CZECH TRADE WITH YUGOSLAVIA THROUGH SWITZERLAND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R005200030003-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: November 16, 2016
• Document Release Date: March 6, 2000
• Sequence Number: 3
• Publication Date: July 12, 1950
• Content Type: REPORT

CONFIDENTI '
Approved -SRt j@e, ,000/V*g7 Q
AfftQ P 27004 52QOO OUO
CENTRAL INTELLIGENCE AGENCY REPORT NO.
FORMATION REPORT
CD NO.
COUNTRY Yugoslavia/Trieste/Czechoslovakia/Switzerland DATE DISTR.I4,JL 50
SUBJECT Czech Trade with Yugoslavia Through Switzerland NO. OF PAGES 8
PLACE
ACQUIRED
DATE OF
INFO.
25X1A
25X1X
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
25X1A 1, Alexandre Just, a representative of the Swiss firm, Sola Ltd.,
Rue de la Rotisserie 6, Geneva., arrived in Trieste to try to interest the
Yugoslav Government in Czech goods which had been ordered by the Yugoslav
Government in 1946-1948 but had not been delivered after the Cominform rift.
Inasmuch as these items had been ordered to fit specific Yugoslav needs and
requirements., more than 70 percent of them proved to be useless to other nations
and therefore could not be disposed of by the Czechs?
2. Because of the Cominform split, the goods could not be delivered to the Yugoslavs
through normal commercial channels. Consequently, the Czechs offered them at a
25 to 30 percent reduction to Sala Ltd.., which, in turn, hoped to interest the
Yugoslav Government, through the auspices of Nicola Agic, current head of the
Trieste Yugoslav Economic Delegation, in the purchase of the goods in return for
Yugoslav raw materials, equitable compensation or currency.
3. Just also went to Trieste as the agent of V1,. Kuhn and Son, of Orpund near Biel,
Switzerland, a firm manufacturing wood and circular saws, saws for the manufacture
of costume jewelry,, metal saws, wire saws,, polishing machines and agricultural
and garden tools. This firm had been working on large Yugoslav orders which
had been partially filled and satisfactorily paid for by the Yugoslavs up to
September 1949. After that time, the Yugoslavs had lacked the necessary hard
currency and the quantity and value of Yugoslav exports to Switzerland had
decreased sharply. Consequently., Kuhn and Son were unwilling to fill or accept
further Yugoslav orders without concrete assurances of payment. Since September
1949, Kuhn and Son had completed for, but not delivered to, Yugoslavia equipment
valued at 6579568 Swiss francs, and in January., February and '.'.'arch of 1950, had
commenced work on equipment valued at an additional 700,000 Swiss francs.
4. To persuade Kuhn and Son to deliver the aforementioned merchandise,, Belgrade
proposed two methods of effecting payment:
a. Through a three month draft guaranteed by the Yugoslav National Bank,
b. A compensation offer whereby the-Yugoslavs mould supply railroad cross-
ties at 19 Swiss francs apiece, CIF Buchs6
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5. This proposal was deemed unacceptable by Kuhn and Son because Swiss Banks
refused to honor such drafts, considering the political risk too greats,
This second proposal was refused by Kuhn and Son on the grounds that they were
not acquainted with that type of material, and the fact that the Union Railroads.,
the only Swiss buyer of cross-ties, had already dealt directly with the Yugoslav
in the matter. In addition, Kuhn and Son learned that the Swiss narked in cross-
ties already is glutted by offers from Swiss firms.
6. In November of 1949 Kuhn's son visited Belgrade and unsuccessfully tried to
negotiate a settlement. The Yugoslav Ministry of Forest Economy repoatad4
uphasized the need for the ordered goods and was supported by statements mask
by Tehnoproztet, the official purchaser of the ordered merchandise. Kuhn's song
returned to Switzerland without taking action in the light of the lack of
"Yugoslav ready funds for payment. Upon learning of Just's proposed trip to
Itieste to contact responsible Yugoslav authorities, Kuhn and Son ce issioned
him to discuss the matter there because they had heard that Tehnopr t was
preparing now orders for 1950.
