TEXTILE INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00039R000200060020-2
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 83
• Document Creation Date: December 22, 2016
• Document Release Date: March 28, 2012
• Sequence Number: 20
• Publication Date: June 26, 1952
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
Taxt__.~..Indu t
eXt3.1-Tndustrie 5udest Europ
German books Die T
Declassified
n Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
STAT
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
THE E1V,0'IV NT OF THE TxTliE IND1JSTRY
roo rpa hicaa. reasons, Hungary occupies
For hstora.cal. and ~ ~,
a t~.iqua posi'bion batwean Cenral and Southeast Europe; this fact
t industry w.. even capable of expart
is manifest in its importan the agricultural character of this cauntrY?
whiek~. developed despite ian Monarchy it was H,Ltn.gary which deliv?red
Under'the ,~?ustro"Hangar '
ts. Even in those early days the tendency pre
agricultural produc
a means of improvang its living
vailed to develop industry as
},tiles
economic independence. As fr~.x? as to
stan.darc~.s and obtainng
d it was the Austrian industry which supplied the
were concerns ,
excl.usivelY wa. t,h inex?Ensive dry goods.
Hungarian market, and almost
ed only by direct Covernillent subsidies
Hungary, however, was favor
form af' various statutes proiaatinthe in-
wha.ch were given in the
statute of the year 1881 resulted in
dustry. The first pram0t10nal
rcent of the textiles were produced by
the fact that in 1906 20 pe r G'roa, fluctuations ranged withf the va,ra.ous
the country ~ .,,,el f ~
and jute industries, for instancE, Sup"
cozr~nodities; the linen, hemp
cent of its needs See manuscript
plied the country with. 65 per
ion tariff agreement still in effect,
No 3) ? With the ,~ustro-H,ungar
statute was established applying only to domestic
in 1907 a second itself felt
'ch were limited. A significant change made
measures, why the propar-Due to reduction in territory,
only after ~ior1d war I the
and demand improved, particularly because
tion betvueen supp7~y
? le industry was located in pa
major p the portion
:ortion of a: a;s texts
c ate go rie s of any impo rtance
emaini~.g .:,with:.. Hura,ga~` and only fE
r
decisive factor was the ~'ac
remained ~~.n, the ceded territory. ,
STAT
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
that the curbing of effective protection against the trernendous
oom.patition in tha textile industry in the previousa.y 4jo xLt; tariff
area was now elim:inated? T11~is meant for the Hungarx,an Governrn flt
the opening of a lucrative market granted by protective tariff
and import restrictions. Experience in the textile industry dating
back many years, availability of skilled, labor in great numbers,
and the measures protecting this industry stimulated th.e invest-'
menu of necessary funds. Contrary to other countries of Southeast-
ern Europe iittle foreign capital was invested due to a lack in
mutual political interest. (Non-aryan circles, however, took part
in the foregoing to a great extent, which is evidenced by the fact
~
that up to 50 percent of the executive positions in the textile in-
dustry were held by non-aryans ).
As a result of assistance by the government within 10 years
the Hungarian textile industry was so highly developed that this
industry reached the same output as other countries, with which it
was able to compete even before the outbreak of the crisis; this
coincided with a moment when the world market could easily absorb
this product and its prices enabled even new enterprises to estab-
lish themselves in this industry. (Compare manuscript No 4).
. the outbreak of the crisis the development continued,
After
third Lew for industrial promotion. The foreign
protected by a
exchange situation was very influential ,in forcing Hungary to limit
incoming exchange,and the drop.in prices reduced
incoming foreign commodities to only vital goods;
fox the textile industry this
' stead; of 'processed or, partially processed
meant raw material
~y5 4 f
it pi a , e, r{? r I r S~ y9y~ ~~,Fi
t,;" e':' ~'~'~~~~~+ fl f~ l j1
I
~ `mry~~~lik!ar y~jy,++~a+~p i f
B ~8Jq E
v
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
goods? Thus any sizeable export and import mts at this time mt~de
imrossible; trngarian export, however, increased gradually icZ'
'.l'he development of the industry leads, above all, to an increas-
ing supply of domestic needs. yYhile during 1921, 16,000 workers
were employed at 125 plants, during 1939, 376 plants employed
about 75,000 workers, one'-third of whom worked in Budapest and
its outskirts. Accordinto latest statistics, about one-fifth
of all industrial workers and about- 6 percent of all skilled .labor
are working in the te:d ile industry; its total output amounts to
about 15 percent of the combined output value of all Hungarian in-
dustry.
GROWTH OF IIufPLOYM ANT TIC THE milyTGAR:IATT [LE I DOSTRY
Year 1929 100 percent Year 1929 100 pew
1925 66.2 1937 193.4
1929 100.0 1938 160.8
1932 104.6 1939 216.1
1936 178.9 1940 218.2
A survey of available machines, which have in part in-
creased ten tames, will illustrate even better the development
of the textile industry.
A comparison of labor and equipment wa.11 show that
employment did not increase at the same rate as production. This
was caused by modernizing and streamlining of plants and the
conversion of plants o large scale and mass production. The value
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
1 oxtiio industry' output increased considarab y
of the hWigar a.ar.
outbreak of the crisis. 'the 25 peracnt drop in
even before the
producti',m expressed iii. monetary value during the ecolomic crisis
is barn out br a drop ~. ?n prices, from which all teactiles suffered
.
at the tame rather than in a production slump, i.e., fewer emn
,
't'es, 'i'he increase setting i.rt in 1932 coincided
pl oymEnt op7?o rtur1a. a.
vitli an upward rrcnd in prices; ices this increase may also be attriM
extent to increased production 1rihich will be dis-
buted to some
The increased demand for raw material is on the same
cussed /afar.
level vua.th the value of production. The increasing margin be-
' n of raw na~teriai.s and 'the production value irtdi-
tween con.sumpt10
if onclusions can be drawn based on calcu.lati0ns as approx~
cafes, if e
o that the industry was turning out goods of increaS
irrtate as the s ,
ingly better quality.
Nii ',~4~P~~AIi'~d'k`1W A~ ~w5i7? .1 XIdjYU'T CN { 'CYrW311u4 niil~IS; . i i~'I . d J y J,.. , .. J ~q l J:; ; ii
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
. i'!FF ING 1`FrE
. T r y a F `F ti i T ' f TT P 7.i.rT? ~! n ,TT'l
Yt ` F1_. .t.:.J'__ J_ LaJ V V .LiL. E . i L ~i I
The knitting and woven goods industry - rust be added here, whi 7.e the cotton and wool industries are in third place
Kind of lr achines
i9 s Old
192
1929
1933
1936
193?
