DESCRIBES SOVIET EXPLOITATION OF HUNGARIAN INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700040126-6
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: October 31, 2011
• Sequence Number: 126
• Publication Date: January 23, 1952
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP80-00809A000700040126-6
STAT
vvl~alr wri ' ,C I INFORMATION,fL S TRIO]j
CENTRAL INTELLITYIGENCE AGENCY IZpR
INFORMA 'ION FROM
FOREIGN DOCUMEf I OR RADIO BROADCASTS CD NO.
COUNTRY Hungary
SUBJECT Economic - Exports, aluminum industry,
reparations
HOW
PUBLISHED irregular newspaper
WHERE
PUBLISHED Bonn
DATE
PUBLISHED 11 Dec 1951
LANGUAGE German
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DATF OF
INFORMATION 1951
Der Informationsdienst (vaJro, d. -
DESCRIBES SOVIET EXPLOITATION OF HUNGARIAN INDUSTRY
After World War II, the Soviets dismantled many Hungarian war plants and
shipped the equipment to the USSR. Among the plants affected by this action
were the ones at Gyor and at Szekesfehervar. From the present Matyas Rakosi
Works at Csepel the Soviets removed all machinery for the production of tanks
and airplanes. Even office equipment, including typewriters, was carted away.
Under the peace treaty with Hungary, all German capital in Hungary be-
came the property of the Soviets. Part of the German-owned property, including
85,821+ lathes, 1,146 other machines, and three textile plants in Ujpest, Buda-
pest, and Vac, was dismantled and shipped to the USSR. The textile plant on
Kesel Street (third district of Budapest) was dismantled In May 1950, the
textile plant of Keles Street (also third district) was dismantled in August
1950; both plants were .subsequently shipped to the USSR.
In connection with the plentiful bauxite deposits, a sizable aluminum in-
dustry developed in Hung-y. Since previously the aluminum industry was partly
financed with German capital, the Soviets now control more than 50 percent of
that industry. After 1948, under --oviet pressure, a new aluminum plant was
constructed which now produces for the armaments industry. The following
aluminum plants are also working for war production: Aluminiumerc-Banya as
Ipar R.T. in Budapest, 50 percent Soviet controlled; Dunavolgyi Timfoldipar
R.T.; Magyar-Szovjet Bauxit Aluminum R.T., also 50 percent controlled by the
Soviets; and Magyar Bauxitbanya R.T., Budapest, of whose capital of 18,480,000
pengos Zeij 50 percent is owned by the Soviets. Although Hungary produces
large quantities of aluminum, in spring 1950 the government was forced to
prohibit the manufacture of aluminum goods for mans consumption.
Due to Soviet pressure for quantity, the quality of merchandise made in
Hungary has generally declined, which can be demonstrated by the following
example. A Budapest plant manufactures axles for railroad and trolley cars,
and various types of files. Of the 1,100 workers employed in the plant, 600
are party members. The quality of the merchandise manufactured is very poor.
-Jlrr f+ Thirty percent are rejects, of which 15 percent is due to faulty material and
?L~^ v~ 15 percent to poor discipline among the workers. When the finished products
are delivered to the Soviets, the examining commission is very exacting and
rejects merchandise with the slightest imperfection. Thus, for example, 12
carloads of rails were returned because of poor workmanship.
`7' CLASSIFICATION
STATE NAVY NSRB
ARMY AIR FBI
RESTRICTED
DISTRIBUTIO
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31
CIA-RDP80-00809A000700040126-6
 Declassified in Part - Sanitized Copy Approved for Release 2011
? RESTRICTED
.STRICTER
Reparations are another method employed by the Soviets to exploit Hungary.
Without any regard for the world-v..de increase of prices, reparations are cal-
culated t 1939 prices. As a result, some goods are delivered below cost price.
Bicycles manufactured for reparations cost the Budapest plant from 1,100 to
1,200 forinta and were credited by the Soviets with only 600 to 800 forints on
the reparations account.
Hungary has to import most of the raw materials needed for the manufac-
ture of the products demanded by the Soviets. For example, iron ore is im-
ported at relatively high prices from Krivoy Rog in the USSR. Hungarian in-
dustrial methods are obsolete, thus requiring a disproportionately large labor
force.
Hungary is also building ships for the USSR. On 2 May 1949, a new 1,200-
con ocean-going vessel, equipped with an 800-horsepower diesel motor,.vas sent
to Le USSR. The vessel, named Alekosehevoy fapproximation of Russian, nam 7,
was built in?Budapect for a reparations account. The first inland motor ship'-'
built in Budapest, the 800-horsepower Plitva, was transported to the USSR on
11 May 1950, and the 1,200-ton, 800-borsepower motor ship Sergei Tyulemon was
delivered on 1 June 1950. The 800-ton motor tug Kharkov, built at the Obuda
shipyards, was delivered on 10 July 1950, and the COO-horsepower steam tug
Ochekov, also built at Obuda, was delivered on 1 November 1950.
The Hungarian-Soviet civilian air line MASZOVLET is supplied with planes
and personnel by the Soviets. The Hungarians furnish airfields, fuel, and
auxiliary personnel. Controlled by the Soviets, MASZOVLET is the only civilian
air line operating in Hungary.
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31 :