7. The goods formarly ordered by Yugoslavia, which are now being offered for sale
to Sola Ltd., by Ferret of CzechoslovakiaB, all CIF the Czech border,, are
listed below:
a. 363 railroad car wheels, weighing 3?38]15 kilograms,, ordered by Generaiz a
Dir kcija Zeleznica, Belgrade,) order number 324619 dated 13 August 1948a
Invoiced by R et in Prague on 19 October 1949 as order number 665391,
the wheels were manufactured by the Skoda Works at Pilsen at a value
of 10,9588.35,
b. 52 streetcar wheels, weighing-8,,402 kilograms, ordered by Gradski Elaktrik
Travaj, order number 1781/488 dated 26 July 1948,,- Invoiced by Fe t
in Prague on 19 October 1949 as order number 66457, these wheels were
jymnufactured by the Skebola Works at Pilsen and valued at $2,100 ,,50.
e. :160 motors of rotary transmission roil chain.,, weighing 2,680 kilogram,
ordered for Rudnab (Rudarski Nabavni Zavod - Mass Procurement Division)o
d., 91,012 kilogram of steel-aluminum wire ordered by Teehnoprcmdeet for Biro
za Inostrane Nabavke E1ektroprivvrede. I ?oiced by Ferromet on 27 Larch
1950 as order number 69=519/228 the wire., to be loaded at Bohumin rail-
road station,, was valued at $88,8277.71 and rolled on 77 reels valued at
$3,088 for a total of $919907.71. This amount is payable by irrevocable
letter of credit with the Ziim tosteriska Banka8 Department 'obin~ Prague.
e. 173,,680 kilograms of steel forgings, ordered by Biro za Inostrane Nabavke
Elektroprivredcy Belgrade,, order numbers 61622 and 62881 Invoiced by
Ferret in Prague on 19 October 1949 as order number 66846/Wu/Cy8 and as
work number 102130/1/228 these forgings are to be loaded at the railroad
station at Vitkovice9 priced at $38,,834C,85o Breakdown of weights is as
fori(Ms~
2) 90 n
.3) 100
4) 105 rr n
1) 80 steel forgings weighing 4;,CO kLs
n 79000
". .
149000
" 54;000 n ?
609000 n o
89460 " size 65 x 5000 m.
ce 14220 n size 75 x 5000 M,
158000 n .
8) 175 n
7) 60
6) 60 n n
5) 115
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f? 16 square rigging bars weighing 9,120 kilograms, ordered by Generalna
Direkcija za Naftu i Plin (General 1anagement for Oil and Gas)0
Invoiced b Ferromet in Prague on 14 October 1949 as order number
66838/Sba/Ik and as work number 21/102106/].4F, the rigging bars are
valued at $173347.20 payable by irrevocable, divisible letter of
credit opened in favor of Ferronet with Zivnostenska Banka, Prague,
payable against copy of the invoice and bill of lading. A description
of the rigging bars follows.
16 square rigging bars, 3-1" - 88.9 m., length 38" ?-Y 14582 plus or
minus 50 mm.,, reinforced at both ends, with right hand thread API 4-2"
on the top, drilled the entire length 50.8snm~,, plus or minus 0.8 mm0,
made from carbon steel normalized and annealed before working (sic).
g.. 13 shafts weighing 25,805 kilograms, built according to design number
727 Vzg,,, valued at $7,5663 12 shafts weighing 28,500 kilograms design
number 764 Vsps valued at X3388; 2 regulating shafts weighing 10,700
kilograms, constructed according to design number 10602, valued at
$3,500; and 305 round iron bars, three to six meete..s in length,,
weighing 22,000 kilograms, valued at $4,382:.,40 ordered by Biro za
Inostrane Nabavke Elektroprivrede, Belgrader. Invoiced by Ferromet
on 10 October 1949 in Prague as order number 6682SA1U/Cy, and as work
number 10207/1/22, these items are to be loaded at the railroad station
at Vitkovicc0
h0 9 iron pots for melting lead weighing U7 540 kilograms with covers,,
ordered by Rudnab (Rudarski Nabavni Zavod), Invoiced by Ferromet in
Prague on 27 April 1950 as order number 66748/Tk/Hra and as work
number 101928m1OO862, Ferromet promised immediate delivery of three
pots and covers from stock, two more pots and covers after nine months
and then one pot and cover every six weeks thereafter. The description
follows
9 iron melting pots for melting lead, capacity '280 tons, electrically
welded seams, diameter 4,115 mm, height-2,883 mm, thickness of plate
32 sm, cut plates 38 mm, rim plates 32 mm, total weight of nine pots
98,100 kilograms, price $6, 339 per pot.,
9 pot covers, total weight for nine is 19,440 kilograms, 2,057?5 mn,
radius 32 mm,, thick, depth of rim about 623 mm, clean pressed with raw
rims cut by autogen with an allowance of 10 mm, cost $25068 per cover.
