GERO, RAKOSI DISCUSSES 1951 PLAN FULFILLMENT, SHORTCOMINGS; OUTLINE HUNGARY'S ECONOMIC TASKS FOR 1952

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000700060150-7
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 5
• Document Creation Date: December 22, 2016
• Document Release Date: October 6, 2011
• Sequence Number: 150
• Publication Date: April 28, 1952
• Content Type: REPORT

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CLASSIFICATION RSS'TR~IggCTSD
CENTRALSINTELLIE~ GT~ENCE AGTENCY
INFORMATION FROM
FOREIGN DOCUMENTS OR RADIO BROADCASTS
COUNTRY ga,g~.y
SUBJECT 8con~ic _
Agriculture, industry, P?wing
HOW Sociological -Manpower
REPORT
CD N0.
DATE OF
INFORMATION 1952
PUBLISHED Dsil news DATE DIST. 1g' ppr 1952
Y PaF'r
WHERE
PUBLISHED Bude~pest
DATE
PUBLISHED 13, 15 Jan 1952
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SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
(7>3R0 RAH!06I... _ .~ PLAP FT1i.FTf.TLi~pn SHOBTCOMIH(16;
OtTl'LI1GH HOA Y'3 SCOBOMIC TASBS FOR 1952
a1V83 PbAH ~''.~""~""' FIOURffi __ Szabad HeP, 13 Jan 52
Ia s speech at bhe 12 January 1952 meeting of the Central Gammittee of the
Hungarian Workers Party at Budapest, 1s~ao Oero, President of the National Plaa-
ring Council, discussed 1951 Plan fklfil].metrt, and tasks for 1952 9/ fo]lowsi
H~'y succesaftAly fulfilled its augmented 1951 plan on 31 December, The
meaufactaring iadnetry fulfilled its production plan 103.4 perce~, repreee~ing
a total increase of 30.1 percent over 1950? This increase amounts to 377 per-
esut fir heavy indvatiy, 26.9 percetrt for J.ight industry, and 16,5 percent far
produc~oa~~t~~ Heavy industry's output last year was 310.9 Percent of 1938
~leTh~pr~oauotion index for industry as a whole rate 14.5 percent since 1950,
vy~ lnduatry alone it increased 17.7 perce~ is 1951? If 1938 pro-
duction is taken as 100 percent, then the production index for 1951 e4vala 150.6
percent.
Bath the agriculture and the trwaportation plans were fulfilled. Cootpara-.
Live statistics indicate that the value of all investments rose 40 percent in
1951?
Factors contributing to plan fulfillment were: guidance and cooperation by
Party organizations; mass movements originated by Gaz3~, Roder, and Mrs Desk for
material conservation and increased productivity; conferences at which problems
were openly discussed and solutibna proposed, such as the - gnomic leadership,
the metallurgical, and the Tatabs~a coal mining coafereac_,; and,
closer eeoaomlc and scieabific cooperation between Hungary sad other P~eoglYera~
Democracies.
basic raw m~ateriarea atoiLl a ~e p~rogresa is 1951, Psoductioa shortages in
fill its a pparent. The coal mining industry did sot Ptil.-
ngmeated plan for 1951, and production continues to lag this year,
;.TATE NAW
ARNY AIR
NSRB
DISTRIBUTION ~ ~~
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Honcthelese, the basic prerequisite for pls. fulfillme~ in 1852 is an increase
of 3,3~,~ tons in coal production ae compared with 1951. Petroleum produc-
tion vas also below plan requirements until the lest quarter of 1951.
It is particular., important far. the ferrous metallurgical industries to
fulfill their' plane sot only as a whole, but in every detail this year. This
applies to other iadnatMes ae well; light industry, for emample, must produce
sot what it pleases, but xhat the plan prescribes. The 1952 plan requires the
expansion and acceleration of nonferrous metallurgg, the aluminum industry,
electMc power production, and the building materials industry.
The manufactuMng industry must produce 25 percent more this year than in''
1951. Since matgq of industry~s readily accessible ree~rves have been exhausted,
the'25-percent increase will not be easy to achieve.
The current year ie the crucial period is the Five-Year plan, because it
will eirtail the mascimwn in effort asd investment. Economists and party org~iz-
ationa must, therefore, pay special attention to utilizing p~roduetion equipment
caner and maintaining a more uniform rate of prodution,etrengtheaing stork dis-
pline,ensuring manpower, reducing production costs, improving quality of pro-
ducts, and raising the stan3ards of management.
