ECONOMIC; SOCIOLOGICAL; POLITICAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600150002-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: June 15, 2011
• Sequence Number: 2
• Publication Date: July 14, 1952
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
F
US OFFICIALS ONLY
CLASSIFICATION S"E-C-R-E T
CENTRAL'T1 % G&
CD NO.
DATE OF
INFORMATION 1951
SUBJECT Economic; Sociological; Political
7010 DDC00O0T [0010000 INIDD00TIDIL 00/0C"00 Ills NATI000I DIR1NIN
0't 000 011100 00Ifi00 WIT010 TCD MR0010N 00 00IDN000 OCT '0*
~. n. C.. 01 000 01.01 0N0001IAITO YtlN0N1001o0 00 TN. 00000A0100
DR 190 C00T00T0 Y0 001 0000th TD 00 000ONO01s1D 010000 I0 0RA
N101000 00 L400. 00000000l000 00 T010 0000 10 0000101SlO.
DATE DIST. I? Jul 1952
NO. OF PAGES 7
SUPPLEI TENT TO
REPORT NO.
THIS IS UNEVALUATED i 4FORMATION
50X1-HUM
50X1-HUM
SURVEY OF THE POLITICAL AND ECONOMIC SITUATION IN RUMANIA
DEVELOPMENT OF INDUSTRY
It is no longer possible to obtain precise facts or figures on Rumanian
induustry. Everything is expressed in percentages, which are open to all kinds
of interpretation. Official communiques often do not correspond with the
actual situation. This can be explained easily, for, when unsatisfactory re-
sults are obtained, the figures are simply falsified. It is not admissible
for a regime which applies the discoveries of the USSR to suffer reverses.
The Five-Year Plan provides for large investments in the heavy electrical,
and chemical industries. The plan has been modified many times. The nature
and volume of products rc.quired of industry have not been definitely fixed.
The investment plan provided 350 billion lei to cover the 5 years. However,
spending has been much more rapid than was foreseen-St-first. Heavy industry
was given a very large share of the fund, to the detriment of other sectors
of industry. In 1951, heavy industry was granted 35 billion lei out of a:to-
tal of 100 billion, and will receive almost 40 percent of the 130 billion lei
marked for 1952.
Classified information which the source possesses indicates that the main
-z. in -t--- :-ii br centered an the building of blast furnaces,
e11 Vi'YY
electric furnaces, and Siemens-Kart:.n furnaces. This is being done to assure
an increase in the production of iron and steel at Resita Hunedoara, Targo-
viste, Ploesti, Bacau, Roman, and at enterprises such as the "Lea Vss:-wa
Fabrics (Astra Vagone Railroad Car Plant), the Steagul Rosu Uzina (Steagal
Rosu Railroad Car Plant), the 23 August Uzina (2ad August Steel Plant), the
- 1 -
COU OL/B OARICTIAI 0111
CLASSIFICATION a sC-R-!?
Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
r d uipma Plant Steel
atathheaPaogresul-tTzRina (PEroogresul Ra lroRaod Equip-
road Equipment t Plant),
Great efforts have been made recently to increase the capacity of smelt-
t of heavy industry is
l
opmen
ing and assembly plants. The accelerated deve
being carried out for a possible future vast rear nt program. The exist-
ing armament and ammunition factories formerly tried to remain in operation
by producing civilian goods; however, since 2.950, they have refused nonmili-
tary orders and are wcrking at capacity.
The industrialization campaign has had concrete results which are apparent
tb New products, ball bearings, machine tools of medium size, a
es
oo
n
l msc3a
tu
u
uvi t
b
e
ra
l
new type of caterpillar tractor, new agric
se~
is a
en. There
m industry y
l
t
be
eu
ro
tools, and spare parts for the pe
s installations.
i
tendency to produce not only spare parts, but entire Today, rotating ovens for cement factories, installations for the manufacture
of sugar, soap factories, petroleum equipment, thermal-electric stations, and
The price of domestically produced machinery is 11.'-15 times that of modern
For example, an IAR
ountry
i
gn c
.
equipment of good quality produced in a fore
tractor, produced by Sovromtractor in Stalin costs 3.5 million le., The plant,
employing 4,000 workers, has turned out 2,500 tractors in the past years.
These tractors are based on an old Soviet model and must be repaired every 400
hours.
To improve the poor quality of new products and their high production cost,
the Five-Year Plan provided for specialization of factories and mass prduc-
tion methods. However, the Five-Year Plan has not actually been
in final form, probably because of orders and counterorders from Moscow. The
result is that each enterprise has'a great diversity of products. The plants
are regularly required to introduce new items or the manufacture of spare
parts s prneeded by otber event enterprises from improving their production planns~ fac-
tors reducing
operating costs.
