ECONOMIC INFORMATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00415R011600100005-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 22, 2016
• Document Release Date: July 27, 2012
• Sequence Number: 5
• Publication Date: July 15, 1952
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
CLASSIFICATION SECRET/CONTROL - U.S. OFFICIALS ONLY
CURITY INTELLIGENCE AGENCY REPORT
INFORMATION REPORT
COUNTRY Y(r.goslavia
SUBJECT
PLACE
ACQUIRED
NOV 4192
CD NO.
DATE DISTR. l July 1952
NO. OF PAGES 1
NO. OF ENCLS. 1
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES WITHIN THE MEANING OF THE ESPIONAGE ACT 50
U. S. C.. 31 AND 32 AS AMENDED. ITS TRANSMISSION OR THE REVELATION
OF ITS CONTENTS IN ANY MANNER TO AN UNAUTHORIZED PERSON IS PRO-
HIBITED BY LAW. REPRODUCTION OF THIS FORM 15 PROHIBITED
THIS IS UNEVALUATED INFORMATION
.THIS DOCUMENT HAS AN ENCLOSURE ATTACHE?-
DO NOT DETACH
is a roughs une e report containing; economic
information on Yugoslavia.
CLASSIFICATION ECi T/CO~ TROL - U.S. OFFICIALS O' LY
ARMY
OltEE x
Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
O; S.OFFICIALS ONLY
SECHRITY A7
THIS IS AN ENCLOSURE TO SO OB
50X1 -HUM
- To demonstrate the chaos reining in the economic life of
and non-specialized..
Tito's Yugoslavia because of the inexpert?/direction of the
In 1946,
Communist regime, the following examples are given:
manufacturing electrical items (factory called I'NQRRISt
ro
Brothers) produced the following items: electric iq
said company (the former proprietors of which were the FUKS
switches, electric stoves and furnaces,
miscellaneous equipment
k
I- A
tradee For tl
production capacity it was considered
41 41-r-
and other articles indispensable to the population and bun
ing
l
the most important~a;o. inl its field in YUGOSLAVIA, so much so
that, in the period of nationalization, it was included in the
list of the first-grade Federal enterprises.
0t S OFrfCIA L S ONL1
SE
Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
 nrnnrYi
Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6 UM
Us S! Off 1 ALS ONLY
SECURITY JZ1FORI4 MION
Toward the end of 19147, the Noris factory was abolished. The
bakelite prepfes were transferred to the NOV LABEL factory of
eff edt on the building trade
the ISM A factory of Kranj and the remainder went to the
Pade Koncar establishment. The qualified workers who weEe
specialized in products of the NORIS factory were dismissed
because many of them did not wish to work in the RAD KONCAR
establishment which, frorh_that. -time on was known by the name
of I1SINIG SING" because of the terror brought about by the
Cornmurists. In the RADE KONKAR factory, however, a unit was not
established which would have been able to continue the NORIS
production, but the workers were sent into various laboratories
and production of the NORIS articles ceased which had a telling
",ft r 6 months, then the"Com:ununist experts" noticed the damage
they hat is, destroying a factory with an idiotic decision.,
VRAPCE in the vicinity of called "TEP" (Tvornica
Llehtricnih Proizvoda = factory of electric products) The
organization of this factory was entrusted to ItirLSOVIC, former
director of the NORIS. When the new products of this factory
ere put on the market, the entire Communist press received
orders to write praiseworthy articles proclaiming a new victory
decided to salvage what they could: therefore, the order was
given to gather all of the old machinists of the NORIS factory
so as to establish a new establishment analagous to the one they
had destroyed. Thus, in 1948, a new establishment arose in
U. S. VF J~W ONLY
-2-
Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R0l 1600100005-6
Dm 3, OFFICIALS ONLY
SECURITY Q(FORMAT101f
in the "building of socialism", naturally making no allusion to
the fact that the "TEP11 was only that which had remained of the
HORIS.
a balance sheet of this inexpert Communist Admini3tration,
establish that only the transfer of machinery to
the RADE KONCAR factory cost 2 million dinars not to speak of th,3 50X1-HUM
enormous losses occasioned because of the suspension of 1 yris
work and of the immediate scarcity on the market of the necessar:,T
industrial articles. It should be added that the TEP produces
use d
only 30 ti of what NORISnroduce#. Resides, the warehouse of
products QC INCR,I , valued at about 5 million dinars,
.S cc. feed d V k n +
was transfer to the RADE KONC P.
L actor Y.
the principal reason for the
liquidation of said NC tIS company was -AsomW-the fact that in
a- w4.,4 w-cs
1946 this company showed a balnc e of 4 million dinars,
the sane amount of the deficit shown that year by the BADE IONCA1
actory; the experts of Tito, by destroying the HURl:S, thought
that they could hide from their superiors their incapacity and igaorance
i n the financial management of the firm.
The above-arilentioned case is one of the t*pical cases in which one
is able to note how an active company can be liquidated only
to cover the mishandling and ineptitude of "director" SAFAREK,
of Franj A1AGIC, personnel director, of prof. DOLENC (aU three
sentam(;d~) and of the business manager , STERN)
(who tried and sentenced himself with his suicide), all
Communist leaders of the BADE KONCIAR factory.
.. iotlier example is reported which is about machinery redeived fro. i
ofd
eri anyy and Hungary. 'T'his case ire regard i ors icllars
13l i ch tl-p- experts of Tito tiwasted, on machinery which they allowed to
0,l. OFFICIALS ONLY
Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R0l 1600100005-6
 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
ibtU RL 1
Ii. So OFFICIALS ONLY
SECURITY UFORVRTION _
lie in disuse and deteriorate so thatf it is no longer in c: nditic n
it
to be used; Ynx rusted to such an extent that now it can only le
used as junk iron.
Ut So OFFICIALS ONLY
SECRET.
Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
 co-OrT
Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
Je So OFFICIALS . ONLY
SIC" ryrORMATtt1N
.i.br 3 and a half yrs one of Yugo slavSlarsest ammo factory, co apletely
underr-,round, has been under construction.
begun.
January of last yr, the assembly of the final machinery was
the afore:.ientioned factory was constructed at the base of the
113re;ana" Mountain near Samobor (Croatia) and specifically near tte
hich leads from Samobor to Brezice. ::fount "Bre, ana" is situated
0a S. OFFICIALS ONLY
SECRET
-6-
Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
 Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6
.. 1y~.41[1L ~
t-1
SCURRY IINFURMATION
The entire territory above -mentioned mountain, within
k
a radius of 8 km is under military jurisdiction and no one can.
,i.,_--,,roach without special permission from the military authorities.
The mentioned factory will produce mainly ammo for at1tomatiic weapons
and especially for antiaircraft defense.
.TWIF
Ibout 3,000 workers are assigned to the construction of the factory.
From the main Samebor-Brezice road there is a detour specially built
which which leads to the above-mentioned mountain.
U. S. OFFICIALS ONLY
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2012/07/27: CIA-RDP83-00415R011600100005-6