1939
1910
with-
Cotton spindles
Hungary
,
out thread spindles
278,000
33,000
196,000
272,000
311,000
316,500
334,760
3i;fl,8oo
Looms
8,000
4,100
12,000
12,500
13,500
13,500
71.x, OOo
w.,5oO
Wool spindles
51,200
5,800
50,000
55,000
70,000
75,000
88,000
102,800
Wool looms
1,865
370
1,800
1,850
2,000
2,000
2,200
2,200
'ft
Flax spindles
17,500
14,000
20,700
20,000
20,000
20,000
20,000
20,000
Hemp spindles
5,500
1,500
5,500
6,180
6,180
6,180
7,050
7,080
Linen and Hemp looms
1,8?0
600
1,320
1,393
1,393
1,393
1,720
Jute spindles
19,000
10,006
11,000
11040
11,0140
11~ 01.0
12,000
12,000
Jute looms
i,o15
[b5
ssl
asp
881
881
925
Silk reels
1,i71i.
456
45b
x.56
456
1~5b
1456
Silk looms
500
550
1, 2iio
1,720
2,000
2,x.00
2,Li.v0
2,?.i00
Ribbon looms
150
150
t~86
540
5):0
5uc
514.0
Printing rouleaux
5,800
5,800
9,800
18,000
28,700
28,700
30,000
14.6, o00
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
The phaseS of the industrializati on are alaarly ref'leoted
in . the various aspects of the Hunarian textile inlpor't? At first,
there was an atbempt to curb the import of high priced manufactured
goods and to increase the production of fabrics and other goods.
This increased yam conSuznption was covered by increased import as
ws1]. as stepped up domestic production until 1932? At this point,
sp were operating at such capacity that yarn import
~.nna,n~, mills
rae less and less necessary and consequently it dropped off as
beca
had the import of fabrics previously, in particular after 1935, the
government encouraged the development and modernization of spinning
mills by y applying exl investment tax of 2 percent on the retail
'
price of manufactured goods. Since 1935, ?the cotton industry has
increased by 10,000, the wool industry by 33, 000 ac1d the shoddy
industry by 26,000 spindles, a situation improving the unbalanced
of fabrics increased at the expense of rativ mater
The export
- to consume her domestic textile raw mat-
a.als. Hunry a~t Tempted
erials to maximum possble extent. A textile fund founded in 1936
,. ?
of manufactured goods through an increased
encouraged the. export
allotment ' of raw material to exporters of such merchandise. In
adtual however, exort generally dropped simply because
? figures,
GUtt market greatly' influenced ;sales and prices
~:ng off the ; Fore?~.y
between spindles and looms which existed previously. Indus-
ratio
trialization resulted in a vast import increase in. raw materials,
ccompla.sha.ng a major purpose of industrialization -~ the import
a
't,nexpensive" raw material. instead of 1?expensive" finished pro-
of _
ducts. 1939 the shortage of ra'rr material made itself felt,
. ,
orcin g Hungary to import the needed yarns where possible.
nb ~ y ~~i# b^m
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
Thus, 3* million sheep ma}r be estimated not allowing for the
sevoro winter of 1939/40; this decline may by now be corrected. The
increased supply of raw material for the wool Indus?try hoiever is
limited. since part of Hungarian wool is inferior. The. coarser wool
of the Zackel sheep and the finer wool of the Zigaja sheep are
slightly yellow, mottled with red hair and because of unskilled
han.dling havo shortcomings which effect the manufacture. Because ` of
?the scarcity of. foreign exchange, inferior domostlo wool had. to
be used. Today, Hungary utilizes about 85 percent of her wool in
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
These steps were neoessary to assure the farmer of stable
prices end good. grading to ease the risk of sheep raising and to
keep the farmers interested in the latter; this branch of farnung is
riot as developed in Th.mgary as it is in. other Southeastern countries
since the land is extensively farmed similar to Germany. Thus,
there are 19 head of sheep per 100 hectare of farmland in Hungary,
17 in Germany (Altreich) whale in other Southwestern countries
sheep stock is 3'5 times that.
Based on the statistics for the year 1938, the territories
of newly i'ormed Hungary have the following sheep stock.
(in 1000 head)
Trianoh~Hirgary
1,629
Northern sector
167
Carpathian Russia
95
Northern Transylvania
1,357
Bachka
250
dustrially, wl'ii1o `a. small part .of. the rest is absorbed by the. home
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
indus rry, the major part by export. Germany has been absorbing this
export to a major extent when Hungary reques'becl payment for this
wool in unfrozen foreign currency, Germany had to do without a 1rrge
part oi' specific high grade cloth. The decline of the wool export
is significant considering; that up to 1939 it a,raaountod to more than
4,000 tons but in recant years shrank to next to noth.ina. In fact,
it became necessary to import 1 - 2 million kilograms of wool an-
nuaJ.,ly.
The Spi:iming of
After the peak of the wool yarn export in 1937 a steady do~
crease mar be noted. In recent years German supply varied between
35 and 40 percent. Since the establishment of the Wool Statute
(1933) import licenses were only issued for approximately 20 perk-
cent of raw material for the spinning Of orossbred w o a 1 anc' 0
percent of Merino wool. Inasmuch as high grade wool in Hungary is
not plentiful and domestic wool lends itself in the majority of
cases only to the use of carded wool, this industry has been devel-
oped while that of worsted wool has declined since 1937. Since
the start of ,i'orld War II, 76 percent of staple fiber have been
added to carded wool and 70 percent to worsted wool in order to
stretch available wool supplies. Hunmary is the first country
in the Southeast to introduce synthetic fibers to an appreciable
extent, thus keeping her industry steadily busy.
From 1921 to 1940, the number of wool spindles increased
from 5,800 to 102,800, 40 percent of which are being used for worsted
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RD P82-00039 R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
4r Fi
' /ants in Budapest and Sorpan arcs ca,oae~.y
wool . .the ?'wo laada.~~g p
connected leading German p1ante3 ra1lfaGturing worstod woad
.
w~EP~
MQre a!U'p ]" , JO ,ITIE~ diL1rn sized spinnin1a plants turning out worsted
? h? vicinity of Budapest and in G~ror. . The
~.
wool are l.acs.~ed in ~
roducing carded wool are to be no~eds 1 large
~'ollawa.nplans p
plant, 5 medium nd 5 small p/ants in i3udapest and v~.ca.nit;Y9
a
r 1 medium and 1 small plant in Sopron and
1 large plant in Gyo ,
s z e Vac and Ba ja in the case of all carded
1 sma1.1, pl,c.nt :t,~ ~~ r o ~ ~
wool plants and. in many plants producing worsted wool, other
are art of their activitinsi In addition
phases of spa..~~ing p
~kat with wool yarn, :little is exported
to supplying her own r~~
r be at'~ributed to the two large plants pro-
anal this export m
ducing worsted wool.
