RECENT DEVELOPMENTS IN THE SOVIET OIL ADMINISTRATION (SMV)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R006000360010-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: November 9, 2016
• Document Release Date: March 26, 1999
• Sequence Number: 10
• Publication Date: October 17, 1950
• Content Type: REPORT

Approved For Release 1999/09/24: CIA-RDP82-00457R006000360010-9
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Approved For Release 1999/09/24: CIA-RDP82-00457R006000360010-9
 CLASSIFICATION N cep R~ pg 25X1A
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CETRAL ase 196 4 NCE AGENCY2-00457A98R9%%
INFORMATION REPORT CD NO.
COUNTRY Austria/USSR
SUBJECT i,',ecent ;)evelopments in the
()vie t Oil Administration (Sl V )
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PLACE
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DATE OF
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t. In line with their plans to develop thIa-Matzen and-Ad"k14a -oi_lTije1_d , the Soviet
have transferred additional drill rigs and derricks from the Zistersdorf fields
and have started to move equipment from the SMV Central NVarehouse at Neusiedl a/(-j
:cjya to this area. ll) The Soviets intend to lay a; pipeline from the new Matzen
and Aderklaa wells to the nearest railway siding. the 3Y.V is now building addi-
tional barracks, sanitary facilities and a hospital at Matzen. It, is rumored
that the Soviets are planning to build similar facilities in addition to a large
!'~;arehouse at Aderklaa.
e o f the other wells in this a s wno receniiy 1 nspectieu
1.1iu:se fields believe that. the excessive water seepage and sand content of Many
,::istersdorf wells is an immediate result, of ruthlesi Soviet exploitation of these
;'fields during 19/43 and 1949.
Two USIA firms, "Vianova" A.G. and Ueberland A.G., are trying to collect a total
:s ' 13,000,000 schillings from the SLN. This sum represents losses incurred by
these firms recently when the 31:`; cancelled large coptracts for construction pro-
jects in the Zistersdorf fields.~z
1;; ,Di oratory4Drilli
,. Sri recent weeks 3MV employees have heard that exploratory drillings in the vicin-
of Lake Neusiedl have brought promising results, (3)
j,N Refining
Sometime during the latter part of the week of 1.4 August 1950, USIA-controlled
')onau uhemie A.G. received a shipment of oyrite~ which arrived in Vienna by
barge from Bulgaria. (4) A week later Donau Uhhmie delivered suffi cient cluant.it
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of sulfuric acid to the I.,oosbi erhaum, Klederi_ng, Nova-Denow and Voesendorf re-
`i.neries to enable them to start ti^!ork on a large order for a special type of
liii-grade oil which the SI;11V received some time ape from the Polish Government.
Noiu that Donau Chemie is again manufacturing sulfuric acid, the SIX refineries
All probably resume regular production by mid-September. Meanwhile, during
the week of 14 August 1950 the Shell and Vacuum Oil Company refineries abruptly
stopped requisitioning sulfuric acid from the SMV Purchasing Office. It is
possible that these refineries have been able to purchase sulfuric acid from
the Yugoslav supplier who offered this commodity to the Nova-Denow refinery
only a week ago. (14.)
in response to a recent query frog huzin, Soviet director of the SMV Purchasing;
u ffice, .31W refining,-, officials have drawn up the following; estimate of monthly
sulfuric acid requirements:
SiV Refinery
.oostbi.erbauilt
-Sov a-Denow
oesendorf
::Ledo ring
Vacuum Oil. Company
1;he 1l_
ktorneuburg
zeros
Number of Metric Tons of Sulfuric
,ci d Required Per lonth
-i tipments from the Soviet Union
`Z. Curing July 1950 the turnover at the SIN Central darehouse in Neusiedl a/d Zaya
reached a total -xf 34,670,269.70 tcliillin!-s; th:a turnover at the Lobau warehouss-,~
i, ;11e,d 2,120,521.35 sch.i.l_lings.
