SOVIET OCCUPATION ECONOMY IN AUSTRIA

Document Type:

CREST

Collection:

General CIA Records

Document Number (FOIA) /ESDN (CREST):

CIA-RDP81-01043R003700130004-9

Release Decision:

RIPPUB

Original Classification:

Document Page Count:

242

Document Creation Date:

December 23, 2016

Document Release Date:

May 21, 2014

Sequence Number:

Case Number:

Publication Date:

August 27, 1959

Content Type:

REPORT

File:

Attachment	Size
CIA-RDP81-01043R003700130004-9.pdf	11.67 MB

Body:

Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? INFORMATION REPORT INFORMATION REPORT ? 50X1-HUM 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.0 Secs. 793 and 794, the transmission or revelation of which in any manner to an unauthorized person is prohibited by law. ? ? ? ---C-R-E-T 50X1 -HUM COUNTRY SUBJECT ? ' Austria Soviet Occupation Economy. in Austria REPORT .DATE DISTR. NO. PAGES REQUIREMENT NO. 2 7 AUG 1959 1 RD . ? REFERENCES DATE OF INFO. PUKE & DATE ACQ SOURCE EVALUATJONS ARE DEFINITIVE. APPRAISAL OF CONTENT IS TENTATIVE. 50X1-HUM 50X1-HUM- ? study on the administration and exploitation of the industrial and petroleum installations seized as "German. assets" by the Soviets and operated by thew, ? ? The section on the petroleum inr.iustu .covers the historical background,'Nazi xploitaticn and development, and Soviet dismantlings, while emphasizing Soviet production and distri- bution techniques, sales .and profits, ? The section on the other enterprises emphavizes statistical presentation of estimates of Soviet sales, profits, deliveries to the 1-loc, as well as organizational methods. ? 50X1-HUM ? ? ? ? ? ? 50X1-HUM ? ST ATI. 'ARMY NAVY AEC (Note: Washin3Ion distribution indicated by "X"; Field distribution by '#") . ? . ? ? ? INFORMATION REPORT NFOR ? TION REPORT ? 50X1-HUM .? .? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 50X1 -HUM 50X1 -HUM Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? 50X1-HUM _ . _ ? ? SECRET SOVIET OCCUPATION ECONOMY IN AUSTRIA ? Final Report December 1957 ? ? ? r r = ? ? ? ?? ? ? ? 50X1-HUM 50X1-HUM ? 50X1-HUM ? ? ? ? ? ? ? ? ? ? 50X1-HUM Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? Qrsr)E7 I ? ? ? ? ? ? ? ? 50X1 -HUM First 8ection. ? THE CONDUCT OF THE OCCUPATION ECONOMY ? Short Survey of the Origin and Development of Soviet A;isets in Austria ? Page 1 1 1 II Disposition of Soviet Economic Division;; Their RelationshilS to each other, to Moscow and Austria III Tasks of Soviet Occupation EconoMy in Austria 6 and Achievements ? 17 . IV Effects on Austrian Economy 23 Second Segtion. ? ? 26 SOVIET PETROLEUM ADMINISTRATION 26 ? ? . Development of the Austrian Petroleum Industry ? before the Anschluss ' 26 1. Oil Industry Up to 1938 26 2. The Refineftes Until 1938 ? 32 I; German OccupatLon Period .1938-1945 1. Introductory Remarks 2. Influence of German Oil Capital ?34 ? -.I") 33 A. Petroleum 34 B. Natural Gas 40 .41 ? C. Refineries D. *.Fuel Marketing brganizations 14.5 III From War's End to'Foundation of the SMV . /15 1. End of the War Period ? 45 ? 2. Soviet Intervention ? 46 A. Plant Dismantlidg 46 B. ReStons for the Dismantling Policy ? 50a ? C. Switch to. Economic Exploitation Policy ?50a ? ? ? ? -,? ? ?? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? . ? IV . ? ? ? SMV Organization, Work Methods and Production 1. Foundation of the SMV ? 2. Organization Page 52 52 54 A. Development . 54 ? B. Personnel 58 C. Accounting, Plans and Controls ? 65' (a) Accounting 65 (b) Plans 69 (c) Controls 71 3. The Role of the KPOe in the SMV ? ? 71 4. Crude Oil and Natural Gas Production 76 A, Drilling Activities 76 (a) Opening up of New Oilfields 76 (b) Turbo-Drilling ? 78 (c) Productiveness, .Drilling Costs Drilling Meters ? 80 (d) Opening of Natural. Gas Deposts 82 ? (e) Natural Gas l'roduction and its Exploitation 84 B. Gasoline Production 86 (a) Produetioh Points and Production 86 (b) Oasoline Production Accountancy 87 C. 'Total Oil Production ? 8a D. Distribution and Sales 91 E. SMV Installations by Branches 92 5. The SMV Refineries 101 A. Lobau Refinery 104 B. Korneuburg 104 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? Page (a) History, Capacity and Investments 110 ? (b) Pipelines and Transport 112 (c) Storage Facilities 113 F. Central Laboratory ? 113 6. Central Tank Station 114 A. Pipel.ines, Transpor.t.and Storage .(Crude and Refined) ? 7. The Geophysical Development ? Surrender of the SMV to the Austrian Republic ? Third Section. ? 125 ? USIA PLANTS 125 ? I Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? D. Performance of the Individual AdTinis-. Page ? trations? ? ? 136 (a) .Mar;ten 136 ?? (b). PCdyomnik ? 139 ? (c) Autovelo 148 . (d) Kabel ? ? 151 (e) Zement 160 ? (f) Kraska ? 163 Letex ? 168 (h) Less 174 (i) Wkus? . 176 II USIA Land and Pore try Enterprises 178 1. Developmental History and Experiments in Exploitation 2. Internal Organization and Personnel 178 179 ? ? A. Composition of the TF9S Main Division 179. B. Table of Organization of the General ? Directorate 182. III Wien-Film 186 ? Fourth Section. ? 187 ' THE FIRST DANUBE SHIPPING COMPANY (DSC) 187 History ? 187 II Organization and PerscInnel ? 188 1. Relationship to the Moscow Directorate 188 2. Relationship to USIA and the Soviet Military Bank. ? ? 189 3.* Internal Organization ? 191 ??? ? ? ? ? ? ? ? ? ?iv ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? . ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Page ? .III Tasks of the Danube Shipping Co. Within the ? Soviet Occupation Economy ? 194 ? ? 1. Attempted Foundation of a Soviet-Austrian . DSC ? 2. DSC and JUSCHWNESCHTRANS as Soviet Monopoly Enterprise 194 195 ? ? . . . 3:. The DSC as a Main Soviet Support Point:son the Danube ? 196 . ? IV Survey ar Seiwices Drawn From the Austrian Economy 197 Fifth Section. TRADE AND FREIGHTING IN THE SOVIET OCCUPATION ECONOMY 199 \\ Creation and Development of Trade and Fre Freight Enterprises ? II Trade in the Occupation Economy 199 201 1: The Soviet State Trade organization and firms 201 ? 2. INTRA? C and.the Communist Party firms 207 ? III Organization and Task b of the Transport System 213 IV Final Remarks ? 216 Sixtn Section. . THE SOVIET MILITARY BANK. INTRODUCTORY REMARKS ? ? HistOrical 1. Foundation of the SNB 2. Dissolution in. 19 It Organizqtion . 1. Rel.F.Itionshipb the Moscow?Director'ate 4 Relationship to the leadership in. Auftria Relationship to other Occupation7Institutions ? L. Relationship to Austrian .Instl.tutions ? ? ? ? .? ? V :?. ? ? ?? ? ? ? ? ' 217 217 217 217 ? 218 218 ? 21ci 219 ? ? 219 ? 219. ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? : ? ? ? ? ? ? ? 5. Internal Organization S 6. Personnel III Tasks of the SMB . . Page 220 220 221 1. The SMB as Accounting and Payments Institution 221 ? 2. The SMB's Credit Function 223 ? 3. Control Over Use of Cr.sdit .Investments ? 224 4. Role of the Bank in the International Payment ? System ? 224 ? 5. SMB as Instrument of Soviet Fiscal Policy . 225 IV Effects on the Austrian Economy 225 Seventh Section. 226 USIA AC C 0 T DIG SYSTEM 226 ? I Principles of Planning and Account Balancing 226 II Plant Planning and Accounting ? 228 III Accounting Between the Individual Plants and Their Administration . 230 IV Management Planning and Accounting ? 230 V Planning and Accounting Within the USIA Directorate ? 'General and of the Administration of Soviet Assets Abroad ? 231 ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 R 50X1 -HUM Next 6 Page(s) In Document Denied Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ?Fiist ection. ?? ? ? ? ? THE CONDUCT OF THE OCCUPATION ECONOMY . I. Short Survey of the Origin and Development of Soviet Appets ? in Austria. ? ? ? The origin Of Soviet assetv.in Austria hoes back to the occupation ? by Soviet troops at the beginning of April 1945. The first SdViet asset in Austria was therefore based on military law. ? ? The Trofeinoye Upravlenye (Trophy Administration) was set: up by ? ?? the occupation tro.ops under General !Borissov with headquarters at ? ? ?that time in Moedling, near Vienna. this was in instrumentality wh?h ? ? had plainly been previously planned and which was under the orders of. ? the commander of the occupation axmy, or in other words, under 50X1-HUM ? . ? ? of the appropriate division in the Moscow War Ministry. ? " We therefore can qpeak of a MILITARY HASE running from t4 ? . . ning of the occupation to the foundation of yUA.in spring 1946. This ? ? ? ? ? ? ? ? ? ? ? ? Military Phase can be subdivided into:three. parts. The entire Military ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ?? ? ? ? ? ? Phase is marked by a continual diminishing in importance of the meaning and tasks of the Vrophg AdmibistratZon. ? ? In the first period of this phase., and could be moved was requisitioned or ? everything that . dismantled and, by the occupation troops, sent to Russia. had any value if not needed In the second period only plants of military importance were dismantled or those which were considered to be German prtperty. ? In the third period ?dismantling was limited to particular arms and explosives plants. (See cur paper: "Bericht ueber die Besprech- ungen mit Herrn Dr. M. am Dienstag, den 13% und am Dienstag, den 20. ? November 1956 nachmittags.1 ? As we have already proved n.our three reports on the conversa- ? ? tions with Dr. Manfred and in the accompanyi.ng reports on the conversa- tions with Dr. D., early summer 1946 saw the beginning of the phase ? ? which marked the establishment of the Soviet economic organization in ? Austria. ? ? As we have already shown in detail, this phase was introduced ? through finding and defining German'property. The juridical basis ? ? for this was the August 1945 Potsdam Agreement. In accordance with Article VI f of this Agreement all German property in Austria became ? ? *the property of that occupying power in?whose zone it lay. ? ? It may be added at this point that the legality of. the Potsdam Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? 1 This objection was ralsed in 1945, for.examble, by Dr. Friedl, ? ? ? ? ? who was employed by the Soviets as geological advisor, in talking ? ? with Major Kaminki and Co2onel Yegorov, Trophy Administration officers . . ? for the oil industry. (Dr. Friedl is now Chief Geologist with the ? Oesterreichische.Mineraloelverwaltung). ? ? The Soviets' riposte to this was Army Order No. 17--reproduced pvi E P in the Weiner Zeitung of 6 July 1946 under the tieading:. "Surrender of German Assets in Eastern Austria to the USSR," in wacli the assets. ? regulations of the Potsdam Agreement'were picked up and declared official for Austria. It was pointed out that regardless of the legality of the Potsdam ? Agreement, this army order as in any event valid for Austria and ? must be obeyed. However forceful this argumentation was, it never- ?? ? ? ? ? theless shows that the Soviets had some doubts about the validity of ? ? the Potsdam Agreement. . ? Here we must briefly mention the ipriod in Soviet occvpation policy which is marked by attembt.s to set up mixed Soviet-Austrian companies. The above-mentioned Dr. Friedl has informed us that towards the end of 19)45 he took Sart 1.i2. negotiations durtng which the Soviets ? proposed that the Austrian oil assets lying in the Sovret.zone'of ? . ? . % ? . . ? occupation should be administered by a Soviet-Austrian company. The . ? ? ? ? ? ? ? . ? . , . . . Soyie.te reveaLed similar intentions with regards to the organization ? ? ? ? ? . . . of the Danube shipyards they.had talien over. This is explained more . . . ? : ? ? ? ? ? ? , ? ? . ? 3 . ? ? % . ? ? ? ? ? ? . . ? ?': ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ? fully in our section dealing with the Danube Shipping Company. Up . ? ? ? ? ? until nr:w little attention has been paid in research tc) this period ? ? ? because the Austrians rejected these Soviet proposals to form mixed ? companies. Neverth6less, this is not without importance since similar Soviet plans were carried out in the Satellites. There, in important ? ? sectors, such as aviation, mining and in certain industries, mixed ? companies were set up in Hungary, CzAhoslovakia, Bulgaria, etc., in ? ? ? which the Soviets soon became clearly predominant. This soon became an effective instrument of an integrated Soviet economic policy. The fact that the Soviets had concrete intentions to form such ? ? companies in Austria is also proof that they had as their objective the incor.poration.of Austria into the family of Satellites. %? Thrbugh use of the mixed companies they wanted to ensure themselves ? of a "voluntary" and unmistakable collaboration on the part of the Austrians. When this was denied them, they decided on the formation ? ? of purely Soviet economic corporations in Austria. The fundamentals of the establishment and development of these Soviet economic organiations in Austria have already been dealt with in. our Manfred reports of 1956. The concept formulated at that time has been appreciably confirmed by further research: In the fol- ? ? ? ? lowing: chapter these elements will be pullsd together again. ? ? Here, it must be shortly noted that also in this phase of thee ? ? ? ? development of th& Soviet'economic organizalions there were three steps. ? ? ? ? ? ? ? ?? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ?? ? ? ?? ? ? ? ? The first step went-up to ayound 1951 and reveals a Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? II. Dis osition of Soviet Economic Divisions' Their Relationshi to Each Other, to Moscow and to? .Austria ? ? ? ? ? Our 1956 Manfred Report has shown in detail that USIA was founded ? S. in 1946 by emissaries sent Qom Moscow. These reports were comple- mented by Dr: D. and they have coKfirmed the time of the incorporation ? of USIA. The details can be summarized as follows: ? The USIVA (UPRAVLYENIE SOVYETSKIMXMUSHCHESTVOM VOSTOCHNOI. ? AVSTRII), meaning - Administrat!ton.of Soviet ,Assets in Eastqrn Austria ? ? later had its uesignation changed to USIA which stanas for Administra- tion of Soviet Assets in Austria. It wEis set up by the Moscow organi- . ? ? zation called UPRAVLYENIE SOVYETSKIM IMUSHCHESTVOM ZAGRANITSEI - Administration of Soviet Assets Abroad - or USIZ for short. An ? influential person in tkis Moscow administration ms a man named ? Merkulov, a former member of the NKVD. ? ? With regard to the establishment and incorporation of the Soviet ? economic organizatiOn in Austria thbre is one fact which is worthy of note and this is the .lack of clarity of jurisdiction. However,' ? ? the Western researcher must take into account the fact that such a lack of clarity is rather the rule in uhe Soviet system and in many ? instances is deliberate. The intentional duality of .jurisdiction ? ? makes control easier and keeps those exercising thv jurisdictiop iD ? ? ?? .a Rertain state. of uncertainty thePeby limiting thb possibility of ? ? ? autoratic management. .: . . ? ? ? ? ? ? ? ? ? ? ? ? 6 ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? As we have already said USIA means Adminictration.zf Soviet ? Assets in Austria. It therefore follows that all Solpiet assets Jr,. ? Austria should be under the control of this institution. However, our research has revealed that right from the very beginning several technical ministries and command points in Moscow parAcipa? ted in the ? ? direction of Soviet assets in Austria. However, odr sources are not ? of one mind with regard to the precise division of jurisdiction and the same applies to the members of our research team. But it is more a question of differences in formulL. One thing is certain and that is our researchers have come across 11 central points in Moscow about ? which we shall speak later. ? ? ? One thing. is absolutely certain and that is the Administra-Cion of Soviet Assets in Austria was directed straight from Moscow. It is ? plainly a matter of the establishment of a Soviet economic enclave in a foreign country. ? As already mentioned; and in accordance with our report entitled ? "Aussuehrung ueber zwei Unterredungen mit Herrn Dr. D. am 2.). und 27. ? November 57' of December 57, the So,:iets at first seem to have enter- . ? ? ? tained the naive idea that those Austrian (formerly German) economic ? ? ? corporations which now became Soviet property wo? uld automatically ? ? ? become integrated into the Soviet economy: However, it became plain that it was virtually impossible, and certairily very Uneconomical te ? ? .. ? procuee every screw or pencil needed by Soviet assets in Austria from Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? Therefore, very toon after the establishment of the USIA they had to start thinking of entering intb at least a partial exchange ? ? of commodities?with the surrounding Austrian economic system. For this purpose, the first bi.gger establishment named DEGOS was set up simultaneously with tke foundation of USIA. (See "Aufzeich- ? nung ueber zwei Unternadungen.mit Herrn Dr. D. am 23. und 27. November ? DEGOS undertook the representation ?pf the Administration of Light ? ? Industry and had to procure those commodities necessary for USIA ? production activities. This was done by an exchange against those commodities that USIA could spare and which were not necessary to ? fulfill orders for the East. A sort of economic modus vivendi was set up and later became so extended that more than .;0 percent of production under Russian influence somehcm found its way into the ? Austrian economib circuit. .(See Third Section) ? ? However, the Soviets were never able to brir* themselves to think of their property on .the territory of the Austrian Republic in the Western sense. The Soviets always thought of administering their ? property as meaning, to a certain degree, incorporation into their ? ? economy and its use for their political aim? s. ? ? ? Accordingly, they continually prejudiced the'soverpfgnty c.f .the Austrian Stqte in regard to its system oPtaxation. So, in prin- ? ciple, ?these plants wider Soviet administration did not pay any .taxes ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? the juridical sovereignty of the Austrian State when .:they felt like ? it. It frequently tiappened that decisions by civi3. courts againsi ? Soviet-controlled plants were disregarded. ? As can be seen in our special reports of May to Novemper 1957; the Soviets particularly disregarded the customs regulations Of the ? ? Austrian State to a very high degree. They als; paid no attention to the regulations concerning raw material, management and trarisport. ? Our reports show that the presence of Soviet property in Austria had effects far different than the exisjtence of foreign property in ? another state normally entails. ? ? The stipulations of the Potsdam AgreemenDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? S ? ? As already pqinted out there Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ?? ? ? ? ? ? ? 4ccoiiding to oral reports by Dr. the Chief of USIA.had ? three representatives: one for political, another for:personnel and a third for commercial afPairs. The most important divisions were: ? ? ? The PlansDivision. Through it production of all ?Branch Adminis- ? trations was planned?in'accordance with.Moscow's?wishes and approbation. The Commercial Division. This was in charge of procurement; sales and of the Secretariat. It was also in charge of imports anDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? Voronov. ? ? ? ? The important names in the Juridical Division were: Fedotyev, Khoclkov and Kasantsev. . ? . Also must besmentioned Ossipov and Shenko, leaders of the Central Commercial Bureau and the *erstwhile chief of lhe?Division for Research into German Property,'Orlov. ? ? Our. documents show that?tpe careers of nearly all the USIA ? chiefs ended in ariTst and return to Russia. ? ? ? ? It should also be mentioned that aDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ?? ? ? ? ? ? ? . . For instancel?all of the AuctriaDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? . . transport concern Juschwneschtrans. We also present an analysis of. ? s . ? . tha't sector-of trade and transport whose direction and administration ? ? ? .. ? . . was the responsibility of the KPOe, And which tHereby enjoyed a certain degree of independence. ? . The Soviet Military Bank occupies a speaal place .in our research. It developed out of a Field Bank. 4.is discussed in the Sixth Section. Its first Directors-General was Tsirulik. It is also known that . . the Soviet Military Bank (SMB) was.managed by GUS-Bank in Moscow, ? which also supplied personi:Iel. It functioned in the same manner as. a Soviet bank. It is equally certain that it was the sole financial ? institution for all Soviet bodies operating in Austria. Autflorities. ? ? ? and the research team egree that the SMB's finance policy was, for all practical purposes, determined by the leading personalities of the Soviet economic corporations in Austria. ? ? ? ? ? ? ? These were, in first place, the chiefs of USIA and SMT, and also ? those of the Danube ShippIng Company and of Wien-Film and, of course, ? ? ti-re chie:s of SMB itself. It is noteworthy that. when USIA was set ? up and occupied the not ve.r;1 spacious premises in the Graf Starhemberg Gasse in the IV District, the SMB moved ?with.it and that when USIA ? ? ? movbd to the Trattnerhof 1.n the I District, SMB went along too. In ? ? ? other words, SMB was always united with USIA. . ? ? ?? ? It is also clear that long-term credits were formally outsidq the ? - . . ? SMB's jurisci.i*ction and that ittook care of the short-term ones. l? ? ? ? ? ? Furthermore,* it is clear that he SMB,/in Austria fulfilled. 'tfie same ? ? . .? ? ? ? ? ? ?? ? ? ? .? .? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ? standardizing control functions as the banks in the Soviet Union. This signified control, of Currency, of stock-keeping and of r- ? similar accountiqg and cigantrtive economic Cactors. ? The research team is in agreement that 'the functions of the Soviet ? . ? bank cannot be compared with those of a western bank since the . ? ? ? . ,financing of an industry is determined in the last analysis by the ? production plan. This is draw.n up by thote people responsible for ? . . ? production who, like all other participants must boy to the financial ? sector, namely. the Bank. ? The subordinate position of the SMB--subordinate to GOS-Bank in ? Moscow and to-the Central Offices of the Soviet economic corporations ? ? ? ? ? ? in Austria--must, remain in the dark to.a certain degree. Nevertheless, ? ? it i certain ,that the SMB was a factor of unit, in a s, stem that had ? ? become broken up through the influence of the technical ministries.. ? The reason for this was that the SMB was the sole financial institu- tion in the network oDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? A further organizatory unifying factor was the High Commibsioner's ? ? Economic Division,, under the orders of High Commisuioner Kulagin's ? economic advisor. The chiefs of USIA were, through this Diviction in constant contact with the Directors-Gtneral of SMV, of the Danube Shipping CompanY, of Wien-Filo and of the.SMB and also with econothic ? . specialists of the Austrian and Soviet Communist parties aild wIth the ? ? economic experts of the NKVD. .(See our Report "Aufzeichnung ueber zwei Unterredungen mit Herrn?Dr. D. an ?3 u. 27 Nov l957 of DecembeT 57.) ? ? ? ? In summary, the following can be said of the Soviet economic ? corporations in Austria: ? ? In the early days of the occul5ation, from the Spring of 1945 on, the economic setup was under military admihistration. There was the ? ? ? ? ? Trofeinoye Upravleniye. Task was: plunder, dismantling and transport ? ? ? ? ? of machines, installations and stocks of finished pi'oducts as well ab . supplies for the occupation troops. It was justified by military law. ? In 1946 claimed Soviet assets in Austria were taken stock of, requisitioned and organized by.USIZ in Moscow through the intermediary ? of special representatives and?wiph the help of the KPOe. This was done on the basis of the Potsdam Agreement. USIVA was founded and ? later became USIA. The SMV, the Danube Shilping?Co., Wien-Film and the SMV were created. Within the framework of USIA special importance ? ? was acquired by the Saviet trade chain and lpy JusOwnescAtrans. .The. ? ? same applies to InpraDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? Ministry of Shippimg, Ministry of Films (with which Soy-Export and GOS-Bank were cOnnected), Ministry .of Foreign Affairs to whom the High Commissioner was responsible, MiDistry of State Security, Ministry of ? Transport and the Ministry of Foreign Trade with which USIZ worked ? ? ? in matters dealing with trade and transport questions. (See our report on the foundation of Juschwneschtrans: . "Spezialbericht, Transport-und ? ? ? Specitionskontor Juschwneschtrans, Ivan Popov, Wien IV, Wohllebengasse ??????.. 8" and the report "Aufzeichnung ueber zwei linterredungen mit Herrn Dr. D. am 2j: und 27 November 195701 And finally, the land and ? 