DEPENDENCE OF THE SOVIET BLOC ON FOREIGN VESSELS IN SEABORNE FOREIGN TRADE 1958 AND 1965 PLAN

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Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 SECRET N? 81 ?7, ECONOMIC INTELLIGENCE REPORT DEPENDENCE OF THE SOVIET BLOC ON FOREIGN VESSELS IN SEABORNE FOREIGN TRADE 1958 AND 1965 PLAN CIA/RR 59-48 ' December 1959 CENTRAL INTELLIGENCE AGENCY OFFICE OF RESEARCH AND REPORTS SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/08/22: CIA-RDP79R01141A001500190002-2 - Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 WARNING This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C -R-E-T ECONOMIC INTELLIGENCE REPORT DEPENDENCE OF THE SOVIET BLOC ON FOREIGN VESSELS IN SEABORNE FOREIGN TRADE 1958 AND 1965 PLAN CIA/RR 59-48 CENTRAL INTELLIGENCE AGENCY Office of Research and Reports S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Summary S-E-C-R-E-T CONTENTS I. Introduction II. 1958 III. 1965 Appendix A. Methodology Appendixes Page 1 1 2 7 50X1 Tables 1. Estimated Seaborne Foreign Trade of the Soviet Bloc Carried by Domestic Vessels and by Foreign Vessels, 1958 3 2. Estimated Requirements of the Soviet Bloc for Foreign 5 Vessel Capacity, 1958 3. Estimated Seaborne Foreign Trade of the USSR Carried by Domestic Vessels and by Foreign Vessels, 1950, 1955-58, and 1965 Plan li- )4. Estimated Seaborne Foreign Trade of Poland, 1956-58 15 and 1965 Plan 5. Estimated Seaborne Foreign Trade of East Germany, Czechoslovakia, and Hungary, 1958 16 - - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22: CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T DEPENDENCE OF THE SOVIET BLOC ON FOREIGN VESSELS IN SEABORNE FOREIGN TRADE* 1958 AND 1965 PLAN Summary In 1958 the seaborne foreign trade of the Soviet Bloc is esti- mated to have been about 50.7 million metric tons,** of which about 32.8 million' tons were carried by foreign vessels. A minimum esti- mate of the non-Bloc vessel capacity needed to transport this cargo is 2.9 million deadweight tons (DWT),*** and the actual tonnage of the vessels used, including liners, may have amounted to almost 4 million DWT. It is estimated that the requirements by the Bloc for foreign vessels during 1958-65, although declining as a percentage of total capacity needed, will remain at about present levels. These estimates of foreign vessel capacity required by the Bloc have only recently been made possible by the development of a methodology that analyzes interrelationships among cargo tonnages, vessel ca- pacities, and average lengths of haul. I. Introduction The extent to which the Soviet Bloc depends on foreign vessels has hitherto been determined by analysis of (1) statements by coun- tries of the Rloc concerning the share of their seaborne cargoes carried by their own fleets and (2) information on Bloc charters of non-Bloc vessels. The first approach yields the tonnage of the cargo to be carried by foreign vessels but not the amount of foreign vessel capacity needed. The second approach yields inconclusive re- sults, because the available information on charters probably is * The estimates and conclusions in this report represent the best judgment of this Office as of 1 November 1959. ** Cargo tonnages are given in metric tons throughout this report. *** Deadweight tonnage is the carrying capacity of a vessel in long tons -- that is, the difference between the displacement light and the displacement loaded. S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T incomplete and also excludes the use of liner service* and of tramp vessels not under charter to the Bloc. In addition, the information on charters thus far has provided only annual totals of the shipping space chartered, most of which actually was chartered for periods of less than I year. The estimate made in this report is of the average amount of foreign vessel capacity needed by the Soviet Bloc, including both direct charters and all other nonchartered space used. This esti- mate is only an indicator of magnitude, which provides a measure of the average requirement throughout the year without provision for seasonal variations, and the margin of error may be as much as plus or minus 15 percent. Only