SOVIET CONTROL OF DANUBE SHIPPING

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00810A006900410005-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 21, 2016
• Document Release Date: March 21, 2008
• Sequence Number: 5
• Publication Date: June 10, 1955
• Content Type: REPORT

Approved For Release 2008/03/21 : CIA-RDP80-0081 OA006900410005-9
CENTRAL INTELLI AGENCY REPORT
INFORMATION REPORT CD NO.
QD JNM . Austrta/b=
SUBJECT Soviet Ceattol of Danube Shipping
PLACE
ACQUON
DATE Or
INFO,
DATE DISTR. 10 June 1955
NO. OF PAD.,, 2
NO. OF ENCLS.
SUPPLEMENT TO
REPORT NO.
THIS IS UNEVALUATED INFORMATION
The Soviet DDSG Shipping Coaipanyw is uu&r 12", neneral supervision of the Soviet
Ministry for Inland Shipping Outside the USSR, with headquarters in Moscow. The
person who handles all nautical matters for this Ministry is Kuprienov (fnu),
believed to be a deputy minister; he is authorized to make decisions outside of
Moscow without prior clearance from the Ministry-1 This Ministry formerly had
jurisdiction over the Soviet Interests in Sovrom and Meszhart, and still controls
the S DO (sovietkoye Du aiskaoye Gosudarstvennoye Parokhodstvo) and Inflot, the
Soviet Shipping agency with headquarters in Odessa and branches in Bucharest and
Budapest. The director of the Soviet DDSG is Ivan Xononov.2
2. The Panning Section of the Soviet DDSG, which is entirely staffed with Russians,,
submits at the end of the second quarter of each year a budget estimate to
Moscow. Before the budget is submitted to Moscow, the planning sections usu&lly
seke cuts in the estimates submitted by the various departments of the Soviet
DDSG. The one Soviet DD6G department whose budget man be changed by Moscow only
is that which handles personnel strength and wages. After Moscow has approved
the budget, an account for the approved yearly expenditures is set up by the
Soviet Military Bank in Vienna, in Austrian schillings. Once the account is
established, disbursements within the amounts authorized for each major item
may be made. To obtain approval from Moscow for budget amendments requires
several months. Approval to transfer surplus amounts from one item of the
account to another, however, takes only one month.
3. The Soviet DDSG is not paid in cash for hauling goods to the USSR or Satellite
countries, but is credited with its earnings under a clearing arrangement with
Sovfracht, whose headquarters is at Moscow. For example, the Soviet DDSG is
debited about 60,007 to 70,000 schillings when another company's tug hauls an
empty DM barge from Vienna to Beni . The barge returning from Beni to. Runpry
with a full load of bauxite earns a credit of about 100,000 to 120,000 schillings.
At the end of the year, Sovfracht clears and balances all transactions between
Soviet-controlled companies, e.g. Inflot, Soviet DDSG and SDGP, as well as
participating companies, e.g. Wthsrt and Mavrom. Sovfracht calculates all trans-
actionsin rubles, at a rate established separately for each currency involved.
The Sovfracht clearing rate for Austrian schillingo is two schillings to one ruble,
CLASSIFICATION
STATE
ARMY
S-E-C-R-T-T
Approved For Release 2008/03/21: CIA-RDP80-0081 OA006900410005-9
 Approved For Release 2008/03/21: CIA-RDP80-0081 OA006900410005-9
PA# 2
which is believed to be a rough approximation of purchasing per parity.
k. As of April 1955, the Soviet WSO was the' only shipping co." allowed to
earn Schilling balances; all others were Instructed that they wolslt have to
accept ruble credit bounces with Sovfracht. Mahart, which would not accept
this arraaageeent, has offered to rest its tantiers to the Soviet EDSG for
use in the Vieni -Asni traffic. Eurasd sohilliog credits fran this rental
would be'earmarked for Nabart repairs at the ~Gorneuburg shipards. Ivsm
Kononov, of the Soviet MSG,, visited Budapest an 8 and 9 Apr-i1, to meWtiate
the details of this proposal, but it is ramor'ed that the matter will not be
further pursued in view of the probab]7 abort duration of Soviet control over
the Soviet 11)0G.3
(k ..t. In 1950, ft rianov was Soviet director of the $itT in Buccharest.
thereafter, Kumrianov went to Moscow to take his yresent Dosition.F
Comment. On about 1 April, )hart had completed payment to the Soviet
for sizable expenditures in the construction of the Mahart vessel "Kcumroe"
and a floating repair dock recently completed at the Kornsubvarg shipyards.
lhM rt wants the borneuburg shipyards to install the actor in a sister ship of
the "Ka auroa", whose bull is being completed in Budapest. )hart estisted that
it would spend, during 1955/56., several million echillings for repair and construction
work at Korneuburg.
Approved For Release 2008/03/21: CIA-RDP80-0081 OA006900410005-9