? tiaao1 incl,ustry Gand several small plants through
Hun;arys
tgrritor4r previouslY belonging to Yugoslavia,
the cbsazption of
turnip out raixed products in Apatin,
such as one plant each g
and several small wool weaving plants in feuw
Odzaci, and Kula
satz.
Weaving of VIboi
woolen goods experienced a development similar
The import of a
e it reached its peak in 1.92 its re-
to that of wool yarn. V~h' ~-l
ce s Sian was more narked. While an 1932 the import of woven wool
the Hungarian text3.7.e import, in 1933
played an important part ' ~n ,
it exceeded the export only slightly. This development may be
of weaving, which also out-produced .spinning.
compared with that
Particularly in Egypt ' throe h the advantageous economical posi-
-10-
~rc~ ~
~, J l 4 . r{44I ~ }, tgk ,N~I l ~ ,
Declassified in Part - Sanitized Corv Approved for Release 2012/03/28 :
?00060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
as consumax, the latex manan;ed to out_m8X euvex
t~,on of Hungary .
CZochoslovakiat s marke?b of woven wool..
., 139 the nti~nlbox of wool looms inaxer~sed
llux'a.rir; thr~ veal s 1921 ~o a
Many oJ' these tveava.n~ mills operated
6 tunes, amollntix1g to 2,200.
wool spjr.~n.ing mills, since many cloth mills
ors the saxno pxerrc.sea as
combined thea,r operations with those of carded ;yarn mills. In
' nit r were 3 large, 4 medium and ? small mills,
Budapest and v?.ci
thelatter operating at least 20 looms. Moreover there is a mill
of n1ed:LLlm size in Sopron and. in Gyor, some of medium size in C=yox,
Baja and 10 in newly acquired Backa. A species
}~oeszeL;, To1na and
. ~ twoen wool. weaving mills and cotton and silk
fie (~.iV7.dltl~; lane ba
r not be drawn since various typos of fabrics
mills in ma;cty case can
ured t11LiS ciassifyg these mills as mixed
are being manufact ,
tistics do not include plants of negligible
plants. The above s La
only few looms nor the home industry, the latter
size, opera'h~.n~ onl,r a
veia~~od as that in the Southeastern eoux.Ltries.
not being; as de .l
avin spinning and even in the wool manufac'
In regard to we ~,
wool industry has reached a high degree of
Lure, the Hungarian
the resenh level of sup~?1y is to be main-
sel.f-suf f icienty? If p
~.r. will require further development due to
tamed, the wool a.ndus try
the fact that the absorbed territories despite their on sizeable
ex' their own needs. establishment of wool.
home industry cannot cov
' ti mills have already been planned in
washing, card:Ln~ and spa.nna.x ~
breeding though of poor quality is size-
Szehlerl.and, whose sheep
able but lacking mills except for its home industry.
Despite the development of the 'domestic wool industry i?h is
:.w9 1i'r;:
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
Su- ot'Mowte~ x?. 1
, domestic product~.on wall agaa.x~. be able
doubtful tha'~ in the future
d as i?r, did before. The pure}gas .nL; po'vJer,
to meet the d?rnt~n
nd avorflnent mpasurc+s nvicessita`~cad by
weakened by The cr:tsis a
ir . ~ rosul?bed in decreased dem~,nd. It is
~he lack of f'orEa.gn ehchan~r ,e,
not the de.Cr~lapment of ;HL~ngarY' s wool
also ciEbatably whotaler or
. r 'n the do1nt~stic market to its adventaga.
a.r~.dusl~r~T cc~nsldera cr.)vEr]. ~
? . cal in fashions and taste it can nasil~l
Because of
and for this reason, its products are
satisfy first rate demands a has
not
forei ,n markets. If this situation hay
hi~hly compe?~~.~a.ve on ~' ? , enter
-
t it was due to the fact that domestiv
been felt . ~,n 9xpo r ,
their oven rkot. Aar. increased pur~
pr~.sos were busy supplying
- bilizatian of supplies of ratiV mat?ria~~ will
chasing power and st~a
d for products of the liungarzan wool inw
help increase the dern
' facturing costs; for this rensan, s.ct~-va
d7?.str~,r, thus lowera.n~ man
is suggested rather than autarc}1Y and
im~a o rta n~ and eacpo r bing
exclusion from intornatior1al competit~,on.
' the silk industry as compared w~.th natLtra. i
;Rayon, whose use in
im ortaz1C6, is a chemical product for ~rjh3.ch there
silk is gaining p
anal which reaches the
ble suffic~.ent domestic raw material,
is avaa.la
? fished product (yarn). Thus, the supply
textile industry as a same. fin
of raw material as explained in the. foregoing is of minor importance
raw erial for natural silk
to the silk industry; the suppler of
will be viewed. as follOws;
,41
SILK
?'41 'hiI~S~IrI{~rIL~~ ~' J
Declassified
n Part Sanitizedn
Copy Approved for Release 2012J03/28 : CIA-RDP82 000398000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2t
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
SILK T DU S'.~RY I11 11UNG.Bx
f~
wMr^Y"' ?Vrrrkr+ hi n t~+St1 ~t.~' 4l uxpt~ ~~'
Unit, 1935 19
36 1937 1938 1939
es takifl part
985
unita
]
~. 985 1,967 1,971 1,947
,
.
coun
.,
in the silk ind titxy quantity
270 19,393
21
quantity 16,163 2
Sericulturists
,
10167 13,607
Dis'tri'buted silk worm 2
ki10 rams 27
1 arvae
349 238 252 326
267.2 496.2
Crop of fresh cocoons -tans 236.5
492.6 266.9
351 821
000kbs 179
1
469 252
,
Purchaskn" price
w -
tans 20
Silk ~.n.dustry
40 20
Distributed rnu11 erxY
1ci1o.. rams 251
;tree seeds
263 703 35 367
Distributed mulberry
1,000 262.0
tree sapizngs
pieces
184.2 4,67.5 1,205.0 476.5
Distributed ilberry 'trees
1,000
for cu1tiVa'b1ng pieces
ing?
