THE RUBBER INDUSTRY IN THE SINO-SOVIET BLOC

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CIA-RDP79-01093A001200040009-3
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RIPPUB
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S
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122
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November 9, 2016
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February 16, 1999
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9
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Publication Date: 
March 15, 1957
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IR
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SECRET 6? &elease 1999/09/02: CIA-RDP79-01093A001200040009-3. N? 81 PROVISIONAL I NTELLIGENCE REPORT. THE RUBBER INDUSTRY IN THE SNO - SOVIET BLOC zro~ &Q. N 44 z cIA/RR PR-1 55 4-11 Iola rch - 1957 =CENTRAL INTELLIGENCE AGENCY OFFICE OF RESEARCH AND REPORTS CLAW 2 Approved For ReleaaO AA RD~~ 91093AO01200040009- El I 10~Y~fiNT~~ir Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 S-E-C-R-E-T PROVISIONAL INTELLIGENCE REPORT THE RUBBER INDUSTRY IN THE SINO-SOVIET BLOC CIA/RR PR-155 (ORR Project 22.860) NOTICE The data and conclusions. contained in this report do not necessarily represent the final position of ORR and should be regarded as provisional only and subject to revision. Comments and data which may be available to the user are solicited. CENTRAL INTELLIGENCE AGENCY Office of Research and Reports S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 S -E -C -R -E -T FOREWORD The purpose of this report is to present the latest information available on the rubber industry of the Sino-Soviet Bloc. Previous reports have presented information on the rubber position of the USSR and of the European Satellites. This information has been brought up to date in this report. Because of its increasing impor- tance in the economy of the Sino-Soviet Bloc, the rubber industry of Communist China is discussed. No data are available on capital investments, manufacturing costs, wholesale prices, or labor inputs for either synthetic rubber or finished rubber products in the Sino-Soviet Bloc. Hence this report is confined to the production and consumption phases of the industry. Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 CONTENTS Summary . . . . . . . . . . . . . . . . . . . . . . . . . . I. Introduction . . . . . . . . . . . . . . . . . . . . . . . II. Supply . . . . . . . . . . . . . . . . . . . . . . . . . . A. Production . . . . . . . . . . . . . . . . . . . . . . 1. USSR . . . . . . . . . . . . . . . . . . . . . . . a . General . . . . . . . . . . . . . . . . . . . b. Natural Rubber . . . . . . . . . . . . . . . . 7 C. Synthetic Rubber . . . . . . . . . . . . . . . 8 d. Reclaimed Rubber . . . . . . . . . . . . . . . 9 e. Transportation Goods . . . . . . . . . . . . . 12 f. Carbon Black . . . . . . . . . . . . . . . 12 g. Tire Cord . . . . . . . . . . . . . . . . . . 14 h. Beadwire . . . . . . . . . . . . . . . . . . . 17 i. Nontransportation Goods . . . . . . . . . 18 j. Sixth Five Year Plan (1956-60) . . . . . . . . 19 a. General . . . . . . . . . . . . . . . . . . . 20 b. Nonrubber Components . . . . . . . . . . . . . 20 a. General . . . . . . . . . . . . . . . . . . . 20 b. Natural Rubber . . . . . . . . . . . . . . . . 21 C. Synthetic Rubber . . . . . . . . . . . . . . . 21 d.. Reclaimed Rubber . . . . . . . . . . . . . . . 21 e. Transportation Goods . . . . . . . . . . . . . 22 f. Carbon Black . . . . . . . . . . . . . . . . . 22 g. Tire Cord . . . . . . . . . . . . . . . . . . 23 h. Beadwire . . . . . . . . . . . . . . . . . . . 23 i. Nontransportation Goods . . . . . . . . . . . 23 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400q 4. Czechoslovakia . . . . . . . . , , , . . . . . a. General . . . . . . . b. Natural Rubber . . . . . , . . . . c. Synthetic Rubber . . . . . . . . . . . . . . . . . . . . d, Reclaimed Rubber . . . . . e. Transportation Goods . . . . , . . . . . _ f. Carbon Black . . . , , , . g. Tire Cord . . . . . . . . . . . . . . . . h. Beadwire . . , . , . . . . . . . . . . . . i. Nontransportation. Goods . . . . . . . . . . . . 5. East Germany . . . . . . . . . . . . . . . . . . . a. General.. . . . . . . . b. Natural Rubber . . . . . . . C. Synthetic Rubber . . . . . . ? . . . d. Reclaimed Rubber . . . . . . . . . . e. Transportation Goods . . . . . . . . . . . . . f. Carbon Black . . . . . . g. Tire Cord . . . . . . . . . . . . . . . . . . . h. Beadwire . . . . . . . . . . . . . . . . . . . i. Nontransportation Goods . . . . . . . . . . . . 6. Hungary . . . . . . . . . . . . . . . . . . . . . . a. General . . . . . . . b. Natural Rubber , , . . . . . . . . . C. Synthetic Rubber. , . . . . . . . . . d. Reclaimed Rubber. . . .. . , , . . . . . e. Transportation Goods . . . , . . . . . f. Carbon Black . . . . . . . g. Tire Cord . . . . . . . . . . . . h. Beadwire . . . . . . . . . . . . . . . . . . Nontransportation Goods . . . . . . . . . . . . 7. Poland . . . . . . . . . . . . . . . . . . . . . a. General . . . . . . b. Natural Rubber . . . . . . . . . . . . . . . . 9-3 Page 24 24 24 25 26 28 28 29 29 30 31 31 32 32 33 37 37 38 39 39 39 39 40 41 41 2 +2 +3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Page c. Synthetic Rubber . . . . . . . . . . . . . . . 455 d. Reclaimed Rubber . . . . . . . . . . . . . . e. Transportation Goods . . . . . . . . . . . . . 4+6 f. Carbon Black . . . . . . . . . . . . . . . . . 47 g. Tire Cord . . . . . . . . . . . . . . . . . . . 4+8 h. Beadwire . . . . . . . . . . . . . . . . . . . 49 i. Nontransportation Goods . . . . . . . . . . . . 49 8. Rumania . . . . . . . . . . . . . . . . . . . . . . 50 a. General . . . . . . . . . . . . . . . . . . . 50 b. Natural Rubber . . . . . . . . . . . . . . . 51 c. Synthetic Rubber . . . . . . . . . . . . . . . 52 d. Reclaimed Rubber . . . . . . . . . . . . . . . 52 e. Transportation Goods . . . . . . . . . . . . . 53 f. Carbon Black . . . . . . . . . . . . . . . . . 53 g. Tire Cord . . . . . . . . . . . . . . . . . . . 54 h. Beadwire . . . . . . . . . . . . . . . . . . . 55 i. Nontransportation Goods . . . . . . . . . . . . 55 9. Communist China . . . . . . . . . . . . . . . . . . 55 a. General . . . . . . . . . . . . . . . . . . . . 55 b. Natural Rubber . . . . . . .. . . . . . . . . . 57 c. Synthetic Rubber . . . . . . . . . . . . . 58 d. Reclaimed Rubber . . . . . . . . . . . . . . . 58 e. Transportation Goods . . . . . . . . . . . . . 59 f. Carbon Black . . . . . . . . . . . . . . . . 59 g. Tire Cord . . . . . . . . . . . . . . . . . . . 62 h. Nontransportation Goods . . . . . . . . . . . . 63 B. Stockpiles . . . . . . . . . . . . . . . . . . . . . . 63 C. Trade . . . . . . . . . . . . . . . . . . . . . . . . . 67 1. Natural Rubber . . . . . . . . . . . . . . . . . . 67 2. Synthetic Rubber . . . . . . . . . . . . . . . . . 69 3. Rubber Products . . . . . . . . . . . . . . . . . . 69 4. Plans . . . . . . . . . . . . . . . . . . . . . . 69 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400q A. USSR . . . . . . . . . . . . . . . . . . . . . . . . B. Albania . . . . . . . . . . . . . . . . . . . . . . C. Bulgaria . . . . . . . . . . . . . . . . . . . . . . D. Czechoslovakia . . . . . . . . . . . . . . . . . . E. East Germany . . . . . . . . . . . . . . . . . . . . F. Hungary . . . . . . . . . . . . . . . . . . . . . . . G. Poland . . . . . . . . . . . . . . . . . . . . . . . H. Rumania . . . . . . . . . . . . . . . . . . . . . . . I. Communist China . . . . . . . . . . . . . . . . . . . A. General . . . . . . . . . . . . . . . . . . . . . . . B. USSR . . . . . . . . . . . . . . . . . . . . . . . . C. European Satellites . . . . . . . . . . . . . . . . . D. Communist China . . . . . . . . . . . . . . . . . . . A. General . . . . . . . . . . . . . . . . . . . . . . B. Capital Investment . . . . . . . . . . . . . . . VI. Capabilities, Vulnerabilities, and Intentions . 9-3 93 93 93 94 .A. Capabilities . . . . . . . . . . . . . . . . . . . . B. Vulnerabilities . . . . . . . . . . . . . . . . . . . C. Intentions . . . . . . . . . . . . . . . . . . . . . A }pendlxes Appendix A. Methodology . . . . . . . . . . . . . . . . . . Appendix B. Gaps in Intelligence . . . . . . . . . . . . . . Appendix C. Source References . . . . . . . . . . . . . . . 95 99 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Page 1. Estimated Production of Synthetic Rubber in the USSR, by Plant, 1946-55 . . . . . . . . . . . . . . . . . 10 2. Estimated Requirements for Reclaimed Rubber in the USSR, 1946-55 . . . . . . . . . . . . . . . . . . . . . . . . 11 3. Estimated Production of Motor Vehicle Tires in the USSR, by Plant, 1946-55 . . . . . . . . . . . . . . . . . . . 13 4. Facilities for the Production of Carbon Black in the USSR, 1955 .......................... 15 5. Estimated Production of Rubber Footwear in the USSR, 1945-55 . . . . . . . . . . . . . . . . . . . . . . 19 6. Estimated Production of Motor Vehicle Tires in Bulgaria, 1946-55 . . . . . . . . . . . . . . . . . . . . . . . . 22 7. Estimated Production of Synthetic Rubber in Czechoslovakia, 1946-55 . . . . . . . . . . . . . . . . . . . . . . . . 25 8. Estimated Production of Motor Vehicle Tires in Czecho- slovakia, 1946-55 . . . . . . . . . . . . . . . . . . . 27 9. Estimated Production of Synthetic Rubber in East Germany, 1946-55 and 1960 . . . . . . . . . . . . . . . . . . . 31 10. Estimated Production of Motor Vehicle Tires in the Euro- pean Satellites, by Country and by Plant, 1946-55 . . . 34 11. Estimated Production of Carbon Black in East Germany, by Plant, 1950-55 . . . . . . . . . . . . . . . . . . . . . 36 12. Estimated Production of Footwear in East Germany, 1946-55 . . . . . . . . . . . . . . . . . . . . . . . . 38 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400P 13. Estimated Production of Reclaimed Rubber in Hungary, 1946-55 . . . . . . . . . . . . . . . . . . . . . . . . . 14. Estimated Production of Motor Vehicle Tires in Hungary, 1946-55 . . . . . . . . . . . . . . . . . . . . . . . . . 15. Estimated Production of Rubber Footwear in Hungary, 1948-55 . . . . . . . . . . . . . . . . . . . . . . . . . 16. Estimated Production of Reclaimed Rubber in Poland, 1946-55 . . . . . . . . . . . . . . . . . . . . . . . . . 17. Estimated Production of Motor Vehicle Tires in Poland, 1946-55 . . . . . . . . . . . . . . . . . . . . . . . . . 18. Estimated Production of Footwear in Poland, 1946-55 19. Estimated Production of Motor Vehicle Tires in Rumania, 1946-55 . . . . . . . . . . . . . . . . . . . . . . . . . 20. Estimated Production of Motor Vehicle Tires in Communist China, 1946-55 . . . . . . . . . . . . . . . . . . . . . 21. Estimated Production of Motor Vehicle Tires in China, by Plant, 1948- 5 5 . . . . . . . . . . . . . . . . . . . . 9-3 EN e 41 53 60 61 22. Estimated Production of Footwear in Communist China, 1949-57 . . . . . . . . . . . . . . . . . . . . . . . . . 4 23. Estimated Imports of Natural Rubber by the Sino-Soviet Bloc, by Country, 1946-55 . . . . . . . . . . . . . . . . . . . 8 24. Planned Shipments of Synthetic Rubber and Motor Vehicle Tires Within the Soviet Bloc, 1957-60 . . . . . . . . . . 25. Estimated Consumption of Rubber in the USSR, 1946-55 and 1960 . . . . . . . . . . . . . . . . . . . . . . . . 26. Estimated Consumption of Rubber in Albania, 1946-55 71 15 T6 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Page 27. Estimated Consumption of Rubber in Bulgaria, 1946-55 77 28. Estimated Consumption of Rubber in Czechoslovakia, 1946-55 . . . . . . . . . . . . . . . . . . . . . . . . 78 29. Estimated Rubber Consumption in East Germany, 1946-55 ? . 79 30. Estimated Consumption of Rubber in Hungary, 1946-55 ? ? ? 80 31. Estimated Consumption of Rubber in Poland, 1946-55 81 32. Estimated Consumption of Rubber in Rumania, 1946-55 82 33. Estimated Material Balances of Rubber in the Sino-Soviet Bloc, 1946-55 . . . . . . . . . . . . . . . . . . . . . 86 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 CTA/RR PR-155 S-E-G-R-E-T (ORR Project 22.860) Summary During the period following World War II the rubber industry in the Sino-Soviet Bloc has expanded at a rate somewhat greater than that of most other Bloc industries. Although the productive capacity of the rubber industry in the Bloc now meets the essential requirements of the Bloc-wide economy, it is not great enough to provide quantities and varieties of consumer goods comparable to those available to the people of Western Europe. The per capita consumption of rubber in the Bloc in 1955 was only a fraction of that in most countries of the West. The rubber industries of the various countries of the Sino-Soviet Bloc, like those of other countries, are dependent on supplies of natural, synthetic, and reclaimed rubber. The total Bloc supply of these kinds of rubber in 1955 was about 545,000 metric tons.** Of this total, natural rubber -- all of which was imported from non-Bloc countries -- accounted for about 127,000 tons, synthetic rubber for about 314,000 tons, and reclaimed rubber for about 104,000 tons. Of total Bloc production of synthetic rubber in 1955, the USSR produced the greater part, about 240,000 tons. East Germany ac- counted for about 71,000 tons, Poland produced 2,000 tons, Czecho- slovakia produced about 600 tons, and the other European Satellites and Communist China produced negligible amounts, if any. The USSR was also the major producer of reclaimed rubber in 1955, accounting for about 76,000 tons of the 104,000-ton total. The other Bloc countries, except Albania and Communist China, produced amounts ranging from 300 tons in Bulgaria to 10,500 tons in Czechoslovakia. * The estimates and conclusions contained in this report represent the best judgment of ORB as of 1 October 1956. ** Tonnages throughout this report are given in metric tons unless otherwise indicated. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Perhaps the best measure of the development of the rubber industry in any industrialized nation is the production of motor vehicle tiles, including tires for aircraft and military vehicles. Between 1950 and 1955, production of tires in the Sino-Soviet Bloc increased 53,6 percent. Total 1955 production of motor vehicle tires in the Bloc was about 17 million units. The USSR produced about 11.6 million; Czechoslovakia, about 2 million; East Germany, about 1.2 million; Communist China, about 600,000; Poland, about 425,000; Rumania and Hungary, about 195,000 each; and Bulgaria, about 87,000. US produc- tion of motor vehicle tires in 1955 was about 112 million units. Any comparative evaluation of production of tires in countries of the Bloc based on US production, is qualified by differences in the pattern of production. In the US, tires for passenger cars account for a much greater portion of total production of tires than in any of t e Bloc countries. Except for imports of natural rubber from non-Bloc countries, Sino-Soviet Bloc trade in rubber and rubber products is confined largely to intra-Bloc shipments. In 1955, Communist China imported the largest amount of natural rubber, about 40,000 long tons of th 127,185-ton total, mainly from Indochina and Burma. The USSR imported 24,400 long tons; Poland, 23,500 long tons; Czechoslovaki , 23,300 long tons; and the other European Satellites imported the remainder. Perhaps the most significant aspects of the intra-Bloc trade irp rubber and rubber products are probable reshipments of natural rubber from Communist China to the USSR and shipments of synthetic rubber from East Germany to other countries of the Bloc. In 1955, East German exports of synthetic rubber -- controlled by the'USSR through the mechanism of the Council of Mutual Economic Assistance (CEMA) - amounted to 55 percent of total East German production. It is probable that strategic reserves of rubber are maintained only in the USSR. At the end of 1952 the Soviet reserve amounted to about 300,000 tons of natural rubber. From mid-1953 to mid-1955 the USSR purchased no natural rubber in the world markets, and it is probable that to avoid deterioration of the stored rubber, reserve were consumed by the industry. On the basis of that assumption, it is estimated that at the end of 1955 Soviet reserves of natural rubbe were between 50,000 and 100,000 tons. Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 The diversity of application of rubber and rubber products in an industrial economy makes impossible the determination of a detailed pattern of consumption of rubber in the Sino-Soviet Bloc. A general pattern can be established for the USSR, however, on the basis of consumption of rubber in transportation goods and in nontransportation goods. Of the total Soviet supply of rubber in 1955, about 232,400 tons, 67 percent was consumed in the manufacture of transportation goods -- tires, tubes, repair materials, and the like. The manufacture of nontransportation goods -- rubber footwear, hose, belting, sanitary goods, and the like -- consumed 33 percent of the total. It is probable that the pattern of consumption of rubber in the USSR is generally applicable to the Bloc as a whole, except, of course, to Communist China, in which the major rubber product is footwear. The comparable 1955 US pattern of rubber consumption was about 63 percent of the total supply consumed by transportation goods and 37 percent consumed by nontransportation goods. The rubber industry of the Sino-Soviet Bloc currently has the capability of meeting the essential peacetime requirements of the economy of the Bloc. In a wartime economy the industry's 1955 productive capacity would sustain Bloc military activity for about 2 years. At the end of that period the loss of imports of natural rubber without a commensurate increase in production of synthetic rubber would seriously hamper Bloc military effort. Sino-Soviet Bloc plans indicate the clear intent of avoiding this eventuality. The Soviet Sixth Five Year Plan (1956-60) calls for more than a 100-percent increase in the production of synthetic rubber, 525,000 tons in 1960, and a 100-percent increase in the production of motor vehicle tires, 23 million units in 1960. East German plans call for the production of 85,000 tons of synthetic rubber in 1960, a 20-percent increase over 1955 production, and the production of 2.5 million motor vehicle tires in 1960, 1/* a 100-percent increase over 1955 production. Both Hungary and Communist China plan to construct new facilities for the rubber industry, and the USSR undoubtedly will be an active buyer of natural rubber in world markets during the 1956-60 period. The rubber industry of the Sino-Soviet Bloc does not appear to be significantly vulnerable, either in its supply of raw materials * For serially numbered source references, see Appendix C. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400P or in the concentration of its productive facilities. Neither i the industry a reliable indicator of the possible military inten tions of the Bloc. 9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 I. Introduction. Rubber is an essential component of a great many industrial and consumer products, and most modern media of transportation are com- pletely dependent on adequate supplies of rubber. Transportation difficulties of the German armies during World War I clearly demon- strated the strategic importance of rubber. Following the war, how- ever, only Germany and the USSR made serious efforts to develop a synthetic substitute for rubber. _1 By 1939 these two countries alone had well-established synthetic rubber industries. With the dislocation of production and transportation of natural rubber dur- ing World War II, supplies of rubber became of vital importance to all combatants. 3 It was during this period that synthetic rubber was first produced on a large scale in the US. J Synthetic rubber was a major factor in the ultimate victory of the Western Powers. Since 1945 the world demand for rubber has increased much more rapidly than available supplies of natural rubber, and the synthetic rubber industry has continued to thrive. Technological improvements have produced rubber which is made to specifications, and the growth of the industry is likely to continue. The economic importance of synthetic rubber will increase as new applications are developed and standards of living rise in all countries. At the same time, im- proved methods of growing natural rubber and new uses for natural rubber will intensify competition with synthetic rubber, and the rubber industry probably will present a shifting pattern for many years. In the USSR the growth of the synthetic rubber industry has followed pre-World War II planning. The primary concern of the USSR is to be independent of Western sources for its essential strategic raw materials. Because natural rubber grows outside the present Communist-held areas, production of synthetic rubber has expanded rapidly. Planned production for 1955 was 364 percent of prewar production. J As transportation facilities and living standards increase, future expansion probably will follow a similar pattern. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Except for the 19+1-4+8 period, when the rubber industry of he USSR constituted a separate ministry, the industry has always been a part of the Ministry of the Chemical Industry. / Within the Ministry the following three main administrations are responsible for production of rubber and rubber products 7/: the Main Adminis- tration of the Rubber Industry (Glavkauchuk), the Main Administra- tion of the Tire Industry (Glavshinprom), and the Main Administ?a- tion of Industrial Rubber Products and Footwear (Glavrezinprom) The sale and distribution of these products are handled by the ]Vhin Administration for the Sale of Rubber Products, which is a part of the Main Administration for the Sale of Chemical Products (Glav khimsbyt). Although Soviet scientists are extremely capable and devote much time to research on synthetic rubber, there seems to have been little technical advancement in manufacture since 1946. In the USSR the basic raw material, butadiene, has been made from alcohol produced by fermenting such foodstuffs as grain and pota- toes. _! By contrast, the Germans have made synthetic rubber from butadiene derived from calcium carbide and from styrene made from benzol, a byproduct of coal tar. In 1947 the Communists confis- cated the equipment of the German plant at Schkopau and moved it to the USSR. This equipment was put into production with the help of German technical personnel. 9f It is probable that much of the expansion of the industry called for by the Sixth Five Year P1 (1956-60) will be based on the expansion of production of syn- thetic alcohol from petroleum and on the expansion of production of carbide. Thus the growth of the industry will follow the 1946 dictum of Stalin to the effect that nonfood sources should be ex- ploited as raw materials. Expansion of production of Sovprene, a Soviet oilproof rubb r, has been curtailed because the USSR has been able to import other types of oil-resistant rubber from East Germany. 10/ With the planned expansion in production of carbide, it would be possible to expand production of Sovprene should it become urgent for the, USSR to increase present supplies. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C -R-E-T II. Supply. A. Production. 1. USSR. a. General. Production of synthetic rubber in the USSR was begun in the early 1930's and by 1939 had become well established. Although no reliable information is available on production during World War II, the Fourth Five Year Plan (1946-50) showed the postwar importance of the industry in the minds of the Soviet planners. Production of synthetic rubber in 1950 was to be twice that in 1940, whereas the industry as a whole was expected to expand only 48 percent. Produc- tion of motor vehicle tires was to be trebled, production of rubber footwear was to increase one-third, and the announced goal for reclaimed rubber was 56,000 tons. The gains accomplished were impres- sive, but it is probable that the announced plans were not fulfilled. 