1. 2 rollers weighing 2,260 kilograms, constructed according to design
number 1441, ordered by Glavna Uprava Brodogradnje (General Management
of Shipyards), Invoiced by Ferromet in Prague on 19 October 1949 as
order number 66681kIu and work number 112'-646$c? the rollers are valued
at $225.60 and are to be sent from the plant at Vitkovice,, with delivery
promised within two months after the order has been placed.
J. 29 steel forgings weighing 39,710 kilograms ordered by Glavna Uprava
Brodogradnje, order number 457/48 1 fir. Invoiced by Ferromet on
19 October 1949 as order number 66627/ft/gy and work number 101830/1/22,
the forgings were made at the V'itkoviee'pLant and were valued at
$9,399.80. Description of the forgings follows:
20 forgings, size 200 x 4,650 mm. weighing 23,000 kilograms, N5,6OO.80.
3 if if 400 x 3,250 mm. 9,630 2,109.00
6 it " 215 x 4,100 ~sua. 7,080 12690.00
Totc~l 0,399.80
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k. 1 motorboat propellor shaft weighing 235 kilo grams ordered for Riba
of Zagreb. Invoiced by Ferromet on 19 October 1940, as order number
66414/rtu and cork number 101.996/1/22, the shaft was constructed by
the plant at Vitkovice according to design number 425/47 and is
valued at
1. 1,285 pairs of Hungarian type railroad car axles neighing 51,60$
kilo gra:as, ordered by Tehnopro:net, Belgrade.
rn. 8 half-hardened cylinders weighing 35,710 kilograms, ordered by
Zudnab for the steel mills at :enic:i. Invoiced by Ferro met on
14 October 1949 as order number 66288/Sba/flk, these cylinders are
valued at 19,170 payable by an irrevocable, divisible letter of
credit opened in favor of Ferro;:let with the ivnostenska Banka
against the bill of lading and copy of the invoice. Description
of the cylinders follows:
amantit
Half-hardened C.ylinders
oeaffht 1 s .
Value in US dollars
1
640 x 1,400
3,850
977.90
3
640 x 1,000
85,450
2,146.30
3
558 x 1,400
8,710
2,212.30
1
960 x 2,200
14,700
3,833.70
n.. 75 rollers weighing 212,350 kilograi s ordered by .,udnab, order
number Jugoinvesticija A-1/I-3-4. Invoiced by Verrornet in 1 ra;ue
on 19 October 1949 as order number 66015, these rollers were nude
at the plant of Vitkovice :.nd valued at $41,453.69. Description
by lot number follows:
?uantity
Roller size (mm.)
y~'eiht kns.
Value in US dollars
Lot Uo. 1
5
282 x 500
1j550
5
2.32 x #300
2,300
4
285 x 500
1,320
3
30?3 x 800
1, 710
2
310 x 800
1,140
3
312 x 800
1,710
1
385 x 800
900
2
380 x 800
1.$80
Total
12,510
$3,407.72
Lot No. 2
8
390 x 1,000
8,960
$2,225.66
Lot ;'o.
2
315 x500
860
1
330 x 800
600
1
340x800
600
~
Total-
0'J
2
429.30
,
10
Lot P.
1
450 x 1,400
1, #350
2
476 x 1,400
4,040
1
515 x 1,400
00
2,940
11
760
4
1
525 x 1,4
537 x 1,400 Total
,
3.090
23,640
X3,980.98
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:.uantit_V
_5-
Roller size (mm.)
:ieifiht I; s.
25X1A
Value in US dollars
Lot Lo. 5
1
557 x 1,400
3,200
3
565 x 1,400
9,900
6
571 x 1,400
19,800
Total
32,900
35,540.36
Lot No. 6
2
685 x 1,750
10,720
3
688 x 1,750
17,400
1
746 x 1,200
4,830
1
758 x 1,200
4,900
3
828 x 1,200
15,000
Total
52,850
;11,013.94
Lot No.
1
558 x 1,400
2,930
2
650 x 1,400
9,240
Total
12,170
32,049.45
Lot No. 8
1
795 x 2,200
9,700
1
800 x 2,200
9,700
2
860 x 2,200
22,000
1
900 x 2,200
11,860
1
950 x 2,200
14.000
'
Total
61,
260
$12,806.30
o. 36 square iron bars and 29 round iron bars, total weight 104,660
kilograms, ordered by Glavna Uprava ]3rodogradnje, Investicija,
order number 63250. Invoiced by Ferromet in irague on 19 October
1949 as order No. 67.044t~iu/Cy and work number 113678/1/22, these
iron bars come from the plant at Vitkovice and are valued at
X23,227.96. A description follows:
?uantit.Y
Square bars Size (mm.)
