HUNGARY/RUMANIHUNGARIAN REPARATIONS TO USSR, YUGOSLAVIA, AND CZECHOSLOVAKIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R001300130006-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 22, 2016
• Document Release Date: January 26, 2011
• Sequence Number: 6
• Publication Date: February 2, 1948
• Content Type: REPORT

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3 -174 85
rn'VIDENTIAL
.~
vim' . ..;.
A -W
OFFlCIADS ONLY
CENTRAL INTELLIGENCE GROUP
? ELLIGE CE REPORT
COUNTRY gary/fnmania./Yugoslwvia/Czechooloiia
WE
tifitl. gee tex'*
SUBJECT 6unpari n Reparations to USSR, Yugoslavia,
a~ Czechoslovakia
The f allowing
DI T.
PAGES
Februe ry 1948
shows details of Ew gary' a reparations 1iab?,-,>
3.ities paid during 1945/1946. and those to be delivered during 1947 and subsea
ant yeer$, together with Info rmaticn_On future negotiations,
"the Armistice Agreement fixed 20 January 1945 as the date on which Reparations,
?ay tents to the USSR, Yugoslavia, a+ua C;c hoz1o is were to commence. Rowsvt' ,t>,
actual reparations consignments could be effectuated only in June 1945, when
fighting had ceased and order was restored?
2_. At first the practice) duties in connection with the transactions were carrier',-
out Jointly by the Interim Armistice Commission, the Reparations Cossmtieexn; s.: al
the II:.? fir;-.r. Economic Office of the SZEB (Allied Control Commission).
owing to the unsatisfactory activity of these offices, the Prime Minister Bata
liwhrsi t'.?+ Rep rr,tio Ihiresu by Decree go. 1500/1946. The purpose of this
Btareaa 3s to carry o .t all business in connection with reparations or other
obligations of an economic natave. The auxiliary ornin is the Ipex lvek l 4VI.-
'fltal products 9.8
products of metal industry
ship repairs
V. agria tune 3c5
vegetable products
animals
VI sole leather 0,1
VII. petroleum 0.3
VIII. sundry -
bauxite
retrosani coal mine
21.8
3
7.0
401
3.4
7.5
0,5
03
2.1
1.6
0.6
2.2
0.1
139
0.8
1.4
2.2
003
0.1
2.4
1,3
2.6
2,6
0.2
Opt
006
0.4
0,1
0.5
0.1
3.4
1.7
1.8
3.5
0.1
0.1
0.5
0,2
0.3
0.5
3.1
2.3
1.7
4.0
0.9
2.7
2.3
1.4
3.7
1.0
0.4.
m
0.3
0,3
pb
~.5
1.1
2.3
3;4
Oal
2.4
0.7
1.6
24,3
?-.l
0.4
0.7
1.1
0.1
0.5
0,5
0.2,
0.7
3.7
0.1
3.6
3.7
0,`
0.1
0.1
0.2
3.5
2L.
'2
3.5
--
-
21.8
10.0
13.4
23.
1.7
0.4
hccording to data of Reparations Bureau, 20th February 1947.. Tha .s4;^urss may not be considered as final,
CONFIDENTIAL&
CGNG1,
U,, L. (FFICI I.L GN2 -a
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r racionaoaid to the U LH i?
 clel"FP L INT ;LLItTE:rcE GROUP 50X1-HUM
r t axae~ to Yp o A There being no Agreement, F7repAratiranz liabii.i-
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::ills to YW.10S1a-ia neid in 1945 azd at the beginning of 1946, worn In the
?m of e.d nce consign eats. Adding the total of the advance consignments to
r:le final estimate for 1946, our liabilities a.ccord.l to groups of articles
..= re R Z follows:
(4a,,?ou4)s of artioies Liabilities for 1946 ace. to
u .. ya ;hixeea for equipment 1,?20.1
electrotechni.c 197.0
telephone equipment 261,0
p_hine tools 189:0
machines for the rhemice1 industry 183.:'
machines for the industry 14~0
cranes 6.0
a,rlcu1z=vral machines 520.4
ft;! equipment 206.0
pair. ?43~ 7
11 Railway equipment
transporting eouinment
signalling eouipment
Ships, floating cranes
Semi-finished vroductionca of metal
710.0
36.0
Agri cul tore
ve ,table products 495.2
Am %ara 1, s 59.6
advance consignments 12.2
11-1 Sole leather
146.0
656.1
567 e 0
T11. Petroleum 3784
as .. rep
consign,. 823,? 2070.8 2892 . ~i
4156 .6, 1462.1
ancc
1cul., '?'6fi
torts xkn.
ante et 2 ?