11/ The Fifth Five Year Plan (1951-55).continued to emphasize the impor- tance of the industry; production of synthetic rubber was scheduled to increase-82 percent by 1955, while the planned increase for all industry was 70 percent. No plans were announced for increases in pro- duction of tires and footwear. The annual announcements concerning plan fulfillments which have appeared since 1951 indicate that the actual increase in production of synthetic rubber between 1950 and 1955 was about 68 percent. Increases in production of tires during the last If years of the Plan were to total 39 percent. In 1954 and 1955, an- nounced increases in production of rubber footwear amounted to 17.5 percent, but the increase in 1955 above 1950 is estimated to have been somewhat less. Although industrial production as a whole exceeded . the planned goals, it would appear that production of synthetic rubber was one of the areas in which plans were not fulfilled. 12/ b. Natural Rubber. In support of Soviet efforts to become independent of foreign sources of strategic raw materials, the USSR experimented with domestic cultivation of rubber bearing plants in the 1930's. Plans for growing such plants as kok-saghyz, tau-saghyz, and guayule on S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 a large scale were interrupted by World War II. 13/ The Fourth Five Year Plan called for 270,000 hectares (more than750,000 acres*) to be planted to these crops by 1950. This acreage would have produced over 7,000 tons of rubber. it/ No announcements were made concerning the realization of this goal, and it is believed that results were disappointing. In any event, the Fifth Five Year Plan made no mention of domestic production of natural rubber. Several factors indicate that, about 1952, Soviet plan ers abandoned the plan to cultivate natural rubber. First, the land requirements to meet the minimum needs of the USSR for natural rubber would amount to several million hectares; at the same time here was urgent need for arable land to implement the new agrarian policy of the USSR.. Second, manpower needed for cultivation and processi g was disproportionate to the amount of rubber produced. It has bee estimated that the cost to produce the raw materials containing 1 on of rubber solids amounted to the equivalent of 120,000 to 11+0,000 rubles. 15/ This amount did not include the cost of extracting th. rubber. By contrast the 1952 average price of natural rubber in Singapore was US $691.75** per ton, 16 2,767 rubles at the offici 1 rate of exchange.Xxx Third, during 1952, other crops were mention d 17/ in the Soviet press as being expanded on lands freed by the abando ment of the rubber program. Fourth, no mention of production of natural rubber has appeared in the Soviet press since 1951. c. Synthetic Rubber. A famous Russian chemist, Lebedov, was the inventor of synthetic rubber. 18/ His discoveries led to the establishment of the industry in the USSR at a time when the Soviet planners wer eager to become independent of foreign sources of strategic raw materials. The Second Five Year Plan (1933-37) called for the building of plants which could produce "several tens of thousands of tons of rubber" per year. Production in 1939 has been estimated at 6+,100 tons, 19/ a 1 made from alcohol obtained by the fermentation of foodstuffs. The end One hectare equals 2.471 acres. All trade values are given in terms of US dollars. The official rate of exchange was 4 rubles = US $1. Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 product was a general-purpose material which could be substituted for natural rubber in most products. Meanwhile, the manufacture of an oil-resistant synthetic rubber had been developed in the US. Soviet attempts to duplicate this material were unsuccessful until the technology of the US manufacturer was made available to the USSR through Lend-Lease during World War II. The USSR built a plant at Yerevan to make Sovprene 20/ (similar to US neoprene) and has continued to make this special-purpose rubber in quantities suffi- cient to meet its needs. The Fourth Five Year Plan called for the development of nonfood sources for making synthetic rubber, and a plant to use petroleum gases was built in the Baku oil region. The Germans had based their process on calcium carbide obtained from coke and limestone, but most of the US industry used petroleum gases as a raw material. After World War II, much of the equipment at the large East German plant located in Schkopau was confiscated and moved to sites in the USSR. German scientists and technicians were used to get these new plants into operation. Details on the individual plants and on rubber technology are given in a previous report. 21/ The estimated production of synthetic rubber in the USSR, by plant, in 1946-55 is shown in Table l.* Sites other than those listed in Table 1 have been reported, but their present status is uncertain, and they have not been included as producers. A large plant has been under construction for several years near Irkutsk, 22/ as a part of the industrial complex being built in that area to utilize local coal. Current information indicates that this plant is not yet in pro- duction. Reclaimed rubber is made by the destructive processing, either chemically or mechanically, of old or discarded rubber products. It is used both to increase the supply of natural rubber and in formulations to impart desired characteristics to finished products. An accurate estimate of production is impossible to obtain, because production is largely dependent on the political and economic situations in the rubber-growing areas and on the quantity of old rubber products available for processing. Furthermore, most of the production of reclaimed rubber is from facilities located in plants Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Estimated Production of Synthetic Rubber in the USSR, by Plant a/ 1946-55 Economic Plant Location Region Plant 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 Kazan' VI SK-4 15 15 20 30 30 30 30 30 30 30 Krasnoyarsk IX SK-9 0 0 0 0 0 5 8 15 15 20 Sumgait V SK-7 0 0 0 0 0 7 10 15 15 20 Tambov VII SK-5 0 0 0 0 0 0 0 5 7 15 Temir-Tau Xa SK-2 0 0 0 0 0 5 10 12 12 15 Voronezh VII SK-2 Kirov N.A. N.A. 10 22 38 4o 44 49 49 55 Yaroslavl' VII SK-1 22 25 30 30 30 30 30 30 30 30 Yefremov VII SK-3 N.A. 5 15 20 25 30 30 30 30 30 Yerevan V SK-1 2 5 15 20 20 25 25 25 25 25 40 50 90 122 143 172 187 211 b/ 213 c/ 240 d/ a. Estimates for 1946-52 are taken from source 23/. For a discussion of individual plant capacities, see Appendix A, Methodology. b. Total production in 1953 was announced as 113 percent of that in 1952. 24/ c. Total production in 1954 was announced as 101 percent of that in 1953. 25/ d. Total production in 1955 was announced as 112 percent of that in 1954. 2E/ Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 that use it for making consumer goods. Reclaimed rubber is considered as a raw material, and for this reason no reports are published on its production. It has been estimated that the rubber-reclaiming capacity of the USSR in 1945 was 30,000 tons. 27/ In addition to the data available on the individual producers, 28/ a reliable indication of the demand for reclaimed rubber in the USSR can be drawn from the consump- tion of new rubber. In the US the consumption of reclaimed rubber ranges from 20 to 30 percent of the new rubber consumed, depending on a number of economic factors such as the availability and price of reclaimed, natural, and synthetic rubber and on the types and potential uses of the rubber products. The USSR is thoroughly familiar with the literature on US practice in the use of reclaimed rubber, and it is probable that the Soviet demand for reclaimed rubber will be within the same general parameter as the US demand. The estimated requirements for reclaimed rubber in the USSR in 1946-55 are shown in Table 2. Estimated Requirements for Reclaimed Rubber in the USSR 1946-55 Year Requirements Year Requirements w 1946 21 1951 50 1947 23 1952 55 1948 30 1953 61 1949 37 1954 68 1950 45 1955 76 a. Estimates for 1946-53 are taken from source 29/. Estimates for 1954-55 are based on the assumption that expansion of requirements for reclaimed rubber would have been proportional to expansion of requirements for new rubber. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 e. Transportation Goods. There are at least 10 plants in the USSR producing tire for motor vehicles and/or aircraft. 30/ It has been concluded that three plants listed in an earlier report -- those at Kazan', Lopasnya, an Ulyanovsk -- probably do not produce tires. No information has ben received on these plants since 1951 nor have any tires traceable to them been reported. It appears probable that these plants make "camelback" (the trade name for retreading material) and are engage t din or re airing tires. One plant has been added to the e p in re r a g earlier list, a plant identified at Fosforitnaya (59038' N - 52027' E). 31/ This plant is reported to make tractor tires, primarily, and production is small. During the past decade the USSR not only has expanded production of motor vehicle tires by installing additional equipment in older plants but also has built at least two new plants. 32/ Otier plants have been mentioned in the Soviet press, but there is no evidence from either reports or markings data that these additional plants are in production. The press reports indicate that future e an- sion of the tire industry will include production capacity in both central and eastern Siberia. The estimated production of motor vehicle tires in the USSR, by plant, in 1946-55 is shown in Table 3.* Carbon black is a special form of essentially pure carbon which, when added to rubber, greatly increases resistance t abrasion and flexing. Carbon black is an essential component of m rubber products, particularly transportation goods. In general, natural rubber requires the admixture of about 25 percent by weigh of carbon black to obtain products of high quality, and synthetic ber needs from 40 to 50 percent to achieve comparable quality. Carbon black is made by burning an organic substance i a controlled supply of air and collecting the resultant "soot," or c rbon. The original process burned natural gas and collected the carbon * Table 3 follows on p. 13. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Estimated Production of Motor Vehicle Tires in the USSR, by Plant a/ 1946-55 Plant Location 1946 1947 1948 1949 1950 1951 1952 1953 1954 1955 Kirov 90 150 300 boo 950 950 950 950 1,000 1,000 Leningrad 300 400 600 650 700 700 720 750 850 900 Fosf or itnaya o o 0 10 10 10 10 10 20 75 Moscow 230 490 900 1,275 1,515 1,550 1,550 1,650 1,800 2,000 Omsk 250 300 450 700 1,000 1,000 1,000 1,000 1,200 1,400 Sverdlovsk 75 90 180 250 300 340 350 400 500 800 Voronezh o o 0 0 0 0 50 400 1,000 1,200 Yaroslavl' 2,000 2,400 2,700 3,100 3,600 ' 3,600 3,600 3,600 3,6oO 3,600 Yerevan 30 41 75 115 170 170 170 200 275 6oo Total 2,975 3,871 5,205 6,700 8,245 8,320 8,400 8,990 10,245 11,575 a. Estimates for 1946-50 are taken from source 33/- Estimates for later years are based on more recent information and announced annual increases, as follows: there was no announced increase for 1951 above 1950 (it was assumed to be 1 percent or less); production in 1952 was 101 percent of that in 1951; production in 1953 was 107 percent of that in 1952; production in 1954 was 114 percent of that in 1953; and production in 1955 was 110 percent of that in 1954. - 13 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 deposited on iron "channels," the product being known as "channel black." An improved method burns petroleum fractions in a furnace to make what are known as "furnace blacks." This process gives higher yields per pound of raw material and is subject to the close control which makes possible the production of grades designed for specific applications. The latest development in the manufacture of carbon black is the production of "high-abrasion" furnace blacks specially suited for tire treads. As far as is known, the USSR has not been able to produce carbon black of this type. The USSR has ample supplies of both natural gas and petroleum, but the Soviet indus- try uses old processes which US industry has improved greatly during recent years. The quality of Soviet tires indicates that similar improvements have not been attained by the USSR. Before World War II the USSR was self-sufficient in the production of carbon black, having built several channel plants in the Baku oil region. 34/ In the postwar period the production of these plants was insufficient to meet the requirements of the expand d rubber industry. The resulting deficiency was met by imports from t .1e US, which produces 90 percent of the world's production. 35/ In 195 the US placed an embargo on exports of carbon black to the Sino-Soviet Bloc, a move which caused the USSR to expand production rapidly, primarily in the gas and petroleum producing areas. 36/ As a conse- quence, the USSR today has adequate supplies of carbon black to mee the needs of its rubber industry. Facilities for the production of carbon black in the USSR in 1955 are shown in Table 4.* g. Tire Cord. During World War II the USSR received as a part of Lend-Lase aid a complete, modern, US-built motor vehicle tire plant. Thus Soviet technicians were fully informed on the importance of high-tensile tire cord as an essential component of heavy-duty tires. For this reaso , the Fourth Five Year Plan called for a special main administration with- in the Soviet textile industry, known as Glavcord, to control the pro- duction of all tire cord. Much technical information was published on the theory of tire construction and the causes of tire failures. 37,1 * Table 14 follows on p. 15. - 14 - Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T Table 4 Facilities for the Production of Carbon Black in the USSR a/ 1955 Metric Tons per Year it Raw Materials Type of Carbon Black Produced y Capac Region I Ukhta (Krutaya) 12,000 Natural gas Channel and furnace Uritsk 4,000 Natural gas Channel Region III Clezendorf 7,000 Natural gas Channel and furnace Region IV Armavir 5,000 Petroleum Furnace l Mozdok 1,500 Natural gas Channe l Malgobek 1,500 Natural gas Channe Krasnodar 6,000 Petroleum Furnace l Maykop 7,000 Natural gas Channe l Novocherkassk 15,000 Natural gas Channe Region V Lok-Batan 3,000 Natural gas Channel d furnace l Bina 6,000 Natural gas and petroleum an Channe l Baku 1,500 Natural gas Channe d furnace l Karadag 3,000 Natural gas and petroleum an Channe a. This table is derived from detailed plant studies which are fully documented and are available in CIA files. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Facilities for the Production of Carbon Black in the USSR 1955 (Continued) Metric Tons per Year Location- Capacity Raw Materials Type of Carbon Black Produced Region VI Kuybyshev 6,000 Natural gas Channel and furnace Saratov 6,000 Natural gas Channel and furnace Region VII Ivanovo 8,000 Petroleum Furnace Yaroslavl' 10,000 Petroleum Furnace Region IX Omsk 9,000 Petroleum Furnace Region XI Irkutsk 1,000 Acetylene Acetylene The industry apparently has followed developments in the US; articles have appeared in Soviet publications regarding the use of nylon and similar poly~amid fibers which the USSR makes under the names of "perl n" and Capron. 38/ There are nine known Soviet tire cord plants which operat under the supervision of Glavcord. 39/ In addition, three plants are known to make perlon fiber which is used in tire cord. Production da-a are lacking on individual plants, but it has been estimated that produc- tion of perlon fiber in 1951 and 1952 was about 5,000 tons per year. 0/ This amount would constitute only a small percentage of the total Soy et requirements for tire cord. It is probable that perlon cord would be used primarily by the USSR in tires for jet aircraft and for motor ve i- cles subject to extreme road conditions. In the US, nylon cord is Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 standard for all aircraft tires and is being adopted for premium heavy-duty tires of all types. A recent survey showed that in 1955 the use of nylon cord in the US increased 100 percent above that in 1954. 41/ On the basis of the motor vehicle park in the USSR and the high usage of trucks compared with passenger cars, it is estimated that truck tires constitute about 90 percent of total Soviet production of motor vehicle tires. 42/ On the basis of average weights, it is estimated that about 5 kilograms (kg) of tire cord would be required to make an average tire. The estimated production of tires in the USSR would levy tire cord requirements in 1953-55 as follows: Requirements Year (Metric Tons) 1953 44,950 1954 51,225 1955 57,587 h. Beadwire. Modern motor vehicle tires have a "bead" at either edge which serves to hold the inflated tire on the rim. These beads must have flexibility and great strength with a minimum of "stretch," or extensibility. Tire beads are made from high-carbon steel, the wire being drawn and either woven or twisted at the steel mill. The beadwire is shipped to the tire plants on spools, and the individual beads are cut and then fabricated by welding. Because of the extreme precautions neces- sary to guard against corrosion, it is not considered feasible to stock- pile or store beadwire or the fabricated beads for extended periods. The average weight of steel in the finished beads varies from 2.5 to 5 percent of the weight of the finished tire, the higher percentage being needed for heavy-duty tires. 43/ Construction of motor vehicle tires in the Sino-Soviet Bloc follows standard practice in Western countries. Soviet-made tires have been carefully analyzed and have been found to contain beadwire similar to that used in the US, the chief difference being that the USSR uses tin or zinc plating instead of copper or bronze. 44/ It is probable that the USSR will be forced to adopt US practice for the construction of tubeless tires because neither tin nor zinc plating produces the adhesion needed in the newer type of tires. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040909-3 Estimated requirements for high-tensile wire in the US are equal to 5 percent of the estimated total weight of all tires produced. This 5-percent figure is used because of the high percen ge of heavy-duty and truck tires made in the USSR. 45/ It is probable that in the European Satellites there is more nearly T _'balance between t number of truck tires and the number of passenger-car tires produce For this reason, Satellite requirements are estimated to be 3.75 percent of the estimated total weight of all tires produced. In the USSR the requirements of the tire industry for steel wire will represent less than 2 percent of the estimated national production of steel wi e, and production of vehicle tires cannot be considered to be a major consumer of steel. Estimated consumption of beadwire in the USSR in 1953-55 is as follows: Consumption Year (Metric Tons) 1953 13,485 1954 15,365 1955 17,362 i. Nontransportation Goods. There are thousands of finished products made from rubber and it is impossible to estimate production in even such broad cate- gories as hose, belting, and mechanical goods. Although production d4ta on rubber products are not given in Soviet publications, one rubber product in the nontransportation field is usually mentioned in the Five Year Plans and in the annual fulfillment announcements -- rubber footwear. This category includes rubber-soled sandals as well as suc usual items as boots, athletic shoes, and overshoes. For this reason the statement appearing in a Soviet chemical magazine in January 1954, to the effect that the industry must produce 91 million pairs of boot and galoshes in 1954 in order to meet its established norm, 46/ does not include other items which appear in Soviet statistics asprubber footwear." Annual increases in production of rubber footwear have bee announced every year since 1945, with the exception of 1953 and 1954. From these announcements and published prewar figures, it has been possible to develop estimates of production of rubber footwear. The Fourth Five Year Plan called for a sevenfold increase in 1950 above Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009.3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T 191+5, but this goal was slightly underfulfilled. The failure was admitted in the official announcement covering the accomplishments during the Plan period. The estimated production of rubber footwear in the USSR in 1945-55 is shown in Table 5. Estimated Production of Rubber Footwear in the USSR 1945-55 Year Announced Production in Terms of Previous Year (Percent) Estimated Production (Million Pairs) 1945 N.A. 14 1946 197 a/ 27 1947 168 b/ 45 1948 137 C/ 62 1949 128 c/ 80 1950 118 c/ 94 1951 111 105 1952 N.A. 105 1953 N.A. 102 1954 103 e/ 105 f/ 1955 N.A. 105 j. Sixth Five Year Plan (1956-60). The Sixth Five Year Plan (1956-60) of the USSR makes several references to the expansion which is to take place in the rubber industry. During the 5-year period it is planned to increase the production of synthetic alcohol approximately 10 times and that of synthetic rubber, 2.2 times. The production capacity for motor vehicle tires is to be doubled during the same period. S-E-C R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 The Sixth Five Year Plan of the USSR specifically provides that new production facilities will be built in various economic regions to meet local needs for rubber products. If these plans are fulfilled., much of the planned expansion, particularly in the tire plants, wilL take place in south-central and eastern Siberia, where such facilit es are now lacking. 2. Albania. a. General. Because Albania is not primarily an industrial country, its production of rubber products is limited to nontransportation goods such as footwear, gloves, and other consumer goods. The local dema d for motor vehicle tires is met by imports from other countries of the Sino-Soviet Bloc. The only rubber plant in Albania is located at Durres (41o20' N - 19?25' E) and is variously reported to have from 70 to 30 employees. 53/ In addition to making consumer goods, the plant at Durres is said to recap worn motor vehicle tires. 54/ No statistic are published on the quantities of various products made, but occasiona notices appear in the Albanian press indicating that the plant has fulfilled its production plan. b. Nonrubber Components. Because the rubber industry of Albania is limited to producing nontransportation goods, the only nonrubber component of i or- tance is carbon black, which is used in footwear and some other consumer goods. All of the raw materials needed by the rubber industry, exce t the small amount of fabric used in footwear, must be imported. 3? Bulgaria. The manufacture of rubber products is considered to be o e of the principal industries of Bulgaria and was scheduled to undergo a 90-percent expansion between 1952 and 1957. 55 For administrative * For a discussion of the estimated volume of these imports, see C, p. 67, below. Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 purposes, rubber plants are under the Ministry of Light and Food Industries and are controlled by the Director of the Leather and Rubber Industries. 56/ b. Natural Rubber. As early as 1942, Bulgaria was reported to be experimenting with the production of natural rubber from shrubs. 57/ Since the USSR obtained control of the country, these experiments have been extended to include the cultivation of kok-saghyz. As late as March 1954, it was announced that further plantings of rubber bearing plants would continue during the year. 58/ No announcements have been made about the success or failure of the project, which probably has been dropped. As noted in Table 23,* Bulgaria continues to import its requirements for natural rubber from the West and from other countries of the Sino-Soviet Bloc. c. Synthetic Rubber. Bulgaria does not make synthetic rubber. It is dependent on imports from the USSR and possibly from East Germany to meet its needs. d. Reclaimed Rubber. As previously reported, production of reclaimed rubber in Bulgaria was started in 1950, 59/ principally in the only motor vehicle tire plant (see e, below) in the country. This production is used in the plant, and no statistics are published on production. It was reported that 90 to 120 tons of reclaimed rubber were consumed in the tire plant in 1950. 