TRANSMITTAL OF MATERIAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01003A001600090001-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 12
• Document Creation Date: December 9, 2016
• Document Release Date: May 31, 2000
• Sequence Number: 1
• Publication Date: April 19, 1963
• Content Type: MF

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Approved For Release 2000/06/14: CIA-RDP79TO1003AO01600090001-4
19 April 1963
MEMORANDUM FOR: Chief, Dissemination Control Branch, DD/dot
FR{ I Chief, Publications Staff, ORR
SUBJECT : Transmittal of Material
it is requested that the attached copies of CI,/RR CB 63-38,
fhrushchev Orders Additional Zm its of Western ui ent for the
ai8h-Priority Agricultural Chemical Sector, 17 April. 193, Secret/NO
FOREIGN DISS'IM,be forwarded as follows;
State, INR Con unications Center,
Room 7818, State Dept. Bldg.
For Embassies in Berlin, Moscow, Bonn,
Frankfurt, London, Paris, and
Rome
25X1A
Attachments;
Copies #164 - #1TO of CB 63-38
cc: st/I/R
Approved For Release 200
0 0
F Ell
0 A GP"
a~1u41'..Gtr
P79101003A001600090001-4
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SECRET
INTO FOREIGN DISSEM
Current Support Brief
KHRUSHCHEV ORDERS ADDITIONAL IMPORTS
OF WESTERN EQUIPMENT
FOR THE HIGH-PRIORITY AGRICULTURAL-CHEMICAL SECTOR
CIA/RR CB 63-38
17 April 1963
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
NO FOREIGN DISSEM
SECRET
GROUP 1
Excluded from automatic
downgrading and
declassification
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This material contains itnformation affecting
the National Defense of the United States
within the meaning of the espionage laws,
Title 18, USC, Sees. 793 and 794, the trans-
mission or revelation of which in any manner
to an unauthorized person is prohibited by law.
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 Approved For Release 2000/06/14: CIA-RDP79TO1003AO01600090001-4
KHRUSHCHEV ORDERS ADDITIONAL IMPORTS
OF WESTERN EQUIPMENT
FOR THE HIGH-PRIORITY AGRICULTURAL-CHEMICAL SECTOR
According to a report of 29 March, Premier Khrushchev, during a
visit to a Soviet urea fertilizer plant being built in Tula Oblast, stated
that construction of urea plants had to be accelerated and that this task
would be given the highest priority. I/ The urea plant visited is one of
four being supplied by a Western firm, and Khrushchev, on learning that
the firm also had contracted to supply part of the equipment for other
Soviet urea plants, ordered that four additional complete plants be
purchased instead. Judging from the report, a high priority, already
foreshadowed in 1962, now is being given by the USSR to construction
of plants producing agricultural chemicals. The purchase of four more
plants, if confirmed, will be additional evidence that Soviet equipment
and instrument manufacturers are unable to meet the present require-
ments for the fertilizer industry and that a very sizable portion of the
equipment needed to provide the scheduled increases in production of
urea during the Seven Year Plan (1959-65) will come from the West.
Although the high priority bung given the fertilizer industry is unlikely
to result in fulfillment of the Soviet goal to produce 35 million tons of
mineral fertilizers in 1965, increases in capacity in 1963-65 will be
significantly higher than those in 1959-62.
The four plants already ordered by the USSR apparently will have
a total capacity of 700, 000 to 720, 000 tons of urea, or about 45 percent
of the 1. 6 million tons planned for production in the USSR in 1965. 2/
As of September 1962, construction of the first three of the Western-
supplied plants reportedly was behind schedule by periods ranging
from 5 months to 1 year, 3/ but all four plants should be in operation
well before 1965.
The urea produced in the USSR is to be used predominantly as
fertilizer and as animal feed. Urea also can be used in production of
plastics and explosives and is a possible starting material in production
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of hydrazine, a storable missile fuel. These nonagricultural uses, how-
ever, would be e.atisfied by a far smaller production of urea than is at
present planned in the USSR.
The scheduled increase in production of urea is the result of a deci-
sion not only to add to the total volume of fertilizers but also to utilize
more concentrated fertilizers. Urea contains about 46 percent nitrogen.
As of 1961, Soviet nitrogen fertilizers contained an average of only
30. 5 percent nitrogen and probably have not changed appreciably since.
The higher nutrient content per unit of weight should permit lower out-
lays for transportation.
The present Soviet emphasis on the fertilizer industry was fore-
shadowed in 1962, when a supplementary allocation of investment for
the fertilizer sector was announced for that year and an incentives pro-
gram introduced to stimulate lagging construction and production. 4/
According to data on the progress of the fertilizer industry in 1959-62
and the plan for 1963, however, annual increases of fertilizers in the
first 5 years of the Seven Year Plan will have averaged only about
1. 5 million tons. Annual increases of 7. 5 million tons will therefore
be needed in 1964 and 1965 to meet the production goal of 35 million
tons in 1965. Although it is highly unlikely that the goal will be attained
(and indeed the goal itself may even be lowered), the present emphasis
on rapid expansion probably will continue, and increases in capacity
in 1963-65 will be significantly higher than those in 1959-62.
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Analyst:
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1.
2.
Pravda, 15 Jun 60, p. 2. U.
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3.
4.
Stroitel'naya gazeta, 9 May 62, p. 1.
U.
Ekonomicheskaya gazeta, 14 Jul 62, p. 2. U.
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SECRET
SECRET
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 Approved For Release 2000)06114': ClA-R'DPT9TO1003A00160 090001-4
a _...Ft
CYA/RR xz 63-38
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by SOutr el' bb* ocked
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Report #1 went to AD/RR
Report #2 sent to DDI
Report #3 to
for sanitizing
OL/PSD :notified to diseemir:ate
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Group I
Excluded from aatav ati
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deal&sa fication
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