HUNGARIAN MACHINE TOOL AND ABRASIVES INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A004100700004-5
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: January 19, 2010
• Sequence Number: 4
• Publication Date: May 17, 1954
• Content Type: REPORT

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CENTRAL INTELLIGEF,cE AGENCY;.
INFORMATION REPORT
This Document contains information affecting the Na-
tional Defense of the patted States, within the mean-
ing of Title 18 ; Sections 793 and 794, of the U.S. Code, as
amended. Its tranamisefon or revelation of its contents
to or receipt by an unauthorized person Is prohibited
by law. The reproduction of this form is prohibited.
SECRET/CONTROL-U.S.OFFICIALS ONLY
SECUPITY {N OI{lvi, 1 C*
COUNTRY Hungary/Satellites/USSR
SUBJECT Hungarian Machine Tool and
Abrasives Industry
REPORT
DATE DISTR. 17 May 195 4
NO. OF PAGES 4
REQUIREMENT NO. RD
REFERENCES
f333177
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
1. Production
Machine tools in Hungary are produced by the following factories:
Loc
ati
on
Yeariv &oductjo;Q z. _.y
Rakosi Matyas Machine Tool Works
Bud
ape
st (Cse
pel)
160-180Turret lathes
480-540.Universal milling
machines
300-360"Large radial
drilling machines
240-300 Medium radial
drilling machines
240-300 Heavy plate cutting
shears
7
(P
ers
Milling
for spec
onnel 2,
mac
ial
104
hines
purposes
-?2,200)
Meal G6Qds and Mfch .ne Tool Factory
Bu
dape
st
300
Turret l
ath
es
(Femaru es Szerszamgepgyar)
360
1000 mm.
la
thes
(P
erso
nnel 35
0-4
00)
Eszt
ergomi
Mac
hine To?
l F
I.etory
Es
zter
gom
140-1
80
Planing
mac
hines
(Esz
tergomi
Sz
erszAmge
pgy
ar)
(
500 mm.
)
140-1
80 L
athes (
1,0
00 mm.)
(Personnel 400)
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STATE X ARMY NAVY I X AIR a FBI AEC
(Note Washington Distribution By 'W', FNIA %y 11411"
RR Ev
16
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Di i~gygr Machine Factory
(Diosgyor Gepgyar)
Kobanya Machine Togl Factory
(K~ib~a Szerszamge'pgyir)
Nagymaros Tools Factory
(Nagymaros G4pgydr)
Dic sgyor
Budapest
Nagymaros
Lathes of a light
design
(Personnel 400-450)
(Personnel IOO-125 )
2. Destination of products.
a. About 50% of the machine tools produced are destined for export and the rest for
internal use. Some types are for export exclusively.
b. Of the exported machine tools about half are destined to the USSR, Other des
tinations are mainly the Satellite countries and, for some types,, Western
European consignees.
3. Imports,
a. Hungary is short of the following types of machine tools which she can obtain
only by importing:
(1) Long lathes (12 m. and above),
(2) Planing machines'(15 m. and above),
(3) Tooth cutting machines (none are produced in Hungary),
(4) Tooth grinding machines (none are produced in Hungary),
(5) Circular polishing machines (none are produced in Hungary),
(6) High efficiency milling machines.
Hungary is finding it difficult to obtain imports, partly as a result 2bAl
of a lack of hard currency and partly because of Western controls. (For instance,
a precision lathe for turning rotating parts of electro enerators has been on
order in Switzerland since 1945 and is still undelivered,
c. From the USSR very, few machine tools are imported, and those that are, do not
include precision machine tools. Approaches have frequently been made to the
USSR for supply of vital Hungarian deficiencies but excuses are always made,
the main one being that all production is according to Five-Year-Plan and that
allowance has not been made in the current plan for the satisfaction of isolated
requests for individual machine tools. Why these requests should not be incor-
porated in Five-Year-Plan Schedule is left unexplained. Very large equipment,
simple in nature and not Important in application is occasionally supplied for
propaganda purposes to Hungary,, to impress the ordinary man-in-the-street.
The complex or special purpose machine tools really needed by Hungary, which
would be "hidden away" in factories are not supplied. It is doubtful whether
the USSR would be able to supply all those required even if it wished to do so.
Trade is very much the other way,, the USSR taking 25% of Hungary?s production,
including all the large., heavy cutting tools.
