ORGANIZATION OF THE MINISTRY FOR THE METALLURGICAL AND MACHINE INDUSTRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A003600160002-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 10
• Document Creation Date: December 22, 2016
• Document Release Date: January 11, 2010
• Sequence Number: 2
• Publication Date: February 18, 1954
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
This Document contains information affecting the Na-
tional Defense of the United States, within the mean-
ing of Title 18, Sections 793 and 794, of the U.S. Code, as
amended. Its transmission or revelation of its contents
to or receipt by an unauthorized person is prohibited
by law. The reproduction of this form is prohibited.
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COUNTRY Hungary
SUBJECT Organization of the Ministry for DATE DI
STR. 18 Fe
LJ/~ I
bruary 1954
the'Metallurgical and Machine
Industries NO. OF PAGES 10
REQUIREMENT NO. RD 25X1
REFEREN
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIV
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
1. At the end of June 1953, the Hungarian Ministries for the General Engineering,
Medium Machine and Metallurgical Industries were merged to form one Ministry for
the Metallurgical and Machine Industries (III).
2. This ministry has its central headquarters at:
S"zabadsa ter 5-69 Budapest V.
Teleki P1 u. 21,, Budapest V.
Its subsidiary offices are ato
Arany .Tangs u. 259 Budapest V.
Gusev ut9a 25, Budapest V.
Teleki Pal u. 7, Budapest V.
a. the Ministry for Heavy Industry
(mines, chemical industry, power plants)
b.,, the Ministry for Light Industry
(including canning industry)
However, the MI may be concerned with undertakings falling under the Ministries
for Heavy and Light Industries in the sense that it is responsible for supplying
the machinery for such undertakings. Thus,, the MWI'is concerned in the supply
of machinery to the Rumanian soda factory, which. is a vast complex in the course
of construction, and as such properly falls tinder the Ministry for Heavy Industry.
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ARMY
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Personalities and Organs of the Minist o
4. The Minister
The Minister for Metallurgical and Machine Industries is Mihaly Zsofinyecz, a
former foundry worker who became the Chairman of the Works Committee in the
Hofher Schranz Works. Zsofinyecz has been a member of the Cabinet for four
years and is today a member of the Hungarian Politburo.
5. The Minister's Personal Secretary
Iaszlo Eatky has been, personal secretary to Zsofinyecz sin--e the latter was
appointed minister, and accompanies his boss everywhere.
6. Secretariat of the MDP Ministerial Commission
Next to the Minister's office are the rooms of the MDP (Hungarian Communist Party).
Every Hungarian ministry has attached to it a permanent delegate from the Party.
In the case of the M HMI this delegate is Andr9s Keszei, a former messenger in the
Ganz Factory. He has a subordinate staff of four and offices comprising five rooms.
He has nothing whatsoever to do with the ministry's normal functions, but deals only
with the ministry's personnel. His main task is to put into effect instructions
received from the Party as to Communist indoctrination, education, etc. of the
ministry's personnel, and generally to spread Communist propaganda. He and his
staff are constantly holding speeches to various sections of the ministry's per-
sonnel. When matters go wrong in the ministry it is also part of his function to
apportion the blame and advise remedies.
7. Secretariat of the Ministerial Committee of the Iron Workers Trade Union
Next to the MDP offices are the offices of the Iron Workers' Trade Union. The
staff comprises four and they occupy two rooms. The head of this committee is
simultaneously a member of the MDP Ministerial Commission. All members of the
staff are Party men. Their function is to deal with all welfare questions, sports
and the very important work competitions.
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Ministerial Secretariat
The Ministerial Secretariat is divided into four subdepartments:
a. Legal
b. Control
c. Economic
d. Secret documents
The head of this secretariat is La?szl~ Varga, who was formerly personal secretary
to the former Finance Minister, Istvan Kossa, Although his function is purely
administrational he is one of the more important officials in the Ministry. A
delegate of the secret documents subdepartment is to be found in each main depart-
ment and industrial department in the ministry. Subordinate to the economic sub-
department are the followings
a. A secretariat
9.
b. Caretaker's office
c. Garage
d, Stores
e, Duplicating office;
f. Messengers and porters
g. Maintenance workshops
h. Wages and other financial questions
Personnel Secretariat
Alongside the Ministe:Fial Secretariat is the Personnel (Establishment) Secretariat.