recently has enough information become available to permit estimates of the amounts of cargo carried in foreign vessels as well as estimates of average lengths of haul. As more data are gathered, particularly on average amounts of cargo carried per deadweight ton of vessel capacity at varying lengths of haul, the method outlined here may permit more reliable estimates to be made. II. 1958 In 1958 the seaborne foreign trade of the Soviet Bloc probably amounted to about 50.7 million tons. Bloc vessels carried 17.9 mil- lion tons of this total, leaving an excess of about 32.8 million tons to be carried by foreign vessels, as shown in Table 1.** The amount of foreign vessel capacity needed to carry the excess 32.8 million tons varies by country according to the average length of haul of the traffic involved. After allowing for such differences, it is estimated that an average of 10.6 tons of cargo could have been carried per deadweight ton of vessel capacity in 1958. This figure would indicate that an average of approximately 3.1 million DWT of foreign vessel capacity was needed throughout 1958 to carry the ex- cess seaborne foreign trade of the Soviet Bloc.xxx It is estimated, however, that about 700,000 tons of East German and Czechoslovak car- go were carried by Polish vessels and that about 2 million tons of Satellite cargo were carried by Soviet vessels. Probably about * Liner service is service on a prescheduled, advertised route with multiple prearranged ports of call. It is open to booking by shippers all along the route of cargo to be loaded and discharged at different ports en route. If a vessel that is usually on liner serv- ice takes a full load of cargo for one shipper to be discharged at a port or ports agreed on with the shipper, the vessel by definition has been withdrawn from the ship operator's liner service. ** Table 1 follows on p. 3. xxx For methodology, see Appendix A, p. 7, below. - 2 - Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T Table 1 Estimated Seaborne Foreign Trade of the Soviet Bloc Carried by Domestic Vessels and by Foreign Vessels 1958 Million Metric Tons Country Total Carried by Domestic Vessels Carried by Foreign Vessels USSR 2/ POland East Germany Rumania Czechoslovakia Bulgariay Hungary d Albania Total Estimated duplicate traffic between Bloc countries Balance 24.5 13.712/ 5.5 1/ 5.0 f/ 4.0 El/ 1.2 0.9 0.7 ,.1/ 55.5 13.6 2.7 2/ 0.5 2/ 0.2 51 0.2 L.,/ 0.5 0.1 0.1 .11/ 17.9 10.9 11.0 5.0 4.8 3.8 0.7 0.8 0.6 37.6 4.8 50.7 17.9 4.8 32.8 a. See Table 3, p. 14, below. b. See Table 4, p. 15, below. 50X1 d. e. f. g. and h. and j. k. See Table 5, p. 16, below. For methodology, see Appendix A, p. 17, below. Estimate based on 1957 data on the fleet and tonnage carried on the 1958 fleet. Estimate based on 1956 data on the fleet and tonnage carried on the 1958 fleet. Lti 5 - 3 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T 200,000 DWT of Polish and Soviet vessels were used for this purpose and therefore should be subtracted from the figure of 3.1 million DWT, leaving a balance of 2.9 million DWT of non-Bloc vessel capacity needed. Estimates of the requirements, by Bloc country, are shown in Table 2.* Distinct from the concept of vessel capacity needed is the concept of the total deadweight tonnage of the vessels involved. Both East Germany and Czechoslovakia have been using liner service heavily. All other countries of the Soviet Bloc also use liner service, but no estimates can presently be made on the volume involved. Cargo so shipped (in less than shipload lots) would involve more vessels, and, therefore, more deadweight tonnage would be counted than was used. It is believed that about 30 percent of East German and Czechoslovak cargo moves on liners. If provision were made in the above estimates for the use of liner service -- which would include the vessel ton- nage actually involved although not necessarily that required -- the estimate of 2.9 million DWT would be raised to about 3.8 million DWT.