, Inventories. The ocean and river fleets of Delgaria now total about 35 ships of 2,000 tons. There are in addition about 100 barges ranging from 50 to 1,000 tons. Ocean.going ships number 16 vessels totaling 13,841 gross registered tons, the river fleet comprising the remainder. b. Production Capabilities. Bulgarian shipyards for production of merchant ships are being expanded. The most important domestic shipbuilding activities are in the port of Stalin (Varna). Despite the provisions of the Five Year Plan to increase domestic construction of largereships, actual output is still limited to small 'ships, probably under 1,000 gross registered tons. Consequently, contributions to the economic potential former of the USSR are very slight. c. Effect of Transfers to the USSR. Transfer of the small inventory of Bulgarian ships to the USSR would have virtually no effect upon the Soviet economic potential for ear and would probably work some hardship upon Bulgaria. Transfer of the entire ocean fleet and river fleet to the USSR would add less than 1 percent to the Soviet water transport potential. d. Conclusions. Bulgarian needs make it likely that there would be no major change in the status of the Bulgarian merchant fleet in the event of war. The most important change would probably be a further tightening, if possible, of present Soviet controls or, under certain military conditions, actual operation of the Bulgarian fleet within Bulgaria by the USSR, -73.- SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/4WM-RDP79R01012A000900040004-3 - 3. Indirect Contibutions. Bulgarian water transport is of little importance in trade mith the USSR and the West. Ebst of this traffic utilizes the port of Stalin (Varna) ? Suth trade as exists with the West is carried principally in Soviet, Polish, and Rumanian ships. 4. Inverse Contributions? Bulgaria mould require much in the may of equipment, materials, and technical manpomer in order to contribute materially to the Soviet economic potential. The size of the river fleet mould have to be increased well above its present level in order to utilize fully the Danube route. Bajor im- provements in port facilities continue to depend on Soviet assistance. Continued complete Soviet control of Bulgarian shipping appears to be a fore- gone conclusion. 5. Pro 1...ae___ba Develo nts. It is estimated that little or no change mill take place that will substantirTly alter the present water transport situation in Bulgaria before 1952. The most significant development probably willbe a slight increase in the size of the fleet through domestic construction and some few needed improvements in cargo handling in the ports. These Changes, however, are likely to be of small consequence. - 74- SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/0tEliSIA-RDP79R01012ao0900040004-3 o gt-TMuart2n. 1. arststagatatbutitape of Air Transvort to the Economia. 7442Pt4al for LtriUofl Of appratimately 38 2./ listed Bulgarian airfields and landing osounde, only 5 are atill..,ed by the civil airline TABS?, and 4 of these fields are shared jointly tith !nits of the Bulgarian or Soviet Air Threes. The network of airfields sewing civil air transportation are located at Burgas, Gorne, Orehvitsa, Plovd-v, Sofia, and Stalin (Varna). ScheduMad operations are conducted on an infrequent basis with several LI-2 airemft obtained from the USSR. The entire TABSO crganization contributos nothing to the Soviet economic potential for war. Foreign airlines engagel in limited commercial operations into Bulgaria are the Czechoslovak .airline CSA and the Soviet AE2DFLOT.J1( Co At least six airfields are believed to be equipped with radio navigational aids, .1nd recent uncomfirmed reports indicate that such installations are being made at additional airfields. Other reports of this nature point to a Soviet-sponsored z:id supervised program for improvement of Bulgarian.airfields which includes construction of repair and maintenance shape, the laying of concrete runways, and construction of underground storage facilities0 d.. ae4tYt , A rnjority of the 38 Bulgarian airfields are reserved for use by the Bulgariananl Soviet Air Forces. Runways are of sufficient length to permit use by D(:.3 or LI-2 transport aircraft if necessary. The fact that most of these afrfillds have a natural, unpaved surface would not act as a deterrent to their rso by the types of transports currently employed by the USSR and the Satellites. Therefore, the potential capacity of Bulgarian air facilities for the large-scale movement of transport aircraft is an important direct contribution to the Soviet air transport potential in southeastern Europe in the event of a rapid build-up for war. 0.NI-XeallitZ. Air transport equipment is vulnerable to sabotage, but Bulgarian eqaipment it of sc little consequence that its destruction would be a matter of no serious importance The vulnerability of the airfields is not a major consideration in Elgariais economic potential but is important to the strategic potential of the U43R. Comlusieas. The extersive Bulgarian airfield network constitute e,okirect and.signifialesttoseneftstaGNIONiFtcasRAMMARtonotfldugSSR: . 75 . Approved For RElease 2005/04/FIS-RDP79R010121W00900040004-3 Direct Contributions of Air Trapaport ntto the ---.74GEocnmT-'oEen--tr1M-Ffr-ar?ofiheUSS An inventory of Bulgarian aircraft indicates that Bulgaria is unable to make agy appreciable contribution of air transport equipment to the. USSR. the Bulgarian civil airline TABSO has the follouing transport aircraft Vt 2 DC-3s,7 LI-2s, and 3 JU-52s. The Bulgarian Air Form in- cludes a total of 10 JUa52 transports, Bulgaria has no aviation productLon capabilities. The econopy of Bulgaria mould not be affected by transfers If air transport equipranet to the USSR. 3, Indirect Contributions. Bulgarian air transport aircraft do not enter the USSR, and traffic by Soviet air transports; tattmeen the USSR and Btagarlamakes DO contribution tc the Soviet economy. Thera is no air transport trade uith the West, and clandestine air traffic between Bulgaria and the valet is negligible. 