MECHANICS OF EAST GERMAN-BULGARIAN TRADE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00047R000100270002-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: April 25, 2013
• Sequence Number: 2
• Publication Date: March 13, 1952
• Content Type: REPORT

Declassified in Part - Sanitized Copy ApprovedAfor Release @ 50-Yr2013/04/25 : CIA-RDP82-000478000100270002-8
CENTRAL INTELLIGENCE AGENCY
INFORMATION- REPORT
COUNTRY Bulgaria/German (Sovzone) ` _ ~
Y
DATE DISTR. ~' Mar
SUBJECT Mechanics of East German-Bulgarian Trade
N 0. OF PAGES
3
P
E"
LAC
ACQUIRED
DATE
ACQUIRED
N0. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT N0.
DATE OF INFORNJATIpN
TXif ODCUYFNT CONTAINS INRO RYATION ARiECTINO TX6 NAt10NAL D[REXfE
OR THE UNITED 9TATEfr NiTNIN THE YEANINO Of TITLE IBr f6CTl ONE T9]
AND 7011 Of TMf U.D. CODEr A6 AMENDED. ITS TRANfNIff ION OR RFYE?
LATION OT ITf CONTENTf TO ON RECEIPT FY AN UNAUTHORIZED PERfON 19
PROHIEI TEO RY LAN. TXE AEIRODUCTION OR TNI! RDRN 10 PROMI0ITCD.
THIS IS UNEVALUATED INFORMATION
Trade agreements between Bulgaria and the DDR are negotiated for a calendar
year. The negotiations usually take place during the months of December
and January? The first tracia agreement bet>reen the two countries was
negotiated in 19~.q for the calendar year 1q~9?. The conferences are held
either in Berlin or Sofia, usually alternating from one year to the next.
The present negotiations, for the 1852 agreement, are taking place in
Berlin..
~. T13e delegation from Bulgaria usually consisted of a vice-minister of For-
eign Trade,. or a person of equal rank from the Ministry, accompanied by tw?
or three experts from the Ministry. They were joined by the members of`
the Bulgarian Trade Mission who represented one or more State import or --
export agencies, During the first stages of the negotiations, this group:
would split un; the experts from the Ministry together d~ith the vice-min-
ister ;could discuss the large-scale purchases, e, the spinning mill pur-
chase in 1951; while the rest of the group would sit do~~E~z with their
counterparts in DIl1, the East German organization. for inland and foreign
trade. (BIA towards the grid of Ig51 became the successor to D~1HA, which
had been .the East German organization for foreign trade: only.)
3. In these discussions each one would have a list of all t}ze
items acid the quantities desire y his respective import agency, T~.e
__ __-.w, ~,..,,. v,.
that, acrd nothing of same o er item, i~-t the same time, the representa-
tives of the Bulgarian export agencies would find out the German needs
SECRET
CL~ASSI~ICATION ~~;Ch"E`~'~S~CLT_R_-_TTY TNFORMATT()T~ I I
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr2013/04/25 : CIA-RDP82-000478000100270002-8
 Declassified in Part -Sanitized Copy Approved for Release ~/\(f~~J 50-Yr2013/04/25 :CIA-RDP82-000478000100270002-8
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trh"ch ~ulget^ia c?uld f~.11+ After: several days of o~3.souecsionei, the B~Ygax^ian
