1948 PLANS FOR DEVELOPMENT OF POLISH ELECTRICAL INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000600400233-8
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 6
• Document Creation Date: December 22, 2016
• Document Release Date: August 25, 2011
• Sequence Number: 233
• Publication Date: July 11, 1951
• Content Type: REPORT

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CLASSIFICATION CONFIDENTIAL.AQ[tl(~ Ir ~9''C
CENTRAL INTELLIGENCE ',GE ~' :A E ORT
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
SUBJECT Ecc~~oa ?'Lrctr].cai .ndus?tr'y;
and planning
HOW
PUBLISHED Mcn'h_-p per~d:ca-
WHERE
PUBLISHED Jerisv
DATE
PUBLISHED i k Fr, ;.948
LANGUAGE Fol.s?r
1NIS DOCUNINT CONTAINS INFORNATIOM AFFECTING THE NATIONAL DEFENSE
OF THI UNITED STATES WITHIN THE MEANING Of ESPIONAGE ACT NO
U. S. C.. SI AND SD. Al AN IN Dt D. ITS TRANSMISSION OR THE REVELATION
Of ITS CONTENTS IN ANT IRANMIR TO AN UNAUTHORISED PERSON IS PRO'
MINUTED IT LAW. aSPRODUCTION OF THIS FORM IS PRO0IIITEO.
PrcegladEl.ektrotechniczy. Vol XY3v,
DATE OF
INFORMATION 1948
DATE DIST. // Jul 1951
NO. OF PAGES 6
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
1948-
19L8 FIF DFVE1.'OPMSPT OF POLISH FI..EC'PR.ICAL INDUSTRY
CLASSIFICATION
NAVY 1)( 1 NSRB
%FDET!AL
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tc, 9 9, the Fcl-.ah e"ectc_cal industry consisted of 220 enterprises with
a tits" of +?,000 vcrrers The annual production was valued at 270 million
zs:tyF The prewar :nveatment car.:tal of the electrical industry is estimated
at 160 m Ilion zlotys, hence, the vatic of production to investment was 1.68-1.
The investment per vo*_ker vas 5,000 zlotys, and annual production per worker was
value,l at 8,4:0 .IDtye
In 1915, 40 enterprisea ere activated vwch an investment capital of' 90 mil-
lion zlotys, but, because of var d.anage, thin capital did not yield its full pro-
duction poeaibi.lities. The value of production amounted to 16,500,000 zlotys,
and the number of workers Increased frca 5.000 to 8,100 in the second half of 1948.
In 1947, 68 enterpri.ses with an average employment of 19,000 had an invest-
ment capital of 110 million zlotys and a production valued at 167 million prewar
zlotys. The ratio of production to investment was 1-5,,l, and the value of produc-
t-ion per worker-es 8,750 zlotys The increaee In 1947 production over 1946 pro-
ductioh amounted to 104 percent, with an increase in employment of 60 percent.
It is expected that in 19L8, the production value will aaucunt to 250 million
zlotye, the average employment will be ?7,000 workers, and the value of investment
capital will reach 130 million zlotys, This means that production will increase
by 50 percent and employment will increase by 42 percent over 1947. The ratio of
production to investment will be 1.92,.1., the annual production per worker will be
9,250 zlotys, and the Investment per worker will be 4,800 zlotys.
In 1955, the annual production of state, cooperative, and private industry
will. be 700 million zlotys, The state industrial production will be 650 million
zlotys? The number of workers empioyed will. be 53,000.
The investment capital. in state industry should reach 250 million zlotys in
1955, and it is anticipated that the ratio of production to investment will be
2.6?1, the value of annual production per worker will be over 12,000 zlotys, and
the investment capital per worker will be 4,700 zlotys-
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By ?955, the yer~ iy pr:.d.uctirO and. consumption of electric power in Poland
ui;.; increase to 600 kiluuvatt-hours per capita. This is a conservative estimate,
since the Central. Power Administration expects per-capita consumption of over
100 tlcv'att-hours in 1955 .It is anticipated that the telephone network will be
expanued and the number of telephones will increase to 30 per 1,000 residents.