** Use of liner service by the rest of the Bloc will increase this figure, although to an unknown extent. The figure of 2.9 million DWT is, therefore, a minimum estimate of the non-Bloc vessel capacity needed by the Bloc in 1958. The practical dependence -- that is, the vessel tonnage involved -- probably was closer to 4 million DWT. The dif- ference of almost 1 million DWT is a result of Bloc use of liner service and represents the amount of vessel tonnage that could have been dispensed with in 1958 if the Bloc had been able, to use tramp service exclusively, including chartered vessels. III. 1965xxx On the basis of plan announcements by the USSR, Pbland, East Ger- many, and Czechoslovakia, which together accounted for about 82 per- cent of all cargo of the Soviet Bloc carried by foreign vessels in 1958, it is possible to estimate requirements of these Bloc countries for foreign vessels in 1965. Soviet plans indicate that the share of Soviet seaborne foreign trade to be carried by foreign vessels will be 23.5 percent in 1965 compared with 44.4 percent in 1958. In spite of this proportionate decline, the absolute tonnage of Soviet trade to be carried by foreign vessels probably will increase from 10.9 million tons in 1958 to 11.8 million tons in 1965. The share of Polish cargo to be carried by foreign vessels probably will decline from 80.4 percent in 1958 to 56.8 percent in 1965, reflecting an * Table 2 follows on p. 5. ** For methodology, see Appendix Al p. 17, below. XX For the tonnage to be moved in 1965, see Appendix A, p. 13, below. - 4 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T Table 2 Estimated Requirements of the Soviet Bloc for Foreign Vessel Capacity 2/ 1958 Country Cargo to Be Moved12/ (Million Metric Tons) Estimated Average Length of Haul 21 (Nautical Miles) Cargo Factor: Cargo Tons per Deadweight Ton/ Foreign Vessel Capacity Needed (Thousand Deadweight Tons) USSR 10.9 2,200 11.6 940 Poland 11.0 2,600 10.9 1,009 East Germany 5.0 4,500 8.4 595 2/ Rumania 4.8 2,500 11.0 436 Czechoslovakia 3.8 4,000 9.0 422 2/ Bulgaria 0.7 3,300 9.8 71 Hungary 0.8 3,000 10.2 78 Albania 0.6 2,000 12.1 50 a. Columns have not been totaled, because the first and last columns each contain duplicate traffic. East German exports to the USSR, for example, are included under East Germany and also under the USSR. b. Figures are taken from Table 1, p. 3, above. c. For methodology, see Appendix A, p. 10, below. d. For methodology, see Appendix A, p. 7, below. e. Of the total of 1,017,000 DWT shown to be needed by East Germany and Czechoslovakia, it is estimated that about 100,000 DWT were supplied by Polish-flag vessels. Some of the remaining 900,000 DWT (possibly 100,000 DWT more) were supplied by Soviet vessels. - 5 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T absolute decrease from 11.0 million tons in 1958 to 8.3 million tons in 1965. East German cargo carried in foreign vessels may total about 10 million tons in 1965 and that of Czechoslovakia about 5.2 million tons. In aggregate, the Soviet, POlish, East German, and Czechoslovak cargo to be carried by foreign vessels may increase from 30.7 million tons in 1958 to 35.3 million tons in 1965, so that the considerable decline in the share of seaborne foreign trade left for foreign ves- sels in 1965 will have only a slight effect on the actual requirements for foreign shipping needed to move this trade. - 6 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22: CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T APPENDIX A METHODOLOGY 1. Cargo Factor: Cargo Tons Carried per Vessel Deadweight Ton The following method is used in this report to find a reasonable factor to determine vessel capacity required over a period of a year to move any given amount of cargo. It is axiomatic that the amount of vessel capacity needed to move cargo will vary with the distances that the cargo must be moved. The problem is to find first a usable pattern between specific distances involved and the amount of cargo that can be moved by each deadweight ton of vessel capacity used. Once such a relationship is established, the total amount of cargo to be moved may be divided by the tons of cargo possible per vessel deadweight ton (called here the cargo factor) established for the particular distance involved. The result will be the total number of vessel deadweight tons (the vessel capacity) needed to move the car- go. For example, if 10 