The head of this is Laszlo Magyar who holds the rank of Deputy Minister. F
a, Ministerial Personnel
b, Personnel in Undertakings
c, Education (training)
d, Registry
10. Technical Secretariat
Alongside the Personnel Secretariat is the Technical Secretariat which is a cover
organization for those officials in the ministry dealing exclusively with armaments
production. This secretariat is subordinate directly to the minister and acts in-
dependently of everybody except the minister. Within each factory producing arms
there is a delegate of the Ministry of Defense. If anything goes wrong in any of
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these factories this delegate reports immediately to the Technical Secretariat
who investigate the matter on the spot and give immediate orders for remedying
the situation.. The Technical Secretariat is in close liaison with the Ministry
of Defense from which it receives all information. The staff originally comprised
four, but today has increased to eight to ten, occupying three-four rooms. This
Technical Secretariat is, however, not competent to deal with armaments plants
falling under Directorates I and II (see paragraph 14 below).
11. Ministerial Conference
a. The most important organ in the whole ministry is the Ministerial Conference
which meets every week,, on Monday morning. It is attended by:
l.) the Minister
2.) the Deputy Ministers
3.) Laszlo Varga, head of the Ministerial Secretariat, whose duty it is take
the minutes
40) a delegate of the Cabinet Secretariat, who is the so-called cabinet expert
for al.. questions connected with the metallurgical and engineering industries.
This expert is usually Ne"met (fnu).
5.) a delegaty from the Communist Party Committee for State Economy, who is
usually Janos Csergov.
6.) In addition to the above there are usually invited to the Ministerial Con-
ference the heads of main departments or directorates who are interested in
any particular subject on the agenda. However, they are only entitled to be
present while this particular subject is discussed. Furthermore Soviet
experts are sometimes invited to the conference as advisers.
b. The main functions of the Ministerial Conference are fourfold:
1,) The implementation of general instructions issued by the minister. At the
conference the minister frequently allots certain specific tasks to the
deputy ministers with instructions that they shall be personally responsible
for carrying them out and may not delegate this responsibility in any circum-
stances.
2.) The discussion of suggestions put forward by the deputy ministers.
3.) The discussion of rules and regulations involving the ministry which the
minister proposes to issue.
4.) The discussion of matters which it proposes to submit to the cabinet. In
practice no question affecting the ministry is submitted to the cabinet unless
it has first been discussed by the Ministerial Conference. However, the
minister is not necessarily bound by the decisions of this conference. It
is rather an advisory body.
In addition to the Ministerial Conference there is the Staff Conference which is
held every second week, on Tuesday afternoon. This again is a purely advisory body.
It is attended by certain permanent members and others who are invited as the
occasion demands. The permanent members includes
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a. the minister
b. the deputy ministers
c. Laszlo Varga, head of the Ministerial Secretariat, who usually acts as chair-
man, and who has a casting vote when decisions are taken
d. the heads of three main departments, including Ferene Lettner, head of the
technical department, who is regarded as the technical brains of the ministry.
If general questions are dealt with the heads of all main departments and direc-
torates are invited to attend. In every main department there are selected
officials who are made responsible for certain specific questions. These officials
have to make periodic reports (not more than five typed pages) on the subjects
which have been entrusted to them. It is these reports which are discussed at the
Staff Conferences. At the present time the two most important subjects discussed
are the fulfilment of the export program and works competitions. The officials
responsible for these two subjects have to render their reports every two weeks
so that they may be discussed at every meeting of the Staff Conference.