To Poland there are now five telephones per 1,000 residents. Before the war, Ger-
many had 50 per 1,000 residentr and Sweden 100., The number. of radio sets will in-
reased from ction eFs nthe0fact Another percentofn henpro-
duction value
During the German ,!ccupati^a, electrical engineers, some of whom are now
located in Poland, worked _rut a plan for the development of the Polish electri-
cal industry. At that time. the results of this work were sent illegally to
London to the Bri.tiSh Division of SEP (Association of Polish Electrical Engineers),
ern-re they appeesed. :.n a work entitled "Guiding Principles for the Reconstruction
of the Polish Electrical Lnd.ustry 'n the First Ten Year--s After the War." According
to these principles, annual production was anticipated at 750 million zlotys with
an investment capital.-if 382 million zlotys, vntch means that the ratio of annual
production to investment would be 1 9.1. The number to be employed was shown as
59,000, resulting in an annual output per worker of 12,500 zlotys, and the invest-
ment per worker fluctuating between li,000 end 12,000 zlotys (depending on the
erticle produced) or an average per worker :f 6,400 zlotys
?t :b necul t tc compare th f wing investment irequiredtin the electrical
basic difference is in the figures showing
tnduatry
The ea.r',ler plan was based on the assumption of single-shift operation with
only partial double-shift production in the manufacture of radio tubes, light
bulbs, storage batteries, primary cells, cables, conductors, and insulating ma-
ter 816 The choice of _-Ingle-shift operation was based on the expectation of
relatively high foreign investment, namely. 1.6 b.i.llion zlotys for the entire
Polish economy during the first 6 years after the var.
Poland's actual. reconstruction is based on the use of a part of the current
national i.ncome for investments; hence, i~ must be carried out with considerably
small.er, means than the earlier plan envisaged, Th.';; necessitates multiple-shift
operation, reductionvf the amount of investment per worker, and the highest pos-
sible redo of production to investment.
By 1949, the effect of the =,dernization of Cieszyn by the construction of
a new factory, of the expansion of the transformer factory in Mfi.kolow, and of the
investments to be completed in 1948 in Zychlin and in "Elektrobudowa" in Lodz,
will be felt in electrical machinery production, The automotive electric:-parts
in Swiebodzice, which is to produce generators and starters, and which is now in
the process of construction, will also contribute to the nation's production.
Beginning with 1950, machine production vi.ll.be notably increased through
the activation of a factory manufacturing large electri.cal machines in Wroclaw.
There are continued shortages f apparatus, particularly ihih-voltagetappa-
ratus and automatic lov-voltage apparatus,
oil circuit breakers and electric meters..
Radio production will still. be inadequate for 1948 despite the increase from
possible
vithOthedradio-tube factory now operating, onuthetbasis eofaa recently concluded
license agreement,
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roe pr.dnct ua crhir.?s aril c^nductIrS, surpassing prewar production, was
made poeetbl.e, in view of the relatively email destruction in this branch of the
electt-ic:a::, indr._t:y, through the introuuction of multiple-shift operations. This
will. hermit Poland to start exporting in 1948
The large production of storage batteries and primary cells, surpassing pre-
war production, results from the great demand of the automotive industry and of
the railroad-equipment industry, vbc'se production of freight cars is above the
prewar level
It is expected that the 948 electric.-bulb production will surpass prewar
production and vi.l:l be sufficient to make up the shortages of previous years.
In 1948, :t.ste industry viii,recel.ve more than half of Poland's electrical
production, fyroken down as finllwa. power 20 percent, coal industry 11, metal-
l.urgic.a.i ind.urtry 5, textile Industry ., railroads 9, telecommunications 7..5,
automntcVe twlustry and. others 5 percent. Slaty percent of the electrical
industry"s prc:?bactia?a consiets of producers .code. Only 14 percent of the
total production, including the radios, will go to final consumers.
To increase the present level of production to that planned in 1955, it is
necessary to activate new fac:tur.i.es to absorb part of the 30,000 new workers in
the industry The present fact,orlea alQue will no, be able toeincrreasetprodproduc-
tion from 250 lail:-ion i1otyi
to be activated are as follow
11 Fabryka Wiel*Ktch Ma--j2yn Electri.cznych (Factory for Large Electrical
Machinery). Wr?:!ciav, now under constructten, viii begin production in 191+9,
and viii be to full operation in 1950-51
2 A large factory is to be estabiiehed for the mass production of stand-
ard el.ectr.lc motor-, 2-10 b-llovatt capacity, to be used mainly in the electrifi-
cation of w.illages and. in manual trades. This factory, in conjunction with a
v0cationa.l school, is to be located in an undeveloped area on the right bank of
the Wisla River
3, Fabryka Aparatow E1ek.tryc2ych Wysoxiego Napiecia (High-Voltage Electric
Apparatus Factory) is to be patterned on the Warsaw factory, which will not be
able to meet the electrification program of the country, since part of the Warsaw
factory's production is electrical medical. equipment, particularly x-ray apparatus.
