REORGANIZATION OF HUNGARIAN OIL AND BAUXITE INDUSTRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R004900690011-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 14, 2016
• Document Release Date: June 15, 2001
• Sequence Number: 11
• Publication Date: June 5, 1950
• Content Type: REPORT

25X1A
25X1A
CLASSIFICATION
Approved ForRgaighbOilig
NF IT
COUNTRY Hungary/USSR
SUBJECT Reorganization of Hungarian OfIl and
Bauxite Industries
25X1A
v. .
" 0-4( "tikrr irz[b....sr% 64.011. 5 7 R004?tiappiirct or iv 0 y
:
REPORT CD NO. 14
DATE DISTR. 5 JUN 50
NO. OF PAGES 2
CONFIDENTIAL
PLACE al
ACQUIREc
DATE OF
INFO.
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
10 During the month of December 1549 representativeb of the Hungarian and USSR
Governments met in roscow to discuss the reorganization of Hunnary's oil and
bauxite industries. Negotiations ended with ccmplete agreement on ::;1 Decam-
ber 190, Early in January 1950, the Hungarian Government expedited the
ratification of this agreement and implementing decrees 'ere published as
No, 26/1950 M,T,/081/und 27/1950 M.T /Bauxit
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2, This agreement stipulates that
a) The. present Hunariaa-Soviet oil:enterprises, "Maszovolu and "Molaj", will
immediately cease operations as independent. firms and be incorporated within
the recently established "Ungarisch-Sowjetische Oel Aktiengesellschaftu
("Maszolaj") which has taken over all the, rights and privileges of these enter-
prises(for example, exemption from taxation).
The seat of "Maszolaj" is Budapest; original capital 160,000,000
(Gulden), consisting of 16 .hares each having a nominal value of 10000,000
which six are Hungarian and six Soviet-owned...
It appears that neiner party can outpote (rAajorisiorn) the oth:er, bt
according to paragraph 1, subperagraph l4vof the statutes, the General Director
of this firm il1 be chosen by the Soviets and according to paragraph 2, sub-
paragraph 14, will have unlimited control over the firm's prope7:.ty- money
legal affairs i.e. making of contracts, movable and immolTable property, earn-
ings debits etc, In addition the General Director may hire, promote and dis-
miss employees without refw.ence to the firm's directors,. This clause and the
fact that the statutes have not been submitted to a legislative authority and
have not been published make it clear that the agreement f.3 a travesty and
that the Soviet Union has de facto control over Hungary's oil industries,
The full Russian name for q!aszolaj" is " Sovyetskoye-Vengerskoye Naftyanoye
Aktaionyernoye Obshchestv 11
'This document Is hereby regraded to
CONFIDr_N-IAL !n nleordanc? with the
letter of 3 Cetr.i_.)r 1978 front the
Director (-1 :?Tk1 rtIiQCAG? to the
Archivist United Suites.
Next Review Date: 2008
STATE
ARMY
NAVY
AIR
CLASSIFICATION
NSR
FM
; No amp In
assi0x1
111
Document No.
th.:
Date: 1
LT
By:
11 JR
I
_Id
Approved For Release 2002/010 Vik-Rppri8A700.4,57R 049(0690011-5
(30P1F1DEn IAL
1117:7('
S T
Approved For Release 200 /01/03 : CIA-RDP82-00457R004900690011-5
CE:TRAL INTELLIGENCE AGENCY
-2-
CONFIDENTIAL
h) The situation of Hungarian bauxite indu3tries ib ideut:oal
that of the oil enterprises; According to dire-Ilivo No. 27/19j.0 ih-
following established Nungarian bauxite firms be abolished 1nridaai,e1?T;
1) Aluminiumerc Banya es Ipar LT. (Alumim;u17-,:T1' Bergbau- uno
Industrie Aktf,engezelischaft)
2) Victoria VegyezoLi .EUvek Chenische Werke A.O,)
3) Tapolcai BanyE, A, T. el kpoicaer Gruben
4) Zalai Bauxtbanya R,T. (Bauxitbergwerks A.G.)*
5) Magyar BauxithEnyz, RuT, (Ungarische Bauxitgruben Aktiengesell-
schaft)
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3. The aforementioned five firgs are to be incorporated within the re.::eit3y
established "Ungarisch-Scnjetische Bauxit-Aluminium Aktiengesellschaft', which
is known as "Masobor, tLe Russian name of which is "Sovyetskoye-77,,ikeye-Bosa-
25X1A Alyuminyiyevoye Aktsionyornoye Cbshchestvo",
Comment These firms are not listed in the 1944 Hungaria Comoaos-
SEC a
tONFINNitAt
Approved For Release 2002/01/03 : CIA-RDP82-00457R004900690011-5