SOVIET UNION FACES MAJOR TURNING POINT

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August 2, 1982
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Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 ARTICLE AP?:'?ED ON PAGE I -q CHEMICAL & ENGINEERING 2 AUGUST 1982 Soviet Union paces major turning pant U.S.S.R. is beset by critical problems, pressures for major changes in political, economic, industrial, military, and social spheres The Soviet Union is now at a major turning point in its history, compa- rable to the post-Lenin period in the 1920s and the post-Stalin period in the 1950s. Indeed, it faces critical problems and choices, and pressures for major changes, in almost every sphere-political, economic, indus- trial, military, energy, demographic, technological, intellectual, and social -according to a group of specialists who are preparing a study on trends and developments that will shape Soviet policies over the next decade. The study, organized by George- town University's Center for Stra- tegic & International Studies (CSIS) and chaired by Robert Byrnes of Indiana University, brings together experts in Soviet and East European studies from six private institutes and 20 universities. Thirty-four par- ticipants are from the U.S. and one from the U.K. The study covers seven disciplines and is aiming for publication of its findings by next spring. Members of the group out- lined their conclusions to date at two public sessions in Washington, D.C., last month and in several in- terviews with C&EN. In the political arena, notes Sev- eryn Bialer of Columbia University, the U.S.S.R. in the next few years must replace not only President Leonid Brezhnev, but a whole core leadership group of a similar ad- vanced age who have worked to- gether for a long time. A whole agenda of problems and issues is left unresolved by the Brezhnev group, many qualitatively different from any faced in the past. In the already ongoing struggle for the succession, points out George Breslauer of the University of Cali- fornia, Berkeley, there will be pres- sure for choice of a strong leader, such as former KGB head Yuri Andropov, to get the country-espe- cially the economy-moving again, sense of despair and lack of purpose, perhaps with bold proposals for of nothing to believe in or hope for change. Many officials, however, may in their society-a dramatic change prefer a figure threatening fewer from the common Soviet belief that changes and more amenable to col- life in the U.S.S.R. continually is lective leadership, such as Politburo progressing toward a glorious future. member Konstantin Chernenko. Making things even more difficult Soviet economic and industrial are problems in the demographic problems thus may become central sphere. Population growth has slowed issues in the succession struggle. One greatly, leading to labor shortages. area of continuing crisis is agricul- Moreover, the dominant ethnic Rus- ture and its accompanying serious sians have a lower birth rate and food shortages (aggravated by four probably will constitute less than consecutive years of poor harvests). half the Soviet population by the The Soviet economy in general year 2000. Meanwhile, Moslem Cen- has Bowe greatly from its once high tral Asian groups-who are not well annual growth res onto b%m located or well qualified to supply gross national pro uc , points out industrial and military manpower- Male . GINP grew on o in IgFr- make up a growing proportion of Industrial output rose just 2o