PLANNING OFFICE OF THE HUNGARIAN GOVERNMENT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R004200360001-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 14, 2016
• Document Release Date: February 14, 2001
• Sequence Number: 1
• Publication Date: February 3, 1950
• Content Type: REPORT

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CENTRAL INTELLIGENCE AQUILY
Approved For,R,
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- 200,14M CA?:7682-4045
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COUNTRY Hungary
:SUBJECT Planning Office of the
Hungarian .Governmert
? PLACE
ACQUIRED
DATE OF
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Introduction
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CD NO.
DATE DISTR, 3 Pn 50
NO. OF PAGES 6
NC. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
A. The Hungarian Planning Office was established 1 Augurt 1947 under the
jurisdiction of the National Planning Board, an advisory body of 12 members,
u:iich was dissolved in Novezpber 1948 although tto. 1Poard's mandate does
not legally expire until 1 August 1J.9,j0 Emgric VAJDA, former Social
Democrat now a member of the Hungarian Communist Partys aR8 president of the
National Planning Office from the date of its establ_shment until June 1949
when he was replaced by Zoltan VAS, former General Secretary of the Supreme
Economic Council, Lajos HARMATHYs Smallholders was vice-president of this
office until April 1949 when the post was abolished, Andor BEREIs Com-
munist, was general secretary of the Planning Office until November 1948
when this position was also abolished. Dr. Gyvia ZSIGMOND, member of the
National Peasants Party, was assistant general secretary until November
1948 when he was replaced by EngruGyeergy KOLOZS, a Communist, KOLOZS held
thlt-, post unUl Juno l949p when VAS succeeded VAJDA as president of the
National Planning Offices and named iCOMZS as his deputy.
Organ4atk9n of the Plan2.19g_Offipe,
2, In April 1949, the Planning Office Irmo divided into the following departments:
Economic and Statistics Material
Cooperative Communir;ations
Industrial Trade
Agricultural Control
Finance ?Personnel
, Social ? Autonomies,
Cultural Press
? Military ? Auxiliary
' Building titan)
? Since June 1949, when VAS acceded to the presidency of the Planning Office,
the Economic and Statistics, Cooperatives and Autonol3ff6deparUents and perhaps
the Press Department have become primary departm3ntsjit is not known precisely
how the other departments are subordinated to these no, called prixary depart-
ments. VAS added a Labor Department and it is assumed, a Judd-Ica' Depart-
ment to parilllel a similar mut of the Supremo ?Nconollic Council.
a
(property and enterprises
owned by various local com-
munities prior to nationalia-
CLASSIFICATION
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3 The Economics and Ste,.isties Depaetment is charged with peeparetien of
general economic plans for Us Hungarian Government; coordination and
integration of provisionel and terporary plans prepared in detail by
various branches of industry with an over-all national plan; colleetion
of general statistics on economic developments and accomplishments, and
supervision of computing and distribution of the national income.
4. A former Social-Democrat, Lezld TiMaR, who was at one time member of the
Supreme Economic Council and the, National Planning Board, was chief of the
Economics and Statistics Department from April 190 until April 1949,
Although TIMAR, as ch:ef of thie department, was delegated responsibility
for outlining the Hungarian Five-Year Plan, two young men in the Communist
Party counterpart office of the Economics and Statistics Department,
Ferenc ZALA and Peter 4ANDI, issued directives which took precedence over
those of VAjDA, president of the Planning Office and member of 1,he opreme
Political E/Eecutive,
TiMaR was fired immediately after the Five 7ear Plan nae
announced by the Hungaeian Government. A Communist, hirs Aladar MOD,
who is also head of the Planning Office Cooperative Department, succeeded
TiMeR as chief of the Economics and Statistics Deparement, Although Mrs.
MOD worked under BERF,Ags supervision on preparation of the Hungarian
Three Year Plan, she has no profeseional qualifications for the offices she now
holds.
Co nerative Deeartment
6, The Cooperative Department was established in January 191e9, shortly after
the Mutual Assistance Council was organized in Moscow, to foster cooperation
with planning bodies of other Peoples Democracies, When Istvin FRISS, first
chief of the Cooperative Department was sent to MOSCOW to represent Hungary
on the Mutual Assistance Council, Mrs, Aladar MOD was put in charge of this
department? Every two weeks this department issued an information pamphlet
containing all data published on the planned economy of eastern bloc coun-
tries with the exception of the Soviet Union.