TOTAL 83.5.9
2,586.4
4,288,1 52`.4.0 7300,0 1876.0
CONFIDENTIAL; ~-, CV1BOL
J.S. OFFICIALS ONLY
financial limit
1. Sundry
ccoal, colts 503.7
miscellaneous - 6.0
affective dollars 76,3
8, &-20I 47 Total 1946
7,000.0
A detailed account from the Reparation,,; Bureau not being P.Tailable r the round
c.s w the following table indicate to what extent Hungary fulfilled her
liabilities to Yu,asl~avia in 1946. A remarkable item in that of the effective
dollar notes, which, ifa a rroposition dated 31 August 1946 and addressed to the
Surireme :conomic Council, the Bureau offered as reparations at a rote: somewhat
abaTe the usual, in order to reduce Industrial consignments. The riinietr 50X1-HUM
of Firiaace and the National Bank of fiuregn ry took steps to prevent such arrange-
o:zents in the future, as this would not only reduce reserve of foreign cur'50X1-HUM
rency and, through this, the volume of0inm_ ort for convertible foreign DUA-1-huivi
currency, but would cause other countries to demand effective foreign currency
regularly as tart of 0 renare.tiona liabilities. 50X1-HUM
(1u 1000 dollars)
Rer. 20/1/46-1/8/4-6; Liabilities for Arrears
1200.0 1200, 0 1360,4 160.4
716.0 7161.0 716.0
12.2 301.3 31.`-.5 567.0
301.3 301.'3 554.8 283.5
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 U? S. OFFICIALS ONLY,.,,,,,.,T,,...._-._ F_
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CF,,I'TRAL INTELLIGENCE GROUP
ll e Re fans to Cie hosl~, ff. Until the Agreement was concluded on 6 Aril 10.146,
Czechoslovakip received advance consignments from Hungary. as did Yugoslavia.
In connection with these consiaents, the Ministries of Industry and Public
Supply drew up a plan according to which a part of the advance consignments to
Czechoslovakia (approximately 50) was to be taken into a Trade Agreement -- w
to enable_ mport, on. a barter basis ind; spensab?e Industrial and ag50X1-HUM
cultural implements. The plan, which would have meant the more equal dial--"--
tion of 0 reparations liabilities, and, taking into consideration that 50X1-H U M
articles would have been paid for on the basis of the world market dollar rate
of 1938, a reduction of our reparations expenses. except for barter agreement,
did not succeed. The following gives the details, including the value of the
advance consignments, of = 2,95.5.4 thousand dollars liability as fixed in tai
Agreement of .:6. April 1946. Opposite =liability as fixed by the Agreemr)ut,
in a separate column, Is shown the Reparrtioxr,ws Bureau's estimate of 2,180.5
thousand dollars for 1946, which the Bureau laid before the Czech delegation
shortly after the acceptance by the Russian eight year progressive transport
concessions and on the acceptance of which, owing to the passivity Af the
Czech government, negotiations are still In progress. 50X1-HUM
Groups of Articles
Liabilities as Liabilities as
per Agreement per 8 year plan
y. , I_ 7(500 dolls,ra
1. Machines for eouipment 183.3
Public vehicles 57.0
Machines for mining & building 52.7
industry
Machined for electric industry 25.8
Pumps 7.7
Instruments, fine technical. 40.1
II. Railway eouipment 310.? 23.9
Bridges
Rolling stock
III. Ships* floating cranes
IV. Semi-finished metal products
V. Agriculture
VI. Sole Leather
VII. Petroleum
VIII. Sundily
building material
furniture
miscellaneous
bauxite
expenses (e:'fective)
advance consignments
20.0
3.9
166.9 61.5
239.2 210.7
854.4 452.0
344,0 344.0
856.9 1056.8
513.2 134,1
40.5 37.7 50X1-HUM
53.2 80.0
2E>0.0 40.0
500.0
2.955.4
2,180.5
12. Below, there being no detailed account available, a summary of
F7~Ttf#~+~AMA ww.wswwL-
1A aA w
in
forint and those made after are indicated in separatevamounts band acpear asLVe.~
mast the RungArian proposition of 2,180.5 thousand dollars liability, as
the actual consignments were carried out taking this into account.
As in the case of Yugoslavia. Czechoslovakia also received 500,000 dollars In
bank notes in order to mitigate= Industrial liabilities. The nosition of 50X1-HUM
reparations fulfilled is as follows;
CONFIDENTIAL
CONTROL
U. S. OFFICIALS O1?LY
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 Sanitized Copy Approved for Release 2011/01/26: CIA-RDP82-00457R001300130006-4
U ... S , OFYI OIALS ONLY
CENTRAL INTEL+ LT1I(ENCE GROUP
-7-
.
. tlk;leu Ren> 20/1/46 1/e/46-
Liabilities for Arrears
1/8/46 20/1/47 Total 1946
cone
J63.1 5
500
0
est. teal >.. .....
591^8 1`413.1 2004.9 2,955,4 175.6
2a 5 million dollars due in 1948, in such a
1=ray as to grant Hungary-, trithin the bounds of the Russian Hungarian Trade
Agreement now being pr`pared, a goods loan for one year to the value o:'
five million dollars in consignments of coke, iron ore,and other basic50X1-HUM
v4sterials.11
5 to 6.5 million present doll
o rs
a
Divided into groups of articles our liabilities are as follows;
53313 966 ,
268.3 466.,7 735.0
1II, x ~i , it u ,_. stZ 50X1-HUM
^' t c a t USSR, According to the Agree.t,ent
for 3947 are consignments to the value of 23 mill-tor dollars. Of this sum six
million dollars were deducted from item IT "Semi-finished mst,al products? as the
value of Petrosani mine shares, so that actually =liabilities have been re-
duced to approximately 17 m111ion d 11
50X1-HUM
Reparations in
r~ J,I,i R do s ~
'at l in
Dismantled articles
Industrial articles to be manufactured 11:.8
?'etroleum, bauxite, sole leather
~