in the population (15 to 20% now) and and 2.91/c.. in 1980, compared to show increasing ethnic nationalism. an average of 6.6% a year in -bb, As if this were not enough, the o in io in 1971 -To, decline of the Soviet Union's East n o in 1976-80, according to European "empire" will create many Central Intelligence Agency i ures. problems for the U.S.S.R. in the emica production has shown a 1980s, according to Bialer and to similar decline, CIA finds, risin on v Andrzej Korbonski of the University o in 198com are to a five- of California, Los Angeles. East Eu- year an goal or 5.5 to 6o a year in rope has changed from an economic by contrast, chemical out- and military asset to an increasing put rose 1211b a year in 1961-65 8.9% economic burden to the Soviets, and in 1966-iU, 5. o in 1971751' and also will become a military burden, 3. o in 1976-80. Bialer believes. Furthermore, most s e economy stagnates, living standards are declining. Soviet au- thorities thus are endangering one of their major sources of mass sup- port and legitimacy-their ability to deliver a rising standard of living. Furthermore, prospects have de- clined for social mobility (rising in the socioeconomic system), formerly a relatively easy matter. Soviet leaders may be less able to cope with this challenge because of a progressive weakening of social control in Soviet society. There is a "decline in civic morale," notes Gail Lapidus of the University of Cali- fornia, Berkeley-a decline in opti- mism, and cynicism about the abil- ity of leaders to deliver on their promises. Social disintegration is spreading-as expressed in acceler- ating incidences of alcoholism, ab- senteeism from work, crime, black marketeering, family breakdowns, and corruption. And, explains Sidney Monas of the University of Texas, several Soviet writers and other in- tellectuals express an increasing Soviet industrial, chemical growth has slowed a Preliminary figures. b For four months, based on official Soviet statistics. Note: All figures except for 1982 are based on Central Intelligence Agency estimates. giving lower results than official Soviet statistics because of postulated upward bias in So- viet figures, Sources: Central Intelligence Agency, U.S. Department of Commerce Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 of East Europe's leaders belong to the Brezhnev generation, and there will be several succession crises in the next few years. The Soviets will try to limit the Polish damage and prevent similar outbreaks elsewhere by tightening controls, Korbonski believes. But it will be difficult since conditions sim- ilar to Poland's exist in other East European countries. All are suffer- ing declining rates of growth, agri- cultural production problems, and have huge hard currency debts. A basic feature of current Soviet economic difficulties, Bialer points out, is that in the past the U.S.S.R. possessed "an economy of mobiliza- tion," relying on massive inputs of capital, labor, resources, and land to increase production. Now this is no longer possible, and the Soviets must switch from an economy of exten- sive development to one of inten- sive development-focusing, for instance, on diffusion of technology and increases in productivity. They are totally unprepared to do this, he says. Indeed, productivity has been declining for several years. A central result of slower Soviet economic growth, explains economist Robert Campbell of Indiana Univer- sity, is creation of a conflict over allocation of the more limited