COMMERCIAL RELATIONS BETWEEN RUMANIA AND CZECHOSLOVAKIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R015100130005-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: June 28, 2013
• Sequence Number: 5
• Publication Date: November 26, 1952
• Content Type: REPORT

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Declassified in Part - Sanitized Copy Approved for Release 2013/06/28: CIA-RDP82-00457R015100130005-2
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CENTRAL INTELLIGENCE AGENCY
CIRCULATE r
CLASSIFICATION SECRET/CONTROL--U.S. OFFICIALS ONLY
SECURITY INFORMATION
COUNTRY Rumania
INFORMATION REPORT REPORT
CD NO.
50X1-HUM
DATE DISTR. 20 November 1952
, SUBJECT. Commehcial Relations between Rumania NO; OF PAGES 3_
and Czechoslovakia
DATE OF
INFO.
'PLACE
ACQUIRED
NO. OF ENOLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO.
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/THIS DOCUNENT CONTAINS INFORmATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES, WITHIN THE WEANING OF TITLE 18, SECTIONS 193
AND 79N, OF TME U.S. CODE, AS AWENDED. ITS TRANSNISSION OR REVE?
LATION OF ITS CONTENTS TO OR RECEIPT 8T AN UNAUTHORIZED PERSON IS
PROMMITE0 ire LAW. THE REPRODUCTION OF. IRIS PORN IS_RAOHIBITED.
THIS IS UNEVALUATED INFORMATION
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1.
Czechoslovak industries in Rumania include the following:
a. The Metal and Arms Factory at Cugir (Hunedoara district) which was built
by the Zbrojovka-Brno Ammunition Factories in cooperation with the Rumanian
Government. The Czechoslovak share in the plant is 7 percent. Since the
nationalization in 1948, the up-to-date equipment installed by the Czechs
has become exclusively Rumanian property.
b. The Metrom Metallurgical Factory at Brasov on the Brasov-Darste road. This
plant was founded with mixed Czech and Rumanian capital. Production
consists mainly of copper and bronze and other non-ferrous articles. The
equipment is probably used for the manufacture of ammunition, particularly
cartridge cases. The factory consists of several small buildings covering
an area of several hectares.
c. The Fold Iron Works at Brasov (Forja Poldi). This plant was established
by the Czechoslovak Fold Works with Czech capital. Production consists
of special steels and manufactured pieces made of special steel. The
equipment is. modern and was installed about 1940.
d. The Valea Sadului Ammunition Factory on the Bumbesti-Livezeni railroad,
near Targu-Jiu. This plant is built at Valea Sadului Station, on both
sides of the highway and the railroad track, near the river Jiu. It
includes several large and small brick buildings with tin or brick roofs,
covering an area of about six hectares. The equipment is modern and was
installed by the Skoda Works, Pilsen, about 1940. The factory employs
about 2,000 workers, *Who live in Targu-Jiu and the neighboring villages
and in special accoMmodations built near the factory. The production
consists mainly of arms.and ammunition. 50X1-HUM
e. The Resita Works. This plant was built by the
Skoda and Zbrojovka with capital supplied by
and probably also
Czech ammunition factories
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f. The Metallurgical Works at Ploesti. This plant was established by Skoda
for the repair of their heavy artillery carriers. The works have been
entirely destroyed and attempts to restore them failed. The majority of
the Skoda heavy artillery carriers are therefore now useless for the
lack of a special repair workshop and spare parts.
The Argintaria Ronaneasca (Rumanian silver factory) in the Dudesti-Cioplea
district, Bucharest (Tram No. 18). This plant was established by the ?
Sandrick Works. It has modern equipment and makes cutlery and other items
of aluminum or silver and also has installations for silver-plating.
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h. The oil refinery at Comanesti (Bacau) in the Trotus Valley. This plant
processes oil obtained in the Comanesti-Bacau district, including
aviation gasoline. The equipment is quite new, and was installed since
1950 by the Brunner mechanical works at Brno. Production was to have
started in 1951.
i. The Teleajen Refinery at Ploesti. This plant was recently provided by the
Czechoslovak works at Brno with additional up-to-date equipment. The
refinery occupies an area of'about ten hectares, and the new installations
were to begin operations in the beginning of 1952.
The plans for the Lenin Hydro-electric Power Station at Stejarul (Bicaz).