group ~auld get together, ~ egad sash list would be discussed in: tu~ra. .~ ? master
? lint gas -then made up which- ccatain~d the eatact??itema eaad exact quantities
which East ~(~e~aray c~ruld. f ur~~i:ah Bt~Igaria, ~s xir~~.7. ate s secoxu! list off' X11
the items 8ulgas?i.s: cauld fuY?iai~ih tl~e~ (~?lRa: ~fta~ sons laatridriute .ad~~.stments
wade ~oiatly ~,rith the (}armr~;aa, '.the agreeazenti~ xer? ei~nec? bar a chiefs of
broth da~egations, ate. the Aegotati6xbs, a s such, ex~du~. Ito 8o~riet psrsor~nel
t~-c-1c part in these uago~e~ioa~t,
In order to uader~tarad the mechanics aA C~DFt-Bulgarian trade, it is ~necessarg
~tcr ro~d~rtsind the relationships betaaeen the end caxzsumer in $ulgaria, -the
Btalgar3+~a:$$ute ir~portieg~ agency, 13IA, and the Bast C~ermaaa ~ant~.faoturero
Jlny fig ih Bulgar~.a which xished to impart aomethiag, requested it 'from
the 3.mport ag,?ncy s~hi.ch de~}lt xf.th that "~ax?tic~.ar` prodt~t+ ~llth?~agh' the
f ~xay ha4e euggeasted a reipeeifo Bast 4erstan man~."aQ#nrsr, the $tafcte
i~por'~ a~enag xa,a iri no xa~r bcnnd to pay any attention to such a regnest~,
Qince the nationalisation aa~ ~-11 iadustry9 hover, regmests for imports
rwldom, if ever, inc~:ude tie teams of` the desired: seller, 7."he reason for
this is that all those in Bulga=?ia.xho knew the co~parative quality of
iauauS'a~turere in given Yield in givers countrg xere .kicked out of
their fobs, and tl~e people xho 'ari xow running "industry for i~he State do
soli sae suftieie~nt expertnee and~or knowledge to specify such a manuf'ae~
tiurer.
5. Thos a ffite~t? i~port agency -acted as the buyer, apd the -end cozistu~er is
~m1:~aria 1" ed so part xh'"tsaever in ocuren~rat transactions. Om the a~sr-
50X1 s~:ds the picture xas -. som~l~hat 'sxrilar;
i8 m?e~ ea~~s the Bulg~~ax?iar} "$ta ? ageracp dea2~- x~~ ah~,+ ~~Th; xouid
dscids which Baet t}ex~an m+~nvfaetu~er irould furmis~r the ~aods, eTen
though the Bulgariax- x~por# agegay . in its order had specf'lsd a ? particular
iaaA~afacturero, Ix practice; ~f[CA ~iaual]y, split 'the ~ulgaaa crciir o~?xg
ser-eral mann~acturers. ~~n tb~..~rchahdie? liras r~' for' deliier~r, the
laett~er would aotity Istdn trialimpor'~ ~ directly. a nd :e~ai ~~ a ?~aP3* of
the imvoioe to DL1.
~~a t t~ernu~ manntacturer nQtifiod" DIli, ehi.ch in tro~n notif~c~ the Bn].giws~.
ion _iaport agency. `R'he ix~port agency then. arranged 'far de3aTer?y+
phis rule had one except3os~. Wince textile treadles xere s'acfl highl,T
_~-~c3alized commodity, Industrali~porty the agenoy chargisd xith prc~cur~?
3:~eg trutile ieedles as ~e17~. a a ?hher itras, xould ?leal directly xith the
C~erman~~aannfactuPSr, and vice versa. ?his xae car~3:ed to the. extent ghat
~rhem Vii' hipment of t exti~s x~edY~s nos ready for dallv~ry, , .~.I1e ma~wi-
qua~.i.ity. Such inspeeticrri .ys "toc~c place in ~c-fia {rif~ber dalitilt~y' Ir$"
the goads.
~? Vader the :plane for 14521:, the abovementianed exoeptic~awould no lartger
be permil~ted.
