COLLECTION OF FERROUS AND NONFERROUS METALS, MINISTRY OF METALLURGY AND CHEMICAL INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A001600960004-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: November 4, 2009
• Sequence Number: 4
• Publication Date: July 8, 1953
• Content Type: REPORT

Sanitized Copy Approved for Release 2009/11/04: CIA-RDP80-0081 OA001600960004-5
CENTRAL PNTELLIGENCE AGENCY
INFORMATION REPORT
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 unauthorised person is prohibited
by law. The reproduction of this form is prohibited.
SECRET/CONTROL - U.S. OFFICIALS ONLY
SECURITY INFORMATION
SUBJECT Cohectiorn of Ferrous and Nonferrous
Metals, Ministry,of Metallurgy and
Chemical Industry
PLACE ACQUIRED
REPORT
DATE ((DISTR. 8 July 1953
NO. OF PAGES 2
REQUIREMENT NO. RD
REFERENCES
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
1. After nationalization in 1948 the metallurgical works of Hunedoara, Otelul Rosu
(Ferdinand), Nadra , Resita, Roman, Copsa Mica, 23 August (Malaxa)., Targoviste, and
IAR Stalin (Brasov) were incorporated in the State Enterprise for Metallurgy (IMS).
2. In 1949 the Of'ftde. `fcx"Metallurgical Processing (Oficiul Industriei Metalurgice
Prelucratoare - OIMP) was created as successor to IMS, and two months later this
was changed to the Center for Metallurgical Processing(CIMP). One month later
this, in turn, became the Central Department for Metallurgical Processing (DCIMP).
In 1950 all metallurgical works and heavy industries were placed under the Ministry
of Metallurgy and Chemical Industry.
3. The Hunedoara, Resita, and Otelul Rosu (Ferdinand) works are under the Foundry
Department of the Ministry of Metallurgy and Chemical Industry.
4. The Metallurgical Department of the Ministry of Metallurgy and Chemical Industry
has 11 sections$ of which those concerned with heavy industry, light indTstry,
and special orders (armaments) are the most important. The IMS Roman, Laminorul
(Bucharest), Copsa Mica (Cugir), Gh. Gheorghiu Dej (Targoviste), and Pirotehnica
(Dudesti) factories are under the Special Orders (Armaments ) Section.
5. The Section for collection of ferrous and nonferrous metals has.&bout.160 employees
in the Ministry and large numbers in both the district centers and factories.
6. Ludovic Farkas head 25X1
7.
The Section for collecting ferrous and nonferrous metals has the additional res-
ponsibility for control and utilization of all metal reserves stored as raw materials
in factories. It is authorized to examine the stores held by every factory and to
determine whether a given quantity of metal is needed for the fulfillment of the
factory's plan. All surplus metals must be sold to the Ministry at the price which
appears in the factory's books.
SECRET/CONTROL - U.S. OFFICIALS ONLY
(Not.t Washington Distribution Indicated By "X"I Field Distribution By
"#".)
Sanitized Copy Approved for Release 2009/11/04: CIA-RDP80-0081 OA001600960004-5
 Sanitized Copy Approved for Release 2009/11/04: CIA-RDP80-0081 OA001600960004-5
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8. Scrap iron is collected and sent to the iron works at prices calculated by the
Ministry. If a factory needs some of its own scrap, it must buy it back from the
Ministry at amended prices, not those shown in its own books. Scrap which appears
on the books of a factory as "written off" at a value of 0.04 lei per kilogram can
be collected by the Ministry at this price and resold to other factories at a price
which includes the Ministry's expenses or at the market price. Permanent super-
visors are stationed with every enterprise, and officials are sent to factories in
all 28 districts of Rumania to make inventories.
9. Since three different ministries claim scrap, each enterprise must make out uhree
different lists of its scrap material: one each for the Ministry of Metallurgy,
the Ministry of Finance, and the Ministry of Armed Forces.
10. Waste accruing from production must be sold to the Ministry, which resells it.
A grenade-fuse factory, for example, is not allowed to remelt its bronze shavings,
but it must deliver them to the Ministry at a fixed price.
11. Stocks on which an enterprise receives a loan or which are pledged to the Ministry
for taxes become the property of the Ministry of Finance. Stocks which were origin-
ally captured enemy war material or materials requisitioned by the War Office are
claimed by the War Office.
12. Following a dispute with the Ministry of Armed Forces and the Rumanian Railroads,
it was decided at the end of 1951 that the two institutions would collect their
materials separately and deliver them to the Ministry, which alone would be in touch
with the foundries.
13. Most of the material collected is forged iron and steel. Only 40 per cent' is cast
iron and, at the most, .5 per cent of nonferrous metals. In 1951, 280,000 tons of
forged and cast iron were collected and distributed,
14. The annual production plan is worked out with regard to the type, quality, and
quantity of article to be produced. Factories try not only to fullfill their plan,
but to be able to announce in the press that they have exceeded it. They sometimes
surpass the plan in types made, but not in either quantity or quality. The last
two deficiencies are usually kept quiet, and supervisors who point them out are
usually in trouble with the Party.
15. The Otelul Rosu Factory was to manufacture T-iron, U-iron, and double T-iron in
certain specified dimensions. The factory produced only the largest dimensions,
which were the easiest to make. The lack of smaller sizes later held up production
in the factories needing them, and these factories could not fulfill their plan.
16. The Soviets have delivered crude castings and crude iron in large quantities for
manufacturing machine parts which they had ordered. They have later refused to
accept the finished parts, stating that the material was of inferior quality. They
ordered the factories to accept the castings, but to use their own materials to ful-
fill the Soviet order. The factories were forced to comply and had to use the
Soviet castings as scrap for remelting.
17. The plan for 1952 calls for collecting 705,000 tons of steel and forged iron,
112,000 tons of cast iron, and approximately 1,500 tons of nonferrous scrap. Non-
ferrous scrap would include copper and copper scales, bronze, brass, hard and soft
lead, tin, zinc, and aluminum. Steel and forged iron scrap would be collected as
follows: 200,000 tons by the purchase of British Navy units remaining at Constanta
(this was accomplished in February 1952); 200,000 tons from old Rumanian Railroads
rolling stock, 25,000 tons from captured enemy war material and stores purchased as
scrap from the Ministry of Armed Forces and 280,000 tons to be collected in all 28
districts of Rumania.
SECRET/CONTROL - U.S. OFFICIALS ONLY
Sanitized Copy Approved for Release 2009/11/04: CIA-RDP80-0081 OA001600960004-5