4. Plans and Projects.
a. The RAkosi Maty&s Machine Tool Works is planned to increase its capacity by about
100%. The building of new shops has been under way for some time,
b. The general plans for the industry are directed by Moscow through the medium of
the International Organization nor Mutual Economic Aid, Engineering Division,,
Machine Tool Section, (Nemzetkozi Gazdasagi Kapcsolatok, or NGK).
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30 Heavy lathes
(2 9000 -,2, 500,mm. )
12-2/+ Special purpose
heavy machine tools
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c, This organization has worked out plans for East Germany, Czechoslovakia,
Poland, Hungary and Rumania, by which each of these countries is allotted
tasks which complement those of the others. Meetings were held in May 1953
in'Prague, Budapest and Warsaw. (The Hungarian delegation for machine tools
was under the leadership of Dr. Ferenc Lettner who is subordinated to Imre
Karcag, leader of the Hungarian branch of the International Organization for
Mutual Economic Aid),
d. The plans under discussion. extend to the year 1960. They lay down for each
country the production quotas, the types, the quantities that have: to be
,,export6d' and to where, the introduction of new types of machine tools, the
expansion of plants and the erection of new plants, Final plans have not yet
been approved, and it is open to.question to what extent consultations between
delegations of Satellite countries have any true significance, and whether all
vital decisions are. not laid down ultimately by Moscow.
e. It is considered that plans, as currently envisaged, will not be fulfilled
because of the recent slowing down of investment programs for heavy industries.
f. The following countries participate fully in NGK.:l
Czechoslovakia, Hungary, Poland and Rumania.
The USSR is not an official participant but sends "an observer" to meetings.
g., Plans for specialization in the production of particular types of machine tools
by certain countries have been drawn up. These are very generally as follows:
(1) Czechoslovakia to specialize in very heavy and automatic machine tools;
(2) Hungary would make medium machine tools;
(3) Polandr upi ` ie - .ot'Imown
() Rumania to make an insignificant contribution to this plan since she has not
d developed machine tool industry.
h. The ' above plans were formulated by the four above-mentioned countries in the
light of "suggestions" by the USSR and by virtue of subsequent "instructions"
which they each received'to concentrate on the production of certain types.
i, The Satellite countries co-operate in the design and development of certain
machine tools, .(For example a 5,00? tons hot-press for railroad wheels and
boiler walls, to the design and;. development of which Czechoslovakia, Eastern
Germany and Hungary all contributed).
j, Eastern Germany is in a special relationship with the USSR. Although not
represented in NGK, it receives instructions resulting from the latter?s
deliberation: The degree of direct control of the USSR is greater with respect
to Eastern Germany than to any other Satellite, and in a sense the industrial
collaboration between the two is correspondingly more intimate.
5. Administration,
The Directorate for the Machine Industry in the Ministry of Metallurgy and Machine
Industries governs the production of all machine tools, small tools, engines and
conveyor-belt machinery; t ,4e factories are subject to this Directorate. The only
exception to this is the Rikosi Maty4s Machine-Tool plant.. which is administered
directly by"the,RAkosi MAtyas Trust4
6. The Hungarian Abrasives I_nduot
a. The only known Hungarian producers of abrasives are:
(1) Solus Grinding Wheel Factory (Csiszold1cbronggyar) Liget utca 11, Budapest
X. Produces grinding -wheels of corundum. Abrasive papers are also pro-
duced.
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(2) Grinding Wheel and Iron Frameworks Factory (Csiszolokorong es Vasszerkezet -
gyar)0 Offices Csurgoi ut 28, Budapest XI; production at Albert-utc.a 10,
Budapest XIX,. Wheels and abrasive papers are produced.
b. Abrasive linen of good quality is imported from Czechoslovakia?
c. Imports of grinding wheels are obtained where possible on the black market.
They consist mainly of spasmodic imports via Austria,
Tool Tips Productionb
a. Tool tips of "1idia" or, cobalt aowder are produced by Kobanya Foundry for I:ioa_,
and Steel (Kobanya Vas Es Acel t~ntode or KOVAC),
b. The cobalt powder was formerly obtained from Yugoslavia bat is now imported,
from the USSR,
c. This plant also produces acid resisting steels and is the sole source in
Hungary of magnetic steel for instruments.
la Comments Presumably) (referring to the organization 25X1
commonly known in the West as the Council of Economic Mutual Assistance (CEMA) - 25X1
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