;4
104.0 61.6
a1 ~ of, cocoons in 1.939 reached 500
This indicates how the crop
t Wilk reach 6 to 800 tans in the near
bans anal It is hailed that ~.
future ; this f ?~Urc .has almost beon reached through the absoa?ption
territory. Backe, which as absorbed in 1941 has been a noted
of
thus, the expansion of the Hungarian
s?ricukture area for centuries
COCaan crop ay be estim~'ced at 4U percent to date.
table, exporting of cocoons and
According to the folkov~rang
recent
ible and indicates, particularly
cocoon. ~vas~e is neg~,~.g ed cacavns breed
ou1d be a good market for expand
years, that Hungary
L
52.0 31.8 116.5
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
k
hMYl.l l ~i~~1~iAa
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
Year Crop
1929
1930
1931
1932
5,240?-
7,720
4,944
6,132
1933
5,060.''
1934
4, 24G.
1935
29365.
1936
4,926.-i
1937
2,669.
1938
2,672.-'
1939
4,960
1940
4,640
xrnpori
Export
2q (a.ncl.t~d~. -(only 499 (in-" 282 (only
'~ silk 0000011S) c1uding cocaons)
a.n, silk
waste) vvase)
142
1,721
145
685
422
1,464
532
531
159
150
92
9,22
290
1,314
204
283
1,114
47
113
1,924
1,2B3
179
2
471
313
679
X67
401
182
383
193
154
51
n d cro during the years 1930 and. 1933, a sizeable
~,o o p
f mn~.~icant amount was
effort of cocaons wa.s possible, while an ins
aria, Should the crop of silk cocaons exceed
imported :from Eu1g
the over" abundance will be readily absorbed by
the domcstid demand,
the silk industrY of Central Europe.
tta1.~.lral. Silk Yarn
In 1940, xun arian silk spinning rrdlls operated more than
g
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
436 sa.ik reels 11o'r~ards the end of 1936, one s'Lik sptnMnp~
mill 'n Toina startocl aporatl.ng and a plant opened up in Cryar in
1939. Both these plants employed a cretiv of about 1,000. The
plant in 1j~o1na alone produoed approxiTL tely 2,500 kiiorams of
silk yarn and 1,900 kilograms of silk thread monthly; new m-~
es guaranteed an improverr3nt in quality. Moreover, in 1940
.,
chin ,
after having been closed for 26 years a silk factory in
Komarn was opened up with the help of goverru'WElTb funds in addition
o the once stat? owned, Yugoslavian silk spir~nin{.; mi11 in
t
i' ousatz.
Rayon and Silk Warns
Year Import
1929 13,173
1930 17,849
1931 19,463
1932 16,549
1933 19,929
1934 25,774
1935 .30,317.
193635,661
1937 39,501,
1938 ., 24,13,7
1939' .41., 087
1940? 58,45.
Export
2,268
2,260
1,285
313
547
1,343
3,700!
5,788
2,925 ,
;2,16
,.1,633?
209
Yarns of natural and waste silk
Import
Export
2,170
157
2,258
221
3,666
242
3,434
73
2,538
428
503
56
283
389
707
967
647
330
585
261
749
111
884
25
~ By~1 Ra ~lY;t~l~t i ~ ~ Rai t Pti7' '~^'~ {~0.Vi tt1~ Fi Yap _~ 'ii q'tv I {P0. NP,I"' P u I~ i i . i 1p
~t r~~{~ 4 4A {~~((p&# l . 7a ~J~1S 1 i~ a R ~k 4 ~`
~~~p~~r)?~7NJ1~~1NY~n 9~'~ 7i~7~d.~.sr?. ~~ ~kPh~ ~, ,~PM1'vTl~. ~'7~~ ~ eiJ~t ~tr'~~a ~ ~P~i~li~ anA ~ ', . ~ , V! i,,.' 4 J ~ + ~ M~~ ran ~ ,~t'V~
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
003
11
2,111
1929
,
291
15
2,039
1930
,
797
15
1,043
1931
,
1932
13,115
240
1933
17,391
119
25
271
1,287
1934
,
034
30
3,311
1935
,
1936
34,957
4,821
854
38
2,1595
1937
,
1938
23,552
1,907
1939
40,338
1,522
561
57
184
1940
,
The capaca.t of the silk spinning mills amOWtits to
and is in full swing. In conn.e cti on with the
500 tons per year
remarkable increase in the number of
spinning of silk waste, a
spindles is to be noted (it rose from 5,800 in 1921 to, 46,000
in 1940.)
A comparison of the import and export of natural silk
and silk wasteyarns indicates that the Hungarian Silk weaving
mills could considerably step up the output of domestic silk
spinning mills and waste silk mills.
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Sinoe 1928, the consumption of rayon has norc~ased tre-rnendousa.y. After a recession in 1938, rayon import rose to more
than 5,000 tons in 1940, of which more t}}an half can be attributed
to Germany and the balanoe to Italy. .&l.ITIost to its enbireby it is
imported as undyed rayon yarn. It is a significant fact that oon-
siderabl.e amounts of rayon yarn have been exported with Hungary
acting as midclieman but also as refiner and throwster of 'the yarn.
The majority of these shipments were destined for the Southeast,
particularly Yugoslavia and Rumania; in the meantime, this newly
developed export had to come to a step due to shortages caused
by war conditions.
RAYON
but also as manufacturer. This export consisted chiefly of ?'r
k
twisted rayon manufactured at the twisting mill in Magyarovar
1941, scheduled for a daily output of 10 tons of staple fiber and
2 tons of rayon is instrumental to a stepped up domestic produce
Lion of synthetic spinning fibers. The factory, designed after a
patent of Feldmuhle A. U, of Rohrschach, will be erected in
Nyergesujfalu. Production is scheduled to start in 1943. Raw
material for this industry is to come chiefly from forests, an
abundance of which was gained by the absorption of the Carpathian
Mountains and Northern Transylvania. To this may be added an
abundance of corn and cereal straw, as well a's reed. The remark"
able fact that Hungary also exported rayon may be explained -~
as mentioned in the foregoing -- not only by her role as middleman
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
The Hungarian Viscosa A. C?, founded in the sp.rinp; of 4
Declassified
n Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
-l8M
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
iw~Rll
operating 18,000 spindles'
The Hunaxa.an raVor. consumption amounts per capita to
German a further increase is to be
s,ppxoxi.rrva.telV one half the
that in other branches of the textile
expected despite the fact
'?~a.aarnnaxes unf.'avarably with the Ger-
industry the quota per caps.
man coxisur,iption. An output of about 600 tons annually, as planned,
im art as attained in recent years does
or about one-tenth of the p
not even cover a fraeti~)n of cloinostie dernan.ds.