re- sources among three claimants-con- sumer consumption, industrial in- vestment, and military development. From the 1950s until recent years, the Soviets were able to maintain significant growth in all three areas. But now they have to choose which to cut back-guns or butter. So far, at least, guns have kept top priority, with military spending continuing its historical rate of a 4% annual increase-absorbing 14 to 16% of all economic output. Invest- ment and consumer living standards have been sacrificed. However, Campbell points out, there are tremendous industrial in- vestment needs-both for devel- opment of new energy and other re- sources in Siberia, and for dealing with aging industrial plants, out- moded technology, energy-wasting practices, inadequate infrastructure, and transportation and construction bottlenecks. Of investment resources, 16% already is going to development of energy resources, especially for gas development in Siberia, and this will rise to 21% by 1985. Moreover, Bialer adds, there is a new military situation, unprece- dented during Soviet transfers of power: The U.S.S.R. has achieved strategic parity with the U.S. and military superiority in its own re- gion. Therefore, in picking new lead- ership, there could be for the first time discussion of the priority for military spending, with the possibil- ity of cutbacks to release money for consumer needs and industrial invest- ment. Imported technology and equip- ment have contributed heavily to Soviet industrial development-in- cluding the high-priority chemical industry-as shown in a study by the U.S. Census Bureau (C&EN, July 19, page 8). Soviet leaders express concern that reliance on foreign technology creates strong depen- dence on the West. They are there- fore putting renewed emphasis on their own R&D. However, technology innovation has been a weak link in Soviet in- dustrial development. The system lacks incentives for application of research findings to industrial pro- duction; indeed it fosters resistance to innovation at the plant level. Therefore, it appears that the Sovi- ets will continue to import western technology and equipment, despite growing hard currency restraints. How will the Soviets go about solv- ing all their problems? Bialer and Lapidus think the soviets may apply more authoritarian social controls. But they rule out any return to the days of Stalinist mass terror. In the economic arena, it is not clear what they will do. But Bialer and Campbell suggest what they need to do to overcome their prob- lems: not tinker with the economy, but change the whole system; abol- ish rigid central planning and let prices establish their own levels on the basis of costs; allow individual managerial initiative; and apply managerial and worker incentives. These steps have not been taken until now because they would mean a loss of political control. So Bialer doubts they'll be done. After all, he points out, "no government in -the world makes decisions on the basis of economic logic." The U.S., too, bases economic policy more on poli- tics than economics. Richard Seltzer, Washington I Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 ARTICLE APPEARED CHEMICAL & ENGINEERING NEWS ON PAGE 3J _ 14 JUNE 1982 facts & Figures for the chemical industry A year ago, the U.S. chemical industry appeared ready to shift into high gear. Output had labored upward to regain just about all the ground lost during the recession of 1980, and industry executives generally were confident that it soon would be climbing to new highs. Optimistic forecasts were widespread. The recession, though painful, also seemed to be happily brief. Prospects were still clouded, to be sure. Demand remained weak in many key markets for chemicals, such as automobiles, home building, and appliances, as continuing high interest rates dampened consumer purchases. Export markets, too, were soft, reflecting a worldwide economic slump and the rising cost of U.S.