Better Btilizatioa of Production Equipment
Production equipment can be utilized beat when the progressive rise in p~ro-
ductioa rate called for by the l0~ay plans is realized. Hovevar, there era
branches of industry where the production rate must he set daily and esroa hourly.
This year, every industry moat operate at a steadily mowing, planned production
rate. This aril.]. eliminate waste of manpower and equipment caused until now by
production lags during the first 10 days of the month and rush work i~olving
overtime during the last 10 days.
Saterpriaes engaged in mesa production, such as the coal mining and machin-
ery industries, should crgaaize.a production departme~ to modernize production
management.
The sooner tht bulk of the manufacturing industry adopts cyclical p~rodnetioa
and accelerated operating methods, the more rapidly and. econcmmically it srl.11 pro-
duce. Ferrous metallurgy, in particular, will have to use accelerated operating
methods more extenaivelg to Fulfill its 1952 Plan. At present, the metallurgical
works at Diobgyor and Ozd lose 20-SO percent of their working time and roll only
35 tons of steel per hour, srherlas steel mills is the Soviet IInion, using the
same type of rolling equipment, plus accelerated operating methods, re31 45 tone
of steel per hour. Accelerated operating methods increased production xhen they
were adopted by the glass industry in the form of the Soliaov moveme~, and by
railroad bMdge mamiYacturers in the form of the Kovalyov movement.
The fear statistics derived Pram experimentation with cyelical'productioa
methods in coal mining show that lii:tle progress has been made in this Field ~p
to now,
Trade unions and party organs must intensify work competition in 1852. Work
competition is conducted on the basis of the 1952 P7~ for the whole year, and
Yor each month and quarter year. Every industry, igduatrial branch, and shop
competes for the pennrnts awarded by the Trade IInion Council awl the Council oY
ldini stare.
Industry moat economize in investments authorized for 1952 - 1953 so that
financial resources can be concentrated on getting mayor pro,~ec.s oa an operating
basis.
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STAT
StrenathealnR Discipline
Work, gage, and plan dlscipline moat be strengthened is 1952? The decree
of the Council of Ministers which states that norms moat be ad,nuated wherever
production coaditio:,a change -- through installation of time-and labor-saving
devices or systems -- moat be strictly adhered to. At present, norm ad,~ustmeat
is rare, and its omission constitutes a common affi serious breach of wage dis-
cipline. To ensure plea discipline, more stringent regulations must be applied
to loafers, abeeatees, a~i workers who quit their fobs without permission.
Enterprises and managers will be held .responsible for every failure in plan
i1~lfillme-.t sad for,aeglecting to prosecute breaches of wage and and work di~-
cipline i.n 1952. However, industry has a right to expect that plans, once fa~rm-
ulated, will not be conetaatly amended. Repetition oi' plan elackeaing, through
ministerial reduction of monthly production plans and increase of wage plans,
will sat be tolerated this year.
Ensuring Manpower
Manpower shortage in agriculture, industry, and transportation wee a mayor
problem in 1951. Steps moat be taken now to prevent its recurrence is 1952. Ia-
duetry can do this by conducting regular and ac?bive tabor recruitment drives, by'
transferring surplus administrative personnel to the production department, and
by aseigaing i~nstrial apprentices to shops where they are most needefl. Apprea-
tices will be able to assume f1i11 workixgresponaibilities sooner iY the mini~1e
age requiroment is raised in training courses designed for skilled labor.
The seasonal labor effort required by agriculture makes the securing of its
manpower quota the most difficult problem of 19$2. Therefore, agriculture should
pat its harbet workers under contract well in advance, offering shares is produce
as an inducement.
Reduction in Prodnctioa Coats
Aothcugh the macufacturing industry as a whole apparently ~++~r+?ed its
coat-reduction plan, statistics indicate that there were same serious deficien-
cies. Expenses were overestimated in crude oil production; costa increased s~
quality deteriorated in the coal production and tiro mamifaetm!ing industries.
Ia many cases, Suality was allowed to drop below government standards so that re-
duction is production costs could be r?+ported. Whoa the men's clothing indnatiy
arbitrarily shortened the length of costa, it proved that false econam4r le~de ?to
waste, since consumers were obliged to buy oversize suits to get the required
length.
Reduction of ~:-oductioa costa can best be achieved by eYpedieat use o! pro-
duction egnipmeut, etrengthbni~~? of plan a?~3 wage discipline, strict acherence
to material norms, and establishment of accounting departments.
