NORTH KOREAN INDUSTRY EXPANDING WITH USSR ASSISTANCE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600330769-2
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: August 26, 2011
• Sequence Number: 769
• Publication Date: August 16, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/08/31: CIA-RDP80-00809A000600330769-2
HOW
PUBLISHED
WHERE
PUBLISHED
DATE
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY North Korea
SUBJECT Economic - Industrial
M1
PUBLISHED
LANGUAGE
CLASSIFICATION CONFIDENTIA CONFIDENTIA
Oct 1949 - May 1950
Korean; Russian
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES WITHIN THE MUSING OF ESPIONAGE ACT 50
M. S. C.. II AND St. AS ANEN0E0. ITS TRANINIISION ON THE N00ELAT1ON ANT WARNER TO AN
MAUTNIZKD
MI ITHU NYCONTENTS
LAW. I NIP000UCTION OF THIS FORM IS PNONGNITEO. IS -ROJ
DATE OF
INFORMATION 1949 - 1950
DATE DIST. /b'Aug 1950
NO. OF PAGES 4
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
NORTH KOREAN INDUSTRY EXPANDING
WITH USSR ASSISTANCE
AIM TO ECLIPSE JAP MAXIMUM -- Sunken TTongsin, Oct 49
The total funds appropriated for development of the state-operated basic
industries under the Two-Year People's Economic Program for 1949-50 in the Dem-
ocratic People's Republic of Korea are as follows: (in thousand won) 1949 --
3,495,003; 1950 -- 3,709,017.
A break-down of these amounts by industry follows:
1949
1970
Electrical
574,560
567,070
Coal
424,670
512,670
Mining
410,430
487,380
Metal
547,480
453,570
.Machine (including shipbuilding)
419,000
688,000
Chemical
580,900
517,640
Building construction
124,970
79,550
Light industry
412,750
403,130
The Two-Year Program has two main objectives: (1) to restore maximum work
capacities of the existing industrial facilities by repairs and renovations,
(2) to build new industrial facilities so that by 1950, when the program is to
be completed, the aggregate production capacity of the above industries would
be 194.1 percent of that of 1948 and 33.2 percent above the maximum produc,ion
'level attained by the Japs4ese in North Korea in 1944.
COIF DE TIAL
STATE NAVY
ARMY MR
NSRB
FBI
CONFIDENTIAL
DISTRIBUTION
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CONFIDENTIAL
Electric Power and Manufacturing Industry
The development of the people's economy in North Korea has increased
rapidly the demand for electricity, power-driven machines and electric ap-
To attain mazimum production of electric power, over 80 major im-
pliances.
provement projects were undertaken during 1949, including: repair of Pujon
Gang (R) generating station at Hamgyong Namdo; construction of Tongno Gang
generating station at P'yongan Pukto; reconstruction of Puryong No 2 generat-
ih g station at'Hamgyong Pukto;-construction of Sup'ung dam at P'yongan Pukto;
construction of Kangso Electric Appliance Factory at P'yongan Namdo.
At a cost of 200 million won, 810,000 workers, 30,000 cubic meters of ce-
ment, and 30,000 cubic meters of stone were used for the construction of a
dam apron for the Sup'ung generating station. The work was completed-on 16
May 1949. Reconstruction of Puryong No 2 generating station, started in March
1949) vas.73 percent completed by July 1949; a 6,000 kilowatt-generator is ex-
pected to be in operation by 1950.
The Kangso Electrical Appliances plant will be the largest of its kind in
Korea when completed.. This plant will manufacture electric?motors, transform-
ers, switches, and scores of other items. The work is now progressing for
construction of 13 smaller plants including a metal-rolling mill, a large-size
transformer manufacturing plant, and a tooling-machines plant. The trans-
former manufacturing plant was nearly completed in July 1949.
For other electrical industry projects a total of one million man-hours
and 500 million won will be expended.
Mining Industry
In order to increase coal production, over 300 basic improvement projects
were undertaken, including installation of coal-carrier tracks, increasing the
number of pneumatic tools, construction of coal grading yards etc.
Over 340 improvement projects are in progress at 25 ore mines, including
mines at:
Sunghwa (Songch'on, P'yongan Namdo)
Manp'o ?(Kangge, Hamgyong Namdo)
Kosong (Kangwon Do)
Multong, Koksan, Sinyon, Ch'angdo, Hasong, Chaeryong, (Hwanghae Do)
Nakyon fwanghae Do]
Ch'onma [?J
Hamhung, Komdok, Chungtaeni, Tanch'on (Hamgyong Namdo)
Musan (Hamgyong Pukto)
Taeson, Sunan (P'yongyang Namdo)
The Presidium of the People's Republic has appropriated 897,810,000 won
for production of iron ore, sulphide, tungsten, lead, gold, silver, copper,
zinc, and nickel, for the Two-Year Program.