4. .Inverse Contributions, Bulgaria is almost entirely dependent upon the USSR for its air transport equianent. Seven of the nine DC-3 type of aircraft of the civil airline TAO mere obtained from the USSR under a Soviadeftlapalanagamement establishing the TAM organization. b. bittliataanda----E. Bulgaria is dependent upon the USSR for spare parts for its civil aircraft and for aviation gasoline. Bulgarian manpower requirements sre principally for technical and supervisory engineering persomnel* The Bulgarian airfield rehabilitation and construction program has been to a great extent directed by the USSR, 0. 2ealk_tcalp Bulgaria's dependence upon the USSR for equipment, materials, and technical assistance has enabled the USKR to control air transportation rithin the country. The USSR also has a favored position through the air agreement resulting in the establishment of TABSO. This airline is a joint stock company, nominally under the Bulgarian Ministry of Transport, whose policies and operations are largely directed and controlled by the USSR. 5. The Soviet-sponsored airfield improvement program will probably be continued through 1932. It in un3ikaly, houever, that air transport operations rill increase significantly in this period. SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved ForRetease 2005/04/27 : CIA-RDP79R01012A000900040004-3 SECRET Tra--SiBEECALALUMUNILAUSESIMISILIURSITIEW 1, lemmaggLeaLbajdoltassatadestn. 'ander the Five Tear Plan (1949.43) the pregtortion between asprinatural and nonagricultural production is to be changed fras 70 to 30 to 45 to 55. In order to abeam:110h this aftelerated industrialisation heavy Industry ie scheduled to receive 83 percent *fall intestment fund:. Indleations Are that the Bulgarians are failing to meet the goals of the Plan and will ? not attain them by 1953 unless Soviet Bloc assistance i.e increased. An important obstacle to industrial development is the inadequagy of the electrical pcmer output :which, excepting Mania* is the smallest in Eastern Europe, Bulgaria lacks developed facilities and capital goods for major induitrial progress and development is contingent an Imports of coal, eoke? oil* iron, stalk, equipment* neehinery, and chemicals. 20. higteultur4 i?er.1-0~t0 The allocations or resonrces to agricultural development are considerably smeller than those to industry* as agriculture has only second priority under the Five Year Plan. The government is atteepting to consolidate the small individual land holdings Into larger units suitable for mechanised farming. By the end of 1950 about 50 percent of the arable land had been conseidated. Mechanisation however, does not necessarily increase production per heaters* althougb it does increase production per man and time releases marpower.for activities other than agriculture. The tempo of further celectivisaticaL win be largely governed by the availability of heavy agricultural equipment* most of Which will have to be imported. Production of agricultural machinery in prewar Bulgaria was negligible. The Five Tiernan, however, has scheduled a 1953 output of 90,000 mite of agricultural maChinery, incleding cultivators* plows seeders, bindere*.and harvesters. In order to implement this program, three new agricultural machinery plants are to be coepleted by 1953. Since the bulk of Bulgarian production consists of simple plows and cultivators, it is possible that the planned figure will be reached. 3. 211111mAgegagglige. Civilian requirements receive the lowest priority in allocation of eoonomic vesources. Food availability In Bolgeria? although almond to that in Hungary, whiah leads the Satellite ecuntries* is quite low as compared with Vestern Europe. The most.striking.development, as in other Satellites* has been the shift of mlonomic advantage fraa the former small middle class to the new classes of Communist officials and managers and the filer labor leaders. 'or purposes of food rationing the nonfarm population is divided into a number of categories, of atieh the most favored are heavy laborers as f/ high goverment officials, and the least favored the workers in light industry* salc. SECRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R01012A-01)0900040004-3 SSC= miner civil servants, and professional people. increases in food wan.. abilities projected under the Five Tear Plan would place 2953 oonsumption well above prewar, tat the continued existence of rationing on most food items makes it doubtful that the degree of progress is as great am planned. A severe housing shortage exists in Bulgaria, and unsatisfactory progress has been made on postwar housing construction pro ns General health and welfare conditions, however, are not appreciably worse at present than in recent rears 40 *J1 Bulgaria will impose a alidht net drain on the ear potential of the USSR, at leant through 1952, because of its dependence upon the other countries of the Soviet Bloc for fahricatedmaterials9 The developwart of the clammy toward greater solfseufficieecy? la impeded by the fact that major industrial raw materials? equipment, and fele moths imported and that these items cannot be obtained in quantity' either from the Soviet Bloc or free! Vette= aources. Despite attempts to overcome beets economicweakness** the