HUNGARY NO LONGER DEPENDENT ON IMPORTS; IS UNABLE TO MEET SOVIET OBLIGATIONS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600390253-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: October 18, 2011
• Sequence Number: 253
• Publication Date: May 5, 1951
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/10/19: CIA-RDP80-00809A000600390253-8
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CLASSIFICATION CONFIDENTIAL Co'f 1Vt% ""
CENTRAL INTELLIGENCE AGENCY REPORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
SUBJECT
HOW
PUBLISHED
WHERE
PUBLISHED
DATE
PUBLISHED
LANGUAGE
Economic - Foreign trade, reparations
Daily newspaper; bimonthly periodical
Budapest; Stockholm
15 Dec 1950; 5 Mar
Hungarian; Swedish
TNIS SOCDIIENI cOmun> mrvn.n u.n ......... .. ...... _...."?' __
Of THE UNITED STATES WITHIM THE MEANING OF ESPIONAGE ACT SO
U. S. C.. SI AND SE. AS AMENDED. ITS TRANSMISSION OR THE REVELATION
Of Its COII1EH TS IN ANY MANNER TO AN UNAUTIIORIEEO PERSON IS PRO
HIBITED BY LAW. REPRODUCTION OF THIS FORM IS PROHIBITED.
SOURCE Publications as indicated.
DATE OF
INFORMATION 1950-1951
DATE DIST. -$' May 1951
NO. OF PAGES 2
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
HUNGARY NO LONGER DEPENDENT ON IMPORTS;
IS UNNABLFA TO MMY1" SOVIET OBLIGATIONS
INNOVATIONS TO REPLACE FOREIGN RAW MATERIALS -,- Budapest, Fuggetlen Magyarorszag,
5 Mar 51
Lumber used in mines has always been an important import item in Hungary.
Numerous mining innovations now greatly reduce the need f>r it, thereby saving
a substantial amount of foreign exchange.
It is significant that carborundum, one of the most important items im-
porued, is now produced from available Hungarian materials. The synthetic
carborundum is composed of alumina and bauxite a b made into abrasive
powder and grindstones.
Synthetic shellac has been produced to replace the imported shellac, very
important in the lumber industry. Synthetic electrode-carbon required for
carbon brushes and electrodes has been prepared.
Furnace: coke was imported up to the present. Fr the end of the Five-Year
Plan, Hungary will produce enough coke to satisfy its requirements. In the
past, coke was dumped. At present, it is used in the manufacture of cement,
furnace bricks, insulating slag, mineral wool, and synthetic materials used
in the manufacture of glass. .
In the case of coupling muck pipes used in mines, it was proposed that
aluminum be used instead of imported lead.
The electrical industry now operates with synthetic insulating materials.
The tanning of leather is now accomplished without the imported tanning
materials. The tanning material used is recovered from the waste water of
paper factories.
A fire-resistant brick is in use which, in a simple way, transforms wood-
burding stoves into coal-burning ones. This means significant savings in wood.
1 T GUUI1FI Cl1II I %
Sanitized Copy Approved for Release 2011/10/19: CIA-RDP80-00809A000600390253-8
 Sanitized Copy Approved for Release 2011/10/19: CIA-RDP80-00809A000600390253-8
r r
CONFIDENT Vil..
The construction industry now uses dolomite in cement, replacing imported
magnesite.
Iy,e resistant paper has been imported up to the present, but a way has now
been found to produce it from domestic materials. Also, synthetic wax and
plastic materials have been produced.
At the Matyas Rakosi Works, the use of'imported graphite crucibles has
been eliminated. The crucibles have been replaced by high-frequency smelting
furnaces.
The above list of innovations means a great savings for the national
economy.
REPORTS HUNGARY CANNOT FULFILL REPARATIONS DELIVERIES TO USSh -- Stockholm,
Svenek TTtrikeshendel. Nn 72_ 15 Den 90
According to The Observer, Professor E. Varga, who went to Hungary in May
1950, has returned to the USSR with a report that Hungary is unable to main-
tain reparations deliveries to the USSR during the current year and that
there is also no possibility that Hungary will be able to fulfill the trade
agreement with the USSR.
According to Hungarian sources, the main reasons for Hungary's increased
economic difficulties arc: (1) Hungary's industrial equipment is worn out;
practically no replacement has taken place since 1939; (2) the decline in
trade with Western Europe has affected the country's normal economic life
adversely; (3) the sudden rupture with Yugoslavia has injured Hungary's
economy as much as it has Yugoslavia's; (4) the rapid socialization of all
large industries has caused disruption and loss; and (5) eictreme work norms
imposed on industrial workers have lowered morale and efficiency.
CONFIDENTIAL
Sanitized Copy Approved for Release 2011/10/19: CIA-RDP80-00809A000600390253-8