-made products. Nevertheless, at mid- 1981 the consensus was that the year as a whole would shape up markedly better than 1980 and that 1982 would bring some further growth. As it turned out, however, from midyear on it has been all down hill. The data spread across the following pages of Facts & Figures, C&EN's annual statistical review of the chemical industry, clearly show that 1981 proved to be little, if any, better than 1980. Moreover, as the 1982 edition of Facts & Figures goes to press, it is still by no means clear when the current business slump will bottom out. Facts & Figures contains data gathered together from a broad assortment of sources, including government agencies, trade associations, international organizations, and the companies themselves that make up the multifaceted chemical industry. These data have been treated by the C&EN staff, in many cases, to develop analytical measures and comparisons in order to add perspective to the recent performance of the chemical in- dustry. In 1981, economic growth continued to decelerate in Eastern Europe as a whole, as it has since 1977, generally falling short even of the lower targets set under current five-year plans. Industrial output for the U.S.S.R. and its six East European allies was up just 2% (the target was 4%). Bulgaria, East Germany, and Hungary increased production more than in 1980, but the area's average was lowered especially by Poland's chaotic economy, where production was down 13%. Excluding Poland, area pro- duction was up 3%. The chemical and rubber industries performed strongest in Bulgaria (up 11%) and the Soviet Union (up 5%), where both were exactly on target. Chemical production in Eastern Europe speeded up in 1980 Millions of metric tons 1971 72 73 74 75 76 77 78 79 80 a As N, P,O,, and K2O. b 100% H2SO4. c Nitrogen content. d Including resins for man-made fibers in U.S.S.R. Note: Data for U.S.S.R., Bulgaria, Czechoslo- vakia, East Germany, Hungary, Poland, and Romania. Source: Central Intelligence Agency MAN-MADE FIBERS: Results mixed in 1981 change Production, millions of lb 19810 1980 1979 1978 1980-81 NONCELLULOSIC FIBERSb Bulgaria 117 110 106 102 6% Czechoslovakia 183 168 159 163 9 East Germany 330 306 292 281 8 Hungary 48 39 40 41 23 Poland 262 348 338 335 -25 Romania 320 300 309 287 7 U.S.S.R. 1345 1213 1049 1047 11 TOTAL 2605 2484 2293 2256 5% CELLULOSIC FIBERS Bulgaria 86 80 73 68 8% Czechoslovakia 116 121 128 156 -4 East Germany 373 372 364 360 0 Hungary 17 18 19 20 -6 Poland 141 190 185 206 -26 Romania 174 140 143 138 24 U.S.S.R. 1475 1433 1400 1400 3 TOTAL 2382 2354 2312 2348 1% a Preliminary figures. b Excluding olefins and textile glass. Source: Textile Economics Bureau 1CONTIN7 _- V Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 PRODUCTION GROWTH: Slowdown persists % annual change in gross output 1981 1980 1979 1978 1977 U.S.S.R. and East Europe All industry Bulgaria All industry Chemicals and rubber Czechoslovakia 5.6 11.1 4.0 11.1 5.4 9.1 6.9 10.0 6.8 12.4 All industry 2.0 3.3 3.7 5.0 5.5 Chemicals and rubber 0.1 4.8 