QUESTIONS RELATING TO COAL, POLISH REQUESTS FOR SPECIALIZED EQUIPMENT, AND POLISH INDUSTRY AND INVESTMENT (MARCH 5-6, 1957)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000200040025-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: November 9, 2016
• Document Release Date: July 10, 1998
• Sequence Number: 25
• Publication Date: March 9, 1957
• Content Type: MF

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9 March 1957
MEMORANDUM POR: Assistant Director for Research and Reports
SUBJECT:
Questions Relating to Coal, Polish Requests for
Specialized Equipment, and Polish Industry and
Investment (March 5-6, 1957)
NOTE: Copies of the direct questions raised are available for the
first two sets, we will present the question, then the answer
given.
Coal (Answered. by Raczkowski)
1. .911... Can you provide us with information with respect to the working
force in coal mining, including present and prospective employ:omit,
work-shifts, output per man-hour and conditions of employment?
A. The following labor force figures:
1939
- 250,000
1955
- 334,000
(34 percent increase)
1960
- Plan 390,000
(16 percent increase)
Composition of the 1955 labor force was given:
288,000 laborers
21,000 engineers and technicians
25,000 administrative employees, research workers and
apprentices.
Poles were short of technicians for the mines after the war. Ratios
of technicians to miners given:
43:1,000 for 1949
56:1,000 for 1955
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The standard shift in the mine from 1946-55 was 8-1/2 hours
(portal to portal), reduced to 8 hours in 1956.
Initially after World War I/, they received quick increases in
coal production without significant additions of capital, just kept
adding workers. To get more coal for export to finance the Six Year
Plan (1949-55), they introduced Sunday shifts with double pay as well
as other overtime. These shifts were to be abandoned by 1955 but
they couldn't be abandoned and meet production requirements. Sunday
ehifts (24) were continued thiough 1956 and at least 12 such shifts
must be worked in 1957, hope to abandon Sunday shifts in 1958.
Employment in the mines was characterized by high turnover, as
high as 50 percent in some years. Tb maintain the required rate of
employment, "we had to put prisoners and soldiers in the mines."
20,000 prisoners (all of them) were taken out of the mines in 1956
sad. "most" of the soldiers have now (Itardh 1957) been taken out.
Production must be reduced because of these acts, foresee a 20000,000
MT reduction for 1957. Reduction may not be this great, January 1957
production was well over planned output. Dave had a light winter
though.) Per capita production in the coal mining industry: (Includes
all workers, not just miners.)
1946 - 1,004 KG
1949 - 1,328 (the peak year)
1955 - 1,163
1956 - About 1955 level
1960 - 1,235 (Plan)
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The principal causes for the fluctuations were Characterized as:
1) nigh labor turnover.
2) Too little Capital equipment introduced into the nines.
3) Miners objected to much of the capital equipment installed.
4) Extension of the tranaport distances that coal had to be
moved underground.
Coal miners other than "prisoners and. soldiers" did have freedom to
move from job to job as they chose.
mr. Raczkowski mentioned that they had trouble using conventional
coal cutting machinery in deep mines because of pressure as well as
because of the large number of props that had to be installed.
2. Q. What are wage rates in coal mining and how do they compare with
wages in other industries?
A. Wages in mining have been higher than the industry average and
higher than in most other industries; for 1955 average wage in the
coal mining industry was 1,715 zloty per month, average for all
industrial workers was 1,221. Since 1955 (and before as well) the
coal miners have been given many additional "fringe benefits" not
available to other workers as well as additional wage increases.
These additional incentives have brought additional labor into the
mines.
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TO give some additional meaning to the wages, mr. Raczkowski
gave some common consumer goods prices warning that for some there
were wide ranges in quality and seasons but that be would try to
cover these with price ranges:
xtr Bread
3.5 zloty
Meat
16 -
35
Sugar
12
(per unit) Eggs
1.3
- 1.5
(liter) Fresh milk
2.25
(pair) Shoes
300
Wool Suit
700
- 2,000
Rent for flat incl. heat 50 - 100 per month.
(Varies with income bracket)
3. In Western countries it has been necessary to provide special
incentives to workers in order to maintain employment in coal-mining.
