PLANNING IN THE MINISTRY OF CHEMICAL INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A000800440009-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 14, 2016
• Document Release Date: February 15, 2002
• Sequence Number: 9
• Publication Date: April 16, 1953
• Content Type: REPORT

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_CENTRAL INTELLIGENCE AGENCY
IN FORMATION REPORT
:SECRET .
SECURITY INFORMATION
PAGt
This Doeurnentaentainsw infornistioniatenting the Ns-
tionali,Defense of tho Milted Stater. within the
ins of Title la. Sections 793 and 7O4, of** VD. ft,, la
aniendod. Da transmission or rrnlation Onto oiinteVis
to or remiptnx an unauthorised petsonarilifoliibited
by law. The reprodttetion of this fOnn Ii ProblENTAM.
COUNTRY Czechoslovakia
REPORT NO.
SUBJECT Plansi*g in the Ministry of
Chemical DATE DISTR. 16 April 1953
'Induetry
NO. OF PAGES
4 25X1A
DATE OF INFO.
REQUIREMENT NO.
PLACE ACQUIRED
REFERENCES
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MI SOURCE EVALUATIONS IN THIS REPORT All DEFINITIVE.
THE APPRAISAL OP CONTENT IS TENTATIVE.
, (FOR XIV SIE WIESE)
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SOURCE.
1. Yearly planning in the Ministry of Chemical Industry was accomplished Very
mush an in other ministries. The planning function started at the loweit
levels in the plants and factories and moved 'upward through various levels
of coordination until the Ministry's draft plat eventually renched the Council
of Ministorkfar approval. When the Ministry's draft _plan was finally sub-
mitted to the Ministry of State PlantinesdbViistollateilof three major parte:
production, finance, and distribution. These three parts were not prepared
simultaneously but were drawn up at different levels and proceeded upward until
they all reached the Ministry's Planning Division. The approved plan then pro?
ceeded downward back through these various levels until it reached the individual
producing units in the plants and fattories. Planning for 1953 was started by
theynrioui Units in the Minietry's plants and faotories about My 1952, Prior
to this date they received a,guide list (Smarm cisla) of critical items to be
produced during 1953 and the amount of production of these items. This guile
list, which was preparedly the Ministry of State Planning, was given to the
Ministry of Chemical Industrrfor distribution to its various producing units.
The Planning Division of the Ministry distributed this guide list to the seven
main administrations which ha*, plants and factories subordinate to them. The
Ministry of State Planning also distributed a handbook on, planning instructions
and proceduras.
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. When a factory received its guide list of critical items: the
list was distributed among the various departments-, which in
turn passed them on to the different shops. Planning for 1953
was decentralized to the shop level in an attempt to instill a
sense of participation in the planning among the workers and to
ateign responsibility at the shop foreman level,* When a shopn
initiated the planning, et prepared a draft plan,of its produc-
tion capacities for 1953, basing it on what the Shop forelenn and
his workers thoughtcould be produced during 1953 plus knowledge
Of the production increase expected according to the Ministry's
five-year plan. All factors which entered into thenproO1401.611
pitture were considered, i.e. manpower, raw materials, salnrieen
equipmeneind facilities, and provision for the productioniptn
critical items. Inasmuch as A shop foreman is not usually train-
ed or skilled at planning, considerable assistance probably
would be given him by the factory's planning section. When the .
shop's draft plan was completed, it was passed on to the depart-
met to which the shop was subordinatee The department (e.g.n
OUlphurie acid or carbide department) consolidated the draft,.
10111nA of all its shops into one plan, which was. submittedetp'the
-planning section of the factory. Thereleognennnnan.ngrn
tire factory was drawn up. Considerable-II:al:son work was, n)
-Ourins the preparation of the draft plan at these dirferellt
and numerous conferences and discussions were held Whiree''
Attempts were made to resolve any disagreements Or ditcre040,41
Before a draft plan was passed to a higher echelon, the 464 or,
.-eaoh unit approved the draft.plan, thereby assuming respOnsiiiiIe.
ity for its content. '
,
The factory's draft plan was prepared by the planning seettcP.4r
'and Submitted to the main administration for inclusion ilit'thee
main administration's draft plan. Starting with the factory,':anfinandial draft plan.wae.prepnred and became part of the over-
all draft plan, The financial draft plan was drawn,, up by the
'finance section pf the factory's financial and economic depart-
tipht. This section worked very closely with, and reoeived-suid-
arice from, the.Pinancial Department of the Ministry's OffiWOf
the Third Vice-Minister. Again, as was the case with theeinits.
'Within the factory the factoryle draft plan was prepared by its
planning section in close collaboration with the next highest"
echelon, in this case the planning section of the main adminis-
tration. I believe the factory's draft plan had to be deliver-
ed to the main administration by 1 September.
Upon receipt of the draft plans from the various factories Bub-
ordinate to it, the main administration proceeded to prepare -
a draft plan for the 'entire main adMinestration; this was done
with close cooperation between the main administration's plan-
ning section and the Ministry's Planning Division. When the '
main administration's draft plan, was completed, it was pagieed
to the Ministry's Planning Division; I believe the Planning-DI
vision was to have these draft plans from the main administra-
tions by 1 October. The draft plans of the first seven Main
administrations were incorporated in the draft plan for the
Ministry prepared by the Planning Divison. The Planning Division
maintained an"overall pdliny supervision in the planning tune-
tion for the Ministry. It wan the: Planning Division's respon-
sibility not only to present a draft plan for the Ministry but
Also to see to it that any established government policy be fu.-
filled in the plan as a whole. For example, if the goverretent
decreed That the production of heavy chemicals be increased dur-
ing 1953, the Planning Division would be the organization in the
Ministry responsible for compliance with this governmental pro-
Vision. In addition to the draft plans forwarded' by the first
seven main administrations, the Planning Division alson,eceined
a.distribUtion balance from the Eighth Main Administration 04 a
eupPlyeenteneeneenrose Uho SUPP,74 DSVastaitM Aioo
naheial Department, in Close cooperation with the Ministry of
Penance and the Planning Diviston, drew up a financial plan for
the Ministry of Chemical Industry and submitted it to the Plane
nning Division.