3.3 na na East Germany All industrya 5.1 4.7 4.8 3.7 5.4 Chemicals and rubber na 3.8 4.0 6.0 4.3 Hungary All industry 2.3 -2.1 3.0 4.9 6.6 Chemicals and rubber 2.0 -2.1 6.1 10.7 6.9 Poland All industry - 12.6b 0.0 2.7 4.9 6.9 Chemicals and rubber na 0.4 2.3 3.9 4.4 Romania All industry 2.6 6.1 8.0 9.6 12.5 Chemicals and rubber 4.0 6.8 1.4 10.6 13.9 U.S.S.R. All industryc 3.4 3.6 3.4 4.8 5.7 Chemicals and rubberc 5.0 5.6 2.3 6.0 6.5 All industryd na 2.9e 3.0 3.5 4.0 Chemicals and rubberd na 5.2e 0.2 3.6 5.2 a Industrial commodity production. b Sales at current prices. c Figures based on official Soviet statistics. d Figures based on Central Intelligence Agency estimates, giving lower results because of postulated upward bias in official figures. a Preliminary figure. na - not available. Sources: United Nations Economic Commission for Europe, based on official national statistics, Central Intelligence Agency AGRICULTURAL CHEMICALS: Output off in Poland, Czechoslovakia, Bulgaria Thousands of metric tons 1981 1980 1979 1978 1977 Bulgaria Fertilizer supply' 733b 830 820 738 742 Pesticide supply na 40.0 34.8 35.3 26.3 Czechoslovakia Fertilizer supplya 1,700 1,730 1,745 1,748 1 633 East Germany , Fertilizer supply' na 1,637 1,713 1,670 1,670 Pesticide supply na 27.0 26.7 25.3 24 5 Hungary . Fertilizer supplya na 1,399 1,502 1,539 1 511 Poland , Fertilizer supplya 3,490b 3,635 3,567 3,606 3,586 Pesticide supply na na 44.7 49.8 57.1 Romania Fertilizer supplya U.S.S.R. 1,600 1,185 1,431 1,480 Fertilizer supplya 19,169b 18,763 17,365 18,420 18,034 Pesticide supply na 512 na na na a Nutrient content. b Estimated. na = not available. Sources: United Nations Economic Commission for Europe, based on official national statistics. Department of Agriculture Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 3 SHIPMENTS: Petroleum sets the pace but growth in chemicals is a bit above average Average annual change S Millions (Canadian) All manufacturing $15,691.3 $13,913.2 $12,520.7 $10,743.7 $9070.6 $8190.4 $7371.6 $6871.2 $5563.1 $4687.2 $4189.5 12.7% 14.1% Chemicals and chemical products 1,056.7 929.7 791.9 663.3 535.6 475.3 425.6 383.9 291.9 246.2 231.8 13.7 16.4 Petroleum and coal products 1,597.7 1,206.7 1,003.0 837.9 711.0 576.8 496.1 432.1 256.1 203.4 176.2 32.4 24.5 Rubber and plastics products 370.7 334.7 300.3 250.1 211.0 192.7 162.9 - 152.8 131.4 109.7 97.0 10.8 14.2 Paper and allied products 1,265.4 1,185.5 1,032.0 839.5 744.8 685.7 594.2 639.7 439.2 367.8 333.4 6.7 14.2 PRICES: Increases for industrial chemicals are greater than for industrial products as a whole All manufacturing industries 272.2 247.2 217.8 190. 4 174.3 161.6 153.7 138.1 116.1 10.1% 11.0% Chemicals and chemical products 286.2 251.6 214.8 189. 3 175.9 167.2 160.3 137.1 106.5 13.8 11.4 Industrial chemicals-inorganic 313.9 275.3 234.1 204. 1 188.4 179.7 169.5 133.5 107.7 14.0 11.8 Acetylene, compressed 266.3 232.9 213.2 191. 2 170.7 163.7 150.6 116.2 102.9 14.3 9.9 Caustic soda 383.8 281.0 240.1 221. 4 210.7 195.7 169.5 120.2 107.0 36.6 14.4 Chlorine 274.8 248.4 207.9 189. 2 180.5 163.3 144.4 114.1 104.3 10.6 10.9 Oxygen, gas and liquid 215.6 202.4 191.8 174. 6 156.8 152.1 136.0 121.2 108.3 6.5 7.2 industrial chemicals-organic 410.2 354.7 289.0 249. 8 228.1 214.2 201.2 170.0 107.8 15.6 13.9 Plastics and synthetic resins 294.7 274.4 239.7 206. 4 193.3 187.4 181.6 156.0 104.2 7.4 9.4 Alkyd 196.5 176.9 158.4 137. 5 129.4 131.4 135.1 134.8 109.4 11.1 8.4 Phenol formaldehyde 337.6 332.8 300.9 233. 