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December 9, 2016
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July 11, 2000
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April 14, 1958
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RAT!' Approved ForgiVase 2002/05/02 : CIA-RDP62-00328V0100170001-7 EXEC/ID-35' Control No 14 April MEMORANDUM FOR: Economi Defense Ittelligelce Committee FROM Chairman, EPIC SaJECT : Sino-Sowlet 31oc Svpply of and Require:lons io: Pht1a1tc Anhydride REFERENCE : ELIO Case Ac, 27,1 ..-EORET re tolti The attached intelligence summtry has been prepared by CIA in response to the ...clferenced EDIC Case NO. 27 initiated by the. Department of Commerce:, It is new- eletributed for review and acceptance by EDIC membos, . If no request for consideration of '4h1s summary ia an EDIC meeting Is received prior to COB 15 April 1.958v it will be considered approved and EDIC Case Nca 27 will be regarded as closed,) 25X1A9a Attachment: Sino-Soviet .BI 1;12,p1 and Requirements for 7.1rtlIeic: 41Anydrieis Distributicn: Cato B ,5?) 3, :10) D (A31; - (1) *DOC Exempt Letter On File* 0100010e4eimilles .T.V3FC:IN 25X1A9a Approved For Release 2002/05/02 : CIA-RDP62-00328A000100170001-7 Approved For Release 2002/05/02 : CIA-RDP62-00328A000100170001-7 EDIC Case Nor 27 Control tio?, blY50/ Th Apill 1958 SUBJECT Sino -Soviet Blc,c Supply vf and Requirements for Phtbalt: Anhydride, mgmuso AGENCY AND IJATE Department of Commeroe, ?.5. March 1958,? AADLINE FOR RECEIPT OF INFCRMATICN As soon as possible, PROPOSED USE To complement the review CUMN of Commerce Technical, Taek Urcup In phthalic anhydride is of suffictent to warrant its additton to tho u,s, Oy undertaken by a Department circler to determine whether Positive List and possibly 4 recommendation for its ineJ!usion InternaWnai REFERENCE Memorandum to Carman f WIC from Departnent C,Asmen representative p 25 March 29q, BACKGROUND The B1,:c is a rit imperter ti phthal07' -;mhydride and phthal4te esters,. The USSR hes reeenty expressed interest in 1moorting substantial quantities tf phthalcArthydrlde, At least part of tile, Bloc intereat in imports"OfphthaIle anhydride, is. believed due -4 expansion of facilities,plasties, dyes and rubber Inadequate equipment and teehnolegy appear to be responsible fo the current Bloc shortage of phthalie anhydride rather than a Shortage of the basic raw material, naphthalene, Meat of the Blcv countries have plans to increale pteduction of phthallc anhyd:Ale hy 1960, PhthaliC anhydride is cbtalteii by the oxidation of naphtnalene* with the use of a vanadium pentoxide catalyst andcondensatiOn the resultant product ' Two- thouutOd five-hundred' pOthde.of naphthalene are required t!,0 prod ucto !,'(1,010 pounds of'phthal5O anhydridir, * Thealso produces th.11-"t, 1.rt'aydiride from orwtho--xytenek S E.7.34=11-E-T As, agik. 1.1 Mt FC Approved For Release 2002/05/02 : CIA-RDP62-00328A000100170001-7 if Approved For tree 2002/05/02 : CIA-RDP62-00328V100170001-7 taac--3-4 ? Sal t ANION! ? 2 Phthalic anhyiride 'became an important item during World War II as a plasticizer for smokelsee poOder =4 as a base for insect repallants. ?A, principal t1S3 for rhttialie =hydride 1,0 in the productiola or phthalate eaten: employed as plasticisers or 8orta:33ra for rubber and plasties. Alive reSinas, made from phthalic anhyclaide? are used for outdoor paints and are of strificance in the sueace coatang of naval. vessels. Anthraquinene vat dcras for military ,zaiforms use phthalic anhydride as a base. PRODUCTION ? Naphthalenes, the raw material for phthalic anhydride, in produced in several Bloc aountriete katimated 14.1aa Production of napMthalene in 1957 ip a$ follawsi Country Metric Tans 100000 Czechoslovakia at 100 Bast Clammy 5,600. Hungary 950 Poland 31 Rumania 1g.. usplt upp000 Althwgzh the above quantifieu of naphthalene cu-Ild support a subatantial inoreaae in the produationvf phthalid aha further processing ofrnaphthalena into phthalic Anhydride has untii not/ bscn limited by deficienclea $11.both fachntaallAUle and plant equipraenta, Only 1 plant3 have.loain'idantified a3 praducers of ' phthant anhydride; in the Picc, Froduation of phthalic anhydride in the Bloc in 1957 is estitated as follows: Couptrz Qu!tutitv latric Tons Czeslovalcia East uarmany 9p60) Hungary 800 Poland 2,31403 Rumania 200 USSR l'OpCCO c- 1'2,000 Tote. 28O3 26p800* Tiao USSR announced in July 157 that new techr_al,av and equipmant for the oxidation of nauhthaleno to phthaaia, anhydriaa have been Teio?.:t nexpertraptal workshop usinc the new p favota is sehaddled to be built at a cokaacherai.eal plant in Gorlovka, a:faat sulaasq,aant constraatian of 2 additianal workshops at other cok,a. *13,y c6aparsanp U.S. prtiaa cc' pt+14c aa4y4ri2a in 2956 vaa abaat tons M592570600 Us), S..7,3a.,C,'-at?iial ? .o..7r,r4r7,11?T Approved For Release 2002/05/02 : CIA-RDP62-00328A000100170001-7 Approved For Vase 2002/05/02 : CIA-RDP62-00328V100170001-7 S-E-C-R-EaT ? ? NCI`ORN 3 chernica% plants. The combined capacity of the latter two shops is planned to be 27,04) metric tons, TRADE Available data from the U.S. flapartment