IDrIA hoe ini'oxmsd ~$of* that all traASaotions xf]1 'he
handhd .through DIAo This v3.11 be emfarced ^~? the de~re~ ~h~t' sofi~
xill sat t+s per~-itted tca ca~rrs~Iparrd xith t~1~ mufaotursrar. .'AI~-: barb
stated ghat if' .Sofia coa-tiut~ed ao Nita to"the maagfactttirers, CIA xould
issue striot orc~e~?s to the ma~factnrer not to axexwrr,
8. IIatil ~Taveatber 1951 f`inaACi~il settlement for goods xas panelled by letter
of credit ~"akkraditi4), lJidar this system~~ a transactioffi xould be handled
i.n the felloxiag master. $~y, star example, Indus~Grialispc~rt ix Bu1.:garia
ha~8 ordered .paper from an ~>~~st German manufacturer? 'mss the matu~ac-
tnrer-had the merchasdsee ready far dslivery, he xould rtotfr the brattah
mf CIO, xhich ha~adled paper, :'which in turd ~v?uld hofii:f"y I~dust~?ialirnpar
SECRET/SECURITY INF'CIRMATI4N ~,
~ECRE~[~
Declassified in Part -Sanitized Copy Approved for Release @ 50-Yr2013/04/25 :CIA-RDP82-000478000100270002-8
 Declassified in Part -Sanitized Copy Approved for Release -Yr2013/04/25 : CIA-RDP82-000478000100270002-8
DUX"I ~ y~ ..1:IVV1L11' ~~ J.iYl' VfLC'11111V111
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3sn ~.$o~`ia. 't'he latter. ~rould thsa open the ~,ecee$ary fetter of credit
through the Bulgariaa ]tatc~al B~mk: ~t~n ?i~.e I~~$sche ~'otenbaml~ $h
. ~erli.a.: n+~utschs ~toten~aak;xould creei~. t B~ P~tpier~ . rair,ich, is- ?~u~s.'
t~4tald ardrr the manr~{`~etnrer to ship ~r paper to ~{dfia? I,duetrisl.
..
i~pc~rt mea~h3.7,e xould have; isru~d ~~.~npiag ~,s~tti-~aoti?as to ~i~rr~xt:^a
Ct~a:"a~ard,ing ~sonop?~:~.a Bas1~~ a~rmaA~~ ~ ~Iai~ rafactr~e~?y afte~^ receiv-
th~~ order t'rm~ #~, to ship th? go~d:~ ~tnuld hand t's~` ?oer to
,tlu~utra; 'sh~LGh xc~t].(1 `ship them. ~,? ?bes~~ed, $ct'ia fdr Isutus~rialimpcrt.~
;. t~
~~ Ia.Bmr~ber l~'].,':~.emeht by +~Ir~lseeso~`r~}s sdc~pted iA order to, iasrxre
iu~,~`otmity rvit~t, the .. used in ~~~her Satellite coumtrie~sa lithereas
uti~der -the Ks&~a^;~dti~.- trio, s~ttlemeat ~~s "it'feoted chile the swede
xere is tha ~gwatr~ ~+t ?b3i~t, ..under the +~ :. ssc-s srrx~g~memt eet~le-
s~,t it mmadq'.a#'ter '~~vod~r are recai~red Huigua? 7~'hus wheel
htdustrialiui art ie ~.'ormed 't'hat th? ~aerch ' ' ss is ri~ily f or shiposent,.
it ~t ' x?t~~y TiIA with,~a tii days that i~ . ~ ]
l script ~ the goads,
.
thi~a tea .~~s after receipt cf the gaods''Imdnstrial3a~ort stoat
sara?"amgs far the Sulgeriaa Natio~tsl gsxk to ?rirdt ?~eutsche ]~ot+abaa~
t~rlah ~h~e smr~tuat. ~o~.~rad.
1R3~. 8'u.T`s~!ai~?$a~t 4trma~i trade agra~aetat~ usua~.ly aclmde ~ a o er~sa swo'hier
... , at a~uaa,t~~a1 ie~ois ~'a~ s3cpcrt from .vast Qerma>1y t~ 8~lgaria? h
50X1
50X1
50X1
th,~ past, ~+Sgaria has frrtqueat],r fail~ci to?~ place orders for ~uC.h ftems~
as ta- sxcns? wc~7;,d sh+~1R -the asr~a~s a b*tter: ei"frr rom a diet aer?,
t? .Smaetimea the Btlulgaria~ xca>s1d s er arnoh ~3're~s, brad ~hei
~otilied th~~ the goods 1re~is r~iadg "iESr. fl~:..rry, xc~tl~ +iilsTialdag`
dsY~~err ~'or ~ev~ral s