REQUIRMENTS OF METALIMPEX

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R008300270008-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: November 16, 2016
• Document Release Date: March 13, 2000
• Sequence Number: 8
• Publication Date: August 27, 1951
• Content Type: REPORT

,~,,pper~ coed For Release 2000/05/ : CIA-RDP82-004.578008300270008-7
INTE CtASSIRCATIC)N ~.. WDSHMA 25X1 A
CENTRAL I1ELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY Svritzerl~a_n'/Ilunc azy
SUBJI CT 2Lq7a.rc:aents of :.'_etalimpex
PLACE
ACQUIRED
25X1X
DATE OF 25X1 A
INFO.
DO NOT CIRCULATE
REPORT NO.
CD NO.
DATE DISTR. 27 Au`,ust 1951
INTO. CF' PACES 3
NC. OF ENCLSS
.tSTEO BELOW?
SUPPLEMENT T"
REPORT NO.
1,, Director General .'intolilc, fnu, of 'Ietalinpex, Budapest, and his deputy
Jr, Kallos, #riu, acre due to leave Paris for Brussels on 22 June 19.15]. on
their tour of .'rcestern Europe a The two Hungarian envoys have. already visited
Austria, St-ri.tzerlaad and Ital.;:-,, spending appro::ir. .tel y a sock in each.
After Brussels they arc going on to Snodon and than ..estcrn Ccrmanyo
2m In Paris the Ilan ;arians volunteered the f ollcu g information concerning
the objects of their tour, and the results which they have attained to date.
3. Before leaving Budapest they zero given a :eneral directive, summarizing
their tasks as follows:
a,. the consolidation of established sources of supply of essential racy
materials
practice., which is in fact forbidden, is also followed by t Czechs
b. the develor ne nt of new sources of supply
c. the procurement of certain priority raw material requirements O
So far as the procurement of essential raw materials is concerrd, Ietalimpox
obtains 50 percent of its rem-tI.rements under trade agreements with the Eastern
bloc o The rem. ininr 50 percent it tries in the first place to obtain from
the '.lest. TO the extent to thick it fails in doing this (and this is very
considerable) It is obliged to go back to the Eastern bloc 0 Laborious
negotiations follow, as the ""astern suppliers arc hard bargainers and make
all manner of difficulties in all cases where inquiries are made of -them
over and above the 5O percent covered by the trade a} reements..
To assist in the procurement of materials from the ;lest, the Hungarians
have adopted the practice of setting aside from their am industrial produc-
tion small quantities of strategic materials, such as oil casin.:s, w ich
t zoy use for bargaining purposes with potential Jestcrn suppliers, including
UBIA in vierma which, because of its independent status as compared with
other SowPict-dominatcd agencies, is regarded as a 'lestern supplier. This
CLASSIPICA ON
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 Approved For Release 2000/05/22: 061tF r ,,300270008-7
SECRET/Oo1 TROL a- 'U.,
GENTIIAL INTELLIGENCE AGENCY
25X1A
6, On their present tour Antolik and Kallos have been trying to obtain the
following urgent requirements, listed in their order of priority:
ad copper and all materials containing coppers, particularly brass and bronze
ba lead
c, nickel,, cadmium, cobalt and bismuth
d, specialized steel sheets, including:
(i)
(2)
transformer and dynamo sheets, In this case the Hungarians are
bound to look for their entire requirements in the ;lest, as they
do not obtain the 50 percent under their eastern trade agreements,
chrome nickel sheets., This is a very spacial requirement, and
special banking arrangements have been made to pay for the sheets
should the Hungarians be able to procure them. From a remark made
by Kalloss, it seems that in this case the Hungarians may not be
guying for tlaerasclves.,
e. tin pla ,e
all ferro-alloys (ferro-tungsten, ferro-molybdenum, ferro-?chrome,, etc.,).,
The Hungarians are particularly interested in these, but here again
they are not buying for themselves,
g, steel scrap.,
7, The Iiungarians are not in the market for either zinc or tins, and they have
only a secondary interest in aluminum.,
8, Antolik and Kallos summarized the results of their tour to date as follavrs:
Austria: moderate
/wdtzerland: moderate
Italy: entirely negative
France: negative, except for the one important deal mentioned
in paragraph 11 below.
