ELEKTROSRBIJA: ELECTRIC ENTERPRISE FOR SERBIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80T00246A033200680001-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 111
• Document Creation Date: December 22, 2016
• Document Release Date: May 3, 2010
• Sequence Number: 1
• Publication Date: March 15, 1957
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY Yugoslavia
DATE OF INFO.
PLACE ACQUIRE
m0Sf'ACQUXRED
"Blektroszibija": Electric
Enterprise for Serbia
This Document contains Information affecting the Ns-
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 unauthorized person Is prohibited
by law. The reproduction of this form is prohibited.
REPORT
DATE DISTR. 15 March 1957
NO. OF PAGES 1
REQUIREMENT NO. RD
REFERENCES , /11WO
THE SOURCE EVALUATIONS IN THIS REPORT ARE DEFINITIVE.
THE APPRAISAL OF CONTENT IS TENTATIVE.
108 page document in English, translated fr
eerbo-Croatian, a study of the "Elelrtresrbl3a" firm. This firm is' an
electric enterprise of the People's Republic of Serbia with headquarters
STATE IARMY I INAVY AIR
FBI
LAEC
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Information on Yugoslavia Translation from Serbo-
Croatian
Subject: The Electric Enterprise
ELEKTROSRBI JA, Located
in Belgrade.. Brankove ulica 30
This report related to the organization and the development
of the above mentioned enterprise is dividid as follows:
1) History of the creation of the enterprise page 3
2) Situation of the enterprise on the day of its
creation 9
3) Organization of the enterprise 13
4) Property of the enterprise 69
5) Activity of the enterprise 72
6) Foreign activity of the enterprise 76
7) Various Information:
a) Relations of the enterprise with the authorities
and the superior economic organs 92
b) The autonomous direction of the workers in the
enterprise 96
c) The Party organization and the Syndicate within
the enterprise. 100
d) The competition with other enterprises, and the
fight for the ioarket.' ' 102
Translator's Reaark .
The chapter nr. 3, concerning the organization of the enterprise,
is illustrated with six Aisamwn- and in glib d as follows:
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The Planning Bureau (Projektantski biro) page 25
The Constructions or Technical Sector (Izgrednja
ill Tehnigki sektor) 33
The Sector (Department) for Local Electrification
(Lokalna elektrifikacija) 43
The RIPAEJ Factory of Electric Equipment 45
The Sector for Vehicles and their Maintenance
(Pogon za Remont i Saobre6aj) 52
Accounting (Bookkeeping) Sector (Privredno recunski
sektor) 56
The Commercial Sector (Komercijalni sektor) 60
The Import-Export Sector (Uvozno izvozni sektor) 63
The General Sector (0p9ti sektor) 66
The chapter nr. 7, which deals with various information, has,
beside the four subdivisions listed under a), b), c), and d), a fifth
one concerning the organization of the Party and the UDB within economic
enterprises in general and E 1 ekk t r o a r b i j a in particular. in
@vbdivision is to be found on page 105.
page 108.
I have made a final remark at the end of this report, on
The words in parenthesis are either synonyms, explanations,
or completions of sentences which I have added to the end to
clarify as much as I could the original text.
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1) H i s t o r.v of E L E B T R O S R B I J A ' e C r e a t i o n
EJEKTROSRBIJA was formed (created) in March 1950.
This enterprise builds conduits (sic - dalekovodi - Tr.rem.: This word does not
exist in dictionaries, and it seems that it actually means electric lines), transforming
stations (trsfostanice - Tr.rem.: This seems to be an abbreviation of transformatorske
stanice which transform the electric current from a high to a low potential, or vice-
versa), (takes care of) the local electrlrification, projects and produces electric
equipment.
In order to have a clear picture (of the enterprise), we must recall that the
Yugoslav economy was highly centralized at that time, and that the (various) enterprises
were managed, according to their importance, by different ministries (secretariats).
So, for instance, the electric industry of Yugoslavia was administered by the Federal
Ministry of Electric Power (Savezno ministaratvo elektroprivrede, and various re-
publican (local) ministries of electric power.