6 232.1 235.6 240.9 214.1 111.4 1.4 7.5 Polyethylene 326.9 315.3 268.9 223. 2 220.3 221.6 213.2 166.3 103.2 3.7 8.1 Fertilizers, mixed 290.5 280.3 229.1 191. 0 180.2 176.9 204.0 167.5 117.2 3.6 10.4 Drugs 189.7 169.5 153.1 140. 4 131.4 127.0 121.1 109.9 103.5 11.9 8.3 Paint and varnish 280.3 239.8 202.3 183. 0 172.8 161.9 153.9 131.9 108.2 16.9 11.6 Pigments and dry colors 304.4 260.0 219.6 189. 7 175.3 164.9 153.4 136.0 103.7 17.1 13.1 Soaps and cleansing compounds 209.7 189.1 169.5 151. 2 141.1 134.5 132.1 118.0 105.3 10.9 .9.2 CHEMICAL IMPORTS: Big gains for most CHEMICAL EXPORTS: Organics up sharply Change Change $ Millions (Canadian)s 1981 1980 1979 1960-81 S Mlllbns (Canadian)8 1981 1960 1979 1960-81 Inorganic chemicals $ 401.1 $ 344.1 $ 353.2 17% Chemical elements $ 181.0 $ 160.4 $ 14 6.0 13% Organic chemicals 1087.3 930.1 895.3 17 Other inorganic chemicals 1052.4 947.3 83 9.7 11 Fertilizers and fertilizer 158.9 134.9 135.1 18 Organic chemicals 1185.9 923.9 70 4.8 28 materials Synthetic and reclaimed rubber Fertilizers and fertilizer materials Synthetic rubber and plastic 1345.6 1253.8 98 7.3 7 Plastics materials 605.1 537.2 564.4 13 materials Plastic film and sheet 242.1 192.2 181.7 26 Plastics basic shapes and Other plastics basic shapes 154.2 128.5 135.5 20 forms and forms Other chemical products 205.6 178.9 15 7.6 15 Dyes, except dyeing di i t tes TOTAL $4634.0 $4054.7 $332 1.8 14% n erme a a Dom stic exports only. Valdes as declared on export downents: may inci a ehippir costs Pigments, lakes, and toners 64.4 53.5 62.1 20 sown: Statistics Canada g . Paints and related products 98.4 86.2 94.9 14 Other chemical products 763.3 741.4 617.5 3 TOTAL $3810.7 $3354.2 $3240.3 14% Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 PRODUCTION: Growth continues for fertilizers and plastics in Eastern Europe Thousands of metric tons, unless otherwise noted U.S.S.R. Sulfuric acid, 100% 24,100 23,030 22,364 22,411 21,104 Mineral fertilizers 108,000 103,858 94,523 97,976 96,752 (gross weight) Mineral fertilizersb 26,000 24,774 22,137 23,653 23,493 Nitrogenb na 10,239 9,151 9,299 9,114 Phosphate b.C na 6,471 6,344 6,153 6,024 Potassiumb na 8,064 6,635 8,193 8,347 Synthetic ammonlad na 13,764 12,278 11,462 10,744 Sodium carbonate, na 4,800 4,782 4,858 4,876 100% Plasticse 4,100 3,638 3,478 3,516 3,309 Sodium hydroxide, 100% 2,800 2,755 2,680 2,763 2,658 Synthetic rubbers na 1,880 1,867 1,795 1,700 Rubber tiresg 60,500 60,100 59,981 59,018 57,400 (thousands of units) Pesticides BULGARIA Sulfuric acid, 100% na 859 998 974 860 Mineral fertllizersb na 947 959 968 984 Nitrogenb na 730 677 685 705 Phosphateb na 217 282 283 279 Synthetic ammonlad na 1,026 951 960 995 Plastics na 250 200 178 169 Sodium hydroxide, 100% na 161 107 102 96 Synthetic rubber na 30 30 25 25 Rubber tireso na 1,982 1,752 1,734 1,830 (thousands of units) CZECHOSLOVAKIA- Sulfuric acid, 100% na 1,284 1,253 1,195 1,276 Mineral fertilizersb na 1,182 1,140 1,176 1,178 Nitrogenb na 618 591 625 605 Phosphateb.c na 361 358 367 389 Potassiumb?h na 203 199 191 184 Synthetic ammoniad na 841 804 812 791 Plastics 913 894 853 810 738 Sodium hydroxide, 100% na 326 312 311 312 Synthetic rubber na 59 60 59 59 Rubber tireso na 6,714 6,581 6,439 6,341 (thousands of units) EAST GERMANY Sulfuric acid, 100% na 950 952 971 972 Mineral fertilizersb na 4,773 4,740 4,628 4,470 Nitrogenb na 940 ' 875 892 838 a Approximate figures. b Nutrient content basis, as N. P20s. or K20. c Including production of ground phosphate rock for direct applications