9. The following deals mere concluded in Austria,, or while the Hungarian envoys
were in Vienna:
a, the purchase of an unspecified amount of bismuth, of English origin or
being refined in England, from an unnamed Australian firmthich has an
agency in Vienna. The lat-W~cr is in close touch with USIA,, to which it
recently supplied an unspoc:iflcd quantity of tin.
b., the purchase of 300 tons of copper, which was part of a parcel of 500
tons allocated by the A;aericans to an unspecified lest Austrian factory,
co the purchase of 500 tons of lead from Spain, which safely reached Antwerp,
where it was handed over to the Metalimpex forwarding agrnts, wile
Antolik and Kallos were in Vienna.
10,, The following deal was concluded in Switzerland:
The purchase of a "considerable quantity" of Southern Itiodesian copper,
following the successful bribing of some Jewish directors of the copper compares.,
The first shipment of 500 tons has already left Urica for Antimrp and Rotterdam.
The copper is probably being exported under a fictitious export license,
describing it as "copper products".**
SE ?'- U.S, O ! CT-1W ONLY
Approved For Release 2000/05/22 : CIA-RDP82-00457R008300270008-7
 Approved For Release 2000/05/22.: CIA-RDP82-00457R008300270008-7
, ONLY
5EC!T/C0NTi CL - U. S. oT` cI
A
nip
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25X1A
11. Negotiations for the following deal Wrre cc inonced in Geneva,, Switzerland,
and concluded in France:
The purchase of 3,20 tons of spot load of Bolivia. The contract was made
betmeon Lretalimpe.c and, it is believed,, a firm called ",ctallo,, which is a
subsidiary of the Banco M1nero del Bolivia, The purchase price was )550
per ton, and the vendors put up a performance bond of ,50,OOO. A letter
of credit is being opened directly or indirectly by the Hungarian National
Bank with the Banco Minero del Bolivia. The lead virill be shipped to
Antwerp, and deliveries are to be completed by November 1%1Q
12, In France the Hungarians bouO-it 100 tons of Yugoslav meszice lead from
tetalimport Trust of Zurich and Paris. The purchase price is ~62h per ton,
and the lead will be delivered f,o.b, He reshalmno The letter of credit,
which is being opened with a Swiss bank, is payable only when the bank has
received notification from the forwarding agents, Schenker & Co,,, that the
instructions concerning delivery were carried out 72 hours previously, The
mason for this condition is to Five the Hungarians time to inspect the
lead on the Hungarian frontier,, after it has been forwarded by Schenker
from Vienna, before payment,
13, To date all attempts by the Hungarian envoys to procure nickel, cadmium and
cobalt have failed,
25X1A
# Comments The requirements mentioned in sub-paragraphs do (2) and
f?, were the most important items of a special list drawn up by Antolik and
Kallbs for submission by a Hungarian purchasing aC.ent in Switzerland to the
Swedish Fast ,lest trader Friedrich von Lieissncr of the European Trading
Company, Stoclddolmo It has been sug; ested that a degree of cooperation
between the Hungarians and. Czechs in the procurement of these particular
requircmcnts is unusual in a field Where normally they seem to compote, It
is perhaps of significance that Antolik and Kallos have note revealed that
the Hungarians are not trying to procure these particular requirements for
2 elves, but presumably for one of their Eastern allies.
Comment: Antolik and Kallos signed contracts in Switzerland, in
conjunction with the Czechs, for 6,000 tons of Chilean copper. This deal
25X1A is presumabl in addition to the one reported above, It is described more
~yA in 25X1 A
Comment: This list was previously mentioned in
SEC'_ZET/C0NTPOL - U.S. OFFICIAl i ONLY
Approved For Release 2000/05/22 : CIA-RDP82-00457R008300270008-7