Attempts by Eastern Europe to obtain I A and I B export control items through transshipments

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01617A000200370001-5
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: July 21, 1998
• Sequence Number: 1
• Publication Date: December 10, 1948
• Content Type: IM

Approved For Releasef C
407146
IA-RDP78-0, 17A000200370001-5
CENTRAL INTELLIGENCE AGENCY
10 December 1948
INTELLIGENCE RANDUII NO. 96
SUBJECT: Attempts by Eastern Europa to obtain I A and I B export
control items through transshipments
1. An increasing flow of reports received by CIA reveal the
organized covert efforts that are being made by Eastern Europe to
obtain Class I A and Class I B items through third countries. It
has not always been possible for the Department of Commerce to de-
termine with certainty that Western European consignees of goods
exported under license are legitimate end-users of the products;
consequently, some licensed exports may be transshipped to Eastern
Europe. In the case of exports to Latin America and other areas
outside of Europe, licenses are not required; the opportunities for
transshipment to' Eastern Europe, therefore, are much greater than
elsewhere.
2., The following reports illustrate various methods of trans-
shipment currently being used or attempted:
a. C itv: Machine tools.
D~ptinatian: Hungary.
nss io +nt: Switzerland.
T n ac LlO invc~.: Dugar & Roheim Inre ut 10, Budapest,
authorized by the Hungarian Central Board of Heavy Industry (NIK)9
carried on negotiations with Engler and Company, Zurich, Stadthaus-
quai 7, for acquisition of DS machine tools. (The manager of the
Swiss company has announced himself to be a specialist in illegal
transactions. He is reported to have engaged in transshipof
chemical base materials (phenol, for example) to Hungary prior r
1 March 1948.)
b.
C : Blast furnaces.
p,~,~lj,o}t Yugoslavia. Document No. 0
?~'rAnts~h{~D is The Nether. CHANGE in Class. fl
~..~ DECLASSIFIED
Approved For Rele P78-01617A000200370001-5
Class. C_ ''C ED T0: TS S C
D ^. 1.emo, 4 Apr 77
Auth: DDA G. 77/1763 Date: ~'~~~ By:
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 Approved For Release,IA-RDP78-0' 7A000200370001-5
1W
Tregpaac ions 1810 134d: Yugoslav agents, wishing to
purchase two blast furnaces from the Voest Company of Lins,
Austria, went directly to the Dutch Shipbuilders? Syndicate in
The Hague (Direktorat van Scheepsbouw-S Gravenhage) because a
previous denial of the sale to Czechoslovakia on the part of
tS Austrian authorities had forewarned them of a similar refusal.
Van der Graaf, the Syndicate's Secretary General, on offer of
a substantial bribe, undertook to oxen negotiations for trans-
shipment through an Austrian businessman in Switzerland 'who has
excellent connections in Voest.
Commodity: Diesel engines.
Destination: Yugoslavia.
Tvs~n~wh a u? ~o ,rots . Canada.
~rvc~~._Bds The council of the Canadian South
Slave Reconstruction Fund, believed to be located at 600 Campbell
Avenue, Vancouver, B. C., asked a large US stationary- and marine-
Diesel engine manufacturing concern on 15 September 1948, about the.
possibility of manufacturing four-cylinder 8 x I(* Diesel marine
engines of 85 HP for export to Yugoslavia. Since US export controls
would not allow shipment, the US firm suggested dealing through its
Canadian subsidiary.
d. C i .v: Twenty large-size portable air compressors.
Destination: Bulgaria.
TXOWph yMpM : ngint: Canada.
Try tions ice: Jaeger Machine Company of Columbus,
Ohio, shipped the compressors to Canada for transshipment to Bulgaria,
on order of "Metalimport," official Bulgarian purchasing agency.
,2. C od tv: Oil equipment.
Destination: Rumania.
TranspJARROInt-mint: Switzerland.
Transactions involved: A Swiss firm has concluded a
contract with a firm reported to be 01'tlson and Company" for
transshipment to Rumania (see I)-71).
3. Collection of information of a similar nature and its di ssemi.na-
tion to appropriate United States authorities would assist in the re-
duction in the amount of illegal transshipment to Eastern Europe.
Approved For Releas P78-01617A000200370001-5