CO FtDEtTIAL
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COiF!OfNTIAL
Metal Industry
Over 120 basic construction projects were undertaken during 1949. The
most important projects include repairing the 350-ton blast furnace of the
Hwanghae Iron Works in.Hwanghae Do, and the 500-ton blast furnace of the Ch'-
ongjir. Iron Works in Hamgyong Pukto, as well as construction of new zinc plants
in Munp'yong, Hamgyong Namdo. Also included are the construction of three
small-size and one medium-size spring manufacturing plants, one sheet-metal
manufacturing plant, and one rolling-stock plant in Chinnamp'o, P'yongan Pukto.
At the Hwanghai Iron Works, 14 major projects were undertaken in 1949.
Restoration of the 350-ton blast furnace, the most important project, was
completed on 17 July 1949, with 18,000 man-hours and 1,200 tons of bricks
expended. Other projects include repairing a coke furnace, construction of
two new open-hearth furnaces, a small and a medium plant, and a sheet-metal
plant. The output of pig iron at the Hwanghae Iron Works during 1949, increased
to 188.9 percent of that of 1948.
At the Ch'ongjin Iron Works, repairs for the 500-ton blast furnace are.
scheduled to be completed by December 1949. Repair of 57 units of coke fur-
naces was completed in August.1949. Construction of the fire-proof materials
manufacturing plant is 95 percent complete.
At the,Songjin Steel Works in Hamgyong Pukto, construction of the wire-
cable manufacturing plant is now 72 percent complete. Construction of the
rolling-stock mill at the Kangson Steel Works in Hamgyong Namdo is scheduled
to be completed in December 1949.
Machinery Industry
Some 130 expansion and improvement projects were undertaken during 1949
for the machine industry. Of these, the Central Machine Works undertook nine
major projects, including construction of an operation plant, a casting plant,
and a wood-patbn plant, etc. The Central Machine Works specializes in manu-
facturing of tooling machines.
The Yongsong Machine Works bear Hamhung, Hamgyong Namdo7 undertook 14
projects including construction of a 1,000-ton press plant, and seven other
new plants including iron and steel casting plants. All these projects are
expected to be completed by the end of 1949.
The Songjin Machine Manufacturing Plant in Hamgyong Pukto specializes in
manufacturing stone crushing machinery; the Munch'on Machine Manufacturing
Plant in Hamgyong Namdo, mining machines; Pukchung Machine Plant, rolling-stock;
and the Sunch'on Machine Plant in P'yongan Namdo, meters and gauges. The Sunch'-
on Machine Plant has a total floor space of 66,000 square meters.
Chemical Industry
Over 100 basic construction projects were undertaken for the chemical in-
dustry during 1949. Among these, the most important was the construction of
an ammonium. sulphate manufacturing plant at the Hungnam Fertilizer Plant, at
a cost of 170 million von. This work began in January 1949, and with 25 other
projects, it is scheduled to be completed by July 1949.
The Ponkung Chemical-Plant completed construction of a liquid chlorine
plant in July 1949. The Ch'ongsu Chemical Plant also accomplished good results
during 1949. The Namp'o Soda Factory will produce sodium hydroxide and sodium
carbonate on completion of construction in March 1950.
The Aoji Synthetic Petroleum Plant in Hamgyong Pukto is expected to be in
operation by October 1949. The operation of this plant would be of tremendous
significance for the People's Republic, which suffers from a shortage of liquid
-3-
dONFIDENT:iAL
.C O~FIof NTMML
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$uilding Materials
Over 70 basic improvement projects were undertaken during 1949 for the
cement and other building materials industries.
The Haeju Cement Factory in Hwanghae Do undertook nine projects during
1949, including the installation of three additional compressors, construc-
tion of a lime-drying furnace, and an electric transformer station. The Komu-
san Cement Factory in Hamgyong Pukto recently installed a revolving furnace
having a 350-ton daily output capacity. This factory also installed new pul-
verizers, and completed six basic development projects during 1949.
The Sungho-ri Cement Factory in Hwanghae Do restored a dry process plant
in Junc 1949. The construction of the Namp'o Plate Glass Factory, started in
May 1948, was 88 percent complete as of 17 August 1949.
Shipbuilding
Construction of a 1,000-ton dock and a slip-way for 1,000-ton class vessels
is in progress at-the Wonsan Shipbuilding Yard.
USSR FURNISHES MACHINERY, MATERIALS, TECHNICIANS -- Vneshnyaya Torgovlya, May 50
A firm basis for a successful development of Russo-North Korean economic
relations was laid on 17 March 1949 when the Soviet Union and the Democratic
People's Republic of Korea signed the Russo-North Korean Economic and Cultural
Pact covering: (1) a trade and payments agreement providing for a substantial
increase in trade in 1949 and 1950, (2) an agreement providing for credit to
pay for Soviet goods supplied in excess of what was stipulated in the trade and
payments agreements (3) an agreement .,a technical aid to the People's Republic.
In accordance with the specified agreements, the Soviet Union supplied the
People's Republic with the machinery and materials required for the development
of industry and also sent technical specialists there to rebuild North Korean
industry, and rendered a great deal of assistance in planning new factories and
creating new branches of industry. Trade between the USSR and the People's Re-
public in 1949 was more than three and one half times of that of 1946. ?'
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