The enterprise ELEKTROSRBIJA was created primarily because of the necessity to
bring electrification in step with the general development of industry, and second,
because decentralization was inaugurated at that time; the aim of decentralization
in the economic field was to form (organize) large and strong enterprises which
would be able to cope themselves with the multiple problems arising in the economy
(industry), and here, specifically, in the field of electrification. The authorities
had come to realize that by managing enterprises from above and from one single
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es~s.risbie center, a too large bureaucratic apparatus had been created; this
bureaucracy hampered the development of the initiative of the lower echelons;
thus, very often, necessary interventions cane too late, causing great damages
in the field of electrification; for instance, because of ktdost supplies
arriving togtate, 4disss electric power has been often out in electric centrals
and conduits, etc., or, for the same reason, it has not been possible to plan
correctly the construction of various objects in the electric industry.
The electric industry of Serbia was administered until the beginning of
1950 by the Federal Ministry of Electric Power; at that time, however, the
Republic of Serbia has assumed the management of all the electric centrals located
on her territory, and has proceeded to organize gradually the whole matter.
Consequently, the General Direction of Electric Industry for Serbia
(Generalna direkoija elektroprivrede za Srbiju) has been founded, headed by a
general director with the rank of minister (Minister - Generalni direktor);
later, this Direction has been transformed into a common Direction of Electric
Power (Direkoija elektroprivreds). It is at this moment that ELEKTROSRBIJA has
been organised.
ELEKTROSRBIJA consists (is composed) of the following enterprises :
.aee't. &k4"
1) ELEKTROISTOK (ELECTRO-E&ST), which builds conduits (dalekovod) and
transforming stations; this enterprise had 650 workers and functionaries;
2) ELEKTROPROJEKT, which makes plans (projects) for the construction of
(power)
transforming stations and conduits up to a tension/of 35 kilowatts;
3) ELEKTROBIRO (ELECTRO*B II -- only na this enterprise -- whi25X1
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makes plans for the construction of conduits and transforming stations of a power
of 110 kilowatts.
When ELEKIROPROJEKT became part of ELEKTROSRBIJA, it had about 35 of its
own engineers and technicians, and LLEKTROBIRO had about 12 of them. (Tr.rea.:
It might be assumed that ELIKTROISTOK had also a number of technicians and engineers,
although they are not specifically mentioned)
Thus, the newly formed enterprise ELEKTROSRBIJA consisted of a total number
of 700 people, including there the workers, the engineers, and the functionaries.
An accurate analysis of the situation of the three above mentioned enter-
prises revealed a painful state of affairs.
ELPXTROISTOK was in the worst position. Its books were so ill kept that
even the balance for the year 1948 was not yet made. Things as fundamental as
are the assets of the enterprise, its inventory, its stocks in magasines and
depots could not be established; thus, it was not possible to ascertain what
belong to that enterprise. The general situation was so distressing that it
was not possible to know, for inatanoefsuch matters as how many trucks and other
more important stuff does the enterprise possess. The inventory was inaccurate;
consequently, it was no wonder that thefts were a wetter of daily routine in this
enterprise. Anybody could have done there anything he wished; nobody cared how
much a thing coats, because all was considered to be the property of the state,
or "our" property.
Naturally, the responsibility for such a state of affairs lies first of
all on the Party ambers who occupied all the executive positions of the enter-
prise, without regard whether they w not for such posts. The
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constructions of the enterprise were of a bad quality and made without adequate
skill. Nobody cared much for engineers, because they were considered "reactionary
sleas*tsy" since nobody was charged with some special responsibility, the job
was performed without professional (skilled) control, and it was usual routine
that after the construction (of a transforming station or conduit) and soon
after it had begun to operate, it had to be repaired or renewed at great cost
for the Republic of Serbia. Excepting Slovenia -- where the relations between
the skilled cadre of workers and the enterprise were such more regular -- such
a state of affairs could be found in all the rest of Yugoslavia. Namely, the
technical cadre had no initiative, because the Party organization of the enter-
prise, which had few intellectuals (educated people), was in charge of the
decisions. (Tr.rea.: In other words, the initiative belonged to the Party orga-
nisation of the enterprise)
The situation of ELECTROPROJ]KT and L XTROBIRO was far better; since
their personnel was highly qualified (sHlled), the relations within the en-
terprises were also better. However, even in these two enterprises, the self-
vill (arbitrary decisions) of the lower technical cadre was excessive, and it
is the lower technicians who occupied all the executive positions, because they
were considered as more reliable. Besides, the emoluments of the highly educated
technical personnel were unusually low, according to the slogan : "we havoll an
equal stomachs;" in many cases their salaries were the same as those of the
lower technicians; therefore, the people with superior education had no enthusiasm
for work.