Bulgarian contribution to the war potential of the USSR will be itegligible within the next 5 or 10 years0 lableitagriTANSILSUMLENSIES2a, lhdas. Production *Sunni= in Bulgaria began in 1946 under the control of the Soviet Union. The output has increased steadily wad by the end of 1950 Bulgaria accounted for 4. percent of the total uranium available to the USSR. The 1946.60 rate of output is expected to continue through 1952. beneldigiatslinau Deposits of iron ore, Chrome ore, manganese, soeka3? titanium, and tungsten exist, but they have not been thoroughly developed, aed reserves ere not large. All iroe-ere production is exported to Header', Poland, Czeehoslovakia, and Bumomsland all Chrome ore is exported to Fast Germaqr. Bulgaria requires equipeaut and technological assistance from other Satellite countries in order to expand production of iron ore, chrome ore, and manganese0 So gsgasulandji_andatia. Lead and sine makeamore significant contribution than sapper. Ail information indicates an extensive program for increased production of lewl and zinc for shipeent to the USSR. Copper production atd reserves in Bulgaria are email, but if necessary facilities are provided, exports to the Moo ean be stepped up to make a small but significant contribution to the Bloc' military-econeado potential. 78 SICRET Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Release 2005/04/27 : CIA-RDP79R010121C5b0900040004-3 SW= kaglialLAINUCKUMV Blemeetal sulphur is not produced in Bulgaria, The only indicator of pyrites prednetion is the known export of 10,000 metric tons in 1949 and planned exports of 400000 tons in 19510 all to Czechoslovakia. The extent of reserves is not known. 0 Co Elitaajla? Bulgaria exports some wood chemicals (sethanCl, acetic acid, as-stones ate.), as veil as glycerine, mostly to the Bloe. Basic heavy chemicals, with the exception of calcium carbide, must be imported from the Bloc, and some quantities of these also are Obtained from the West. Despite its limited. production, Bulgaria does not depend heavily upon the Bloc with respect to Chemicalpotecause its requiremente are very moderate. f. Azdtganaza2ezhasta,, Since World War II, grain crops, except in 1948, have been below prewar yields, This has resulted from 3 years of unfavorable weather and same peasant resistance to the governmentils agricultural policy of crop quotas and collectivization. Because of unrest along the peasants,, production probably will not increase in 1952, and there may possibly be a slight decrease. Moreover, increased acreages of industrial crops are being stressed in the Five Tear an, and these increases will have to be made at The expense of food crop acreages. Belgarla exports tobacco end IMMO food stuffs to the USSR and in exchange reclaim cotton, metals, ell products, and industrial and agricultural machinery. The Soviet Union bandits fPas such trade by selling the tobacco and rose oil on world markets for hard currency. rir.0 79 AO SPORYS Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Rrelease 2005/04/27 : CIA-RDP79R01012A1700900040004-3 =Mr 14 Since the Bulgarian gooney is primarily agricultural? it is net highly vulnerable to Western economic warfare measures* The relatively eininportant industrial seater, however, is vulnerable. Although the volume of Bulgarian trade with Western Europe Is mall, imports Include strategic indnatrial Item not readily available from within the Soviet Bloc, such as precision instruments, abrasives, railroad replacements, textile machinery, automotive equipment, and ball bearings. Such imports are beginning to be curtailed as a result of Western export controls, and the ability of Bulgaria to take effective steps to eompensate for such measures Is very ltnited. The extent to which the Soviet Bloc would assist Bulgaria by supplying the ramematerialse machinery, and equipment needed Is questionable* Moreover, econemic warfare meaeures directed by the West against the USSn and the other Satellites also vould retard the Bulgarian Industrialisation program, since that coustrys in View of its negligible contribution to the eeenomy of the Bloc, would erobehly reteIve a relatively low priority in any reellocation of resources taithie the Blue. Postwar Bulgarian foreign trade is*Intimated as being e5 percent with the Soviet Bloc, principally with the USSR. lhports outside the Bloc are eminpertant and consist largely of fecadetuffe. Thawing. overseas tradeee-partners include Argentina, which supplies raw materials such as ueol, bides, and quebracho? and Egypt, uhioh provides some cotton. Western economic Werfart measures could cutoff these overeaten imports, but at most this would retard only a small segment of Bulgarian industry. In any ease, there are now some indications that economic plans for Bulgaria have changed, and industrialisation maze be sacrificeerin favor of the expansion of agricultural produetion. =ST Approved For Release 2005/04/27 : CIA-RDP79R01012A000900040004-3 Approved For Rye-lease 2005/04/27 : CIA-RDP79R01012a00900040004-3 SECRET ZatalltilinLILZUSUSUALISMAIL0 A ounsiderahle acceleration in the military mobilisation of manpower in Bulgaria in recent months in an indication of preparation for war. There are no indications reported In the Bulgarian econoey* however* which can be construed as immediate preparation for hostilities. The tempo of development of the industrialmmilitary potential* the production of war material* efforts toward the accumulation of steekpdles* the reduction of dependence on the Vest, and the development of heavy industry* au conform to the pattern of Soviet Bloc program over the past few years. 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