EXPLOITATION OF RUMAFiIA BY THE USSR
Soviet participation in the Rumanian economy taken various fotrhmse
Soviets there is the payment large part of Rumanian production. At
Soviets as as a pretext to take gratis a .are dopaiazs. Latex, they were expressed
first these products were computed in 1938
in rubles, which in turn were converted into lei. In the conversion, the value
of the ruble was raised far above its real value. ='hus.Humanian industry was
credited with less and less value for its lroducts, so that at present Rumanian
goods going to the USSR is paid for at a figure which does not take into ac-
count the real cost of manufacture. The ruble varied from 80 to 120 lei for
heavy industrial products going to the USSR while the official value was 55 lei
to the ruble.
The value of the 1938 dollar used as a base price was comparatively low.
The various fluctuations of the value of the ruble and of the lei have brought
the tote] value of reparations paid by Rumania to very new eight times the sum
of the 300 million dollars specified by the peace treaty.
3_E-C-R B-T
Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
r
50X1-HUM
Through the creation of the Sovroms (Soviet-Buaanian Enterprises) the So-
viets have secured a complete monopoly over many phaaea of the ftwanian economy.
maritime and river transport air and road transport
h So h
romtrol; steel
timber exploitation through Sovromlemn; pe yr tractor psteul-
through Sovrommetal, the chemical industry trough o through
tion through Sovromtractor; insurance through Sovromasiguxars; export through
Sovromexport; and others. There are a great many other mixed enterprises or
entirely Soviet enterprises of smaller size.
It is also important to mention that an important part of the production
Rnationalized
y; =other part ofotheeprUSR on oductionhisbused for sup-
port of the Sovroms or Soviet enterprises. In the food products, textile, and
y N? ..,x..ctto! aabelaA for domestic consume
leather rods strica a lvxgex gax'c. at tion is actually used to cover the needs of Soviet troops, specialists, coun-
selors, directors, technic'.ans, and officials quartered in Rumania. These are
becoming increasingly numerous. Authorities have taken measures to house ap-
graximately 20,000 Soviet technicians and officials in Bucharest for the winter
of 1951 - 1952.
The salaries of all Soviet citizens working in Rumania are much higher
than those of Rumanians performing the same work. In addition, the Soviets re-
ceive large sums which Moscow requires Rumania to pay them for "technical as-
sistance," for propaganda, and for instructional and cultural material.
Nonofficial economic circles estimate that two thirds of the entire Ru-
manian national production goes to the Soviets. This explains the extremely
lc"v standard of living of the majority of the people and the slowness in re-
covering from war damage.
All former petroleum companies which were tinder foreign control were com-
bined into Sovrompetrol. Small Rumanian companies were nationalized and fused
into the Muntenia and Moldova enterprises. Almost 80 percent of the petroleum
area is in the hands of Sovrompetrol and almost the entire production is con-
trolled by Sovrompetrol. Representatives of Rumanian enterprises are r eliity,
consulted at important conferences. All decisions concerning quantity,
and terms of delivery of products in both light and heavy industry are dis-
cussed with Soviet specialists or Rumanian specialists employed by the SovrCe/1.
While petroleum areas and production are coming more and more under Soviet
control through Sovrompetrol, geological and exploratory drilling are done by
Rumanian enterprises. In this way, expenses for exploration of new areas and
the discovery of new wells are borne by the Rumanian state while the benefits
of new discoveries go to the mixed enterprises.
Gbe-rgiu-Des declared in one of his 1951 speeches that the tonnage of Ru-
manian petroleum pr?odu.-tion jr. 1950 was almost 50 percent higher than that of
1938 and had reached a new high for Rumania. Rmanian specialists, boeever,
procureDespite
estimate the 1950 production
is to boranannin4.5 aillion div duej totons.
h
acre than 2-3f
high groduct uctioa, it to difficult L~
liters of petrol a week. Petrol is 75 lei per liter for the ordinary citizen,
liter -
27-28 lei for ministries and state institutions, and 3.5 lei per
-3-
s -c s_r
Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
S-E-?C-R-E-T
Since December 1947, all measures of the Rumanian government have aimed
at the introduction of Soviet organizations and Institutions into Rumeania. As
a result the RPR (Rumanian People's Republic) is the satellite which most re-
sembles the republics of the USSR. In order to guarantee the strict applica-
tion of Communist principles, each ministry of the USSR has one or more cow-
s,elors in its Rumanian counterpart. it is coaason to see notes and resolutions
written in Russian on documents coming from Rumanian factories and institutions.
