CHANGE PROFIT DISTRIBUTION IN HUNGARIAN PRODUCERS' COOPERATIVES

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP80-00809A000700020098-0
Release Decision: 
RIPPUB
Original Classification: 
C
Document Page Count: 
3
Document Creation Date: 
December 22, 2016
Document Release Date: 
August 23, 2011
Sequence Number: 
98
Case Number: 
Publication Date: 
November 2, 1951
Content Type: 
REPORT
File: 
AttachmentSize
PDF icon CIA-RDP80-00809A000700020098-0.pdf240.65 KB
Body: 
Sanitized Copy Approved for Release 2011/08/23: CIA-RDP80-00809A000700020098-0 1 N?n[ I e rlR fi+p.~f~R REPORT CD NO. DATE OF 1951 INFORMATION NO. OF PAGES 3 SUPPLEMENT TO REPORT NO. THIS IS UNEVALUATED INFORMATION CHANGE PROFIT DISTRIBUTION IN HUNGARIAN PRODUCERS' COOPERATIVES The Hungarian Council nto the the No 1,022/1951 (VII. 8) 8), , relative cooperative groups type III. With the help of the Hungarian Workers' Party, the producers' coopera- tives are harvesting a plentiful grain crop and may also expect excellent re- sults in other agricultural products, as well as from animal husbandry. The members' continued welfare will be assured if the producers' cooperatives will make adequate use of their large earnings, add to the assets of the coopera- tives, and distribute the profits -- in kind as well as in cash -- among the The Council of Ministers finds that the present system of profits dis- tribution by the producers' cooperatives does not completely satisfy the above requirements, because thus far profits have been calculated on a cash basis, and distribution in kind has not been made in proportion to work performed. This defect has been repeatedly debated in the producers' cooperatives. The Council of Ministers has now resolved to make it mandatory for pro- ducers' cooperatives to adopt the method of profit dis`_::ibution which has been employed in the Soviet kolkhozes for many years. this shall be distributed among the members of producers' n well as in cash, in proportion to work performed. Distribution of profits by in.ependent producers' cooperatives and producers' cooperative igrooupsatypeaIII (hereinafter, cooperatives) beginning with the 1950 - 1951 gxi will be governed by the following rules; STAT After the payment of obligations due to the state and appropriations for the reserve fund, the remaining amount of products must be distributed among the members of the cooperative in the ratio of work units earned. All commo- dities which the cooperative receives in exchange for its own products (sugar, rice, cotton goods, oil, etc.) must likewise be distributed according to work units earned. Distributions in kind will be made as follows: Sanitized Copy Approved for Release 2011/08/23: CIA-RDP80-00809A000700020098-0 CLASSIFICATION CONFIDENTIAL SECURITY INFORMATION CENTRAL INTELLIGENCE AGENCY INFORMATION FROM FOREIGN DOCUMENTS OR RADIO BROADCASTS COUNTRY SUBJECT HOW PUBLISHED WHERE PUBLISHED Hungary Economic - Agriculture, producers' coopera- ACT THIS OOCUNINT CONTAINS INFORMATION AFFECTING THE NATIONAL OITINII ACT of yHK UNITED IT{ TRANSMISSION OR THE RIVIATION U. I. C.. 71 AND SD. AT3 AY[NDI D. T F OF PTO CONTENTS IM ANT MANN IR TO AN UNAUTHORII[0 PERSON IS PRO? NI{IT[D ET LAW. REPRODUCTION OF TNIS TORN IS PRONIRIT[0. SOURCE Magyar Kozlony. Sanitized Copy Approved for Release 2011/08/23: CIA-RDP80-00809A000700020098-0 1 CO W9DENTiA1 1. The foremost duty of the cooperative is to satisfy its delivery quotas in all agricultural and animal products. The cooperative must also make payments in kind to the machine stations and satisfy all obligations which it has assumed under production contracts. 2. Seeds selected from the best crops must be placed in reserve for the fol- lowing year, with-due regard to an increase in arable land. Fibrous as well as grain fodder shall likewise be held in reserve in sufficient quantity for the livestock which will be increased according to the cooperative's plan. In addi- tion, 5 percent of the bread grain and potato crops may be placed in reserve to meet unforeseen requirements. 3. After the cooperative's obligations to the state have been fulfilled and reserves provided for, the membership meeting may authorize sale of part of the remaining products to the state or in the open market. 