~ualit9 of Products
It was frequa~ly necessary to remind manufacturers is 1951 that the qual-
ity of their products must meet export standards. Complaints were also received
that inferior coal was ruining the locomotives. To fulfill the plan in 1952, ia-
duatry moat produce not only more, but a greater variei;y of attractive, higr-
gnality goods.
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3taadirds of Management
The concept of single responsibility in industrial management gained many
adherents in 1951, helping to obviate the need for the plant triangle, Attempts
to extearl coat acconating and profit-and-lose record keeping to the component
shops of the enterprises were only moderately successful, however.
A lack of systematic planning Was observed in the advanced training oY in-
duatriel management personnel. The ministries, trusts, and e~erpriaes moat un-
i~r these '~~.h8 programs and select managerial material With care. In the
Future the ministries must avoid issuing important econamlc and technical regu-
lations to enterprises Without first notifying the working masses and party
Committees.
Plan i~a t 7.led~Science and techaoaed throughout i!+.,iustry if the 1952
gy moat Work in closer union to
iacrasae Production. Research Work in the laboratories of enterprises moat be
given aeW impetus through improved Planning and advisory Work. Financial man-
agement in the ministries mast also receive thorough attention.
Solution of all these problemr depends on realization of single responsi-
bility from the ministries down to the brigades.
RASOSI HITS SLACK DISCIPLIlVE, POOR QUALITY -- Szabad Nep, 15 Jan 52
Highlights of a speech by Matyas Rakosi, xhich followed Gero's.speech at
the 12 Jamiary 1952 meeting of the Central Committee of the Hungarian Workers
Party, are ae follow;
ComplaYats about slack work discipline are heard daily from the managements,
but the managements themselves still deal too leniently with absentees and loaS-
ere, because they Year that strictness would have an unfavorable affect on pro-
~~. A'L'i evidence, however, points to the contrary. Failure to penalize
slackers merely leads to flu Cher abuses of xrk and Wage discipline, whereas the
~ ~~~ ~ alegalized emanagement's disciplinary authority is such instances
~'Y production. IInlesa the managnmaata enforce
the decree enacted to help them, no improvement in discipline can be expected.
A similar situation prevails in the question of manpower shortage, The
loudest camplainte came foam `.he coal mining industry, yet it ie wa]1 known that
new workers recruited especially for the mines are neglected to such an extent
that they eventually fall under the influence of the eneep and leave. %ung
workers and wcxoen are treated similarly. Rece~ly, ever graduates of govarnmant
retraining courses have been sent from shop to shop or used for un$killed labor.
The situation is serious and moat be remedied immediately. It is also essential
that the 100,000-200,000 new workers hired annually by industry should be trained
in safety regulations, because the frequency of accidents makes labor incresa-
ingly reluctant to serve in industry.
The Poor quality of industrial products is a matter of grave concern. It
ben becaeie Gammon practice for manufacturers to neglect products i~hich require
careful workmanship and to exceed the plan in easily mamiYactured items. So
much time is conat~aed to repairing inferior products that many managers either
refliae to accept ordesa calling for preoZaion work or, in the case of export
goods, do not complete the order on time. More and more goods are being reacted
because of defects. The gieveat consequence is that export orders Pvr precision
instruments have been canceled. This magna, of course, that unless quality ie
im~oved, Hungai3 will be unable to import raw materials and machinery vital to
the national economp.
STAT
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There ie eti71 etidence of a lack of cooperation betpeaa trorhiars and tech_
niotans, Dlu'ticnlarl7 in the coal misi.a6 ~'~tr9? 8eports that ranch of the new
reiohinerf it idbe'most of tl~ time, because the miners have not hose tan~t to
~operats it, shoi- that l4l.lu.caoperation is essential here. Inspection comait=
touring th? slaps hs~ often faoad the chief engineer absent Pram his post.
The Aaa~ty.organtzatioms ha~a aes:med eider responsibilities in the econwdc
field. Zconaale leaEership, ~.yserar, should net me]as the party entirely respons-
tble for pc'Odtat~olQ sssnlte. BesBonsibility moat be shared. The etste?nt 'Shat
food pradnetion resalts reflect campeteat party york should be modified to rssd:.
Prodnatioa reaalts refieot the degree of cooperation betveea party organisations
and the eca~ncoic branches.
STAT
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