SOVIET UNION EASTERN EUROPE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A002000200002-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 12, 2016
• Document Release Date: November 27, 2001
• Sequence Number: 2
• Publication Date: October 24, 1975
• Content Type: NOTES

Approved For Release 2002/01/03 : CIA-RDP79T00865AO02000200002-7
Secret
,~-?OTITT KDUR~$o
Soviet Union
Eastern Europe
Secret
October 24, 1975
No. 0768/75
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Warning Notice
Sensitive Intelligence Sources and Methods Involved
(WNINTEL)
NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
Classified by 010725
Exempt from general declassification schedule
of E.O. 11652, exemption category:
? 5B(1), (2), and (3)
Automatically declassified on:
Date Impossible to Determine
DISSEMINATION CONTROL ABBREVIATIONS
NOFORN- Not Releasable to Foreign Nationals
NOCONTRACT- Not Releasable to Contractors or
Contractor/Consultants
PROPIN- Caution-Proprietary Information Involved
USIBONLY- USIB Departments Only
ORCON- Dissemination and Extraction of Information
Controlled by Originator
REL... - This Information has been Authorized for
Release to ...
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This publication is prepared for regional specialists in the Washington com-
munity by the USSR - Eastern Europe Division, Office of Current Intel-
ligence, with occasional contributions from other offices within the
Directorate of Intelligence. Comments and queries are welcome. They should
be directed to the authors of the individual articles.
CONTENTS
October 24, 1975
Poland: Changes in Gierek's
Economic Team . . . . . . . . . . . . . . . . . 1
Hungary: Premier Lazar Visits Moscow. . . . . . 3
US-USSR: Soviet Interest in Machine
Tooling for Wide-Body Aircraft . . . . . . . . 4
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Poland; Changes in Gierek's Economic Team
Mieczyslaw Jagielski, who has never fully re-
covered from a severe heart attack that he reportedly
suffered last May, has been replaced as chief of Po-
land's Planning Commission by Tadeusz Wrzaszczyk,
former minister of machine industry.
The announcement of Jagielski's removal was
coupled with the word that he will retain his post
as vice premier. This was apparently an attempt to
squelch speculation Jagielski is paying a price for
Poland's current economic problems. Line ministries
will presumably be the first scapegoats, and they
have not yet been fingered. Past reports have touted
Jagielski for his economic expertise, and he was at
one time the logical choice to succeed Premier
Jaroszewicz when he retired.
The US embassy in Warsaw has described the 43-
year-old Wrzaszczyk as the leading "Americanizer"
in Poland's industrial modernization program and
"the man who symbolizes party leader Gierek's com-
mitment to sharply increased trade with the US."
His elevation to become both the planning chief and
a vice premier indicates that this policy will be
continued. The selection of Wrzaszczyk assumes par-
ticular importance in view of recent reports that
Soviet Premier Kosygin accused Gierek in August of
orienting his policies too much toward the West.
Wrzaszczyk's promotion will undercut some op-
position in the State Planning Commission to Gierek's
policy of accelerating trade with the West. Earlier
this year, planning officials argued for a reduction
in import growth to curb Poland's ballooning hard-
currency debt. Adoption of such a policy by the
regime would hinder Gierek's drive to modernize in-
dustry and to increase the availability of Western
goods to satisfy rapidly rising consumer demand.
October 24, 1975
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During a visit last June to the US, Wrzaszczyk,
a technocrat, discussed the purchase of nearly two
billion dollars worth of machinery and equipment.
with US businessmen and Export Import Bank officials.
Wrzaszczyk's former ministry is in the final stages
of negotiations on a $600-million General Motors
proposal for a plant to produce delivery vans; a $250
million Swindell-Kessler bid on the Statowa Wola
forge and foundry; a $150-million General Electric
proposal for a bar mill at Huta Nowotko; a $110-
million RCA proposal for color picture tube tech-
nology; and Rockwell and Grumman proposals for co-
operative production of crop-dusting aircraft and
aircraft engines. (SECRET)
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Hungry; Premier Lazar Visits Moscow
Bilateral economic issues and European security
matters apparently headed the agenda of Hungarian
Premier Lazar's official talks in Moscow from Octo-
ber 21 to 23.
The main economic topics, according to Hungar-
ian press reporting, were energy, machine production,
and agricultural cooperation. Budapest appears to
be seeking assurances on long-term raw material de-
liveries from the Soviet Union and Moscow's support
of Hungarian plans to restructure its machine in-
dustry. One Hungarian press item suggests Budapest
wants to swap increased agricultural deliveries for
Soviet raw materials, machinery, and equipment.
Progress in the economic talks was limited,
although the two sides did sign a very modest agri-
cultural agreement under which Hungary will export
almost three million dollar's worth of fruit and
vegetables to the USSR over the next 15 years.
Soviet reporting on the visit concentrates on
discussions of the European political situation in
the aftermath of the Helsinki accord. The Soviet
news agency, Tass, says that special attention was
paid to "possible concerted measures to consolidate
and implement" the decisions taken at Helsinki.
This formulation suggests either that Hungary is
out in front of Moscow on future measures to be
taken or that the Soviets are asking Budapest to
float some proposal.
The visit also satisfied important protocol
requirements, This was Lazar's first official trek
to Moscow since he succeeded Jeno Fock as govern-
ment head last May. Budapest and Moscow probably
saw the need for a Soviet trip before November,
when Lazar will visit Italy. (CONFIDENTIAL)
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US-USSR: Soviet Interest in Machine
Tooling for Wide-Body Aircraft
The Soviets have reportedly decided not to
purchase either US or West European wide-bodied
aircraft, but to produce an aircraft of their own
design. Last week, officials of the Soviet State
Committee for Science and Technology asked a US
business representative in Moscow for assistance
in locating US manufacturers of machinery used in
aircraft production. The Soviet officials are aware
of the potential licensing difficulties. Although
the officials said they were awaiting a "green
light" from committee Deputy Chairman Gvishiani
before making any formal approach to a US firm,
they would not have shown interest without Gvishi-
ani's approval.
The acquisition of machine tools and tech-
nology for the production of wide-body aircraft
has been the focus of Soviet talks with US aircraft
manufacturers for the past four years. At first,
the Soviets discussed an outright purchase of wide-
body aircraft. As discussions progressed, however,
the USSR tied aircraft purchases to US assistance
in fitting out an aircraft manufacturing facility
in the USSR. When US officials refused, the Soviets
dropped the discussions of aircraft purchases.
(CONFIDENTIAL)
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October 24, 1975
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Secret
Secret
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