and phosphate animal feeds. d Nitrogen content. a Including resins for man-made fibers. f Estimated. g For all motor vehicle tires, excluding aircraft and bicycle tires. h Imposed potash added to domestically produced nitrogen Thousands of metric tons, unless otherwise noted 1s81' 1880 1979 1978 1977 Phosphateb' na 411 411 413 403 Potassiumb na 3,422 3,395 3,323 3,229 Synthetic ammoniad na 1,159 1,079 1,137 1,130 Plastics na 800 779 762 734 Sodium hydroxide, 100% na 626 548 415 423 Synthetic rubber na 170 165 145 147 Rubber tires9 na 7,068 6,890 6,728 6,652 (thousands of units) HUNGARY Sulfuric acid, 100% na 614 613 690 678 Mineral fe tilizersb rta 894 850 855 788 Nitrogenb na 599 550 534 514 Phosphateb na 150 165 185 165 Potassiumb-h na 145 143 136 109 Synthetic ammonia? na 900 803 746 729 Plastics 311 328 294 213 148 Sodium hydroxide, 100%l na 188 194 146 97 Rubber tireso na 870 750 773 814 (thousands of units) POLAND Sulfuric acid, 100% na 2,964 2,983 3,172 3,268 Mineral fertilizersb na 2,239 2,431 2,621 2,610 Nitrogenb na 1,295 1,376 1,470 1,521 Phosphateb na 842 931 1,026 966 Potassiumb?h na 105 110 125 123 Synthetic ammoniad na 1,438 1,530 1,616 1,665 Plastics na 549 440 467 463 Sodium hydroxide 100% no 415 436 469 440 Synthetic rubber na 118 130 126 119 Rubber tireso na 8,743 8,500 7,852 7,457 (thousands of units) ROMANIA Sulfuric acid, 100% na 1,850 1,750 1,655 1,523 Mineral fertllizersb 2,640 2,451 2,522 2,461 1,981 Nitrogenb na 1,689 1,738 1,723 1,381 Phosphateb na 689 709 660 548 Potassiumb,h na 73 75 78 52 Synthetic ammoniad na 2,267 2,333 2,259 1,793 Plastics na 579 516 552 543 Sodium hydroxide, 100% na 705 704 725 735 Synthetic rubber na 150 149 148 136 Rubber tireso na 5,060 4,691 4,690 4,372 (thousands of units) and phosphate to form muhmutrient fertilizer. I Including regenerated NaOH. na - not available. sources: Central Intelligence Agency. Department of Commerce. Department of Agriounure, United Nations Economic Commission for Europe (based on official national statistics) SOVIET FOREIGN TRADE: After steady growth, exports and imports of chemicals turn down Exports' $79,377 $76,470 $64,913 $52,395 $45,227 $37,269 $33,401 $27,374 $21,332 $15,409 $13,792 Imports' 73,158 68,477 57,961 50,795 40,926 38,212 37,070 24,861 20,980 16,104 12,467 Trade balance 6,219 7,993 6,952 1,600 4,301 -943 -3,669 2,513 352 -695 1,325 Chemical exports' na 1,119 1,606 1,284 1,063 939 1,027 887 549 439 396 Chemical imports' na 1,822 2,803 2,188 1,850 1,668 1,747 1,448 954 868 702 Chemical trade balance na -703 -1,197 -904 -787 -729 -720 -561 -405 -429 -306 Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R00060602000f -8 i 77 Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8 - 6 Western Pacific CHINA PRODUCTION: Slower growth in 1981 for most major products Thousands of wattle Ions 1981 1980 Ammonia' 11,990 12,150 Fertlilzerb 12,390 12,320 Nitrogen (N) 9,860 9,990 Phosphate (P205)c 2,510 2,310 Potash (K20) 20 20 Sulfuric acid 7,810 7,640 Sodium hydroxide 1,923 1,923 Sodium carbonate 1,652 1,613 Change 1979 1978 1980-81 10,727 9287 -1.3% 10,654 8691 0.6 8,821 7637 -1.3 1,817 1033 8.7 16 21 0 7,000 6610 2.2 1,826 1640 0 1,486 1329 2.4 a Nitrogen content of armronia produced for fertilizer. b Nutrient content. C Including Production of ground phosphate rode for drect application and phosphate animal leads. Sources: State CHEMICAL IMPORTS: Fertilizers are biggest - Change s Minions' 1980 1979 1978 1979-80 Fertllizersb $ 821 $ 594 $ 465 38% Nitrogenous fertilizer 