7 To the best of soorcegs knowledge, no positive gains were mado by the Co-
operative Department in the way of cooperation with the People's Demoeraeies,
except for an agreement with Poland to use standard method to compute
national income and to collect the same types of statistical data, At the
same time, plans were made to build a coking furnace in Hungary for Polish
coal and an aluminum factory inPeland for Hungarian bauxite, The Polqe
suggested that they own the faetory in Hungary and the Hungarians own the
aluminum plant DERE' opposed thie proposal and consequently an agreement
was reached whereby these plants, after completion, would be owned by the
country in which they were located and contracts would be drawn up govern-
ing the exchange of their products,
Industrial Department
Se The Industrial Department was established to work out from the cver-all
plans details for various industrial branches0 Since the Industrial Depart-
ment was responsible for fulfillmee, of the Three-Yean Plan, a considerable
amount of friction existed between this department and the Ministry of
Industry. Matyas RAKOOI insisted that this departmene handle planning
onlyt and that control of industry and fulfillment of production quotas
prescribed by the Plan be the responsibility of the Ministry of industry,
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Engr., Tibor ADORjAN, a former employee of the U.S.-owned Standard Electric
4Orks and a member of the Hungarian Communist Party since 1945 CT 1946,
was chief of this department. until April 1949 when he was replaced by KOLOZS,
deputy president of the Planning Office.
The department is divided into the following divisions:
The Mining Division is'direttad by Engr. Gabor :!AJOH-MAROTEY, a non-
Communist relative of Akos nJOH, former presicint of the Supreme
Council of the Hungarian Peoples Court. MAJOR-MARPTHCs deputy in
Emeric HANSAGI, a young mining engineer who has been expelled from
the Communist Party because he joined the Nazi Party in 1944,
b, The ?etallurgy and Heavy Industry Division is directed by Engr,
LETTNER, a German expert of Swabian origin, who is not a Communist.
His deputy, Roland FISMARTHY, a non-Communist, is not popular with
Party functionaries, but has managed to retain his position. Source
learned?following his departure from Hungary, that such persons as
K1SMARTHY have been replaced by industrial workers.
c. The Electrical Industry Divisfon is directed by Engr. Istv& BOEHM
(not to be confused with the-son of 4.1hela BOEM of the same sur-
name and profession).. He, as are most employees in the Planning
Office, is of so-called Uourgeoi3 origin. BOEHM is a Communist,
who seems to be a faithful but undemonstrative Party follower
d. The Materials and Construction Division is directed by. one SEBES9YEN,
whose background and political attitude is similar to HOEHMs. Both
men are between 32 and 36 yeaos of age,
eo The Lumber Division is directed by Lajos CZAGANY, who is about 30 years
old, a veteran Communist of proletarian origin, CZAGANY was secretary
of the Planning Office Party Organization and is now a member of the
Party Executive in the Planning Office handlinr personnel problems.
CZAGANY appears to be simple and rather crude,
f. The Textile Industry Division is directed an uneducated Communist,
one SENYli, son of a Jewish pr.)fessor in GyCir, His deputy, SIMCH. Is
also uneducated and apparently as loyal to the party as most Planning
Office employees.
The Leather industry Division 13 under the supervision of Pater VALYI,
BEREI,a technical assistant at the University o Budapest, At one time,
he dss employed at FRIED's faotory in Simontornja. VALYI, who is about
35 years old, joined the Party after the war and seeros to be an ardent
Communist,
h. The Chemical Industry Division is supervised by August SIWON. SIMON
joined the Communist Party sometime between 1933 and 1.-)46 I.hen he was
in Chile. He is about 35 years old, a rather supid. but active Party
member, Hi a deputy, BIRTALAN, is a prominent eilpioyee of a large
chemical firm, BIZALAN is 3O2pid but cunning, ;im.(2 laov. sioce his ex-
.gulsion from the Party is allegedly anti-Communist.
i. The Agricultural industries Divizion is directed by 'Istv6?. SOLT, former
employee of the Hungarian Commercial Dank. 501,3 seopLp to te a rather
unenthusiastic Communist,
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CEUTIAL IMELLICEME AGENCY
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Ag4cultural 12Epartment
10. ?The Agricultural Department's functions parallel those of the Industrial
Department. Jozser HAJAS, a former civil servant and member .of the NaAjl
Peasants' Pa'...-ty, rlz;ss in carr o of this dopartmnt until roeently when he
was removed from this post. HAjAS' surname was originally.VOEGa; he is
of Gorman origin.
Construction Dep.gtment
11. The Construction Department coordinates building construction programs
under supervision of Engr. Andor LEKAI, an able but rather cautious man,
LEKAI, a member of the Smallholders Party, was never popular with the
Communists and VAS eventually fired him, His present whereabouts and
the name of his successor are not known to source.
Finance Deoartmont
12. The Finance Department supervises the investmnt Bank and handled all
. financial aspects and problems of the Three and Five Year Plans. It was
supervised until June 1949 by Dr. 1,48.2..14 CZIRJAK, a. former Smallholder
who is nou a COmmuaist. Although CZIRJAK is an able man, he could not .
cope with all the problems of this department and was replaced by Dr. 1341a
CZIK05-NAGY.