These Soviet counselors always participate in important meetings at the various
ministries The counselor speaks immediately after the Rumanian minister. At
the end of the conference, it is customary for the Soviet expert who partici-
pated'?
_d nd a .ni e t h!! new d rect4vPa discussed- This uresentation
constitutes a formal order- For example, a Soviet counselor was present at
the conference of directors of enterprises held in summer 1951 at the Ministry
of Industry in Bucharest. At this conference the ministry presented its re-
port on results of the plan for the first half of 1951., After the report, the
technical director of the ministry criticized severely most of the individual
enterprises. The assistant ministers also participated. Then the Soviet coun-
selor spoke, emphasizing the fact that directors and workers repeatedly showed
a serious lack of comprehension of economic problems. He declared that a
purely quantitative fulfillment of planned production did not represent success-
ful achievement when other economic plane were not fulfilled. According to
him, it was also necessary to reduce the revolving fund, the production cost,
amortization, and other items. The counselor then stated in an energetic man-
ner that the breaking of economic laws was no longer permissible. Any director
who had not taken measures to correct previous mistakes in this regard by the
end of 1951 would be replaced.
When Soviet counselors are unable to solve problems they forward records
to Moscow, where they are handled by the Rumania section of the appropriate
ministry- Moscow solves not cnly important questions such as nationalization
of industries and real estate, monetary reform, the establishment of plan fig-
ures, and other items, but also grants or refuses permission for sports teams
to participate in foreign countries.
The intellectual life of the RPR is also being controlle-1 by the USSR.
There is a large volume of Soviet books, films, and plays. Rumanian authors
are required to find inspiration in Soviet mcniels. Censorship of books is very.
strict. Rumanian technical books are required to contain quotations from So-
viet sources, even if these are not applicable.
It is expected that within a short time no Rumanian will be able to occupy
a position of importance without a knowledge of the Russian language. It is
now no longer possible to become a teacher or university professor without a
good knowledge of Russian. During 1951, there was an increase in propaganda
for Russian-language courses to be organized in schools, ministries, and state
institutions. Those who refuse to participate in courses risk the loss of em-
ployment. All new :school manuals lack any mention Rumanian traditions of Latin
origin. This has been replaced by an amalgam of Slavic-Bolshevik culture which
has no direct relationship with the Rumanian nation. Every new text has a
picture of Stalin on the first page and glorifies everything Soviet. As a con-
sequ nee of sntch mese?.:rea, the younger generations will be deprived of all na-
tional conscience. The purpose of all the numerous reforms in all fields of
activity is to pave the way for the annexation of the RPR by the USSR.
S-E-C-R-E T
50X1-HUM
Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
WARD OF LIVING
A nonskilled worker iti the BFR receives 18-25 lei per hour or 4,000-5,00O
lei per month. A skilled worker can earn a base pay of up to hO lei per hour,
plus an additional 50-100 percent, for a maximum of 12,000-17,000 lei per
month, The average is 10,000-11,000 let per month.
Administrative officials receive 6,000-9000 lei per month, technicians
8,000-20,000 lei per month, and certain specialists can attain 24,000.30,00
political attitudes can earn bonuses of ++0-50 percent or raezr case pey evc,y
academy or other institutes all at the same time. Their income is further in-
.. __._,_- __ __
for works . h ch Hear
erpr se
their name. This may bring them from 300,000 to several million lei.
Members of the presidium, presidents of large state institutes, and other
leading figures receive more than half a million lei per month.
In addition to their salaries and stipends, state officials have other
advantages, They are provided with villas, cars, and servants without cost.
They may obtain supplies at special cooperatives which sell the best products
obtainable in unlimited quantities at nominal prices. Thus officials earn on
an average of 20 times as much as an unskilled worker, while high government
functionaries earn almost 100 iimee the average salary of the unskilled worker
and also enjoying numerous other privileges. In contrast, the General Con-
federation of Labor can supply scarcely 8 percent of the workers with beds.
The price of consumers' goods brings these differecces in salary into
sharp prominence. Black bread costs 40 lei per kilogram. A ration card en-
titlcs the 1_divid?al to 350-550 ama per day. White bread, which costs 72
lei per kilogram, or 2-5 hours labor per worker, is not rationed. Meat costs
120 lei per kilogram. Ration cards provide for 250 grams per week. On the
free market some meats cost 200-250 lei per kilogram, the equivalent of 6-11
hours of work. One kilogram of pork is 400 lei. A Kilogram of butter is sold
officially at 400 lei. Each person is entitled to 200 grams per week. Sugar
is sold At 75 lei per kilcgrem and rationed at 250-500 kilograms per person
per month. Sugar can be bought on the black market for 200-300 lei.