60/ The estimate of production of reclaimed rubber in Bulgaria in 1950-55, as shown in the following tabulation, is based on the growth of the tire industry: Year Production (Metric Tons) 1950 90 1951 100 1952 150 1953 200 1954 250 1955 300 * P. 6b, below. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 e. Transportation Goods. The manufacture of motor vehicle tires in Bulgaria is entirely. state controlled. The only plant in Bulgaria is the Georgi Dimitr State Rubber Factory in Sofia, which employs about 1,500 workers. 11 The plant was privately owned until 1948, when it was seized from We owner. It had made footwear and consumer goods in addition to tir s. After 1951, however, production was limited principally to truck ties. In 1954, new buildings were added, 62/ and new machines from the US and East Germany were to be installed, 7/ thus increasing the capacity of the plant 50 percent. 64/ The rate of production in 1954 was reported to be about 75,000 tires per year, 65/ and it was claimed that this rate increased by about 1,000 per month in 1955. 66/ The estimated production of motor vehicle tires in Bulgaria in 1946-55 is shown in Table 6. Table 6 Estimated Production of Motor Vehicle Tires in Bulgaria a/ 1946-55 Year Production Year Production 1946 5.0 1947 8.o 1948 12.5 1949 26.9 1950 x+2.7 1951 55.0 1952 60.0 1953 65.8 1954 75.0 1955 87.0 a. L7/. All figures are rounded to the nearest hundred. Bulgaria does not produce any carbon black and so must eet its requirements through imports from other countries of the Sino-S viet Bloc. The volume of this business is discussed below.* See C, p. 67, below, and III', p. 73, below. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 g. Tire Cord. The textile industry of Bulgaria is primarily concerned with the manufacture of cotton fabrics. As late as 1951+ there were no artificial fibers produced or used in Bulgaria. 68/ There have been no reports of synthetic fiber cord being imported by Bulgaria. Based on these negative data, it is assumed that all tire cord made or used in Bulgaria is cotton. Using the standard of 5 kg of cord per tire, estimated requirements for tire cord in Bulgaria in 1953-55 are as follows: Requirements Year (Metric Tons) 1953 329 1954 375 1955 435 Bulgaria has no wire-producing facilities and is dependent on imports for its requirements. The estimated consumption of bead- wire in 1953-55 in Bulgaria is as follows*: Consumption Year (Metric Tons) 1953 74 1954 84 1955 98 i. Nontransportation Goods. Approximately eight rubber plants in Bulgaria, the majority of which are located in Sofia, make a wide variety of consumer goods, including footwear, rainwear, sanitary goods, belting, hose, and similar products.** 69/ No statistics have been published on the total annual production of individual products. It is reported, however, that the principal footwear plant, located at Sveto Vrachene (42042' N - 23?25' E), produced rubber footwear at a rate of 3 million pairs per year in 1954- 70 * Based on the same ratio used for the USSR. Details on these plants are meager. It is probable, however, that fewer than 5,000 workers are employed in all of them. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 4. Czechoslovakia. The rubber industry of Czechoslovakia is controlled and administered by the Ministry of Chemical Production. The industry i highly developed and not only is capable of meeting domestic requirements but also exports its products to other European Satellites. It was reported that production in the industry increased 126 percent durin the First Five Year Plan (1949-53), 71/ and the Minister of the Chem cal Industry claimed that production increased 176 percent between 1948 nd 1955, 72/ compared with the 145-percent increase for all the chemica industries. The planned expansion in the first year of the Second Five Year Plan (1956-60) calls for an increase of 10 percent in the rubbe industry, 73/ which is only slightly higher than the planned expansi;n of 9.7 percent for the chemical industry. Very little data have bee received on individual plants since 1952; so estimates can be derive only from previous reports and a few claims of expanded operations. In 1949 the Soviet Minister of Agriculture ordered the cultivation of kok-saghyz in Czechoslovakia 74/ and efforts were madle to expand this crop during the succeeding years. In 1951, production o 150 tons was expected. 75/ No publicity has been given to the progr since 1951, and in view of the small yield, compared with an estimat annual consumption of about 20,000 tons of natural rubber, it is probable It was reported that a plant producing an oil-resistant r bber known as "svitpren" (neoprene) was put into operation in Czechoslovakia during World War II. This plant reportedly produced about 3,000 tons in 1942. The plant was, however, destroyed during the war and has not been rebuilt, 76/ but production of synthetic rubber apparently has continzed in Czechoslovakia on an experimental basis. Scientific publications in- Zlin) to meet domestic requirements for oil-resistant rubber. 77 Re ent press notices indicated that a general-purpose synthetic rubber for u?e in tires and related products is not being made. On 2 August 1955 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 an article in the Bratislava press stated that Czechoslovak officials are planning the construction of the first synthetic rubber plant. 78/ The estimated production of synthetic rubber in Czechoslovakia in 1946-55 is shown in Table 7. Estimated Production of Synthetic Rubber in Czechoslovakia 1946-55 Metric Tons Year Production Year Production 1946 N.A. 1951 450 1947 40 1952 500 1948 300 1953 550 a/ 1949 350 1954 575 1950 400 1955 6oo b/ a. 797 b. $0/ d. Reclaimed Rubber. Production of reclaimed rubber is well-established in Czechoslovakia. Three plants are reported to be in production, but no figures are available on their individual capacities. 81/ Govern- ment operational plans for the 4th quarter of 1949 indicated a produc- tion of 6,140 tons of reclaimed rubber and a requirement of 9,000 tons. Consumption of new rubber in the same year was estimated to be 38,570 tons, which would be roughly 4 tons of new rubber to 1 ton of reclaimed rubber. 82/ (In the US the ratio is about 6 to 1 in the transportation sector of the industry and 3.6 to 1 in the nontransportation sector. 8,3-,/) It is believed that the reclaimed rubber industry in Czechoslovakia will continue to expand at a rate sufficient to maintain production in approximately this ratio. The estimated production of reclaimed rubber in Czechoslovakia in 1946-55 is shown in the following tabulation: Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400P Year Production (Metric Tons) Year Production (Metric Tons) 1946 4,500 1951 7,000 1947 5,000 1952 8,000 1948 5,500 1953 9,000 1949 6,000 1954 9,750 1950 6,500 1955 10,500 9-3 e. Transportation Goods. As shown in Table 10,* Czechoslovakia is the major producer of motor vehicle tires among the European Satellites, its production accounting for more than one-half of the motor vehicle tires made in the Sino-Soviet Bloc outside the USSR. Before World War II the French Michelin firm had a branch plant in Prague, and the Bata interests had a large plant in Gottwaldov. The plant in Gottwaldov continues to b by far the largest tire plant in the country. All rubber plants in Czechoslovakia have been nationalized. The First Five Year Plan of Czechoslovakia called for a 64-percent increase in production of motor vehicle tires in 1953 corn pared with that in 1949, an average increase of 10 percent per year. The Czechoslovak State Statistical Office reported an increase Burin the period of 126 percent for the rubber industry as a whole but did not specify whether this increase was reported in monetary value or units of production. Tires were not mentioned in the report. 84/ Du ing the same period, total industrial production "more than doubled." No plans for production of tires were mentioned in the annual plans 1954 or 1955, and no goals have been announced for the current Five Plan. Production of truck tires in 1954 was announced as "greater t planned," and production of footwear, as 107 percent of that in 1953. No press announcements have appeared that would indicate the major e pansion of any of the tire plants. It therefore seems reasonable to assume that production of tires since 1953 has not been expanded at rate greater than 10 percent per year. The estimated production of motor vehicle tires in Czechoslovakia in 1946-55 is shown in Table 8. or ear an 85 Table 8 is based on data previously published ?/ and repre- sents a conservative estimate based on a restudy of several hundred docu- ments pertaining to the individual tire plants in Czechoslovakia. A recent report by the Council of Mutual Economic Assistance (CEMA) on the * P.--34) below. Table 8 follows on p. 27. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Table 8 Estimated Production of Motor Vehicle Tires in Czechoslovakia a/ 1946-55 Thousand Units Year Production Year Production 1946 310 1951 1,570 1947 712 1952 1,660 1948 953 1953 1,750 1949 1,150 1954 1,875 1950 1,390 1955 2,000 a. Estimates on the production by individ- ual plants is shown in Table 10, p. 34, below. planned production of tires between 1957 and 1960 indicates a much smaller production of tires in Czechoslovakia. According to this docu- ment, 211 production of "automobile tires" during this period will be as follows: Production Year (Thousands) 1957 1,100 1958 1,205 1959 1,280 1960 1,375 The report specifies "automobile tires," but normal statistical methods report "motor vehicle tires," which include equipment for all types of motor-driven vehicles. The estimates of production in the other European Satellites are consistent with CIA. estimates. The figures given for Czechoslovakia, however, are considerably below those given in many other documents. The weight of the evidence now available substantiates the figures in Table 8. During 1954 and 1955, quantity rather than quality seems to have been stressed in the motor vehicle tire industry of Czechoslovakia. In 1954, West Germany reported that the tires made in Czechoslovakia with which imported "Skoda" motor vehicles were fitted were "entirely worn out" after 5,000 kilometers (km) (about 3,000 miles). 88 More - 27 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040099-3 recently, 6,000 "Barum" tires (made at Gottwaldov) were imported by Bolivia. The Bolivian government bought them from the importer and supplied them to the participants in a national automobile race. The results were disastrous because the tires failed before the race was half completed. The Bolivians have demanded a refund of the dollar price of the tires. ?9j Czechoslovak authorities apparently have taken a serious view of this complaint and have sent a mission to La Paz to investigate. 20/ It has also been reported that Czechoslovakia sold 100,000 tires to Communist China in 1955 and that China protested that the tires developed longitudinal cracks in the treads before the were put into service. 91 Early in 1955 the formation of a cooperative between the Czechoslovak and Polish rubber manufacturers was announced. Its obje - tive.was to improve both the quality of the products and the methods of manufacture. All tire producers in Czechoslovakia and Poland were in- cluded in this organization. 92 Czechoslovakia has only one plant which produces carbon black. This plant is located at Moravska Ostrava (49?50' N - 18?15' ) and is known as Urxovy Zavody. The plant makes carbon black by burning anthracene, a byproduct of coal tar. It was reported to have 1,200 workers in 1950 and was operating at a rate of 2,500 tons per year in 1952. 931* Because Czechoslovakia requires approximately 20,000 tons of carbon black per year, it obviously is heavily dependent on import. to meet its needs. g. Tire Cord. Czechoslovakia manufactures tire cord of cotton, rayon, a ad perlon. Rayon cord is exported to other countries of the Sino-Soviet Bloc in addition to being used for heavy-duty tires made in Czecho- slovakia. Cotton cord is produced at the Svit National Enterprise at Otrokovice. 95 Rayon cord is produced in the recently built rayo plant at Senica, Slovakia. 96 No information has been published on production at either of these plants, although Svit was reported to have produced about 1,300 tons of cotton cord in 1950. 97 * The First Five Year Plan of Czechoslovakia called for a production schedule for carbon black in the leather and rubber industry of 8,086 tons in 1949, 8,618 tons in 1950, 8,947 tons in 1951, 10,1+61 tons in 1952, and 11,184 tons in 1953. 94 There is no evidence that these goals were met. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400P9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 Rayon cord was formerly imported from the West, but when restrictions were placed on its export by the Western European coun- tries in 1949, Czechoslovakia began to produce rayon cord. The domes- tic product is reported to be inferior to the imported material. 98 Czechoslovakia is also reported to be making some tire cord out of perlon, a type of nylon. Nothing is known, however, of the rela- tive amounts of cotton, rayon, and perlon that are used in tire cord. On the basis of an average of 5 kg of cord per tire, Czechoslovakia's requirements for tire cord in 1953-55 are estimated as follows: Year Requirements (Metric Tons) 1953 8,750 1954 9,375 1955 10,000 Czechoslovakia has a large steel industry and is a major producer of wire. In 1953 it was reported that Czechoslovakia not only produced its own beadwire but also exported large quantities to East Germany. 99 Domestic requirements for beadwire in Czechoslovakia in 1953-55 are estimated as follows: Year Requirements (Metric Tons) 1953 1,969 1954 2,109 1955 2,250 i. Nontransportation Goods. Czechoslovakia has long been a manufacturer of all types of rubber products, including footwear, belting, hose, and industrial and sanitary items. No. data have been published on the volume or value of these products. In 1954 the Czechoslovak press stated that the people had bought 69.3 million pairs of rubber shoes during the period of the First Five Year Plan. 199 Also, the State Planning Office announced in 1954 that production of rubber work shoes in 1953 was 120 percent of that in 1952 101 and that production in 1952 was 111 percent of that in 1951. Based on the average annual purchases during the First Five Year Plan and the announced annual increases in production which have taken place, production of rubber shoes is estimated to be about Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 S -E-C -R-E-T 20 million to 25 million pairs per year. There is no method of esti- mating the volume or value of other rubber products made. 5. East Germany. a. General. One of the most serious shortages experienced by the Germans in World War I was that of rubber. Consequently, Germany was a pioneer in the development of a satisfactory synthetic substitute. Before Wor d War II, production of synthetic rubber had increased more than 20,000 tons per year, and this amount was expanded rapidly during the war. The principal producer was the I.G. Farben plant at Schkopau (51024' N - 11059' E), located in what is now East Germany. Heavy air raids in 1944 reduced production to a minimum, but it was increased as soon as the fighting ceased. 102 The Soviet dismantling of industrial facilities in 1947-48 again reduced plant capacity. When the USSR gained politic 1 control of the country, rehabilitation of the chemical and rubber plants received high priority, and production at Schkopau has progressively increased since 1949, as shown in Table 9.* The Second Five Year Plan (1956-60) of East Germany calls for the expansion of production to 85,000 tons per year by 1960. 103 Before 1945 the German rubber plants were located principally in the area which is now West Germany. With the partition of the country the USSR was faced with the task of building up capacity to make motor vehicle tires, belting, hose, footwear, and other rubber articles. 104 For most rubber products, capacity appears to be adequate to meet the minimum domestic requirements. In the field of motor vehicle tires, however, a serious shortage still exists.** Because the plant at Schkopau was one of the most important chemical plants in East Germany, it was among the first to be organize into a state-owned company (Sowjetische Aktiengesellschaft -- SAG) im- mediately after the USSR gained control of the country. On 1 January 1954 it was returned to East German control to be organized as a peoples- owned enterprise (Volkseigener Betrieb -- VEB). 105/ Operation of the plant is officially controlled by the Ministry for Heavy Industry, which also supervises the production of motor vehicle tires. 106 The synthet- ic rubber produced is distributed by two agencies: the DIA Chemie (Deutscher Innen- and Aussenhandel Chemie -- German Domestic and Foreign * P. 31, below. ** See III) p. 73, below. Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Trade for Chemicals), which handles priority export shipments, and the DHZ (State Administration for Material Supply), which allocates synthetic rubber to domestic consumers. Planning the distribution between domestic demand and export is done at the ministerial level and is the result of negotiations among the Ministry for Heavy Industry, domestic consumers, and the Soviet authorities. b. Natural Rubber. East Germany is the only European Satellite which has shown no interest in the domestic production of natural rubber. As far as is known, no attempts have been made to grow any of the rubber-bearing shrubs or vines. As a result, the country is wholly dependent on imports to meet its requirements. c. Synthetic Rubber. As previously mentioned, East Germany is the chief producer of synthetic rubber in the Sino-Soviet Bloc. The only producing plant, located at Schkopau, uses a process developed by the Germans, based on the conversion of acetylene 10 (obtained from calcium carbide) to buta- diene. The latter is mixed with styrene derived from a coal-tar product, and the mixture is polymerized. Thus the basic raw materials of the process are calcium carbide and coal tar. In addition to these, other organic chemicals may be used to make an oil-resistant synthetic rubber. It is significant that manufacture of the German products is based on the use of heavy chemicals as raw materials, in contrast to the Soviet process which is primarily dependent on alcohol derived from foodstuffs, such as grain and potatoes. The estimated production of synthetic rubber in East Germany in 1946-55 and 1960 is shown in Table 9. Table 9 Estimated Production of Synthetic Rubber in East Germany 1946-55 and 1960 Metric. Tons Year Production Year Production 1946 23,997 -a/ 1952 56,300 1947 28,460 1953 62,131 1 1948 30,700 1954 67,707 1 1949 26,500 1955 70,685 / 1950 39,008 1960 85,000 e 1951 48,853 a. 10 d 111 b . 109 e. 112 C. 110 - 31 - S -E-C -R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 No statistical information has been published since 1952 on either production or plans for production of reclaimed rubber in Est Germany. Because of the severe shortage of motor vehicle tires in Ea t Germany, 113/ it is believed that production of reclaimed rubber has not kept pace with other sectors of the rubber industry -- old tires the principal raw material for making reclaimed rubber, and even old tires are scarce in East Germany. The manufacture of reclaimed rubber is carried out as a part of the production operations in fabri eating plants, so reclaimed rubber is a "captive" product. Consequen~ly, it does not appear in East German statistics as an end product. Estimates of production are therefore based on previously published information, the growth of the rubber industry as a whole, and the pr~bable availability of raw materials. The estimated production of reclaimed rubber in East Germany in 1946-55 is shown in the following tabulation*: Production Production Year (Metric Tons) Year (Metric Tons) 1946 1,500 1951 3,770 1947 2,000 1952 4,200 1948 2,500 1953 5,000 1949 3,000 1954 5,500 1950 3,300 1955 6,500 There are 5 plants making motor vehicle tires in East Ger only 2 of which were in production in 1946. 116/ Because more than 9 percent of the rubber fabricating capacity before World War II was 1 in what is now West Germany, production of tires was seriously inadeq in East Germany, not only to meet consumer demand but also to supply for the Soviet occupying forces. In an effort to relieve this short new equipment was added to existing tire plants as well as to other * For further information, see Appendix A, Methodology. Estimates fir 1946-53 are taken from source 114. Estimates for 1954 are based on nominal increase above those for 1953. Late in 1954 the authorities in East Berlin put on a scrap rubber drive to get more old tires for reclaiming. 115/ It is assumed that this effort would result in an increase in available raw material and a resulting increase in production in 1955. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 rubber fabricating plants. In spite of the rapid expansion which has taken place, the supply situation is still serious. In official market analyses, mention is made of vehicles being "idle due to shortage of tires." 117/ It was estimated in November 195+ that in spite of increased production in 1955, there would be a shortage of 1 million tires at the end of that year. 118/ The Second Five Year Plan (1956-60) of East Germany calls for a capital expenditure of 130 million East German marks (DME) for the expansion of the tire industry, 119/ with a production goal of 2.2 million to 2.8 million tires by 1960. 120 The estimated production of motor vehicle tires in the European Satellites, by country and by plant, in 19+6-55 is shown in Table 10.* East Germany produces little or no natural gas and so has developed other materials as sources of carbon black for its rubber industry. The principal basic material is acetylene gas generated from calcium carbide, which, when burned in a controlled supply of air, yields a form of carbon called acetylene black, which can be used to reinforce rubber. Although acetylene black does not produce rubber compounds with the high resistance to abrasion which is achieved with gas blacks such as are made in the USSR and Rumania, it nevertheless can be used for most rubber products. Acetylene black also can be used to make a rubber compound which is electrically conductive, a product which has several strategic uses. For this reason, East Germany exports to other countries of the Sino-Soviet Bloc some acetylene black in exchange for a conventional type of black needed for tire treads. In addition to acetylene black, East Germany makes a small amount of carbon black by burning anthracene, a byproduct of coal tar which has limited industrial use. The resultant product is similar to channel black made from natural gas. Production from this source is small. After the USSR and Rumania, East Germany is the largest producer of carbon black in the Sino-Soviet Bloc. Production is concen- trated in three plants. The estimated production of carbon black in East Germany, by plant, in 1950-55 is shown in Table ll.** Table 10 follows on P- 34. Table 11 follows on p. 36. (Text continued on p. 37.) Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Estimated Production of Motor Vehicle Tires in the European Satellites by Country and by Plant a/* 1946-55 Location plant 1946 1.947 1948 1949 1950 1951 1952 1953 1954 1955 Bulgaria Sofia Georgi Dimitrov 5.0 8.0 12.5 26.9 42.7 55.0 60.0 65.8 75.0 J 87.0 J Czechoslovakia Bratislava/Petrza lka Matador 10.0 30.0 20.0 Gottwaldov Svit/Rudy Rijen 210.0 416.0 603.0 720.0 800.0 850.0 870.0 900.0 945.0 1,000.0 Nachod Rubena 50.0 150.0 180.0 210.0 300.0 340.0 360.0 390.0 405.0 425.0 Prague Slovakian National Revolution 40.0 116.0 150.0 220.0 280.0 360.0 400.0 410.0 450.0 475.0 Puchov Matador 10.0 20.0 30.0 50.0 75.0 100.0 Total 310.0 17 2.0 953.0 1,150.0 1,390.0 1,570.0 1,66o.o 1,750.0 1,875.0 2,000.0 East Germany Berlin/Schmoeckwitz Mueller 1.5 3.0 10.2 25.0 64.0 91.0 118.5 120.0 150.0 165.0 Heidenau VEB Reifenwerk 0 0 4.0 15.0 49.0 55.0 50.0 30.0 30.0 30.0 Ketchendorf VEB Deka 22.0 32.0 72.0 147.0 200.0 345.0 400.0 530.0 600.o 658.2 Klein Wittenberg VEB Elbe 0.8 6.0 18.0 20.0 Riesa VEB Riesa 4.0 17.8 30.0 81.0 120.0 203.0 230.0 341.7 352.0 23-5 .0 104.0 217.0 4.0 611.0 772.3 916.o 1,139.7 1,225.2 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T Estimated Production of Motor Vehicle Tires in the European Satellites by Country and by Plant 1 1946-55 (Continued) Location Plant 194+6 191+7 19+8 19+9 1950 1951 1952 1 953 1954 1955 Hungary Budapest Poland Magyar 72.0 105.5 120.0 160.0 175.0 180.0 195.0 &/ Bebica Stomil Poznan Stcmil 172.0 215.0 250.0 310.0 360.0 420.0 425.0 26.0 141.0 L&. 0 215.0 25o.0 310-o 360.0 / 420.0 425.0 Baicoi Banloc 35.0 62.0 85.0 90.0 95.0 105.0 125.0 135.0 150.0 Brasov Cauciuc Brasov 5.0 6.0 10.0 15.0 15.0 20.0 25.0 35.0 45.0 20.0 40.0 68.0 95.0 l 0 110 0 12 ? . 5.0 150.0 170.0 l/ 195.0 414.5 925.0 1,333.5 1,732.9 2,252.2 2 716.0 3 087 3 41 8 3 , , . 5. , 3,859.7 4,054.6 a. Figures are rounded to the nearest hundred. Estimates for 1946-52 are taken from source 121 . e. 12 d e. ff Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C -R-E-T Table 11 Estimated Production of Carbon Black in East Germany, by Plant 1950-55 Location 1950 1951 1952 1953 1954 195 Plan 400 a/ 400 400 400 400 350 600 900 1,200 2,400 b/ 2,400 2,500 C/ 14,195 d/ 14,100 14,000 12,500 15,600 16,035 e/ Blankenburg Hydrocarbon Blankenburg Oranienburg Russwerk Oranienburg Stickstoffwerk Piesteritz Piesteritz Total 15,195 a. 131/ b. 132/ C. 133/ d. 13+/ e. 135/ - 36 - 0 15, 4OO 15,600 15,30 18,4oo 18,885 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 g. Tire Cord. East Germany produces large quantities of both rayon and perlon but has no domestic production of cotton. Consequently, all tires produced in East Germany are made with synthetic fiber cord. Analysis of yearly plans shows that ample supplies of rayon and caprolactum, the raw material for perlon, are available. Actual produc- tion of rayon tire cord in 1954 was 4,398 tons, and planned production of perlon cord for the same year was 542 tons. 136/ Planned production for 1955 was. 332 tons of perlon cord and 4,630 tons of rayon cord. 137 Analyses indicate that tires for passenger cars comprise about 50 percent of the total production of motor vehicle tires in East Germany. In estimating consumption of tire cord in East Germany, it therefore can be assumed that the average tire will need 4 kg of cord, based on an average of 3. kg of cord for a passenger-car tire and 5 kg for a truck tire. The estimated consumption of tire cord in East Germany in 1953-55 is. shown in the following tabulation: Year Consumption (Metric Tons) 1953 3,440 1954 4,560 1955 4,600 East Germany produces about 50 percent of its requirements for beadwire and is dependent on imports for the remaining 50 percent. 138/ Available information indicates that there is an over-all shortage of steel wire in East Germany. 139/ Based on the number of tires produced, an estimate of the steel requirements of the rubber industry in East Germany in 1953-55 is shown in the following tabulation: Year Requirements (Metric Tons) 1953 990 1954 1,280 1955 1,460 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 i. Nontransportation Goods. East Germany produces a wide variety of nontranspor ation consumer goods, such as footwear, conveyor belts, rubberized fabrics, and rainwear. Except for footwear, few statistics are availabl on the volume of these products. Production of conveyor belts was reported to be 1.5 million square meters in 1954, with a planne pro- duction of 2.4 million square meters in 1960. 140/ Most of the e conveyor belts are exported to other countries of the Sino-Sovi t Bloc. Production of footwear has increased gradually since but production is apparently considerably below demand. Statist are not entirely satisfactory since "footwear, boots, overshoes, overboots" appear with disconcerting duplication. The estimated duction of footwear in East Germany in 1946-55 is shown in Table Estimated Production of Footwear in East Germany 1946-55 1946 N.A. 1947 N.A. 1948 1,469.6 a/ 1949 850 (planned) b 1950 737.94 c/ x.,200 planned) 1,000, planned) e 1,200 planned) f/ 2,400 g/ 2,484 W 1951 1952 1953 1954 1955 b. 1T+2/ e. 1T+5/ h. 1 c . 17+3/ f . '"/ 1946, ics and pro- 12. The demand for rubber boots and shoes in East German has been estimated to be 9 million pairs per year. 149/ It seems pr bable that production is limited somewhat by both a shortage of equipment and a lack of rubber. - 38 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400c 9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 6. Hungary. Before World War II, production of rubber products in Hungary re resented only about 1.2 percent of its industrial produc- tion. 1507 Since the USSR gained control of Hungary, the rubber industry has been expanded at about the same rate as other industries. The plants were in private hands before the war, but they were nation- alized in December 1949 and placed under the control of the Main Admin- istration for the Rubber Industry. The First Five Year Plan of Hungary (1950-54) called for expansion of the industry by 154 percent between 1949 and 1954. Actual production in 1954 was announced by the Minister of the Chemical Industry as 300 percent of that in 1949. 151/ A press statement mentions an increase of 188.3 percent. 152/ b. Natural Rubber. Hungary is dependent on imports for its supplies of natural rubber. In 1938, imports were valued at $56o,ooo, 153 J and in 1947 the value was $646,000. 154/ In an effort to reduce this burden of foreign exchange, Hungarian planners proposed to grow kok-saghyz, using seed supplies under the Soviet-Hungarian trade agreement of 1 August 1949. Much publicity was given to the program in 1951, with promises of large financial returns to be realized from growing kok-saghyz. The First Five Year Plan called for 5,000 acres to be under cultivation by 1954. Nothing has been published on the results obtained from this grandiose scheme, and it is doubtful if there is any significant pro- duction today. c. Synthetic Rubber. During World War II the Germans started the construction of a synthetic rubber plant in Hungary, which was to be the largest of its kind outside of Germany. The plant never got into production, and the Hungarians have since converted the plant to other uses. As a part of the development of a petrochemical industry, the USSR planned to produce synthetic rubber which used natural gas as a raw material. A joint Hungarian-Rumanian company backed by the USSR was formed for this purpose, and construction was reported to have started on a plant located at Szeged (46015' N - 20009' E), close to the Hungarian-Rumanian border. Planned production for 1956 was said - 39 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 to be 23,000 tons.. 155/ It is believed that construction of this plant is lagging because parts of it are only now reported to be under construction. A later report states that production will start dur g the Second Five Year Plan of Hungary (1956-60). 156 d. Reclaimed Rubber. Only one plant reclaims rubber in Hungary, and because t consumes this material in its own operations, no production statistics are available. Because of the severe shortage of tires that exists in Hungary 157 J and the consequent use of tires until they are com- pletely worn out, it is doubtful if the necessary raw material is available for an extensive rubber-reclaiming industry. The estimat d production of reclaimed rubber in Hungary in 1946-55 is shown in Table 13. Estimated Production of Reclaimed Rubber in Hungary / 1946-55 Year Production Year Production 1946 500 1951 3,000 1947 goo 1952 N.A. 1948 1,900 1953 5,200 1949 2,200 1954 5,500 1950 N.A. 1955 5,800 a. Estimates for 19~T-53 are taken from source 158/. Those for 1954 and 1955 are based on an expansion of total rubber con- sumption in Hungary. Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 e. Transportation Goods. There is only one manufacturer of motor vehicle tires in Hungary, the Elsoe Magyar Ruggyantaarugyar Rubber Plant located in Budapest (47030' N - 19005' E). 159 It was established before World War II as a Hungarian subsidiary of the Dunlop Rubber Company of England and was considered to be one of the finest tire plants in Europe. The plant was seized by the USSR and is operated as a state-owned enterprise. The importance which is attached to this was indicated by the report that in 1949 the rubber industry of Hungary would require 30,000 tons of coal as fuel, of which 90 percent would be assigned to this plant. 160 The plant also makes a wide variety of other consumer goods and was reported to have 4,000 employees in April 1955. 161/ The estimated production of motor vehicle tires in Hungary in 19V-55 is shown in Table 14. Table 14 Estimated Production of Motor Vehicle Tires in Hungary a/ 1946-55 Thousand Units Year Production Year Production 1946 30 1951 120 1947 48 1952 160 1948 55 1953 175 1949 72 1954 (Plan) 180 1950 105 1955 195 b a. 162/ b. 1T3' f. Carbon Black. Since the end of World War II, Hungary has produced a small amount of carbon black in conjunction with its natural gas and petroleum industries. 164/ A small channel-type plant was built at Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approve; For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Lispesze tadorjan (46032' N - 16?42' E), which was reported to have a small capacity and to be very inefficient. 165 A modern plant wasoscheduled to be built in 1952 near the city of Nagykanizsa (46027' - 16?59' E), which was planned to satisfy the domestic demand for carb n black and provide some black for export. 166/ No published reports have been received which would indicate the completion of this plant or any exports of carbon black by Hungary. For these reasons, it seems probable that Hungary is still dependent on imports for its major requirements for carbon black. Production at the Lispeszentad rjan plant, from descriptions of the facilities, is estimated to be 1,000 tons per ear, compared with an estimated demand of 2,000 to 3,000 tons per ear. Tire Cord. Although both rayon and cotton cord are consumed in Hungary, the domestic production of rayon is of such poor quality as to preclude its use i tires. 167/ For this reason, rayon cord is imported. In the third quarter of 1951, Hungary purchased 30 tons of rayon cord from one firm n Milan. 168 It was reported that early in 1954 Hungary was purchasin approximately 100 tons of rayon cord per month from the Enka Company o the UK. 169 No shipments of perlon or nylon cord into Hungary have been reported, nor is there any known domestic producti of these terials. Hungary's requirements for tire cord in 1953-55, based on is estimated production of tires, is shown in the following tabulatio : Requirements Year (Metric Tons) 1953 875 1954 goo 1955 975 Hungary has a domestic production of steel wire adequate to meet t requirements of its rubber industry. 170 Unlike the USSR, Hungary uses a copper-coated wire for making tire Bads. Consumption of beadwire in Hungary in 1953-55 is shown in the following tabulatio : - 42 - Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Consumption Year (Metric Tons) 1953 200 1954 205 1955 220 i. Nontransportation Goods. Motor vehicle. tires are estimated to account for approxi- mately one-half of the rubber consumption in Hungary, other products being footwear and rubber soles, industrial goods, and sanitary articles. Only fragmentary information is available on the production of individual items. Estimating production of rubber footwear is difficult because Hungarian statistics include leather sandals with rubber soles in the category of "rubber footwear. One report in 1950 stated that production of rubber shoes in 1949 was 360,000 pairs, compared with 250,000 pairs in 1948. 171/ Statements by government officials indicate that the total production of all types of rubber footwear in 1949 was about 1.36 million pairs. The First Five Year Plan called for an increase of 81 percent in 1954 above the level in 1949, and a major expansion of the footwear industry was undertaken during 1952 and 1953. This expansion resulted in a sharp increase in the production of all types of footwear. Government statistics during the First Five Year Plan have not differentiated between rubber and leather footwear; hence the figures in Table 15,* showing the estimated production of rubber footwear in Hungary in 1948-55, have been developed from the announced production of all types of footwear, assuming the same proportion of rubber shoes that prevailed in 1949. Production of rubber footwear in 1955 was reported to be 5.9 percent above that in 1954. 172 The First Five Year Plan also called for an increase in pro- duction of 3,600 tons of industrial rubber goods in 1954 above that in 1949. 173 7. Poland. a. General. Before World War II, Poland had a relatively large rubber industry with about 20 plants employing over 15,000 workers who * Table 15 follows on p. 44- - 43 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Table 15 Estimated Production of Rubber Footwear in Hungary 1948-55 Year Production Year Production 1948 1.25 1952 7.0 1949 1.36 1953 6.6 1950 2.5 1954 7.9 1951 6.o 1955 8.2 manufactured a wide variety of products. 174 By 1945 these plants were operating at only about 30 percent of capacity because of t shortage of raw materials. The postwar Three Year Plan (1947_49) of Poland called for the restoration of the industry to 133 percent of the prewar level by 1949, and great expansion was planned for the Six Year Plan (1950-55) of Poland. Production of tires was to in rease fourfold, and production of footwear was to reach 10 million pair by 1955. No specific announcements have been published on the accomplishment of these objectives. As of April 1956 the current Five Year Plan (1956-60) had not been published in detail, but it is known to include further expansion of the rubber fabricating industry as well as the completion of a synthetic rubber plant by 1960. Mean- while, the industry continues to operate with imported raw materials and is able to meet domestic requirements for rubber products. b. Natural Rubber. Poland has made some postwar attempts to grow kok-sag yz, but no publicity has been given to the project since mid-1951. 17 A processing plant was included in the Six Year Plan, but it is doubtful if this plant was built; no mention has been made of it in the Polish press. It seems probable that the plan to grow kok-sa hyz has been abandoned. - 44 - Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 c. Synthetic Rubber. Just before World War II the IG Farben Company built a plant at Debica (500031 N - 21025' E) to produce synthetic rubber. This plant was not in operation at the end of the war, and the equip- ment was shipped to the USSR. Plans for the reestablishment of the plant were presented in the Six Year Plan 176 with a projected production of 9,000 tons in 1953 and a goal of 13,000 tons in 1955. 177 Although several announcements have appeared concerning the success of the rubber products industry of Poland, no publicity has been given to the production of synthetic rubber. It is therefore believed that accomplishments to date have been far below the announced goals. In 1951 the Polish government announced the projected building of another synthetic rubber plant, at Oswiecim (55?02' N ;i 19?1+' E), as a part of a large chemical combine which included extensive facilities for making calcium carbide, a raw material necessary for the German process of manufacturing rubber. 178 According to intel- ligence reports, machinery for the plant was imported from East Germany early in 1955, 179/ although the Polish press stated that two-thirds of the equipment was imported from the USSR and that the remaining one-third was to be made in Poland. 180 The plant is planned to be in operation by 1958. 181 Another small plant, located at Saarau (500571 N - 16?30' E), was built just before World War II to make "thiokol" rubber, a special type of rubber which is oil-resistant but of slight value for general- purpose use. This plant reportedly had an initial capacity of 700 tons per year. 182 It was taken over by the government in 19+6 and has operated intermittently since that time. Production apparently is limited by the difficulty of obtaining the special raw materials needed for the operation of the plant. The plant was not in production in September 1955. 183 Although a previous report L 84J estimates of pro- duction, subsequent evidence seems to indicate that production of synthetic rubber in Poland is still limited to experimental or pilot- plant quantities, with total production being less than 2,000 tons per year. The most recent document received indicates that there will be no commercial production before 1958, when it is expected that 6,000 tons will be produced. 185 This figure is expected to rise to 2+,000 by 1960. This information was given at a meeting held in Berlin, 18-25 May 1956, attended by the Soviet members of CEMA, and is believed to be based on reality rather than on propaganda. - 45 - S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 d. Reclaimed Rubber. The Three Year Plan of Poland included the erection of a plant for reclaiming rubber, which would have a capacity of 1,500 tons r year. It is doubtful if this capacity was realized. Since World War II a second plant for reclaiming rubber has been built at Kolo (510261 N - 190491 E), but it was reportedly completely destroyed by fire in 1954 and had not been rebuilt a year later. 186/ In addition to these 2 plants, at least 2 of the fabri- cating plants located at Krakow (500051 N - 19055' E) and Lodz (51045' N - 190281 E) reclaim old rubber, using the reclaimed rubb..r in their finished products. 187/ The estimated production of re- claimed rubber in Poland in 19x6-55 is shown in Table 16. Table 16 Estimated Production of Reclaimed Rubber in Poland a/ 1946-55- Metric Tons 1946 500 1951 3,000 1947 500 1952 4,500 1948 500 1953 4,500 1949 1,000 1954 5,000 1950 2,800 1955 5,000 a. 1 . The range of error is plus or minus 25 percent. e. Transportation Goods. Two of the 3 plants producing motor vehicle tires in Pola were established with the aid of US capital. The Stomil plant, locate at Poznan (52?25' N - 16?581 E), started making tires in 1929. 189 It was seized by the Germans in World War II and has been expanded several - 46 - Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 times since 1945. In 1948 the plant was scheduled to produce 4,768 tons of products of all types, and in 1952 it reported the production of 11,000 tons of tires. 190 The plant was reported to have pro- duced 8,500 tires in December 1954, which would be equivalent to about 100,000 tires per year.;191 The Stomil Tire Plant No. 2, located at Debica, also built with US assistance, began production in 1939. It was designed to make 1,200 tires per day but never reached this pro- duction. 192 It was completely demolished during World War.II, was rebuilt with machinery from Germany after 1945, and began production again in 1949. 193/ As a part of the expansion to be carried out under the Six Year Plan, the plant is being greatly enlarged with machinery from East Germany. 194/ Upon completion in 1958, the Stomil Tire Plant No. 2 is planned to be "the largest rubber plant in Europe." 195/ The third motor vehicle tire plant, located at Plock (520331 N - 19?42' E), has been under construction for several years and was to be completed in 1955. 196 No information has been published to indicate that production had started or what volume was being produced. The estimated production of motor vehicle tires in Poland in 1946-55 is shown in Table 17.* f. Carbon Black. Two Polish plants produce carbon black from natural gas. These plants were built under the supervision of the USSR after World War II and were reported in 1950 to be producing a total of about 6,000 tons per year. 197/ Another carbon black plant, located at Gleiwitz (50?17' N - 18?40`'E7, was built by the Germans before World War II. This plant produced carbon black by burning coal-tar pro- ducts -- anthracene and naphthalene -- and had a rated capacity of 1,500 tons per month. It was dismantled after the war, and the equipment was removed to the USSR. 198 Later the plant was partially restored and was reported to have started production in May 1950. Reported capacity is about 3,000 tons per year. 199 Because Poland's requirements are considerably below the indicated annual production of 9,000 tons, it is able to export carbon black to other European Satellites. * Table 17 follows on p. 48. - 47 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Table 17 Estimated Production of Motor Vehicle Tires in Poland a/ 1946-55 Year Production Year Production 1946 26 1951 250 1947 78 1952 310 1948 141 1953 360 1949 172. 1954 420 1950 215 1955 425 a. As no official announcements have ap- peared concerning the accomplishment of the Six Year Plan goal for production of tires, estimates are necessarily based on plant studies and probable rates of increase. The range of error is.plus or minus 10 per- cent. Estimates for 1946-54 are taken from source 200/. b. 201 g. Tire Cord. Poland has facilities for producing cotton, rayon, and pert (called "steelon" in Poland) tire cord. In 1947 it was reported that cotton cord was being used in conjunction with rayon breaker strips, 202 a practice followed in the US when rayon was priced too high to permit its exclusive use in motor vehicle tires. By 1951 it was reported at rayon cord was being used extensively for tires. 203 The Debica tire plant was reported to be planning the production of tubeless tires in 1957 and by 1958 to be making tires with steelon cord. 204 Based Z Poland's estimated production of tires, consumption of tire cord in 1953-55 is shown in the following tabulation: - 48 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Consumption Year (Metric Tons) 1953 1,800 1954 2,100 1955 2,310 h. Beadwire. Poland's requirements for beadwire represent less than 1 percent of its production of steel wire. In 1950 it was reported that approximately 55,000 tons of wire less than 8 millimeters in diameter were produced at the Kosciuszko Iron and Steel Works. in Chorzow. 205 The estimated consumption of steel in production of. beadwire in Poland in 1953-55 is shown in the following tabulation: Consumption Year (Metric Tons) 1953 405 1954 472 1955 520 i. Nontransportation Goods. Before World War II the rubber industry of Poland, which employed about 15,000 workers, was characterized by an emphasis on production of footwear, which was said to account for 64 percent of the production of the industry, in contrast to only 16 percent for motor vehicle tires. In the worldwide industry, footwear amounts to only 8.9 percent and tires, 71.2 percent. Industrial, sanitary, and other consumer goods constituted less than 20 percent of production in Poland. In the postwar period, as Poland has become more highly industrialized, the rubber industry has had to realign its production to meet the shift in demand. By March 1955, tires had risen to 28.2 percent of the industry's production, and footwear had decreased to 23 percent. 206/ The current Five Year Plan calls for further increases in production of tires and technical goods and less pro- duction of footwear. - 49 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 In effecting this change the Polish planners have had to make the most efficient use of the small supply of experienced personnel and to establish training schools for additional worker 3. They have also received technical assistance from Soviet experts n an effort to improve production methods and the quality of pro- duct. 207/ They plan to increase greatly the use of synthetic ru ber, which in 1955 accounted for only 35 percent of the new rubber use in Poland. 