of Commerce on shipmatits of phthalio anhydride from Western countries to the Bloc are inaluded in Table L These data* together isAth reports for previous years* ear4r indicate a rising',..xend .in Bloc imports of phhhalic ankairide and phthala.tes from the We3te, The USSR appears to be the largest iasporter and in 195`.? prtbably impoxted at least 5 thousand tons() If information were icviii.lable on shipments from other Weetern counaries such as BeIgiump the ilethealands;, Eweden and the UK, a more complete picture of B1o(.3 imporas would be obtained; while shipments of pirth,a3.i3 anhydride and,phthal.atee from Bloc ontries (chiefly aet Ciermany) to the West have been obsprvad inreoen years* the Bloc undoubtedly has been a net importer of these ?beat:Ica/a, Some intra-Bloc shipmens have been observed. The indications are that these have fa:iirlatod largely n East, Q;exlman.),- and have been destined mainly fox f,he USSR,, al',Yeagh USSR* Czechoslovakia:I; Poland* and Hunger:T. way eaport mall quantities of phalla.lic anhydride and phthalates c1.4e:r; Mac cat:a:tram], Acol.'-ding to ors reporto East German shipmeais a phthalic anhydride ta, the IU5a. were prcajected at an amatal rate ci te 6 thousarri aaas fur the 1.95'4, 60 perioc., CONSW,IPTION AND USES Data are inedequete to establi,lh a preoise consumption pattern for phthalial anhydride i.n the Blao* although avaiaabla nformation on the USSR and Easa Lierrraxszy? incileate that the largest portion goes into plastios,, paints and p)t&eis.. in, requirements for conventionet use can Le e4zcatod beaauce .hs :tirrent eraphaale on inureasing produa:A.on c. rithetace,, No data are 411railable on requiTements of phthalie aahydritle an the paoduation (Jf ltrategie itana, Domoatia, consunation af phthalao anhydatde Ira Fatet flearmany in 1957 estimated at, about 42600 toce* with the semai,ning 5,000 tons exported., Of the demest:la (alneuaipta..or. aboir? Z.,,,i4U) to 21 00 tons were laced An Cthe producx) Of plestia.Azeraa (diEutyl ..ththalaaa and diot1y,1 phthalate): About 'itp6013 tot s fplk-tstiaerS walls exported, The te bal. upply eAr athydride awaithLn itc. the USS1 in 1957 13 tentatiaek, st4a tmtfi ??,13 2C ( ) 4 2ec:,./300 %WIN In view of the over-0.1 B?.she:Age, :11:, it that upp,y arri consumption in the USSR aae ataalt kale ax,:lt,t, Act crit.a.a tc a USSR' l'aport, almost 011r4 ! milayeirfde y.1..e: a'aava; 7 tits of p)asticisere- .EaFt.AN Approved For Release 2002/05/02 : CIA-RDP62-00328A000100170001-7 Approved For yease 2002/05/02 : CI4-RDP62-0032W00100170001-7 NtN - 4 - 90 percent or the phthalic anhydride is required for lacquers, paints, and plastics. It is Last required tor the production of insecticides, accelerators for the vulcanisation Of rubber, for the production of benzoic acid and for use in additives for lubricating oils, The Soviets admit that requirements exceed eupply and plan to put new capacities into operation shortlyk although their construction planning has been plagued by delsys,; Heavy emphasis was placed on increasing the productiot of synthetics in the original Sixth Five Year Plano and this has since been reiterated with even. greater emphasis in the planning for 1959-61, no that an increasing consumption of phthalic anhydride can be predicted. Muth of the phthalip anhydride consumed in Czechoslovakia is used in the production of dyestuffs with most of the balance ging into phthalate ester plasticizers. Requirements are grtwing steadily and in 1957 exceeded production by about 35 percent. In Hungary and Rumania phthalie anhydride is also used largely tot dyestuffs and plasticizers. Requirements in Hungary approximate output. In Rumania requirements are growing at a fatter rate and are expected to use up any increase* in production, Poland utilizes itephthalates,in the production of plastics varnishes, dyes and ?libber product*. The consumption picture for phthalic anhydrlde is somewhat confUsed because of evidence that it is both exported and imported but Poland is clearly a net importer of the phthalate esters.. By /9600 Production of phthalates in Poland is expected to rise to 70000 tons, enabling her to meet requirements from domestic sources. S-E-C-R-B-T Approved For Release 2002/05/02 : CIA-RDP62-00328A000100170001-7 Destination Soviet Bloc Bulgaria Czechoslovakia Hungary Poland Rumania USSR Communist China C --T Approved For Release 2002/0*FAtIA-RDP62-00328A000100170001-7 Table I Soviet Bloc imports of Phthalic Anhydride froze Selected Western Countries, 1956-57 Metric Tone Weat Ge France 1956 ???????1111010.11.1 1957 1956 774 let Half 1957 1956 let Half 2957 let Half 1956 1957 total 826V 1093/ 266 1699 3031 IIINGS=2,.. lall==.1 N0A., 95 17 24 72 53 70 82 18 621 589 4 45 300 734 2662/ 16992/ 3031 22 95 IL0 Includes phthaIic acid, its salts, esters, and halogenated, nitrated and sulfonated derivatives Reported shipment to the Bloc totaled 144 tone in 19550 20 The noncom-Soviet trade agreement for 1957 provides for shipment of 2,000 tonso 30 Italy also shipped 304 tons of esters of phthalic acids. NOFCRN Approved For Release 2002/05/02 : CIA-RDP62-00328A000100170001-7