million tons must be moved in 1 year for an average distance (average length of haul) of 3,000 miles* and the pattern has been established that 10 tons can be moved per vessel deadweight ton (a cargo factor of 10) at that distance, then 1 mil- lion DWT of vessel capacity will be needed. If several different groups of cargo must be moved, each for a different average length of haul, and an over-all factor is needed for the combined groups -- as is here the case for the Soviet Bloc as a whole -- the cargo factor for each group of cargo must be weighted by the proportion that group bears to the total of all the groups of cargo. The mechanics of establishing an over-all factor for the Soviet Bloc, within the method outlined above, were as follows. In order to find a pattern, if any, in the relationship between the average length of haul and the volume of cargo moved per deadweight ton, the performance of the Polish fleet was used because only for the Polish fleet was enough infortation (tons moved, ton-miles performed, and deadweight tonnage of the vessels used) available to permit re- lating the performance to the fleet capacity. It was necessary to adjust the resulting cargo factors for the Polish fleet to arrive at estimated cargo factors for foreign vessels, inasmuch as the perform- ance of foreign vessels carrying the same cargo will be more ef- ficient. The performance of the Polish fleet includes, for example, * All mileages in this report are given in nautical miles. - 7 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T time lost during repair of vessels, whereas foreign vessels would be hired only during the time that the vessels were in operation. In 1956 the proportion of time lost by Polish ships, whether for repair or for other reasons, was 16 percent. jp/ The corresponding cargo fac- tors for foreign vessels, therefore, have been increased by 15 percent above the cargo factors for the Polish fleet. The cargo factors indicated by the performance of the Polish fleet* for varying average lengths of haul, together with the corresponding cargo factors for the use of foreign vessels, are as follows: Average Length of Haul (Nautical Miles) Cargo Factor: Cargo Tons per Deadweight Ton Polish Fleet Foreign VeSsels 2,000 10.5 12.1 2,500 9.6 11.0 3,000 8.9 10.2 3,500 8.3 9.5 4,000 7.8 9.0 4,50o 7.3 8.4 5, 000 6.9 7.9 9,000 4.5 5.2 10,000 4.0 4.6 * Performance figures for the following four segments of the Polish fleet were used: the entire state-owned fleet minus its domestic traffic, those vessels under the control of the Central Administration of the Polish Merchant Marine (Centralny Zarzad Polskiej Marynarki Handlowej --.CZ-PMH) only, the CZ-PMH vessels operating between Polish and foreign ports only, and those vessels owned by Poland but not under the control of CZ-PMH. 2/ Vessels in the last category apparently were all on the Far East run, with lengths of haul of from 7,000 to 11,000 miles. The available data permitted the charting of 20 relationships be- tween average length of haul and cargo tons carried per deadweight ton. From the resulting curve, all relationships of cargo factor to length of haul given in this report were obtained. The fact that the curve is based on only 20 relationships is a major source of error. It may be only coincidental that of the 20 relationships plotted, only 7 were away from the resulting curve, and only 3 of these were extremes. If 200 relationships were available, the trend conceivably might be different. - 8 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S -E-C -R -E -T The cargo factor for each of the Soviet Bloc countries, derived from the plotted curve mentioned above, is as follows: Country Estimated Average Length of Haul* (Nautical Miles) Cargo Factor: Cargo Tons per Deadweight Ton USSR** 2,200 11.6 Poland 2,600 10.9 East Germany 4,500 8.4 Rumania 2,500 11.0 Czechoslovakia 4,000 9.0 Bulgaria 3,300 9.8 Hungary 3,000 10.2 Albania 2,000 12.1 After the cargo factor has been obtained for each of the Bloc coun- tries, it is necessary to derive an over-all factor for the Bloc by weighting each country's factor by the share which its cargo represents of the total Bloc cargo to be carried by foreign vessels, as