BULGARIA'S TRADE WITH THE WEST

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700130138-3
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: September 26, 2011
• Sequence Number: 138
• Publication Date: August 31, 1953
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130138-3
LANGUAGE
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY Bulgaria
Si,JJECT Economic - Foreign trade
HOW
PUWSHED Semiweekly newsletter
WHERE
PUBLISHED Vienna
DATE
PUBLISHED 25 Feb 1953
una, or irf CO,,aa i0 0. ?700?7, n ., ur.u,+nn Re 70.50, n
SOURCE Interreport-Ost.
DATE OF
INFORMATION
DATE DIST..?/ Aug 1953
Usually well informed observers of the Bulgarian economic situation pre-
dict a slight revival of foreign trade with the Western countries. They base
their predictions on the fact that certain of Bulgaria's obligations toward
other Satellites will expire d-:ring the ensuing months.
According to Ivan Daskalov, in charge of trade agreements at the Bulgarian
Ministry of Foreign Trade, Bulgaria is planning to import annually merchandise
in the amount of 200 million rubles from Western Europe during the years
1953 - 1955 and in tern to export domestic merchandise in approximately the same
amount to Western Europe. In recent months, extensive conferences were held
with British, West German, Dutch. and other West European firms during which
arrangements were made for the import of machinery, spar,, parts, vehicles, med-
ical supplies, metals, rubber, textile raw materials, chemicals, etc.
The Bulgarian economist Vladigerov, who represented his country at the
Moscow Economic Conference, submits the following additional information: Bul-
garia intends to impost annually approximately 70 million rubles worth of ma-
chinery and spare parts, vehicles, and medical supplies, and approximately 100
million rubles worth of iron, nonferrous metals, cellulose, various textile
raw materials, and synthetic and natural rubber. In turn, Bulgaria will ship
to t!L West annually about 150,000 tons of grain, 70,000 to 80,000 tons of
fruit and vegetables, 15,000 tons of tobacco, about 70 million eggs, and other
products.
Bulgaria's fruit and vegetable exports in 1938 amounted to 137,751 tons,
including 57,205 tr'ns of grapes. In 1938, egg exports amounted to 15,180 tons,
about three ti:::s the quantity presently earmarked for export to Western
Europe. In '.938, Bulgaria's grain exports amounted to 190,951 tons. These
figures indicate that the amounts planned for export to Western Europe in the
coming years are basically feasible. This, however, is subject to the condi-
tion that Bulgaria will be given permission to ship a substantial part of her
exports to the Western countries, as was th case before the war.
- 1 -
CLASSIFICATION BURIAL USE
STATE INAW NSRB
I DISTRIBUTION T~_ 11T I
ARMY AIH FBI J.1_- I._ I... __i _
Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130138-3
 Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130138-3
In recent yeare. Bulgaria's exports have been increasingly limited to the
USSR and its Satellites. As early as 1951, 93.11 percent of Bulgaria's total
exports were destined for Ea'tern Bloc count^ies and a mere 7 percent for the
West. So-called investment agreements between Bulgaria and the other Satellites
greatly curbed Bulgaria's export possibilities. Due to a merchandise credit
grant to Bulgaria, obligations for the shipment of merchandise resulted, which
gradually have been fulfilled. In 1947, the USSR granted Bulgaria an investment
credit amounting to several billion leva for the construction of the "Stalin"
Chemical Combine in Dimitrovgrad, the "Maritsa III" Thermal Power Plant, and
other new plants. In 1948, a second investment grant was signed in Moscow on
the basis of which the following plants were built: the big Karl Marks"/Soda
Plant, the "Lenin" State Metallurgical Plant, and two automobile repair shops.
On 22 April 1947, a 4-year trade agreement was signed in Sofia which pro-
vided 3,437,000,000 Czeck crowns for the delivery of Czech capital goods. These
shipments were divided as follows: 376 million crowns worth in 1947, 72C mil-
lion in 1948, 1,361,000,000 in 1949, and 972 million in 1950. Under this agree-
ment, Bulgaria received equipment for power plants, transformer stations, indus-
trial machinery, railroad cars, etc. Bulgaria in turn del'vered 2,000 tons of
tobacco, leather and hides, seeds for oil production, maize, 10,000 tons of
grain, 100 tons of rice, ore, lead concentrates, etc. The second investment
agreement with Czechoslovakia was signed on 14 July 1951. It dealt with ship-
ments of electrical equipment and industrial goods against payment in agricul-
tural products.
On 11 June 1951 an agreement was signed with Poland for the delivery of cap-
ital goods. It expires this year. This agreement provided for delivery of loco-
motives, railroad cars, rolled products, machinery, coke, etc., by Poland
against payment in ore, nonferrous metals, tot~.cco, rice, grapes, wine, etc., by
Bulgaria.
According to well-informed sources, the partial expiration of the trade
agreements will once again free a portion cf production, especially agricultural,
for export to the West. It remains co `e seen whether the USSR, which undoubt-
edly will have to be consulted before Bulgaria can increase its trade with the
West, will cease competing with Bulgarian merchandise on the Western market. The
recent practice of buying up Bulgarian merchandise at low prices and then offering
it at very low prices on the tree market kept Bulgaria's most important export
items out of the competitive field. As previously reported, the USSR dumped Bul-
garian rose oil on the market, offering it at 1,100 :ollars per kilogram in the
US, while the Bulgarians had to charge 1,400 dollars. While the Bulgarians of-
fered tobacco in New York et 2.10 dcllars per kilogram, the USSR charged 1.60
dollars for the same Bulgarian tobacco. This Soviet practice would have to be
abandoned if the speeches of Bulgarian economists expressing a desire for inten-
sified trade with the West are to have any meaning.
STAT
Declassified in Part - Sanitized Copy Approved for Release 2012/02/08: CIA-RDP80-00809A000700130138-3