Social DepREIment
I3Q The Social Department, handlis investments for 30Ciiii lelCare enterprises,
i.e. medical clinics, workers' summer resorts and similar projects, wider
the direction of Dv. Oscar SOLT, a Communist physician of Swabian origin-
Cultural_Drelytment .
14. The Cultural Department,charged with planning for cultural instiLutions,
is directed by Dr. Annie VARJAS, a 30-year-o1d widow whose husband was
killed by the Germans, VAROAS ia very intellf,gent and acerns to be falLn-
ful to the Party, although her cultural background i5 strictly oest
European.
Mi1it;..,217._Department
15. The Military Department use the cover name HBotriebswissensohaftliche
Abtei/ung" and. works under otrict 5.ecrecy on matters affecting investment
and production for military. purpo5es. Thefirstsupervisor of this de-
partment was one KAMM, an insignificant and.ignornt 30 to. 35 year old
Major. During the summer of 1949, he was replaced by a rather uneducated
but reliable Communist named GABOR, who at One time .was secretary of a
committee fpr labor planning.
Material DTpartment
.16,, The Material .Deoartment4s task is the coordination of production, con-
sumption, export, import and distribution of raw materials and other .
commodities. Mrs.. Lajos RAJKI?. if of a Colonel in. the Ministry of
aar; was head of this -department until. VAS fired her. Mrs. H.A.jKI is
believed to have been a Soclal Democrat and to have joined the Communist
Party .when the two partici merged.' She occasionally expressed ho5tility
toward the Communists, but nonetheless tried to maintain a semblance of
Party 1oYa1t-1;. VAS appointed as'her successor, Lajas MAI, an uneducated.
veteran ComMunist, who allegedly is fond of intrigue,
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Communications Deoartment
14, This department, is charged with planning for the entire national communi-
cations system. Mal VILLANY, an extremely stupid 55-year-cld engineer,
former Social Dsmocrat, now a Communist, was in charge of this department
when VAjDA was hed of the Planning Office. VAS fired VILLANY, The
name of his successor and his present whereabouts are not known to source.
ILIAJEtatEILITIIL
15. The Trade Department orepares all domestic and foreign trade plans.
Diszld ADAM, economic editor of Neoszava and one of VAJDAls favorites,
was in charge of this deoartment until VAS took over the Nanning Office.
VAS transferred Tames SUGAR, a 27 to 30 year old former Social Democrat,
from the Ministry of Trade to replace ADAM.
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16. The Control. Department is an inspection unit of the Planning Office,
responsible for checking the proper functioning of all Planning Office
departments. Miss Sari KISS, a very intelligent, well educated woman
and.BERElls former secretary, was .appointed head of the Control. Depart-
ment when BEREI was named Secretary of State for Foreign Affairs in
November 1948,,
Personnel De srtment
17. Mrs,, Sandor APOR, daughter of a Calvinist Minister and second secretary
to BEREI, was head of the Personnel Department until April 1949? when
VAS removed her and appointed one SZABO, a 45 to 50 year old prolmtarian.
Mrs. APOR, a rather ignorant woman, is now training in a Communist Party
school.
.22.2EILTTL_ItUE-1113L9Maie
18. This department controls investment funds of theautonomies section
and endeavors to see that these funds are equitably allocated throughout
all sections of the country. It is directed by Henry LEOEVEI, a Com--
munist who loudly proclaims his loyalty but may not be a faithful Party
follower.'
Press Deoartment
19. when VADJA was head of the Planning Office, the Press Department was
directed by gyoergy rAmos, a veteran Co-munist, who has had a 'western"
education and may be a disillusioned Party member. 1:..AR1cOS has now been
replaced by his former deputy RANK', an outspoken Communist professor,
. RANKI is one of Mrs. VARJAS0 favorites and an opportunitt.
Auxiliary_2241.112aL
20. The Auxiliary Department is a service unit, vhid/controls the Planning Office
mail, archives ,and disbursement, V.,,heZa, a Comnunis As still wears the
national Bocskai costume, is in charge of this department.
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Labor Department
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21, This department handles the planning for and distribution of 'ungariaa
labor. Although there is a special labor office VAS establisled thit
department, vhich was formerly a unit of the Economic Departmelkt, to or
with that office. He placed Edmund MAHOTI, a clever and intelrgent man
who had been employed as a labor arbitrator in the Economics ane Statistics;
Department, in charge of this new Labor Department. During,the twirl
MAROTI was trained in an Antifascist school in the USSR; he is an enthusias-
tic Commnnist
Juridicaltment
22. This department handles the formulation of orders and the arbitration of
disputes between nationalized enterprises. Ern6 GYOERGYv former social_
Democrat and attorney of the Association of Hungarian Banks, directs th(1
Juridice Department0 GYOERGY, although a Party member, is an open and
sarcastic adversary of the present Hungarian Govornmentc
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