4. A new low-voltage electrical apparatus factory, probable location in
Pomorze, is to supplement the present Lodz factory.
5.. A rectifier ,factory is to supply transportation-equipment industries.
6. A new copper rolling mill and cable factory using Doiny Slask copper and
imported raw materials will produce for domestic needs and for export. The rolling
mill and factory will he located in the Oder River area.
7 A new electric-light-equipment factory to Warsaw will produce not only
ordinary buib,~, h,]I, .?t l :;1? :i! i:. ',1;. ::ii?i;,:l 11 .`,Ii I lqL i, C1i71~. ~'lii`[71:, i, iii.. ,. I rili?y fluo.
rescent. The Warsaw L3 LiLht-Bulb Facl.ery, part of the new complex, is to he
activated in 1948.
8. A Warsaw center for telecommunications equipment, a dial-telephone ex-
change, and amplifier factories are now under construction in Warsaw.
9. A Warsaw center will produce radio loud-speakers and radiocommunication
apparatus,
CONFIDENTIAL
CONT RE111 TIA
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CON1I ET
Be-.des license agreements already concluded for technical cooperation on
signal equipment and railroad block systems, and for the production of light
bulbs, radio tube,., and dial.-telephone exchanges, the electrical industry ex-
pects to conclude further agreements to facilitate the production of tm bogen-
eratore, high-voltage circuit breakers, high-voltage cables, reversing switches
for overloaded transformers, rectifi^rs, ferronickel storage batteries, and con-
densers for correcting the coefficient of power.
The electrical industry must apply the research of the State Electrotechnical
Institute on insulation materials such as ceramics, spun glass, and silicones. It
must cooperate with the Electrotechnical and Metallurgical Institutes on the prob-
lem of magnetic materials. It must work with the Electrotechnical Institute and
with large industrial consumers on the problem of efficient lighting.
6,000 The remainder were to be administrative employees.
distributed among the following categories engineers, 2 percent, or 1,200;
technicians, 6 percent, or 3,600; skilled artisans, 25 percent, or 15,000;
trained workers, 45 percent, or 27,000; and unskilled laborers, 10 percent, or
number of industrial 'workers in the tenth year after the war would reach 59,000,
The electrical industry now estimates that it will have 53,000 workers in
.i.zed training to ena'~le tha : to perform specific tasks..
1955 The distribution according to skill. has not been worked out, but it is
likely that the ma,lor..ty will be partially trained. Many will receive special-
At the top of the el.ectrical industry is the Central Administration, which,
like 26 other administrations, is a legal entity.. Under its jurisdiction are
seven association-, two central offices, and one independent enterprise.
The seven associations cover production in the following fields. machinery,
apparatus, cables, storage batteries and primary cells, electric light bulbs,
telecommunications equipment, and radios. These associations are legal entities.
They manage, coordinate, and audit the plants under them, each of which possesses
the status of a legal person..
The associations do not have title to the assets of the plants under them.
Any assigned assets belong to the plants. The Central Marketing Office and the
Central Office of Procurement both operate on the principle of monopoly. Facto-
ries of the electrical industry sell. their products exclusively to the central
offices. Products which are to undergo further processing in other enterprises
of the industry's Central. Admininti-ation are sold to the Central Office of
Procurement; all other products are sold to the Central Marketing Office.
The independent enterprises, which are directly under the Central Adminis-
tration, may include one or more plants. At present, a decree is pending which
will give legal status to the Factory for Large Electrical. Machines, now being
organized and built.