8. During the week of 14 August 1950'the following shipments from the USSR were de-
livered to the ShlV Central :''+arehcise in Neusiedl a/d Zaya:
14 carloads containing 104'030 kilograms of pine from Dnyeprovsk.
2 carloads containing 26,430 kilograms of pipe from Sartana.
5 carloads containing 102,420 kilograms of pipe from Lhrompik.
3 carloads contai.at.ngg 97,;4.90 kilograms of pipe from Taganrog.
1.6 cases of drilling toots weighing a total of 1,1+38 kilograms from
~;oyusprom Sxpart, Moscow.
9 The following pipe .jhi_nments from the Soviet Union were received at the JMV
Central Varehouse in Neusiedl a/d Zaya during the week of 21 August 1050:
I carloa6'containing 20,600 kilograms of pipe from Nikopol.
1 carload containing 13,500 kilograms of pipe from Sartana.
2 carloads containing a total of 61,090 kilograms of pipe from Kop.
1 carload containing 23,070 kilograms of pipe from an unknown origin in
the USSR.
aT'!C( l';`I'F: L i.'. U. t.)t F'1CIALS ONLY
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:N Scrap
10. To date, the USIA-controlled firm, Eisen- and Stahl A.G., has shipped three
cc-irloads of steel scrap collected from Sy.V installations to Czechoslovakia,
1Iunpary, and the Soviet Union, A fourth carload of SMV scrap which was con-
r;i.g;ned to USIA may have been destined for another rec.loient.
j ...IV Pure hasinlr. Office
11. During; a meeting iii Vienna on 21 August 1950, Kuzin, Soviet director of the SIN
iurc}lasing, Office, informed a group of SIV officials that b y the first of Sep-
tember 1.950 his office will be _'n a position to disburse large schill_ng pay-
rients for the purchase of sufficient amounts of equipment and raw materials to
enable SMV enterprises to meet their production norms. He then distributed
bonuses ranging from 200 to 600 schillinfs to employees who hed performed out-
stan(ding service during the first half of 1950. Lastivka, chief bookkeeper of
the Purchasing Office, received ,he highest award of 600 schillinfrs. hen the
bonuses had been distributed, several Communist employees protested Kuzin's
failure to award bonuses to more than two Party members. Once again Kuzin ex-
pressed his view t',-o t membershfn in the Communist Party does not necessarily
bring efficiency to a ,job.(5)
12. During the period from 11+ to 27 August 1)50 the SP,:",V Purchasing Office nail cash
for the following purchases:
Firm
Item Purchased
Payment in Sc}Tillings
3rixleg_g; lfontanwerke G.m.b.11.
Heavy spar
59,000.00
;;neon L,'ach and other firms
Swab rubber
31,500.00
Teu(Il.off-Varnag A.G.
Slide valves
56,000.)O
Ar)A-derke A.G.
Oxygen
2,000.00
I1 e r,ctiviti.es
1,3. Despite Kuzin's recognition )f competent non-Communist employees,the KPOe has
not relaxed its current effo^ts to install Communists in jobs now helH by non-
party members. For this reason many SI'V employees believe that a lace-scale
purge in Soviet-controlled industry may be imminent.
Transfer of SIN Offices in Vienna
111. The 3 V Central Laboratory anc Transport Section which were formerly locatsd in
the A. Porr A.G. building on ('~treidemarkt, Vienna I, have been moved to V`_enna
IV, LAoellwaldplatz. S",'V employees have heard recently that the Porr building
will. be used to house 'ov, , eta e Army hospital.
25X1A ILLEGIB
25X1A (1) -Comment:
Neusiedl, Muehlberg a
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ILLEGIB
,CIun/,~fd~ii Ui.
the 3MV had cancelled several ILLEGIB
struction firms
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-Comment: The &_'V policy -of granting,, efficiency awards was introduced
by Kasyura, former director of the SPvV Purchasing Office. It is interesting
L o note that Ku.zin, a member of the Politburo in Vienna, has departed from
bis predecessor's policy of recognizing the achievements only of card-bearinr?
Communists .
Firms marked by an asterisk are USIA-controlled.
C Cil:'~1i
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