13. First Deputy Minister,
a. The first Deputy Minister, who acts in the ministers stead during his absence,
.is Istvan Koosa, Subordinate to him are the following five main departments:
1.) Planning
2.) Production
3.) Labor questions
4.) Accounting
50 Education (training)
These five departments give instructions and directives to the various directorates,
trusts, etc. of the ministry, and their activities therefore extend to all industries
under thc' ministry.
b. The Planning Section is closely coordinated with the State Planning Office, the
latter being organized on a parallel system with the cabinet itself.
c. The Production Section is mainly a control organ which supervises the fulfilment
of plans. It has its own independent telephone service with both the directorates,
trusts, and. the individual plants. Among its functions is the responsibility for
obtaining daily reports from the directorates on the progress being made in con-
nection with certain selected priority matters. At the present time the following
are included in these priority matters:
1.) the Stalin Iron and Steel Works
2.) the so-called Rumanian Soda Factory
3.) the manufacture of 700 special freight cars suitable for water-logged territory.
These have been ordered by China and were due for delivery in 1953. There was
no possibility of keeping to the agreed delivery date.
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114 Ferenc Biro"
b. Subordinate to Biro are three directorates and one trust. Directorates I and
II are the most important and secret in the entire ministry as they are con-
cerned with. armaments plants,, including the highly secret underground factories.
The third directorate is in charge of all the steel,, iron and smelting works.
The trust,, known as the Rakosi Matyas Smelting Trust, is in charge of a number
of smaller steel and iron works.
15. Gyula Karali
a. Karali, an electrical engineer and former Gener
rank of deputy minister.
be Subordinate to him are the following seven main departments:
1.) Technical
2.) Investments
3.) Accident Prevention
4.) Electria.]_ Power Plants
5.) Telecommunications
Under the control of this section is the Sound and Cinema Technique Co. (Hang-4s
Kinotechnikai VL.lialat),, where research is being carried out on lethal rays
allegedly for the destruction of vermin but also for war purposes.
6.') Precision Mechanics
7.) Agricultural Engineering Industries
Hidasi L_
c or aeputy minis er. Subordinate to iin are one main department, three
directorates and one trust, as follows:
a. Section ttD". This section is responsible fore
lp) keeping a central inventory of all machines,, machine tools,, etc;
2.) air raid protection;
3.) fire protection
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b. Directorate for the Mechanical Engineering Industry
e. Matya's Ra?kosi Engineering Industries Trust
d. Directorate for Small Machine and Machine Tool Industries
e. Directorate for Mass Production Industries
17. Jene Fock
Fock also has the rank of deputy minister, and
trade talks.
is responsible for exports. As such he is usually sent abroad in connection with
a. Directorate for Vehicles Industry
b, Automobile Industries Trust (Chiefs Mrs. Ferenc Bir6)
c, Shipbuilding Industries Trust
Istvin Kineses
Deputy Minister Kineses was formerly head of the Directorate for Supplies
19.
1.) Directorate for Supplies. This directorate, which has some 150 employees,
is responsible for purchasing all materials required by the plants and fac-
tories falling under the ministry.
2.) Directorate for the Disposal of Production. This directorate is responsible
for the distribution and sales of all products manufactured by the plants
and factories.
b. The Secretariat of the Directorate for Supplies has under its direct control the
following special subsections and undertakings:
1.) Ball bearings
2.) Ball-bearing stocks
3.) General depots
4.) Iron depots in the Viso utca, Budapest
5.) Muszerkeszl_etezo Vallalat
6.) Ferroglobus
7.) Vafe'm
The Directorates
Each of the directorates is organized on identical lines.
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a. The secretariats normally employ:
1 confidential clerk
1 secretary
1 stenographer
1 messenger
b. The personnel sections employ a varying number of clerks#
c. The planning departments are subdivided into:
1.) a planning section
2.) a statistical section
d. The labor departments are subdivided into:
1.) a section for the distribution of labor according to the requirements of
the various undertakings
2.) a section for 'wages and norms
3.) a section for education
e. The production departments employ:
1.) production clerks (dispatchers)
2.) a special official for armaments questions
f. The technical departments employ:
1.) a const:r actioxj clerk
2.) technologists
3.) a NGK clerk
4.) a quality control clerk
5.) a plan maintenance clerk
6.) a clerk for new processes
g. The investments departments are subdivided into:
1.) an investment planning section
2.) an investment control section
h. The accounting departments are subdivided into:
1.) a bookkeeping section
2.) a finance section
3.) an auditing section
4.) a financial statistics section
The number of employees in each department and section varies according to the size
and importance of each directorate.