501 496 354 1 Chemical elements and compounds 546 411 382 33 . Organic chemicals 394 258 265 53 Plastic materials, resins 378 158 137 139 Dyeing, tanning, and coloring 79 88 70 -10 materials Medicinal products 19 13 9 46 Essential oils, perfume, and 9 10 10 -9 cleansing materials Mineral tar and crude chemicals` 0 11 12 -99 Other chemicalsd 179 159 100 13 TOTAL $2031 $1444 $1185 41% a Free on board. b Manufactured. c From coal. oil, and natural gas. d Includes explosives and pyrotechnic products. and Chemical materials and Products not elsewhere specified. Source: Central Intelligence Agency, estimated from data reported by China's trade partners TAIWAN INDUSTRY TRENDS: Chemical growth slows Industrial production Indexes, 1976 - 100 1981 All manufacturing 169.3 Chemical materials 205.1 Basic chemicals 152.5 Petrochemicals 262.3 Fertilizers 124.0 Synthetic fibers 197.4 Plastics and resins 210.4 Chemical products 176.7 Ch 1980 1979 1978 148 0-81 163.2 153.0 142.8 4% 201.2 189.1 165.3 2 150.2 148.5 126.1 2 254.4 242.0 194.1 3 134.6 127.9 125.9 -8 187.7 174.5 159.7 5 214.5 197.5 176.6 -2 163.9 161.0 139.2 8 FOREIGN TRADE: Big gains for chemicals Exportsb $22,611 $19,811 $16,103 12,687 Imports` 21,200 19,733 14,774 11,027 Trade balance 1,411 78 1,330 1,660 Chemical exportsb 981 494 356 275 Chemical importsc 2,725 2,024 1,817 1,305 Chemical trade balance -1,744 -1,530 -1,461 -1,030 a Estimated b Free on board. c includes cost, insurance, and freight. Source: Council for Economic Planning & Development. Taiwan C41 Thousands of metrlc Ions 1981 1990 1979 1978 -61 Calcium carbide 1,510 1,520 1,407 1237 -0.7 Plastics 916 898 793 679 2.0 Insecticides 484 537 537 533 -9.9 Ethylene 500 490 435 380 2.0 Synthetic detergents 478 393 397 324 21.6 Man-made fibers 527 450 326 285 17.1 Pharmaceuticals 37 40 42 41 -7.5 CHEMICAL EXPORTS: Top $1 billion Change s Millions' 1980 1979 1978 1979-80 Chemical elements and compounds $ 488 $276 $141 77% Organic chemicals 281 168 85 67 Medicinal products 186 114 79 63 Essential oils, perfume, and cleansing 104 82 67 27 materials Explosives and pyrotechnic products 95 72 49 32 Plastic materials, resins 77 50 12 54 Dyeing, tanning, and coloring materials 66 46 35 45 Mineral tar and crude chemicaisb 28 9 3 208 Fertllizersc 2 1 1 42 Other chemical products 184 129 84 43 TOTAL $1230 $779 $471 58% a Free on board. b From coal, oil. and natural gas. c Manufactured. Soya: central Intelligence Agency. estimated from data reported by China's trade partners PRODUCTION: Lower for several chemicals Thousands of wattle ions, Ck~ unless Otherwise noted 1981 1980 1979 1976 1980-81 Ferttlizers' na 2,092 1,979 1,959 na Man-made fibers 687 633 587 540 9% Polyvinyl chloride 456 454 407 389 0 Synthetic detergents 94 104 105 86 -9 Benzeneb 137 145 153 129 -5 Ethylene 443 458 445 366 -3 Ethylene glycol 156 133 118 51 18 Propylene 204 213 205 164 -4 Tolueneb 172 153 134 95 12 Vinyl chloride 411 405 317 320 2 Xyleneb 277 311 285 131 -11 Ammonia, anhydrous 494 504 476 534 -2 Ammonium sulfate 504 539 556 541 -6 Calcium superphosphate 226 207 208 175 9 Hydrochloric acid 184 179 180 180 3 Oxygenc 174 159 141 107 9 Sodium hydroxide 357 400 420 362 -11 Sulfuric acid 819 769 777 685 6 Urea 285 343 312 366 -17 a In terms of 20 % N, 18 % P205. and 50 % K2Ofertilizer, b Millions of liters. c Mitlrons of cubic meters. na w not available. Source: Council for Economic Planning & Development. Taiwan "'"" Sanitized Copy Approved for Release 2010/08/24: CIA-RDP90-00552R000606020001-8