Silk and Rayon Fabrics
Only 'to some de{;ree are silk and rayon products con-
industr w The weaving and knitt;ing industry are
sumed by the silk y
cotton weaving industry is another impel?tw
the main consumers, the
relationship between the me(lufacture and can-s
ant consv.mex. the
material in the silk industry is not as close as
slump ta. on of raw
in whose spinnim, material is bax.-
.t~.lat of other text? ~.l.e it
to exchange of such material. That is why
arced by an apnroxa.ma
ex ort of raw material, semifinished
statistics on impart and p
s i f1ed tariffs as bel anging to the silk
a~.d finished goods clas
to show the situation and developr~ent in
category cannot be used t
`ibis is particularly true in the ease of rayon
the silk industry.
import and the export of fabrics and other finished products.
The majority of silk weaving mills are in Budapest,
medium and 5 small, plants. There are
consisting of 4 large, 7
lls in Gyor, 3 medium in Sopron and
one large and two ,medium m'~.
zent otthard~ Most of these are so-
one medium sized ma.11 in S , g
1.9
)tIJ,
4 try ~ Uq't!~'.
?.4s 4 ~ ~n4Yf
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
f(rrji5 Y,~4i ~~7f~~da$)~i`~''YdYJu]{YY6~u~
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
called mixed plants manufacturing cot'tan and rayon 1,n addttion
to silk. aVlany oi' them use mainly crepe yarns for which two plants
in Budapest and the plants in Szentgotthard are speciaily equipped.
Hungary expanded its silk weaving industry through annexation of Backa with four medium and three smaller sized mi1..is in Neusatz, three
small mills in Somber and one small in Vrbas.
The capacity of hungarian silk manufacture mar be empha-
' ed b the fact that before the war the export was twice as great
as import.
STAPLE FIBER
Because of its msnufacture and use, staple fiber belongs
to the cotton and Wool Indus bry, and due to its technical production
connection with rayon it will be discussed here. The regulation re~
quiring a high percentae of staple fiber to be added to cotton
and wool brought about a sudden increase of import.
Hungary? S Import of Staple Fiber
Year
Tons
1933
210.9
1936
1,501.3
1937
3,611 .1
1938
3,091.6
1939
4,370.0
1940
4,193.5
-20-
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
St0.1y sUpplied the rnaiUx POP'
?W11ile in previous years,
:f.z1 r?cent years,
tion, more than half oamo from Germea1Y?
in 1940 ~,
art
laexYam increased aonsidarably' p
tho im~~axt of stable ~' '~ s inning
~
natured cording to the cotton
au:laxly fiberyarn manuf d onaurap~
method. In the cotton industry pnxticulayf increase c
expected ].nnsmuch as in this indus~
tion of staple f:Lber must be e
ninon due it as a fiber equa~.
?s roduct has not reached the x?cog
try ~ha. p
respects to cotton. Staple fiber as a blending material
in
Sn if supplies of wool should improve
for wool is hero to stay ev planned
Nomcstic rn ufactuxe of staple (ibex
at some future date.
for 1943 will easily cover the dernnnd.
COrON
1 Manufacture of Raw Material
to grow cotton in Hungary but the
attempts have been made t ~~ ed
expect
ent. A crop could be
wnbex of slurny days was insu~'f'di
n
only during exceptionally dry summers, and then it would hard -Y
the trernendouslY increased
to anything worthwhile consa.dexin~;
amount
demed sj.ce 1920. ~~. ,.nee the outbreak of the wax import of cotton,
.n
from North ~nerica, has become very
which used to come rna~.nZy 000
were made for the delivery of 9,
if'f icult ? In 1940, agreements
d Turkey, which was
rn Russia and 2,000 tons from. y,
tons of cotton. f'ro Russia's ship..
'tute the basic supply for the year 1941.
t0 COnS~- ~~
a.ze, According to statis't, es
Tnents, however, did not material
8900 tons fluxing the year 1940o
cotton import dropped to ~" '
. es the Hungarian cotton industry
with the cad of subsxd~ ~
otonisierungs plan',s us~.n.g Ollein
candy opened up impoxt~t K
re
.21..
a~\ r r o 'rt
... i'
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28
CIA-RDP82-000398000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
material. Eoaontn, or Flookenbast
and South Hungarian hemp as raw d is
oduced yields of a very short fiber n
bind of raffia7 pr
bein. spun together with staple fiber.
ettla of the urtica fami1Y7
Raising of Faser?nessel ~ n
could be of great importance to Hung;ary, culta.va,tlon of which as
cotton amauntin-.r to three to four times as
~'~~~' of
compared with t
fiber
ght constitute the basis of a valuable ber
~?nY hectares and ma. .
cottan industry Invested five million
p1?oducti0 n? The Hungarian
Pengo and slrned a purchase agreement with the farmers so that the
0nside,rably this sum. Creation of an
total investment exceeds c
association is plan 0d as an agent as solve all problems in can-
._ e raising and production of this fiber.
necti on with l~h
Cottofl Sp inn g
arian textile industry, in the cotton
Similar to the dung
'f tin from semifinished and finished
industry as well the shr. ~
,aerial. may be observed. The speedy
goods to the i~mpol?t of raw ~~
cotton industry and particul arlY the canon
development of the
after U:Vorld War 1 led very .near/-y to
spinning a.llduStry right
self sufficioncY in cottonyarn. Cation yarn import dropped to
reached in ].927. That little is still
about one tenth of the peak required by the demand for high grade maternal
being imported is ivel expensive if produced in Hungary, a
which 'would be relat Y
country with limited outlets for such merchan? Before World
tton Y~,xn was squat. to its import a
VUar x, the. export of ca
development s~pressing the potentialities of the Hungarian spines
re of staple qualities. Yet them
nin industry in the manufactu
g
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
'arta.of cotton yarn baaause of the rnW
has not been exoessa.~`fl exp a .ze
h are oorlY industrialized and thus jeopard~ a
1;erritar~-65 Wh1.a ~
It has been planned to establish some
ba1a,nced import and export
vax~ia co supply the pap~a,laca in this
1Q , QQ0 spindles ti '~ransyl
~~tort spindles rose from 33,000 in 1921 to
region. The n~nbar of c0
r ce acitY o F' thi^oad spindle S is We11 able to
X40, QC)Q a.n 19~k0 ? ,Che ~?
'demand, as borne out by the fact that the
supply the domestic
L-s almost in its entirety of standard yarns.
reduced import consa.s
The hub of the cotton industry i s Budape St ? There are
two medium and ? small mills. 11'lore~
six lame spa.rma.ng rrn.lls,
'um sized plant each in Papa, Gyor, Rimas..
over, there is a mech. tularly
zorabat and a small one in Po~~az? 1~Iost of these and parti
the large plants operate a weaving pit in add~ta.on to their
spinning mi11.