'forestry divisions of USIA were under the Land and Forestry Ministry in Moscow. ? ? It is clear that the activity of 11,Mezcow organizations on Austrian territory should give rise to complications and tensions: This situation arose on the one hand becwse of the method of adminis- . ? ? tration employed by Moscow and on the cither because we. have to deal here with Soviet assets in Austria which were governed .b, another . . ?Moscow organization, the USIZ. ? III. Tasks of Soviet Occupation Economy in Austria and Achievements The tasks which fell to the Soviet economic corporations in . Austria have already been briefly mentioned. In a number of reports, . ? . . particularly in the Ereliminary Report, this has )31an gone into in ? ? ? Aetail. In summary, it may be said: ? ? ? ? ? %FiTst off, let it be noted that the e.conomic'tasks cannot be . ? . ? ? separated fromothe political- ones, bilt? must rgher be regardea as a ? , ? ? ? ? ? ? ?? 17. ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? whole, Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ?? ? ? It was also a matter of utilizing.the?Soviet eeommic enclave in ? Austria and the Austrian economy that as linked to it as a bridge ? ? ? to dealings with the free world to breach the Iron Curtain thereby ? ? ? favoring the Soviets through procurement of shqrt.supply commodities, ? the marketing of surpluses and the acquisi.tican of currency. jt was with these purposes in mind that USIA, SMV, the Danube ? ? ? ? ? ? Shtpping Company, Wien-Film, SMB, the USIA trade?chain and the Com- ? ? ? munist Party firms were organizgd. Through them production an6 exchange of goods were made to conform to Soviet! requirements as far as possible, as has been maae plain in many of our reports. Among these .let ds mention J. M. Voith-Werke, Masdhinen-Fbrik St. Poelten, ? Passauerstrasse 301 BesprecDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ? proof of this. We mean the procurement of non-ferwous metals .in ? ? . Austria and .through Austria frorl the free world, the procurement of ? highly important strategic commodities such as ball bearings, electrical machinery, .etc., the marketing of goods drawn from the eastern bloc countries, ouch as tobacco, textiles, victuals ana luxurids al.l of which were sofd on the Austrian market against schillings, part of which . ? ?? were exchanged on the black market.and the remainder exchanged officially in Zurich against forelgn currencies: ? ? Ju.s%t how important the results of all these united efforts were ? is shown in the following table. Further documentatfor. anu explana- ? tions. are contained in the second'and third sections. ? Value of USIA plant production between 1)46-1955 Low Estimate S 27,0000000,000 High " 36,000,000,000 (See Third Section I.2.A) ? ? ? Value of.SMV Oil ProdUction (See IburtH Section !.C) Value of Processed Oil and of Natural Gas ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? . ? Profit therefrom can be cal- culated as USIA Plants' (See Third Section I.2.B) ? OilTroduction (See Second Section, Page ) ? Oil Processing fInd Natural Gas (Calculated on the basis of page 26 of "Pre:liminary Draft") Total profit of USIA an SMV ? ? ? S 6,900,000,000 ? ? ? . ? S 4,530,000,000 S 1,400,000,000 ? S 12,830,000,000 In addition to this must be ? added the tribute, deliveries to . USSR in accordance with State Treaty In all, on the basis of exact figures', namely profits of USIA and SMV plus the tribute deliveries, the mathe- . ? ? ? matically expressable profit the Soviets ? derived from the occupation of Aust.iiia, ? we have ? All figures given. are calculated on ? ? the basis of the value of the schilling in 19.55. ?? ? ? ? ? ? S 8? ,6o0,000,000 ? ? S 21,430,000,000 ? Th9 word "profit," however; should no be in4ierpreted?ill the same* way as in the -capitalistic economic system. What is meant is those ' values NhIch the Soviets extracted from the Auatrlan e.conomy and which . ? ? ? ?? ? ? can be?calculted. hccording to our documentation the Sov.iet- . ? ? ? . . *administerDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? under the?following headings: Administrhtion costs, tarmver tax, ? ? ? ? business tax, capital tax, collection levy, additional profit taxes plus a11 profits. From this may be seen that a great part of profits were siphorled ? ? off as taxes and unlawfully withheld from the Austrian State. An important factor was "administration costs, and only what remained ? was considered to be profit. ? ? AdditionallEr,.there are a number of factors which cannot be calculated in cold figures. So, for instance, there is no mention ? ? here of profits resulting from plunder and dismantlings, since no ? reliable indications are avoidable. Furthermore, there alie those ? financial and political-economical profits anu advantages resulting from the operatiops of Intrac. All this adas up'to sums reaching ? into the.billions of schillings. ? Now let us consider t4 exports made by USIA and SMV and which ? were shipped to the Eastern Bloc and to the USSR. ? Accoiiding to calculations balled on fairl reliable documentation' ? e;,ports from USIA industries to the Soviet .Union ant; to the Eastern Bloc amounted to 38 percent of production, thus: (from 27,000,000,0u?, Low Estimate) ? 36,000,000,060, High ? ) ? ? In addition to this there are. 11 millions tons . ? ? of exported oil*(Value pr ton S 346,-) ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? S 10,260,000,000 li,680,00J,000 ? n..3,8o0,00q,00o ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? . ? . Thus in all exports to the USSR?And td the Eastern Bloc were ? . . ? . ? . . ? .(Low Estipate) S 14,060,000,000 ? ? ? ? ? (High " 17,480.,000,000 If 12,8 milliards came from USIA and SMV profits, it follows that -phere is a remainder of. .one to four milliards which was made up from ? other sources. ? ? ? Thought must also be ziven to the profits of the USIA trade chain and also to those made by Intrac firms through their internationaT ? ? ? ? dealings. (See Fifth Section). We must not. forget either the some two billion schillins taken from the.Austrian government in cash at . the beginning of the occupation. (See"Berichb? ueber die Besprechungen . vom 27. 28 Juni, 2., 4., 11. und 1B Juli 1557.") There was a possible surplus in the form of hard foreign currency taken out of Austria. ? ? IV. Effects on Austrian Ecoelomv ? ? It is understandable that the withdrawal of a quantity of com- modities in he 10 ye.ars of occupation (it corresponds app'ro'dmat?aly ? to one year's nationaY budget) had a highly deleterious effe&c on the Austrian economy. These effects cannot?be?reflecteti through the sum ? ? of sope.20 billion schillings. They wercof.a much more complicated ?? nature. ? ? ? ? ? Ir ? ?? the first place the dismantling of plants which in peace time ? . . ? ? ? ? ? ? did not serve w4/4 brod4qion but produced machines, implements and ? ? ? ?? ,% ? ? ? consumk1 gpOds, reduced the Austrian economy' to a state of shock. ? . ? ..? ? ?? ? . . ? ? ? ? ? .? ? ? ? ? ? ? ? ? ? ? . ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ?? ? .* ? ? 'It was a long time before .the Auztrian economy recovered frOm this' ? ? shock. ? ? ? ? . Very harmful over a lengiliy period were the effects of the ? ? requisitioning of consumer goods, of half-finished and finished goods. ? ? The effects were increased?by the opexations of Zakupotlichnaya Torglovaya Kontora (Purchasing.and Trade' Center) which simply bought up available supplies. (See Report "Au:zeichnung ueber zwei Upter- redungen mit Herrn Dr. D. am 23. und 27 November 1957". al' December 1957.) All these, measoures produced a long-term dearth which, by producing a higher degree of .s4.ckness and a lowering of reistance to disease had an effect not. only on the death rate but also on the number, of ? births and therefore affected the country's population figures. Such ? losses can hardly be translated ihto?figures. ? ? ? Even in the realm of economy there are loss factors which cannot ? be reduced to figures. For instance, there were those plants whose ? production had to be switched.over.to satisfy Sovie demands. This ? produced a machine park which when turned back to the Austrians had ? to be written off for the greater part. ? ? ? ? Fuithermorel?this prooess did not provide. for the normAl training . of teehr2ica1 and Apecialist workei's. When the, Soviet economic enclave ? was liqutdated and incorporated into the Austrian system steps had ? ? 'to be taken to provide for.the traibing of such Itorkers. (See the ? ? ? ? first Waaper-Bivo report.) ? ? ? ? ? ? ? ? ? ? ? ? ? ? 24? ? 0 ? ?? ? ? ? ? o ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 e=" ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Our ree:eardia.has also revealed?that the Soviets made investments ? ? a mtAch lever degree than should have been done and as a result . ? . ? Many hundreds of millions of schillings had tbsbe epent by Austria to ? refurnish the run-down plats. ? ? ? Of particular importance was the damage done by the activities ? ? of the USIA trade chain, parficularly the ORT stores, by the practices ? ? of Intrac and by the.Communist and Soviet trade and transport firms. ? ?? (See Fifth Section).. ? ? ? ? ? ? We can only indicate here the damage incurred by the Austrian economy through loss of customs tax revenue, through non-payment of ? taxes and through non-observance of administrative regulations. Furthermore, the Austrian economy suffered through the practices of ? Letex, Ort and Intrac. firms which through. legal; half-legal and illegal ? means sucked up valuable raw materials such as ;rood, non-ferrous ? ? metals and expensive machinery in exchange for which other commodities ? ? of less consumer value, such as tobacco and vegetables, were given. A separate study would be necessary to calculate all this damage in a scientific manner. A rough estimate would approximate 21 billions ? ? and this sum would have .to be added to the 21 birlion schillings which-- . ? at the lowest estimate--the Soviets siphoned off from Austria. ? . . . . . .. .? ? .?11,? ? ? 25 . ? ? ? ? ? ?? ? :' ? ? ? ? ? ?? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? Second Section ? ? SOVIET PETROLEUM ADMINISTRATION ? ? ? ? ? ?? ? ? I. Development of the Austrian Petroleum Industry Before the Anschluss 1. Oil Indurstry Up To 1938 ? A petroLeum industry existed already at the time of the.Austro- Hungarian monarch.in Galicia and in Bukovina and was the world's ? third largest producer. Regulator legislation was promulgated on ? 11 Ma..1884 and on 9 Januar. 1907. It laid down that the right of ? ? exploitation of oil wells cotad be separateDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? and .Errgineer F. Musil. They? lay, however, ouDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ?. the mining authereities in Lower Austria distrj.buted.the i7ollowing prospecting licenses: ? Korneuburg: J7 licenses to the Oesterreichische Petrolindustrie A.G. ? (Opiag), later acuired by Elweratti. ? ? ? ? Pellendorf-Schleinbach: 57 to Musil, later acquired by Explore. '1027 ? ? to Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ?? ? ? ? ? ? ? ? Hausklrchen: 28 licenses to Musii, fater sold to Van Sickle (1935). Hausbrunn: seven licenses to Oskar: Poeller, later sold to DEA. ? ? Zistersdorf: 15 licenaes to Thomas Laszcz, later sold to .EPG. ? Neusiedl a.a. Zaya: 20 licenses to Musil, later sold to Dr. Schmid - ? DEA. . ? ? Steinberg: seven licerrses to Mtpil; ceded by him to ITAG. . . ? ? Muenichstal: 30 licenses to Mt2sil, sold tp Explora. Hauskirchen - Prinzeridorf: '0:o licenses to Apollo ? Erdberg - Ginzersdorf-Muehlbera: 107 licenses td Dr. Back, later sold ? to DEA. ? Risdorf: 56.1icnses to the City Electrical Works, sold to DEA. ? WalterskIrchen: seyen licenses to Ranzo Pigi, sold to Winnesmann. ? Schrattenberg: Schmid-Mannesmann.. ? Steuerbezirk Poysdorf: 80 licenses to Erdo? el-Bohr - und Verwert.ungs-Ges. 20 ' Gewerkschaft Pfonier: ? ? Steuerbezirk Mistelbach: 79 lice.nses to Erdoel-Bohr-und Verertungs-Ges, ? Steuerbezirk-Zistersdor* 60 Steuerbezirk Laa a:d. Thaya: 117 ? ? ? ? ? This shows that all productive areas were covered I); prospecting licenses. Nevertheless, there are a number of reaspns why drillDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? S ? ? ? ? 2: The small qomestic bil capital still held the Galician oil ? ? field13 and was afraid of invepting.money in Lower Austria oyer ? which the shadow pf Hitler alre.ady hung. = Big Austrian private and bank capital did not see 177hwe its duty lay and neither did it .see where good businesp?was. ? Thus th;re wer6 only two small foreign firms which we.re ready to ? ? go to work when the Steihberg-Dom near Zistersdorf, recognized as ? presenting the best prospeots, was opened up. They were*thp Steinberg-Naphta, founded?by Polish oil industrialist ? Thomas von Laszcz '4th French capital, in the Goestihg area, anu Raky- ' Danubia which* belongeu to the German Dr. Anton Raky anu which net to work in the Windisch-Baumgarten area% Execution of the Crilling work ? was done in accordance with data provided by Geglogists Dr. Friedl, ? Prof. Schnabl and Dr. Sommermayer, Chief. Mining Consultant Waagner and drilling experts like Engineer Thon and flaky, etc. ? Eighteen shallow hand drillings re made as well as one to a depth of meters. Steinberg-Naphta ran out of money before success could be achieved, but Raky-Danubia head on and went through tc: become a ? pioneer with tDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ?? ? ? ? This output proved, howevenl.to'be too small to lure out more ? capital. But then the Vienna lanker.Albert Brunnbauer raised money ?? . in Switzei:Iland.to open up the Steinberg-Dom and he founded the Erdoel- ? Produktions-Gesellschaft m.b.H (EPG). On SO November 1932 oil came in at the Goesting I well at a depth of 735 meters. The official production figure was put at -*IWO ki19grams per ? 105minutes - several tank cars a day. But this well was also technically mismanaged. ? On 16 Mardh 1:, Dr. Friedl published a paper in which he indicated ? three possibly hopeful areas: 1. .The South-West end.(Paas.dom) ? ? ?-? . ? The Middle paIrt (West flank of the Steinberg Dom). The North-East end (Rheintal arep.), ? ? The first economically 'profitable drillin was carried out b-,? the . ? EPG when oil wa8 struck at Goes#ing II well on 21 Aukust ltFDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ? ? 0 ? in 1935 by. Vacuum Oil and Shell companies. Drillipg made by the ? ? . Canadian R.K. van SiCkle in 1937 at first proved unfruitful. ? ? ? ? The following tableDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? , ? ? ? ? ? ? ? ? . ? ? ? ? ? . ? ? ? . . ? ? ? ? In 1927 the Koyneutrarg Refinery Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ?? YEAR ??? . ? ? PRODUCTION 1941 1942 ? ? ? ? 623,815. tons 367,797 ? ? 1943 1,103,783 ." 1944 1,213;515 1945 153,587 ? 2: influence of German Oil CvitQl A. Petroleum ? ? ? To start off, tkie German oil concerns went to work, with considerable ? success, to persuade the prospecting.licensees, more or.less legiti- . ? mately, to self t.heir rights. For the major part these were the Deutsche Erloel AG, called DEA, ? ? the Elwerath Union, WintQrshall AG, the Kohl? Union, Koller 'und.Sohn, ? ? ? ' Itag, (Hermann7 von Rautenkranz) and IG Farbep. These concerns immediately ? . . ? . . . established branches in Austria. In addition to this Itag obtained ? ? through the Lucern contract of 21 October 198 with the English Cit:i ? ? ? and General Enterprises Company: the Steinberg'-Naphta AG, the Erdoel- . . . ? ? ? ? Bohe-und Verwertungs-Ges.m.b.H., Terrol and the Pionier Company. ? ? ? Immqdiately, the Rohoelgewinnungs AG began intensifying its erst- - ? while slow exploration .work. Already by 19,3 it was in a position ? ? ? ? ? . . . open up the Gelselbeilg Field and, in 1940, in collaboration with ? . ? ? ? ? ? ? Eurdgasco, to find the presence .of natural gas near AcirVlaa. ? ? ? ? ? . . ? . The take-ove'r of German oil capital: Was slovted down by he fact ? %' ?. ? ? .. ? . ? . ? ' that ?Lho. mpeit imPorta:rit;Par:t of thc Vienna Bain was.in*the hands of. ? ; ? ? ? ? ? ? ? ? ? ??? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? . ? ? . . ? ? . . ? RAG. A compromise was found in the forthation of the so-called REP . . . ? ? ? ? ? Syndicate in which AAG, Elwerath and Preussag pooled their. resources. ? DEA then opened up the richest oil yield, St. Ulrich, and Itag ? ? ? went to work on Muehltiergfeld. ? ? ? ? ? In order to protect its oil interests more directly and permanently, ? ? ? ? ? ? ? ? ? ?IG Farben founded with 1,000,9.00 RM from Benzin Naphta a company cF111ed? ? ? Donau G.m.b.H. In 1942 IG Farben toqk over the'Austrugasco concern. ? ? Of its 12b shares, 0j) became the propert. of the AmmonLak Werrc ? Merseburg and 6 remained in the possusion of the 'German-American ? ? Petroleum Company. Between 19 --19.0 Runnel AG became the propert:, of ?Mannesmann Roehrenwerke. The main interectt of Rumpel AG was in dril- ling and in the (onstrqction of pipes. ? However, all these measlares and successes were not sufficient ..for ? the German oil interests. As a result Austrian -mining laws were ? declared inoperative, German mining law was introduced an at t'he same time the Bitumen law was introduced on -;1. August 19 ?.J. .This law de- clared that Austrian prospecting licenses were null .and void. Those ? ? licenses which were declare,: valid brought about the following distri- .bution of oil wells: E. Z. 0 Grubenfeld ? ? ? 31 4.37 ? ? Hedwig Hortensee (.EPG-WINTERSHALL) ? . ? Gldckadf, Gldckauf . Maria. Wien I. ? ? ? ? ?? Regina44aria-. . ? ? ? ? . ? 'Barbara, Pionier. ? (ELWERATH) ( ? , . (EPG-WINTPSHALL) ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? E.Z. 90 Grubenfeld Steinberg? ? ? ? ? ? ? (STEINBERG -pAPHTA) ? 93 " Zistersdorf -4 ? (RAG) ? .? " 95? " Zistersdorf -B (RAG) . ? " 96 " Geiselberg -A (RAG) ? 97 U11i . (RAKY-DANUBIA-KOI;LER) Geistlberg. -C (RAG) Zistersdoilf -C (RAG) ? 101 ? . van Sickle II, III, ? IV, Y, IX, XI, .P1a:ttwa1C. '? 162 ' St. Ulrich A,B,C,D,E (DEA) ' 10; ' 'L-Istersdorf -E (RAG) 101. Aderklaa I. (RAG-AUSTRO(ASCO) ? ? ? 105 Hohenruppersdorf (RAG) ? ? Furthermore, Austria was turned into one oil coricession of 24,21 ? . .square kilometeu. Through the offices of the Reich Economic Mfnistry ? ? an in the name or the Grman Reich these concessions ware mainl?, given ? oui to Germes. firms. ? The owners of i.rospecting licenses which had lapsed because of ? ? ? ? ? ? ? . lack of success were recompensed for work (Ire. ? ? ? The following is a'list of concession and their owners: 1) Lundenburg 2) Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? .? ? ? ? ? ? ? ? ? ? ? ? ? ? . 6) Ameis PREUSSAG. 71. Siebenhinten? ? ? 8) Mistelbath .9) Taasdorf ? ? 10) Leis ? ? . . 11j Korneuburg 12) Hol1abrunn ? ? 13) Laa a/Thaya 14) Porlitz ? 15) Ausspitz ? 16)* Ober Laa % 17) Enerersdorf ? 18) L.)ithagebirge ? 19) Neusiedlersee ? 20). Odenburger Pforte ? ? 21) Pullendorf 22) Nordsteiermark ? .2) Mittelsteiermark . ? 24) Klosterneuburg ? ? ? 2) Tulin ? ? ? . 26) St. Corona 27) St. elten .28) Kilb ? ?? ? ? 293 ScheibDs EiNERATH PREySSAG .gPG ? ITAG RITZ ITAG ? DONAU-0L . kOHLE-UNION KOLLER eyi SOHN PREUSSAG DEUTAa ? ? ? KOHLE-UNION . ELWERATH ? KOHLE-UNION KOHLE-UNION EPG WINTERSHALL EPG DONAU-OL RITZ & CO. RUMPEL AG. . EPG ? ? KOLLEff 8: SOHN ? ? ?? ? ? ? ??. , Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 - ? ? ? . . ? WINTERSHALL 39) Amstetten Kouglot & sogN 31) Bad HL.11 ? ? PREUSSAG 325 Linz ? . DEUTAG 33) yettenbach ? 34). Weis G.D.S. DEA Innviertcl Elwerath 36) Hausruck ELWERATH ? 37) Braunau 38) Hauskirchen, Mauotrenlr. Hohenruppersdorf, Adurklaa NIEDERDONAU ? 39) Osting .40) St. Ulrich 41) Hausbrunn . . ? 42) Steinberg . ?? . ? EPG ? ? DEA DEA STEINBERG -NAPHTA The biggest and most va1ual51e concessions, comprising the central . part of the Vienn4 Basin, wei.e those belonging to Niederdonau Ges.M.b.H. In whose territory blqe Aderklaaer and Mat7iner fields were disccvere,I. Because the German firms cou10 not come to an agreement they were sLait up in the :ollowing manner:. DEA with.21,375% ? ? hlwerath 21j75% . . PreDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? . ? . . Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? 26 November 1942.. Capital was 20,000 RM of which Elwerath held 50 % ? ? percont an.d the other two companies 25 percent each. ? For the improved exploitation of the Hauskirchen field the above ? ? ? ? three companies founded the Zaya-Gas-Ges m.b.H. with a capital of ? RM 30,000. Each held one-third. yhe Reich took only nominal sums for ? *administrative purposes anext the concessions. .Development tax was five percent. The percentages paid out to the oil.ginal owners had been between : 15-30 percent, but through an agreement this was reduced to 2-4 percent. In comlusion it may be pointed out that up to the end of the war the .above-mentioned Muehlberg field and *a small one near Maustrenk were opened up. Preparatory work on them had been done earlier. Although exploitation was pushe,-, hard, it must be pointed out that nota single drilling was undertaken ;in what is today the richest part of ,.he area. At that time the area showed no signs of offering any . ? ? possibilities. ? ? ? Bt Natural Gas ? ? ? ? Later, when natural gas was found in all areas, a company called ? Erdgas G.m.b.H was established by Elwerath (2; percent participation), Wintershall (23 percent), 'Preussag (25 percent), Donau-Oel (12 percent) ? Itag (si. percent), Steinberg-NaPhta (seven percent), Niederdonau ? ? ? ? ? G.m.b.H (two percent). And EPG .(two percent). ? ? ? ? The-objective was to take .possession of all the gas produced by ? ? ? ? ? - these companies in the 1:?anube-Alp8 provinces and in the Protectorat.e ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ??? ? ? of Czechoslovakia for their own use and .to market the remainder on a common basis. ? ? ? On 1 August 1943 the Suddeutsche Ferngas AG was founded with headquarters in Vienna. Capital was RM 4,000,00Q. The founders were: The German Reich (with participation of). ? Communal Administration of GauVienna ReiChsgau Niederdonau ? RM 2,040,000 ' 980,000 ? 980, 000 . At a general meeting on 7 Novethber 1944 a capital increase of ? 2,000,000 RM was decided upon, but never realized, although .the Reich paid its share of RM 1,020,000. ThroLigh the establishment of Ft,rngas Alpine nrdvi,nces the supplL of gas for Donau and/0.111*nm was to be incorporated into ? the Reich gas network. During this period one-third' of the aswas wasted in the air. ? Further exploitation of natural gas, namely for automotvc pur- poses, was to be carried out through tlie BV Methan G.m.beli which was foundeu on August 8, 194-. Capital was RM 50,000. Participating ? companies were Sueajleur,s0le Ferngas AG in Vienna And the Kohlenwerts- ? toffverbaneie Aktiengesellschaft, and Gruppe Benzin-und Benzolverband inDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? This was a cracking *plant. Nova's capital in 1924 amounted to ? 600,000,000 Crowhs. (Nova, Brennstoff AG). This company was in the ? ? ? hands of the Societe des Petroles de Dabrava. According to the balance of 1)27, .the capital was established at (1-1. 300,000. Shortly before the beginning of the war capital was Sch. 1,200,000. (120,000 shares 9 Sch. 10.) Chief shareholders were: ? Societe Continentale de Petrole ,t/f -Sont-inale Petroleum AG in Vadu Societe Francaise Industrielle et ? 7),7_2 Comtherciale, Paris 20,248 ? loo,bop. ? These, two companies belonged to the Malopolslq concern, Just like ? the sister concerns of Galiz.-Karpathen and the Gali7.-Naphta. Since Galiz.-Naphta and GalL.-Karpathen had taken out greater credits in ? Austria--Oesterr.-Kredit.Ad and the Wiener Bankverein--the German ? Gauleiter proposed that the*Malopolsky concern's debts should be com-. pehsated for ID:, the purchase of the Nova stock. DEA thereupon purchased Nova through the intermediari of the Laenderbank in Berlin. ? DEA .also concluded an agreement for the liquidation of debts with the ?? ? Societe Francaise against claims. When war broke out DEA possessed ? .104,674 Nova shares. After the introduction of the Reichsmark as ? ? ? . ? ??. . . currenc,, the capital :/as readjusteu to '300,000' RM and then increased ? . . ? .. tb RM 1,600,000 when tha first Reichmarl: balance sheet was introduced. ? . . . % . . ? The Kdrneuburg?Rbfiner?;?? . ? ? . . . . ? ? ? .? . ? .? ... was predominantl:, Swiss and. ., ? . . ? ? ? ? ?? ? ? 42 : ?? ? ? ? ? ? ? The Korneuburg Refinery whoseecapital? ? ?? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 0 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? .? ? ? ? ? . ? Rumanian, was acquired by. the Deutsche Gaso12n. AG. The Swiss rrapc ? ? ? claims of 640,547.38 of the?Wigamur Company of Churl Switzerland and ? . 