follows: Country Cargo to Be Moved on Foreign Vessels (Million Metric Tons) Percent of Total Bloc Cargo Weighted Cargo Factor*** USSR 10.9 29.0 336 Poland 11.0 29.3 319 East Germany 5.0 13.3 112 Rumania 4.8 12.8 141 Czechoslovakia 3.8 10.1 91 Bulgaria 0.7 1.9 19 Hungary 0.8 2.1 21 Albania 0.6 1.6 19 Total 37.6 100.0**** 1,058 Methods and sources for the estimates of average lengths of haul will be found in 2, below. ** It has been estimated that about 4 million tons of the Soviet car- go is POL carried in foreign tankers and that about 450,000 tons is lumber carried on vessels chartered for consecutive voyages. The per- formance of tankers would be about 60 percent higher than the average performance of dry cargo vessels because tankers spend about 80 percent of their time at sea in contrast to about 50 percent of the time spent at sea by dry cargo vessels. Moreover, tankers and lumber carriers hired on a time or consecutive-voyage gootnotes continued on p. 1..p7 - 9 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T The total of the weighted factors for the countries of the Soviet Bloc, 1,058, divided by 100 gives an over-all weighted cargo factor for the Bloc of 10.58. The total Bloc cargo carried by foreign ves- sels, 32.8 million tons (37.6 million tons minus 4.8 million tons which are estimated to be duplicate traffic), divided by the factor of 10.58 gives 3.1 million DWT,* the foreign vessel capacity needed by the Bloc in 1958. 2. Average Lengths of Haul a. USSR In 1957 the statement was made in the Soviet press that the average length of haul by the Soviet fleet of import and export car- goes was 1,400 miles in 1955, whereas the average length of haul by chartered foreign vessels was about 2,000 miles. 12/ Recently it has been possible to estimate from statements of various percentage increases and decreases 11/ that the average length of haul by Soviet vessels engaged in foreign trade in 1958 was almost 2,000 miles. This figure includes not only Soviet import and export cargoes but also shipments between foreign ports. Partial data concerning the direction of total Soviet seaborne foreign trade on both Soviet and foreign ves- sels indicate that the length of haul by foreign vessels may have in- creased since 1955 but not so rapidly as the length of haul by Soviet vessels. Therefore, the tentative figure of 2,200 miles has been used for the average length of haul by foreign vessels carrying Soviet foreign trade in 1958. As more data are gathered on the origins and destinations of Soviet seaborne foreign trade, it should be possible to determine more reliably the average length of haul by foreign ves- sels. b. Poland The origins and destinations of Polish seaborne trade in 1957 are available in detail as well as the shares carried and the average lengths of haul by the Polish fleet. 12/ On the basis of these data, 10.7 million tons of cargo were carried) and it is estimated that about 26.5 billion ton-miles were performed in 1957. Of this amount, basis run one way in ballast, thus lowering performance 50 percent. These calculations have been made, but the results affect the total of 3.1 million DWT too slightly to justify including them here. *** Product of percent of total Bloc cargo and cargo factor (as shown in the above tabulation). **** Because of rounding, percents do not add to total shown. * Not subtracting the 200,000 DWT of Soviet and Polish vessels esti- mated to have carried other Satellite cargo. - 10 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22: CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T 2,625,000 tons were carried by the Polish fleet for a total of 5.9 bil- lion ton-miles, leaving about 8.1 million tons carried by foreign ves- sels for a total of 20.6 billion ton-miles, or an average length of haul of about 2,600 miles performed by foreign vessels. c. East Germany The origin and destination of about 85 percent of East German seaborne foreign trade has been identified with fair reliability. 