1. STRUCTURE OF CEKOP, STATE AGENCY FOR FOREIGN TRADE 2. ORGANIZATION PROFITS 3. CEKOP ORDERS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80T00246A041400440001-3
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: May 11, 2010
• Sequence Number: 1
• Publication Date: April 3, 1958
• Content Type: REPORT

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skin 821MAWTUMIE012MAZWO ',Ml
CENTRAL INTELLIGENCE AGENCY
This material contains information affecting the National Defense of the United States within the meaning of the Espionage Laws, Title
18, U.S.C. Secs. 793 and 794, the transmission or revelation of which in any manner to an unauthorized person is prohibited by law.
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COUNTRY Poland
SUBJECT i. Structure of Cekop, State Agency
for Foreign Trade
e. Cekop Orders
DATE OFD
INFO.
PLACE &
DATE Ad
of .1954 by the Ministry of Foreign Trade and took over the function of th4-h
Biuro Dokumentacji Technicznej (Bureau of Technical Documentation - BDT)
which was in existence at that time. Tt function of the BDT was the
administration of scientific and technical cooperation between the East
Bloc countries, chiefly in the exchange of technic. projects, production
processes, etc. This scientific and technical coo tion gradually be-.
camp less significant and was finally administered,i / mall department
within Cekop.
2. The sections into which Cekop is divided. are a> foll.ok ~~~ ~~
a,. HM Section, which is responsible for the export of four nn
shipyard installations, roiling stock factory .instal:l.atio an
machine building installations.
at
en
ions
b. HG Section., which is respor_S h_e for the export of installations for
the mining and metallurgy industry, geological. research, gas pipe lines,
and gas works construction..
c. HE Section., which is responsible for the export of installations for
boiler houses, high-tension lines, and electrical industry products.
d. HB Section, responsible for the export of structural steel units of
all types, large containers, and container construction equipment.
e. HL Section, responsible for the export of installations for porous
cement production, glass factories, saw mills, etc.
f. HS Section, responsible for the export of installations for sugar
refineries, yeast factories, alcohol factories, oil pressing plants,
and chemical factories.
g. General Trad? Se=ction, with subsections as follows: Exhibits and Advertisement,
East States Export Coordination, Legal Office, Translation, Price C~:.lculation
and Mar ke 1:-- . h
h. Scientific and Technical Cooperation.
STATE IX IARMY X INAVY IX AIR X F61 jAEC
DATE DISTR. is APR Ise
ORR EV x
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i. Export Projects.
3. Engineer Furtak (fnu), a former vice-minister for Constr:cticn, ie
the Director of Cekop; Wladyslaw Mostowicz is Deputy Dire(-tor for
Economic and Trade Matters, and is responsible for the General Trade
Section, Scientific and Technical Cooperation Section and the Export
Projects Section. The other two deputy directors are. Ropczycki (fnu),
who is in charge of the HM, HG, and HE Sections, and Wladyslaw
Kubasiewicz.,in charge of the HE. HL, and HS Sections.
4. Attempts are being made to make Cekop more independent. of the ministry
in actual, foreign trade negotiations while the ministry will concern.
itself mainly with economic problem, especially with general trade
policies. A special economic department is planned. for the n-ni-stry.
5. So-called general. contractors have been designated contractors for
Cekop as Cekop deliveries comprise complete industrial installations
made up of machines which are produced in the most diverse factories,
often subordinate to different ministries. In addit` cn t th:i s, plans
for these installations come from planning offices which are sb-
ordinate to other ministries. For example, machines and installations
for sugar refineries come from factories subordinate to the Ministry
of Heavy Industry while the plans come from the Planning Office for
the Food Industry, which is subordinate to a different ministry.
6~ A simplification of certain supply functions was planned and was to
have begun probably on 1 January 1.958? For example. Prozamet, Bureau
of Plans for Metal and Electrical Industry Plants, was to draw up plans
for, as well as make domestic purchases of, necessary machines and
installations. The Central Administration for Heavy Machine and Boiler
Building Factories, to which factories producing machines for sugar
refineries are subordinate, was *_.c t,a~= over this function for the
refineries.
7 . The Piotrkow, Mining Machinery Factory has, been designated the general
contractor for deliveries of co:I washing and sorting installations to
China,and Gazobudowa, a Zabrze construction firm, general. contractor
for long distance gas pipeline exports.
8. A rather chaotic situation in this area has been made worse because a
number of factories and general contractors, especially Prozamet,
want to eliminate Cekop entirely as an export office and take over the
direct export of machinery ttlemse':_ves. The ministry, however, does
not want an extensive decentralization of export and import administration
because it would then lose its direct influence over both,
9. Cekop is viewed as an important expert office for the future especially
for exports to underdeveloped countries. A special technical council
was created in Cekop for the purpose of intensifying exports to these
areas. Director Furtak is the secretary of this courcil and important
members include Fidelski, a former vice-minister of the Machine Building
Industry, and Bombinski, a former vice-minister of Construction.
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10. The HM Section is negotiating the following transactions:
a. A large foundry and machine factory) Ithe contract of which
is valued at approximately 6.5 million dollars with terms extending
credit over five to six years.
b. A mechanized molding shop and sand-preparation plant for a cast iron
foundry with a contract valued at
about 100,000 dollars. A 10 percent down payment has been made and the
installations will be delivered in 1958. General contractor for the firm
is Prozamet, and the engineer in charge is Lenartowicz (fnu).