Cotton Weaviflg
cotton weaving exceeds that of cotton
The growth of
ta2i fabrics, import reached its peak as
spanning. As for cot
e the development of this era the import
.
early as in 192? For t11
? ears remained more or less unchanged
which in subsegUent years
use the increased demand in the years grew
is no criterion beta
f the crisis absorbed the increased pro?ceding the outbreak o
the
us ears, together with
taon. Only after these a~,tspa.ca.o y
dua
_.~.?, ,~~ _ It may be
l
es.
of texti
ort slump an yarn, came a ree8SS10
p
d
that since 1932 the export of cotton xabriOS a
noted here
oods
related commoc~a.tie s exceeded the import. U~hiie imported g
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
p~,pAT''t V'18nt to a great
hiefly in Ger'fl Y and 1talY~
oxa.ginatcad c ,
tent to and be . 't'he numbar of cotton looms
~;g~t t Sautheaa
l00 in 1921 to
ex
hem automatbc) rase from
( only la poxoent of ~ sa.x 1,arge,
fol1owsi
,
c.s? ax'o distributed as
14, 500 in 190, th Buda e st and va.ca.na.tY,
p
ei hteen small plants to
eight medium and ~
lant each in Papa,
d
p
ize
e /ant in GYox~ one med
ium s ono lax g p Tolna and ~ome,z .
tr1ely and one 5jna11 mill an
Sopron a and Sumba t roduati nn of a
h its p
lar staa~,ds out throug
One company in ps,rticu
t all over the world.
expor
.taste which resulted ~n t
prad~.rct of good is one lame plan
s Ylvan
n Tran
tion with Norther Through tl~.e ~.ntegra Kolosvar have
ar and
t
SZ
m
in SzentgY?rgY and one S'' o each in,
nd several smaller
dil,m a
ained~ tlz the BacJ.a, three me been ba The n.xkst for
cotton
s have been gained Y HunEary
w e a~rin~', mills
sidnr~blY stepped
ean
y i fabrics manufactured in hungarY s being , ~ ah the pr3.nt?
o~ wjla.
t
xY
dus
i
? ve sing an i~.p by a rather product proces
over the domestic suppl`1
to c
th 57 rouleaux ~.s able ing industrY V
d the export.
th
e
rising 35 percent of
cotton industry, camp
an
. ara? The ~:iung has converted
and therfore first plaCex
total textile dus?txY, 10 Years ago, to
ne
d
o
fala shed goods, as was
from importing of reat extent
to a
g
lR
g
pplY
1 and is now su
~
importing of raw materia
rnport as even indus
le a
utru
. -?c needs. This does not o acts
the dolnest~.
e f~-Wished prod ~
xchang
i ped countries read1ly
xially en e up
t ]ant lands its
v017 p
even e
?larlV s1nco every indus-~r,
partic ? s is particularly the
Thy
products a special trend of its own.
dustry if the latter is to
i
n
tile
?he f ashian?minded tex case in ~'
the Hungarians, a people
s
dozr~and of a 'populace such a
satisfy the
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
high standard X d influenced by the heavy indus-
culturally ' on a ~,
big' 'towns. 1'rogrossive indl~str~,a~.iM
?tr?ala. ~ zat~on and by their ~
~~.
zata.on, thoral .,ol re, does not mean exclusion from other markets off'
or the Huri,garian market, but leads to possibili'
self.off'ica,ora.cy
t:>.eS of an. increasin oxchane of commodities in many fields.
~
RAFFIA F 1BI1' S
giber of a certain Jviadagascar Pala,
Manufacture of Flax
being raised domestically in increasing quantities.
Flax is
in_ grown in the Northern and Northwestern parts of
?
It is chefly being ~
7
and the foreland of Upper Hungary. The yields fluc
Trals-panuba.a
'ch may be attributed to business booms as well as to
tuate, w}1~ -
itions. Although there was no chance of self-suf~
climatic sand
f icjenty, in 1929 and 1936 extensive export could be noted, while
of flax remained negligible. Only recently was this
the impart
situation studied and measures taken to step up flax cultivation.
The true reason for he lack of interest in flax raisi.ng
s ma be assumed, the reduced consumpti n of flax whose
is not, a y
place to sortie extent has been taken by cotton but which can in
many respects not compete with flax, but may be explained as
follows it is the coinciding harvesting of flax and grain
?
ive amount of work required for the growing of
and the externs
flax. The coinciding with grain could be alleviated by growing
. however, will only grow in Southern Hungary.
wany ~e r flax, wh~.el1,
25
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
FLAX PROllUC T10N IN HUNGARY
available for both groups for 1932 and 1.93~a:
No sQparate data
1'arm are a
1932
6,00() heotarc~
1933 5,000 hectares
Fiber production
1932
2,300 tons
1933 5,9:00 tons
chiefly Flax Ou1tivat1.on, dgs ~gned
~~ 1ax Cul.t~,vati.an, designed
?.,,pr?~ucton ,..._.
for chiefly for linseed
fiber production ~...,....~.....n.._.~..
Year
Farr Area
Fiber
Yie1 d
Fiber proMFArm Area Yield (f ibex Fiber Prow
in 1,000
hectares
of hectares
in dozens
duotti?n
in tons
in 1A000 of hectares
hectares in dozens
duction
in tons
3.7
1,200
12
1.2
1,500
193
3
1.2
1,100
3.5
1,000
10
195 5
3
100
5.0
1.500
6
3`6
2,
1936
3
1.937
4
4.5
1,700
7
2.0
1,300
1
600
$
2.2
1, 900
1935
3
4.6
:
5
2
2,000
5.4
2,200
5
.
1939
(These figures based ofl
statistics not including
the Russian Oarpathia2ls;
the latter raise only a
negligible amount of flax
fiber yield may lend to an x.mprovpment in the
.Aa1 increased f1 ax
~I~~, arise textile industry. As a result of
supply of raw rnatera.al in th g
in is being used in the cotton industry to a
extensive experimsnt~.n.g, 1,oton
great extent.
- 26
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
Hemp Froduction
The hemp situation differs from that of flax. Despfe crop
iuctuations In recent years, a steady increase in the production
and consumption of domestic hemp may be noted. In proportion, the
import of the finer xtaliar]. hemp has dropped to only snail shipw?
m?nts.