The basic difference between the administrative. association and the multi-
factory independent enterprise is the different appr..ach to bookkeeping. The
administrative association prepares only collated statements for statistical
purposes, while the multifactory independent enterprise maintains a uniform
bookkeeping system with a detailed balance sheet, and not a collated balance
sheet, on the entire operations of the enterprise,,
T
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The enterprise engagee in actual operations, unlike the administrative
association. in the future, this principle may be tried in plants especially
evl.ted to thi_3 type of operation because of the uniformity of their production,
such. ae electric-bulb production, or because of geographical proximity, as for
example, the electrical precision equipment factories in Dolny Slask,
It is anticipated that, in coming years, the structure of the electrical
industry vili change; the associations will. disappear and part of the associ-
ations` functions will be assumed by the Central Administration, and part by
the single or, multtfactcry enterprises There will then be about 20 producing
enterprises under the Central Administration. The distribution will be decided
after discussions with directors of associations and plants, and after compari-
i,on of the results obtained by other industries.,
it is expected that the Central Administration will have five divisions to
handle problems in the economic, production, technical, labor, and administra-
tive and financial fields-
The economic division vill handle long-range planning based on analyses of
the national economy; it will. coordinate production, supply, and employment
plans with the financial and economic plans. It will also handle exports, im-
ports, international cooperation, and stati.stics of the electrical industry.,
The economic division viii. not only coordnate plans within state industry but
will also recommend cooperation with the cooperative and private sectors. This
cooperation involver the coordination of production plans with supply require-
ments.
The production division viii prepare production plans for the subordinate
enterprises and will. coordinate technological plans with production plans. The
production division is responsible for the fulfillment of the plan and for the
economical use of the means of production. It sets up quality-control techniques,
and is responsible for both the volume and quality of production.
The technical division has jurisdiction over engineering design, research,
and laboratories, This division approves new models for production and works
out standardization of products. Problems pertaining to technological improve-
met'- and investments are handled by the technical division. The technical divi-
sion prepares plans for industrial investments and expansion in accord with long-
range guides prepared by the economic division.
The labor division handles problems of manpower, wages, social programs, and
vocational training
Prime costs (raw materials consumed and unit labor) come under the production
division. The complete financial operation (norms on the use of working capital,
cost accounting, interperiod trial balances, and the preparation and analysis of
collate,". balance sheets for the entire industry) is handled by the administrative
and financial division, in cooperation with the Polish National Bank, which begin-
ning in 1948 will take over the financing of industry, the administrative and finan-
cial division will, be responsible for the profits and gross income of the entire
industry within the limits set by the plan.
It is likely that sections will be created within the production divisions of
the management to handle production and technical pro 'ms of enterprises in the
same field of production and with similar technologica-. processes, particularly
branch sections handling the special problems of a given branch of production.
C0E FeCFNTIAL
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Much cr:t:..c;.sm has been leveled at the cumbersome and costly administra-
tAve apparatus of 1r'?ist_ry. Much work is duplicated without contributing to
t'- f!:nal solution of the problems,. Within the present three-echelon struc-
e of industry, i_di.vidual responsibility is not clearly defined. To give
t.~et results, 'porkers and managers alike must be responsible for specific jobs
The most pressing problem to be solved during 1948 is the problem of qual-
ity Quality control techniques must be set up for all stages of production.
The resolution of the main administration of SEP (Society of Polish Electricians)
designating Smoluchovaki, technical director in the Central Administration, as
chairman of the Central C mmission for Electrical Standards, shows that the SEP
appreciates the meaning ,,f cooperation on standards, specifications, and inuexes
for the electri.cal industry
The second problem is the systematic reduction of production costs, mainly
by the introduction of large-series production through plant specialization and
standnrdi.z.aticn of models The administrative and financial division is pre-
pared to analyze cost-accounting problems and is trai.ning experts for this work,.
Another problem is that of international cooperation. The Polish-Czech
Electrical Committee has already begun aper.ating in accord with the agreement
on international economic cooperation. "he statute of organization has been
set up, and duties for subcommittees according to industrial branches have al-
ready been assigned.. There must be mutual understanding of the potentials of
the industries of both countries Work has already been started on uniform
terminology and un'f,:rm.classification for statistical and planning purposes.
There will be an exchange of experts between the countries to work on stand-
ardize ion.
Discussions have been. begun concerning plants of both nations working for
a co~rmon market, and on general principles to be followed by both parties in
concluding agreements., Subsequent cooperation agreements between Poland and
other Slavic nations will help increase Poland's production potential, satisfy
its supply requirement, ani provi.d.e technical cooperation without many of the
unfavorable features of license agreements concluded between foreign nations.
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CON, IBENTIAL