1_,V The result indicates a length of haul of 4,400 miles, and if, as is possible, the missing 15 percent were Southeast Asian and/or Far East- ern cargo, the average length of haul would be close to 4,700 miles. The compromise figure of 5,500 miles has been used. d. Rumania Of the 5 million tons of Rumanian cargo carried by domestic vessels, about 1.5 million tons probably moved in the Black Sea on hauls of 200 to ivoo miles. The remaining tonnage moved primarily to and from Northern Europe (about 4,o00 miles), the Far East (about 7,000 miles), and the Mediterranean (about 1,000 miles). The average length of haul is tentatively estimated to be 2,500 miles. e. Czechoslovakia Czechoslovak seaborne foreign trade has been partly identi- fied, 1A/ and more Czechoslovak cargo than East German cargo moves in the South American and South Asian ranges (both about 6,000-mile hauls), and apparently less Czechoslovak cargo moves in the longer Far Eastern range. A tentative estimate of 4,000 miles for the average length of haul of Czechoslovak cargo has been made in comparison with the esti- mate of 4,500 miles for the average length of haul of East German cargo, taking into consideration the fact that the cargo carried by the Czecho- slovak fleet itself was engaged in long-distance hauls. f. Bulgaria Bulgarian and Hungarian lengths of haul were estimated on the basis of the performance of the domestic fleets.* The fact that Bul- garian vessels were engaged in the Murmansk-Varna trade and in the South American trade (both long-distance hauls) probably weighted the length of haul by the Bulgarian domestic fleet more heavily than the length of haul by foreign vessels. The average length of haul of Bul- garian cargo carried by foreign vessels is estimated to be 3,300 miles. * The average length of haul of the Bulgarian fleet in international trade was 3,500 miles in 1957, 12/ and that of the Hungarian fleet was 2,500 miles in January and February 1958. 1../ - 11 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T g. Hungary Only partial and contradictory information is as yet available on the direction of Hungarian seaborne trade. Hungarian vessels were engaged only in the local Mediterranean trade, however, and the length of haul for foreign vessels therefore was estimated to be 3,000 miles, in the belief that foreign vessels carried more long-distance cargo. h. Albania Albanian cargo is believed to have moved primarily in three areas, to and from the Black Sea (about 1,000 miles), the Adriatic (300 miles), and the Baltic (3,300 miles). The average length of haul by foreign vessels is estimated to be 2,000 miles or less. i. Effects of Errors The extent to which errors in the estimation of average lengths of haul might affect the conclusions in this report can be tested. The most important average lengths of haul are those for the USSR and Poland. If the estimated average length of haul of Soviet cargo on foreign vessels is increased to 2,500 miles and if the estimated lengths of haul for the Satellites also are increased to what is presently considered to be a maximum, the results would be as follows: Country Average Length of Haul (Nautical Miles) Cargo Factor: Cargo Tons per Deadweight Ton Percent of Total Bloc Cargo Weighted Cargo Factor USSR 2,500 11.0 29.0 319 Poland 2,800 10.5 29.3 308 East Germany 5,000 7.9 13.3 105 Rumania 3,000 10.2 12.8 131 Czechoslovakia 5,000 7.9 10.1 80 Bulgaria 3,500 9.5 1.9 18 Hungary 4,500 8.4 2.1 18 Albania 2,000 12.1 1.6 19 Total 100.0* 998 * Because of rounding, percentages do not add to the total shown. - 12 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22: CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T If the total of the weighted factors is divided by 100, the over-all factor for the Soviet Bloc, therefore, would be 9.98 instead of 10.58, and the foreign vessel capacity needed would be 3.29 million DWT in- stead of 3.1 million DWT.* If, however, the average length of haul for Soviet cargoes is increased to 2,500 miles but the average lengths of haul and the factors for the Satellites remain at the original estimates, the over- all factor would be 10.41, and the requirement for foreign vessel capacity would be 3.15 million DWT. Neither change is significant. Changes in the estimated average lengths of haul for Hungary and Al- bania would not change the over-all cargo factor for the Bloc signifi- cantly, because the combined cargo for these two countries amounts to less than 4 percent of total Bloc cargo. 