DIRECTION AND CONTROL OF THE HUNGARIAN ECONOMY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A000300470008-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 15, 2016
• Document Release Date: March 12, 2001
• Sequence Number: 8
• Publication Date: April 8, 1953
• Content Type: REPORT

Approved For Release 2001/04/12 : CIA-RDP80-00810A000300470008-9
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
SECRET'
SECURITY INFORMATION
This Document contains information affecting the Na-
tional Defense of the United States, within the mean-
ing of Title 18, Sections 793 and 794, of the U.S. Code, as
amended. Its transmission or revelation of its contents
to or receipt by an unauthorized person is prohibited
by law. The reproduction of this form is prohibited.
COUNTRY
SUBJECT
DATE OF INFO.
PLACE ACQUIRED
Hungary
Direction and Control of the
Huhgatian Economy
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REPORT NO.
DATE DISTR.
NO. OF PAGES
REQUIREMENT NO.
REFERENCES
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8 April:1953
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THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE) ?
ROsnonsibility for the Direction of the Hungarian EconomY
1. The Central Committee of the Hungarian Workers9 Party (Magyar Dolgozok Partja
Koevonti Vezetoeseg) was the supreme executive organ: in Hungary. Over?ill
plans for the Hungarian national economy were initiated by this organ and implemented
by its subordinate bodies.
2. The Hungarian National Economic Council (Magyar Nepgazdasigi Tanacs) was the
supreme authority on Hungarian economy. It made basic decisions concerning the 4
improvement of Hungarian economic life, with the approval of the Central. Committee of
the Hungarian Workere Party, to whit% it was immediately subordinate. Enloe
Geroe,Deppty Prime Minister and First Secretary of the Hungarian Workers1 Party,
was Director of the National Economic Council, The decisions of this body were
published in its official publication, Nitional Economic Decrees (Nepgazdaika
Rendeletek), which was claseified as secret and was available to only the
State Planning Office, directors of enterprises, ministerial department chiefs
and directors of distribution centers for industrial and commercial materials,
This publication was the supreme: organ for the Hungarian ministries of economy,
atriculture, industries, and commerce.
3. The Economic Committee(Gazdasagi Bizottsag), also immediately subordinate to the
Hungarian Workers Party Central Committee, helped to implement the directives
of the National Economic Council.
4, The State Planning Office (Orszagos Tervhivaltal) directed, correlated and consolidated
all directives and regulations pertaining to the execution of the economic plans
by the Hungarian agricultural, industrial, and commercial ministries, This body
elaborated the decisions of the National Economic Council and the Economic Committee
and was responsible for the implementation of the directives elabofated by the
State Planning Office in cooperation with the ministries were published in the
official
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pOlieatiOn of the COunzil of_-Ministers, .the Hui journ41
(Magyar Koeziopny)1 and in tbe_offiei 1 p iicatio (5771WWte
.:481;nning7 Office,* PlannedEsics.aior_sz. Journal ..(Terir..gazdasagi Srtee1s0.
Orgatization.-Of Industrial Ministries
When RUPPrian, industry had been ed letelynatIonalized in. 19494
4,..reorga#1.400.C.the Minietries *is .tarried. outs MinietriOs
:bad.tivo'mainllorandbeso.one-dealingwith tte. ad0444trative
'.$1421WhOht of the *ib4lOr.r.A44 the other A110. Vi0404tion
aana1e*40:,, Tho adpiniStrative branab collotated of iierp[:. -
15HadMinistrative?divisions .(Elvi.roeisztaly litera1,44.
theoretical divisione) and the'prodietien branCh consiSted.
0010 IQ prOdUctiOn. divisions (Iparagtlifeeesztaly,- literally,'
ipftstrial branch :divisions). The administratiVe division re
relpeisaPae for the 40miniStration Of i nuMber-,..of entetsiriceSA0der:,
0114',00004-et a, 114414.0ular industrial miniritry.i.andf.the4redUe00.14.
2.4iVisiont werertitpensible.for:the lanageient of the ,preduCtion:of-
these enterPrisee! The principal task of the aduinistilat04"1,0***11
of an indiStri#414.0411017.?wel to eoordinate the uetiOs of th.
00400,011.44*iliens in the, slinistryo't0 onpervistVlbeirwork
and to'000i,te'400 the order's Of the ittate Planning Offiee
"an4 5,nstOnet4h01.110lished in the official organs were'earried. ,
cut.. by *400*,' ,The preductien divisions were resOonsiblefereeeliniV. ?
that:thkOtaternot inketrial:enterprApes 041r. the, 0004 of'
the linistry:Carried out their operative' directile4. lre4nettelk
itivisien and department chiefs inspected VariOiAndtstrial0.41*
and'say.t0.it'thatAhe APALgenlent 'carried out the-direetives.'T.
'010.30.4*Atilte and technleal superviiery personnel of the enter
0140 Were ult1.00021 responsible to the impleasntation of
Prodoomn 4#001a,,e6-0
In' case" 0 es01100?neglisempe in the fultiUment.041144motioA
.41000eti*Os Aka, 10140t4 production division ?MOS...ivy/1r* Obli d
to take the necemearY disciplinary .measures against the guilty"
partieC After investigation; they Submitted.* report tOA?h0A01
*Ai 26C ;NIA'AiTfalt4 . ;.'4400044:
pntt?vo pr000 41440 4
ea*CL,Or,,,offenses serioUS'inoUghi. to hinder prodiation and :oenw,..'
sidered sabOtage:tgainst,the People's Demooratio Republic,,L the
lty,lartiee.wire either immediately arrested by the State
peirity:Perctv(AIlmavedelnii"Rateiag AVR) or they, were, remove*:
and,thut,:nade hapaless to the Rtingarianyeople,s see osky.
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7.
apittatitl;
Supervision.and control organized on the Soviet Union.patteri
AXII:ehareeteristis featurevof the countries which have planned
e40near.' Great rtance was attached to supervision and contra
Weverybody breverybody. Everybody's- work, fro* thgrminister
to a 'plant section chief, was supervised and ntrolledley some:
office.. Thu.*, for example, in an industrial Ainistri-the -
AdpinietratiVe Ailapiona aupervteed tke.wOrk of the-nrodUetion
divisions, and the latter supervised the work of the lndustiiial.
plint.manageilm .10,1c.tohich in turn supervised department Chiefs, who
sOiryiied section chiefs, and eo on down to the 10014T. .
1N;groe purpose of centralizing the S ervisory ectiVirties,.o6he
algi;f4eLeontpol'Oenter Ellenoezesi Nolzpont)-wat "
establithectin 19400: This we've ltrge-organisation7emple*US
. m4re than one thousand persona. The functions of this State':,
Control ,Center consisted of strict supervision of industrial
enterprises, watching for negligence or sabotage, investigating
the eel* Of the ministries And initiating criminal proceeding*
against the, delinquent* as well at tiiiiitigLe4lit.iltirnfligaleknalt, ;6'
or punidhitent against them; In serious cases the guilty were
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immediately arrested by the AVH.
9,? In February 1952 the disciplinary funotion of the production ditisions of the
industrial ministries p which had operated in addition to the State Control Center
and which on many occasions I know of had caused action to be taken against
employees on the basis of false accusations, was abolished. The function was
transferred, within the ministries, to newly established separate disciplinary
commissions.
SECRET
Approved For Release 2001/04/12 : CIA-RDP80-00810A000300470008-9