URAL FACTORY FOR MEDICAL INSTRUMENTS AND INDUSTRIAL VENTILATION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A005400320006-4
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 20, 2016
• Document Release Date: July 26, 2007
• Sequence Number: 6
• Publication Date: November 17, 1954
• Content Type: REPORT

Approved For Release 2007/08/05: CIA-RDP80-0081 OA005400320006-4
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY Bulgaria
SUBJECT Ural Factory for Medical Instruments DATE DISTR.
and Industrial Ventilation
This is UNEVALUATED
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
(FOR KEY SEE REVERSE)
1. The Ural factory in Sofia was established in 1947-48 by the merger of two 25X1
industrial enterprises, one producing medical instruments and equipment and
the other air-conditioninsT its for factories, through the initiative and
pressure of the Union of Soviet''-Citiieiis'_ (Suytiz 'Sovietski Gi .hdani)
in Bulgaria. Both enterprises had been operated under the private ownership
of two Soviet citizens, emigrants wbo lived in Bulgaria and had Soviet
passports. In order to avert the nationalization of their plants, they agreed
to the proposed merger and the subordination of the factory to the Association,
which was to collect for its own treasury 10 percent of the factory's gross
turnover. The Association took the factory under its protection, ensuring its
smooth operation in the future by enjoying all the privileges and the
preferential treatment accorded by the Bulgarian authorities to Soviet
enterprises.
2. The combined factory operated the two separate departments with a joint
administrative unit and the joint managements of the two owners. The medical
instruments plant, first located in Sofia, Osogovo 6, was later moved to
Sofia, Ul. Orlandovtsi.'. The industrial ventilation plant, first located in
Sofia, Orkhaniska 72,wa later moved to Sofia, Panayirishte 6-8. The offices
were first located nSofia, Svetasofia 4, presently occupied by the industrial
department of the Union' .. of'Soviet Citizens, but were also moved to
Panagyurishte 6-8,
3. Control over the factory's production and finances was first exercised by the
Soviet authority which was in charge of all Soviet (formerly German) property,
the Upravlenie Soviet`ski Imushtestvo. In 1950, the factory ceased to be sub-
ordinated to this authority and became directly connected with the Bulgarian
supreme Planning Commission (Planova Komisiya). In contrast with Bulgarian
enterprises, the'factory has no dealings with the industrial ministries, which
cannot interfere with the factory's business. It submits the production plans
and raw material requirements directly to the Planning Commission, which
approves the necessary allocations of raw materials through the respective
import company or a wholesale supply agency.'
SECRET--U.S. OF 'ICIALS ONLY
fnaa~1, x
This material contains information affecting the Na-
tional Defense of the United States within the mean-
ing of the Espionage Laws, Title 18, U.S.C. Secs. 793
and 794, the transmission or revelation of which in
any manner to an unauthorized person is prohibited
by law.
NO. OF PAGES 3
REQUIREMENT NO. RD
17 November 1954
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 Approved For Release 2007/08/05: CIA-RDP80-0081 OA005400320006-4
SECRET-U.S. OFFICIALS ONLY
The main products of the medical branch of the factory are the following:
electrical sterilizers, pneumothorax machines, surgical, gynecological and
dental instruments, and hospital equipment such as special beds, operating
tables, and cabinets. This branch also turns out packings, from copper or
asbestos sheets, for cylinder heads of various types of automobiles.
5. The production plan of the medical branch, 25-30 million levy in 1948,
reached the amount of 120 million leva in 1952. The approximate production
of figures of the main products in 1952 were as follows: sterilizers, to be
heated by electric power and by flame, 1000 to 1500 each; approximately 2000
steriltromes; 1000 metal boxes for injectors; 50 operating tables; 3000
special hospital beds; etc. For these products, as well as other items
produced in small quantities, orders amounting to 10 to 15 million leva were
received from the Ministry of Defense. These included 200-250 extension tables
for fracture cases, 500 sterilizers (flame-heated), 20 operating tables, and
200 stretchers. The consignments were always collected by military trucks,
with an accompanying officer who was in possession of the necessary authorization
from the Ministry. Informant believes that since 1952 the production of the
medical branch of the factory is still on the increase.
6. The industrial ventilation branch of the factory produces the following machines:
air-conditioning machines for factory halls, industrial ventilators, radiators,
deflectors, and heating installations for factories. This department's
production plan for 1952 was 150 million leva. Its main customers were the
Gorubso mining enterprise in Kurdzhali, which bought 20 boilers of 3000_5000
liters capacity, 40-50 calorifiers, ventilators, deflectors, etc--; Sovbolstroy,
the joint Bulgarian-Soviet construction enterprise; the Pomuchno Obedenenie;
and other central industrial agencies.
7. The total number of workers employed in the factory in 1952 was approximately
250. The medical branch employed 80 to 90 workers, and the industrial
ventilation branch approximately 150 workers. There were 10 to 15
administrative employees in the central office and both branches.
8. The raw materials used by the factory, as allocated by the Planning Commission,
were received from the same wholesale distributors and under the same terms
as supplied to Bulgarian factories. The wholesale prices paid by the factory
in 1952 were the following:
a. Sheet iron (0.5 to 4 mm.)
b. Tin-coated sheet iron (up to 2 mm)
c. Copper sheets (0.2 to 0.25 mm)
d. Brass sheets (0.3-1.5 mm)
e. Iron bars (6 mm.-18mm)
f. Bronze (for smelting)
g. Asbestos sheets (up to 2 mm)
h. Roller wire
i. Brass wire
Leva per kg.
70-75
80-85
420
350-400
45-55
320
220-240
85
350-400
When the allocated amounts were insufficient, materials were procured on
the free market for prices two or three times higher than the above, and
for still higher prices on the black market. Steel wires were unobtainable
throughout 1952 and held up the production of several articles.
10. According to Government regulations, the profits allowed to industrial
enterprises were divided into several categories. The medical branch of the
factory fell into the category which provided for a profit of three percent,
while the industrial ventilation branch of the factory was allowed a
profit of five percent. Up to a turnover of 130,000 leva, the enterprise
is exempt from taxes; from 130,000 to 200,000 leva the taces amount to
eight percent of the turnover; and may reach as much as 60 percent when
the turnover is 500,000 leva or above.
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11.
SECRET--U.S. OFFICIALS ONLY
11. The account books of the factory were always falsified in order to conceal
the large turnover and evade the government taxes. As a quasi-Soviet
enterprise, government control was either non-existent or very perfunctory,
the only supervision being exercised by the inspector of the Union of Soviet
Citizens, who was also the head of the Union's industrial department. He was
fully aware of the falsification of the account books, but there was a silent
agreement in this respect. Consequently the official turnover of the
factory was not more than half its real turnover. The total amount of taxes
paid by the factory in 1951 was not more than 780,000 leva, which is out of
proportion to the extent of its business. During 1950-52 the treasury of
the Union profited approximately 30 million leva (in old currency) from the
factory.
12. On 10 May 1952 the Union canceled the agreement with the owners of the factory
and proposed a new one by which the whole property, including the large
profits accumulated in the course of the last years and re-invested in the
factory, was taken over by the Union. The actual net profit of the factory
between 10 May and 31 December 1952 was 12 million leva. The factory now
operates under the full ownership of the Union of Soviet Citizens.
SECRET--U.S. OFFICIALS ONLY
Approved For Release 2007/08/05: CIA-RDP80-00810A005400320006-4