3. Seaborne Foreign Trade of the Soviet Bloc a. USSR The changing role of foreign vessels in the carrying of Soviet seaborne foreign trade during 1950 and 1955-58 and the role planned for them in 1965 are shown in Table 3.** b. Poland The seaborne foreign trade of Poland is shown in Table 4.*** The carrying capacity of the Polish fleet is expected to total 1.44 million DWT in 1965, including an amount estimated to be 190,000 DWT that may be under the Polish flag but may not be Polish owned. It is estimated that these vessels will carry about 9.2 million tons of cargo, of which about 6.3 million tons probably will be Polish foreign trade. Inasmuch as Polish foreign trade in 1965 is estimated to be about 14.6 million tons, the amount left to be carried in foreign vessels probably will be about 8.3 million tons. c. East Germany, Czechoslovakia, and Hungary The seaborne foreign trade of East Germany, Czechoslovakia, and Hungary in 1958 is shown in Table 5.**** * Not subtracting the 200,000 DWT of Soviet and Polish vessels estimated to have carried other Satellite cargo. ** Table 3 follows on p. 14. *** Table 4 follows on p. 15. **** Table 5 follows on p. 16. -13 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T Table 3 Estimated Seaborne Foreign Trade of the USSR Carried by Domestic Vessels and by Foreign Vessels 1950, 1955-58, and 1965 Plan Volume (Million Metric Tons) Year In Soviet Vessels In Foreign Vessels a/ Total Percent by Soviet Vessels 1950 1955 1956 f/ 1957 1958 1965 plan 7.1 2/ 8.0 2/ 8.5 11.9 2/ 13.6II/ 38.3 2/ 1.7 7.2 9.846.4 10.2 10.9 11.8 8.8 2/ 15.2 .f_/ g:3 1 1/ 24.5 .1/ 50.1 .1/ 80.7 1/ 52.6 1/ 53.9 1/ 55.6 1/ 76.5 2/ a. The difference between the total and the Soviet share. b. The 1956 figure divided by 120 percent. 1.!:..1/ c. The 1956 figure divided by 208 percent. 12/ d. The Soviet share divided by the total. e. 112 percent of the 1950 figure. L/ f. 173 percent of the 1950 figure. _221 g. h. The volume carried by Soviet vessels increased by 40 percent during 1957. 21/ i. The volume carried by Soviet vessels divided by the percent carried by Soviet vessels. j* k. The 1958 volume Of foreign trade cargoes carried by Soviet vessels was 1.7 times the 1955 volume. 25/ 1. This figure is a plan figure. The actual performance is not yet known. m. Soviet authorities have stated that the volume of liquid cargo carried by Soviet vessels in foreign trade will increase by 150 per- cent during 1959-65 and the volume of dry cargo by 220 percent. On the basis of aata for previous years, it is estimated that the volume of liquid cargo carried by Soviet vessels in foreign trade in 1958 was 7.5 million tons. The remaining 6.1 mil- lion tons of foreign trade cargo are assumed to have been dry cargo. Based on these figures, the volume of cargo in foreign trade planned to be carried by the Soviet maritime fleet in 1965 is 38.3 million tons. n. Plan figure, based on a statement that the share carried in Soviet vessels in 1965 will be from 75 to 78 percent, or an average of 76.5 percent. 2// - 14 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T Table 4 Estimated Seaborne Foreign Trade of Poland 1956-58 and 1965 Plan Thousand Metric Tons 1956 2/ 1957 2/ 1958 1965 Plan Total port traffic 15,525 14 215 16,936/ 20,000 c/ Of which: Transit cargo 2,470 2,522 2,602 11 4,500 2/ Bunkers and domestic traffic 921 979 657 1/ 900 g/ Balance: Polish seaborne foreign trade 12/ 12,134 10,714 13,677 1/ 14,60o a. Le/ b. c' 191 d. 31/ 50X1 f. This figure is a residual derived by subtracting transit traffic and foreign trade traffic from total port traffic. There is no explanation available for the drop from the level of 1956-57. g. Estimated on the basis of the figures for 1956-57. h. There have been small additional quantities of traffic entering and leaving via other European ports but not enough to be significant. The carrying capacity of the East German fleet is expected to total more than 500,000 DWT in 1965. _321/ It is estimated that these vessels will carry about 2.1 million tons of a total foreign trade of about 12 million tons. L/ This total would leave about 10 million tons