874,254.15 of Aktiengesellschaft Alma, also of Chur against the Korneuburg Aineraloelraffinerie were transferred to the Creditul Minier ? S.A.R. of Bucharest and .to the Montan-Union AG, yienna and then trans- ferrei by these firms to Deu%sche Gasolin, Berlin. ? IG Farben?held a .50 percent intereQt in Deutsche Gasolin, while ? Anglo-Saxon and Standard Oil each herd 2", percent. In Septeml-.)er 1940 . ? ? .capital was RM 300,000.. ? ? ? ? ? Until 19-18 the installation of the'refine, was of the continual crude oil distillation process (four blowers of 3-tons capacit:i: ? ? ? daily capacity 1U0-200 tons); high.vacUum installation's, ben2in recti- fiers, lubrication oil refiners as well as aDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ?? ? ? ? ? ? ? ? ? ? ? ? ? q. ? , ? : . plug a lut,rication'oil Winery with a maximum monthly production of ? . . ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? . Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 .? ? ? ? ? ? ? ? ? ? ? ? koduction dropped by about onezthird and the output of the liefirmries wen? t down by 50 percent: Drillng machines and other apparatws were ? taken out df Lower Austria oil fields and sent to' the west wriere they ? woula be in les danger (St. Poelten, Amstetten, Upper Austria?and ? ? Salzburg. 'This apparatus and .he machines were lo? st forever for. the ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? 5. Pumps ? 6. Meta.l working latYies 7. Cables and?electric wires . ? ? Quantities ? ? ? 100 ? ? ? ? 145 j65 .6. Steam boilers 32. ? ? 9. Drilling equipment ? 1,000 tons 10. Hoisting blocks 21 pieces ? 11. Pipes 1..),09.) tons ? 12. Pump rods n. Wire cable 24r 260 14. Armatures ? 406 ? 15. Tools, *Supplies lb. Chains (roller chains) ? 1,00 '140 ? (This was Page one of the order. It was signed: ? Kommando?of the Red 4rmy: ? Col. Engineer Akishin Lt. Col. Aktshurin Engineer Lt. Col. Kamin'ski Lt. Col. Crpsdov. Brought to tile Notic? e of the High Mines Authority ? Ministerial Councillor: Dr. R. Mayer. ? ? ? 0 ? &) not part ce?complete installations. ? Order of 3 June 194:. (Continued) German Property ? .46 pieces ? ? ?To USSR Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ?? ? ? ? ? ? ? ? Getman Property ? '192 pieces. ? % . To USSR ? 84% . 168 pieces ? Remain 32 pieces ? ? ? ? 94 ? 74% 74 ? 26 . ? ? 145 73% 107 36 ? .-20 tons .68% tons 11!) tons 10 pieces ? % 31% 10 pieces 22 pieces 14 67% 14 ? 7 .? 862 tons. 80% 805 tons 19. tons ? 11,,900 ? 60% 12,000 . 192 " ? (0 ? 16u 260 30% 210 ' 50 4,32 62% _)50 1,2 1;410 ? 70% 1,060 440 " 9.2 ? . 65% ?55 ? ? ? Noted lpy Committee .f Austrian Oil Companies. (signed) H.G. Ulrik ? ? Director: Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ?? ? ? .? ? ? ? 1. Natural gas installations at Semmering, Aderklaa and ? Zistersdorf. will remain intact where they are. ? 2. In Stammersdorf there will remain a functioning gas ? ? pumping station comprising three compressors. BV Methan undertakes to complete buildinz, of the tree remainimg com- pressors which are to be taken. to Rut3sia.. From the same installation 24 storage tanks are to be taken to the Soviet Union. ? ? ). Natural gas tanks at Bullendorf, Neusiedl, Hohenruppersdorf and ? ? Gross Schweinbarth arc tc.5 bc tr-orcon :zmplete to Russia. ? DV Methan under-Cakes to complete the three compressors at Gross ? Schweinbarth, name7j to complete the lacking armatures. Kommando of the Red Army Engineer 1.t. Col'. h. Kaminski ? ? Committee of Austrian oil firms ? Dr. Aberer ? ? Dr. Fried' Dr. Haus.wirth. ? ? ? ? BV Methan GmbH ? Koller. ? SuedoWet4sche Ferngas AG . EngDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? B. 'Reasons for the Dismantling Policy Our sources give the following assumed reasons for the Russian ? ? . disman'elings: 1. An oPder, plainly emanating from Moscow, that as much productive machinery as possible should be dismantled and ? brought to the SoDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ?? ?? ? ? ? ? ? ? ? ? ? ? According to the already often-mentioned Dr. rripell who actually ? ? . ? ? experienced these events, the Soviets originally intendeirto form a ? ? ? mixed SoviDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? IV. SMV Orgabization, Work'Methods and ProduCtion ? 1% Foundation of the SMV ? ? ? ?? ? ? ? In order to achieve the planned development and exploitation of the'Austrian oil fields, OctOber 1945 saw the creation of the Sovyetskoye Nephtyonoye Upravleniye. Th p initials SMV stand for the ? ? ? ? German rendering of this, namely SowjeUsche Mineraloelverwaltung.. Offices were at first in Vi6nna in the Kantgasse. Our documentation ? stresses that wit? h this seep the end came to the epoch of military ? ? ? ? administration of the (oil) region. ? ? Formation and development of SMV was ?a result of the *work of specialists in tn Moscow PetrOleum Ministry.. The relative positions ? of SMV and USIA are not known with exactitude, but one thing is certain and?that is the connection 'was a close one. 1t is also evident that ? ? the two were from the very beginning cqnnected through the SMB ? financial institution. ? ? ? ? .It is also clear that USIA and SMV gave each other mutual support ? ? and exchanged neeaeu stipplies between them. Our specialists report ? that from the very beginning SMV gave support to the USIA industries ? in that SMV as obliged to purchase materials from USIA at pricgs ? ? which the SMV considerea too high. It. Ilould therefore appear that ? ? economical ly speakinf the SMV?was the strongersince it went rapidly . ? ? ? .info production and was able to translate its wares easily int9 cash. - ? ? ? ? .? ? In acco? rdance with the Potsdam Agreement's stipulations SMV took ? ? ? ? ?? . ?? :bver the fcqlowing German ail cmcerns and their spheres of influence: ? . ? ? ? ? ? ? ?? ? 52 ,? .. ? ? ? - ? ? a- Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ?? ?? ? ? ? ? .? ? DEA ? ? ?? ITAG IIMERATH ? : PREUSSAG WINTERSHALL STEINBERG-NAPIJTA RUMPEL ? ? ? ZAYA-GAS. RgEINTAL-GAB . ERDGAS ? :FERNGAS BV--METHAN ? ? ? ? ? DONAUOEL ? ? ZEpTRAL-TANKLAGER, and all the ? assets of WIY0 in Lower Austria. They alsp took over the follo,ring refineries.: SCHWECHAT KORNEUBURG ? WOESENDDRF MOOSBIERBAUM ? ? KLEDERING OKEROS ? Seizure of the Lobau refinery was justified with the following oral statement fr? om the Legal Division: ? ? "The Lobau refinery was established with the aid of important ? ? German means and restored after bombing attacks." ? In 1946, Soviet administration also took over the fuel distri- buting companieg along' with their tank installations in the Soviet ? ? . . Zone. In 1947, the two compani.es Gasolin'anu BV (Benzin-Benzol-Verbanu) ? ? ? were merged and formed Orop. Orop was,a formally established compau . . ? ? ? with pares, formed in accordance. with Austrian law. However, .the ? ? shares were in the hands of SMV. In addition, Orop had to pay rent ? . for their seized tanks.. ? ?? ? ? ? ? ?? ?? ? ? ? ??. Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? 2. Organization: ? ?? ?? ? A% Development ? ? ? ? ? According to all our information SM was under 'the orders of the ? Moscow Petroleunf Ministry--witivexception of the not-too-clear ? relationship to USIk. The Ministry sent its best specialists to. ? SMV and, there were continual visits from the control commissions. ? ? ? ? Although the SMV did not enjoy the status of a juridical person ? ? ir the eyes f Austrian law and was not even entered in the Commercial Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? SMV's General Direction and its DivisioM wer'e divided int6 plants ? and subsidiary plants.. This difference wap not stremgly.stregsed in ? ciur? "Spezialbericht: Organisatorischer Aufbau der Sowjetischen ? ? ? ? Miveraloelverwaltung SMV, Vienna, June 1957:" There, the differences ? ? of the divisions were not ezplained ?on the bgais'of available personal ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? General. ? ? The following weresome of the Divfsions: ? Commercial . Auditing Main Accounting Geological F2nance Drilling ? Investments ProductiOn Legal Manufacturing Housekeeping Mechanichl ? Personnel SecPet. Plans ? ? ? ? ? The tasks of some of the divisions are self-explanatory b, their ? ? names. The following table gies a graphical representation thereof. However, let it be noted that the Secret Division, among other ? things, tobk care of documents, instructions and correspondence between the Soviet authorities in Austria and in the Soviet Union. This Division was called Division No. I and occupied offices on the first floor of the ? Kant3asbe. The windows of these rooms were barred and a Russian MP guard ? stood before the door. Personnel Director Eichniger and in his absence ?? ? his deputy Koerb? ? ? ? ? ? ? ? ? ? 0 ? ? ? ? a .? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ? ? ? ? ? Declassified in Part- Sanitized Copy Approved for Release 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 . . ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? I-. ? ? ?????????????.??????????????????????????????? :???????940.0.1?????????=???????.?????*?0?4?.M.??????*???.?????../a? A ? ? ? N? i?- A .1. ,l ? ?"" t s.i. ? lin- 0 ' in /I ???? F -- :al.,' Div Re- view Pri..,,,tu ..tior. Div Planv, Labor Div Proce Ding Div Per- Lui:al Flonnui Div . / iv Jril- lirw Div ? .0.L113 C - Comm. .etping D.iv )iv Secret Bunnu Invec nen r I..o Div --.24ch anist.a.1 Div Gcologi- cal DiN.? . . , ? ? ? ? 'I. \ rint ri.eu ,ndort* Sutn-.31 liar; nantu el.craiI.: ? ? ? ? ? 0 ? ? ? ? ? ? ? ? ? ? ? VI I ' ? n ? r: ? t ; ? 1 ? ? ? ? ? ? ? ? ,au. Kurneuburf, , . ? 31 . rust! e 'Parka ral ?rocux ement N ?u Warohoutse .4?t.11Fmt. " 114.3tri t -Gatriltr. 1R13.511b21?)221L 4gRataIckgsgio ? ? ? ? ? \_..21 I' ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 0 0 0 0 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ?? ? ? ? ? ? we're discussed with the'Plans Division. of the General-Direciordte% ? ? ? ? As we haNe?already.pointed out, the General-Directorate had undeil . ? ? it a number of directorates heading up plants and subordinate plants. ? ? The following plants we.re directed by directors: Drilling Installation Prottes. ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ? Engineer Korneyev for drilling* ? ? ? ? ? ? 2. .Director-General Engineer Ckernomorsky (refineries) ? ? !Zeputy: Yeskov (drilling specialists, finance) ? 3. Director-General Engineer A. S. Sidorenko (drilling specialist) ? Deputy: R. U. Agalshanov (FinancesY ? Deputy: 44. D. Pavlov* (refineries) 4. Director-General: S. F. Cheplakov ? Deputy: Nazai'etov ? ? Defputy: W. D. PaVbv* (Finances) ? Main Administration ACcounting. Chief Accountant - K. D. Mamikonjan ? Accountant Finances Kirillov ? M. F. Djomin* ? A. S. Swirionov - J. W. Ulibin - M. F. Dyomin*. - P. F. Chernov - Rudomotkin ? - Ustinov ? ? ? * is plabed against names QC men who had?moi.e ? than one function. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ?? ? Review ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? Processing Plants ? Aderklaa . (founded by SMV) Klapchuk* W. I. Vorontsov ? ? ? ? Muehlberg (contd) ybttov Perepilitsin* Kulyev ? Auersthal (Bockfliess) Ryapozoy (founded by SMV) ? Ossinov* ? Klapchuk*. Pogo-toy ? ? Ossipov* N. S. Demchuk Gorbatov* " Neusiedl N. S. Lutsov* . A. I. Perewerzev* Klapchuk* Matzen ,A. P. Koslov* ? ? (founded SMV) ? ? KlapchlIk* Ossipov* . S. N. Lutsov* Muehlberg (founded by SMV) ? Capt. Sergeyev Tare zenko Otrestienko .Kusnichev ? ? ? Gladkov ? ? ? ? (with DEA Neusiedl) I. P. Chapurin ? Erdgas G.m.b.H. ? (Erdgas, Ferngaql Methan) A. P. Koslov* N. G. Syomin EPG (Mixed firm) Otreshenko. ? ? ? A. P. Kosios* ? N. S. Demchuk* . . ? I. P. Ilapurin* ? ? ? - ? *. ii placed against narnes" of. men who had? 'more than dne functipn.' . . ? ? ? ??? ? ?? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Bur.6au for General Depth-meter repair ? ? ? ? ? ? .Lobau Tank atation ? .1. N. Solovyv (founded by SMV) ? ? *Lesovoi Pe*Ocevitch ? Auxiliary Plants W. I. Vbrontsov* ? Refineries Automobile &Tractor Office ? (founded by SMV) ? Schwechat (*Nova). ? ? ? ? ? Selitski' ? A. A. Miose, ev Geophysical Office GerasimeDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? .? ? ? ? ? ?? Auxiliary Plants, contd. ? ? ? Mechanic Shop Siebenhirten (Organized from Rumpel) . A. W. Pupshev ? ? ? ? ? ? ? ? ? ? ? Drilling Plants (Organized from the Rumpel Co.) ? Zisterbdorf Dyetchkov ? ? ? ? Subkov (possibly Zubkov) . Sukhov ? Prottes ? Lovkin Aderklaa ? ? ? GoshoVsky ? ? B. B. Shwetsov Mallnin Nov ikov Adaldivev ? ? Zistersdorf-Prottes SuIchov ? ? Anissitsov ? ? ? ? ? ? ? ? ? ZisterE;dorf-Prottes-Aderklaa , ? ? Anissitsov ? ? ? ? ? ? ? Kornyefto ? ? ? ? ? ? ? ? ? ? ? ? ? ? N: D. Koch ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Aligulyan (Chief Engineer) . ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? a ? ? ? ? ? ? ? ? ?? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? 0 ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 .? ? .? ? ? ? ?? ? Buildiag Administration A. T. Averin Procurement (Tech. Dt.v.) A. S. Tarutin ? ? Plant Guards /1. W. Putrov ? W. T. kherusho . ? ? ? .? ? (See also our personnel list in AppeeldL to 1 Report A. C. of Sept. 56) The directors and leading officials Are almost all Russians. The ? Soviet officers who took over the oil industry in 1945 were otther ? ? political officers or men who had .a technical profession in civil life. ? ? ? ? Soon, however, the staff was changed and qualified oil specialists made ? . ? ? ? their appearance--some of them were young graduates and there :were even ? some faculty trrambers. In the later years there were also some Polytechnic ? ? graduates, some of whom were tulined as technicians and others as. book- keepers. ? New political officers also made their appearance. They were men ? ? who had trained for this service a? nd who spoke German. ? ? Itis interesting to note that all Soviet officials in the SMV '.re ? . ' obliged to make a continual study of the German lanfluage. For this ?? ? purpose courses were organized and a command of the language was re- . ? ? ? ? ? ? warded with a bonus. ? ? There were considerable differenCes in the qualifications demanded ? ??? ? ? ? ? ? ? ' ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? Y. ? ? ? ? their subject, while tlwre.were others who. had to depend o:. their ? .? ? ? ? ? ? ? ? ? ? S. .. ? ? ? ? Austrian collaborators. However, if a Soviet technician was plainly ? inept he was Immediately recalled home. . This also happened to him if ? he consorted too much with AustriAns or if he fell victim to the lures of his capitalistic surroundings. ? C. hccounting, Plans and ContPols ? ? (a) Accounting ? ? ? Each one of the?above-mentioned.plants was a separate accounting entity--shut off from the others. .These independent plants accounted for their products between themselves. Their plant accounts were re- . ? ? conciled b.j the accounting department of-the.Central Administration . ? which established the balance sheet of the enterprise. ? ? ? ? Each Individual plant hat' its separate system of accounting and ? this lea to the creation of plants and plant-groups on the books. Such were: ? ? Drill Plants. *These were dkvided up on the books in accordance ? ? ? ? ? with their specialt, such?as: Bureau for Structural Drilling, Bureau for Geological Research Drthing, and Bureau for ? ? Deep Drillings. ? ? ? . . . The?Bureau for Geological Reearch Drilling and theBureau for ? ? ? ? ? Deep Drillings ceased to exist on the books as.inependent organizatiom ? in 1951-52. ? ? ? ? ? . . ? ? .. . % The cost of 'pro4uctive drilling was?laid to the account of the . ? . . : . ? ? ? . . . plant which undertook the dralincend which was eedited witfran annual ? ?? . . . ? .. ? ? ? ? ? ? ? ? ? ?. ? ? .? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? 0. ? ? ? ? ? ? ? ? ? ? ? ? . ? ? ? percentAge. The cost of fruitleas drillings was calculated by the ' ? ? ? ? ? Central AdminietraZion an pro rated amorrg all production plants: ? ? Production Plants. The production plants were glasslfieu for the ? ?purposes of accountin;L in accordance with the locality of the wells,. ? . ? ? ? as folleas: Aderklaa, Bockflieso, 1aten, Muehlberg, Neusie61, ? ? Erdgasbetrieb. ? ? These?wet as an. .rue oil pro,uction plants ha a to calculate ? their total production on the basis of average. prime cost (plan prices) ? at the warehouse. Transport is calculatee?in the same manner on aelivery at central storage. The available amounts of :et as were chargecI on the badis of prime cost to Lrugasbetrieb: This was the plant ,hich was ? in charge o .istribudon of this wet gas. Eregassetrieb was lurthermore in charge of all r ;as wells in that.. ho1e enterarise, rca;areless of ,:here the ineivi.ual eel's were. ? ? Rel'ineries. The refineries :ere also eealt .with on a basis of ? ? localit, :ita rears to the atcountan(;. rhey%aere: Korneubura, Labau, Moosbierbaum, 5(hweehat, Voesenuorf, Kleuering. ? ? ? ? . ? Central Tank Station. The.same applieu to the Central Tank Station. ? All products of the produtt.ion plants an also of the'refineries erc . : ? ? chargbt to Central Tank. Station, anu then rreeiteu to Central Taqk ? . ? ? Station on ,?elivery to foreigil firms. . ? ? ? ? ? ? ? . . .11.24L1LLID.2_12.11.s_. The awiliary plant mentioned below were also ? ? ? ? ? ? ? ? . deemed to independent as far as the accounting stem ,4as.conce;Inect. . . . ? ? ? ..These plants perfopm6U serv.icep As required by produ:ction plans for. ? ? ? ? ? ? ? ? ?? ? .? ? 6t) . ? ? ? ?? ?? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ?? ? ? ? ? ? ?? ? ? ? ? other SMT plants, and chal-ged for them in accordance with plan prices. ? ? These auxiliary plant's were: construction plants, AutomtStive Transport ? Division, Geophysic Division aDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ?? Central Accountirm. ? ?? ? Each month, Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ' Where necessary, some accounting department's hE.Id one.or more . ledger chiefs or'salary calculators. ? For disciplinary purposes the bookkeeping staff was under the ? orders of the plant manager, but as .far as their method of work was ? ? ? ? concerned they were responsible to Central Accounting. ? ? Tables 1 through 3 are appended to this chdpter, giving a clear ? picture of the accounting system. ? ? There are also four supplements which can only b.e filxnistied in January or February l9,6. They are reproductions of original documents ? dealing with accounting. They are! ? ? . ? ? 1. "Instructions on establishing the rentability of SMV ? refiners products. (During the tenure of Sidorenko.) 2. "Instructions concerning the cevlulation of prime costs." (During the tenure of Agadshanov.) ? Instructions Concerning -the establishment, in conjunction with No. 3, df net'month's terminal report concerning the fulfillment of the production plan. (Check sheet No. 3.) ? ? !Instructions concerning the salpulaticin of cordinon costs in SMV plants. ? ? Enclosed is a table showing .Ehe calculation of prices (as of 1 ? January 19!)3) as betmen the SMV plants. ? (b) .Plane ? ? ? ? As ali'eady stated, the plants invoiced their performance and ? ? . . ? delivprie6 among themselves on a.cOntinuing basis in accordance wtth ? ? ?? . ? ? . ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? I Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? the (Production) plan laid down foi, the year and covered their running . ? ? ? ? productibn costs out of earnings. ? ? ? ? All liquid profits had to bp turned immediately over to *MB. The Flnancial Department of Central Accounting kept a check o; the bank ? accounts of the plants *which were reported daily and siphoned off any unnecessary accumulations of funds. ? ? ? In the same manner monthly transfers of funds from plant assets ? were made by the plant tb the acc.ount of the main accounting office. Oith these funds and with an investment fund, the size of which is ? ? unknown, the Administration covered planned and completed investments; ? ? and the cost of general repairs on the basis of supporting claim ? vouchers. ? ? The main Administration of thd?SMV received from the Petroleum ? ? Ministry in Moscow the Plan for the ntire enterprise on fluarterly ? basis or for the current business yeaf... This plan included, among other items: Operational plan, Estimated expenses on cost-type-group basis, Estimated profits and/or performance, . . Expenditures, Salaries and wages, ? Investments and general repairs, Estimated production, ? Rentability of performance and. products, Plant costs. ? ? ? ? ? ? ? These questionnaires were:checked by?departmental chiefs of the ? ? ? ? Plans Division, by the Labor Diviston, the Investme6ts Division and % ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? . . ? . ? .. t . . The balance sheets of the plants woala only be 'accepted dy the ? ? ? ?chief of Central Accounting if theyol'e the signatures of the chiefs of the Main Administration, thereby attesting to their accuracy. ? ? ? Further letaiIs on planning methods in general and on the setting ? ? up of production plans will follow in January or FDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? administered by the 'Soviets in Austria. ? ? ? The analysis confirms' our fIndings as they concerned USIA and also ? ? ? provides valuable dotails and explanations. ? ? ? The documents concern: Report on training for personnel chiefs of SMV at Urgersbach 9-16 May 19'..,3 with plan for review, aaily schedule ? ? and internal critique; ? ? Project for a (acre plan; ? ? ? ? ? Formula for a character-sketch b the Personnel Division; ? Formulae and guide-lines for quarterl an annual reports. ? All these uocuments come ,irectly from the rhief Communist personnel' ? ? Tian, Eichinger. We hope to make copies available early fn Accordin.; to our sources, the Personnel Division of the SMV, as . . ? ? well as in other Soviet-administered plants, had tasks other than those ? ? ? usually fulfillei by personnel divisions in the capitalistic economy. ? The main stress in the work of the Personnel Division was placed ? on the formation of strong KPOe plant organizations (BO's), wherein ? ? the personnel chief was not appointed leader of the BO, but rather ? functioned as its adifisor. This funetton resulted from .the fact that ? ? the Soviets pursued not only economic, 'but also political aims in the ? plants the?" administered. Our sources expressly refer to the fact that ? ? ? the Soviet-administered enterprises were qiven the tusk of educating ? ? ? . ? ? 'those cadres and?functionartes whose tazR it was to transform Austria ? into a people's democracy. . . ? ? ?. ? ? ? ? ? ? ? ? 72' ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? The personnel divisiona ware not ally charged with forming the ? numerically strongest Communist Party groups .(BO's), but further than that to place the active Communists in the plants i good and influen- tial positions. "cadre policy.' . . .an. Sovietophile ? The sum of the 1nea5ures alning at this was called ? ? Through the workings of this cadre policy Communist ? workers and employees were to be trained for higher .posts, while nonlCommunl.sts were to be kept out of these higher posts. Appendi:. No. 2, entitled 'Cadre Plan shows how systematically the. ? ? Communist-led personnel divisions went about this task. The employees anu workers were e\amined division 10; division in the light of the ? points given in the Appen6i an, then classified as positive, 'tolergble, 'not wanted,' or 'intolerable:. ? Not only conuuct in the plant and technical abilit:.r were taken ? ? into account, but also the pervon's priv.ate life. Particular stress ? was laid on finding out if the person in question had ever made critical remarks about the Soviets. A particularly positive factor as considered ? to be collaboration in one: of these organizations: Soviet-Austrian ? Society, Peace Council; Communist sport clubs, Tenants' Protective ? ? Association, League of Democratic Women, Friends of Nature,. etc. ? The 'intolerables, knom as I-Elements and the "unwanteds" known ? as U-elements were listed by the Central Personnel office. Special ? ? ? . ? : commissions were established which usually were under the, orders of ? ? . ? ? the per.sonnel chief, 'of the BO leader, of the chief plant councillor . . .. . . . . . . . . % . ? . ? . . ? and of Vile representative of the district KPOe leadership. These ' ? . . ? ? ?? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? commissions held meetings to discuss every single worker and empluyee, ? particularly the lea:ling ones, put them into one of the above-mentioned ? . classifications and thus disposed of the fate pf the person in question. ? The I and U elements were given a time limit to get out. At the ? ? same time it was decide6 wh;tch of the trusted men should :.ontinue'.o hold their jobs am, what professional training the:: should be E.;iven. There were two-week training courses and schools .giving courses ? lasting from five weeks to si: months. Oorkers selected to attend these courses were given time off from their plant and were given paiu free ? time by the SMV. In he ease of the si:-month Lourses, the SMV continued to pa zi only the social security, while the KPOe.recompensed him for his salary. However, the KPOe receiveu the money to do this ? from the SMV. ? In the case of firings; thq approbation of the Central PGrsonnel Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? 