This plant is to be the largest in Rumania. The plans have been pre-
pared by the Czechoslovak Company for Industrial Projects in Prague. The,
power Station is to be finished by the end of the first Five Year Plan
and is to supply current to all industrial enterprises in Moldavia and
Eastern Transylvania.
2. TWO Czech commissions have been to Rumania to negotiate for outstanding payments
in connection with Czech property nationalized in 1948, but no progress has been
made. Ope of the delegations was headed by Augenthaler? the former Czech
minister to Rugania. Czech representatives also approached the Sovroms in
connection with former Czech property incorporated in these organizations, but
equally fruitlessly. Remaining private property is now nationalized without
ary fnrmalities? items of machinery, etc., being simply removed at the order
of a ministryc
3. The 1951 plan provides for the import of industrial equipment with a value of
1,000 million lei from Czechoslovakia, Rumania's largest supplier after the
USSR. In 1951 an agreement was concluded according to which technical experts
and designs were to be sent from Czechoslovakia to Rumania, in addition to
machinery and industrial equipment.
4. In 1950-51 the exchange of goods between Rumania and Czechoslovakia met with
difficulties because there were not enough export goods available in' Rumania:
and goods intended for Czechoslovakia often had to be sent to Korea, China or
the USSR. The agreement between the two countries provided for the export of
large quantities of oil from Rumania, but tankers bound for Czechoslovakia
were repeatedly diverted at the last moment as the result of directives
received,from Moscow. As a result, the 1951 treaty provided for 50 percent
less oil than the 1950 treaty, and Czechoslovakia was to obtain additional
oil. from
5. There are large stocks of oil in the Sub-Cetate Petrosani and Ohaba Sdb-Munte
districts and probably near other railroad stations. Near those stations on
both sides of the railway track there are pumping stations with filling and
pumping installations and oil tanks. It is believed that these are visible
parts of large underground oil depots.
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6. Czechoslovakia supplied Rumania with few raw materials and semi-finished products
but furnished many finished products, including automobiles, electrical material,
pipes for theoil industry, special steels and machinery. The goods are of
inferior quality compared with pre-war Czech products. About 90 percent of the ve-
hicles imported by Rumania during the past few years were of Czechoslovak make.
These included during 1950-51:
a. Approximately 3,000 Praga trucks of 3.5
Militia, Securitate or the Army.
b. 2,500 Skoda army Vehicles
reinforced bodies,
tons, most of them for the
with only 32 hp. and
delivered to state offices and'
c. Skoda 4-cylinder, 32-hp passenger tars,
enterprises.
d. Approximately 2,000 Tatra cars, eight cylinders, with the engine in the rear,
e. Tatraplan cars, four-cylinders, with the engine in the rear.
f. A limited number of Skoda 10-ton trucks (the majority of these trucks were
delivered to the USSR) .
A small number of motor buses and garbage and fire brigade trucks.
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g.
7. Indutrial machinery imported by Rumania from Czechoslovakia included complete
Installations for a telephone exchange, Supplied by the Tesla Works and
delivered to the Rumanian. Railroads. The exchange contains 2,000 numbers and
has been installed in the Carpati building in Bucharest.
8. Imports were held up by such difficulties as the following:
a, The delivery period for a complete factory installation is approximately
three to four years.
b. Elaborate formalities are followed, including the approval of finance
and planning ministries and the State Bank for such transactions.
c. The general development plan undergoes continuous amendment, so that an
average of 30 to 40 percent of the orders are cancelled and replaced by
orders for different items.
9. The staff of the Czechoslovak Embassy in Rumania has changed constantly during
the past two years and is now staffed with officials who are only partly
qualified. In 1950 the former diplomats were replaced by other officials and
later, at the end of 1950 and in 1951, former Czech workers who had attended
diplomatic Courses were sent as representatives to various countries. These
representatives are always reluctant to be recalled to Czechoslovakia as they
do not relish a return to ordinary labor after having become diplomatic
officials.
10. Because of the many sudden Changes in the Rumanian Government and state
enterprises, one of the chief diplomatic problems is to be sure which Rumanians
are still in office and can be invited to official fUnctions.
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Declassified in Part - Sanitized Copy Approved for Release 2013/06/28: CIA-RDP82-00457R015100130005-2