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Now, this conglomerate (the three enterprises which were heaped together)
had to be organised, ssd the relations between those who mks the planning and
those who execute the plans had to be regulated , and those people hgd to be
brought together; namely, (in the past), the planners and the workers were not
only separated, but many times the latter executed the work as they wished them-
selves, without regard for the plans, believing that they know better what to do,
and declaring : 'We don't rely much on those intellectuals.
On the working grounds, where the objects (constructions) were built, order
had to be s^^issmmi established, the workers had to be gradually taught the tech-
nical principles, and the unskilled laborers hat to be substituted by more skilled
people.
There were almost no experts in the management of the enterprises. (For
instance,) in the acoosnting section, there was no accountant who could balance
the books (compute the difference between credits and debits). (On the other hand,)
on the working grounds, there was no skilled mounter (monter - Tr.rem.: Man who is
in charge of assembling various parts of a machine or some structure), but only
insufficiently expert personnel, squanderers living an immoral life.
The worst people were to be found among the drivers, who were in charge of
about 60 trucks and cars. All of them were also half skilled, breaking a truck
almost every day or indulging in smuggling, and concerned only to fill their own
pockets, without oars for the transport business, which is such a vital part of
the enterprise.
There you are. Such yam this mitnMMnIft M moment of the creation ?25X1
E1 TROSRDIJA.
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The following persons were appointed as executives of ELEKTROSRBIJA :
Nikosla (Tr.rsa.: Probably Nikola) SILI, a graduated eleotro-technician
(Tr.rem.: Probably an engineer with university education), as Director.
M n o GAVRILOVIC, a man without education, as Assistant Director.
Engineer s BRATONOU, the former technical director of EI31KEOISTOK,
as Technical Director.
Engineer DJordJ* LUKANAC, as Director of the Projects Bureau.
Nebol a VRAUREVI6, a high school graduate, as Secretary of the Enterprise.
SMODJA, a man without education, as Director of Finances.
(Tr.rea.: The two people whose names are preceeded by the title "engineer"
are university graduates.)
The other engineers and technicians working in the Projects (Planning)
Bureau were not willing to go on the working grounds (where the constructions
were built); consequently, the works were actually supervised only by a few
skilled workers (masters, craftsmen).
During that year, that is 1950, ELEXTROSRBIJA had to built about a thousand
?l(1 t3
kilometers of electric conduits (dalekovod), which was a very difficult job to do,
and an almost impossible one, at that time. This was needed because various factories
were constructed and had no electric power (due to the lack of conduits); there
Mzle dr)
were even electric centrals which were built, but could not furnish their power
to any one, for the sane reason.
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2) S i t u a t i o n o f E L E B T R O S R B I J A o n t h e
Day of its Formation
The main outline of this situation had been already given in Chapter 1.
Here, I wish only to emphasise a few things, in order to clarify my further ex-
position of the matter.
According to the books (the list of the personnel), ELEKTROSRBIJA was
supposed to have 700 workers. This list was kept by the State organs, since
the whole matter was centralized. However, the real state of affairs did not
correspond to the books. (This was due to the fact that) the building-grounds
did not send their reports on time; they were very late in this regard, while
the number of the workers changed continually. Namely, may of the workers asked
for jobs only to obtain their ration cards for food, and as soon as they received
the cards in question, they abandoned the job; such was mostly the case of the
agricultural (sic) workers: No threats could remedy this situation, because those
who had received their cards zbed to buy immediately all the rationed food they
were entitled to; the same thing happened also with the ration cards for clothing.