'The local Communicrt personnel. official was 'asked if all those ? ? persons accepted by the. Personnel office had been confirmed by the Administration. This indicates that such was not always the case. .Our ? sources report there were different.prpceQuises in the case of discharges. These points indicate that there were cohtradictions in .the taaks of the Soviet directors. ? But quite apart from how the men felt about Communism, their main task was to increase production an6 to see to it that the plan ,.as ful- ? ? filled. In order to do this they needed good co-workers. Good co-workers, however, viere mostly people who had been working with the oil companies before l. and who therefore were not Communists. The Soviet directors had the experience that firings, replacements and ? ? job-fillings--eictated? by cadre policy--made for decreased pro:uction and for other Aff.iculties. . . ? ? It was therefore not uncommon that the SoViet directors opposed this ? cadre policy. In not urgent cases, the KPOe woy.ld then vithdraw its ? aemands. However, if the KPOe felt that a man was entirel,:,.anLesirable, ? or if it. was felt a certain job had .to be given to a Party member, the ease would: be discussed by the KPOe.Central Committee. ? ? ? Then, in general KPOe .Central Secretary Fuernbe;rg himself or .one of ? his associates, Stueckler or Vajda, would call on the highest level Soviets and they would give the order to the .Sovie.t.director to. carry ? out the Ci.esired firing. ? . ? ? . .? ? On the other.hand, it must.be said--and this is important in ? ? ? ? ? ? judging this entire problem--that-the KPOe itself Was decjiatel to ? . . .. ? ? ? ? .; ? ? ? 75. ? ? ? . ? ? .* ? ? a ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? .? ? ? ? ? ? ?? ? ? ? increased 'production, although this had its political o'zfortones. ? ? This is dearly shown in the Cadre Plan (appendix 2), and particularly in points c and 9 ? ? ? Point particularly stresses that Communists are to be fired if ? ? they act counter to work discipline. Poir.lt ) demands that the end result of all Cadre policy measures in the plants shall lead to increased ? ? production as well as to polltical.consolidation. ? However, our sources report that the purely.political motivations. . ? ? of the KPOe's cadre policy, in practice, .hac preceoence an this le, to ' ? ? the opposition of the Soviet irectors who were reponsible for prouuction. ? Particularly interesting is the remark in Point 5 of the Ca,Ar? Plan ? asking for further proposals to increase pro,luction, bDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? . ? ? ? ? The first successes were'achiev.0 in the most northerly part?of ? the Zibteradorf field at Muehlberg: This field had purposely been left .? ? untouched by the?Germans and by the end of the war was therefore virtually ? ? ? ? virgin. Soviet drilling activity concentrated on this arda and by 1950 ? . production was nearly 500,000 tons. However, in later ytars, production here fell. (See following table). Earnings from this area created the financial means 'for further drilling attempts. Through counterflush methods and new drillings the greater part of the ViennaDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ?? It is interest:L:1g to 'note that previously the Rohoelgewinnungs AG, Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? Boring was started .from three places at Zweindorf and goring ? ? ? Zwerndorf f got to the rebel well first and got it under.contr.ol. The 'Russian personnel left and took seven of their turbines with them. The ? ? other had fallen down a drill holu. ? ? In the spring of 1955 Sf_ecalists Babayev and Latshinov came back again, bringing 20 turbine:s with them. Seven or eight of them were ? "elghts" and the others "tens. Their job was to instruct the Austrians in turbine drilling and to acquaint them witli the necessary measurements ? and to train Austrian personnel. ? ? ? The first turbine well that came in was Bockfliess 5. Drilling ? began on 1 April 195. ? ? Turbine drilling was then used, when worth while,, in already ? ? ? opened-up fields, particulaxly in groups, such as Bec:kfliess o.nd Prottez, ? etc. It was also used where directional boring was necwasary. ? ? ? ? ft 1 . . Our sources qualify the Soviet ten turbines as a successful standard ? ? model, the construction of which had beeri?coniiderably simplified and whose maintenance problems had been licked. They add that Soviet' . scavenge pumps were added to them with a necessary pressure of 50-100 ? ? atinospheres since, our pumps werd not strong enough. ? In the opinion of our sources turbine drilling has the following ? advantages: ? ? 1. More speedy operation, especially in hard rock soil and ' . at great depths. Less cost of operation. ? ? ? ? 79 ' ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? . ? ? ? ?? ? . 2. ?Well.head and directional drilling more easily controlled. ? ? Better utilization of work time. . 4. Smaller service?and maintenance costs.. ? ? ? ? ? ? ? .5% Elimination of fishing jobs due to broken shafts. (c) Productiveness, Drilling Costs Drilling Meters ? ? In 1947 the proportion within SMV of productive to non-procaective. ? ? ? ? ? wells was 60:40. The proportion was as follows: ? ? 1950 out of 70 drillings 51 were pro,:iuctive. :Equals 7 1951 '' 35 (7 )1 1952 .101 -- 195.3 122, ? 14.9. . ? 1951, 110 1955 () (Up to 13 August 1955) ? ? ? ? ? ? Average depth of wells during the German period was 1,300 meters. During the SMV regime it was 16,0 meters. According to our sources the average cost of drillings under the Soviets was api5ro-imately Sch. 1,100,000. Attached is a table which is thp copy of an?original document that.. was found. It gives the types of drilling done and the price per meter. ? ? ? The.se figures were the norms. There were sometimes such types in ? .INne-year plan: Year 1954 ? Type_ 1 2? ? ? ? ? ? ? Meter Meter-Price ? ? 1,700 ? .S*Ch 6W7,62 ? ? 1,730 , 710;50' ? ? ? ? ? ? 8o ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 f . aat ? Meter 4 ? 2,500 ? ? ? ? ? Mete? r-Prije. '.) 2,00) . . . 1,29),11 . 6. . 1,500 ? 1,Q89, 1955 ap_e_ 1 ? Meter Meter-Price Level Area 1,360 ? ? (Production DrilDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? Data for 1950 up to 13 August 19_,.5 1,8 on the basis of complete informa- ? tion. According to 4#11ese figures the Soviets bored a total of ? 1,096,861,b meters. ? Here follows an imomplete table of structural boring, counter flush and hand drillings. ? According to documentation ? ? ? (Str.uctullal Drillings) ? ? ? Office for Geol. Exploratory ? Year Office I Drilling (Aderklaa) (Later Rakv Co. ? Total called Office II) in meters 1949 ? . ? ? ? ' 7,050,7 ? . 1950 - i, l,1 .11,782,1 1951 - z3,79,1? 7,02o,u 10,419,1 1952 - 19,1361,o .. ? , 19,561,0 ? ?-95_, ? - 14,447,0 ? - ? 14,44700 1954 5?2"36,Q - ? ' - 5,238,0 ? (Cognter Flush) 19149 21,577,02 1950 50,742,80 191:1 ? 32,062,90 1952 $5,0'34,80 ? 195, 11,219,00 ? (Hand Boring) 1.9w) 449,75 . (d) Opening Of.gatural Gas Deposits_ ? ? The SMV took over the following five prodgoing natural gas wells: Mubhlberg: g wells, already operating in 1944. ? . ? . ? ? Altlichteriwarth: 2 wells, productive up.to 1949. . . Aderklaa: 1 welll?productive to 1951. ? ? ? ? ? ? ? ? ? ? ? 1 C2' ? ? ? ? ? ? ? ? ? . ? ? ? ?? ? ? . Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? In addition a gas pipeline wai3 laid for the cl?rcuit Neusiedl- Bockfliess Aderklaa - Leopoldau. On 1 July 1946 a separate natural gas plant was establishe41 ? ? ? (Erdgasbetrieb). During the period 19)-1952 the SMV in general onlg used new wells oi. those that had been shut down (Translator's Note: Probably writer means shut down as' far as oil production was concerned.) This :as particularly the case in Muehlberg, Neusiedl, tlatzen and Fischamend. ? ? ? But in the year 19!)2 three wells were bored' at Matzen because of ;. great ? need 'for gas. In 192.6 an. 1948 the same was aone in the Hohenruppersdorf ? field, where two wells were (trillei, but only produceu small amounts up ? to 1951. Three wells were drilled in the big Zwerndorf field. Up till then ? only Zerndorf 6 had been under consideration for gas production. When ? . . . the production 'of f?our well was added, the Zerndorf-Matzner gasline ? was .being used to capacity. ? ? ? ? It must be mentioned here that the Zwernforf weals drilled by the ? Seviets were the b.iggest natural gas deposits existing in Central Europe. ? However, our sources are convinced that th..Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? natural gas were used by SMV to provide supplitmentary funds fox. USIA. In the period 1945-1955 there was the following change in the number of as wells in operation: ? 1945 1950 1955 Muehlberg 2 17 ? ? . . Alt Lichtenwarth ,_ ? 2 Hohen Ruppersdorf ? ? - 2 Zwerndorf . ? ? Merklaa 1 2 Fischamend 5 (e) Natural Gas Production and its E;..ploitdtion ? ? The greatest quantity of natural as was found in the Muehlberg and . ? Matzen fields, although mi ed*with oil, and therefore qualified as wet gas and oil gas.. ? ? SMV profits on natural gas during the entire occupation ieriod can be seen in the following table: ? ? Dry Gas 1,854,323,799 cu. in. Wet ' 2,101,288,614 " . Total of bah 4,005,060,618 " ? ? ? ? ? ?? 1.314 ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 . ; ? ?? ?? ? ? ? ? Natural Gas Produced by SMV in cu. m. Year Dry Gas? Wet Gas Total 1945 1946 ? - ;4.500.000* 90.000.000* 124.500.000* 1947 62.616.0G5 120.000.000* 182.600.000* 19V). 83.312.841 ? 150.000.000* *233.300.000* 1949 126.397.746 . 200,000.000* 326.400.000* 1950 .204.077.010 260.000.000* 464.000.000* 1951 215.000.000* 4.76.?00.000* 1952 247.465.110 235.000.000* 32.000.000* 195, 242.152.582 14o.o6 .382 ? 562.216.461, 1954 ,3.392.b9. 295.,11.9,0 u,11.204.025 15. 8-1955 253.,26.729 19f.912.796 499.239.25 Total 1,351.52).7)9 2,101.283.614 4,005.060.618 ? ? ? The gas produce:i was use( by SMV as follows.: ? 1. As high pressure gas oil in the fields as a means of gas ? lift production. This was to achieue: ? (a) An increase of petroleum production since leep well pro- duction is increased through gas lift process; ? ? (b) Decrease the production cost of crude. Production cost ? ? ? . of natural gas is small and the cost of installation in the case of as lift is lower than the special ? machinery needed for deep well pumps. ? ? ? 2. To. supply the Plants with heating and to drive some engines. Sale to tile .customer through: ? La). through Erdgasbetiiieb, the Vienna Ga 6 and Electrica.r ? ? works were suppliea: also supplied. ere communities., ?? ? lime burning..works and industrie.ri.. ? ? ? ? ? ". ? ? If Estimated fieures ? ? ? ? ? ? ? ? -85 ? ? ? 0 ? ?' Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ? (b) Gas reservoirs were established by Methan. ? . ? . B. Gasoline Production ? ? ? (a) Production Points slid Production The SMV did not indulge in liquifaction of natural gas and stck to ? ? ? ? prpdUction of gasoline.' ? ? ? The existing installations at Neusiedl and nauskirchen were put into broduction in 19/6. The Muehlberg installation was put together out of the parts of the ? half-finished Haudkirchen plant which had been begun b, the Germans for.. the production of gasoline through the use of huge quantities of steam. ? It went into production in l. J. ? The Aderklaa installation was also new and went into production in ? ? ? 1950. It was assembled from the parts of. a Moosbierbaum destined to eliminate benzine from crack gas. However, capacity was ? increased. In 1953 the Hauskirchen installation was broken down and set up at Aderklaa as a low pressure installation and went into production the same?year. Ma.A.mum gas production was: ? ? ? ? ? Hauskilichen :0,000 cu. m. daily at j. m/second ? ?? Neusiedl .i50,000 ? With a Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? With a1$ supplementary load, maximum production was 7,5b0 kg. Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? .??? . . These daily repor? ts were usd to compile a month.ly one which was ? a barlis for the accounting of amounts of gasoline produced and sold. ? ? The direct production costs of gasoline--wages, social security, ? ? repairs, amortizatron, material cost, steam, electric current, water, etc.--were talculated separately for each production point. This ? method Made possible the calculation of gross and net production not ? only for the whole industry but also for each production point. ? ? C. Total Oil Production ? We are in a position to sive the 'total figures of the amount of ? oil produced by tbe Russians uuring the occupation. The difficulty was ? to suldract .those amounts of oil produced by non-Soviet installations: The following table gives a detailed picture of Soviet production: ? ? ? 88 ? ? ? ? ..? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? .? SMV Plant Production from 1945 to 118/'-5 ? ? - (In tons*) ? ? Year Muehlberg Neusiedl** EPG S. ? ? Matzen Auersthal Aderklaa . Total ? 1911.5 after war's end 15,085,7 ? 1946 110,510,7 1947 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? % . According to the table then, the total production from the begin- ? ? ? ? ? ? ? ning of the occupation in 1945 to the time SMV was handed over im the Austrian Republic'on 13 August 195.) was 17,761.,556.7 tons. If this is calculated on the uomestic Austrian price of Sch. L,(:) (and not the world rlarket price of Sch. 18) this gives to the Soviet ? ? _ oil production a total value of 6,150 billion schillings. This shows ? that our original estimate in the Preliminary Draft of ':-?771 billions was essentially exact. ? Also confirmed if: our original. estimate, based on the e.pert opinion of Dr. L. 4eber, thich r.tate., that the prime cost per ton of produced oil was for SMV?Sch. 100. The figures containeu in Section IV C.a. give the internal figures, based on drilling and other costs for the different areas as follows: ? Aderklaa Bockfliess Matzen Muehlberg Neusiedl Per ton crude Sch. ? 58 62 116 307 ? According to this the average price therefore was two-thirds of the production, namely &ch. 60 approx. while for the remaining one- third it was about Sch. 200. According to point IV of this statement 8 the average prime cost, namely the.price.of sale to the. refineries ? was Sch.. 91 per ton: This is Sch. 9 less than we calculated in our ? ? ? ? Preliminary Draf. ? ? ? ? . . . ? ? .9:0 ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ?P ? ? If we therefore calculate total value at Sch. 6,150 bDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? 'Union itself, to Czechoslovakia, Hungary, Poland and East Germany. ? .? According to our sources, at the beginning crude oil was only ? ? sent to Czechoslovakia and East Germany, later to Poland and Hungary ? and, from May 1951, in increasingly great quantities to USSR. Deliveries were made by water in tankers or b, rail in tank cars. &arplus amounts of refined oil were also exporteu to these countries. 0' ? E. SMV Installations by Branches (a) Main Administration: ? Personnel as of 1/1/56 Workers ) Employees 115 ? ? Installations: ? ? ? 1 living ,(Aarters (Tabor Strasse) ? 1 plot of land Fitting up of the rest center at the Palace Hotel ? at Semmering. Divers office installations. ? Materiel (Semmering rest cGnter) ? 1'43/5.5 Sch. 38,000 ? ? ? (b) Plans and Calculations.: Personnel as of 1/1/56 ? Wor4ers ? 7 ? Employees ? 39 '? Installations: . . Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? Materielf 1'3/8/55 Sch. 8;000 10,000 Geophysical Office: Personner as of: 1/1/56 dorkers 122 EmplOyees ? Installations: 1 indAstrial bui1?ing? 4 automotive seibmolorLical station;; 5 Carottage stations (?) ? Li perforators u ti'ansportable urillinr; machines _,.tank ears 5 buseo ? ? 21 trucka ? automobiles 11 flush joints sounci generatoPs oscillographs ? 11 scavenger pumps 41 perforaton ? ? 1, Kerpschussapparate '(?) ? 17 .inclinometers ? Cavernometers 1d pulsators -35 potentiometers ? 11 electrothermometers O., kilometers of drill shafts heavy dri1.1 rods Divers equipment Matexael:. ? W8/55 Sch. 1,588,000 ? .31/1.55 1,554,000 ? ? ? 93 ? ? ? .? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? (d) Prottes: ? Personnel as of 1/1/56 ? Workers. 1388 Employees ? 14 Installations: ? 21570 sq.m. land ? 12 industrial buildings 10 non-industrial buildings 45 drilling cranes . 94 scavenger pumps 46 turntables 111-.0 adapters 1,1 diesel engines ? electrical drilling machines o turbo drillers ,) metal drill.derricks :(.1 lan (Bohrgestaende, rechts) J.6 km (Borhgestaemle, links) 61 arillometers 75 preventers structural drilling installations 13 counter flush installations 11 cement-making machines 7 concrete ml- ore 9.2 km drilling pipes o motorcycles 72 cranes ? ? divers equipment ? ? ? ? Average drill meter per:Cormance per month: about 15,000 meters Materiel: ? ? 13/8/55 Sch. 27,895,000 . ? 31/12/5..5. 18,868,000, ? ? ? ? ? ? ? ? ? ? ? ? . 94 ? ? ?? ? ? ? ? ; ? ? ID? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 -2 - ? ? (e) Protruction plant installations: . industrizl buildings non-industrial buildings oil wells in-put wells ? gas wells ? Alprklaa Auers.thal Matzen. Muehlber. Neusiedl pimp stations gas distributor point o oil tanks 4800 cu. In. oil pipelines Km. Production pipelines gas production pipe- lines water production pipelines power lines Kaj ascending tubes KM . pump rods KM . 14 . 3 15 . . 2? . 113 6 4 . 6 '26 . 60 58 . 142 198 . 107 244 - 6 1 - lo 1 ? - ? ... 2% 7 10 6 10 1 50,.0 '12000 17129 9062 4800 19,2 ? 20,5 11, 1::, . 76 44,6 ? 17,5 11 113 16,, . ? . -22 209,5 ,,. , , 63 157,L. or E; , , u?, 86,6 260,5 31,3 ? . 11,6 33 26 27 125,6 92,9 22 . 29* i-),4 12 114,6. 118,1 special trucks ? 2 , 5 ?i motorcycles 4 ? 2 7 _ . - trucks - 1 ' - - . . - passenger cars - 1 1 - ? tractors ? ? ??? (f) Petroleum Production Companies: ??. Installations: ' 9 industrial buildings 1 2 11 non-:industrtal buildings ? 53 oil wells ? 10 .pump stations 480d m3cga tanks . 8.9 tun *oil pipelines ? 5.8 km oil Production .lines ? 17.3 larn?water pipes ? . ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? .17.4 km gas and air pipes 4.1 steam pipe .15.8 km electrical power circuits 50.0 km ascending pipes 42.0 km pump rods ? 2 opeoial trucks 4 truc:cr, a ? passenger cars ? 2 motorcycles 2 ? tractors divers equipment ? ? Erdgas G .m. b ? H. ? ? Personnel as of 1/1A,6 Workers 197 Employees , Installations: ? .? 27 industrial buildings ? ID non-industrial buiLllengs 52 wells, whereof , abandone,:, 167 km gas pipes 5 compressor. stations ' 2 blowing plants ? 1 gasoline installation, medium pressure gasoline installations, low pressure 3 boiler stations 2 water softening stations 29 steam and centrifugal pumps. 32,1 km ascending pipes 3 trucks 2 passenger cars 3 motorcycles ? divers -equipment ? Avege production per month: ? natural gas 38,.428,000 c. m. ? gasoline- 300 tons. ? ? ? ? ? ? ? ? 96? ? ? ? ? ? ? . ? ? ?? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? Materiel: 13/8/55. Sch. f,006,000 31/12/5 1,225,300 Suedostteutsche Ferngas AG. ? Pergonnel as of 1/1/56 Workers 16 ? ? Employees 1 Installations: 7;952 square meters of land 1. industrial buil,ings 2 non-industrial buildinzs 17, km gas pipes 7 steam and. centrif. pumps ? ? 2 trucks 2- passenger? cars ? ? ? ? ? ? ? ? ?? 1 motorcycle ? Materie? l: 13/8/55 Sch 17,000 ._=1/12/55 B.V. Methnn G.m.b.H. Personnel as of 1/1/56 Worker u TT Employees 1 Installations: 7-industrial buildings gas tank installations (16 ?compressors) !:.steam and centrif. pumps ? 14 tank staions ? trlucks 1 p&ssenger car - 1 motorcycle ? ? diirers equipment ? ? ? ? ? ? .97 ? ? ? ? ? ? ? ? ? ? .? co? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ?? ? ? ? Materiel: ? ? ..13/8/55 Sch. 163,000 ? ? ? ? ? 31/12/55 I I 312,000 ? ? .Bannersdorf Installations (administered by the Neusftedl'Productlon plant) ? Installations:. 32 industrial buildings 17 non-industrial buildings 7.0 oil wells. 7. in-put wells 6 pump stations 1000 cu. m. oil tanks ? 10,9 km. oil pipelines 14,6 production pipelines 4, gas pipelines ? 9,1 " water pipes 2,6 ' electric circuits 38,3 ascending pipes 39,6. ? pump rods .2 narrow gauge locomotives divf!rs equipment (k) aefinery Installations: Land, in hectaxes Industrial bldgs. Non-indus. Atmospheric Dist:a- lation Station Vacqum distillation Cracking station Refining . . Specia:l. installations . . . Boil.er houses ? Outside pipes lcm. ? . ? Raifroad. lines Ian . ' ' : ? . Locomotives . .? .? ? ? . . ? . . ? ? .? ? Voesendarf K rneubur Lobau Moonbb. Schwechat 7 ,57 88 280 26,5. 23' 34 38. 129 6 99 .)( : . ? ? ? : i 1 - 1 1 ? . 2 9 1,7 1 ? ? ? 1 1 . . - 1 2 2 4,8 5 ? . 3 2 - - 1 1 -. 5,5 1 ? ? . .. ? 1 .1 1 1 1 . 1 ? 2. .9 . 22 L. . : ? ?.1 . 1 *1 ? -? 2 . 18,!. '4,9 ? , v ? ? ? . ? ? % ? ?98 ? ???? ? ? . ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? (k) Refinery Installations (contd.) ? ? ?? Voesendorf ? Korneuburg Lobau ? ? Trucks -) ..) . ? ? If ? 2 Passenger cars 2 2 2 Buses ? n c. ? - - Tractors ? ? ? Filling 81 unloading sta. 4 6 2 Steam & centrif. pumps . 84 0 /1 Redistillation ? ? Fire triwk 1 Diesel generator . 1 Railroad cars 84 tank cars ? ? - Asphalt oxydation sta. ?? ? ? Moosbb. Schwechat '. ? .. 6 ? 4 ., .? . . 2 - ? 1 ? ? 1 ? . . 4 ? , i 36 . 17 . 1 11 2 1 Lubrification oil refiner-j. 1 ? ? (1) Lobau?Tank Station: Personnel as of 1/1/5u Workers 1,70 . . *Employees ? Installations: ? ? 51.5 hectares lanu 36 industrial buildings 24 non-industrial buildings ? 185.850 cu. m. containers 153 km long distance pipelines 1. filling and unloading stations. 12.6 km rail lines 2,976 tank cars ? ) steam locomotives 4 diesel locomotives ??? 1 tow truck 1 bus 3.tyucks 7 passenger cars 3.fire trucks ? ? ? . . .? ? ? ? ? ? ?? ? ? ? ? ? ? ? ? ? ? . . . ? . ? . :1 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? .? ?? ? . ? 4 motorcycles .50 pumps 2 octane meters ? 1 Petan counter S. production counter& 32 automatic production counters 4 automatic rail scales ? 2 street divers equipment Materiel: ? li/8/55 Sch. 1,637,000 31/12/5: ? 1,912,000 (m) Siebenhirten Repair Workshop ? Personnel.as of 1/1/6 ? Workers Employees Installations: 785) rp? land 2 inaustrial buildings 5 non-industrial buildings 23 lathes 23 drilling machines 5 milling tgolo 16 grinding machines various metal working machines r'forging furnaces various metal cutters hydraulic presses 14 bending machines ' ? 3 wood working machines ? 3 bollrs ? aellai motor testing benches welding installations 1 bas . ? ? ? ? ? ? ? ?? ? ???? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? 0 2 trucks* . . 2'passenger cars ? ? ? divers equipment ? Materiel: ? lj/8/55 *Sch. 3,463,000 -i1/12/5S, ' 4,605,000 (n) Construction and Assembling Office ? Personnel as of 1/1/56 Workers 501 Employees 59 ? Installatiohs: 220 hectares land 14 industrial buildings 8 flop-indurltrial buildings ? 1 bulldozer 2 steam rollers 10 concrete miers 1 transportable conveyor belt ? ? ? ? ? ? ? 1 travelling crane ? 8 compressors 2 erecting tools ? .96 windlasses 65 transportable welding outfits' 17 erector trucks 2071 km rails . passenger cars 3.trailers. 4 tractors ? 4 motorcycles divers equipment ? ? Mater? iel: ijy6,/,,. Sch. 5,453,000 ' 31/12/55 " 8,952,000 ??? ? ? ? ? ? 101 ? . ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? . ? ? ? ? ? ? ? ? ? ? ? ? ? ? (o) Central Research Lab. Pe3;sonnel as of 1A/56 Workers 7 ? Employes. 57 Installations: l?core examiner 1 crade oil tester 2 crude oil samplers Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? Installations: ? 2.13.hectares land . 40 industrial buildings 15 non-industrial buildings 91 passemer cars 12 trucks up to 1 tons 51 ? 59 , special trucks ? 61 'buses 49 tractorb 62 trailers 1 motorc-,cle traction engines ? ? . ? divers equipment ? Materiel: 1)/8/5!_, ? sal. ? )175,000 5,976,000 (q) Benzin-Bet/zol Association No personnel ? Installations: ? ? 1 building, destroyed (Vienna X. dienerbergstr. 27) Ownership not ,7:eclarec. ? -416 Tank stations, partly not assemble_ ? All rented 1.-,o Orop. The SMV Refineries ? de, have already presente? some studies on the SMV refineries. In particular we draw attention to the fact that the reports on. the ? conversations of 27. September 1956 and of 8 October 1956 with Alfrea ? ? ? ? C. Die&e reflect.a personal point of view, whereas the later reports ? ?? ? b: Dr. U, are based on a;T4ive documentation. ? ? ? ? ? ?? ? ? ? ? 103. . ? ? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ??? ? . ? ? . ? ? We here give short indications concerning the rate.of flow; .pro-. ? ? duction and investments at the re.fineries of Lobau, Korneuburg, Moos- ? ? ? bierbaum, Voesendorf and Schwechat. There is also a short sketch on ? SMV's Central Laboratory. ? A. Lobau Refiriery ? By the end of the war the tobau refinery was completely useless as a result of bombings. ? ? After repairs had been made, production started aAaiii in 1)4(.) and . on 2 A.ugust 1947, Lobau became part of the SMV complex. ? Up until 1951 Lobau prDcesse(I crude oil from Zistersuorf and later that of Matzen. Rate of flow bias 1,060 day-tons. ? ? In 1952 Lobau wab provided with an atmospheric distillation ? installation of the Heckmann type an. which hacl a rate of flow of 130 ? tori a a day. From 1952 9n the total. rate of flow ? was 1,270 tons a day. In totality, the refiners possesses two atmospheric Jistillation ? ? ? installations with the necessary auiliarv machinery. Products are: Benzin =P) Petroleum ? ? ? GLts oil 29.6%) of the rate of flow Residue Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? the vacuum and the refining installations, although badly damaged, ? ? were soon back ln production.. When the Germans leDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? C. Moosbierbadin Refiner' ? At the beginnkng of the year 1945 Moosbierbaum comprised one . ? chemical and one oil sector. The oil sector had: . . ? ? 1 combined atmospheric-v.acuum crude oil distillation instal- lation (Foster-Wheeler system) which had been brought f'rom .France? 'in 1942. (Th.e Dora installation) ? ?? . . .. 1 Catalytic benzin reforminw, installation for the production' . of high octane aviation E;asoline, conjointly with s4;abili- . . . 2ation, refining and re.listillation installations. (So-calle,1 HE). insta114tion) ? 1?11F2 installation under construction r installation for the production of 114uid bottle, motor fu.el ? ? 1 Pump station on the Danube with two pipelines to the plant ? ? 1 tank .installation Also under construction an installation for the production ? of high quality lubr:tcation oil. (SS oil installation) ? ? Wh-7n th- 5ev4,-ts ? ? ? not destroy or take awa.y the e>istilvz.installations. It had been kept iA proUuction ? make-shift repairs after.bombint, attacks. ? ar . In June 1945 Moosb.ierbaum was taken over troops cif. the ? Booty Adulinistration. Around this ?time.Moosbierbaum had one of the most mo.dern steam. oiler houses in Europe. This installation was not only able to provide ? ? ? . ' . ? . . . . .' . . Moosbiertiaum with steam, but also Atx) 15rov.ide electric power for certain . . . . . ? ? ? ? ? ? ? ? spctors. of Lower Austria. ? The War. Booty Administration dismantldd it ? ? ? ? ?. ? ? ? ? ? ? ? ? ? ? and took it aw? ay. ? ? ? ?? ? 196? . 0 ? ? ? '? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ?? ? ? ? ? ? ? ? ?.? ? ? ? ? ?.* ? ? ? ? The same thing happened tp the stock of electrical?equipment at .Moosbierbaum. The territory of. Pischelsdorf also belonged to Moosbierbaum at ? ? that time, anU there a modern sulphuric acid plant was planned. Must ? ? ? of the. buildings had been .erected. Some 200 to 300 transformers weve stored there in 194. They were also taken away. ? ? At the Danube port at*Pischelsdorf there was also a shipping crane. It was also taken away. Stored raw material was later broken up for junk and sold .by SMV. For the most part this was refinery piping. ? At the same time all the covering leaa found at the destroyed Moosbierbaum sulphuric acid plant was gathered up and sold.. On the territory of the Mgosbierbaum refinery there was also a copper vitriol plant as well as a stock of the necessary copper bars. The SMV converted them into copper vitriol which was sold. During-the years 1,45-1948 all material which was not absolutely necessary fOr the working of the Moosbierbaum refinepy was sold by SMV. The Dora installation was left virtually untouchec anu in August ? ? 194_, was working. Capacit was: atmospheric - 500 tons daily; ? vacuum - 2').0 tons. In later years the installation was improi/e6 by the ? ? ? ? ? use of supplementary heat exchangers and at the beginning of 195 an ;.tmospheric evailoraZor. was installed. As a result of these improvements, capacity as 1,000 tons daily when Ple?installation returned to the. ? ? . Public: domain in 1955. ? ? ? 107 .. ? ? ? ? ? ? ? ?? ? ? ? ? ? ? ?? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ?? ? ? ? ? ?? ? ? ? ? ? ? in 1947 the nussians built from existing furnaCel. arid apparatus A ? ? thermal cracking installation and in 1948 it had a capacItj of 400 ? ? day-tons. In 1950, the construction of the refinery and the redi;til- ? ? lation plant was ended and it was able to handle the benzin which ? hitherto had been sent to Schwechat for processing. Refining capacity ? ? was 2-..)0 day-toni and that of redistillation 200. In 1932 performance was inci-eased through the erection of a 1,000-ton furnace to 1,000 ' ? ? ? day-tons of heating oil. A selective crackin process was also installed. The production of steam was increased in 1)1,2 through thd epetion ? E4 an inclined water pipe boiler (Schraerwasserohrkessel). In 1)!?4 ?? ? ? the redistillation installation aas transformed into a vacuum installa- tion for the production of bitumen with a heating oil use of 150 day-tons. ? ? ? In addition to this, in 19L) the two Danube pipelines dating from ? the time of the Germans had addec to them a ben;:in pipeline: To spedd ? . up the emptying of tank cars the old pump station was increased in -0 e and a second heaing cal fi1lin station was put into operation. In ? the period 194!, to 195'1 the tank installation's capacity was increased ? from 15,000 cu. m. to 25,000? cu. m. There are no sure indiclations as to the amount of moneg invested ? by the Soviets, but the sum of 100,00.0,000 schillings would not alipdar to be too high. ? D. Voesendor Winery ? ?? ? When the 'GermaDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? S. ? ? ?? ? ? ? apparatuDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 7A-? ? ? . . 1945 1946 about 1947. ? ? ? ? ? ? ?? ? ?? ?????? ? ? ? ? ? Sch. 620,000 ? ? ? 185,000 ?? 19148 183,000 ? ?.1949 75,000 1950 47,000 1951. -64l000 1952 2414,000 . . 1952 149,000 ? 1954 1.90,000 ? This makes a total of S. 2,057,000 ? ? E. Schwechat Refinery .(a) History, Capacity, Investments ? ? The ori6in of the Schwechat refinery goes back to -.7 when it was built by the French. Most of he apparatus was supplied bS the firm of Simmering-Gra-er-Pauker. ? The capacity of the NOVA refinery in 1944 was: ? 1. Distillation 200 day-tons .2. Cracking (top si,ie) 600 (cracking side) 200 Distillation Fuel refining 70 5. coking 40 ? L. Lubrication oil 6o ? Capacity of the refinery was practically nil due to the 16 March 1)45 bombing and also due to the destructive action of the Germans against the main buildings and the boiler nouse.? ? ? ? ? ? The Russians did no dismantling at the Nova refinery. *DDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 "2- ? ? ? ? ? ? ? ? ? ? ? ? cars anti also with HungariAn oil. ? ? ? .? Towards the &Id of 1945 the refinery was supplied, with oil by wate.r dile to the damaged bridges. At the Lobtlu port the oil was pumped into tankers and taken to the so-called Lower Danube stat ion where they were emptied. ? ? ? After the bridges were restored the oil was brought in tank trucks' ? ? until in 1947 two crude oil pipelines were put into operation between ? WIFO and Lobau and thb refinery. ? Because of a lack of documentation it is impossible today to say what types of oil were brought and in what quantities. During the Soviet regime the Nova refinery capacity was increased as follows: 194.6 2 reservoirs Qf 51000 cu. m. each ? 2 ? u 2,500 ? ? a947 Establishment of an asphalt oAydation installation with a monthly capacity of 500 tons soft asphalt. 1949 Increase of the atmospheric distillation cracking : ? installation to about 600 tons daily crude. ? 1951 Modification of the coking installation at one ? of the distillation units, giving a. capacity of 100-450 tons daily'crude. 1952-53 Modification of the cracking installation and increase of the capacity on the atmospheric side to aboeX . 750 tons daily and on the cracking side also to about 750 tons. ? ? The modification work was undertaken by the Soviets and done Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ?? ? ? ? ? ? ? ? ? ? ?? ? ? ? ? size.'of pumps, motors, etc. The result of.t,his is that today the ?? refinery is saddled with high repair costs and its rentability ? ? ? ? is low. It is not known how much money the Soviets invested in this re- . ? finery but it is'estimatpd at about 70-90 milliPn schillings. SincDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ??Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? K Krejci-Graf. This thstitution was to ? chief was to be Professor . ? look out for all the work entailed in research and .development in much ? the same'!nanner as is done in the French Petroleum Institute. However, ?? this idea did not take form until 195... In the firdt place there were not many experienced specialists available. The young geologists, physicists, chemists and mathematicians had no experiewe in the oil industry, but they did bring with them a good theoretical background learned in the Austrian schools. Since then they had developed into recognized specialists. Central Lab today has a total staff of 4-3. ? After the return ? with abroad which had of the oil industry been broken offv;ere . . eychange of inforynation was undertaken. ? u. Central Tank Station A. . Pi ? ? to Austria, renewed and ? the relations ? an intensive elines Trans ort and Stora e Crude and Refined ? The SMV.t60k over the 7:S km-long Raudnitzer pipeline Lind the y km crude oil line from lieusiedl.via Zistersdorf*tb the Lobau refinery. . . . ? The former had been ouilt by VIFO in 194_, The SMV built the following new 1j.ne3: . . . . ? . . . between the Lobau storage and Lobau refinery: .1 cgude oil line, 680. meters long . 1 benzin line, 717 1:leters long . . % ? ? ? ? 1 petroleum line, 717 meters long. ? 1 as o1?1 line, 717 meters long oo ' 1 line that is not in use, 657 meters ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release 114 ' . ? ? ? long ? ? ? ? ? ? S. ? 50-Yr 2014/05/21: CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? .. ? ? . . . between Storage Lobau.and Schwechat refinery.-: 2 crude oil lie 45o meters long . . ? 1 benzin line, 4,500 meters long 1 gas oil-petroleum line, 4,500 meters long ? ? ? ? ?? ? The Lobau to Laa a:d. Thaya line.was interrupted at Auersthal % ? . and two conneeing lines laid; one to the long-distance line and the . . otheis to the Auersthal pump station.. SMV projected a long-distance line 'from Auersthal to Korneuburg ? : and to Moosbierbaum. The line to Korneuburg was .contracted for but . . was not finished until the Austrians again took over? ? All railroad tank cars were declare by the Soviets to be booty . , . . ? sin4:e they bore the sign bR (Deutsche Reischbahn - Gerthan Railroads) painted on them. Originally, they were administered by the mflitpry ? ? ? authorities. The.SMV was given the number of (ars they needed for _.? their operation. Those cars that were needed to supply the domestic . ? ? ? occupation area were rented to Orop. The remaimier were used l5y- SMV ? . . . ? ? for its own purposes. The major portion of these ca werewere in good condition hut for part of them the Austrian national railroad authorities ? . . only gave permission for their use domestically, be:ause of the touchy . . questlon of ownership.. ? ? ? .? ? As already mentio? ned, the cars were?requirJitioned without regard .. ' to the ownership or to nationality so that latex:, the Austrian car park % ? ? ? ' ? ? ? ? .. . contained a great number of cars belonging to French and Italian ? . 0 . companies and also'. some that formerly be.longed to Austr4n, English ? . . ? ' . ? ? ' ? ? ? ? ? ? ? ? ? and Atherican firms. .? ? ? ? ? ? ? ? 13 ? ? ? 115 a a ? ? ? ? ? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 a ? ? ? .? ? ? ? ? ? ? ? ? Of the AgstrianTirms (and the German ones from 1938-45> on:y ? ? ? Shell had a small moor tanker. SMV had no tank ships. ? . Of those storage facilities that were requisitioned aa being German property the follbwing were, *as far as is known, taken over ? by SMV: Crude oil: ? ? ? ? ? The DEA facilities in Neusiedi, and those of the Austrian oil administration at the Zistersdorf ? ? main station. white produt_ts: ? All storat;e installations of WIFO at Lobau, the ail!' tanks at Praterspitze, the Nitag warehouse at Praterspitze, ? the Nova. warehouse at Neunkirchen, the storage fa(.ilities at the Petzenkirchen shadow plant; the former SS station at Mauthausen, all street filling s'tations in Soviet territory vhich were the property of the By, Casolin and Nitag firms. ? Heating oil: ? the oil pools at Ladendorf and Ziersuorf. ? ? Of these insta114ions those of Mauthausen, Petzenkirchen, Prater- . . ? spitze and the street filling statioris were rented by SMV to Orop. ? ? ? Of those storage facilities administered by SMV, Lobau had a capacity of 160,000 cubic?meters in subterranean tanks. Over and above ? ? ? ? ? this SMV had-facilities amounting to 4,000 cubic rffeters in above-ground ? .? ? ? ? ? ? tanks. The.Zistersdorf main station had a capacity of 15,000 cubic . . ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? r? emained and were handed over to the. The Neusied1 storage . . . facflities amount to 12,500 cubic meter. ? ? The Ladendorf oil pool had a capacity of 56,000 cubic meters arid ? that of Ziersdorf, 132,000. They were in use until 1956, but in view ? of the lack of heating oil, head to be shut down. There was *also a ? ? . . 16ading station at the Haurkirchen railroad staDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? S. ??? ? ? ? ? With the arrival of the oviet Geophysicist S. G. Shusbakov in ? ? ? ? October 1951, deve1opMenta5. operations we-e begun along seimlic lines. ' ? . . The .work was cal4ried out mainly ir.1 the 'Vienna Basin, with the exception ? Qf Seewinkel in 1954. In 1952 there were three surveying teams and in ? ? ? 1953 their number was increaseu to four. Many experiments were methodically carried out. Besides the cur- rently popular reflection method, attempts were made with a system which registers the profiles in order to find the direction and angle of inclination. The methou of measuring the sound of explosions was ? also tried. ? In August 1953, geophysical exploration was sud-enly abandoned, but recommenceo in the :iprinL; 1Y,- with the aid of two machines.' In the fall, work again ceased. ? ? ? The seismic apparatus dame from Russia. There were three machines. ? . , They were Type CC-24-,8 and Type CC-26-51: Another apparatus was built ? ? ? in Austria in accordance with Russian plans. These apparatus are olu and do not suffice to'oday's requirements. ? ? V. Surrenuer of SMV to the Austrian Republic ? On 1. August 195r, the SMV complex was handed over to the Austrian. ? ? ? Republic in accordance with the terms of the State T eaty. ? ? At that time the SMV consisted of: 1 drilling plant . . ? o production plants and the Rannersdorf inst6.11ati;n. ? (Including EPG), ? ? ? 1 natural gas ? plant ? ? ? ? ? ? ? ? ? ? ? ? ? ? : . ? ? ? ? ? ? ? . . ? . . . . ? ?? . . . : 118. ? ? ? ' ? ?. .? . . ? ? ? ? ? . ? ? ? ? ? ? ? ? ? .? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? 2 gas companiesAMethan and Ferngas AG.) Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? . 1,009,674 cu. in. dry gab ? 937,840 wet gas ? Forty-five drilling installations were handed over, plus 20 dril- ling turbines of the 8 and 10' class. ? ? The following materiel was stored in the central warehouse qt Neusieil and viued by the Soviets at V,00cf,poo schillings: Drilling pipes Sch. 13,000,000 .Drilling rods Turbo drills 2,200,000 Russian lrilZin_ machinery ? Diesel engines Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? The crude oil pipelir.le net w43 8e0 kms. lorig. The Soviets estimated that they handed over 77,000,000 tons of oil ahd 36,000,000,000 ? cubic meters of gas. ? ? ?? ? At si;- o'clock in the mornins.: pf 113 August 1955, the following supEllies were in the plants and in the storage tanks: .? 62,254 tons of crude oil' ? . 5,682 benzin ? ? 2,554 petroleum ? 6,317 diesel oil ? 11,921 heating oil 1,_)49? ' bitumen 3,807 aviation as ? This, according to agreement was the property of the Sovie.t ? administration an was temporaril:, taken over in trust by the Austrian administration. The handing over of the aviation oil, bitumen anC, ? hepating oil was compensated for and was accomplishe':, by 20 September ? ? Because of the little time available it had not been possible to check the lists submitted by the Soviets. It later became apparent that there were discrepancies in the assets that were listee. ? The following table givqs a rough idea of these wrongly listed ? ? items: .? 1) Unsuccessful drillings . 51,817,000 Sch. . .. n) Cost of obsolete projects 982,009' . , ) Stocks to be liquidated . ? 1,D06,000 ? . . ,) Found lacking . . 306,000 . . ? ? .. 5) L'Abious demands . ? 196,000. . . . . . ? 6) Major; -:.'epairs ? ? 1/957,000 ? ? ? . '.- '? .. . . ? ? 1,6,56,000 ? ? . ? ? . . . . . . . :. ? .. . ? . ? .. . . . . . . . 121 ' . . . ? . ? ? . . ? . . . ? - . ? ? . ? ? ? . . ? . .- ? ? . . ?-? ? . : P . ? : .. ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 . . ? .hr'n ? ? - - ? ? ? ? Files .covering the years up ito 1 July 1955 were carted away?bSr . the Soviets from all plants. Originally, they were to be assembled .in the arcaves under Dr. Motesicky. With the excuse that these files contained indications concerning the Wkikschutz, the Legal Division, ? ? ? ? records of loans and of rents (including Soviet rest homes in Austria) ? etc. directly interesting the Soviets and their depenpnts, a Soviet ? ? commission consisting of Director General Cheplakov, Sales Director Pavlov, Chief Accountant Chernov and Secret Division Chief Yermilov took all these records to a house located at Tabovstrasse 1. ? Also dissolved was the Central Bookkeeping office, staffed by . ? ? Russians and in which the Russian language 'las usad. All files and .archives were taken away. The same applied to the Central Control ? office of the Central :lank Storage Administration:--afli7'. the ecords of ? ' SMV's foreign (rude oil and allied proc,A1(ts :Iisappeare,,. For a time, . ? ? the Jterested offices were able to obtain permission to look at these :.ocuments. ? "o not know whether the archives that were taken to the.Tabor- ? strasse were carteu off. to Moscow or burned at Voeslau. ? ? The records remain of operations as of 1 January 19.)5. ? ? ? That the Soviet declarations on the lists .did not tally with the ? ? ?? facts may be explained thus: ? ? ? .? 1. Faulty invento?ry. Because of haste,:the inventory waz accppt?ad ? . ? ? ? ? ? ? ? as it stood: in pragtice, however, it became apparent that iteths tha.t ? ? snoulkrhave been there, were not available. ? . . ? ? ? ? ? . ? ? . Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9_ - ? ??? f?-? ? - ' ' 7 2. ? ? r????-i? ?-?-? ? ? ? ? 0 ? . 2. Relationship of the directors to. the Director General, The directors could not admit to the measures they had been forced to adopt . ? through the sped of the handing over. The plan, for instance would ? ? show that a crane was called for, whereas what really wfis needed.was ? ? a scavenger pump. All this showed up 'When a check was made. With ? .available funds a pump was bought., but did not show. on the inventory. ? ? There. was therefore a difference between what was suppose 'Co be avail- ? ? able and what was actually there. ? Tribute deliveries began to flow towards the Soviet Union on . ? ? ? 27 August 1)55 . ? ? ? ? There were a number of pressing problems that had to be solved. . . ? ? immediately after the handing over of bhe enterprises. Forty to !:,) Soviet specialists ha Zt to be replaced by Austrians, thequality of the' ? crude .oil had to be improved-, drilling and production methods hark to ? be improved and the supply of electric current for Matzen had to be developed, etc. Steps to do this were undertaken immediately. . . . . . . -. . . . . . . . . . . . . .. .. . ? ? ? ? ? ? 12_:. ? ? 00 00 ? 0 ? ? ? ? ? ? ? ? .? ? .? ?? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? 55 ? 1-3 0 .f3 1-, ? t-,. .. ? 0 I21 cD 1-- . ? % ? 1 Muehlberg -41 ct ts1 0 0 S:. G 0 '11 CI ct 0' In H > P, 0 '1 7-."- 1-, . fro In ? ? . . . . ? . Plant . . :__ 0,. . ... c.: t-- \:-.4: .... ;--?. .,-- C. k.ri 2.? ?--, ? - local* rJ '3 4.- roi-J\ CD 0 r-, Ul ,- ? H . E. Unusea ? ? . r.) .1... , I? . I-, i 'II% Pj ? . . . Eruptive wc."11s . 1-s o r- P es . ct? P- o z cl 0 ? . z- . , paz. lif t ello . r 3 N: . 1, - 1%) 1:-. r.) C , r..) o Pz.h-up -:(..1.19 ' ? C I C\ I ? I ''ippel *.:0118 c ? _ ..1 I-. ?-?-: \....i 1-, 1' J (..) ? k um ? . )--. iv I t ro rs,..) i-, Active on reportin, lay ? t--. , _ ? 0 .. ? - ? Vet..., ..* 1. 0 U.2 e ? t-i 1?.) .. r...") IN) plorator; tells ? . . ?. rCfSr.) '...: ells . ? ? . ? ? ? ? ? ? ? ? . . ? ? . . . . . . . . . . . 1. . . . . . ? ? . . ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ,.% ? Third Section. ? USIA PLANTS I. The USIA Industrial Plants* 1. History and?Organiation ? ? A. Administration ? Along with the tSIA Central Administration, the following adminis- ? ? ? trative?posts comprised th.e administration of industrial 0:ant's in ? ? ? *Austria:* ? ? ? ? 1. Marten: Mines. Irop production. 2. Podyomnik: Machine Lonstruction. ? Autovelo% Automdtive industr:). Zement: Constructi?pn, construction materials, glass industry. Kabel: Electrical cable an, cable industries, ? ? U. Kraska: Chemical 'industries. ? 7. Lete): ? Textile and leather industries. 8. Wkus: Foo fJ and lu:ury'indudtries. Levi: Agriculture, forestry, paper and wood industries. ? ? In 1)5, Kraska was amalgamateu with W41s. is also possible that in the folloAng year Autovelo was uissolved and .taken over by Zement. B. Internal.Devlopment of Inuustrial Administration ? ? ? ? The ,evelopment of the individual adiainistrations.sL.emq not to ? ? have varie, much. ? There were the following divisions: ? ? ? . ? ? General Dire' tion, ? TechniLal,?or'Plans Div46iori; Persorinel and*Curtural Division; Com- ? ? ? Amercial Piwision; Economic Division (Acho); Accountint24 and, there . . 1. ? ? were, at different times, Legal divisions. ? ? ? ? ? ? ? ? ? ? ? ? ; 125 ? ? ? ? ? ? ?? ? ? ? ? .? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 _ -? ? ? di ? ? ? ? ? ? In some administrations, the Commercial divisions tievelope4 into ? purchasing and sales divisions (such as Everkon). In the cases of ? Wkud and Letex they became retailing chains which later were'amal&tmated inti ORT. ? ? C. Functions of the Industrial Administration ? The following may be said of the Sunctions of these ddministraftive ? *branches: Sanctioning of plant plans and supervision of .their fulfill- . ? ment; drafting of consumption and work poms; aid in supplying th plants with raw, auxiliary and other materiels; aid the sale cc parts ? ? ? .o thv production; organization of the cooperation (finishing, exchange of machinery); the according of investment credits; acceptance of the guarantee for credits of the SMB; accep.tance of losses and the covering' ? of costs for the conservation of "closed down plants; collection of ? profits, taxes an, payments. ? ? ? ? ? ? ? That these funcDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ?????.?-? ? ? ? ? ? ? ? ? ?? . fulfillment of these plans for the benefit of the higlier offices; the ? ? transmission of accumulated profits to the higher'officev. (probably ? through the intermediary of the Soviet Military Bank); the acceptance . ? Cf the advice and plans of the higher offices and their elaboration of ? plans (particularly the fulfillment of supply and deliver' undertakings). D. Industrial Policy The industrial poIic of USIA presents the?followi:Ig interesting pointa: ? ? ? 1. Unprofitable concerns were closed down, unless this harmed ? the articulation of the plants. (Between '1946, 10_2, plants were clbsed down). ? ? 2. Losses were balanced out amon:; the various administrations. Collaboration between the plants and the individual branch administrations was nurtured. (For exampre, it woul(2, be ? ? necessary to establish whether the USIA Retail chain had harmed in any way the products of the FODU and au:ury ? industry or those of the chemical and textile industries.) ? ? . ? ? ??.? I. dhen any supplies were necessary they had to be obtained from USIA concerns when.possible. .The above demonstrates that USIA had a trade policy. The available documentation and statistics do not mace it possible to determine what role the rentability principle played if thcreby is meant the relation-. ? ? ? ship of profit to capital.. ? ? ? CX .greater importance for the industrial policy is probably the . ? . principle of economy (prgfit to cost or turnover). This is.substan- % ? til?.ted by the coTgosition of the ? formula whi;:h makes it possible to ? ? . . . . ? ? ? ? ? ? ? ? 