To what extent is this true in Poland? Is it ;reposed to broaden
incentives in connection with POland's general program of liberali-
zation (for example, as is anticipated in the field of agriculture)?
A. Pinch of this question has been answered above. Raczkowski men-
tioned first the Miner's Charter, negotiated in 1949. Miners had
special consumer goods held out for their 'amylase, they were given
better working conditions (machinery which they fought for fear it
would create unemployment among them), they were given added holidays
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and special honors and awards. In 1956 special cash bonuses were
instituted. Since early 1955, special efforts are being made to
provide additional (and better) residential construction for the
miners. A new town was built near one of the mines in Silesia and
additional housing units are being built in all mining communities.
In 1957 a scheme was established to give the workers councils at
mines exceeding plan production goals bonuses in foreign exchange.
Planners anticipate this mcney will be used to buy fancy consumer
goods abroad. Miners still have priority in buying scarce consumer
goods, especially consumer durables.
4.Q /n order to increase exports of coal,, is it anticipated that
allocations of coal for domestic consumption will be reduced? Can
you provide information on total Polish coal consinaption for a past
and a planned year by major categories (e.g. railroads, industry and
residential heating)?
A. They to reduce domestic consumption by rationalizing industrial
and other use of coal rather than by administrative cuts. Hope to
reduce 1957 consumption by 1-1/2 million MT. Consumption data by
broad category was given for 1955 and 1960:
000 000 ffr
Sector
1955
1956
1.960(raan)
Industry
48.3
50.8
Railroads
9.1
OVVO
9.1
Household use
13.1
21.6
Exports
24.1
19.2
18.1
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The price of coal especially to industry has been exceedingly low.
The price has always exceeded production cost, however. They plan to
=crease the price of coal sumewhat; this means little to state other
than accounting, coal profits will go up, coal using industry profits
will go down. Plan other meaus of economizing such as dieselization
and electrification of railroads, will use smre brown coal for elec-
tricity and more peat for rural heating. Nov produce About 5 million
MT of brown coal. They bave no interest in AE for generating elec-
tricity, coal resources are too great and too cheap. Poles will.not
have their first experimental power reactor in production for b - 9
years.
Q. To what extent will the contemplated economies in certain uses of
coal be offset by increased consumption connected with the potential
expansion of the chemical industry or with the estableshment of new
industries which are heavy consumers of coal?
A. Coal consumption by industry will increase deapite eeonomiese, see
above.
91,1,!. Have recent trade and payments commitments t;ith the East and West
Involvet advance commitments which would reeuire Increased exports
above the present level.
A. No such commitments have been made since the settlement of Polish
obligations for nationalization of French property in Poland and none
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are anticipated. Have settled with Soviet in 1953 although rising
price of coal has made it too advantageous to the Poles to negotiate
only current or short-period sales.
7. Q. Do you intend to make up in later years, through larger exports,
the current short-fall in coal deliveries to countries of the Soviet
Blocs
A. We see no likelihood of increasing exports above present levels,
wish to maintain production increases as nearly equal to the growth
of other industry as possible to secure foreign exchange and get the
goods needed from other areas.
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225a111211152ERII (Answered by Kntlicki)
1. SI Would Poland be prepared to give assurances to Americen mow.
lecturers against infringement of patent rights in equipment exported
to Poland from the United States?
A. Poland will give such assurances to all suppliers of such equip-
ment, This is?common practice in the present trade between Poland,
and other nations of the capitalistic caintries.
2 Q. Some American manufacturers customarily ask that equipment sold
by them Abroad be serviced by their own expert personnel in order
to preserve the 'reputation of the product. Would Poland be prepared
to facilitate such servicing?
A. Polish delegation was delighted to see this question. They had.
been prepared torequest that American technicians be permitted to
enter Polaud to set up sad service eqeipment. They "had entertained
certain doubts, could the expert personnel get permission to go to
Poland?"
3. Q. Would Polaoilvonsider making licensing arrangements with American
manufacturers which would enable Poland to produce American-type
equipment through payment of royalties to American owners of the
designe-
A. Poland would be happy to facilitate suth. arrangements. "They have
such arrangements with other countries; all ieclude provialoas for ,
interrational arbitration.,
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Industry and Znvestment (Answered by Kaminski)
1. Q. How do the Poles expect to maintain rates of industrial growth
comparable to those of 1949-55 during 1956-60 in view of the sharp
reduction in, industrial investment?