In quan.titzr, Hungary was per'feetl.37 able to cover domestic
hemp needs of trade and industry in addition to delivering the
hemp needed by the jute irtdustrlr, which was reql1ire(I to add. 40
percent of tow to its products. Hemp cultivati.orL, with its main
territory in Tran.s_llanubia south of Lake flatten and in the Theiss
region1 is still growing, and extensive export rr>ay be expected. Due
to the absorption of Yugoslavian territory, the Hungarian hemp
industry increased about 60 percent as compared with previous Yugo-
slavian production, i.e., about 30,000 tans, thus putting Hungary
an first place amount exporters of soft hemp. Heintp cultivation
in Backa and Baranya was started bar German settlers many con
turios ago and through steady development reached outstanding
quality. Many years of experience of these settlers resulted
in hemp of a quality unsurpassed in the Southeast, as far as its
yield in hectares and its quality are concerned. Gerraany is the
foremost consumer of Backa Hemp with an eye on an over-supply
for export, thus assuring a bright future for the hemp cultivation
in Southern Hungary. Farmers process the hemp bark to a great
extent, extracting a first rate fiber used in the manufacture of
yarns and ropes. As in the case of flax, its waste is being used
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
for the manufacture of Kotoninjwhich in, turn aids ~.n the supplY
of raw material. 1Jti1i~ation of wooden particles (wood components
of the hemp) has not been possa.ble because of shipping; difficul-
ties althou h it would lend itself to the manufacture of cellulose.
The South Hungarian temp Association was founded to promote hemp
cultivation an Eaoka; JJiL1-1 sees to the propel' distribution of
seeds, fair, di.s l?.ri.buti.on of the crop and prevents unwarranted
competition. The 1tter has been noted in connection with the
export of hemp to Gormany in particular.
28'-
i' Li $'_ ? i :f ^ hn +, . 1!4nfW.tPh~' c. ,7a .h , n ; c . >Is'"rhi i i,
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
Z:UNGARY' S QJFFIA FIBER IWPORT ND EXP0BT
(1n 1,000 tone)
1922 5+4 0.2
1923 4.6
1924 6.6 0.3
1925 7.8 0.9
1926 5.6
1927 9.2
1928 9.7
1929 11.2 0.6
1930 10.9
1931 7.8
1932 5.7
1933 8.4
1934 6.3
1935 11.5
1936 11.4
1937 14.7
1038 5.9
1939 7.9
1940 1.6
0.6 0.7
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28: CIA-RDP82-00039R000200060020-2
0.1 2.1 0.6
0.2 1.7 0.8
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
Other haw iVIate r ia1 s
The Laf'a is industry consumes a considerable amount of
raw rnateri.al, originating overseas which cannot be grown in South!
east Europe. Anong it are chiefly jute used for the manufacture
o.l' sacks, rugs, haysaok binding, etc, ~,(ani1a hemp anal Sisal hemp
used for lritting yarn and twine, as well as coconut fiber used
for runners, door mats and cord These rave materials, unavail-
able because of the blockade, can be substituted to some extent
by other raffia fibers, such as hemp and hemp packing and in
part by paper; the utilization of these raw materials, however, is
limited because of their need for other strategic purposes. Hence,
the above mentioned branches of the textile industry are at the
moment greatly hampered. In this connection, experi.rnents made in
Bul;aria with the cultivation of Abutilon, a jute like fiber, are
of ma jor importance.
Processing of Raffia
:Runga.ry's capacities for the utilization of raffia is con-
siderable. Since 1921, the number of flax spindles rose in 1940
from 10,000 to 20,000 and that of hemp spindles from 1,500 to 7,080.
Within the same span Of' time, the number of flax and hemp looms
rose to 1,720.
In Budapest there are one medium sized flax and hemp spin-
ping plant and a medium sized fla;c spinning and weaving; plant.
.morn is a sizeable flax spinning and twining plant, in Dunafold-
In K
vat and Szombathely each one hemp~retting plant founded in 1941,
-30M
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
bec;aus? tin man;r ~.nstafaes they are mixed plants m ufacturin rapes,
weaving ~~ rarris and fpbrioS. This mixinf is prompted by the fact
that the various kinds of spir.lirL~ material develop as a by-prOM
duct of the manufa3tU1 of raffia fiber.
REPORT OF IW'FIk FIBER YARN AND RAFFIA. FIBER PRODUCTS
1'].UNCr,ARY S
(in 1,000 tons)
Year
Raffia Fiber Yarn
Raffia Fibar products
Impart
Export
Import
Export
3.5
0.6
1922
0.2
0.2
0.9
1.2
1923
0.4
0.4
0.9
1.4
1924
0.6
0.5
0.8
1.4
1925
0.6
0.4
1.2
1.4
1926
0.7
0.5
1.3
1.2
1927
0.7
0.8
1.1
2.5
7928
0.7
0.6
2
3
0.9
.
1929
0.6
0.9
0.6
2.3
1930
0.3
1.1
0.3
2.3
1931
0.2
0.9
1
0
1.4
1932
0.1
0.8
.
0.1
2.8
1933
0.1
0.7
0.1
1.6
1934
0.1
3.9
1935
0.1
1.6
3.2
1936
1.3
0.1
6.3
1937
0.1
1.4
0.2
1.8
1938
0.1
1.1
o?.1
0.5
1939
1.2
0.2
0.4
1940
0.1
0.6
32
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
Aooordin to he general eoonomio teridenoyflax and hemp"
yarn import have decreased greatly since 1930, while the export
of yarns in. 1934 and 1935 and subsequent years rose 'considerably.
The siable pre-1934 import of finished products too has dropped
considerably whale exporthas increased greatly (peak in 1937).
These statistics indicate that this branch of the Hungarian indus"
try riot only covers the domestic needs but is able to supply the
export market. As early as 1945, the Hungarian flax, hemp, and jute
industry was able to supply domestic needs up to about 65 percent,
thus ranking high in the textile industry of Hungary of those
days. Since then, the jute industry has not been able to develop
appreciably and was severely hit by the recession suffered by its
foremost consumers, the mill and sugar industry. Thus, it could
utilize only about 74 percent of its capacity in recent years.
The situation in the hemp and flay industry is different.
As far as the spinning is concerned, the latter was done to capa?
city but could not meet the demand created by the linen summer
fashions and the increasing demand of the armed forces.
~ O?VEM AND KNITTED GOODS INDUSTRY
After the cotton and wool industry, the woven and knitted
goods industry stands in third place, with approximately 100
medium and small plants.