208/ For nontransportation goods the only specific figures available are those for rubber footwear. The Six Year Plan called for the production of 16.4 million pairs of rubber shoes in 1955, This goal was said to be 163.9 percent above production in 1949. In 1955 it was reported that the goal for production of footwear would be exceeded by 30.8 percent. 209 An early report stated t at production in 1949 was 149 percent above that in 1948. The esti- mated production of footwear in Poland in 1946-55 is shown in Tab e 18. Estimated Production of Footwear in Poland 1946-55 Year Production Year Production 1946 N.A. 1947 N.A. 1948 4.2 1949 6.2 1950 8.0 1951 9.7 1952 13.8 1953 16.4 1954 18.3 1955 21.4 8. Rumania. a. General. Before World War II the rubber industry of Rumania wa very small. Except for carbon black, the necessary raw materials were im- ported. It was estimated that in 1933, rubber constituted one-th d Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 of the value of all imports into Rumania. 210 Production was confined largely to footwear, raincoats, and other consumer goods. The first plant for making motor vehicle tires was established in 1938 with the help of a US manufacturer. 211 During the war, Germany organized another company to make tires, thereby increasing its war supplies. Since the USSR assumed economic control of Rumania, efforts have been made to expand the rubber industry to meet domestic requirements, which were the basis for the planned expansion during the First Five Year Plan of Rumania (1951-55). The Plan called for 3 billion lei, the equivalent of $20 million at the time the Plan was formulated, to be invested in the industry during 1951, 1952, and 1953. 212/ The production of synthetic rubber is the responsibility of the Ministry of the Chemical Industry. The manufacture of rubber products is controlled by the Rubber Center of the General Directorate of Leather and Rubber, a part of the Ministry of Light Industry. 213 Worn rubber products, such as old tires, are collected by the Directorate of Collection and Acquisition for conversion into reclaimed rubber. 2L4/ The Ministry of Industry and Commerce controls the distribution and sale of tires, which are strictly rationed. 215/ The purchase of the necessary raw materials, which are imported, is handled by Chinimport, and the import of finished rubber products is handled by Technoimport. b. Natural Rubber. In an effort to reduce import requirements for natural rubber, Rumania has undertaken the production of rubber from kok- saghyz. Under the terms of the Soviet-Rumanian Trade Agreement of 20 February 1947, the USSR was to supply Rumania with 20 kg of kok-saghyz seed 216/ from which 1,700 to 1,800 tons of rubber were reported produced in 1949. 217/ This production seems highly improbable, because the amount of seed specified would be sufficient to plant only about 10 hectares, which in turn would produce a maxi- mum of 3 tons of rubber. 218/ There have been no later reports of production, and although the industry may still be in operation on an experimental basis, it is doubtful if it is making a, significant contribution to Rumania's rubber supply. It is probable that the program of kok-saghyz cultivation has been abandoned because of its slight potentialities. S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400q Rumania has been interested in producing synthetic rubber as a part of its plans for the development of a petrochemical industry. Although numerous references have appeared concerning production of synthetic rubber, it seems likely that such production is only on an experimental scale. The most reliable` report describes a plant in Margina (450521 N - 22017' E), which produced 32.8 tons of synthetic rubber in November 1952 and planned to produce 75 tons in December 1952. 219 Another plant is reported to be located in Ploesti, but no details of its capacity are available. 220 On the other hand, a press report of July 1955 stated that "more attention must be given to the scientific problems connected with the production of synthetic rubber," 221/ a statement which would indicate that the industry is not in commercial production. No mention of synthetic rubber was made in the First Five Year Plan, but the Second Five Year Plan of Rumania (1956-60) calls for the establishment of a synthetic rubber industry to increase production at a rate of 5,000 tons per year, with production reaching 25,000 tons by 1960. 222/ On the basis of the available information, it is believed that production of synthetic rubber in Rumania is still on an experimental basis and probably is less than 1,000 tons per year. Rumania has been interested for some time in the production of reclaimed rubber. As previously mentioned, the collection of worn rubber products is the responsibility of a government agency, and the motor vehicle tire plant at Baicoi (450031 N - 250471 E) has been reclaiming rubber as a part of its operations. The First Five Year Plan provided 900 million lei (equivalent to about $6 million in 1950) for the erection of a rubber combine at Jilava (440191 N - 260o6 south of Bucharest, which would reclaim rubber and produce footwear, belting, hose, and other technical articles. The reclaiming equipment (reportedly outdated-machinery) was to come from the USSR, and the plant was to be completed in 1953. 223/ The reported capacity of 10,0 tons per month is obviously an error, because Rumania's requirements for reclaimed rubber would be less than 2 percent of this amount and because it would not have raw materials available to produce such an amount. A radio report of 12 December 1955 reported that this plant was "nearing completion." 224 On the basis of the consumption of new rubber in Rumania, it is estimated that the production of re- claimed rubber would not exceed 150 tons per month, even when the new plant is in operation. 9-3 1 E) Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 e. Transportation Goods. Rumania has two plants producing motor vehicle tires. The first plant, built in 1938 with the aid of US capital, is located in Baicoi. 225 It was called the Banloc Rubber Factory until 1955, when the name was changed to the Victory Chemical Plant. ~22?h6j Its reported capacity is 500 tires per day, but because of a ortage of raw materials, production is probably much less than this figure. The other plant is the Rubber Products Factory located at Orasu/Stalin (45?38' N - 25?34' E), which was built by the Germans in 1944 to produce tires for military vehicles. In 1950 the capacity of this plant was reported to be 275 to 300 tires per day, 227/ but actual production probably is somewhat less than this figure. The estimated production of motor vehicle tires in Rumania in 1946-55 is shown in Table 19. Table 19 Estimated Production of Motor Vehicle Tires in Rumania a/ 1946-55 Year Production Year Production 1946 20 1947 40 1948 68 1949 95 1950 105 1951 110 1952 125 1953 150 1954 170 1955 195 a. Estimates for 1946-52 and 1954-55 are taken from source 228/. b. 229/ f. Carbon Black. Rumania has long been a producer of carbon black, its production being closely associated with the petroleum and natural gas industries. Production in 1938 was less than 1,000 tons, and carbon black was used largely as pigment for paints, inks, and the like. 230 Rumania 53 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 had 4 small channel-type plants located. in the natural gas region, bu because production decreased sharply in 1944 and 1945, 2 of these pla is are believed to have been damaged during World War II. It is believe , however, that these plants were rebuilt. By 1947, four plants were reported to be in operation. These plants had a total annual capacity of about 2,000 tons. 231/ Between 1948 and 1952 the USSR instigated the construction of seven modern furnace-type plants to use the large reserves of natural gas. Equipment for these plants, located at Prostea-Mare (46?07' N -24 18' E), was reported to have been sent t Rumania by the USSR. 232/ Each plant is estimated to have an annual capacity of 1,000 tons. Another facility for making carbon black, which went into production in 1952, has been reported at Satu-Mare (47?i8' N - 22?53' E) 233/ and is believed to produce about 6,000 tons per year.* There have been no specific references to increased capacity in the carbon black industry of Rumania during the past 2 years; hence it is believed that production has been stabilized at about 38,000 tons per year. Because carbon black plants normally operate at maximum capacity and on a continuous basis, any appreci- able increase in production can be accomplished only by the construe tion of additional facilities. g. Tire Cord. Rumania produces its domestic requirements for cotton tire cord and in 1950 was reported to be experimenting with the productio of rayon cord. 235/ These attempts apparently were not entirely successful. In 1952 an official of Romanoexport was attempting to purchase as much as 200 tons of rayon tire cord per year. 236 Ther have been no recent reports of production of rayon cord in Rumania. Rumania's requirements for tire cord in 1953-55, based on its esti- mated tire production, are shown in the following tabulation: Requirements Year (Metric Tons) 1953 750 1954 850 1955 975 Production in 1949 was reported to have been 22,086 tons. 234 - 54 - S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T Rumania is a major producer of steel wire. Its two steel producing plants have a combined annual production of more than 130,000 tons, and both plants have facilities for drawing high-carbon steel wire. 237/ As can be seen from the following estimates, con- sumption of steel wire by the rubber industry for beadwire consti- tutes a fraction of 1 percent of domestic production. The consumption of steel wire for beadwire in Rumania in 1953-55 is shown in the following tabulation: Consumption Year. (Metric Tons) 1953 169 195+ 190 1955 220 i. Nontransportation Goods. In addition to the 2 tire plants mentioned, Rumania has 4 plants which produce industrial goods and 1 plant which produces sanitary and surgical items. 238/ Also the largest shoe factory in Rumania was to be supplied under the First Five Year Plan with 200 million lei ($ 1.33 million) for equipment to make rubber soles. 239/ There is little information available on actual production of foot- wear. The Rumanian Chemical Works Rubber Factory in Bucharest was scheduled to produce 350,000 pairs of rubber shoes in 1949, 240/ and the First Five Year Plan called for national production of 2.7 million pairs in 1955. This figure was raised to 4 million on 22 August 1953. 241 There have been no announcements as to the success of the industry in meeting either of these goals. 9. Communist China. Before the Japanese invasion of China in the late 1930's, the Chinese rubber industry was primarily engaged in the production of footwear and of tires for bicycles, jinrickshas, and carts. Raw materials, except cotton fabric, were imported. Numerous small fac- tories, each with a few employees using primitive methods, were responsible for most of the production. A few larger plants, most of which were located in the Shanghai area, used more modern methods. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400q The demand for sanitary goods, motor vehicle tires, and hose was small, and investment in the machinery needed to make these items was not warranted. For this reason, such rubber products were im- ported. With the Japanese invasion the pattern of the rubber industry of China changed. The invaders built a large modern plant and equipped other plants with Japanese machinery to supply their military needs. 242 These plants were organized as branches of Japanese rubber companies. Some of the small handcraft plants were allowed to continue operations on a restricted basis. No detailed information on the industry during the Japanese occupation is available, but it is known that small supplies of rubber and of other raw materials confined production to an austerity basis. After World War II, production of rubber was one of three activities in light industry which enjoyed relative prosperity. (The other two were textiles and flour milling.) The small plants were retained by their owners, whereas the large plants formerly operated by the Japanese were taken over by the Chinese Nationalists. Limited availability of foreign exchange hampered the import of raw materials and curtailed production. Nevertheless, by 1948 it was estimated that the rubber industry of Communist China had the following annual capacity 243/: Motor vehicle tires (thousand units) Motor vehicle tubes (thousand units) Bicycle, jinricksha, and cart tires Bicycle, jinricksha, and cart tubes Shoes (million pairs) Production 220 220 (million units) 4.05 (million units) 4.45 90 to 100 When the Chinese Communists came into power in 1949, the rubber industry practically ceased operations because of a temporary shortage'of raw materials, 244 the result of the confusion in Peiping and the more pressing problems of the new rulers. By 1950, some order began to appear, and restoration of the industry was begun. The plants were placed under the Ministry of Light Industry. Direct supervision is maintained through regional bureaus which control all of the industrial facilities in their respective administra- tive district. Manufacture of rubber products appears to have been one of the activities selected by the Chinese Communists to be - 56 - 9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 nationalized. Because the Chinese Communists controlled imports of raw materials, they were able gradually to eliminate the smaller and less efficient manufacturers. Larger plants were seized for taxes or reorganized into joint state-private enterprises. By the end of 1955, private enterprise had almost ceased to exist in the principal centers of rubber production. 245/ The rubber industry of Communist China is plagued with serious problems which it is attempting to correct. One of these problems concerns the quality of product. Many reports are received indicating an average service life for motor vehicle tires of 3,000 to 4,000 km, 246/ and footwear lasts less than 2 months. At an annual techni- cal committee meeting held in Peiping during 27 November - 4 December 1954, a resolution was passed to increase the life of tires to 25,000 to 30,000 km, to extend the life of rubber shoes by 30 days, 247 and to reduce the price of rubber shoes by 25 percent. In 1953, shoes were priced at $18 to $24 per dozen pairs, wholesale. At the same time, truck tires were advertised at the equivalent of about $158, and a bicycle tire and inner tube cost about $70. By contrast, workers in the principal rubber plant in Tientsin were paid from $12.80 to $25.60 per month, the latter being barely a subsistence level for un- married workers. 248 b. Natural Rubber. For years the Chinese have attempted to raise rubber trees on Hainan Island. A small amount of rubber was being produced before World War II. The plantations, however, suffered considerable damage during the Japanese occupation. Reports vary in detail as to the situation in 1950, when the Chinese Communists gained control of the area. There probably were about 600 plantations, each of which pro- duced an average of about 1 ton of rubber per year. 249 The Chinese Communists announced an ambitious program for planting about 6 million additional trees, which would ultimately yield about 15,000 tons of rubber. 250/ Some of these trees were to be planted on the Luichow Peninsula. Technicians were sent to the area, and workers were re- cruited from the cities to clear the land and plant the seedlings imported from Burma and India. 251/ Workers were reported to receive the equivalent of $14 to $17 per month, with $6.50 deducted for 2 meals per day. 252 After 2 years of effort, apparently it was realized that the project was doomed to failure. The soil on the mainland was poor, and the drafted labor used proved inadequate for the job. Returnees in 1954 and 1955 reported that most of the trees had died and that the Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 workers were diverted to other tasks. 253/ The most recent announce- ments by the Chinese Communists have listed several projects for the development of Hainan Island, but no mention has been made of growing rubber. A fundamental reason for the failure of the program probab y is the fact that the area is too far north; the practical growing area for rubber is considered to be within 10 degrees of the equato . It is estimated that production on Hainan Island is still less than 1,000 tons per year, with little prospect that this figur will increase materially above 1,500 before 1960. c. Synthetic Rubber. The only attempt to produce synthetic rubber in China was de by the Japanese-owned Manchurian Synthetic Rubber Company in 19+2-4+ , but production never exceeded experimental quantities. 254/ The eq ip- ment from the plant, located in Kirin, was shipped north by the Chi ese Communists, and the facilities have not been restored. The Ch nese Communists have shown an interest in building a plant and may, with the help of Soviet technicians, realize this ambition, but. it is doubt 1 if the plant could be built and in operation before 1960. At present, requirements for synthetic rubber must be met by imports. For many years, China has imported large numbers of old tires for processing into reclaimed rubber. The processing was carried out in a few large plants making consumer goods, and statistics on pro- duction have never been published. Since 1951 the Chinese Communists have built two plants specifically designed to reclaim rubber. 256/ One plant built in Shanghai was scheduled to go into production in January 1955 with a capacity of processing 100,000 old tires per ye (equivalent to about 750 tons of reclaimed rubber). 257/ Another plant built in Mukden (Shen-yang) was reported to have 90 percent o its machinery installed in December 1954 .and was scheduled to start operating in 1955. No information was given on its capacity. 258/ In view of the fragmentary, information available, it is impossible to make a reasonable estimate of the total production of reclaimed rub er in Communist China. -58- Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 e. Transportation Goods. As previously mentioned, the Japanese established the manu- facture of motor vehicle tires in China. Almost the entire produc- tion was of the 32-by-6.00-inch size to fit military vehicles. When the Chinese Nationalists took over the government, they started the production of other sizes, and later the Chinese Communists began production of aircraft and large bus tires, and today many sizes are in production. When the Chinese Communists gained control of Northeast China in 1948, the major tire producer was the former Japanese Bridgestone Rubber Factory* in Tsingtao, and this plant continues to be the largest producer. Other tire plants were located in Shanghai, Tientsin, and Mukden. The announced goals of the First Five Year Plan of Communist China (1953-57) included the construction of 4 tire plants and an increase in production from 417,000 tires in 1952 to 760,000 tires in 1957. 259 It is probable that two of these new plants 260/ are located at Peiping and Mu-tan-chiang. In addition, it was announced in 1954 that 2 tire plants had been undergoing expansion, 1 in Northeast China and 1 in East China, and it was expected that production would be doubled in these plants. 261 These expansions are believed to have taken place in Tientsin and Mukden. Equipment for this added capacity is reported to be coming from Czechoslovakia, East Germany, and the USSR. 262 Annual announcements of production increases 263/ are sufficient to give a fairly accurate estimate of the total production of tires in Communist China. The estimated production of motor vehicle tires in Communist China in 1946-55 is shown in Table 20.** The estimated production of motor vehicle tires in Commu- nist China, by plant, in 1948-55 is shown in Table 21.* Communist China's domestic production of lamp black, which is made by burning tung oil and similar materials, is not suitable for making tires, but it can be used in some nontransportation goods. * *** See Table 21, p. 61, below. Table 20 follows on p. 60. Table 21 follows on p. 61. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Estimated Production of Motor Vehicle Tires in Communist China 1946-55 Year Production Year Production 1946 N.A. 1951 225 1947 N.A. 1952 417 a/ 1948 59 1953 488 1949 25 1954 702.5 e 1950 62 1955 597 d a. 2 b. 265 c . 266/ d. 237-/ Supplies of carbon black, therefore, are essential for tire plant in China. Because the US produces more than 90 percent of the Western supply, China imported carbon black of a quality needed for tires from the US until 1950, when restrictions were placed on this trade by the US. A thriving business in smuggling 268/ through Hong Kong and Macao then developed because the internal price of US-made carbon black rose to about $1,700 per ton, more than $0.77 per po nd, compared with a US price of about $0.16 per pound. Smuggled supp ies were inadequate to meet requirements; hence the principal source as the countries of the Soviet Bloc. Soviet carbon black has been reported to be valued at about $853 per ton. 2L9/ In 1950 the au hor- ities also began a program to produce carbon black from domestic sources. Large amounts of gas escape into the air from the coal mi es at Fushun, Liaotung Province. A plant was constructed at Fushun to collect the gas and burn it to produce carbon black. The plant i con- trolled by the Fushun Mining Administration and is reportedly pro ucing about 3,000 tons of carbon black per year. 270 Another source ich was exploited was the gas field at Lung-Ch'ang, Szechwan Province, which was controlled by the Petroleum Administration General Bure u. - 60 - Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Table 21 Estimated Production of Motor Vehicle Tires in Communist China, by Plant 1948-55 Estimated Production (Thousand Units) State Control Number of 1 53 1954 1955 Date Employees 1948 1949 1950 1951 1952 9 Shanghai 21 December 1954 938 27.0 5.0 25.0 50.0 67.0 Ta Chung Nua (in 1950) Chung nan 1 January 1954 N.A. 5.0 50.0 10.0 50.0 10.0 50.0 20.0 50.0 Cheng Tai in Chi 1 January 1954 300 (in 1952) Tientsin (T'ien-ching) Rubber Plant No. 2 December 1950 980 (in 1952) Tien-ching Rubber Distribution Works N.A. N.A. 1.2 Canton (Kuang-chou) Kuang-thou Rubber Manufacturing Works Peiping Chung-ya Chin Kun-yeh Mukden (Shen-yang) Northeast Rubber Goods Plant (Factories No. 1 and No. 7) Tsingtao (Ch'ing-tao) TsingtaO Rubber Goods Plant No. 1 Mu-tan-chiang State-Operated Rubber Plant No. 1 Total State-built 1,500 1951-53 (in 1952) December 1950 6,o00 5.8 10.0 12.0 35.0 60.0 (in 1950) December 1950 1,000 25.0 10.0 25.0 110.0 200.0 in 1951) 34.0 62.0 59.0 25.0 62.0 225.0 417.0 J 480.0 577.0 J 597.0 J a. This plant has been reported to be producing tires, but no details are available. b. 271 c. 272 d. Projected from 1954 figures. Approved For Release 19-99/09/02 :--C-IA-R-DP79-01093A001200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 A channel black plant was constructed in 1953 to make carbon black from 3 producing gas wells, and production was estimated to be ab t 650 tons in 1954. 273 Construction of buildings and drilling of n w wells have been reported to be continuing, with an ultimate produc ion goal of about 4,500 tons of carbon black by 1960. 