127 ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? 'follow the development of cost, turnover and profit. Finally it is ? ? noteworthy that after an important decrease in rentability--in he most ? important branches between 1951-52 and 1954--the USIA complex was dis- ? ? ? Solvea after the 1955 State Treaty. ? Administration Year Rentability .9% Year Rentability . Podyomnik 12 26% 1954 12% Autovelo . 1951 16% 1954 ' 3% Kabel I . 1952 25% 195 17% Kabel II 1952 18% ? . 1954 12% Lete 1952 2'..)% 1954 15% Less 191 27% 19_? ? The considerable decline of turnover rentability was due, in our ? ? 'opinion, to the consolidation of the economic situation in Austria. E. Investment 17)2tLi_..a.' ? According to our statistics investments in USIA in .z,_tris were ? .e,traoruinarily little. Gross investments were 2._%, net investments were 1.7% ol tI turnover:. It was therefore hardly more than u10 million ? It is not possible to discern Lhe motives. behind these Investments from ? the .tocumentation'available to us. (See also: Preliminar-a Report cn ? ? ' the UsZ.? of the; Statistical L2sts f9r the USIA Incidstries,. page J).. ? ? fiorth of note is that the biggest investments .:ere ma.ie in USIA In the ear 154. Available.statiotics give no clue oR to the r.eason for this. ? ? ? ? ? ? ? 123 ? ? ? ? ? ? ? . ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? Investment by Bilanchea . Gross Investments Schillings ? Net Investments Percent of Sales ? . ' ? Schillings Marten 97,000;000 . . .. Podyomnik 302,000,000 Kabel 1 9)000,000 Kabel 2 q1,000,000 ? 1.0 . 2%5 0.9 1.4 61,000,000 229,000,000 2,,0000000 29,000,000 Autovelo 5,0O0,00O _ 1., 21),000,000 'Gement 72,000,000 ? 2.2 _j,000,000 Kraska 40,000,000 0.3 2i;000,000 Letex 112,060,000 1.0 . J.),000,000 Less 59,000,000 ,.0 58,00.0,000 ? Wkus 27,000.000 0.9 20,000,000 ? 82,1,000;000 17.6 612,000,000 ? 2. Performance of USIA Industr.y ? A. The Turnover; Its Structure and Development ? .(a) Total USIA Turnover ? ? According to .the definitive estimates that were arrived at through ? ? study of statistical questionnaires apd throw.f,h stu,ly of uhe lists of employees available through the Austrian so,ial securit. offices, ? . . have arrived at the conclusim that the USIA turnover as in the order of ,0,000,000,000 schillings. (Calculate, on the %alue of mone in This is considerably more than our March 1)_7 estimate (See Preliminary Draft, page 2.,) which we lowered by.one-tHiru, in ,onsilera-? ? tion of uneconomical status 9f USIA. It is a fact that the examination ? ? ? of the. entire USIA comple:; does not furnish apy reason for ass4m1ng ? ? a partl2ularly low rate of pi-oductivity% ? ' ? ? ? e ? ? ? ? . With r:egard to or nol:; edtimde it shOuld'be notetl that ?,:e settle . . % ? . ? ? . ? ? ?. ? . . . . . ? ? ? . ? ? ? . the 9,uestioLI ol.' value?with aid of the industrial priee'iride : In thc? ? .. ... . % ? . . . . ? ? %. . : . ? ? . . . . ?? . . ? ? f29 ? .? ? . .. .. ? . . ? . ? .? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? years 1951-55 the -industrial price index was very stable,, but hate3 12tle ? ? ? value with regards to the years before that, ? Estimation of the value also hits? another snag and that is the fact that a part of USIA's domestic turnover ?'stas not calculated on the ? official prices, but rather on those of the black market; which were appreciably higher. This was so for the year 1949. This is aaso a reason why the price index, which is based on official prices, cannot be put to unlimited use. Finally, it must be said that our statistical questionnaires were only completely answere.1 well-managed concerns an,. that it was these answers which the basis for our new estimate for all concerns. ? Taking these elements into consideration, one comes to the conclu- sion that for the ;ears 1946-195: the minimal sum was around 2(,000,000,000 schillings and the maimal 36,000,000,000. ? ? . The turnover of )6,000,000,000 was distributed among the?branches ? of USIA ? ? as follows: Branches Employees anti Total Turnover of USIA Industries 1946-55 Turnover) ? basis)._ Employees Marten Podyomnik .u,O 10,02, ?.?)) ,,Y),),000 Schillings 9,160,000,000 Kabel ),746 ? Autovelo 2,146 1,928,0)0,00G Zement ? ? 6,589 2,663,00J,00u ? Letex 5,213 5,325,000,000' ?? Kraska ? ? 1,547 ? 2,67',000,000 Lus Industries. 1,146 1,150,C,00,000' vIkus ? 2,221 21220,000_?00J ?USIA jhdkldries 16,191 ? 6,023,300,00u ? ? ? ? ? ? ? ? ? ? ? 1;10 ? ? ? ? ? ?.. ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? Machine construction, mining and heavy industry (Marten), textiles ? ? ? ano?the electro-industry were the most important 'parts of the USIA ? complex. ? (b) Turnover Development ? ? ? ? In our 'Provisional Report on Employment of the Statistical Questionnaires," we have shown that the branches attained their greatest ? ? output in 1952 or 19.? ? ? ? The years 195i-51 and 1.. were crisis years for USIA. ? The best ? years were 1)49 anu 1952: ? ? ?? ? .? ? ? 1 7;1 ? ? ? o ? ? ?? ? ?? ? ? .? ? ? ? .?.' Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release . 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release . 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? (c)5 Turnover Structure ? ? ? .* ? ? ? ? ? ? ? ? ? . Whereas it was on.17 possible our "Preliminary Report?on tle ? Use of the Statistical Lists for the USIA Industrie f!" to give figures ? without Wkus and Less and including Wien-Film, importaht changes Come . ? ? about when these two branches are included. Branches ? ? ? ? Sales Structure ? ? C Sales East Bloc BWR ? ' Ddmestic Exports (1955 Value) and Soviet Clear- to the Administrations ink. House West 14a.refin 6.093 1.480 95 ? 3,638 18 Podyomnik 9.160 r,.381. 898 2.180 201 Kabel 1 2.772 1.114 ? 6o 976 976 17 Kabel 2 2.04r, 704 211 1.108 22 ? Autovelo ? 1.928 730 251 868 19 Zement . 2.662 - 2.663 Kraka 2.67, 1.-',$7 27 1.09 Tmf4lv 2:34 1.261 1.704 Less-Industries 1.150 204 575 366 Wkus. 2.220 1.898 ,322 ? 36.028 13.853 6.742 15.1-'ii 298 ' Average 100% :38%. 19,1% 4270 ? 1% ? The high degree of dependeme on the Aust.:clan market (42%) and the ? ' ? high degree of mutual inter-dependence (e-xpresed bj 19% under NIR) ? is particularly striking. ,The East Bloc plays a big part with S%. Exports to the West were not important. ? ? (d) .Number of Employees ? ? ? ? ? Th a figuDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ? ? S ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? . ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? e ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? c ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? , 1 ; ! 1 1-- -- - . i ? ? ? ? - ? ? ? ? ? ? ? ? ? . ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? e. ? ? ? ? ? . ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? - v.; ? ? ? ? ? ? ? *. Bs. USIA Profits ? ? ? ? ? According to our statistical figure's, turnover rentability. was . ?? . . ? ? ? ? 19 percent. ? Total profits of USIA inddiatries were probably in the order of ? ? six bil).fon, nine hundred millioi schillings.. ? The following table shows the profits by branches: Turnover Rentability and Profits ? Branches Turnover (Basis 1955) ?Ren.tability % Profits of Turnover ? ? ? . . Marten 6,093,000,000 17:6 . . 1,072,090,000 Podyomnik ? 9,160,000,000 19.5 1,786,000,000 Kabel 1 2,772,000,000 ? 21.5 596,000,000 Kabel 2 2,045,006,000 ? 18.0 ' 368,000,000 Autovelo. 1,928,000,000 12.1 237,000,000 Zement 2,663,000,000 1.0.6 282,000,000 Kraska 2,673,000,000 22.0 588,000,000' : . Letex .?,i24,000,000 23.5 1,251,000,000 Less. 1,150,000,000 17.6 . 202,000,000 Wkus ? 2,220,000,000 . 23.5 ? . 522,000,000 ? . : _. ?...-.n ^,-.^ ^nn lel.. 6,904,000:000 lolueo,uvv,vyki ----- ?,-;;;?? ? C. Production for the Eastern Bloc and the Development Of Deliveries Thereto ? ? Deliveries to the Eastern Bloc probabry were about 3 percent of the whole. Under "East Bloc" is understood deliveries to the Soviet ? ? ? ? ? Union, to the Administrations,'Sales. Offices and to:the KZB. It 1.8 noteworthy that between 1952 and 1.954.there was a big dip in deliveries ?? ? . to the East Bloc. ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21: CIA-RDP81-01043R003700130004-9 - ? ? ? ? ? ? ? ? ? ? Branches . (1951 . 100). 1952 1953 . ? ? 1954 Podyomnik ? ' 156 157 136 ? ,n Autovelo ? ? 130 51 Kraska214 145 1273 Letex 112 10 ? 45 Less 160 80 Kabel 38 8r.5 ? ? ? Podyomnik alone is an eNception in the Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? Lower Austria.' ? 1. "Sirius" GruenbOch AG, Gruenbach 2. Gebr. Boehler & Co. BOehlrwerke,. Waidhofen 3. Trbfaiacher Eisen-und Stahlwerke AG, Klosterneuburg ? ? 4. Zinkhuette Neu-Erlaa, VI" New-Erlaa. ? 5. Schmidthuette Krems 6. Stahl-und Temperguss AG, Traisen ? 7. St. Egyder Eisen-und Stahliridustrie gt. Aegyd, Feesthof ? Burgenland. 1. Kaerntner Bergwerkgesellschaft, AnDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ?? ? ? ? ? ? ? bynamie rentability comparison (on the basis'of 257,600,Q00?000 sch.) ? ? Year: of greatest turnover rentability Year of greatest profit Year of greatest?increase of rentability (increase as against 1950) ? ? Lowest rentability Greatest rentabillty drop 1.952 with 22.7% 195% " ? 22.7% 195). "J. 25.2% 1954 14.2% 1953 - 50.3% ? ? ? Indices for the increase of rentability in 1951: ? . 1950 1951 Change Increase of paid-in profits . 1 3 . .1-? 108% Increase of administration dues 2 ? 4. 26% 'Increase of sales tax 1 2 % ? Indices for the derrease of rentability in 1953: ? Decrease of paid-in profits . . Decrease of administration dues Decrease of sales ta.:,. ? 1952 1953. Mange ? . 4 5 . 3 1 4 ?? 2 - 533% - 40#5 .-- 14% . ? C) Investment Policy Estimated net investments 61,000,000 schillings Type % of turnover Schillings ? New investments))_ gross 1.6 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? 1. Hana.Bilstein, Fabrik f. Hebezeuge, Atzgersdorf und 2. Gesellschaft fuer Hydraulik-m.b.H., Wien X. . 3. Linde Riedinger, MaschinenfAbrik, Liesing. ? ? ? ? ? ? ? ? ? ? ?? ? ? ? ? ? ? ? Lux Motorenfabrik u. Eisengiesserei AG, Wieh X. 5. Niessen-Werke KG, Liesing. 6. Ostmaerkische Eisenbahnsigndlwerke G.m.b.H. Wien XX. 7. Schaeffv & Budenberg G.m.b.H.1.Wien X. ? 8. Steyr-Daimler Nibelungenwerke, St. Valentin and Wien. 9. Tabak-und 13pezia1maschinen1abrik, Hofherr & Schrantz ? ? G.m.b.H. Wien XXI. ? 10. Teudloff-Vamag Vereinigte Armaturen-und Maschinenfabrik AG, Wien XX. 11. Aagner-Biro AG, Wien.XXI And Voesendorf. .12. Wr. Werkeug-und Maschinenfabrik, Wien XX. 1. Maschinenfabrik Pichler &*Co. Wien XXI. ? 14. Elsenbahh Venkehrsmittel AG, Wien I. 15. Wr. Lokomotiv AG, Wien XXI. ? 16. Wr. Brueckenbau-un'd Eisenkonstruktion AG, Wien X. Lower Austria: ? ? ? 1. Bahnbedar? AG, Neu-hrlaa. 2. Elko-Metallverarbeitungs-Ges m.b.H. Wlen-Siebenhirten. Enzersfelder Metallwerke AG, Enzersfeld-Sollenau Neurissenhol!. 4.. Fabrik landifirbschaftlichey Geraet9 SchornCiorf Wilhelm 1. Abt, G.m.b.H. Wopfing. Peter Ginzler OHG, Ybbsitz. 6. Globus Waldgatter Ges. Kliemke & Co., St. Veit a.d. Triesting. 7. Heimpel.& Besler Ventilatoren & Maschinenfabrik, MoeSling. u. Josef Heiser, vorm. J. Winter's Sohn, Kienberg-Gaming. Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ??? ?? ? ? ? ? ? ? 15. J. M. Voith, St. Poeiten. ? ? ? ? ? ? ? ? ? 16. Wr. Neustaedter Maschinenwerk6 G.m.b.H. Wiener.Neusadt. 17. Haeusermann Fabrik chemischer Gravueren KG; Zitternberg Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? S. ? ? ? I. ? a ? ? I. . Deliveries 1951 1952 ' Change ' to. . I ? % . . Total of East Bloc Sch. 204,000,000 317,000,000 ? BWR ? 27,00Ul000 .?46,00o,000 Variout Domestic 94,000,000 122,000000 Exports t!o?West 12,000,000 2,000,000* Inelices for sales decrease in 1954:. . Total of East Bloc Various Domestic BWR Exports to West B) Rentability_ Estimated total profits: ? ? ? ? -I- 59%* 4. 68% 4- 30% 1953 1952 Change Sch. 319,000,000 278,000,000 - 156 102,(Q0,000 90,000,000 - 12%. 50,600,000 450000,000 - 9% 1,000,000 21,000,000 4 16t1 ? ? ? ? Sch. 1,786,000,000 Basis for estimate: Communicated sales rcntdbility ? ? ? Profit structure (calculated on tile basis of 3,496,000,000 sell.) ? ? ? ? Type ? % of sales .Schillings ? ? ? Profits paid in ? 6.3 577,000,009 Administration dues 8.2 . 751,000,000 ? Sales tax 421,000,000 ? Trade tay 0.4 37,000,000 Capital tax 0.0 Coollection dues 0 19.5 ? 1,786l000,000 ? ? Dynamic rentability comparison (based on 3,496,000,000 sch.) ? ? Year of the greatest sales rentability 1952 with 26.1% ? Year of the greatest profit' 1952 ? 26.1% Year of the greatest rentability increase 1949 132% ? . . . (Wrrease as against 1949) . . . . . . . . ? i ? ? Lowest rentability .1954 with 12% ? .. ? . . . i ? greatest decrease (as against 1952) ' 1953 . . . . . ? ('.:Lecrease as against. 1953) . . . ? ' . ." I . ? ? -__ . ? ? ?? ? ? ? ??? 1'42 ? .? ? ? ? ? ? ? ? ? 1?? ? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ,? ? Indices,Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ? ? were.Waagner-Biro (A and C. plan'ts) in Vienna and J. M. Voith of at. ? ? ? ? Poelten. (Compare: Report on?the'Conversetion.of 5 December 1956," ? ? Rt!port on C Plant of Waagner:Biro... November 7 and 14 19561" "Con-? versations of 10 and 13 December 1956.) (The Roman numeral indicate tie sections of these reports so that the remarks made here can be ? S. ? ? ? referred directly to the corresponding original reports). ? I. According to Waagner-Biro the dismantlIngs took place in ? ? . May and June 1945. This was to' entail the removal of the greater Dart Declassified in Part- Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ?? ?? . . ? . III. In both plants the Russian directorial team was composed of . .. . ? ? ? ? a Director General, a chief of Technical servic.es (Chief engineer) ? ? and a chief of Administration. (Chief Accountant). ? ? ? Individual Plans divisions were created in both plants. Along with ? ? ihe booklleeping division they handled the extensive plans and repoyting work. At Waagner-Biro, the plans were passed on to the Russian Plans ? Buero for approval. The reports, particularly the balances, with'all . ? . ? ? ? ? . annexes, were sent by the Soviet General Director to the corresponding ? ? ? Russian services. IV. The financing of both plants was carried out along the lines conp.ined in report "Analysis of the Soviet Balance Plan. ? ? V. The recipients of Waagner-Biro and Voith products in thc East ? ? ? Bloc are known. The exceptions are deliveries to Soviet Russia and ? deliveries on special order. .(Pedyomnik etc.) However, even direct ? ? deliveries to the East Bloc states had to have Pody6mnik's authoriza- tion. Business with the Soviet Union was done through Podyomnik, ? through tile USIA Purchasing and Sales Office (Everkon) and thrqugh KZB. (0entral.Commercial Office). ? VI. About 10. to 15 percent. of Waagner-Biro's ne(:ds in supplies ? ? wexe purchased through Everkon, .which was a part of KOB. Fifteen to ? ? ? ? ? ? ? 20 percent of Waagner-Biro's imports came from the East Bloc states. ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? - ? ? ? ? ? ? - ? ? ? 1 ?? . ? which were hard to get in Austria, were ordered on a quarterly basis. ? ? ? ? ? ? VII. After acceptance of the order by the Soviets, the transport ? ? usually was undertaken by Juschwneschtrans. ? Deliveries to Poland and ? ? ? Romania went through the Express company. ? Waagner-Biro said that the following points were used for exports: ? ? For Russia " China " Poland " CSR Munkacevo Bad Schandau Stalinograd ? Prerau, Breclav, Levice,'Trebusice ? . ? VIII. W-B (Waagner-Biro) (A Plant) qieports that only replat!ement ? ? investments were made or such as were necessary to complement the automobile park. In C-Plant the most important investments were made ? in 1953 and particularly in 1954. In 1955 more than 1,000,000 schil- ? ? lings'were spent to build a workingmen's clubhouse. ? In some cases the machinery that was delivered did not correspond to requirements. ? ? ? IX. At W-B, the Soviets pushed the production of dredgers, drum ? winches and corrugated iron hangars. At Voith's, the manufacture of . .? ? spinning machines was introduced into the production schedule. 0-B work norms were increased in 1953 according to reports by a reppesenta, tive'oll USIA: In general; however, the method of work was not touched: Al Voith, great stress was placed on the utmost use of available labor ? ? ? for.ces. (Lack of specialists). ? ? ? ? ? ? X. IN' Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ??? ? ? ? ? .? ? ? ? ? ? ? ? ? technical division?) Each month, the plants had to inform this co- . ? operation organization 40@W:4-W4w of their cooperation desires. Cooperation plans were then formulated. . ? ? ? . ? Cooperation extended to differ.ent branches. The advantages were:. facilits4ion of fulfilling delivery dates, favorable prices and the ? ? exchange of: necessary machinery. There was also one general admonition and that was to see to it that the il'equirements in supplies; raw6 ? materials etc. of other USIA branches were covered. One should also ? ? not lose 'sight of the fact that this cooperation went hand in hanuwh financial advantages. (Voith) ? ? XI. Personnel Policy ? The Sbviet personnel was hired by :the USIA ACministration. Already r in 1947, Voith had eneral Director who was an outstanding specialist. The infiltration of Communists into the plants was 1:n the hands ? ? of three units which were entirely under Communist influence: 1. The Factory Organization. (Betriebsorganization - BO) A ? ?? committee of pure Communists belonging to the individual works divisi.ons ? (Communist cells). ? 2. The Works .Council which was composed in accordance with the ? shop (plant) elections. ? ? ? 3.. The Personnel Division which was staffed by non-specialist . ? Communist outsiders.. With regard' to the relationship of these divisions to the Soviet ? ? . ? .: Chiefs, Voith reports that the Communists were able.to push through ? ? ? ? ? ? ? 147 ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? . ? some o? f their wishes against the SoN:iet lead6rship with the aid of the ? ? ? ? ? ? ? ? ? ? ? ? central Personnel Office. However, necessary.specialists could be ? kept in a plant by the Soviet plant chiefs against the wishes of the Communists, even when such specialists happened to be former I:azis. Finally, the Cultural Division (W-B C Plant) or the Cultural ? Committee (Voith) played an important part in the service of t4 ? Communist Party (Organization of demonstrations, visits to the Skala ? Theater, .etc.) ? (c) Autovelo ? ? 1. According to a swrce, the adminiftratiorrof Autvelo was ? dissollied during the USIA time and amalgamated wih that of Zement.. It has not been possible to check this report. It. is certain, however, that it was not very important sinc(,... 'already in 1949/50 the Goert7 ? ? Optical Works had been taken over by the Kabel administration. It is ? prbbablp that the following were under, the Autovelo administration: . Vienna ? 1. Draeger G.m.b.H. Vien? na XX. 2. Kloeckner-Humbold-Deutz AG, Vienna X. ? Kuehler-und Metallwarenfabrik Goll & Dr. Strohschneider, Vienna XX. ? 4. Rudolf Otto Mayer, Schwechat. 5: Plotoren unci Reparaturenwerk Oelfeld, . ? G. Adolf Nickerl, Inze'rsdorf. 7. "OBEGE" Ofenbau G.m.b.H. Vienna XXI. ? ? G.m.b.H. Vienna XXI. a: Steyr-Daimler, Vienna X., 11 and XX., ? 9. P.C. Wagner KG, Zlektrosithwefsswerk, Vienna XY! 10. Falfs,phirmbhu.Josef EsohnGr.KG; ? ? ?? ? ? *8 ? ? ? ? ? ? ? ? r, Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? Faulhaber & Co., Vienna IV. 12. Curt Pomper, Vienna IV. . ' Lower Austria ? ? ? 1. .Gustloffwerke, Otto Eberhard, Patronenfabrik-.Hirtenberg, Hirtenberg. ? A total of 13. plant, which in 1954 had a payroll of 2,146 workers. 2. The following data is available on their performance: number of plants who reported 6 ' fully completed and evaluated questionnaires- 4 .Incomplete 2' ? ? ? ? Evaluation A) Sales ? Total Autovelo sales: 1,923,000,000 schillings. ? Sales structure (calculated on the basis of 813,500,000 schillings) ? ? Deliveries to % of- sales ? Schillings East Bloc BWR Various Domestic E-ports to West ? 41 13 45 790,000,000 251,000,000 363,000,000 ? 19,000,000 Dynamic comparison of sales (on basis of 313,500,000 schillings): ? ? ? Year of highest sales 1952 Year of greatest sales development 1952 1- 32.5% Yea y of'greatest.sales drop 1953. - 20.45:1? IWices for th increase of safes (based on 31Z.,500)000 sch.) ? ? ?? ? . in 1952.. ? ? ? ? ? ? ? ? . 1)=9. ? . . . . . . . . . .. . .. ? ? . 7 . . - 1 . .? . . . . . . . I ? . ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? Deliveries to: .? S 1951 ? ? ? . ? 1952. ? ? ? ? ? ? ? Change East Bloc Sch. 56035,000 73,991,700. 4- 30%2% BWR 10,406,300 25,359,800 +143.70 Various Domestic 47,408,900 52,420,000 4- 10.6% Exports .to We.st ? 237,100 445,000 4. 07.7i5 ? Indices for the decrease of sales in 1953: Deliveries to: 1952 1953 Change Total East Bloc 731991,700 29,387,100 ? - 151.8% BWR 25,359,800 25,013,200 - 1% ? Varl9us Domestic .52,420,000 72,042,6(50 4. 37.4% Exports to West 445,000. ? ? B) Rentability ? ? Estimated total profit 237,000,000 ecu. ? 'Profit structure (based on 313,506,000 schillings) ? ? Typp % of Sales Schillings. ? Profits paid in Administration dues Sales Ta:g Other Taxes ? 1.7 6.7 3.9 33.,000,000 122,000,000 75,&30,000 ? 12.3 237,000,000 ? ' Dynamic comparison of rentability (based on 313,500,000 schillings). Year of highest sales rentability 19,1 ? 16% Year of greatest profit ? 1952 1D% Year of greatest rentability increase 1951 ? rowest rentability 1954 064 tip Greatest drop in rentability 1954 - 75% ? ? ? Ind&ces for the rentabilit incr-as13e in 1951: ? ? ? ? ? 150 ? . . ? ? . ? . . ? ? .? ? ? ? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? . . ? ? ? ? ? 1950 . 1951 . Chang ? Increase in paid profits 742,000 2,886,600 4., 289.0%. Inerease in administration ? dues 91119,309 10,972,300 4- 20.3% ? ? Iricrease in Sales tax '3,274;400 4,561,600.. 4. 39.3% Increase in various taxes 129,800 ? .Indices Tor rentability decrease in 1951k: ? 1953 1954 ? . . Chavige Decrease in paid profits 3,312,500 2,501,500 - 32.4% ? ? .pecrease in hdministration . dues 8,399,700 1,732,400 2,84.9% Decrease in Sales Tax 5,7)1,03..) 5,203,300 - 11.3% Decrease in various taxes 151,400 195,900 4- 29.4% C) Investment policy ? ? ? Type % of Sales Schillings Now Investments 1._ 25,000,000 &Ineral Repairs 0.f; 10,000,000 Gros Investments 1.3 . % ,.,000,000 Amortizatkon payments 0.'- ? 10,000,000 Net Investments 1.3 2,b00,000 Higtiest gross investments were dm 1954.with total of ?Sch. 4,121,000. ? This is 21,.5% of the total gross inventMent. ? . ? ? ,. No plant questionnaires were filled out. (d) Kabel ? ? ? 1. The followinDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? (cont'd. from preceding page) ? ? ? ? ? ? Deliveries to % of Sales. 'Schillings ? ? ? ? ? BR Various Domestic 'Exports to West__ 40.2 ? 1,114,G00,06'.., 24.0 605,000,000 3.,.2 ? 976,000,000 J.6 17 0p0,000, loom 2,772,000,000 Dynamicc? comparison of sales (baseu'on 1,!:.00,003,000 sch.) Year of *highest sales . 1y,2 % Year of greatest sales developmeni 1951 Year of greatest sales drop 19, ((compared with 1952) Indices for the sales increase in 1)1. (based on indications 'given by ? firms having a totality of 70% of the sales). ? Deliveries to: 1950 . a951 Change East Bloc ?5,000,00") 114,000,000 4- 226% BVIR 32,000,000 6?.;,0C,0,000 4- 10% Various Domestic 56,000,000 ,.,3,000,00- 4- 4D% *Indices for the drop in sales in 195, (based on indications given by . firms having a totality of 70% of the sales). ? Deliveries to: 1952 19!,3 Change Totality of East bloc sales 116000,000 12(J,000,000 4- ?,%. BWR 61,000,000. 31,000,000 - 161% Vavious?bomestic J61000,000 50,000,000 -. 72% Exports to West 7,000,000 B) Rentability ? Estimated total profit Profit structure (based on 1-1-- billion sch.) ? ? 596,000,000 sch. . . ? ? ? ?? 153 * ? ? ?.? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ?? . ? S. ? ? ? . Type Qf Profit % of Sales ? Paid profits 10.0 ? 277,000,000 Administration tax 7.2 199,000,000 ? Sales tax 4.2 115,000,00d Capital tax ? 0.1' 5,000,000 ? ? . ? 'Collection dues 0.0 ? Other ? _ 0.0 21.5 596,000,000 ? .121.naml.c comparison of rentability (based On 11 billion sch). rear of highest sales rentability 1945, & 50 with 28% Year of highest absolute profit 1952 ? 25% Year of greatest rentability increase (as against 1947) ? 194:, .1. 47% Lowest :rentability 1953 with 17% ? Greatest drop ? 1953 - 47% ? ? Indices for rentabllity increase in 19;, (representative plants) ? ? Increase of paid profits of 19-17, 2 million sch. to 13,700,000 sch. 4. 426 Increase of administration dues of 1947 4,600,000 sch. to-)),'600,000 sch. o6 Increase of sales ta., of 1947 1,100,000 to ",000,000 4. I9i Indices for rentability decrease in 1953., (Representative plants.). Decrease of paid profits of 1952 37,700,000 to ,-,200,000 -(300% Decrease of Admin. tax of 1952 22,100,000 to4'000,000 . Decrease of: sales tax of 1952 13,100,000 to1C0.00,000 - 29% General remark: rade tax, capital tax, collector) dues 'were intro :ced ir 1948 for the first time. ? C) Investinent policy ? ? ? ? ? ? Estimated Net Inyestment 2,000,000 sob. ? ? ? ? ? 