.ei ht Zsgs.
Value in US dollars
10
100 x 4,000
3,400
3 897.60
8
200 x 4,000
10,880
2,458.88
11
250 x 4,000
17,200
3,680.80
5
300 x 4,000
15,250
3,263.50
5
350 x 4,000
20,750
4,440.50
n~urintity
Round bars Size (mm.)
rfekht kgs.
Value in US dollars
10
150 x 4,000
6,000
31,584.00
7
200 x 4,000
7,490
1,692.74
7
250 x 4,000
11,690
2,641.94
5
300 x 4,000
12,000
2,568.00
p. 6.5 metric tons of seamless steel drilling pipe, type 1, fade.from
material with the strength of 55 to 56 kilograms per square millimeter,
ordered by Tehnopromet in order number 402 dated 16 July 1947.
~. 315 meters of seamless steel pipe weighing 12,750 kilograms, ordered
by Generalna Direkcija 'etalurgiske Industrije (General ':anagement of
the Letalurgical Industry) for the Djuro Djakovic f_Letory at Slavonski
Brod. Ordered on or about 6 June 1947.
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r. 1,834 meters of 38 millimeter seamless steel boiler pipe, made from
special chrome--molybdenum steel, weighing 4,750 kilograms, ordered by
Generalna Direkcija ,.Ietalurgiske Industrije for the Djure Djakovic
factory at Slavonski Brod.
s. 32 pieces of 41.5 millimeter seamless steel pipe, made from S.M.
Flussstahl (sic), type Ct 35, weight 600 kilograms, ordered by
Tehnopromet for the iron works at Vares, order Tdo. 751/47.
t. About 2,999 meters of seamless steel boiler pipe weighing 8,750 kilo-
grams, about 1,102 meters of seamless steel pipe with smooth ends
weighing 3,400 kilogra:~,is, and about 363 meters of seamless steel coiled
pipe weighing 400 kilograms, ordered by Glavna Uprava Brodogradnje
(General Management of Shipyards).
U. 355 pieces of seamless ste:un pipe weighing 14,950 kilograms ordered
by Jugoslovenska Linijska Plovidba (Yugoslav Ship Lines) at Rijeka.
v. 107 meters of seamless steel pipe with smooth ends, weighing 3,780
kilograms, ordered by Generalna Direkcija ,lektroprivrede, order
.No. N 3227/1, for the porier station at Veliki Ifostolac.
w. 411 meters of seamless steel 'pipe weighing 2,055 kilograms ordered
by Generalna Direkcija Elektroprivrade, order No. N 3227/1, for the
power station at Zenica.
X. 754 pieces of seamless boiler and exhaust pipe, strength of 35 to 43
kilograms per square millimeter, weighing 9,620 kilograms, ordered
by Tehnopromet, Belgrade, order number 1574/R/U/III 2001-2009 dated
26 February 1948.
y. 29 pieces of. seamless steel pipe mode from, S. M. Flussstahl, according
to the specifications of the certificate of Lloyd's Register of Shipping,
London, weighing 6,903 kilograms, ordered by Tehnopromet, Belgrade,
under the same order nu=mber as sub-para. x) above.
z. 47,000 kilograms of normal length flat steel. Ordered by Tehnopromet,
Belgrade, order 1;o. 1815/1-tU/2/3/D dated 5 June 1948.
aa. 10 drill collars neighing 3,600 kilograms ordered by Tehnopromet,
Belgrade. Invoiced by Ferromet in Irague on 22 ,pril 1950 as order
No. 66840, work number 10207/1/22, these drill collars are valued at
261,500 Czech crowns, payable by irrevocable, divisible letter of
credit, opened withZivnosteskna Ba.nka, Prague, against a copy of the
invoice and the bill of lading. A description follows:
3.5 inch F.H. a 20, length 6,100 mm., other details according to
.{PI (Table 4/447) with elevator mounting, nut thread on'upper ends
and pivot thread on other end; StC 60.61, annealed, including cast
iron thread protectors (sic).
