ISSUES REGULATIONS FOR AGRICULTURAL PRODUCTION CONTRACTS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700030517-3
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: October 6, 2011
• Sequence Number: 517
• Publication Date: December 20, 1951
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/10/17: CIA-RDP80-00809A000700030517-3 ~
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CENTRAL INTELLIGENCE AGENCY REPOR
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS CD NO.
COUNTRY Hungary
SUBJECT Agricultural - Iroduction
HOW
PUBLISHED Irregular newspaper
WHERE
PUBLISHED Budapest
DATE
PUBLISHED 9 Sep 1951
LANGUAGE Hungarian
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DATE OF
INFORMATION
SUPPLEMENT TO
REPORT NO.
ISSUES REGULATIONS FOR AGRICULTURAL PRODUCTION CONTRACTS
To develop the system of agricultural production contracts, the Council
of Ministers has issued decree No 167/1951 (IX.9) LMT., the principal provi-
sions of which are as follows:
The purchaser is required to accent ?slivery of the agricultural products
and to furnish certain means for the promotion of production, while the producer
pledges himself to grow the plants specified in the contract and to deliver the
crops.
Only state enterprises are allowed to enter into contract with producers'
cooperatives or independent farmers. In exceptional cases, with the permission
of the Minister of Agriculture, contracts may be made with kulaks.
Unified direction of c-ntract.ual production is exercised by the Minister of
Agriculture, and the presidents of totim and city councils are responsible for the
local coordination and supervision of the contracts. Production contracts may be
entered into only on forms authorized by the Minister of Agriculture, Minister of
Finance, the President of the National Planning Office, and, in some cases, by
other ministries.
To promote production, funds and goods may be advanced to producers. The
rate of interest is determined by the Minister of Agriculture, who may al7o
order advances free of interest. Producers who exceed their contractual obliga-
tions qualitatively or quantitatively may be awarded a bonus.
1. Advance payments and goods, including a eds, fertilizer, etc., within
established time limits.
CLASSIFICATION RESTRICTED
STATE NAVY I NSRB I DISTRIBUTION
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 Sanitized Copy Approved for Release 2011/10/17: CIA-RDP80-00809A000700030517-3
4. Settle the contract and pay for deliveries at the prices and due date
stipulated in the contract, after deduction of advances.
The producer has the following obligations:
1. Use the advanced payments or goods in accordance with the terms of the
contract.
2. Perform planting -- in area, time, and manner -- as specified in the
contract.
3. Observe the production directive and specifications of the purchaser.
4. Delt,"er all or part of the crop in accordance with the terms of the
contract.
5. Refund to the purchaser all debts incurred under the contract which
could not be deducted from the proceeds of deliveries
As representative of the purchasers, the local farmers' cooperative shall
enter into contract with independent farmers. Advance payments and goods will
be distributed by the cooperative among the independent farmers. It is the duty
of the cooperative to collect the crops and to settle payments.
Activities of the farmers' cooperatives in connection with contracted produc-
tion are supervised by the National Association of Cooperatives and the County
Association of Cooperatives. Disputes arising from the execution of the contracts
u'-e settled by the agricultural section of the executive committee of the district
cr city council.
Violation of the terms of the contract may be punished by jail sentence not
to exceed 6 months. The maximum amount of fine is 20,000 forints.
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