4. All products remaining after fulfillment of obligations, reserves, and free sale must be distributed among the members of the cooperative on the basis of work units earned during the year. The work units must be totaled on 1 Octo- ber. In case production results exceed the planned figures, the president of the cooperative, as well as the brigade and labor group leaders and members, may be allotted a bonus in kind. The various products shall be distributed among the members of the cooperative on the following basis: 1. Bread grain rations must be advanced to all members and their dependents who have earned a minimum of 50 work units by threshing time. An exception to this rule may be made in case a member was prevented by illness or old age from earning 50 work units. Rations must be withheld from able-bodied dependents who are working elsewhere than in the cooperative or did not participate in the common work during the summer. In addition to rations, the cooperative must distribute, in the ratio of work units earned, an amount of grain equal to that sold to the state in excess of mandatory deliveries. 2. A minimum of 15 percent and a maximum of 30 percent -- according to the resolution of the membership meeting --'of the various kinds of fodder (barley, oats, corn, hay, straw, etc.) shall be distributed in kind in the ratio or work units earned. Half the fodder to be distributed must be advanced to members at the harvest and the other half is due after 1 October. Fodder distribution must be made also to members who do not yet own livestock, thereby enabling them-to acquire livestock of their own. 3. Other products (potatoes, grapes, fruits, wine, etc.) must be distrib- uted among the members in the ratio of work units earned, after the obliga- tions of the cooperative have been fulfilled. Commodities received by the co- operative in exchange for its own products. (rice, sugar cotton goods, oil, etc.) shall be distributed among the members likewise in the ratio of work units earned. Vegetables and early fruits may be sold for cash only to members who are in need of these products. 4. The livestock owned by the cooperative and the animal products derived from this livestock cannot.be distributed among the members. The livestock of the cooperative may, however, be used to promote livestock breeding by members. Members may receive such help only in case they are in need of it and participate systematically in the common work. Animals and animal products thus allotted to members shall be paid for at full market price. CONFIDENTIAL $LNTtA I Sanitized Copy Approved for Release 2011/08/23: CIA-RDP80-00809A000700020098-0 Sanitized Copy Approved for Release 2011/08/23: CIA-RDP80-00809A000700020098-0 1 COK101TW. II The cooperatives' cash in..ome shall be distributed among the members as follows: 1. The cooperatives must first satisfy their monetary obligations to the state (taxes, debts due, machine station fees, etc.) as well as to other m on creditors. Particular pattention must be reviously owned by paid members tandcofpinstallmentstduep wennt of rent for land p Y the price of agricultural equipment contributed by members. 2. Twenty percent of the cash income should be added to the cooperatives' reserve fund. The reserve fund shall be employed for the purchase of livestock machines, and equipment and for the construction of farm sbuildings, Twoof suppor percent of the cash income may be t:!e aged and sick and for recreation rooms. 3. The remaining cash shall be distributed among members of the heoendaofve's the year in the ratio of work units earned. Thirty percent cash income may be advanced to members during the year. III The Ministers of Agriculture and of Food Distribution are directed to take proper steps to introduce the new system of profit distribution by the coopera- tives. The Minister of Agriculture shall cause the cooperatives to make ap- propriate changes in their statutes. fhe-decree is signed by Matyas Rakosi, Deputy President of the Council of Ministers. Ordinarily, decrees of the Council of Ministers are signed by Istvan Dobi, President) -3 - CONFIDENTIAL CONI1~tIA~- Sanitized Copy Approved for Release 2011/08/23: CIA-RDP80-00809A000700020098-0