274 The carbon black plant was said to have had 500 employees in 195 and 900 in 1955 and was expected to employ 2,000 when completed. L75/ Soviet technicians supervised the drilling and construction of the plant. g. Tire Cord. Requirements for tire cord in Communist China seem to be me entirely by the cotton textile industry. This assumption is con- firmed by the analysis of a MIG tire which was captured during the Korean War. This tire was made in a Chinese Communist factory using a Soviet tire mold and was made entirely of natural rubber with cotton cord. 276/ Because jet aircraft tires must withstand extreme service conditions, the use of cotton cord would indicate that no better material was available. Under a 1955 trade agreement, Communist China is to obtain 55,000 bales of Egyptian cotton from Egypt. 277/ It is probable th t some of this long-staple cotton will be used to make tire cord and textiles for the rubber industry. The Tsingtao tire plant reportedly produces its own tire cord from thread obtained from the Tsingtao textile mills. 278/ Also, the new rubber plant in Tientsin built by the Chinese Commu- nists in 1951-52 was reported to get its fabric requirements from textile mills located in Tientsin. 279/ There is no further infor- mation indicating which textile mills are producing tire cord. It has been reported that Communist China intends to build a rayon and textile mill in Mu-tan-chiang, 280 which would be able to produce the textiles needed by the rubber industry; Mu-tan-chiang is also the location of one of the new tire plants discussed above. The estimated requirements for tire cord in Communist China in 1953-55, based on tire production, are shown in the following tabulation: Requirements Year Metric Tons) 1953 2,400 1954 2,885 1955 3,250 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009.3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 h. Nontransportation Goods. Footwear is the principal nontransportation item produced by the rubber industry of Communist China. Because the process histor- ically has been a handcraft operation, no exact figures can be given for production before the Communist regime. In 1948, footwear capacity was estimated to be 4 million pairs per month in the Shanghai area alone, and this capacity was supposed to represent about 50 percent of the total for the country. 281/ Because of the small supply of raw materials, actual production of footwear is believed to have been considerably below capacity. The Chinese Communists have made the following moves to organize the industry to.increase its efficiency 282/: (1) the gradual elimination of the small, handcraft shops; (2) the concentration of equipment in larger plants; (3) the adoption of standard methods of manufacture to eliminate waste of raw materials; and (4) attempts to improve the quality of product by adopting quality standards and interchanging technical information at conferences of the principal leaders of the industry. In 1950 the rubber industry of Communist China was reported to have 543 plants employing approximately 34,000 workers. 283 A majority of these plants were making footwear. 284/ It is impossible to estimate accurately the number of plants or workers in the industry today because of the changes being made by the Chinese Communists. Nor is it possible to make an accurate estimate of the production of footwear in the individual plants known to be still operating. From the annual reports made by the Chinese Communist State Planning Commission, however, reasonably accurate figures can be given for the annual production of footwear since 1948. The esti- mated production of footwear in Communist China in 1949-57 is shown in Table 22.* B. Stockpiles. Very little information is published on the stockpiling of rubber in the Sino-Soviet Bloc. When considering the Soviet stockpile as a possible source of supply, it is necessary to make certain basic assumptions because the final estimates can be reached only by indirection. It is reasonable to assume the following: 1. Only natural rubber is stockpiled. It is the judgment of US experts that synthetic rubber should not be stored for more than 2 years, whereas natural rubber can be kept for periods of 10 years * Table 22 follows on p. 64. - 63 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 Estimated Production of Footwear in Communist China 1949-57 Thousand Pairs Year Production Year Production 1949 50,000 a/ 1954 76,692 e 1950 45,100 '/ 1955 88,196 1951 67,600 1956 100,000 estimated) 1952 61,690 c/ 1957 108,300 planned) g/ 1953 69,092 a/ a. 2 5 b. 286/ C. 2$7/ d. 2$/ e. -5$9/ f. 290./ g. 291/ or more, depending on the original. quality of the rubber and con- ditions of storage, such as temperature and humidity. Standard practice in the US is to store only the highest grades available and to rotate the stockpile by withdrawals within reasonable periods to assure having a high-quality material in reserve at all times. 2. Stockpiling, in the sense of maintaining a strategic reserve, is done only in the USSR. Because the control of natur l rubber imports and its intra-Bloc movement is a function of Raznoimport, 292/ it seems reasonable to assume that any strateg c or military reserves are held within the geographic limits of th USSR. 3. Available information indicates that rubber compounding and application in the Sino-Soviet Bloc are similar to standard S practice. The Soviet consumption pattern of natural rubber compared with that of synthetic rubber probably is similar to that in the US. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 A leading authority on rubber has estimated that of the total rubber requirements in the US, 25 percent can best be met with natural rubber, regardless of its price. About 33 percent of the requirements need synthetic. rubber for best performance, and the remaining 42 percent can be met with either natural or synthetic rubber, depending on price and availability. These proportions do not represent actual consumption statistics in the US; natural rubber actually accounts for approximately 40 percent of the con- sumption of new rubber. It is probable, however, that the estimates given would be approximately correct for the Sino-Soviet Bloc. It is reported, for instance, that East German plants making truck tires for the USSR are required to use all natural rubber for the tires and 90 percent natural rubber and 10 percent Buna rubber for the inner tubes. 293/ (US practice is to use from 60 to 100 percent natural rubber for the tires and 100 percent butyl rubber for the inner tubes.) It seems reasonable to assume that this prac- tice is followed in Soviet tire plants. There remains, however, the question of how much natural rubber the USSR actually consumes and how much it is able to set aside as a strategic reserve, or stockpile. According to an earlier study, 294/ imports of natural rubber by the USSR through December 1951 would have permitted the stock- piling of 205,600 tons of natural rubber. Later data show that in 1952 the apparent available supply of natural and synthetic rubber was 49,000 tons more than estimated in the earlier study. This increase would mean that instead of the estimated 42,500 tons available for stockpiling in 1952, the actual amount was 91,500 tons, which would increase the estimated stockpile as of 31 December 1952 to more than 297,000 tons. In 1953,. Soviet imports of natural rubber decreased sharply, to 41,800 tons, lower than in any year since 1947.* In 1954 the USSR imported almost no natural rubber through normal trade channels. 295/ In 1955 it was announced that the USSR was again in the market to pur- chase rubber. Imports, however, did not start until about July, and the amount obtained was about 25,000 tons during the remainder of the year, less than one-half of the estimated Soviet minimum requirement, In contrast? the European Satellites continued to import natural rubber in amounts approximating their estimated normal needs. It seems unlikely that during 1953-55 the USSR obtained significant amounts of natural rubber from'the Satellites. On the other hand, * See Table 23, p. 68, below. - 65 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040909-3 Communist China during 1953-55 undoubtedly imported more natural rubber than was needed or could be processed. It was reported tha under the Soviet-Chinese Payments and Credits Agreement concluded early in 1953, China was obligated to resell to the USSR 45 percen of the rubber obtained from Ceylon (under the rubber-rice barter agreement) and 40 percent of that which was obtained elsewhere. 2 If this report is correct, China would supply the USSR with natura rubber during the 3 years as follows: about 25,000 tons in 1953, a out 30,000 tons in 1954, and about 20,000 tons in 1955. If these amounts are added to Soviet purchases through normal trade channels, the imports of natural rubber by the USSR in 1953-55 would have been approximately as follows 297/: Imports Year (Metric Tons 1953 67,000 1954 30,000 1955 45,000 On the basis of a 25-percent requirement for natural rubber, the USSR needed 208,000 tons of natural rubber, 56,000 tons more than was available from outside sources in 1953-55. Because earlier estimates indicate that stockpiling in the USSR started about 1948, it seems likely that the deficit which existed 4n 1953-55 was met by removal of rubber from the stockpile. From a ti ing point of view -- that is, the necessity to rotate some of the stock pile -- this assumption seems reasonable. In addition, it would appear logical from the change which has taken place in the political cli- mate in Communist China between 1949 and 1953. Geographically, the Chinese Communists are not far from a potential annual supply o 75,000 to 90,000 tons of rubber from southern Indochina. Thus the urgency to maintain a 4- to 5-year supply in the stockpile is con- siderably less than it was in 1948. Also, under the Soviet-Chinese agreement, the USSR will receive an average of about 25,000 tons of natural rubber per year 298/ through 1957. Because a large stock pile of natural rubber represents large amounts of hard currency, thore is an additional economic reason for the USSR to keep strategic re- serves at a minimum. Exactly what figure the Soviet planners have agreed on is not known, but the factors discussed above suggest that 200,000 tons would'be considered adequate for any emergency. In a U Air Force report, 299/ it was estimated that in the event of a war tYe Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009.3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S -E-C -R -E -T Sino-Soviet Bloc would experience a deficit of 89,000 tons of rubber during the first year of fighting. Thus a stockpile of 200,000 tons would be more than adequate for 2 years. In conclusion, it is probable that in 1953-55 the USSR has been reducing its strategic reserve of natural rubber almost 20,000 tons per year. Soviet purchases since July 1955 300. have been of the highest quality rubber, which is a further indication that acqui- sitions are being used to replace material being withdrawn from the stockpile. In any event, it is significant that the Soviet policy of purchas- ing natural rubber through world trade channels and in amounts at least adequate to meet current requirements was changed early in 1953 as shown in Table 23.* The importance of this shift in policy cannot be assessed without more information. Purchases by the Sino- Soviet Bloc during the next few years may indicate whether the reasons were economic or political. Also, information on similar shifts in the stockpiling of other materials may make possible some firm conclusions or the subject. 1. Natural Rubber. Because domestic production of natura] rubber is almost nonexistent, the Sino-Soviet Bloc must depend on imports from the West to meet its requirements. Estimated imports of natural rubber by the Sino-Soviet Bloc, by country, in 19+6-55 are shown in Table 23.* The figures in Table 23 are based on the published statistics which mof maintains a International Rubber Study Group (IRSG) in London, statistical service covering the world movements of rubber. Infor- mation on the Bloc has been estimated on the basis of reported ship- ments from the principal rubber centers and is the most accurate available. No statistics are published by the IRSG on estimated shipments to East Germany. Statistics on natural rubber imported by Communist China present a problem. Exports of rubber to China by members of the UN not material. are proscribed because rubber is considered to be a strategic g When this prohibition was enacted in 1951, Ceylon was the UN; consequently, China began importing its requirements from * Table 23 follows on p. 68. 67 - S-E-C R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T Table 23 Estimated Imports of Natural Rubber by the Sino-Soviet Bloc, by Country 1946-55 Total USSR Communist China Bulgaria Czechoslovakia Germany 1 Hungary Poland Rumania USSR and Eu opean Sat llit Communist China c ts (Covert Receipts -- Totl i Average Singapore Price e es (Estimated Receip ) Minimum ) Siro-Sov et Bloc (US $ per Long Ton) Year 1946 779 N.A. 256 1,450 500 9 11 985 177-75 200 8 1947 300 14,767 N.A. 2,377 2,250 100 , 000 35 , 54 794 . 0 8 1948 150 23,358 900 3 000 3 600 1 000 , 100 000 , 1 2 0 8 1 1.93 741.73 1949 1950 925 175 27,500 22,500 1,700 504 , 8,500 6 500 , 12,000 500 5 , 1,250 , 105,000 82 3 , 0 156,875 27,500 184,375 , 1,162.51 1951 275 11 000 6 , , 575 ,500 118,254 70,000 188 254 658.69 462 39 1952 575 , 20,000 9,37 536 250 4,750 11,500 20,000 600 2,750 63,000 123,000 96,001 171 611 73,250 23 750 169,251 . 461.44 1953 1954 750 300 17,000 22 300 1,448 892 23,000 250 11 21,500 1 000 loo 2 41,850 , 105,648 , 6o,o00 3,500 d 195,361 169,148 685.00 J 1955 700 , , 5, 00 425 50,367 62,250 7,240 e 119 857 23,300 9,095 5,100 23,500 goo 24,400 86,955 31,750 8,440 J , 127,185 b. No official estimates are made by the IRSG on East Germany. Figures given are based on reexports from London and Amsterdam. East Germany also receives reexports from the c. China before Communist domination is not included. d. Shipped from Burma. 302,/ e. Shipped from Indonesia. 303 f. Approximate. g. 850 tons from Singapore, 304 7,200 tons from Indonesia, 305 and 390 tons from Burma. 306 - 68 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Ceylon. Total imports in 1952, as shown in Table 23, were from Ceylon. Late in the same year the 2 countries signed a 5-year trade agreement whereby China received 50,000 tons of rubber per year in exchange for 270,000 tons of rice. 3o7/ Consequently, the published statistics for the past 4 years represent shipments from Ceylon to China. Actually, additional quantities have been ex- ported from Indonesia and Burma. The quantities shown in Table 23 reflect all known imports for 1953, 1954, and 1955. China continues attempts to circumvent the control of rubber shipments by offering premium prices, particularly to Indonesia and Burma, 308/ where political advantage might be gained from such deals, even though China's requirements are less than its imports from Ceylon. 309/ Because imports of natural rubber must be purchased with hard currency, they represent an important drain supplies value of rub- ber in the Sino-Soviet Bloc. In 1952 the market bimports by the USSR represented an estimated 10 percent of all imports from the West. Later years, in which imports were smaller, show a decreasing value of these acquisitions. The present trend appears to be for the European Satellites to obtain rubber in exchange for, manufactured products through trade agreements, thus reducing requirements for foreign exchange. 2. Synthetic Rubber. The Sino-Soviet Bloc does not import synthetic rubber; on the contrary, a small amount, supposedly from East Germany, was exported through Switzerland to the US in 1955. About 500 tons of synthetic rubber were imported at New York at a declared value of 15.3 cents per pound. This is about 10 cents per pound less than the prevailing price in the US. 3. Rubber Products. Small amounts of motor vehicle tires are exported annually from Italy to the European Satellites. Statistics on the volume of this trade, however, are insufficient to be a reliable indicator of its value. 310/ These imports are not believed to constitute an important source of supply for the Satellites. 4. Plans. There is no mention in the Soviet Sixth Five Year Plan (1956-60) of projected trade in rubber or rubber products. Information - 69 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 is available, however, on the planned movements of these materials to and from East Germany during 1955 and 1956. In 1955, planned exp s of synthetic rubber from East Germany were 39,140 tons, valued at bout 82 million rubles. 11 This amount represented about 55 percent of the planned production of 70,936 tons. 12 In 1956, East Germany is expected to export 38,500 tons, 1 slightly more than one-half o planned production. Imports of motor vehicle tires were expected to be 65,500 tires in 1955, valued at 9,725,000 rubles, 14 compared with 16,000 tires to be imported in 1956. JyJ/ Planned imports of natural rubber and rubber products during 1955 were valued at 50 Ilion rubles, about 15.33 percent of planned imports of chemicals. In 1955, exports of synthetic rubber and fabricated rubber products were listed as having a value of almost 100 million rubles, 11.68 percent of 1 exports of chemicals. 16 At a meeting of CEMA, held in East Berlin from 18 to 25 May 1956, 317/ detailed plans were made for the exchange of many chemicals and rubber products within the Soviet Bloc during 1957-6(. Shipments of synthetic rubber and motor vehicle tires between the various-participating countries were forecast. Planned shipments of synthetic rubber and motor vehicle tires within the Soviet Bloc in 1957-60 are shown in Table 24.* The approximate values of thes exchanges have been derived from the values given above for East German trade in 1955. A study of the figures in Table 24 shows that East Germany is to be the primary source of synthetic rubber for the European Satel- lites in 1957-60 because exports from the USSR are almost counterbal- anced by imports. The USSR and Czechoslovakia, however, are expec d to supply motor vehicle, tires to the rest of the Bloc. From the incomplete data available on the trade,in these products during the Fifth Five Year Plan period, it would appear that these projected movements conform to the general trade pattern which has prevailed in recent years. * Table 24 follows on p . 71. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C R E-T - Table 24 Planned Shipments of Synthetic Rubber and Motor Vehicle Tires Within the Soviet Bloc 1957-6o Value product and Country Am?unt (ThO--d ambles) Amount 1958- 1959 Value v a- sand Thousand Rubles) Amount (Thousand Rubles) Amount (Thou Rubles Synthetic rubber (Thousand tons) 0 5 1,048 0.5 1,048 1 4 Bulgaria T 0.5 1,o48 0.5 1,048 5 658 . 3.1 6,496 6.4 0 2 1 13, 4,191 o ary n H 2.4 5,029 2.7 8 , 16 345 1.0 2,096 . 4 1 2,934 g u To To Poland 7.0 14,668 7. , 1 257 0.8 1,676 . 0 25 52,388 Rumania T 0.8 1,676 0 , 5 25.0 52,388 . 7 0 14,668 o USSR 25.0 52,388 25. 0 286 6, 7.5 15,716 . To Czechoslovakia T 1.0 2,096 3. , 42 3 88,640 o 36.7 76,905 3.9.6 82,982 37.9 79,420 . 0 3 629 0.3 629 4 0.3 2 4 629 8,801 To Albania To Bulgaria 0.2 2.9 419 6,077 . 3.3 1 5 6,915 3,143 3.6 1.7 7,54 3,562 . 2.0 0.1 4,191 210 Hun ary 1.3 2,724 . 1 210 0.1 210 5 0 10,478 g To To East Germany 0.1 210 0. 4 5 9,430 , 5.7 11,944 44 . 6.o 12,573 To Poland 4.5 9,430 . 4 316 11 5.7 11, 9 15.5 32,480 To Rumania 5.3 11,106 5. 14.3 29,966 15.2 31,852 choslovakia C 12.3 25,775 3 1 69,362 ze To 26.6 55,741 61,609 32.3 67,685 . 3 S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T Product and Country Motor vehicle tires (Thousand units) Amount Table 24 Planned Shipments of Synthetic Rubber and Motor Vehicle Tires Within the Soviet Bloc 1957-60 (Continued) Value Value Value LThousand Ruble) amount Thousand Rubles Amount (Thousand Rubles) Value (Thousand Rubles) Amount USSR To Albania 14.2 2,108 16 To Bulgaria 2 5 .3 2,420 18 6 To Hun ar . 371 1.5 22 . 2,762 20.0 2 6 g y T 0.3 45 0 3 3 1.6 238 1 2 ,9 9 o East Germany 42.0 6 2 6 . 45 0.4 . 178 To Poland To Rumania 146.1 68 2 , 3 21,691 36.0 12.3 5,345 1,826 26.0 96 4 59 3,860 0.4 26.0 59 3,86o To Czechoslovakia . 0.5 10,126 74 190.3 0.5 28,254 74 . 190.9 0 5 14,312 28,343 52.0 192.5 7,720 28,580 2 8 . 74 0..5 74 73. 40,651 257.2 38 187 334.4 49648 2 2 6 9 . 43,440 To Albania 5.0 742 5 0 To Bulgaria To Hungary T 2.0 0.7 297 104 . 1.5 0 9 742 223 5.0 2.0 742 297 5.1 2 0 757 o East Germany 3.0 445 . 134 1.0 148 . 297 To Poland 3.0 445 1.0 148 T 23.9 3,548 24 7 3.0 445 o Rumania To USSR 1.0 1.0 148 . 1.5 3,667 223 17.6 2 0 2,613 3.0 17.0 445 2,524 148 . 297 1.5 22 1.0 148 1.0 3 148 5,432 5,582 31.6 4,690 30.6 4,542 S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 III. Consumption Patterns. As explained in previous reports, 318 consumption of rubber falls into two major categories -- that used in transportation goods and that used in nontransportation goods. The uses of ,rubber in nontransporta- tion goods are many, so the potential demand in this field is almost unlimited. The demand for rubber in most industrialized countries, however, can be judged by the amount consumed in transportation goods because this category usually accounts for 50 to 75 percent of the total consumption. In addition to the number of motor vehicles in a country, there are many factors which influence the demand for motor vehicle tires, such as the condition of the roads, the average ton-miles traveled per vehicle, and the quality of the tires. Furthermore, there is a large intra-Sino-Soviet Bloc trade in tires on which information is incom- plete. Production of tires in individual countries, moreover, is not necessarily proportional to the domestic motor park. For these reasons, the estimated production of tires in the Sino-Soviet Bloc is a much firmer basis for estimating rubber demand than the number of motor vehicles produced or in use. In Albania, where no motor vehicle tires are pro- duced, a small amount of rubber is used for bicycle tires and tire re- pair materials, khich are classified as transportation goods. 319 This amount is assumed to be about 15 to 20 percent of the consumption of rubber in Albania. Because Albania is not economically developed, the amounts involved are small. The consumption of rubber in the USSR can be estimated from the production of motor vehicle tires.* Briefly, it consists of calcu- lating the amount of rubber required to make the estimated number of tires and inner tubes produced, with an addition of 10 percent for bicycle tires and tire repair materials. On the basis of this method- ology, it is believed that transportation goods represent about two- thirds of the total demand for rubber. 32l This proportion closely approximates the average prevailing in the West, but it will tend to decrease as the use of rubber in consumer goods expands. As long as Details of the methodology used are presented in source 320./. - 73 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040~009-3 the Soviet economy is state controlled and emphasis remains on hea industry, the amount of rubber used in nontransportation goods probably will remain about one-half of that used in transportation goods. The estimated consumption of rubber in the USSR in 1946 and 1960 is shown in Table 25.* The consumption of rubber in the European Satellites ha been thoroughly analyzed in a previous report. 322 In Albania the e is one rubber plant, located in Durres, which makes bicycle tires, 1ire repair materials, footwear, and consumer goods. The estimated con p- tion of rubber in Albania in 1946-55 is shown in Table 26.** C. Bulgaria. The Second Five Year Plan (1953-57) of Bulgaria establis~ed a goal of increasing the production of rubber products 23 by 90 pe cent during the period. Production of motor vehicle tires increased rapidly during the postwar years, transportation goods consuming an increasing proportion of the rubber supply. In 1953 it was announce that the Georgi Dimitrov Tire Plant was making bus tires, 32 and i 1954, large tires for heavy trucks were in production. 325 The man facture of the larger sizes would increase the amount of rubber used in tires. The estimated consumption of rubber in Bulgaria in 1946-5 is shown in Table 27.