of cargo to be carried by foreign vessels. The performance of the Czechoslovak fleet and the seaborne trade of Czechoslovakia in 1965 can only be estimated roughly on the basis of past performance. It is tentatively estimated that total sea- borne foreign trade will be about 6 million tons, of which possibly 800,000 tons may be carried by domestic vessels, leaving about 5.2 million tons to be carried by foreign vessels. - 15 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22: CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T Table 5 Estimated Seaborne Foreign Trade of East Germany, Czechoslovakia, and Hungary 1958 Thousand Metric Tons Transit Ports East Germany Czechoslovakia Hungary East German ports Polish ports 2/ Hamburg Rijeka Trieste Belgian and Netherlands ports 11./ Black Sea ports Total 4,070 2/ 557 835 2/ 60 5,522 120 22/ 1,785 865 1/ 418 57 1/ 60 700 1/ 4,005 4o 1.2/ 182 55 2/ 190 5o 51 50 300 867 a. Estimate based b. Estimate based discrepancy of 174, on performance in 1955-57. 12 on East German port figures for 1956, showing a 000 tons that were probably transit cargo. _42/ there is transit traffic through the East German ports. c. d' 192 e. Estimate based on data for 1957.!-12/ g. Estimate based on data for 1956. 42 h. Estimate based on data for 1957. 31 i. Data on Black Sea ports are sparse. Estimates are based on known total transit traffic through Bulgarian ports of 217,000 tons in 1955.1122/ and on estimated traffic of 265,000 tons in 1958 plus a vague statement that transit traffic in Rumanian ports (probably in 1957) totaled more than 400,000 tons and was increasing./22/ It is believed that at least 100,000 tons transit the Soviet Danube seaport of Reni. Some of the transit cargo would be Hungarian. j. Estimate based on the statement that the volume of imports from Near Eastern countries exceeds several times the capacity of the Hun- garian maritime fleet. An indication that the Hungarian fleet carried from 60,000 to 75,000 tons in 1958 is provided in January and February figures of 5,000 tons for each month and in the statement that the mari- time fleet must carry approximately 15,000 tons more in 1958 than in 1957. A.6.1/ - 16 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 50X1 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22: CIA-RDP79R01141A001500190002-2 S-E-C-R-E-T d. Rumania The port of Constanta probably handles as much as 85 percent of the seaborne foreign trade of Rumania.111/ It is estimated that Constanta handled about 4.5 million tons of Rumanian foreign trade in 1958, including about 3.7 million tons of POL. L@/ The total seaborne foreign trade of Rumania, therefore, probably amounted to about 5 million tons. 4. Liner Service To estimate the additional vessel tonnage that the Soviet Bloc requires because of its use of liner service, it has been assumed ? that 30 percent of Czechoslovak and East German cargo moves by liner* and that such cargo takes, on the average, one-fourth of a liner's capacity.** Thirty percent of the vessel capacity needed by East Germany and Czechoslovakia (1,017,000 DWT), as shown in Table 2,xxx is 305,000 DWT. This figure multiplied by four gives the total deadweight tonnage of the liners involved -- 1,220,000 DWT. This amount added to the capacity of tramp vessels carrying the other 70 percent of the cargo (712,000 DWT) gives a total of 1,932,000 DWT of vessels actually used, or 915,000 DWT more than the vessel capacity required by East Germany and Czechoslovakia. * It is probable cargo and less than liner. ** It is believed such cargo actually space. xxx P. 5, above. that more than 30 percent of East German 30 percent of Czechoslovak cargo moves by that this figure is a maximum average and that averages less than one-fourth of a liner's - 17 - S-E-C-R-E-T Declassified in Part - Sanitized Copy Approved for Release 2013/08/22: CIA-RDP79R01141A001500190002-2 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 R Next 2 Page(s) In Document Denied Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 50X1 Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2 SECRET SECRET Declassified in Part - Sanitized Copy Approved for Release 2013/08/22 : CIA-RDP79R01141A001500190002-2