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5. The Ministry's Eighth Main Administration, or the Main Adminis-
tration for Distribution, prepared a distribution balance-for
the Planning Division. This balance was a reflection of the .
needs of the Czech economy for chemical products and the ability
of the chemical industry to meet these needs. To obtain this
balance, the Eighth Main Administration consulted the supply de-
partments of those ministeries using chemical goods and learned
?. from them their estimated needs for chemical goods. It then re-
ceived from the Planning Division of the Ministry of Chemical
Industry an estimate of the extent to which the chemical indus-
try could meet these needs. In the process of arriving at the
'fdistribution balance, the Eighth Main Administration attempted
? to resolve any discrepancies between the needs of the Czech econ-
omy and the ability of the chemical industry to meet these needs
through discussions with the supply departments of other minis-
tries and with the Planning Division of the Ministry of Chemical
Industry. This distribution balance was then forwarded to the
Planning Division for consolidation into the Ministry's draft
plan.
.6. The Supply Department of the Ministry of Chemical Industry re-
ceived from the various Main Administrations in the Ministry
the estimated needs of their plants and factories for raw mater-
ials, sPare parts,, and supplies which had to be obtained from
other ministries .or imported from foreign countries. After com-
piling this list, the Supply Department conferred with the dis-'
tribution administrations, or sections, whichever the case might
be, or other ministries to determine the xtent to which estimat-
ed needs of the Ministry of Chemical IhdUttOycould be fulfilled.
For those products or materials which would have to be imported
from foreign countries the Supply Department referred to the
,proper foreign trade corporation, e.g., Chemapol, to determine
whether theta items could be iMPorted. Upon compiling i'llst,
of the items needed by the plants and factories of the Ministry
of Chemical Industry and the extent to'whiCh they could be sup-
plied, the Supply Department passed this list on to the Planning.
, Divilion for incorporation into the Ministry's draft plan.
It. After the Ministry's draft plah was completed by the Planning ;
Division it was submitted to the Collegium of the,. Ministry for
approval; I think it was supposed to be presented to the ,
011egium by 1 November. Upon Approval by the C011egium it was
sent,, under the Minister's signature, to the. Ministry of Stets
Planning for consolidation into the draft plan for the country.
I think the draft plan for the country had to be submitted by
the Ministry of State Planning to,the Council of Ministers by '
15 December to enable the latter body to approve it by 1 January,
So. far as I know the plan was never approved by 1 January'beT...
cause of delays in planning at the various levels. ,Approval by
the Council of Ministers wit practically a fOregona,certainty,
because the Council invariably accepted the draft plan .presented
by the Ministry of State Planning.' The approved plan was then '
returned through the same channels and levels as it was drafted,/
until each element of the Minittry received that portion of the
plan pertinent to it. Upon receipt of the approved plan from,
the Ministry Of State Planning, the Ministry distributed to each
main administration that portion of the plan which pertained to
it. Each main administration gave each factory that portion of
the pain pertaining to it. Each department and shop in the fac-
tory-received only its part of the plan.
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8. 'Once it had been approved the basic plan could only ,be ohanged
by authority from the next highest echelon. A factory might,
however, make internal changes in the plan; i.e., it might per-
mit one department or shop to increase its produOtion of a cer-
tain item and another to curtail production of that item, so .
long as there was no alteration in the factory's basic plan.
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Should the factory director, desire to change the basic plan,
however, he must receive permission from the head of his main
administration. Likewise, a main administration could not alter
its basic plan without permission from the Planning Division; it
might, however, make internal changes similar to those described
at the factory level. And the Planning Division could not alter
the Ministry's basic plan without the consent of the Ministry of
State Planning.
9. Starting with the planning in 1952 for the year of 1953, another
draft plan, apart from that of the Ministry, was requested by
the Ministry of State Planning. It consisted of a composite plan
of all the ?regions in Czechoslovakia. Each Regional National
Committee (Krajsky Narodni Vybor) prepared a draft plan for its
region, in which were included the needs of all consumers of
chemical goods within the region (the same was done for all other
segments of Czech industry). Apparently the reason for these
regional draft plans was to obtain a better picture of actual
needs than could be derived from the Ministry, whose draft plan
reflected only production capabilities. All the draft plans
prepared by the various regions were consolidated into one and
submitted to the Ministry of State Planning. Thus, the Ministry
of State Planning had both the draft plan of the Ministry of
Chemical Industry and the composite plan of all the regions.
Theoretically the Ministry of State Planning would accept one of
these two plans; I believe, however, it is more likely that at-
tempts would be made to extract the best features from each of ,
the two, draft plans and incorporate them in one. I think that
in the event Of a great ,discrepancy between any parts of the two
draft plans the one submitted by the Ministry would probably be
shown more consideration, inasmuch as it presumably would intlude
the maximum productivity, of the chemical industry and could not
be increased appreciably regardless of the needs presented by
the regions. Since this is a recent innoVation, however, I do
not know at impact it will have on the planning and production
of the chemical industry.
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