(ihereare several medium sized plants in the capital. Several
medium sized plants in Rakospalota, ~agyarovar, Vac and hekeszaba,
bear mention. With the annexation of North Transylvania, Hungary
gained a number of small plants in Kolosvar. The annexed Yugo-
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28: CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
es added seve re.i small plants such as those
sl,e,vlan tnxritori
i'n Dacka pal.anka, two in 5e'nta, two 13a Szabatka, and tuao errtor"
h businessmen par'ticuiaxly were attracted
arises in 1'~aLlsatz? Jewa.s
needed for the establa.shrrtent of a plant for
by the snail capital
oods thus resuiting in hectic competition
woven and. knitted g ,
. t..mos harmed smaller, but sound ?nterprises.
w~1:~rh o f 1,en
Duties on woven and 1cri tod goods are very high, amount
to an average of R'i\~. 50.00 per kl:lograrlr for
1ng, for example,
osier' Such duties can only be absorbed by
s ~.1 k and rayon h y
high gua ~,11ty hosiery such as that weighing 110.150
mhis is also the case with other products of
grams per do zen. ..
the woven and knitted goods industry, importing only luxury
mestx,c industry is able to manufacture standM
ar. f-,ia].es wile the do
and mez"chand~ se ?
TFX JiIL~ CONV ... . LRTI. ...NC D OTHER BRA~1 CET S OF T Fly rjILE INDUSTRY
The aapac' tv of the textile industry, which is lnstru-
~. ,,
' ~.~ ex anding market for textiles over and
mental in the s to ad a. ~y p
need rotected by tariffs, does not depend on
above the domestic ~ p
production costs only. The latter enters, however, in the case
lardovon goods. In the production. of goods
of fabrics and scan
on re uirer~ents, sales are influenced. by the
made to meet f asha. ~.
fact that production must be in proportion with demand, pro-
iuencing demand. This is to some extent the
portion even Znf
dustry which in Hungary is so h1ghly
task of the converting in
-34-
. 1 t
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28: CIA-RDP82-00039R000200060020-2
 developed that It competes with old estab1ish?d C?ra'tral EuxaPean
Tket
their own ter~ritory.he mar canvertiig 1.ndustries even ? ~n t
leads to fi'urther competition. The fact
expansion thus created
that the liun~ar ?xpark of textiles appears to be of manor
~.~
~ticularly in the cotton and silk industry,
importance, nay pay
be attributed to some extant to the needs of the armed forces,
product~.cln of these articles being located chiefly in the eapi-
tale
Amoflother branches of the textile industry, rnanufac-
fabrics (medi~~.m sized plants in Budapest,
furs of rugs, decorator
and of oilcloth Uihich is produced in a
Kosze~, and Sopron)
G or bear mention. Manufacb~'e of curtains, em-
lar~e plant in ;~
? , ce and assementcrie should be mentioned here
br olderiE s, la p
tend to factory-made manufs.c~ure and handi-
which., however, craft.
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 v.
~',
Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
PxtiQSPEC'CS
;~">.. an textile ttextile ~,nu.Llatry ?t
deveiOPmex~t a:C the Huna
the postwar '.~''~ ~
indicated by tr~c sh
.
~? the f'allowi~g clIa~^arlerstacs , as a.
bestirs s,
d anc~ f iriiak~~ed ~';oods
g. of raW material, ser~~ifiinishe
in percentage
.~ and, since ou'bbreak of
the crisis, spin correspond
n,
textile import, ave
han
alaped greatly. These import c
Wing also,k1avc, dc, vc, ~ ~ decrease in
x
raw material but to a consicl.eab1e
to an ~.ncreaSe in 1 W~.th 25 percent of yarn
quantities of fshed pros?uctS anc
,y increased te~t:.1e e~~port aver a~,ed
:i.lnport an unchaned sharp. The sl.a. n ^, ~
~ort? Thus the
... about equal. to to textile vnl
eDpres sed in value
? ,s raw material ~anj2ort cannot
the budget, as ~ ~t
textile economy taxes Alinast half the
li ible ray' material export.
be balanced by the net, .a ~~ fiber.
for that matter, n.s spinning
Hungarian raw mater~..al impart,
an economic to}tiie autarchy
HungarY may have attained
r far as this is possible.
~..~
aLrMh development of the Indu as
~. ~u~~p1y
th not 1T i s nou only readily able to ~
tx
The Hungarian textile inc~us
> .t. ? O.L
t lv~? i11a ,, ~'1.... ...,
~ 41:1
ade to :. o -, r o C.
L,.
~, n
(7.1. X11 ,.~
iL~.C:?1~,1? e., w;
. '.II;'l~'' '"'1C;'.1.(_::`IJ
C t1 UT ~ I' .: ' c
.
L,~,~ ? ~ ~., 1,;x;1
i1C . w, C C:
ed'.1.~;l
3 }. u1 i.. 1. L G'.0
10 O wS:L.U, and i w .,
L-L :on r('i
(111 li.'.
r,.. rl..~,n r-'I;:Li'O 1t,v
J ~
?\:1a r. "''+7 ;'' ~. ai' ..fie. ., r.. ..
i~, ~aA,,``//,,'' .~C N .~1~ 1.1 N_Y (.4
Up era i93 ~7 , . ~. V r~ C,S ?1 :I", S COY.If~.
1 , . close rlLt1nea'. UID? a araJ. J' ~(a
l'tt?!'1,1c~17 `t to r.1E. a.
Ol' dOCI'01+"~O ShOu
1')..~,LO ? ' The O~rJlE ~Lli1;`,a ?
I~Yon aiafb in Buc.i,axc5 (1934) 1jch
101jiCflt Of
?.'tons of 'Ofl? In 1S36
c1j r QU ' ) U~ o..
Declassified in Part - Sanitized Corv Arroved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
 Declassified in Part - Sanitized Copy Approved for Release 2012/03/28 : CIA-RDP82-00039R000200060020-2
_I i. ,.. . ~1~i"x,57
~ ~ 711 on S .,.5:~ . r 1.
,
? 7 ~
L fl:; f.4 I (.
~a ^, p
?1,7~. 5.1 ./ 1
1., +P/
.1. a ~)r1 c;~ .
a.
/' ,
v, n C~Lri..iiuV5.1j.1. cIc 1e11Ca.l
:f. k. h + `bV l~~.V rr~~ f (~ 4 ? t'i1D, t; o Cott o:',".y .,. _o ~. 4. , :o 150
z' 1
on lr(OC 1.. r lnc1; Lo.. 'e:: .~ a_ o
( j:.ed. :br'iC;, up Lo >U p~1.cc S
in ~'u, ,tiG )~
50 porcerit ~,rj. v . 'v. n1, ,a;l. ?. . u
biib 0? {'