A. The first plan (3 years was devoted to construction, the second
(6 year) to rapid industrialization, the present plan (5 yearE0 is
to be devoted to the reduction of disproportions which grew out of
accelerated industrial emphasis of the previous plan. Evening out
the shares of productive activity is expected to yield growth cam-
pErable to the previous peviod even with planned rates of investment.
Some indlcatioa of these changes is exhibited by ratio for 1954-56.
1954
19s6
Investment Pentage of Gress Product
24
23
20
Industrial Output l'ercentage inerease
from previous year)
11.6
11.0
9.9
After 1957, Poles antieite er. industrial growth of 10-11 percent
per annum. Factors which should, perseit this increase are:
1) Relatively low starting point In many Industries, particularly
consumer good indostrzies.
High share of "productive investment to the total investment.
'Answer to 2 below tends to deny this point.
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3) High degree of economic effectiveness under socialise.
4) Productivity of workers will increase more rapidly because
of better training.
5) The total labor force becoming available will increase con-
siderably during the period, 3.5 Percent for agriculture,
and 14 percent for industrial employment.
2. at. With declining investment and increases in eonsumption? how may
Poland sustain its national income? Give some indication of the
allocation of Polish investment for some specific years.'
A. Although there has been a reduction in the share of product
going to investment, total investment outlays have increased from
50 billion zloty in 1955-56 to 52.8 billion zloty in 1957. The
breakdown of investment by specific years tends to cloud certain
long-run relationships, will compare a breakdown for
1956-60.
1950-55 with
LosmtqlEsjjaa e
of Total Investment
Sector 1950-55 1956-60
Industry
46,3
43.4
Agriculture and _Forestry
10.0
12.5
Transport
12,2
10.0
Construction
Residential
10,4
14.4
Hon-Residential
3.5
4.7
Social and Cultural
5.3
6.4
All other (e.g. trade, admie., etc.
12.7
8.6
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The principal objective of the present plan is to improve the position
of the consumer ea quickly as possible, 44 be seen by planned rate
or increase of certain sectors frau 1956 to 1)57.
L61112.1
All Industri 102.3
. Consumer Goods113
Capital Goods 100.X iless 1 &un 1 percent
lacrease)
3. q. How may the West be assia-vd the Pulei. ill not increase their
coal and other exports to Bloc: countries once thetr investment and
foreign exchange problems with the West are.solvedI
A. Difficulties with Palish shipments to the Bloc arose from the
disparate growth in industry and coal production in Poland but aL
tram a teed to assure Poland's creditors and ctts iu the West.
Noland reduced shipments of coal to the Bloc to assure our balance
of payments and will stay there lb at least the present levels 14 the
near tUture. (I understood the time period referred to be 5-6 years,)
4. Q. What sort of commitments to .::.EMA has Poland made or may MO
make on Poland which would vttlat.e arrangeMents Poland may make ti,.
the West?
A. igntlicki answered this CO% la cone rued only w1th rtIora
among Bloc countries, these arrangemeuts are limited in scope mod
may be made only with unanimous coniient a the parties Involved.
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(i received the impression these agreements are fragmentary and of
rather Short duration is they affect foreign trade.) Speaker charac-
terised MIKA as much less comprehensive in scope than the joint
activities which have "leen established in Western Europe. (kWh of
the pressUre to join CEMA agreements elikihthe USSR has exercised in
the past has come through the Party apparatus rather than "formal"
deliberations and decisions of CMA, thms the Poles hLei:not have to
contend, with any significant pressure from CEMA.
Question was an omnibus question which cannot now be identified)
dealt with why there Imre to be reductions in output for 1957.
A. A great deal of attention and money has gone into training and
education of Polish indUstrial workers. It is thought this will
result in productivity gains. Coal production will be reduced in
an effort to reduce overtime and compulsory laborers in the mines.
The email increase in the steel industry contributes. There will be
a 1.6 percent reduction in defense outlay and heavy capital goods
investment. Efforts are to be directed at improving the quality of
the goods rather than concentrating
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