Consequently, (due to the defection of the workers), the situation of the enter-
prise was more than chaotic. In this manner, there was no possibility to get a
permanent cadre of workers, on whom the enterprise could rely, and no job could
be finished on time.
Despite the fact that the initiative was somewhat given to the enterprise,
the Ministry or higher organs had to be asked for almost everything.
Attempts to work out the inventory of the enterprise were not successful.
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(?f C )
at the beginning, because the/personnel was not skilled; for instance, the same
items were listed under different names, and this was discovered later.
The tools used to be stolen, and sold on the black market. There were many
malversations with No copper wire; this went so far that almost everyone who had
to do with copper articles became involved up to a certain point in fraudulent
practices. Soon (after the creation of ELEKTROSRBIJA), a big affair was uncovered
involving the disappearance of several carloads of copper wire of a value of about
25 million dinars; the investigation established that masters (craftsmen) of
ELEKTROSRBIJA had stolen that stuff and sold it on the black market. The affair
was ended by sentencing to death four people, while a great number of persons got
ME& long terms of forced labor.
Thus, all the personnel of ELEKTROSRBIJA was upset; everybody feared to
be involved and have to answer for old frauds, committed in the past. Consequently,
everybody tried to cover up the ancient mistakes, and resisted any kind of control.
When the books were brought in order, the Federal Ministry of Electric
the responsibili for and
Power passed the buck to ELEKTROSRBIJA;/many of the negative ,/obscure, matters
(losses) was shifted to the Enterprise.
Much of the equipment which was received from the Allies, as a getter of
aid, was not complete any more; nevertheless, it had to be entered into the books
as complete, and nobody knew or could establish who was guilty.
It even happened that the Enterprise was informed by phone that there was
a truck without tires laying far away, at a determined point in the country, and
belonging to ELEKTROSRBIJA. And yet, in the Enterprise, nobody ever knew that
such a truck ever existed. There war& iavarnl ai"4 cases.
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It also used to happen that the Ministry of Electric Power gave orders
to various squads of workers to stop working on a certain place and go somewhere
else instead, and the Ministry neglected to inform the Enerprise about those
shifts of workers.
Huge quantities of copper wire used to lie on different building grounds
or on railroad stations, without anybody knowing that they were there or why
they were there.
The Ministry used to give orders that a certain object (construction) had
to be built as soon as possible, while some commission of that!Ministry used to
issue quite different orders concerning the same object.
At the same time, the contracts of the Enterprise were continually changed.
Thus, it used to happen that some of the/conduits had to be built during the cold-
est months of the winter; naturally, the quality of such a job could not be good,
but it was ordered that its construction was aiiisr most urgent; then, such a
conduit would not be used for a couple of years to come, or it was sometimes even
~.t
established that was altogether unnecessary.
This situation was the object of many discussions on Party meetings and
syndicate conferences; everybody agreed that this state of affairs must change,
and that everybody has to work conscienciously. However, all remained as it was,
all ended with mere words, and everybody continued to work as before, interested
~ PLOW
mainly in himself andihis"ialary:
The workers were fed up with "the voluntary work," and they all asked
their discontinuance; all asked to be paid for their work.
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Such was the situation of ELEKTROSRBIJA, and such were its workers.
At that time, the authorities did not interfere too such with all the
details of the work of the enterprise (sic). In some cases, the authorities
did even help the work of the enterprise, which contributed to the development
of ELEKTROSRBIJA.
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3) O r g a n i s a t i o n o f t h e E n t e r p r i s e
13
The diagram related to the organization of the enterprise is drawn on page
5 (of the original text). The fundamental (main) sectors or departments (sections)
can be seen on that diagram, and each one of them constitutes a whole in itself
(Tr.rem.: The idea seems to be that each section is pretty much autonomous or in-
dependent).
The Workers' Council is the head of the enterprise, and on 10 April 1955,
it consisted of 35 members.
At the present time, the workers' councils of the various enterprises are
selected every two years, and the number of their members is established by the
commission for the election. This number depends from the size and the importance
of the enterprise.