A pair of shoes that can be bought once a year with special coupons costs
l,4O0-1,800 lei per pair, while on the free market they cost 4,000-6,000 lei
per pair. A man's suit or woman's dress of modest quality may be purchased
once a year and costs 8,000-12,000. A good quality garment of Rumanian or
Czechoslovak manufacture costs 30,000 lei, A pack of cigarettes costs 36-120
lei and a cake costs 40-100 lei.
For the farmer who has more than 1.5 bectarec, life is extremely expensive,
since he does not receive any ration cards and he can sell hia_products only
through the cooperative of his area. He is required to sell his wheat at 5
lei per ia.,logram, OUT. must pd-.T- 100 lei per 'kilos: a= for uh_ite flour , Ite is re-
quired to sell all of his vine at 20-30 lei per liter, and he buys it back
~- at Ian-k.00 lei rer liter. Since he no Ionizer is permitted
Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
S-E-C-R-B-T
to make his own brandy, he has to sell his plans at 10 lei per kilogram and
pays 400 lei per kilogram for brandy. Because the local cooperative is so
poorly supplied, he is forced to sell his surplus food on the black market in
Sea Canal.
State employees, off icials,wurkers, and collective farmers pay taxes which
vary from b to 20 percent, s:cording to earnings. Almost all are members of a
union, to which they must pay one percent of the monthly salary. Many employees
must subscribe to Scanteis, the official party organ, and often to other news-
~
General ' d?
pn.pera such as Vista Sindicala, official organ of the .a CO-e%e=6`" ~a.,tc of
-
-.?
a.....-. , ...
.. . . -.-l _- rs wh4o'M s n
misali9*, women worrcers, as we" sn wti, 1~,,.0~ .,~...al.,.,,...- ..~_-_ co ------ntein - ---- date-
food distribution and the weekly newspaper of the place of employment.
All small administrative units, such as offices and shop sections, have
union representatives who sell a series of propaganda pamphlets which appear
every 2 weeks and cost 15-60 lei each. The representatives cell tickets sup-
porting propaganda work and collect for aid to Korea and aid for Greek chil-
dren. These combined expenses total 500-1,000 lei per month, or more than 10
percent of a '.ow wage.
In addition, the price of membership in the canteen costs approximately
1,000 lei per month for one meal a day per person. Thus nonskilled workers,
who represent two thirds of the total, have scarcely more than 100 lei per
day for the support of their families.
Despite the constitutional guarantees so often claimed by Communist propa-
ganda, the majority of the citizens of the RPR have no assurance that their
rights will be respected. There have been mass deportations of undestrabiea
from bcrder areas. These people were transported by freight car to empty
fields on the Baragan plains near Braila to miserable villages which became
veritable extermination camps.
Arbitrary arrests are the order of the day. For example, five generals
who bear the same name were arrested and held for several mon:hs until the
identity of the correct person could be established. There are mass arrests
of all the clients of a physician in order to identify the seller of illegal
foreign medicine. A simple remark on repressive measures or on abuses com-
mitted by Soviets can lead to 6 months' imprisonment. When s rei.ort stated
that Soviet raw materials and products were of very poor quality and were the
cause of numerous accidents, the entire enterprise management and all the
ministerial inspectors who bad signed the report were arrested. The source
knows personally that there were several cases in whicii physicians were arrested
for declaring that fatalities bad occurred in their hospitals beca,.ise of the
poor quality of Soviet medicines.
No one is sure that he will. remain at his job or In his own home. All
persons are subject to 48-hour transfer. This has broken up many homes and
separated many families. Those who are not permitted to have gainful employ-
ment because of social origin are condemned by the regime and become pariahs.
,. sent to a-ll provincial cities and remmin without food, clothing or
fuel cards.
anti-R-D-i
Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
0
 Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2
The receipt of a pac)mage or. a letter from a foreign country is a crime-
The, relatives of persons wbe fled fsror the country tare been asrxested and
shipped to work on the Dnaube-Black Sea Canal project.
The repressive measures are carried out through the Militia, V home con-
duct is so brutal and inhumn that the entry of a silitiaean into a house or
off ice causes gteai ` -swor. As a result of the acts of team committed by the
Militia, there has been an incra~.ase in the number of murders of remilitie en in
all parts of the country.
At the end of 1951, there will be ?00, -600,000 smen under arms, of whitb
ir0,000 will be in the Militia, 150,000 in militarized work units, and 360,0
man of the normal 1950, 1951, and 1952 drsfts. In' addition, men of the 1945 -
1950 classes who were psrev~ioussy rejected for reeearan cs. tb i5
are new being accepted.
Sanitized Copy Approved for Release 2011/06/16: CIA-RDP80-00809A000600150002-2