CHANGE PROFIT DISTRIBUTION IN HUNGARIAN PRODUCERS' COOPERATIVES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700020098-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 23, 2011
• Sequence Number: 98
• Publication Date: November 2, 1951
• Content Type: REPORT

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N?n[ I e
rlR fi+p.~f~R
REPORT
CD NO.
DATE OF
1951
INFORMATION
NO. OF PAGES 3
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
CHANGE PROFIT DISTRIBUTION IN HUNGARIAN PRODUCERS' COOPERATIVES
The Hungarian Council nto the the
No 1,022/1951 (VII. 8) 8), , relative
cooperative groups type III.
With the help of the Hungarian Workers' Party, the producers' coopera-
tives are harvesting a plentiful grain crop and may also expect excellent re-
sults in other agricultural products, as well as from animal husbandry. The
members' continued welfare will be assured if the producers' cooperatives will
make adequate use of their large earnings, add to the assets of the coopera-
tives, and distribute the profits -- in kind as well as in cash -- among the
The Council of Ministers finds that the present system of profits dis-
tribution by the producers' cooperatives does not completely satisfy the above
requirements, because thus far profits have been calculated on a cash basis,
and distribution in kind has not been made in proportion to work performed.
This defect has been repeatedly debated in the producers' cooperatives.
The Council of Ministers has now resolved to make it mandatory for pro-
ducers' cooperatives to adopt the method of profit dis`_::ibution which has been
employed in the Soviet kolkhozes for many years. this
shall be distributed among the members of producers' n
well as in cash, in proportion to work performed. Distribution of profits by
in.ependent producers' cooperatives and producers' cooperative igrooupsatypeaIII
(hereinafter, cooperatives) beginning with the 1950 - 1951 gxi
will be governed by the following rules;
STAT
After the payment of obligations due to the state and appropriations for
the reserve fund, the remaining amount of products must be distributed among
the members of the cooperative in the ratio of work units earned. All commo-
dities which the cooperative receives in exchange for its own products (sugar,
rice, cotton goods, oil, etc.) must likewise be distributed according to work
units earned. Distributions in kind will be made as follows:
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CLASSIFICATION CONFIDENTIAL
SECURITY INFORMATION
CENTRAL INTELLIGENCE AGENCY
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS
COUNTRY
SUBJECT
HOW
PUBLISHED
WHERE
PUBLISHED
Hungary
Economic - Agriculture, producers' coopera-
ACT
THIS OOCUNINT CONTAINS INFORMATION AFFECTING THE NATIONAL OITINII
ACT
of yHK UNITED
IT{ TRANSMISSION OR THE RIVIATION
U. I. C.. 71 AND SD. AT3 AY[NDI D. T F
OF PTO CONTENTS IM ANT MANN IR TO AN UNAUTHORII[0 PERSON IS PRO?
NI{IT[D ET LAW. REPRODUCTION OF TNIS TORN IS PRONIRIT[0.
SOURCE Magyar Kozlony.
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CO W9DENTiA1
1. The foremost duty of the cooperative is to satisfy its delivery quotas
in all agricultural and animal products. The cooperative must also make payments
in kind to the machine stations and satisfy all obligations which it has assumed
under production contracts.
2. Seeds selected from the best crops must be placed in reserve for the fol-
lowing year, with-due regard to an increase in arable land. Fibrous as well
as grain fodder shall likewise be held in reserve in sufficient quantity for the
livestock which will be increased according to the cooperative's plan. In addi-
tion, 5 percent of the bread grain and potato crops may be placed in reserve to
meet unforeseen requirements.
3. After the cooperative's obligations to the state have been fulfilled
and reserves provided for, the membership meeting may authorize sale of part of
the remaining products to the state or in the open market.
4. All products remaining after fulfillment of obligations, reserves, and
free sale must be distributed among the members of the cooperative on the basis
of work units earned during the year. The work units must be totaled on 1 Octo-
ber.
In case production results exceed the planned figures, the president of
the cooperative, as well as the brigade and labor group leaders and members,
may be allotted a bonus in kind. The various products shall be distributed
among the members of the cooperative on the following basis:
1. Bread grain rations must be advanced to all members and their dependents
who have earned a minimum of 50 work units by threshing time. An exception to
this rule may be made in case a member was prevented by illness or old age from
earning 50 work units. Rations must be withheld from able-bodied dependents who
are working elsewhere than in the cooperative or did not participate in the
common work during the summer.
In addition to rations, the cooperative must distribute, in the ratio
of work units earned, an amount of grain equal to that sold to the state in
excess of mandatory deliveries.
2. A minimum of 15 percent and a maximum of 30 percent -- according to
the resolution of the membership meeting --'of the various kinds of fodder
(barley, oats, corn, hay, straw, etc.) shall be distributed in kind in the
ratio or work units earned. Half the fodder to be distributed must be advanced
to members at the harvest and the other half is due after 1 October. Fodder
distribution must be made also to members who do not yet own livestock, thereby
enabling them-to acquire livestock of their own.
3. Other products (potatoes, grapes, fruits, wine, etc.) must be distrib-
uted among the members in the ratio of work units earned, after the obliga-
tions of the cooperative have been fulfilled. Commodities received by the co-
operative in exchange for its own products. (rice, sugar cotton goods, oil, etc.)
shall be distributed among the members likewise in the ratio of work units
earned. Vegetables and early fruits may be sold for cash only to members who
are in need of these products.
4. The livestock owned by the cooperative and the animal products derived
from this livestock cannot.be distributed among the members. The livestock of
the cooperative may, however, be used to promote livestock breeding by members.
Members may receive such help only in case they are in need of it and participate
systematically in the common work. Animals and animal products thus allotted to
members shall be paid for at full market price.
CONFIDENTIAL
$LNTtA I
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COK101TW.
II
The cooperatives' cash in..ome shall be distributed among the members as
follows:
1. The cooperatives must first satisfy their monetary obligations to the
state (taxes, debts due, machine station fees, etc.) as well as to other
m on
creditors. Particular
pattention must be reviously owned by paid
members tandcofpinstallmentstduep
wennt of rent for land p Y
the price of agricultural equipment contributed by members.
2. Twenty percent of the cash income should be added to the cooperatives'
reserve fund. The reserve fund shall be employed for the purchase of livestock
machines, and equipment and for the construction of
farm sbuildings, Twoof suppor
percent of the cash income may be
t:!e aged and sick and for recreation rooms.
3. The remaining cash shall be distributed among members
of the heoendaofve's
the year in the ratio of work units earned. Thirty percent cash income may be advanced to members during the year.
III
The Ministers of Agriculture and of Food Distribution are directed to take
proper steps to introduce the new system of profit distribution by the coopera-
tives. The Minister of Agriculture shall cause the cooperatives to make ap-
propriate changes in their statutes.
fhe-decree is signed by Matyas Rakosi, Deputy President of the Council of
Ministers. Ordinarily, decrees of the Council of Ministers are signed by Istvan
Dobi, President)
-3 -
CONFIDENTIAL
CONI1~tIA~-
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