According to its size and importance, ELFKTROSRBIJA has the right to appoint
the greatest number of the members in question; however, due to the fact that the
enterprise extends over all the country, the transport of many members and the loss
of time for so many people would impose a too heavy financial burden on the enter-
prise. Therefore, the Direction of the enterprise has limited the number of the
Workers' Council to 35, and this limitation has been accepted (by the higher autho-
rities).
The meetings of the Workers' Council are usually held four times a year,
or according to the necessities. The Workers' Council is the highest body of the
enterprise, and there is no appeal agairnst its decisions. It decides only about
the main (fundamental) matters concerning the work and the development of the
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enterprise. For instance, it decides about the organization of the enterprise,
the fundamental policies concerning the development of the enterprise, the
supply of the fundamental (sic) equipment as for instance trucks and other it
expensive stuff, the distribution of the profits, the approval of the balance
of credits and debits,/appoints the highest executives of the enterprise, and
proposes the appointment of the general director; this latter is actually
appointed either by the local or the federal authorities, according to the import-
ance of the enterprise. The director of ELE1S@tOSRBIJA is exclusively appointed
by republican (Tr.rem.: state or local as differentiated from federal) organs.
The second ranking body of the enterprise is its Executive Board.
The Executive Board of ELEKTROSRBIJA consists of 6 workers, 2 functionaries
who migt be engineers, and the director of the enterprise; this latter becomes
automatically a member of the Board in question (Tr.rem.: This leads to the supposi-
tion that the other members of the Hoard are elected).
Like in the case of the Workers' Council, the Executive Board has also a
president (sic), who is elected by the members of the Board itself. Together with
the director of the enterprise, this president presides at the Board's meetings,
and outlines the matters to be discussed (agenda). Together with the Executive
Board, the p6 of the enterprise manages the operative activities of the
enterprise; for his work, he is responsible to the Workers' Council.
If the Executive Board is dissatisfied with the work of theme of
the enterprise, it can complain to the Workers' Council. On the other hand, the
director of the enterprise complain to the Workers' Council, if he is not
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satisfied with some decision of the Ececutive Council.
If either party is not satisfied with the decision of the Workers' Council,
it might appeal to the authorities who have appointed the director. In the case
of ELEKTROSRBIJA, this is the Economic Council of the Republic.
The Workers' Council might ask for the dismissal of the director of the
enterprise, and this latter might ask for the disbandment of the Workers' Council,
if he cannot get along with it. 1G?)
The director of the enterprise appoints the inferior functionaries. The
extent of the authority of the director is fixed by the regulations of the enter-
prise, and those regulations have to be approved by the local authorities of the
place where the enterprise is located.
determine
The regulations in question smebto/ the rights of the Workers' Council,
the Executive Board, and the director. Those regulations vary according to the
size of the enterprise, its specific nature, and the other conditions from which
depends the life and the work of the enterprise (sic).
The above exposed matters are the fundamental facts concerning the orga-
nization of any enterprise in general, and ELEKTROSRBIJA in particular.
Beside the main diagram describing the organization of the enterprise
(see page 5 of the original text), there are other detailed diagrams related
to the various sectors (sections, departments), and also the diagram of the
RIPANJ factory of electric equipment.
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The Electric Equipment Factory of Ripanj is a new branch of the enterprise
F.LFXTROSRBIJA, and it shows the degree of development which the enterprise has
achieved. Namely, since iie competition has developed among the Yugoslav in-
dustrial enterprises, ELEKTROSRBIJA has considered that it was necessary to
make also its own products, as it is the case of the big industrial enterprises
of the world, like SIEMENS, BRAUN, BOVERI, etc.
The director of ELEKTROSRBIJA was assisted by a body of experts, consisting
mainly of the directors of the various sectors (sections, departments) of the
enterprise, and with whoa he used to discuss all the various problems of the
enterprise.
(Tr.rem.: See on page 5 of the original text the diagram indicating mainly the
organs from which the enterprise Fr XtROSRBIJA depends, on which I have
translated in English the names of those organs.)
The diagram drawn on page 5 of the original text shows the relationship between
at the organs of the state apparatus and E>