*** D. Czechoslovakia. Czechoslovakia is the major producer of motor vehicle tir s in the European Satellites. In addition, Czechoslovakia produces lar e quantities of industrial and consumer goods made from rubber. On the basis of reported national estimates of total volume of goods and tra.e and related data, it is estimated that transportation goods currently * Table 25 follows on p. 75. Table 26 follows on p. 76. #* Table 27 follows on p. 77. - 74 - Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009.3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Estimated Consumption of Rubber in the USSR a/ 1946-55 and 1960 Estimated Consumption of Rubber (Thousand Metric Tons) Estimated Production of Tires Transportation Thousand Units) Goods Nontransportation Goods Total Year 1946 975 59.6 2 29.8 89.4 1947 , 3,871 77.8 38.9 116.7 1948 205 104.5 5 52.2 156.7 1949 , 6,700 134.5 67.2 201.7 1950 8,245 165.5 82.8 248.3 1951 8,320 167.0 83.5 250.5 1952 8,400 168.6 84.3 252.9 1953 8,990 180.5 90.2 270.7 1954 30,245 205.7 102.8 308.5 6 1955 11,575 232.4 116.2 348. 1960 (Plan) 23,0002 46o.ob 230.0 1 69o.o a. 32 b. Approximate . Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Table 26 Estimated Consumption of Rubber in Albania 1 1946-55 Year Consumption Year Consumption 1946 1947 1948 1949 1950 20 30 6o 100 125 1951 160 1952 180 200 260 375 1953 1954 1955 a. Estimates for 1946-53 are taken from source 3',n/. Estimates for 1954 and 1955 are based on the published goal of the First Five Year Plan, that is, 1955 production to be 300 percent of that in 1950. consume only about 47 percent 328/ of the national rubber demand. The estimated consumption of rut~~ er in Czechoslovakia in 1946-55 shown in Table 28.** E. East Germany. Many reports on the rubber industry of East Germany a available; so it is possible to present a fairly accurate picture rubber consumption in that country. Although the production of m vehicle tires has increased sharply during recent years, there is a severe tire shortage, a condition which probably will continue manufacturing capacity is considerably expanded. 330 More than half of the tires made are large sizes for trucks and buses. In tion, East Germany is an important producer of industrial rubber such as conveyor belts, transmission belting, and rubber hose, soy * For further details, see source 329/? Table 28 follows on p. 78. _76- e of tor still ntil ne- ddi- roods e Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Table 27 Estimated Consumption of Rubber in Bulgaria 1946-55 Year Motor Vehicle Tires and Inner Tubes Repair Materials b Transportation Goods Nontransportation Goods _C/ Total 1946 45 j 10 55 445 500 1947 72 / 15 87 573 660 1948 113 1 23 136 748 884 1949 244 49 293 807 1,100 1950 475 76 551 1,036 1,587 1951 625 1 100 725 1,200 1,925 1952 681 / 180 861 1,113 1,974 1953 741 / 200 941 1,407 g,/ 2,348 1954 1,020 J 230 1,050 1,617 / 2,667 1955 1,184 / 250 1,434 1,858 3,292 a. 331 b. 332/ C- 333/ d. Based on an average weight of 20 pounds per tire and inner tube. e. Based on an average weight of 25 pounds per tire and inner tube. f. Based on an average weight of 30 pounds per tire and inner tube. g. Calculated on the basis of an average annual increase of 14.9 percent, the announced goal for the Second Five Year Plan. Completion of,the planned production for 1954 and the first 9 months of 1955 has been announced. - 77 - S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Estimated Consumption of Rubber in Czechoslovakia a/ 1946-55 Year Transportation Goods Nontransportation Goods 1946 5,069 7,931 13,000 1947 11,063 12,937 24,000 1948 14,769 19,831 34,600 1949 19,000 26,000 45,000 1950 22,520 27,480 50,000 1951 25,570 29,430 55,000 1952 27,095 30,905 58,000 1953 28,620 31,380 6o,000 1954 30,650 34,550 65,200 1955 32,700 36,800 69,500 a. Estimates for 1946-53 are taken from source 33 Estimates for 1951i- and 1955 were calculated from the estimated production of tires. of which are exported to other European Satellites. Consequently, transportation goods require less than 50 percent of the consumption of new rubber in East Germany. The estimated consumption of rubber in East Germany in 1946-55 is shown in Table 29.* F. Hungary. Although the rubber industry of Hungary has been expanded since World War II, it still represents only about 5 percent of the total rubber industry in the European Satellites. The Second Five Year Plan (1956-60) of Hungary provides for further expansion of the indus ry with the objective of Hungary becoming self-sufficient in rubber Table 29 follows on p. 79- - 78 - Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 products. 335 Transportation goods consume approximately one-half of the total demand for rubber in Hungary. The estimated consumption of rubber in Hungary in 1946-55 is shown in Table 30.* Table 29 Estimated Rubber Consumption in East Germany a/ 1946-55 Metric Tons Year Transportation Goods Nontransportation Goods Total 1946 441 12,559 13aOW 1947 688 16,312 17,000 1948 1,504 19,831 21,335 1949 3,061 16,939 20,000 1950 5,850 20,650 26,500 1951 9,417 20,183 29,600 1952 12,100 22,400 34,500 1953 14,640 25,369 1 40,000 1954 18,235 15,865 cf ' 34,100 1955 18,441 20,716 cJ 39,157 a. This table was compiled from data presented in source 336/ and from information based on actual consumption figures and plans for 1953 through 1955. b. Adjusted on the basis of actual production of tires in 1953. c. Difference between total rubber consumption and amount used to make transportation goods. d. Planned total rubber consumption for 1953. e. Planned total rubber consumption for 1954. f. Planned total rubber consumption for 1955. Before World War II, Poland had a large rubber industry. Although it suffered severely during the war the industry had regained its position by 1948. Since that time it has continued to expand with the industrial development of the country. A wide variety of rubber * Table 30 follows on p. 80. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040p09-3 Table 30 Estimated Consumption of Rubber in Hungary a/ 1946-55 Metric Tons Year Transportation Goods Nontransportation Goods Total 1946 545 430 975 1947 795 805 1,600 1948 1,000 1,500 2,500 1949 1,315 1,985 3,300 1950 1,885 2,470 4,355 1951 2,355 3,000 5,355 1952 3,000 3,200 6,200 1953 3,450 3,550 7,000 1954 3,550 3,700 7,250 1955 3,850 3,950 7,800 a. Estimates for 1-9-46 - 3 are taken from source . Estimates for 1954 and 1955 are based on later infor- mation. products are made, not only for domestic consumption but also for export. Domestic demand for motor vehicle tires is approximately 300,000 tires per year; production is estimated to have been 425,000 tires in 1955. / Nontransportation goods are the major consumers of rubber, requiring about 60 percent of total consumption. The esti mated consumption of rubber in Poland in 1946-55 is shown in Table 31 H. Rumania. The demand for rubber in Rumania is not large, as Rumani industrial expansion began after World War II. The Second Five Year Plan (1956-60) of Rumania calls for extensive additions to various industries, which will be reflected in an increased demand for rubber products. Rubber products have been imported either from other Europe * Table 31 follows on p. 81. Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009.3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T Table 31 Estimated Consumption of Rubber in Poland 1 1946-55 Metric Tons Year Transportation Goods Nontransportation Goods Total 1946 580 1,570 2,150 1947 1,585 4,315 5,900 8 1948 2,766 5,354 ,120 1 8 1949 3,389 5,526 5 ,9 1950 4,125 6,375 10,500 0 9 4)900 9 7,100 12,00 000 15 52 1 100 6, 950 7 8,900 12,050 , 20,000 1953 1954 , 9,275 13,725 23,000 OOo 24 1955 9,350 14,650 , a. Satellites or from the USSR, but Rumania should be self-sufficient in domestic production by 1960.* The estimated consumption of rubber in Rumania in 1946-55 is shown in Table 32.** I. Communist China. As it is in other countries, the rubber industry of Communist China is geared to the needs of the country. Its products, in order of importance from the point of view of rubber consumption, are ackshass footwear; motor vehicle tires; small tires for bicycles, jinri, and carts; and industrial and consumer goods. Production of footwear in 1955 was'estimated to be 90 million pairs.* Rubber requirements for this number of shoes will naturally depend on the type of footwear being made. Most of the Chinese Further details are given in source L02. * Table 32 follows on p. 82. See II, A, 9, h, p. 63, above. S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO012000400 9-3 Estimated Consumption of Rubber in Rumania a/ 1946-55 a. Unless otherwise indicated, estimates for 1946- 52 are taken from source 341/. b. Based on the estimated annual production of tires. c. Based on the reported total increase in value of rubber products in 1950-55. 342 Metric Tons Year Transportation Goods Nontransportation Goods Total 1946 153 230 388 1947 48o 220 700 1948 20 1 780 1,500 1949 1, 82 818 2,000 1950 1,323 877 2,200 1951 1,400 1,200 2,600 1952 ? 1,550 1,250 2,800 1953 1,890 b 1,6oo 3,490 1954 2,150 1 1,850 4,000 1955 2,450 b 2,050 4,500 C/ Communists are accustomed to wearing sandals or a soft heelless sho , so the rubber shoes produced are predominantly of the "sneaker" type. In addition, many miners' boots are manufactured. Sneakers require as little as one-eighth of new rubber (about 1/4 pound), whereas the boots may require several kilograms. On the basis of experience of the lar- gest US manufacturer of rubber footwear, it is estimated that the average amount of rubber needed for all footwear would be about 1/4 kg (1/2 pound) per pair. To make 90 million pairs would require 22,50 tons of new rubber, more than 55 percent of the total demand. Most of the production of motor vehicle tires in Communist China 343 is of the sizes 32 inches by 6 inches 10 ply or 34 inches by 7 inches 8 ply, both of which require approximately 12.6 kg (about 27.5 pounds) of rubber for a tire and a tube. Other sizes in- clude large tires for buses and small tires for passenger cars. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Because these sizes are relatively few in number, it is believed that the weight given above represents a conservative average. On the basis of an estimated production of 650,000 tires in 1955, consumption of rubber in motor vehicle tires in China would be slightly more than 8,000 tons. Communist China annually uses many tires for a wide variety of vehicles such, as bicycles, tricycles, jinrickshas, push- carts, and. wagons. Most of these tires have inner tubes which would require new rubber in their construction. The casings made in at least one plant were 50 percent new rubber and 50 percent reclaimed rubber. 344/ Considering the various sizes of tires produced, a conservative estimate of the average requirement would be at least 1 kg of new rubber for each new tire and inner tube. The annual pro- duction of small tires is difficult to estimate, but it was reported in 1948 that manufacturing capacity was 4.05 million tires and 4.45 million inner tubes. 345/ Because the Chinese Communists are empha- sizing production of motor vehicle tires, it is doubtful, considering the small supply of raw materials, that more than 4 million small tires and inner tubes were made in 1955, which would require 4,000 tons of rubber. Other items manufactured in Communist China are hose, belting, printing rolls, and. industrial goods. A few consumer goods, such as hot-water bottles, gloves, and rubberized fabric for rainwear, are produced. The amount of rubber used in these products will be based on availability of raw materials. On the basis of planned pro- duction of tires and footwear and on individual plant studies, it is believed that the total rubber consumption in Communist China in 1955 was approximately 40,000 tons. The following tabulation is a breakdown of this figure: t d Consumption (Metric Tons) Consumption Percent uc Pro Footwear (90 million pairs) 22,500 56.25 Motor vehicle tires (650,000) 8,000 20.00 Small tires (4 million) 4,000 10.00 Industrial and consumer goods 5,500 13-75 Total 40,000 100.00 A recent estimate of the consumption of rubber in Communist China in 1955 is 49,000 tons. 346 - 83 - S -E -C -R -E -T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T IV. Material Balances of Rubber in the Sino-Soviet Bloc. A. General. Estimated material balances of rubber in the Sino-Soviet Bloc in 1946-55 are shown in Table 33.* Arbitrary conclusions cannot be derived from these data, but certain obvious trends are indicated. B. USSR. The USSR was obviously short of rubber for 2 years after World War II. By 1948 the USSR had started to build up supplies and for several years continued a policy of stockpiling rubber. The reversal of this policy, which took place in 1953, has been discussed.** C. European Satellites. Rubber supplies in the European Satellites approximate con- sumption in those countries. Any surpluses which appear probably go into state reserves, which may be drawn on to meet temporary shortages. As they probably never exceed a 6-month requirement, they would not constitute stockpiles from a strategic point of view. D. Communist China. Communist China's operations in the rubber market are not clear. Purchases during 1950 and 1951 were obviously much in excess of domestic needs. Although the reasons for making these purchases are not known, the following reasons may apply: 1. To anticipate the control on the shipment of rubber to Com- munist China which was imposed late in 1951 by the UN, 2. To convert foreign credits into useful raw materials before the COCOM immobilized these accounts, or 3. To provide acceptable exports to the USSR in exchange for the military aid received for use in Korea. Communist China's agreement with Ceylon assured China of more than adequate supplies of rubber during the life of the contract. Nevertheless, Communist China apparently continues efforts to obtain Table 33 follows on p. 86. See II, B, p. 63, above. - 85 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Table 33 Estimated Material Balances of Rubber in the Sino-Soviet Bloc a/ 1946-55 USSR European Satellites C ommunist China Year Supply Demand Difference Suppl De d Diff Total y man erence Supply Demand Difference : 1946 4 70.5 89.4 - 18.9 33.5 30 - 15 4 7 19 1 48 108.4 22 8 116.7 - 8.3 55.7 49.9 5.8 . - 2.5 9 4 1 0. 26 156.7 64.1 73.9 68.4 5.5 69.6 9 9 19 0 5.5 2 8 201.7 4 63.8 92.0 80.4 11.6 28.1 17.0 11.1 86.5 5 1951 72. 288 2 8.3 24.5 91.8 95.3 - 3.5 70.6 21.0 49.6 70.6 1952 .3 6 250.5 37.8 101.3 106.6 - 5.3 74.0 23.0 51.0 83.4 1953 3 7.7 311 8 252.9 2 114.8 129.1 118,7 1o.4 24.4 25.0 - 0.6 124.6 1954 . 282 70.7 08 41.1 154.5 133.0 21.5 64.3 29.0 35.3 97.9 1955 .9 2 4 3 .5 4 - 25.6 157.5 136.3 21.2 70.4 38.0 32.4 28.0 a F 33 . 3 8.6 - 16.2 169.8 148.6 21.2 41.1 40.0 1.1 6.1 . or methodology, see Appendix A. The margin of error is plus or minus 10 percent. ~ ousand etr c o Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 rubber from the underdeveloped countries of Southeast Asia. These efforts undoubtedly are politically motivated; in at least one recent transaction, it is suspected that the rubber purchased and paid for by Communist China went directly to the European Satellites. 347 This situation is discussed more fully below.* * See VI, C, p. 94+, below. -87- Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 V. Inputs. The manufacturing phases of the rubber industry may be divided into two broad categories: (1) chemical, which includes the production of synthetic rubber, rubber chemicals, and reclaimed rubber; and (2) mechanical, which involves the fabrication of rubber products. In the chemical phase the processes are varied, and some are extremely complicated. As an illustration, the following list shows the basic chemicals required to make "Buna S" type of rubber 348/: Acetic acid Alcohol, ethyl Alum Alumina, activated Aluminum chloride, anhydrous Ammonia, anhydrous Antioxident, BLE Bardol Benzene Casein Caustic soda "Chlorex" Chromium acetate Commercial acetone Ethylene Furfural Hydrogen chloride Hydroquinone Lauryl mercaptan Manganese acetate Nitric acid, fuming Oxalic acid Phenyl a-naphthylamine Phenyl b-naphthylamine Potassium persulfate Potassium tantalum fluoride Salt Silica gel Sodium bicarbonate Sodium carbonate, anhydrous SONJ - 1707 catalyst Sulfonated pine oil Sulfur Sulfuric acid, 95 percent Sulfuric acid, 98 percent Titanium dioxide Triethanolamine Zinc sulfate When it is considered that Buna S is only one of many types of synthetic rubber, it is evident that a detailed list of material inputs, if it were obtainable, would be of little practical value and beyond the scope of this report. Alcohol requirements for making synthetic rubber by the Soviet process have been discussed in a previous report. 349/ A recent statement in a Soviet book, which called atten- tion to the economic 350/ advantages of petroleum as a source of alco- hol, stated that for the manufacture of 1 passenger-car tire, 50 liters of alcohol normally are used. Fifty liters of alcohol equal 200 kg (about 450 pounds) of grain, or 500 kg (about 1,100 pounds) of - 89 - Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 potatoes. In making Sovprene, the Soviet equivalent for oil-resist4nt neoprene, the principal ingredients are acetylene from calcium carb de and hydrogen chloride. According to the US originators of the pro- cess, 2,750 kg of calcium carbide and 4+14 kg of hydrogen chloride are required per ton of product. According to captured documents, during World War II, Germany required the following inputs to make 1 ton of Buna rubber: Input Process water 230 to 250 cubic meters Steam 3.3 to 3.5 tons Electricity 145 to 165 kilowatt-hours (kwh) Nitrogen 13 to 16 cubic meters Air 7.5 to 8.5 cubic meters Treated water 1.8 to 2.0 cubic meters No information is available on capital investment, manufacturing costs, or labor requirements in making synthetic rubber in the USSR. In the mechanical phase a wide variety of materials in additi to rubber is required to make finished end products. For example, the standard formula for a tire-tread mix will contain from 10 to 15 ingredients in addition to rubber. Even the quality and percentage of rubber used will vary with the nature of the product to be made. For this reason, it is not possible to estimate the inputs for the rubber industry in terms of specific quantities of different materials. Only one reference to utilities requirements has been found which is applicable to the Sino-Soviet Bloc. A recent Soviet text Ll stated that a motor vehicle tire plant requires 20,000 to 25,000 kwb of elec- trical energy per 1,000 tires produced. On that basis, the tire indus- try of the USSR would consume about 250 million kwh of electricity per year. B. Capital Investment. No statistics have been noted on capital investment in the rubber industry of the Sino-Soviet Bloc since World War II. In the earlier days of the USSR, periodic announcements were made concerning investments, which permit comparison between the rubber and chemical industries during that period. In the mid-1920's, before the develop- ment of synthetic rubber, the rubber industry received about 10 percent Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 of the capital which went into the Soviet chemical industry. For instance, the 1926-27 figure for chemicals was 60.1 million rubles 352/ compared with 6.3 million rubles for rubber. 353/ In the early 1930's the USSR initiated a major program for the construction of four plants to make synthetic rubber. Consequently, the proportion of capital in- vested in rubber compared with that invested in chemicals rose to a peak of 14 percent in 1933. 354 By 1936, however, this proportion had dropped to about 7 percent (101 million rubles for rubber 355 compared with 1,535 million rubles for chemicals). 356/ J No comparable statistics have been found covering the period since 1940, so it is not possible to give an accurate estimate of the amount invested in the industry to date, nor of its present value. On the other hand, it is believed possible to make a general estimate of investments during the Sixth Five Year Plan, based on the planned physical expansion during that period. The following factors may be significant: 1. Production of synthetic rubber is scheduled for the greatest expansion of any product in the rubber and chemical indus- tries -- 220 percent of production in 1955 compared with 204 percent for mineral fertilizers and less than 200 percent for other chemical products mentioned in the Sixth Five Year Plan. 2., Production of tires is to be doubled during the same period; it is specified that seven major enterprises will be built and put into operation for making tires and technical articles. 3. No percentage figure is given for the over-all expansion of the chemical industry, Industrial production, however, is scheduled to increase only 65 percent. It is evident, therefore, that the planners are emphasizing expansion in the rubber industry during 1955-60. In view of the above factors and of the available prewar information, it is probable that expansion in the rubber industry will receive capital investments in the range of 10 to 15 percent of those devoted to the chemical industry. In a recent report 357/ the investments in the chemical industry were estimated to be 50 billion to 60 billion rubles during the Sixth Five Year Plan period. It therefore seems probable that the expansion scheduled to take place in the rubber industry will require 5 billion to 7.5 billion rubles. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 VI. Capabilities, Vulnerabilities, and Intentions. A. Capabilities. The Sino-Soviet Bloc is capable of meeting its strategic requirements for rubber products. In certain fields, however, Sovietitechnology.appears to be considerably behind that of the US. For instance, in every country of the Bloc, with the exception of Communist China, there have been press announcements to the effect that tubeless tires were in production or being planned. Because the Bloc has no supplies of butyl rubber, which is essential for the production of tubeless tires, it is probable that this develop- ment will fail from an economic point of view. There have been several recent reports of failures of Soviet truck tires after only a few thousand miles of service. The corresponding tires made in the US would normally give 50,000 miles of service. A similar de- ficiency in Czechoslovak-made tires has been reported, which would indicate probable inferiority in manufacturing methods. It was recently announced that the Voronezh Synthetic Rubber Plant had begun production of oil-extended rubber. This development, if it is in process, could have a considerable effect on the pro- duction of synthetic rubber in the Sino-Soviet Bloc. Experience in the US indicates that production can be increased at least 20 percent, with no decrease in quality, by the use of oil extension. Soviet scientists have been aware of this important improvement, but until recently there has been no indication that they had succeeded in applying it to their manufacturing processes. On the other hand, it is improbable that the Sino-Soviet Bloc will attempt in the foreseeable future to manufacture butyl rubber on a commercial scale. Manufacture of this material, which was developed in the US, requires temperatures of 140 degrees below zero, and the process is extremely difficult. Large amounts of special solvents obtained from petroleum are required, and the in- formation obtained to date indicates that the Bloc does not have either the equipment or the materials available to produce butyl rubber. B. Vulnerabilities. From a geographic point of view, the manufacture of synthetic rubber by the Sino-Soviet Bloc is well dispersed. The largest plant is that at Schkopau in East Germany and has a capacity of more than 70,000 tons, about 22 percent of the total Bloc capacity. Second in Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040099-3 size is the plant at Voronezh, which is estimated to have a capacity of slightly more than 50,000 tons, about 16 percent of the total Bloc capacity. Raw materials -- other than synthetic rubber -- required by the Bloc rubber industry appear to be in adequate suppl , although the USSR does import quantities of Egyptian long-staple cotton for making tire cord. In an emergency, domestic supplies of cotton could be substituted without a serious impairment of quality. As has been shown, strategic reserves of natural rubber probably are more than would be needed to meet an emergency. It is probable however, that the USSR is heavily dependent on East Germany for supplies of certain special types of rubber and for rubber chemicals. If these supplies were denied the USSR, a serious dislocation in th industry might result. Because the rubber industry in the Sino-Soviet Bloc is operating at approximately rated capacity, it is unlikely that a shift in the strategic intentions of the USSR would be indicated by a pronounced change in the operations of the industry. A sudden activity in the manufacture of specific war items, such as gas masks, might well foreshadow aggressive intentions, but such a shif would be difficult to detect. The principal bulk item used by the military forces is, of course, tires. Because Soviet truck sizes are standardized for either military or nonmilitary use, a sudden shift to wartime con- ditions would not involve radical changes in the operations of tire plants. A recent report 358/ estimated that the Sino-Soviet Bloc demand for tires during the first year of hostilities would be as follows : Military 6,197,000 Nonmilitary 8,255,000 Miscellaneous 91+0,000 Total 15,392,000 This number of tires would require about 292,000 tons of ru ber, which is within the capacity and resources of the tire industry in he Sino-Soviet Bloc. For these reasons, it is unlikely that Soviet intentions can be judged by the operations of the rubber industry. -94.- Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T APPENDIX A METHODOLOGY The methodology used in this report follows in general that used in previous reports published on the rubber industry in the Sino-Soviet Bloc. In preparing the tables showing the production of individual plants, it was necessary to assume that where information to the con- trary was lacking, the expanded total production of the product in question had taken place at about the same rate in each plant. It is assumed that methods found to increase efficiency or production in one plant would quickly be adopted by plants of a similar type. Rubber plants in the USSR are controlled by one central authority and tend to be standardized to a greater extent than those in the US, where design and operations are privately controlled. Fabricating plants usually operate one shift per day; hence their production can be increased by working longer hours. On the other hand, plants making synthetic rubber and carbon black operate 24+ hours per day. Thus, although minor increases in production can be effected by improvements in oper- ation, substantial increases can be attained only by the addition of more equipment. Another limiting factor in production of rubber may be the availa- bility of raw materials -- for example, in the case of the synthetic rubber plant at Yerevan which makes Sovprene rubber from acetylene produced from calcium carbide. A recent study has determined that the amount of calcium carbide available for the production of Sovprene would limit production to.25,000 tons per year. Because it is known that the USSR has recently been trying to buy neoprene, which is the US equivalent of Sovprene, it seems probable that production at Yerevan has not been expanded. The figures for the production of reclaimed rubber in most countries of the Sino-Soviet Bloc are usually estimates because this material is normally made in plants turning out finished products in which re- claimed rubber is used as a component. Thus production is consumed in the plant, and no quantitative figures are available. East Germany has several plants devoted to making reclaimed rubber, which is shipped to rubber fabricating plants. Information on these plants was the basis for the figures given on p. 32, above. S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400q9-3 New material about the rubber industry of Communist China is bas d on plant studies, economic reports on the industry before 1949, and press reports published since the Communists came to power. Little specific information is available on the status of individual plants in China since 1949; hence the finished data are the product of many bits of information. The Chinese Communist authorities are followi a policy of increasing efficiency in the industry, a policy which ha resulted in closing some less efficient plants and moving their equip- ment. Information on these moves is fragmentary, and the exact number of plants now in existence is uncertain. In the case of nonrubber tre components, statistics were developed from unpublished reports on th se subjects. The methodology used to determine demand* is based on the produc tion of motor vehicle tires, because Western statistics divide rubbe consumption into that used in transportation goods and that used in nontransportation goods. There usually is a general relationship between the two categories. The great variety of nontransportation goods produced and the fact that the number made in each country is generally dependent on the social and economic development of that particular area make it impossible to estimate consumption patterns with any degree of accuracy. For transportation goods, attempts were made to correlate the motor vehicle park and estimates of consumption of motor fuel with production of tires in each of the Sino-Soviet Bloc countries in an effort to refine the estimate of demand for rubber i transportation goods. The imponderables of road conditions, the aver- age ton-kilometers of travel, and the quality of tires defeated any attempt to correlate data from the countries being studied with sta- tistics from Western countries. In preparing the data for material balances,** it was realized that there is extensive intra-Bloc trade in natural and synthetic rubber as well as in rubber products. Because statistics on this trade are incomplete, it was believed that a more accurate picture of the rubber situation in the Sino-Soviet Bloc would be presented by the method used. Except for a small quantity of synthetic rubber which appeared on the New York market in 1955 and was suspected of coming from. East Germany, there have been no reports of the Bloc exporting rubber A few tires have been shipped by Czechoslovakia to the Middle East, and conversely, Italy has shipped some tires to Bulgaria. Because these x See III, p. 73, above. See IV, p. 85, above. - 96 - Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 shipments have been relatively small and were believed to counter- balance each other, they have been ignored as being less than the probable accuracy of the final estimates. The figures for supply* were made up of known imports of natural rubber plus domestic production of natural, synthetic, and reclaimed rubber. Estimates of demand were developed from figures for produc- tion of tires and other available data, following the methods dis- cussed in previous reports. To check the accuracy of the results, the data on imports of natural rubber over a period of several years have been examined and compared with the estimated over-all figures for demand. These calculations appear to confirm the figures shown in Table 23.** In preparing the figures for stockpiles,**-*' previous estimates had to be revised because more accurate data had become available on production of tires in the USSR in 1952 and in 1953. The net result was that almost 50,000 tons less rubber probably were consumed in those 2 years than had previously been estimated. This amount was assumed to be available for stockpiling in addition to the amounts previously estimated, making the total maximum stockpile about 300,000 tons at the end of 1952. As was stated, there is strong evi- dence that a policy of reducing this reserve is now in effect. * See II, p. 7, above. * P. 68, above. See II, B, p. 63, above. Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 25X1 B4d Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T APPENDIX B GAPS IN INTELLIGENCE Very little specific information is available on the current operations at the synthetic rubber plants in the USSR. New plants reportedly have been erected or are in production at Ryshkovo (51?42' N - 36?12' E) and Chkalov (51?45' N - 45?06' E), but, aside from press notices, no data have been received on either plant. 1 A0481 E) plant reportedly was under construction rma,tionshasybeen received on this in southern Siberia in 1953. plant since 1954, when it was still under construction. Estimates of production of tire plants in the USSR are based on the assumption that expansion has taken place in.all of the plants, t that at Yaroslavl', at about the same rate. Information on the production of both synthetic rubber and tires in the European Satellites, except for East Germany, is far from complete. It would be helpful to know what progress is being made on the petro- chemical complex (scheduled to make synthetic rubber) being built by Hungary and Rumania,because, when in operation, this complex will be a major industrial development for these countries. A major gap in intelligence exists in knowledge of the cost of constructing various facilities in the rubber industry. Although figures may be obtained based on US experience, conditions in the Sino-Soviet Bloc may alter the costs considerably. instance, the extreme weather conditions at Usol ys might costs by as much as 50 percent. Concomitant with this question is that of manufacturing costs. Although there are some figures on the retail selling price of some sizes of tires, these figures are for only a few sizes and may or may not reflect plant costs. Information on the rubber industry of China is fairly good through 1948. Since the Communists came to power, however, the reports have been few in number and often contradictory. Although official imports of natural rubber are reported, many shipments are consigned to other - 99 - S-E-C-R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 25X1 B4 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 ports but are suspected of ending up in Communist China. Also they is a considerable amount of rubber smuggled out of Indonesia, part of which probably finds its way into China. All US sources seem alert to report such smuggling, but the devices used by the Chinese Communis s to circumvent the rubber embargo make detection extremely difficult As to the industry within China, a campaign has been undertaken to eliminate waste, not only of materials but also of manpower and equ p- ment. Small plants have been closed, and usable equipment has been moved to larger and more modern plants. Very few data, except such information as that derived from press notices of quotas met, have een published on these modern plants. Current information on China is e weakest of any obtained from the Sino-Soviet Bloc. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 S-E-C-R-E-T APPENDIX C SOURCE REFERENCES Evaluations, following the classification entry and designated "Eval.," have the following significance: Source of Information Doc. - Documentary 1 - Confirmed by other sources A - Completely reliable 2 - Probably true B - Usually reliable 3 - Possibly true C - Fairly reliable 4 - Doubtful D - Not usually reliable 5 - Probably false - Not reliable 6 - Cannot be judged F Cannot be judged "Docu entary" refers to original documents of foreign governments and organzations; copies or translations of such documents by a staff officer; for information extracted from such documents by a staff officer, all of whych may carry the field evaluation "Documentary." Evaluati~4ns not otherwise designated are those appearing on the cited documen_; those designated "RR" are by the author of this report. No "RR" eval ition is given when the author agrees with the evaluation on the cited document. 25X 1 Al. 2. Wilso , Trees an st Tubes ew or , , p. lk~u . U. Ev4a1. RR 1. 3. Ibid., 14+2 ff. U. Eval. BR 1. 4. Ibid., p k. 196 ff. U. Eval. RR 1. Approved For Release 19p9/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400q 5. USSR, Embassy, Washington. The Great Stalin Five Year Plan, 1946, p. 9. U. Eval. Doc. 6. CIA. Chart no 13322, Evolution of the Institutional Structure of the Soviet State, T97-577 U. 7. CIA. FDD Summary no 350, 27 Jan 55, Weekly Economic Informa- tion Report, Eastern Europe. C. Eval. RR 2. 8. CIA. CIA RR 19, The Rubber Position of the Soviet Bloc, 19 Jan 53, p. A-1. S. 9. Ibid. C-4=. S. 10. 25X1A 11. CIA. CIA/RR 19 (8, above.), p. 6. S. 12. Izvestiya, 29 Jan 52. U. Eval. Doc. Pravda, 23 Jan 53. U. Eval. Doc. Planovoye khozyaystvo, Jan 54. U. Eval. Doc. State, Moscow. Dsp 10021, 21 Jan 55. C. Eval. RR 1. 13. 14. Ibid., p. 9. 25X1A 15 16. Gt Brit, Rubber Study Group. Rubber Statistical Bulle- vol 10, no 2, Nov 55. U. Eval. Doc. 25X1A 17. 18. Khimicheskaya promyshlennost', no 5, Moscow, Jul-Aug p. 257-261. OFF USE. Eval. Doc. 19. CIA. CIA/RR 19 (8, above), p. B-8. S. 20. Ibid., p. C-62. S. 21. CIA. CIA/RR 19 (8, above). 22. Ibid., p. C-22. S. 23. Ibid., p. C-5. S. 24. Planovoye khozyaystvo, Jan 54. U. Eval. Doc. 26. 27. Gt Brit, Rubber Study Group. Rubber Statistical\ (16, above), p. 39. U. Eval. Doc. 28. CIA. CIA/RR 19 (8, above), p. C-73. S. 29. Ibid., p. 10. S. 30. Ibid., p. 16. S. FOIAb3bl Approved For Release 1999/09/02 CIA-RDP79-01093A0012000400q Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 32. 25X1A 25X1X7 33. CIA. CIA/RR 19 (8, above). 34. Kel'tsev, V.V., and Tesner, P.A. Sazha svo stva proizvodstvo 25X1 A 35 ? i primeneniye (Carbon Black Properties, Production and Use), 25X1 A 36. 37. Przeglad samochodowy, vol 1, no b, Warsaw, Jun U. Eval. Doc. 38. Priroda, no 9, Sep 53, p. 23-30. U. Eval. Doc. 39. Tekstil'naya promyshlennost', Moscow, Oct 47. U. Eval. Doc. 40. Navy. ONI-2 -2, Jan 54. S. Eval. RR 1. 41. Rubber Age, Oct 55, p. 142. U. Eval. RR 1. 42. CIA. CIA RR 19 (8, above), p. E-4. S. and 1 Feb 54. U. Eval. Doc. 43. 25X1 A 44. 45. CIA. CIA/EE , above), p. b. 46. Khimicheskaya promyshlennost', Jan 54. U. Eval. RR 3. 47. CIA. CIA RR 19 , above), p. E-12. S. 48. Pravda, 18 Jan 48. U. Eval. Doc. 49. CIA. CIA/RR 19 (8, above), p. E-12. S. 50. Izvestiya, 29 Jan 52. U. Eval. Doc. 51. 52. Khimicheskaya pro shlennost', Jan 54. U. Eval. Doc. 53. 25X1A 54. MEMO 55. Planovo s , n, Jun p. . 25X1 A 56. FOIAb3b1 57. CIA. CIA/RR PR-56, The Production and Consumption of Rubber in the European Satellites, 1 May 54, p. 15. SUS ONLY. 58. Vecherni novini., no 73, 27 Mar 54, p. 1. U. Eval. Doc. 59? CIA. CIA RR 19 (8, above), p. 16. S. 60. CIA. CIA/RR PR-56 (57, above), p. 16. S/US ONLY. Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 61 62 25X1 A 63 64 65. 66. 67. 68. 25X1 A 69. 70. 72. STATSPEC 73. 74. 75. 76. 77. 78. STATSPEC79 80. 81. 82. 83. 84. 25X1 A 85. 86. 25X1A 8 CIA/RR PR-56 (57, above), p. 33. S/US ONLY. Tezhka promishlenost, Sofia, vol 3, no 9, 1954, p. 12-18. U. Eval. Doc. CIA. FDD Summary no 486, 28 Nov 55, Weekly Economic Info Ibid., 7 Dec 55, p. HH 4? OFF USE. Eval. RR 2. CIA. CIA/RR PR-56 (57, above), p. 17. S/US ONLY. Ibid. Ibid., p. 16. S/US ONLY. Ibid., p. 89. s/US ONLY. CIA. FDD Summary no 725, 23 Nov 55, Weekly Economic Info - tion Report on Eastern Europe, p. 40. OFF USE. Eval. Doc Ibid., 7 Dec 55, p. HH 4. OFF USE. Eval. RR 3. CIA. CIA/RR PR-56 (57, above), p. 94. s/US ONLY. CIA. FDD Special Translation no -13, 26 Feb 51. S. Eval. oc. Natural Rubber News, New York, Jan 56, p. 9-10. U. 88. State, Duesseldorf. Dsp 133, Eval. RR 1. 24 Oct 54, info 1954. OIAb3b1 89. State, La Paz. Ds 147. 0 go. 25X1A Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 25X1A 91 92 93 94? 95. 25X1 A 96. 98. 99. no 273, 9 Feb 50, info 1949. FOIAb3bl 108. 109 110 25X1A 111 112 113 114. 115. 116. 25X1A l117. 18- 119. 120. 121. 122. 123. German Plastics Practice, Cambridge, Mass., 194b, p. 7U'(. U. Eval. RR 1. CIA. CIA/RR PR-56 (57, above), CIA. CIA/RR PR-56 (57, above p. 24. SUS Radio Free Europe. Item 3376-55, 29 Apr 55. 25X1A6b FOIAb3bl Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400( 9-3 124. 25X1A 125. 126. STATSPEC127. 130. 131. 132. 25X1 A33 134. 135. 136. 137. 138. 139. 14o. 11+1. 142. 143. 25X1A 144. 151. STATSPEC Translation no 395, 26 Jan 55, P. 199. OFF Eval. Doc. USSR. Khozyaystvennoye razvitiye stran narodnoy demokratili cracies), Moscow, 1955, p. 11+5. U. Eval. Doc. (hereaft6r referred to as USSR. Khozyaystvennoye) CIA. FDD UG-1+19, 4 Nov 53. S/US ONLY. Eval. Doc. Ibid. State, Budapest. Dsp 137, 29 Jan 50. U. Eval. RR 1. Hungary. "The Five Year Plan of the Hungarian People's Republic," Hungary Bulletin, Budapest, 1950, p. 22- U. Eval. Doc. 152. State/Gt Brit, Budapest. Hungarian Press Summary, no 105, 9 May 55. U. Eval. RR 3. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400Q9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 154. 25X1 A 155. 156. 25X1A1571 158. 159. 160. 161. 162. 163- 164. 165. 166. 167. 25X1A 168. 169. 170. 171. 173. 174. 25X1 A 175. 176. 25X1 A 177 178. 25X1A179' 180. 181. 182. 25X1 A 183 Hungarian Central Statistical Office. Magyar statisztikai zsebkonyv (Hungarian Statistical Handbook), Budapest, 19 8, p. 1U. Eval. Doc. Ibid. State,.Budapest. Dsp 312, 5 Jan 54. C. Eval. RR 1. CIA. CIA RR PR-56 (57, above), p. 24. S/US ONLY. Ibid., p. 104. S/US ONLY. CIA. CIA/RR PR-56 (57, above), p. 33. S/US ONLY. Chemie-Ingeneur-Technik-Weinheim (Chemical Engineering Tech- CIA. CIA/RR.PR-56 (57, above), p. 29. S/US ONLY. Ibid., p. 30. S/US ONLY. Sejm uchwala plan szestoletni (Parliament Decrees the Six Year Plan), Warsaw, 1951. U. Eval. Doc. Air. Treasure Island 151658, Apr 54. U. Eval. Doc. (tr of Przemysl chemiczny, no 1, Jan 51. U) State/Gt Brit, Warsaw. Polish Press Summary, 28 Dec 55, -CIA. CIA/RR PR-56 (57, above), p. 21. S/US 0 FOIAb3b1 FOIAb3b1 Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400( 9-3 184. 185. 25X1A 186. 187. 188. 189. 190. 25X1A191. 192. 193. 194. 195 25X1 A........196 197 198 199 200. 201. 203. 204. 205. 25X1A 206. 207. 25X1 A 209 ? 210. 211. 25X1 A 2~3 . 214. CIA. cIA/RR PR-56 (57, above), p. 25. S/US ONLY. CIA. CIA/RR PR-56+(57, above), p. 97. S/US ONLY- Ibid., p. 45. S/US ONLY. Ibid,, p. 106. S/US ONLY. Ibid. CIA. CIA/RR PR-; Ibid. CIA. CIA/RR PR-56 (57, above), P. 34. State/Gt Brit, Warsaw. Polish Press Summary, 15 Dec 4 U Eval. RR 3- 55,, P? Przeglad samochodowy, vol 1, no 6, Warsaw, Jun 47. U. Eval. Doc. Sejm uchwala plan szestoletni (176, above). CIA. FDD SuT many no 16 Feb 56, Weekly Economic Inf rma- tion Report on Eastern Europe, p. 27. OFF USE. Eval. oc. State Gt Brit, Warsaw. Polish Press Summary, 28 Dec 55? U. State, Board of Economic Welfare. Eval. RR 1. -io8- FOIAb3bl Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400( 9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 25X1A 216. 217. Nev Times, no 50, Dec va 1`0- 218. 25X1 A 219. 220. 221. 222. State/Gt Brit, Bucharest. Rpt no 1956-15, 19 Jan 5b, p. OFF USE. Eval. Doc. 25X1 A 223 224. BBC. Summary of World Broadcasts., no , pt II b, 12 Dec 55, p. 9. U. Eval. RR 3. 225. CIA. CIA/RR PR-56 (57, above), p. 107. SUS ONLY. 226. 25X1A 227. 228. 229. 230. 25X1 A 231. 232. 233. 234. 235. 25X1A 236. 237. 238. 239. 21t0. 241. 242. 2J+3 24i-. 245. CIA. CIA/RR PR-56 (57, above), P. 3 USSR. Khozyraystvennoye (129, above). State/Gt Brit, Bucharest. Rumanian Press Review, no 944, 4 Feb 51. U. Eval. RR 2. State, Bucharest. Dap 1953-5, 27 Dec 52. S. Eval. RR 1. CIA. CIA/RR PR-56 (57, above), p. 31. S/US ONLY. Aurora University, Shanghai. Monthly Bulletin, no 19, Jun-Jul 48. U. Eval. RR 1. Ibid. Ibid. State, Hong Kong. Dap 196, 18 Aug 55, p. 18, info 1955- U. Eval. RR 1. FOIAb3bl Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400(9-3 21+7. CIA. FDD Summary no 950, 16 Dec 51+, info 4 Dec 51+. OFF USE. Eval. Doc. 248. 25X1A 249. 251. 252. 253. 251+. Pauley, Edwin W. Report on Japanese Assets in Manchuria 25X1A 255. 256. 257. 258. 259. 25X1 A 260. 25X1A 261. 25X1 A 262. FDD u-6729 263. State, Hong Kon 261+. 13 Nov 54. oFF 265. State, Hong Kong. Dsp 292, 15 Sep 54. C. Eval. RR 1. 266. Ibid., dsp 360, 29 Sep 55. C. Eval. RR 1. 267. Ibid., dsp 391, 25 Jun 56. C. Eval. RR 1. 268. Ibid., dsp 2333, 21 Jun 51+. s. Eval. RR 1. 269. 25X1A 270. FOIIAb3b1 FOIAb3bl Eval. 1. FOI b3bl Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400( 9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 25X1 A 272. 273? 274+. 275. 25X1 A 276. 277. 25X1 A 278. 279. 282. 25X1A 283. 284. 285. 286. 287. 288. 289. 290. 291. 292. 25X1A 293. 29k. 295. 296. 297. 298. 25X1 A 299- 300. FOIAb3bl Hsinhua News Agency. uaiiy news r~~cuzsc, 2 t ~~. 1 D Eva a o. MEN Daily news release, Aug . ency News A h i . g ua n Hs Eval. RR 6. Aurora University, Shanghai. ul 1+8 . U. Eval. RR 1. NIS 399, China, sec ibid. Ibid Monthly Bulletin, no 19, State, Hong Kong. Dsp )4-29, 14 Oct 52 . S. Eval. RR 1. Ibid., dsp 378, 6 Sep 55. S. Eval. RR I. Ibid., dsp 292, 15 Sep 54. S. Eval. RR 1. Ibid., dsp 360, 29 Sep 55- S. Ibid., dsp 392, 26 Jan 56. S. Ibid., dsp 378, 6 Sep 55. S. Eval. RR 1. Eval. RR 1. Gt Brit, Rubber Study Group. Rubber Statistical Bulletin, vol 10, no 7, Apr 56. U. Eval. Doc. State, Bern. Dsp 5, 2 Jul 53. R. Eval. F-6. Gt Brit, Rubber Study Group. Rubber Statistical Bulletin, vol 10, no 7, Apr 56. U. Eval. Doc. 6 . ate. Bern. Dsp 5, 2 Jul 55. R. Eval. RR Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400( 9-3 301. 25X1 A 304. 305. 306. 307. 308. 25X1A 309. 310. 311. 319. 320. 321. 322. 25X1 A 324. 325. 326. 327. 328. 329. 25X1 A 330. 331. 332. Gt Brit, Rubber Study Group. Rubber Statistical Bulletin, vol 10, no 5, Feb 56, p. 7-9. U. Eval. Doc. State, Rangoon. Dsp 218. 30 De State, Rangoon. Dsp 467, 30 Sep 55. OFF USE. Eval. RR 1. The Economist, 17 Nov 53. U. Eval. RR 1. State, Medan. Dsp 32, 5 Aug 55. OFF USE. Eval. RR 1. CIA. CIA/RR 19 (8, above). CIA. CIA/RR PR-56 (57, above). CIA. CIA/RR PR-56 (57, above), p. 10. S/US ONLY. CIA. CIA/RR 19 (8, above). Ibid., p. E-10. S. CIA. CIA/RR PR-56 (57, above), p. 27 if. S/US ONLY. CIA. CIA/RR 19 ($, above), p. CIA. CIA/RR PR-56 (57, above), P. Ibid., p. 4O. S/Us ONLY. Ibid.. 40-1+1. [S CIA. CIA/ER PR-5? (57, above), Ibid., p. 38. s/tMs ONLY. S. 4+2. S/US ONLY. p. 36. s/US ONLY. Approved For Release 1999/09/02 : CIA-RDP79-01093A0012000400( 9-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 CIA. CIA/RR PR- 333. Ibid., p. 41. S/US ONLY. 334? 335. 336. 337. 338- 339. 340. 341. 342. 343. 25X1A 344. 345. S-E-C-R-E-T CIA. CIA RRPR-56 (57, above Ibid., p. 31. S/US ONLY. FOIAb3bl FOIAb3bl FOIAb3bl 346 25X1 X7 347. State, to Port Baia. Usp , 1. 348. War Production Board. Lateral Study III, Chemical Requirements for Rubber, 9 Sep 42. S. Eval. RR 1. 349. CIA. CIA RR 19 (8, above) 350. Nekrasov, N.N. Khimizatsiya v narodnom khozyayst Moscow (Chemicals in the National Economy of the-USSR), , 1955, p. 150. U. Eval. RR 3. 351. Ekonomichesko o pro ektirovaniya krupnykh idrostantsi v ever osistemakh Economic Planning of Electrical Distribution Systems), Moscow, 1953. U. Eval. Doc. 352. Segal, L., and Santalov, A.A. Soviet Union Yearbook, London, 1929, p. 152. U. Eval. RR 1. 353. Council for Economic and Industrial Research, Inc. Rpt A-10, The Rubber Industry of the USSR, by Elizabeth Marbury, Apr 55, p? 57? U? Eval. RR 1. 354. Zhurnal khimicheskoy promyshlennosti, no 2, 1933, p? 11. U. Eval. RR 1. 355. Council for Economic and Industrial Research, Inc. Rpt A-10 (353, above). S -E-C -R-E-T Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040009-3 Approved For Release 1999/09/02 : CIA-RDP79-01093AO01200040~009-3 25X1 A 356 357. CIA. ORR Project 22.862, Ca ital Investments in the Chemi L Industry (to be published). S. 358. 25X1A -114 - Approved For Release 1999/09/02 : CIA-RDP79-01093A001200040009.3 Approved For Relea r /dP02 CIA-RDP79-01093AO01200040009-3 SECRET- Approved For Releas i&JEEP79-01093AO01 200040009-3 IN