154 ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 S. ; ? ? Type ? % of Sallies Schillings ? ? ? ? ? ? New invest?ments ? 1.1 . 31,000,000 General Repairs 0.3 ? 8,000,000 Gross investment 1.4 ' 39000,000 Amortization payments ? 0.5 14 000,000 Net Investment ? ? 0%9 . 25,000,000 ? Dynamic comparison of tnvestments: ? Greatest gross investment was in 1954 (25% of the total of investments) ? ? Lowest investment was in 1949. ? D) .General remarks ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? Ileliveries to % of Sales ? Schillings Deliveries agaipst Soviet part of profits ? ? ?Responsible administration 29.5 ? ? KZB 3.4 BWR 10.?? East Bloc 1.5 ?Various domestic 54.2 ? ? Various countries 1.1 100.0 (East Bloc?total = ? 603,000,000 ?70,000,000 211,600,000 31,000,000 1,108,000,000 22,000,000 2,045,000,000 Dynamic .comparison of sales (based on 900,000,000:sch.) ? Year of highest sales 1952 ? Year .of highest sales developmt. 195i* increase against 19O. 4 3% Year of greatest decrease ? ? 1954 decrease against 1.95; ? 23% Indices for the sales increase in 1951: 1950 ?? 1951 Change Deliveries to the East Bloc ? 48,000,000 58,000,000? 20% ? BWR E1,000,000 6,000,006 4. 7% Various Domestic 515,000,000 80,000,000 4- .c.5% Indices for the sales drop in 1954: 1953 1c)5, Change.. Total Est Bloc deliveries 9,000,000 ? 26,00.6,000 BW E 19,000,000,29,000,000 4. 53% ? ? Various Domestic 64,000,000 51,000,000 - 26% B) Rent.abilAy: ? ? Estimated total profits Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? - ? ? ? ? Type ? % of Sales . Sohillings Paid profis. 5.4 . 110,000,060 Administration tax 6..5 1'33,000,090. Sales tax3.7 76,000,000 . . Trade tax. . .0.1 ? 2,000,000 . ? Capital tax 0.0 ? Cdlection dues* 0.0 *Divers taxes. 2.3 47,000/000 Total profit 18.0 368,000;000 Dynamic rentability comparison: ? Year of bieatest sales reritability 1949 with 25% Year of greatest profit (absolute) 1952 ? 18% ''ear of greatest rentability increase cannot be calculated ? Lowest rentability 1954 . 12% . . . Greatest decrease 1954 - 42% Indices of rentability increase: ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? Type % of Sales Schillings New Investments ? 1.5% 30,700,000: General repairs 0.5 ? 10,200,000 Gross investments 2.0% 40,900,000 . . AmoPtiza;tion payments ? o.q% ? 12,300,000 ? ? Net Investments Z.4% ? 28,600,000 ? ? ? Dynamic investment comparison: ? ? ? Highest gross investment: 1954. D) General remarks: ? ? The optical industry has some peculari:ties of which the C.P. Goertz . ? company is representative. Originally, the Goertz Co. was under Aut'ovelo administration, but passed under Kabel administration in 1949 ? or 1950 because it produced some electrical equipthent. The Goertz ? sales development was unusually stable and from 1951 on was betl:reen ? O-32 million.3 schillings a year. The net investment quota was around ? 30% higher than in the electrical industry. Sales to the Eastaldc. were extraordinarii high, being 69% of total sales. (Approx..1-,0 million schillings). It may therefore be concluded that the Soviets placed special value on the products of the opticd1 industry. 3. A review .was made of the biggest cable works, the Vienna Cable and Metal Works,yienna. (Aide-memoire, Conversation of 20 ? September 1956). The first review led to the elaboration of the ? ? ?? ? 'USIA plant questionnaire" and for the firsts. time gave evidence of the ? ? . . exist6nce.of important.original?documntation .(bal'ance sheets, standard ? ? . . . ?aounting forms, ptc), ? ? ? ? ? ? ? . . : ? ? ? ? ? ? ? ? ?:* ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? I. ? The plunt'reported that 'USIA was founded in April 19467 ? ? ? and that the plant was taken over by USIA: Prior to that the occupa- tion authorities had taken a part of-the raw Materials away and aloo dismantled a part of t.he plant. II. Administration dues fluctuated between 2 and 10.4% and Igere. ? paid to Kabel's adminidtration. ? ? ? ? III. During the USIA regime, the concern had 12 General Directors. of w'nom several appeared several times. At the beginning the chiefs ? were military men,*out.they were soon changed for .civilians. The technical personnel improved steacUly. In the final years, th.e 'odder - ship of the concerri was composed of three Soviets: the General D:trector, ? the.Chief Constructor and the Commercial Director, (chief Accountant). ? ? IV. Financing was?carried out in accordance with the usual ? formula: credits for production material through SMB, investment ? credits through the administration. It must be noted that in order to ? maintain the BWR circuit, the administration had .to make credits avail- able to the plants. when their own were insufficient. This is an ? 'cation of. how important BWR was considere,i. ? V. Exports 1440m, in part, through KZ.B. The firms were only in ? possession of 'trans-contracts which did not contain the names of the ? ? ? Purchaser. Price policy: or exports .to USSR the plant could only ? charge px:ime cost plus 5%. All other contracts were calculated on ? ? ? ? . westerri world market prices. Kabel's administration had a say ;1_11 the. ?? . ? ? ? S. . . formulation of prIce pone:, . . ? ? ? ? ?? ? ? . ? . ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? . . . Zement to Zement: ? ? ? ?? ? ? ? ? 1. The foilowing building and glass industliy giants belonged Vienna: . ? 1. Heinrich Kohler, Vienna IV 2. Union Baugesellschaft Vienna-Himberg ? Union Baumaterialien Co. Vienna III ? 4. Allgemoine Strassenbau AG, Vienna IV 5. Allgemeine Bauges, A. Porr AG,'Vienna X b. Otto Guthiln vorm. Anton Anderer, Vienna XXI 7. Philipp Holzmann AG, Vienna IV J. Sager & Woerner, Vionna IV Glasfabriken Oberdovf-VcAtsberg, Adolf Koe'rbitv:, Vienna ? IV, XVI ? ? 1.J. Wiener Glashuettenwerke AG, Vienna XXI ? Lower Austria: .1. Deutsch-Oesterr. Christbaumschmuckfabilk J. Eggeling, 2. ? Traismauer ? ? Erste oesterr. Masehinenglasindustrie AG, Brunn am Gebie t ;. Glassppnnerei Stockerau G.m.b.H., Stockerau. it ? 4. Moosbrunner Glasfabrik AG, Moosbrunn ? ? 5.. Oesterr. Glas,lachfalprik OHG, J. Eberspaecher, Brunn a. Gebirge 6. Aktiengesellschaft fuer Grob und Feinkeramikt Muenchen- Sinzig-Vienna (formerly Wr. Ziegelwerke) Leopoldsdorf 7. Aktiengesellschaft fuer Grob - u. Feinkeramik, Muenchen, Klein Poechlarn ? Upper Austria: 1. granitwerke Gusen, formerly Deutsche Er,1 - und Steinwerke ? Gusen ? ? Burgenland: ? ? ? ? ? ? ? ? 1. ."VEDAG yePeipigt:e DaChpappenfabriiZen AG, formerly ??. ? ?Amiant AG, yechnitz. . ? ? ? ? 0 ? 0 ?? ? ? # ? ? ? ? ? ? ? ? ? 1 ? . . . ?? . ., ? ? ? ? . . ? ? ? . . . i . . 160: ? ? . ? ? . .? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? 2. Pinkafelder Ziege.lwerke, 'Oskar Villaret anQ Alors ? ? Trixpamer, Pinkafeld ?? ? ? ? ? This makes a total of 19 (?Translator's Note: I make it 20) plants with a payroll of 3,589 employees in 1954. ? 2. The following may be said of the perfbrmance: Evaluation A) Sales ? Number of plants which responded: .10 Completed and evaluated questionnaires 4 Incomplete ? Estimated total sales: 2,663,000,000 schillings. Sales structure(ased on 376,000,009 schillings) Only domestic sales 6 ? Dynamic sales comparison (based on Y.(6,000,000 schillings). ? Year 9f highest sales 1954 . Year of greatest sales development 1953 Increase over 1952 4- 135% Year of greatest .drop 1949 Decrease over 194d - 23% Indices for sales increase (on basis of 376,000,000 sch.). ? Domestic 1952 1953 ? Change Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? . . ? ? ? Type ef o Sales S. ? ??????????????????????????? ? ? Schillings Paid profits 3:0 ? 80,000,000 . . . Administration dues 2.2 . ? 59,000,000 . . Sales tax '5.2 1_18,000,000 Trade tax 0.2 5,006,000 % Capital tax . . 0.0 . Collection duets 0.0 Other taxes Total ? ? ? ? 10.6 282,000,000 ? ? ? ? Dynamic rentability comparison (based on $76,000,000 sch.) ? Year Of .highest sales rentability 1949 with 12.2% Year of highest profit (absolute) 1954 ? 10:6% ? Year of greatest rentability increase 1949 20.0% ? (as against 1948) Lowest rentability 1952 & 5_ 9.:-,% Greatest drop ? 1950 -.20.0% (drop against 1948) ? Indices for the changes: ? ? ?Fluctuations in the prof it? and administration payments and in ? ? sales ta,.. Payments by the firms are liartly Only estimates. ? C) Investment Policy Estimateu Net Investment ? ? ? 59,000,000 sch. ? ? ? ? ? ? ? ? Type % of Sales ? Schill*gs ? ? New Investments 2.1 56,000,000 1 ! i? General repairs ? . ' 0.G 16,000,000 1 . i . ? . . 1 . Gross investments ? 2.7. ? ? ? ? 72,000,000 . . .. . AmOrtization payments 0.5 13_4000,000 . ? . . ? ? ? . . Net investments ? ? ? ? 2.2 : . . ? ?.. 59,000,000? ? ? ? . ? . , . . . ? ? . . . . . . . . ? ? . ? ? ? 162 t ,? ? .. ? ? . . ? . .. . . ? ? ? . . . . . : . ? .. . % . . . . . ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? ? Dynamic comparison of investment: Year of greates? t gross investment:.. ? ? 1954. The report submitted on the Danube Shipping Company indicates that the Porr Construction Company occupied a central position in the investment 'system. This company drew up the reconstruction plans for the Korneuburg wharf in 1951. There are no Interesting reports concerning the glass companies. The incomplete reports show that in 1954 the exports to the East bloc were 6% of the total of exports and that exports to the Western states was considerably more with 14%. The remainder of sales went to the domestic market. In 1954 the ? ? . glass industry was still making considerable piofitg. In that year sales rentability was 275 while in 1955 it was 33%. ? i. There were no plant reviews. (f) Kraska ? ? ? 1. As far as the internal workings of Kraska are concerned, it is known that the General Directors were Strvnovich, Faded f an ? Bushmarin. Some 15 Russians are gaid to have been employeu in the Kraska aaministration.. At one time or another Ivanov was chief of thv.Plans Division and Marosov, chief of the Technical Divlsion. (See report on the Chemosan-Union AG,.page 67.) The following firms were Omintstered by Kraska: ? ? Vienna: ? ? 1. Dekacite Kunstharzfab?rik, Vienna-Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ?? ? ? ? 4. Chemische Fabrik, Tempelhof, Preuss & Temlerwene, 'Vienna II 5. Hoefermayer und.Rinck, Vienna-Erlaa 6. Hydroxigen G.m.b.H.', Vienna IV (Gumpold:;kirchen) ? 7. Reinhold Fluegger &*Goeking, Vienna XXI 3. W. Megerle, Vienna XXI 9. Motsch & Co., Vienna IV 10. Ferdinand Muehlens, Eau de Cologne und Parfuemeriefabrik, Vienna IV 11. Kaloderma G.m.b.H., Vienna XXI 12. Oesterr% Chem. G.m.b.H.,Vienna IV 13. Gebr Schmidt, Atzgersdorf 14. Sidolwerke, Siegel & Co., Vienna XX 15. Vergasyngs Industrie AG, ? Vienna IV ? ? 16. Guenther Wagner KG, now Guentheeagner, Verwaltungsges m.b.H., Vienna X 1(. Vinzenz Wagner, Vienna XXI 18. Dr. A. Wander,. G.m.b.H., Vienna XXI ? ? ? Lower Austria: ? ? 1. Aktierigesellschaft fuer chemische Industrie, Rannersdorf, ? UA4er1anzendorf, Ste.beilhirten 2. Carbolineumfabrik, R. Avenarius, Amstetten 3? . Chemische Farbenfabrik H.M. Habich, Weitenegg Chemosan Union AG, Klosterneuburg 5. E.T. Gleitsmann, Rabenstein a.d. Pielach 6. Herbig Haarhaus, A.G., Voesendorf 7. Ludwig Marx, Gaaden 0. Spiritus-und chemische Fabrik, Pernhofen Dr. Hein?. Berkel, ? ? Pernhofen ? ? 9 Spiritusfabrik Loy; Angern ? ? ? ? : A total of 27 plants' which in 1954 had a payroll of 1,5=.7 employees. ?? ? ? ? ? 2. A study of the statistical q4estionnaires shows that tkiere . ? ? . . ? . were 11 plants vir4h answered the questionnaires.. Of the 13, four ? ? ? ? ? ? . . ? ? ? . . . ? .? ? , ? . were complete arld%nirie were incomplete. . ? . . . . . % ? ? ? ? . *: ? c? ? ? s. ? ? ? 164 ? ? ? ? ? ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ??? ? ? ? ? ? ? ? ? ? ? Evaluation: . A) Sales ? ? Total sales of Kraska ? ? ? ? ? 2,673,000,000 ach. . . Sales seructure (calcurated on basis of 248,667,500 schplings). ? Deliveries to ? % of Sales Schillings Total of East Bloc BWR Various gomestic Other countries ? 50 1 1,37,000,000 27,000,000 1,309,000,000 100 ? 2,673,000,000 Dynamic comparison of sales (based on 248,667,500 sch.) Year of the higliest sales 191.4 Year of the greatest sales aevelopment 1954 252.7% Year of the greatest drop 1953 ?- ? Incices for the increase in sales in 1954: 195 1954 Change ? Total of East Bloc 7,869,600 59,477,.00 I- 782.9% . . .BWR 362,000 1,30,000 .Jr 267.4% - Varioua Domestic 15,808,200 1).,17,6,600 -' 11.5% Other countries 30,100 ,34,=T00 + ,.4% ? Indices for the jrop in sales in 1952 19:, Change ? ? Total of East Bloc 11,613,600 7A869,60.0 - BWR ? "362,000 Various Domestic 15,585,200 ? 15,803,200 4- 1.4% ? Oth6r countries 87,390. 80.400 ?9.0% B) Rentabillty ? ? ? ? Estimated total profit 536,0004000 Sch. ? Profit structure,(bas0 on 2/+8;667,500 Sch.) ? ? ? ? ? ?? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? . ? ? ? ? ? ? ? ? ? ? ? . . ? Type % of Sales Schilling? ? . . Paid in profit 8.4 225,000,060 Administrative tax 9.0 ? 240,000,000 Sale tax ? . 4.2 . 112,020,C00 . Other taxes 0.4 11,000,000 22.0 588,(300,000 Dynamic rentability comparison: Year of highest sales rentability 1947 ? 3% Year of greatest profit. 1954 22% Year of greatest rentability increase 195,. + 29% . . ? Lowest rentability Greatest decrease in rentability . 195_, 1952 17% - 2),% Indices for rentabili4 increase in 1954: ? 195", Paid.profits 858,300 Admin. dues 1,681,000 . Sales ta.. ? 1,189,500 Other taxes 377,400 1954 2,062,900 11,876,80C . 4,284,U00 865,400 Change i. 140.i% + 606.3% + 26:)..2% + 129:3% Indices for rentability decline.1)52: . . . . 1951 ? 1)13,2 . Change 1 Paid profits 2,8311,000 1,630,900 - 73.7% Admin. lues 1,505,900 . 2,192,903 + '.5.S% ? Sales ta 306,400 Sales 1,344,6o6 + 6u.7% Other taxes 3,200 528,700 + 22 . 0% .? ? C) Investment Policy ? ? ? ? Only insufficient data hre available on the investment pOlic_. ? ? ? ? ). Only one small plant, he Klosterneuburg plant Qf CI-temosan- . ? UtliGn..AG was examined.. (Total sales during the USIA regime: %57.,000,.006 . . ch.) The result therefore hat; no over-all signifi.cance. ? ? ? ? ??? ? ? ? ? ? ? ???_66 ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 C ? ? ? ? ? ? ? ? ? ? ? I. 'Mere was no dismantling. The plant was placed originally ? ? under military administration and taken over by USIA.on 1 Jul'y 1946. ? ? II. The plant is said not to have made profit payments, but only ? to have paid administration dues. This is contrast to all, other plants under Kraska. ? ? III. The Soviet Dirp.ctors General of he plant were often also ? directors gelneral of other plants (usually at two others). Annual ? ? ? production plans had to be examj.ned by the chief of the Plans Division ? ? ? of KraDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ?? ? ? ? ? the "BO" and the Cultural Division were staffed entirely by *Communists. Even when USIA was liquidated the Communists were able to maintain ? ? their position in the October plant elections, whereas the Socialists ? ? lost one mandate td the Independents. ? (g) Letex. ? ? 1. A certain athount of information is known about Letex, known in German as Light Industry (Leichtindustrie). In the repok on the Alt-Erlaaer Dye Works the following Soviet Directors General ? were named: ? Utkin, Maltsevj Laptev, Chernobiliski, Alexandrov, Morozov. The name.Utkin, as chief of Letex is also mentioned by Dr. M. (see Report ? ? ? on the Conversation of 13 and 20 December 1956). The name Alexandrov, alias Bachmann, also appears in the Special Reylort on the USIA firms, Wkus, Letex, Ort and was there in the year 1951. :C'hernobiliski is ? ? probably identical with the. man of.the same name mentioned in "Report ? on two conversations with Dr. ?Seleskowitsch of Barthel & Co. ? Ehekamasov, Gugoryev and Lebedeb were mentioned as chiefs of the ? ? ? technical or plans division. Sokolov and Chirin were ITIntioned as ? chiefs of the Personrrel Dividon. ? 'From an organizatory point of view the significant development of. . . the trade division is well known. Besides the usual import and export mechanism it developed its own retail trade chain wh.l.ch, in 1954, was . ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? Vienna: ? ? 1. EdelgarnspDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ?. ? ? ? Evaluation: A) Sales ? ? . . . ? Estimated sales: 5,324,000 pchillings... Sales structure (calculated on a basis of 594,000,000 schillings). ? Deliveries to % of &ales Schillinas East Bloc? ?BWR Various domestic Exports to West 44 2.7 2,34,000 1,261,000 1,704,000 16,000 5,.)24,000 ? Dynamic comparison of sales (on basis Of 363,000,000 sch). ? ? Year of highest sales 191:2 ? Year of greatest sales development 1943 increase against 1)47 + 193% 1951 19:.0 53% ? Year of biggest sales drop 19:2_ decrease 1)52 -. 9% ? ? ? . Indices for sales Increase in year 1943: Deliveries to ? . 1947 . . East Bloc ,000,000 BWR 306,000 1948 10,000,000 000,000 Change + 20)% Chief factor for thu sales increase is the fact that te E:laaer Dye Works became part?of USIA as Of 1 ?December 19,7. Indices for sales urop in 1953: Deliveries tc? East Bloc BWR Vaor:IJous domestic ? ? 1)52 66,000,000 1.9,a):),000 ?? 10,000,000 ? 195-; ?61oomoo .16,000,000 70,000,000 ? Chango -101i% ? - 16%. t ao-d T ? :3).Rentabi1it,r ? ? ? ? .EstIm.atd . . Bas:is'for ? ? ? ? ? ? ? ? ? ? total Profit:. 1,251,',090,000 . . ? . ? ? estimate: ? transmitted. rent:Ability ? :170. ? ? ? (25.5%) ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? Prefit structure (calculated on basis of 863 million schillings). ? ? : ? ? . . Type % of Sales Schillings ? . . . Paid pyofi,s 3.4 74.,000,000 Admin. dues 15.7 636,000,000 Sales tax . 4.0 213,000,000 Trade tax 0.2 11,000,Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? . ? ? ? ? ? ? ? Ielvestment structure (based on 863 million schilling). Type ? .% of Sales Schillings New investment General repairs Gross investment Amortization payments ? Net investment 1.7 0.4 91,000,000 21,0004000 2.1 0.5 ? ------ ? ? 1*.b 112,000,000 27,000 000 8,000,000 Year of the highest gross inve6tment: 1954 ? Examination of plants was carried out at two enterprises: Barthel & Co. ? anti Alt-Erlaaer Faerberei-und Appretus AG. I. There are no indications of any dismantling. The Faerberei was taken over by USIA on 1. Decemlier 1947 and Barthel in June 194b. ? ? ? ? II. Barthel report says that n 1947 administration dues were 5 percent arid then were reuucea. At the Faerberei in 1950 the .dues ? . were 11.3 of tleprime cost.of production. In 1955 both enterprises reporte'd that administration dues were 1.07% of sales. ? III. The reports do not indicate whether there were also Soviet administration teams.in the textile business. Militar-,- personnel wgs in the Faerberei plant until 1950 and until 19L03 in the Barthel plant. ? Then, with one exceptiOn, there followed a series of technical person- nel (weavers, chemists, etc.) In part, the directors fillea more than One post. The plans, which were presented more or less in completed . form in photostat, were drafted ur.ider stror* influerice by Letex. ? Financirt fqllowed:the habitual system. The AA-Erlaaer re- ? ? ? . ? . '. ? ? 1 . . portshows that-t ll 6e Soviet Mitary Bank charged a 2i percent interest . I . I ? ? . . ? ?? ? ? ? ? ? ?? ? ? ? ? ? ? ? ? . ? ? ? ? ? ? ? ? 1 7 2 ? ? ??? ? ? ? ? ? ? .? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? . for credits for the aDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ?? ? ? ? (h) Less 1.* Here, only the Less in? dustries are discussed while ttle ? land and forestry sections are dealt with in a separate place. The followlng wDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 _ ? ? ? ? ? ? ? ? ? . Dynamic rentaVility comparison (based on 2530661,006.schillings). ? . . . . . Year of highest sales % 1953 ? ? ? Year of greatest sales development 1948 99.3% Year of biggest males?drop i.952 - 16.67% (1952 = 100) ? B) Rentability ? Estimated total profit: 202 million schillings Profit structure (based on 253,700,000 schillings). ? Type ? ? % Of Sales Schillings Paid profit 6.7 ? 77,000,000 Admin. tax o.6 76,000,000 Sales tax .4.2 49,000,000 Trade tax Capital tax 1'7 c. ? ? 202,000,000 Dynamic rentability comparison (based on 253;700,000 schillings). Year of highest sales rentability 1.951 27% ? Year of highest profits 1951 . ? Year of greatest rentability increase 195)4 4122% Lowest rentability 1953 9% Greatest drop in rentability 1952 - 93% Indices for the rentability increase in 1954: tncrease in paid profits Admin. tax. ? Sales tax Other taxes ? ? ? 1953 . 1954 Change Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ??? ..? ? ? ? ? ? 1951 ? ? ? ? 1952 ? Change . ? ? Paid profit 5,213,000 141,000 (-3797%) Admin: tax 3,291.,000 3,007,000. - 9.4% Sales tax 1,582,000 1,690,000 .1. 2.3% . Other taxes 22,000 15,400 - 46.1% C) Investment policy ? Estimated pet investment,: c58 million sch. ? Investment structure (based on 253,700,000 schillings). ? ? ? Type ? of Sales New investments 4.3 50,900,000 General repairs 0.8 9,000:4000 ?? Gross investments 5.1 59,000,000 Amortization payments 0.1 ? 1,000,000 Net investments 5.0 58,000,000 Highest gross investment was ih 1954 with 4,986,500 sch: namely, 38.9% of the total gross investment. Along with the two saw mills, the two paper mills were probably of interest.. ? ? 3.. No review Qf the plants.. ? ) Wkus? 1. The Wkus industries, in contrast to their retail ?organi- . ? ? zations, had no particular importance. ? The administration comprised ? ? the following plants: ? Vienna: ? . . 1. Franck u. Kathreiner G.m.b.H:,?Vienna XXI. ? ? 2: "Gritle" Suesswarbnfabrik, Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? U. Neisse & Co., Vienna X. ? ? ? ? ? ? 5. Spiritus-und Fi'esshefe-u Likoerfabrik KG Wolfrum, Stadlau. ? ? 6. Siemons Brotfabrik, Liebich & Co., Vienna XXI. 7. .0esterr. Unilever, ViennDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? . II. LipiA.I2..ra3,E_EKLF-oi:91_3ta.lr---Y-ber-o..-1--ses- . ? ? ? ? ? No hard and fast results.have?been obtained in the inquiry into' ? the USIA land and forestry enterprises.. The inquiry was begun a short time ago. ? It must therefore be surmised that the partial results ? presented here AR undergo modifications as the inquiry proceeds. ? 1. Davelopmental History and Experiments in Exploitation ? At the end of the war action in 1945'the?great estates, whose owners had fled before the oncoming Russians, were taken over and ? ? administered by commissars who were subordinate to the Soviet kommandatur. ? Tolfowing publication of the so-called Icurasov Order (See Wiener liurier. 6 July 1946) the land and forestry in the Soviet occupation :_one was ? taken over by three-part divisions which were set up for the purpose. ? ? ? Land and forestry was, at first, haphazard74 pulled together under the. Estates Direction, the leaders of which were subordinate to a central ? ? office in Vienna. This central office which was called 'Less" after the Russian initials of its name becAme a part_of USIA administration. ? ? ? Less means: Soviet: Administration for the Wood 'Industry and Agriculture. he initial ',.)-40 estates directions were gradually tightened up . . ? and finally, 12 estates directions were formed out of them. The chiefs ? ? were called 'Directors General. ? ? ? ? Until somewhere around the end of 1946, the'commissars?on the ? ? requisitioned estates did pretty much as they wanted. Product went . ? 'orb' ? . ? ? ? . . almost exclusively to the occupa:tion troops. WlthAhe yormation and ? ? ? ? ? ? ? ? ? developmenIt of. Less the guiding Principlefrof this bi'anch'of the planned ? ? . ? ? ? ? ? ? ? ? ? ? ? 178 . ? ? ?? ??. Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? economy was made to apply to the occupied zone. Within two Wars the ? ? ? ? total ineptitude of the kolkhose methods imported from Russia becaMe ? plain. Nearly all the estates were heavily in debt. Therefore, in Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? . ? ; Administration Chief. His miss;ton was liaison with the car- . ? ? ? responding ministries in Moscow: liaison with' the Chief ? ? ? of USIA; supervision of the 12 directors general. Chiefs. ? Kusakin (until 1948) Smirvov S. 1253) ? Avtayev ( end of 1954) No? t known (until August 1955) ? ? Accountinz. (Finance Dept.) Mission was the countersigning of all plans; central bookkeeping for the directors general; payment of profits through supplementary understandings ? with the plants; calculkition office for the plans depart- ment; drafting of all tasks in the individual plants; ? training of the Austrian bookkeepers. ? ? Chiefs: ? Strukov (until 1951) Soprativnov (until 1954) ? ? Surinov (until August 1955) ? Plans Division: Mission was: 'establishment of the annual plan's:? . ? ? 