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20. Research Institutes
The following research institutes are subordinate to the research section of the
main technical department of the ministry:
a, Iron Industry Research Institute
b. Metal Industry Research Institute
c. Engineering Technology Research Institute
d, Optical Research Institute
e, Precision Instrument Research Institute
f. Technical Norms Research Institute
g. Heavy Industry Publications Research Institute
21. Control
The control section of the main technical department is subdivided into 15 groups'
the heads of which are
Jozsef Domborari
Karp.?sonyi (fnu)
Miklos Elsner
J'~no Szatmari
Lasflog Somogyi
flies Pato
Ferenc Kovacs
Laszlo Cserveni and Ferenc Kuti
Csizm.a.zi.a (fnu)
Lajos Vantora
Ferenc Olah
Ferenc Kocsis
i .szlo Povazai
Mrs. Hajcs (fnu)
Gcze (fnu)
22. Armaments Production
In addition to the plants and factories subordinate tc Directorates I and II
(see paragraph 14b above),, the following further plants and factories produce
armaments or component parts of armaments which are assembled in the factories
falling under directorates I and II:
Sheet (Metal?) Facto (Bor?onadasdi Lemezrar) , Borsodnadasd
Steel Mill (Salgotarjani Acelarugyar) Salgotarjan
April 4 Machine Factory (Lprilis 4, Gepg~ar), Budapest
Iron Foundry and Machine Factory (Vas Bntode es Gel Car)., Budapest
Borsod Area Machine Factory (Borsodrid'eki Gpgyar), Miskolc
Ujpest Iron Foundry (Ujpesti Vasontode), Budapest
Agricultural Machine Factor (Mosonmagyareveri Mez8gazdasagi Gepgyar), Mosonrnagyarivarr
Shipyard (Balatonlellei Hajogyar), Balatonlelle
Vehicle Factory (Szentendrei Kocsigyatr), Szentendre
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Obuda Shipyard (Obudai Haj?gyar), Budapest
Automobile Electrical Equipment F.cto;y(Budapest Autovillam.osagi Gyar), Budapest
Piston Ring Factory (Dugattyugy{.ru. G'yar), Dunaharaszti-MAriatelep
Small Motor and Machine F,ct?ry ~Kismotor s d6pgyar), Budapest
Bicycle Factory (R.M. Kerekpargyar),2 Budapest
Tool Factory (R0M. SzerszAunggg~ar),2 Budapest
Plastic and Cable Factory (Miianya? es K.belgyatr), Budapest
Remix (Electrotechnical Plant) (Remix), Budapest
Sound and Cinch .t6graphir Equipment Factory (Hang e "s Kinotechnikai Vallalat), Budapest
Radio Equipirient Factory'(Radid,Felszerelesek Gyara), Budapest
Batte Factory(Akkumula9 or~rGy .r), Budapest
(fledioo)) Tube Factory (Adocsojyaf,), Budape%t
Metal Mass Products Works (Fem-omegcikk Muvek)s.Budapest
Machine Factory (Soproni G pgyar), So r6n
Enamel Wares Factory (Budaf?ki Zom nc rugy r), Budafok
Enamel Wares Factory(Boryhadi Zomanc+arugyar), Boryhad
Watch Factory (('ragyar), Budapest
l.F---]Commento In the hierarchy of the Hungarian Communist system Csergb 25X1
theoretically ranks above the minister as all ministries are technically organs
of the Party Committee for State Economy. Actually, the Ministers Zsof nyeez, as
a member of the Politburo, is a Communist of far higher rank than. Osergo. 25X1
2. Commento R.M. stands for Rakosi M'aty,s. The factory is a component
of the Rakosi M yas Works on Csepel Island.
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