8. Before Just left Switzerland for Trieste, yV. Kuhn and Son provided him vith
a list of saw blades _:"de of first class Swedish chrome-nickel steel ordered
by Tehnopromet under order number EB VI/5 E 6080/103. Kuhn stated the
blades were ready for delivery and requested that Just discuss their disposal
with appropriate Yugoslav officials in Trieste. A parti~Ll list follows:
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Quantity
Size in mm.
Cost per unit in Swiss francs
Total Cost
50
1,050 x 140 x 1.6
11.53
576.50
35
1,200 x 120 x 1.6
11-15
390-25
45
1,200 x 140 x 1.6
12.45
560.25
50
1,250 x 140 x 1.6
14.25
712.50
30
1,300 x 130 x 1.6
12.85
385.50
200
1,300 x 140 x 1.6
14.25
2,850.00
30
1,300 x 150 x 1.8
15.60
468.00
60
1,300 x 160 x 1.8
16.25
975.00
60
1,300 x 140 x 1.8
14.95
897.00
40
1,350 x 150 x 1.8
16.95
678.00
50
1,350 x 160 x 1.8
18.30
915.00
70
1,400 x 130 x 1.8
15.20
1,064.00
60
1,400 x 140 x 1.8
16.25
975.00
100
1,400 x 160 x 1.8
18.30
1,830.00
50
1,450 x 140 x 1.8
17.60
880.00
170
1,500 x 140 x 1.8
17.60
2,992.00
100
1,300 x 160 x 1.8
19.65
1,965.00
30
1,550 x 130 x 1.8
18.30
549.00
20
1,550 x 160 x 1.8
21.05
421.00
20
1,600 x 140 x 1.8
18.95
379,00
10
1,650 x 160 x 2.2
25.10
251.00
20
1,700 x 160 x 1.8
22.35
447.00
20
1,800 x 140 x 2.0
23-05
461.00
10
1,900 x 160 x 2.0
27.10
271.00
20
2,000 x 160 x 2.0
29.15
583.00
250
1,200 x 140 x 1.6
12.45
3,112.50
200
1,250 x 140 x 1.6
14.25
2,850.00
350
1,300 x 140 x 1.6
14.25
4,987.50
150
1,350 x 140 x 1.6
15.60
2,340.00
540
1,400 x 150 x 1.8
16.95
9,153.00
325
1,450 x 150 x 1.8
18.30
5,947.50
600
1,500 x 150 x 1.8
18.30
10,980.00
150
1,535 x 160 x 2.0
22.40
3,360.00
9. Alexandre Just was horn on 14 January 1880 in Ostrov, District of Piestany,
Czechoslovakia. He holds Czech passport number 3628/170/49 issued ?4 January
1949 by the Czech Embassy in Belgrade, valid until 24 January 1951. Just
speaks fluent German and Iungarian, good Czech, Slovak, Serbo-Croat, and a
little French.
10. During .dorld ',sar I, Just served in the .,ustro-Ilungarian Army as a first
lieutenant and, at that time., resided legally in Vienna. In 1934, he settled
in Zagreb as a businessman and later, in the same capacity, went to Belgrade.
In Zagreb, he resided at Gregorjanceva U].. 35, telephone number 23-100.
U. "Lfter ';Iorld : ar II, Just worked as special delegate and representative to
Yugoslavia for the Czech Import-Export firm Centrokomise, Na Florenci 5,
Prague II. In this capacity, he did large-scale business on a compensation
and barter basis between Yugoslavia and _Czechoslovakia and often traveled
between the two countries at the expense of his employers. .fter the
Cominform rift, Just returned to Czechoslovakia because he could no longer
transact business for his firm with the Yugoslavs. For a time he lived
with his daughter, Livia, who was studying at the University of Irague,
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until the political situation in Czechoslovakia beca:ae a menace to them.
In 1949, he sent his daughter to Vienna and shortly thereafter he went
to Switzerland, where he found employment with Sola Ltd., a financial
and commercial firm owned and managed by a certain ;seller, a Swiss citizen
and a very wealthy man tith a son in the Swiss diplomatic service.
12. A widower, Just has three daughters. The eldest daughter is married to a
Russian engineer and currently lives with her husband in the USSR. The
second daughter also married an engineer, a certain Hans Paul with whom
she is now living at Joanelligasse 3, Vienna VI, telephone [phone]. The
youngest daughter, Livia, studied in Prague until persuaded by her father
to leave for Vienna. She currently is residing with her married sister,
Mrs. Paul in Vienna.
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