ECONOMIC COOPERATION AMONG SATELLITES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A005100800001-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 20, 2016
• Document Release Date: July 17, 2007
• Sequence Number: 1
• Publication Date: October 21, 1954
• Content Type: REPORT

Approved For Release 2007/07/17 :CIA-RDP80-00810A005100800001-9
INFdRMATION REPORT
This material contains lnforcnatlon affecting the Na-
tional Defense Of the United States within the mean-
ing of Lhe Eepibnsge Laws, Tltle 18, V.S.C. Secs. 793
and 794, the transmission or revelation of which in
any manner to sn unauthorized person u prohibited
by law.
SECRET - U.S. OFFICIAIS ONLY
COUNTRY Hungary/ Ee~at Germany .
SU9IECT Economic Cooperation Among Satellite's
REPORT
DA"fE DISTR.
NO. OF PAGES
3
REQUIREMENT NO. R~D
REFERENCES
TM! SOURCE !VALUATIONS IN fN15 RE-ORT ARE DEFINITIVE,
TM! A/-RAISAL OF CONTENT IS flNiATIVE.
(FOR KEY S!E R!VlRSq
21 October 195+
1. Foreign Trade Corporations.
a. Sritellite fore~.gn-trade corporations are regularly exchanging current
. reports of their transactions on the "capitalistic market" in particular
the sales and purchase prices on these market's.
b. On 20 January 19511 CentrOkomiae, Czech foreign-trade coporation for
foodstuffs., sent Monimpex, Hungarian foreign--trade corporation for wine,
tobacco, and foodstuffs, its periodic monthly report on beer and wine
sales and purchases for December 1953. At the same time, Centrokomiae
complained that it had. not been receiving regularly Monimpex's current
reports.
c. In February and March 19511lMonimpex was in frequent contact with the
Deutscher Innen-und Aussenhandel - Nahrung, the East German for?ign-
trade corporation for foodstuffs:
(1) On 211 February Monimpex informed the Garman corporation that it
had bought a quantity of "Semillon" wine, 1952 crop
(2) On 26 February Monimpex criticized the Garman corporation for having
sold China tea at a price lower than th? current world market price.
The Hungarian corporation complained that the German corporation
had refused its requests for tea several times, stating that its
stocks were sufficient only for local demands. Monimpex emphasized
that "our corporation can only be of practical value if we can there-
by create better sales possibiliti?s and be in a position to take
advantage of the fluctuations of the capitalistic market."
(3) ~ 5 March 195!} Monimpex sent the figures on its purchases of
tobacco in January and February of 19511 to the German corporation.
SECRET - U.S. OFFICIALS ONLY
STATE-ARMY X NAVY? x AIR x FBI r AfiC
Approved For Release 2007/07/17 :CIA-RDP80-00810A005100800001-9
 r
Approved For Release 2007/07/17: CIA-RDP80-00810A005100800001-9
SECRET - U.S. OFFICIALS ONLY 25X1
2. ~cial Committees.
a. Tha present unsatisfactory state of economic cooperation between Communist
countries has led to the creation in April 195l~ of special committees to
deal with such matters. The following committees were established in
Hungarya
(1)
The Committee for Economic Cooperation (Gazdas~gi Egy!lttm8klfd~si
Bizottsa~g) is the top-level committee which formulata~ Hungarian
policy in the matter and keeps close contact with the correspond-
ing cooperation committee of the other Com~~n~st countries. It is
headed by Ern!! Gerd, Deputy Prime linister. The committee consists
of one representative from each ministry, the National Planning
Office (Orsztgos Tertrhivatal), and the economic department of the
Communist Party. The ministerial representative is either the
minister, his deputy, or another high official specifically
appointed. Istv~#n Fries , who was born in Nagyv~rad (Oradea )dare,
Rumania), is believed to be the Party representative on this
committee.)
(2) An Inter-Departmental Committee for Economic Cooperation (Gazdas~gi,
Egy!lttrnilkdd6si T~rcakdzi Bizotts~gj is formed in each ministry
under the chairmanship of the minister, his deputy, or another high
official specifically designated by the minister, These committees
consist of, in addition to the chairman, a representative of the
National Planning Office from the particular depar~ent concerned,
and two more- members.
(3 )
The Professional Committees for Economic Cooperation (Gazdas~gi
Egytittmtikdd~si Szalamai Bizotts~g) consists of the department chief
of the ministry of the specific branch of industry, a representa-
tive of the linistry of Foreign Trade, a representative of the
National Planning Office, and a technical expert as the representa-
tive of the specific branch of industry.
b. Committee meetings are held in utmost secrecy, no secretary attends the
meetings; and the committee members make minutes of the proceedings
after the meeting. There is at least one professional committee of a
certain branch of light industry which calls its meetings by oral notifica-
tion only.
c. As a.matiber of course all committee members are chosen from among the
most trusted Party. members, except for those outstanding experts xho,
while not Party members, are .needed and appointed to the professional
committees.
d. At one meeting of a professional committee, the chairman revealed that
the never Five-Year Plan, scheduled to be put into operation in 1956 by
all Communist countries, will be based on the experience and accomplish-
ments of the committees for economic cooperation up to that time. The
chairman also disclosed that one task of the committees is to ~rork out
and implement plans for supplyin goods to border regions by the ad~acant
friendly country (and vice versa in those cases when the supplying
country has reached a higher Level of industrialization than the receiving
country.
3. Committee for Economic Cooperation i.n the Food Industry,
a. One of the ministerial committees which the higher economic bodies have
establishe~is the Conun3.ttea for Economic Cooperation in the Food
Industry ( elmiszeripari Egylittsntlkdd~si Bizotts~g). This committee
has, in turn, established sev@ral,p;rofessional committees each for a
different branch of the food industry.
SECRET - U.S. OFFICIALS ONLY
Approved For Release 2007/07/17: CIA-RDP80-00810A005100800001-9
 1
Approved For Release 2007/07/17 :CIA-RDP80-00810A005100800001-9
SECRET - U.S. OFFICIALS OI~TLY 25X1
-3-
b. The Professional Committee for the Beer Industry (S~lripari Szakbizottsag),
under the chairmanship of Jen+~ Balogh, has already held three meetings.
At its third meeting, ~rhich took place in early I[ay 195l~, the committee
drex up a series of proposals to submit to the planning department of
the Ministry of Food Industry. The proposals deal frith the present
production capacity of the local beer industry against the increasing
demand for beer. It is proposed to offset this increasing demand by
close economic cooperation xith neighboring Communist countries and by
additional investments in the local beer industry.
Approved For Release 2007/07/17 :CIA-RDP80-00810A005100800001-9