1-ood cutting, seeding--and the. subdivision of the anrival ? plan into quarterly ones; profit pinning--profits.could ? neither exceed or fall below those called for by the plan; ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ?? ? ? ? Chiefs: ? ? Puschnove(an'outstanding technician) Others unknown ? ? Commercial Office: It was a subOlvision of the KZB (Central. ? Commercial Bureau). 'Tasks were: liaison with the Soviet Militdry Bank; transmission of delivery coritracts to the ? Director General; determination of production costs, profits, delivery time, all factors which had to be transmitted to ? the Directdr*General; supervision of the internal book- keeping office. Personnel Division: Its tasks were: collaboration with USIA's ? personnel division in the Trattnerhof; control of. the specialized personnel on the estates;. training Austrian Communists to handle tractors and to become overseers and , milkers; establishment of agrarian schools and setting LID traAning courses; Communist propu6anda among the workers and employees on the estates; ndgotiatians with the Austrian labor unions; administration of the F.U.B.R. fund out of which social benefits wore paid for the employees. Chiefs: ? Galkin (Soviet Russian) ? ? ? Hauska (Austrian: until 1950) . ? ? ? 8pringv (Austrian:. until 195)4) ? ? Hat.if (Austrian: untll-August 1955) ? ? ? ? ? ? ? ? ? All the Adstriaps wi?re ? card-carrying?Me.memb.ers ? ? ? ?? .? ? . ; ? ? ? ..? ? ? . ? % .*.? 1.81 . ? ? ? ???. . ? . ? ? . . . ? . ? . .? . ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? Legal Division: Tasks were: deterMination o? f what was "German ? ? ? ? ? property;" conclusion of leasing contracts; attempt to .trans- fer property of requisitioned property to the occupation ? authorities; the collection of claims by requisitioned properties in other Austrian and German occupied zones; .negotiations over frozen bank credits. ? Chiefs: ? Name of the.Russian lawyer is not known. Austrian lawyer was Dr. Siegfried Koehl, now in Linz, KPOe member. ? Administration: It was a subdivision of the USIA main administra- tion. ? Chiefs: ? Not known. B. Table of Organization of the General Directorate: ? ? The so-called general directorates comprised the agricultural ? ? estates directorships. They were: ? ? ? Allentsteig (Lower Austria) with the installatic?ns: . Ludwig Lazzarini Anton Ulm . . Zacharias Frank (Ludwigsthal) ? ? 'Deutsche Ansiedlungsgesellschaft . ? ? ? . ? Deutsches Reich0.Reichsfuehrer SS,. (Resettling) ? ? Kqmprex Deutzches Reich, Reiehfiekun Heer ? ? ? ? (Truppenuebungspletz Doellersheim) ? ? . . . ? . . . . . . . . . . 82 . ? 1 . . ? 1 . : ? . ..? . . . , ? I . . . . . .? ! ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ti ? ? ? ? ? Angern - N.larkgrafneusiedl (Lower Austria), with installations: ? Angern . Hohenau-Bernhardsthal Droesing-Eichhorn ? Duernkmt Coburg Matzen Pama . Berg Markgrafneusiedl Raasdorf ? ? ? ? Untersiebenbrunn ?Lassee ? . . Mauerbach Stopfenreuth Bisamb erg Theresienfeld Katzelsdorf Kottingbrunn Oberwaltorsdorf Schoenau , ? Aspang (Lower Austria), with installations: Aspangerhof Und Moenichkirchen Ziegersberg Wiesmath Graupappenfabrtk AsiSang (Formerly F. Greinert) ? ? ? Clewing (Rohr.im Gebirge) (Lower Austria), with intallations: Clewing (Gut Wpgscheidhof) ? Ballestrem ? ? Urgersbach Eisenstadt (Burgenland) ? ? ? Eisengewerkschaft. Bayerbach-Reithelau This Soviet general directorship comprised the estates of the Hungarian citizen Prince Esterhaszy. The Soviets took the standpoint ? . that the Prince .had been dispossessed by the Hungarian People's . ? Republic and that therefore his property in Austria must be considered as being Hungarian state property. Although the Austrian government ? ? ? did not recognize this Soviet point of view, th'Soviets requisitioned ? ? ? ' the Esterhaszy estates *ith the initial excuse that .they were necessary . ? ? ? ? ? ? ? ? to ensure the svpply of food.for the doviet troops in Austria. Later ? ? ? ? ? ?? : .. ? they maintained' tha.t the property belonged to the Hungarian state and . . . ? ? ? ? ? . : . . . ? ls . ? ? ? ' ? .. - . ? . . ? ? ? ? ? ? ? ? ? ' ? ? ? ? O. Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? that any profits should be paid over to the Hivigarians. 0,r inquiry into this complex is just beginning. Ernstbrunn (Lower Austria), with installations: ? Fuerst Reuss: Domaene Ernstbi:unn ? ? Deutsche Ansiedlingsgesellschaft ? Ladendorf Niederleis ? Ruhhof, G.m.b.H. Garmanns und Apparn/Zaya (Estate directorship.Ratibor) Gaming (Lower Austria),. with'the installations: Seusenstein-Reithof ? Talheim Salerberg Meierhoefen Auhof Oberhof Steinwandleiten Hoegerhof Tannenmuehle Seharerhof Voeltendoerf (drill place) Ziegelhof D.ingelberg? HinterhoL a::tettenhof Berging Berghof Weissenburg GinselbergHofergut ? Urmansau Haigergut Klein-Poechlarn ? Lehenhof Giselhof ? und Plankenstein Grafenegg (Lower Austria), with the installations: Grafenegg Oberfurcher ? ? Gneizendorf Buergerspitalstiftung "Heiliger Geist" Laengenteld TurnerbArg ? ? ? ? Greinburg (Grein a.d. Donau. .Upper Austria), 4ith the installations: 3 ? ? ? ? Forstbetrie/1"Fuerst Coburg Haidhof ? ? ? Moosbpeckhof ? Schalierburg ? ? ? . .? ? ? ? ? ? . f8.4 . . . ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 0 %. ? Arndorf ? Karlstetten ? Plankenstein . Hagenberg Mitterarnsdorf ? ? ? Markt Hodis (Burgenland), with the foDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? Fronsburg (Lower Austria), with the installations:. Fronsburg ? Kattau. Zogelsdorf ? . ? Walkenstein (at that time est4e of the Geras Stift) As the above shows the Soviet general directorships were regional ? ? ? conglomerations of estates, forestry enterprises or saw mfas. ? The generaDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? . ? ? Remarks on the sales, rentability and investment policy eP Wien ' . . . . . ? Firm may be Pound on pages 36 to 40 of the repollt "Preliminary report ? . ? on the exploitation of the5 statistical questionnaires tor USIA. Plants, of November 1957. Fourth Section. ? . ? THE FIRST DANUBE SHIPPING COMPANY (DSC) I. History ? Up until 1938 the shares of the first Danube Shipping Company were split up as follows: ? 26.173% belonged to the Austrian State 24.5455 Creditanstalt-Bankverein 0.762% various Austliian ownership 46.296% private Italian or banking ownership . . 0.028% various German ownership As a result of the events of 1938 the part belonging to the ? Austrian State was taken over by the German Reich, while the parts be- longing to the Creditanstalt and to the Italians were bought by AG ? liermann Goering-Reichswerke. The result was that by 1939 the Reichswerke was in.possession, for all practical purposes, of 99.675% of the shares. The situation remained unchanged until war's end. ? After the end of the war the DSC was carried on by a state-appointed director, Bauer, who had been 'General Director of DSC all along. ? ? ? In March 1946 the Soviets took over control of the shipping and ? docks in their zone lyid until June 1945.ran their business from. Vie ? building of the bk: located in the British Zone. As the result of a ? ?? . . ? ? ? ? ? ? ? .? 187 ?? . . ... . .? ?? ? .? . . . . . .. ? ? ??? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? While nothing could be found out aboui the background of the ? ? ? ? Admiral, we do kribw that the main pavt of the naval officers came from ? ? the Marine and River Navigation Ministry in Moscow. It is alsio known ? that the Korneuberg shipyard directors several times a week had long ? ? ? telephone conversations with a Moscow Ministf.y--undoubtedly the Marine ? and River Navigation Ministry. ? ? ? With the exc'eption of the major who was in charge of the personnel . ? division and the civilian in charge of the bookkeeping practically all ? ? ? the higher personnel was composed of Soviet naval captains. This lc!ads ? ? ? us to suppose that they were under the orders of the Ministry of Marine. ? ? 2. Relationship to USIA and the Soviet Military Bank ? ? ? No unequivocably clear: documentation was available concerning the ?? ? relationship to USIA, its Main Administration or to the Soviet Military . ? ? fank. Some reports ahd conversations provide a sufficiently e>.act picture as follows: ? ? ? ? The finance and bookkeeping systems were the same as those of ? USIA. The same forms were used. Un.fortunately we do not know to whom ? ? in Austria or Moscow these financial forms were sent.. Neither do we ? know to whom he administration dues and the profit payments were paid, neither 0.o ye know who kept the taxes that were collected and should ? 1 have been passed on tb the AuLtrian governinent.. ? ? Those checks and balances prescribe by the Soviet financial systeml'as well as the quarterly. and annual produQtton plan were. ? ? ? ? ? ? . . . ? ? ?? ? carried ?oub by. officials. (If. a Moscow mints try. ane, in this case .it coul4 . . . . . ? ? ' ... ? ? ? ?.:. ? ? % ? ? ? ? ? ? ? ? ? ? ?189 ? ? ? ? ? ?I. ? . . ? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? only have Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? InteDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? .? ? The Direc.tcrs Genexal were: ? . Major Kagan (until end of 1946) ? Admiral E.G. Zamborsky (until miadle of 1949). ? ? : Zutirin (until end of 1952) N. Kryukov (until beginning 1955) J. Kononov (until 12 August 1955) Personnel Division ? ? ? Tasks: Closest collabofation with USIA's ? Main Administration; ? surveillance of Austrian personnel working on Russian ships on the Danube; surveillance of the personnel of all ships in Vienna. Personalities: ? "Major Vishinski, (until 1948) Major (?) Shishkin (until about 1,950) Major. (?) Ivashkin (from 1950) Plans Division Nothing is known about its work methods or about its leaders since. this division basically only dealt with Soviet Russians and translators ? (mainly from southeastern states). ? ? ? Main Accounting ? ? ? ? Tasks: Actually, the Chief Accountant is. *the finance expert of the General Direction. Withotzt his cpuntersignefure Tio plan elaborated by. the plans or te-hnical divigions' cold be activated. ? ? Personalities: (Accountants) ? ? . ? Alexandroi (1946) ? ? ? ? ? ? Matyuphin. (antij. 1948) ? ? ? ? ? ? ? 192 ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ?? ? ? ? S. ? .T. Smolyakov (until middle 1951) . ? ? Shilov (until middle 195)4) ? ? ? Mrs. Sosina (until 12 August '1955) Commercial Division Tasks: tariffs and sales. ? ? Personalities: ? ? ? ? ? ? ? Josef gaertner (Austrian) (until June 1949). He was followed by several Russians whose names are unknown. Economic Division Tasks: Administration of the non-industrial auxiliary instal- ? ? lations; assure collaboration. with Juschwneschtrans. Personalities: ? None known ? ? ? Trafftc Chief Tasks: Safety of navigation; collaboration with the traffic ? chiefs of the satellite shipping companies. ? . ? ? ? Personalities: ? ? Capt. Kamensky (until about 1950) Other names unknown Materiel Administration Task: Prpcurement and administration of materiel. Personalities: ?? ? ? ? ? ? ? ? ? Capt. Eisenberg Other names unknown ? ? ? ? ? ? ? ? ? ? The Soviet directors of tile Korneuburg.shi:pyard' were: . ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ? ? ? ? ? ? ? ?193 ? ? ? ? ? ? ? ? . ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? Gorsky (until *August 1945) ? Sedich (until JUly 1947) Shagonyanov (until Octoter 1949) ? ? Titov (until March 1950) Kizelyov.(until December 1954) Melnikov (until June 1955) . ? ? Ossipov (until August 1955) ? Further details may be found on pages 9-11 of 'Complementary Report on the First Danube Shipping. Company, 'Shipyard, Korneuburg," ? of October 1957. ? III. Tasks of the Danube Shippinz Co. Within the Soviet Occupation ? Economy ?? 1. Attempted Foundation of a Soviet-Austrian DSC Following the occupation of the .K rneuburg shipyard in Apri:1.1945 by the Soviets most of the tools, apparatus and'materiel was carted. off to Russia as war booty. Seventy-one percent of the machine park ? ? ? was dismantlell and taken away. But already by the end of 1945 the Soviet wharf dirctors attempted to make good the machine park, to ? increase the number of workers and to push repairs on the ships that had been raised from the bed of the Danube. Already at the beginning of 1946 the Soviets began unofficial con- versations with various Aubtrian officials in order to bring about the ? ? ? ? trandbrmation of the DSC into b. mixed Soviet-Austrian company.. In ? ? fashi?on the.SDviets tried to interest the Austrians in Sov2 ? ? . . Naphla company for the explbitatipriand &?.velopment of:Aus.triap oil. ? ? ? ? ? ? ??? ? ? ? ? ? ? ? ? 194 ? ?? ?? ? ? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? . ? ? ? ? Since the beginning of 1946 the Soviet El carDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? ? ? % probably in 1947. With thd conjunction of.this transport firm, the Sbviet ? ? administratrbn of DSO became a unified Soviet transport enterprise in Aus- ? ? tria. In practice it was a monopoly tranport enterprise for all the ? ? ? USIA enterprises. Whereas Juschweleschtrans took care of land trans- ? ? ? ? port, including corrnections with the airports, .the psc was charged with ? the mass transport of goods by water. ? ? ? Collaboration between the *Soviet cunsi:gnees, Juschwneschtrans and the DSC made three thi.ngs possible. One was the keeping secret of ? ? the movement of merchandioe, the other the frictionless 'transit of merchahdise of different Soviet firms and aa8o, in collaboration with the military, the siphoning off.of customs'dues and allied taxes. For further details concerning he tasks of Juschwneschtrans in . ? collaboration, with?DSC, see Chapter II of Section five entitled I? ? ? "Trade and Transpoyt in the Soviet Occupation Economy. ? ? ? ? ? J. The DSC as a Main Soviet Support Point on the Danube ? After the failure of the plans to make out of the DSC a mi-4-ed ? Soviet-Austrian company, the Russians, beginning in 12/0, increased ? ? their efforts to make the DSC more and more responsive to the require- ? ? ments of Soviet shipping and of SlIviel; economy in general. These plans are' closely connected with the idest of tranabrming the Korneuburg shipyard into a. going concern. ? ? ? ? Kiselympwas rade Soviet yard director. He was an experienced ? ? ? ? ? ? technician in this Tield with 30 zypars of endeavor behind him in Soviet ? ? ? ? i ? ?? ? ? ? ?? ? ? . ? ? ? ? ? . 196 ? .? ? ? ? ? ? ? ? : ? io. ? ? ? ? ? ? ? ? .? ?? ? ? ? ? ? .? i ? ? ? ? ? ? ". ? ? ? ? ? .? ? ? ? .*. ? ? ? ? ?? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 .? ? ? ? ? ? ? :? ? ? shipyards. UnderAim.not only were new methods of working and building introduced but he also brought in a reconstruction plan, cohplete in ? ? all details 133,000,000 ? and which would have required the expenditure of about . ? schillings. (See pages .4 and 15 of the 'Complementary ? ? Report on ;the DSC, Korneuburg Shipyard, of October 1957.) ? As this October report says, tho plan pointed to the necessity for thq development of the Korneuburg yard in the following words: 'Creation of greater production possibilities in order to cov.er the increasing need for shipping o1' the Soviet shipping 'compates on the Danube.' Such a statement can only .be made by a man sent from Moscow if he ? is certain that at least in the mind of his Ministry the impression ' exists that Austria would not be given up bv the occupation authorities ? in the foreseeable future. ? ? Such a long-term plan would only have made sense if a long occupa- tion, or even permanent possession, were intended. We were not able to discover hr the plan came to nought. .It has ? also not been possible tDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? has been reconstructed from a curr,9nt shipping Pegister. According to ? . ? ? it from May 194; to 12 August. 1955 the following were delivered or serviced: New Ships: 9 goods barges of 1,000 tons each 18 lighters'bf 250 tons each. Riveted (SL 411) 40 lighters ,oe 1,000 tons each, Riveted. (SL.638) 9 floating pile drivers ? ? . . 1 motor ship (MS Poltew.a). This ship was handed back by the . . ? ? ? ? . . . Russians after signature of the State Treaty under the name of "Korneuburg. General Repairs and Remodelings: Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? '? ? ? . This is a loss that Austria can only make good after a return to ? normality of trade relatiohs with the satellite states. But this damage is little when compared with those suffered by the? ? ? Korneuburg yard whose internal construction methods were changed to ? produce ocean-going ships for Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? The requirements in food and commodities of the Sovj.et troops in Austria also had to be covered. This made the task more difficult ? ? since goods purchased in Austria wee useeto supply Soviet troops in Russia. ? ? ? In order to take tare of these demands the following economic ' ? ? bodies were formed: ? The first, in spring 1945, was the Zakupotshnaya Torgovlaya Kontora ' ? ? (Purchasing and Trade Office) set up to supply the Voyenntorgs (military . . ? stores). ? In 1946 was set up the Kooperativa Sove46skykh Rabotnikov Avstriy . ? (Consumer Cooperative of Soviet EmploYees in Austrla). It supplied all ? people?working for Soviet .official and economic offices. This was followed by Degos which, however, was headed by two ? Austrians, Dr. Dubik and Schischka. (See our 'Special report on ? Communist Trade Firms intrac, of May 1957 and "Notes on two conversa- tions with Dr. D on 2, and 27 November 1957. ) ? Later, Letex And Wkus assumed trade functions which at the end of ? 1951 were harlUed over to Ort. Bezimpez worked for a short time in this ? field?in 1953 and 1954. ? ? Particularly noteworthy are Intrac and the other Communist Party ? ? 4nterprises, most of which were founded in 1948 although there were some ?? ? ? in existence in 1946. ? ? ? ? ? ? ? These Communist firms occupy a special glAqe in. tbe realm of Soviet ? ? conomic entities inasmuch as they were not%ireclied'bN Soviet authorities, . ? ? ? ?-.200 ? ? : ? ? ? ? ? ?? ? ? ? ? ??? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ??? ? ? ? ? ? ? ? ? ? ?? ? but by the Central Commiftee of the K20e. As a result, when the ? ? Soviet pccupation troops ieft, the firms were not dissolved, but con- tinue to exist although under modd?fied conditions. 4ith these exceptions, all other above-mentioned Soviet trace ? organizatftons were liquidated at the end of the occupation. ? ? The freighting complex presdnts a similar picture. ? ? Here, we have JuschwrIeschtrans at transport and freight agent . . concern dependent on Moscow. This was founded in 1940 as thDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ?. ? ? ? ?S ? goods of all kinds only to Soviet service personnel. Voyenntorg bought, ? ? in part, the necessAry merchandise with schillings on the?Austrian market. ? ? ? For the greater part, purchases wbre, however, made through the ? ? ZTK which was located in Vienna IV, Paniglgasse. The chief was Captain Rakhlenkov. ? When.possible, this office bought merchandise on the open Austrian- market that was needed by the Soviet troops in Austria. However, since the supply was greater. than the demand, it increased its purchasing ? activities end began to supply troops stationed in Russia, whose needs ? were m62 known throagh liaison officers. Since here was an opportunity ? ? ? to purchase not only consumer goods but also machines, finished products, ? non-ferrous metAls and raw materials, it was not long before all the Moscow ministries were making use of ZTK to purchase items that were in short supply. ? Officially, the ZTK was only allowed *.co make purchases in Austria, ? but it nevertheless used middlemen to make purchases in the West, ? particularly stored supplies including abandoned Wehrilacht supplies. ? ? Payment was made in schillings which were made aliailable by the ? . ? Austrian government as occupation costs. According to or sources, not only goods bu.t dlso hard currency, particularly. dollars, were alk bought. At the beginning most of the business was on the black market ? ? ? ? in whicti money was handed over: for goods. Oa. sources believe?that the. ? purchases totaled Qne billion schiliingi. ? ? ? ? ? Bu with the first 'development and consolidation of the,Austrian ? / ? ? . . ? . ? ? ? 202. ? ? ? ." ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? ? ? ? ? ? ? .economy the supply became smaller and they had to turn their thoughts to the development of economically sound tbading firms: With the development of Soviet production entities there were two problems that had to be solved. They were: ? ? 1. HoW to supply those plants which were united in USIA, SMV and the other corporations with short-supply commodities in leather and ? textiles as well as with other accessories and means qf production. ? ? 2. How. to supply those employed in these firms with food, clothes and other consumer goods in the face of the dearth then prevailing. It was natural that the satisfaction of these needs should have ? been turned over to Letex and Wkus. An attempt was also made to build . ? up an independent distributima mechanism, destined to bring the mer- . chandise.directly to the consumer. This mechanism was the Kooperativa Sovyetskykh Rabotnikov Avstriy (Consumer Cooperative of Soviet Employees in Austria). (See our report "Notes on two conversations with Dr. D. ? on 23 and 27 November 1957.') ? These organizations wemparts of USIA. and were under the orders of ? ? ? the central office in* Moscow, particularly USIZ. We lere not able to .? ? ? determine what part, if any, the Moscow Trade Ministry, played herein. ? Inquiries into this aspect of affairs "was rendered particularly ? incluaes Ort and Bezimpex--because when the occupation troops left they were completely liquidated and left no successor ? ? organizations. This was .in contrast to USIA which remained in?being although the Soviet pamonnel.disappeared. ? ? ? ? 203 ? ? ? ?? ? ? ? ? ? Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 Declassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 1 ? ? ? ? ? ? Letex had the task :Jo procure 'the necessary textiles and leathers goods needed by USIA and SMV. They were to be procured if possible from'other USIA concerns and distributed among the USIA administrations. ? . Letex also had the task to procure the equipment and raw material needed in USIA light industry that USIA did not produce itse.lf from other areas of the Austrian economy or from the East Bloc orDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 S. ? ? ? ? ? ? ? The Organization of SovDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? According to our estidates, duftng the time of the occupation the SOviets had a turnover of'eUht to 10'billion schillings in these ? stores: this corresponds to a net profit of about 2 billion schillings. ? ? However, this is a rough estimate and is. not backed up by figures. It was therefore not included in our earlier estimate of. the over-all Soviet profit made rn Austria. But in addition to these financial advantages there were others that the Soviets drew from their activities in this field. ? 1. Merchandise which normally would not have been exported was sold at retail prices against schillings. For these schillings the ? Soviets and the East Bloc could?procare important ppmmodities and even ? procure currelacy on thetiack market.which again in turn could be used ? ? to purchase hard-to-get commodities. ? ? ? ? 2. .There were also Some -political and propagandistic advantages: ? ? a) The sale.of merchandise cheaply in the stores at a.time when ? ? ? things were hard to come by awakened the impressions that the Soviet economic system was bettei. than that of the free ? ? ? economy. ? ? ? b)?The USIA stores served directly as propaganda offices for the KPOe. There, signatures for cover Communist organiza- tions (Peace Council, etc.) were obtained and for other . ? purDeclassified in Part - Sanitized Copy Approved for Release ? 50-Yr 2014/05/21 : CIA-RDP81-01043R003700130004-9 ? ? ? . d) Through thee stores it was also possible to give support ? ? ? to the KPOe by giving members and fellow travelers well- paid jobs in 'phem. ? ? 'In addition to all these advantages, there was also the damage ? done the Austrian State which was deprived of taxes, customs dues, etc. It also hurt the State thrOugh the creatiori of an unsupervised sector of the economy And thrbugh the resulting atmosphere of uncertainty. 2. Intrac and the Communist Party Firms ? ? ? In order to deal with the problems of trade under the occupation ? ? ? the Soviets not only made use of the above-described organizations such as Degos, Letex, Wkus and Ort; but they created entirely different ones. ? In our Special' Reports from May to October 1957 we went into detail con- cerning Intrac and the Communist Party firms. The firms were directly ? ? dependent on the KPOe. As far as the 1avr was

Printer-friendly version

Search form

SOVIET OCCUPATION ECONOMY IN AUSTRIA