INDUSTRIAL RECONSTRUCTION IN CZECHOSLOVAKIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600350247-9
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 3
• Document Creation Date: December 22, 2016
• Document Release Date: August 23, 2011
• Sequence Number: 247
• Publication Date: October 10, 1950
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000600350247-9
CLASSIFICATION RESTRICTED T;`uI STAT
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY Czechoslovakia
SUBJECT Economic - Industrial planning
HOW
PUBLISHED Daily newspaper
WHERE
PUBLISHED Switzerland
DATE
PUBLISHED 25 Nov 1949
LANGUAGE German
THIS DOCU09MT CONTAINS INFORMATION AFFECTING THE NATIONAL DUE III
OF THE UNITED STATES WITHIN THL MEANING OF 15110NAG1 ACT 10
U. S. C.. 31 AND SE. AS AMEN010. ITS TRANSMISSION 01? HE REVELATION ANY MARKS IOIIEITEDD STTLAW. 1 REPRODUCTION OF THIS FORM I:IZKP
FROM I1R0. IE PRO'
I ITS
DATE OF
INFORMATION 1949
DATE DIST. 10 Oct 1950
NO. OF PAGES 3
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
INDUSTRIAL RECONSTRUCTION IN CZECHOSLOVAKIA
According to a report from Prague, Dr Dolansky, Minister-Chairman of the State
Planning Office, reported that under the current policy governing the industrial
program, priority will be given to heavy industry, particularly to the production of
constructed,
heavy.machinea for use in existing factories or in plaannts toebeRnewly,
as well as for export .to the People's Democracies?
Steady development of industrial production has been made possible by a
49 percent increase in the output of brown coal, as compared with the prewar out-
put; by doubling the former production of electric power; and by a 22 percent in-
crease in the manufacture of steel. Construction of locomotives has tripled as
compared with prewar figures, and the number of agricultural tractors produced is
50 times that manufactured before the war.
Production of consumer goods has also expanded. Cotton yarn, for example,
shows an increase of 11 percent and wool yarn 9 percent.
However, reconstruction of,heavy industry is still far from satisfactory.
Dr Dolansky stated that delivery dates for state-planned factory equipment for
domestic use are not being met, and that the same condition obtains insofar as the
delivery of machinery and, other industrial equipment to the People's Democracies is
concerned
The minister saw the main reason for this failure as the inadequate exploita-
tion of existing facilities. He pointed out that not a single plant in. the heavy
machine industry operates three shifts per day, that few plants work in two shifts,
and that in some instances even the single shift is not fully utilized.
In this connection Dr Dolansky referred to war damages sustained by the Skoda
Works, the great Kollen Danek Plant in Prague, and the Stalin Works near Most
(built by the Germans); he also mentioned dozens of smaller factories iin Lall.__
branches of industry, fixing the blame on the "friendly" bombings of the Western,
allies shortly before the end of the war, as well s on destruction inflicted by
the retreating Germans. I
Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000600350247-9
SOURCE Neue Zurcher Zeitung.
 Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000600350247-9
The minister praised the nationalized factories of precision instruments and
machinery for the production of ball bearings, textile machinery (ZbrQJuYU%pA*t
milking machines, as well as for the manufacture of adding and other office ima-
chinep,and printing machinery, including the first Skoda rotary press, which had
been constructed with the help of Winkler and was recently installed in the state-
owned "OPbis" printing plant. New timing mechanisms for industrial requirements
and medical instruments are also being manufactured for export. Reduction in the
number of models, Dolansky said, had resulted in considerable improvements in the
manufacture of automobiles,, motor.ycles, and bicycles.
The machine industry boasts 530 types of new machines which were not produced
prior to 1945, such as boiler plants for low-grade fuels, high-pressure steam tur-
bines, high-speed multistage steam turbines and turbocompressors, pumps, Diesel-
electric locomotives, new types of river tugs, cranes., machinery for ceramics,
sugar, beer, alcohol, glass, leather, and rubber industries, for mining installa-
tions, dairies, and slaugiter houses.
The light metal industry has embarked on the production of new type radiators
(resulting in great conservation of materials), mechanical kitchen equipment, vac-
uum cleaners, needles for the textile industry, modern agricultural machinery such
as a fertilizer spreader, threshers, tractors, and bidders.
The chemical industry has started large-scale production of plastics and other
synthetic materials and of pharmaceutical aids such ea insulin, penicillin, and sul-
famides. Czech chemists have invented and developed "agronal," a fumigant for pre-
vention of rust on cereal grains.: In the textile industry experiments are being
made with a new method for producing non-spun and non-woven materials which may
revolutionize existing manufacturing processes. The glass industry is turning out
optical lenses, optical filters for export, magnifying lenses, thermometers, and
particularly spun glass (glass wool) which has been utilized as a new raw material
by Czech industry. Geologists have found a way to increase the production c: graph-
ite from 2 to 12 carloads per day. Scientific research and the training of indus-
trial scientists have been reorganized and intensified.
The organization of state-controlled industry has undergone a number of phases:
Confiscated plants were merged with nationalized factories to form combines of enor-
mous scope, the,majority of which were responsible to the Ministry for Industry,
while others were under the jurisdiction of the Ministers for Food and Trade, re-
spectively. Recently the administrations of these combines were liquidated and
677 separate directorates were set up. The principle of sole responsibility and
full authority of the individual directors was restored,, necessitating numerous
personnel changes which have not yet been completed..
In 1946 nationalized industry still operated at a loss. The year 1947 ended
with a surplus of 2,400 million.crowns, and 1948 showed a profit of 16,000 million
Czechoslovak crowns.
As a result of the "profit tax" and the "general tax" assessed on all products'
on the domestic market, the State acquires considerable revenues, inasmuch as it
is also the recipient of the profits shown by the industries after deduction of the
10 percent profit share 'set aside for the workers. Originally this latter amount-
was'placed at the disposal of workers' comdLittees of the various enterprises in
question; however, in the course of the past year the administration of the trade
unions appropriated these increasing amounts, utilizing them, in part, to fin,nce
a large-scale vacation project for workers. Last summer 200,000 workers were the
beneficiaries of this arrangement and 50,000 more will profit from it during the
coming winter. At this rate, however, it would take 10 years for each trade-union
member to have his turn, although a large number of hotels are now owned by the
trade unions.
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The collectivization of the entire building trade merged 1,173 private
enterprises into 56 state-owned corporations. In the future, only "planned"
projects will be undertaken and construction will be carried out only by the
companies indicated. Set specifications have been devised for housing projects,
factory buildings, hospital structures and other buildings for general purposes
provided under the plan. Windows, doors, tiles, and other components have been
standardized.
Factory installations employing 22,000 workers have been moved to Slovakia
from the German border area in Northern Bohemia. The number of workers employed
in %Dvakia's industry has increased by 55,6D02 Forty nev factories were built,
and 17 are already operating, including new iron works in Brezno nad Bronom and
the lumber combine "Bucina" near Zvolen. The Ilava and Dubnica hydraulic power
plants are only two of a number of such projects. The two plants named are al-
ready operating. The steam electric power plants in Bratislava, Krompachy,
Ruzemberok, Nbvaky, and elsewhere have been enlarged considerably. A total of
192,400 persons are engaged in Slovak industrial prnjects, apart form mining
which employs 100,000 men.
Intensive construction activity is currently under was in Slovakia, com-
ii6i3sg-bu3dding9,bridg w,, highways, factories, dams, and barrages. Electricity
bas 'been installed in 430 communities.
Sanitized Copy Approved for Release 2011/09/14: CIA-RDP80-00809A000600350247-9