11. The NG Section has the following orders:
a. Two coal washing and sorting units with an hourly output of 300 tons
for China. The Chinese, who do not trust the delivery capabilities
of the Poles and have travelled to (Polish ?) coal basins to inspect
Polish installations, wanted to cancel the contracts but the Poles,
after mediation, have managed to retain them. At the same time, Poland
has imported these units
b. Two deep coal mine projects for China. One project has been cancelled
despite Cekop attempts to retain it.
c. Construction of a long-distance natural gas pipeline
a length of about 70 kilometers
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In the first half of 1957, the HG Section submitted a detailed
bid to Bulgaria for a coking plant (coking battery). Bulgaria, however,
made no use of the bid despite the fact that the only detailed and
satisfactory bid was that submitted by Cekop. The USSR had submitted
no bid quoting prices but had granted credit to Bulgaria and was to
deliver the coking plant as part of the credit agreement. Inter-
cessions by Cekop and the Polish Ministry of Foreign Trade with CEMA 'tip
(Council of Mutual Economic Assistance) in Moscow were not successful.
12. The HE Section has the following contracts:
a. Four boiler houses for North Vietnam. The contract includes expanding
the State Electric Power Plant in Hanoi with two boilers of 32 tons
per hour capacity, the construction of a boiler house in the electric
power plant in Hon-gay, the coal center of North Vietnam, the expansion
of the electric power plant in Nam Dinh (textile factory), and ex-
pansion of the power plant in Haiphong (cement factory). Only ex-
pansion of the boiler houses is called for since there are sufficient
reserves of turbogenerators.
b. Two or three boiler units for Yugoslavia.
13. The HE Section has also been attempting to obtain orders for high-tension
lines, especially steel girder towers, but has not been successful.
14. The HS Section has already delivered two sugar beet processing factories
to China the daily output of which is 1,000 tons. The factories were
equipped with Polish machines with the exception of the beet-cutting
machines and the
turbogenerators The factories
were designed with large reserve capacities and processed about 20 to
30 percent more beets than planned. In spite of this, the Chinese were
not satisfied with the delivery because the delivery dates were not
punctually met and the prices of the machines and installations were very
high.
a. A new contract with China for a sugar cane processing combine which
will process about 3,000 tons of sugar cane per day. The processing
is to be 100 percent effective so that cardboard or paper can be
produced from the pressed cane and alcohol from the molasses. In
this process, liberated carbon dioxide will be processed into dry
ice and fodder dregs will be produced from the molasses residue.
The cane mills for this combine
and the turb
Deliveries for this combine have been quite late.
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A contract for six sugar beet factories, according to USSR ILLEGIB
specifications, which will be delivered to the USSR in coopera-
tion with East Germany and Czechoslovakia.
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Cekop (the HS Section) has also negotiated with China for the
delivery of a wood alcohol factory
IYugoslavial IIt is
possible that the first transaction for a sugar refinery between these two
countries will be concluded in 1958.
18. North Vietnam placed an order for a sugar cane processing factory which was
to be delivered under Polish credit to Vietnam but the order is still hanging
fire as the present economic situation in Vietnam is very weak.
19. Cekop has had trouble competing on the foreign market because Poland does
not have the newest sugar refinery machines available, for example such
machines as continuous diffusion machines for beet factories, filter
presses for beet and cane factories, high-speed centrifuges, etc.
20. The HS Section has delivered some cold storage installations to Bulgaria
and now has contracts for further installations with Bulgaria and some with
Yugoslavia. Attempts to obtain,contracts'for suehr;iMstallations in other
market have not been successful. The section has an 25X1
order from Bulgaria for a fodder dregs production installation.
21. The HB Section has the following orders:
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23. Cekop is trying to increase its exports of rough-machined sheets for
containers, and perhaps complete containers and structural steel,
since prices for these items are essentially higher than prices
for sectional steel or steel sheets in manufactured quantities.
24. The HL Section has specialized chiefly in the delivery of porous
concrete factories to the USSR (four or five items) and is now looking
for orders in Czechoslovakia and Yugoslavia. This section is also
delivering a small glass factory to Albania. The delivery is nearly
completed.,
25. The Market Research Section bases its work mainly on advertisements
which appear in the various foreign newspapers, collects clippings,
sends them to the various trade sections, makes advance payments for
newspaper advertisements, etc. This effort, however, has had no
special results.
26. The Price Calculation Section collects price quotations from various
market areas in order to examine bids drawn up by the trade sections.
These quotations are compared with available price material. This
work has negligible results, however, because of an inadequate
Ica.rllex'l~r.T,?c~''t;:r;,aof the market. Section employees are afraid to make
decisions. They prefer to set high quotations for bids in order to
protect themselves and leave the responsibility of proving whether
or not a bid is too high to the trade sections.
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Vice Minister
Dept of Machinery and '-3quipment
Director: IiALICZKI
Deputy: KURNICKI
CEKOP
L Director: Ing. FURTAK
I
Planning Section
_Boakkcanina ec inn
Asst. Director (Economics
Trade)
Wladyslaw MOSTOWICZ
Sc16_htif is and Technical
Cooperation 1'-
Subordinate Sections 'Subordinate Sections Subordinate S.
General Trade JHM
Giesserei, Schiff- i Steel
Exhl.bits and.Adds
East States Export
coordination
Legal Office
Translation
Price calculation
Market Research
Asst. Director
Ingl. ROPCZYCKI
Asst Director
Ing. Wlady's le,w
ASIFWICZ
and general Machinery
H?- Berg u Fuettenwerk -
einrichteungen, geologic
research, gas pipe lines
and Gas work constructio
Kesselhausern
high
,
nsion electric equipm
F.sr~nnr?ts_,.I (consulting
engineers, incl. diplomatic
construction in Warsaw)
constructior
storngettenks
Porenbeton,
glass fcbr.
sawmill mn.c;.z .
Fig su:,a:r,
spirits
oil presses,
it
chemical equip
i ment export.
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