MILITARY PRICING AND FINANCE IN POLAND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80T00246A042800600001-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 4
• Document Creation Date: December 22, 2016
• Document Release Date: June 18, 2010
• Sequence Number: 1
• Publication Date: July 2, 1958
• Content Type: REPORT

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CENTRAL INTELLIGENCE AGENCY
This material contains information affecting the National Defense of the United States within the meaning 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.
COUNTRY Poland REPOR
SUBJECMilitary Pricing and Finance in Poland DATE DISTR.
NO. PAGES
REFERENCES
INFO
PLACE
DATE
PROCESSING COPY
it Jug 1958
25X1
25X1
A report containing information on militar
W
STATE X ARMY X NAVY
WX
r.icing.and finance in
X IFBI I IAEC
INFORMATION REPORT INFORMAT-ION REPORT
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COUNTRY: -Poland
services produced by enterprises under the Ministry of National
Defense, this decree specified 25X1
that prices or sucn gooas would be calculated on
the basis of costs of production plus a profit of three percent
of the costs. He did not know what9 if any, exceptions were
made to this stipulation insofar as'enterprises under the
Ministry of National Defense were concerned; however 25X1
enterprises not under the Ministry of National Defense
w c were producing goods or services for the military'were 25X1
allowed to include a profit of five'percent of production costs
in their price if they themselves supplied the raw materials,
and 10 percent if the military supplied the materials. In
addition, an enterprise not under the Ministry of National
Defense but furnishing a service to'the military was allowed
to include a profit of 10 percent'of costs in its price,
SUBJECT: Military Pricing and Finance in Poland PAGES: 3
2. I Ithe Monitor Polski in 1955 published a
ecree dealing witti the establishment of prices for goods and
DATE : 27 May 1958
distinction rested In the fact that w ereas Poland was attempting
to put its industry, particularly civilian industry, on a profit-
and-loss basis, like the Soviet particularly system, enter-
prises directly under the Ministry of National Defense were
subsidized by the state and did not need to show a profit in
order to operate efficiently.
Amortization was normally calculated in an.enterprise on the
basis of an amortization plan worked out each year for each
enterprise in coordination with its'sunervisorv organization.
would be included as a percentage of the overhead, along with
utilities costs, insurance, and wages of administrative workers.
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account the accumulation levied against a given enterprise.
The amount of accumulation varied, depending on the govern-
mental policy at any given time. For example, prices on
clothing for school children were generally kept low for
propaganda reasons9 and consequently the element of accumu-
lation in such prices was also low., It sometimes happened,
when several enterprises produced a given article, that a
particular enterprise had to operate at a loss for a time,
because the price established by the State Pricing Commission
was not high enough to assure the needed accumulation as well
as a profit. In such cases, the enterprise operated at a
loss until such time as a change in price or an adjustment
of the amount of accumulation required was made,
60
80
90
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Accumulation was the only source of amortization funds for the
economy.- With respect to enterprises producing for civilian
consumption, the Ministry of Finance decided the amount of
accumulation each enterprise must produce within the year.
The State Pricing Commission) established civilian prices in
Industries producing armaments obtained their investment funds
from the allocations to the national economy, since prices
established on military goods allowed for no accumulation.
and these enterprises as a rule not only did not build up
their own reserves, but operated at a loss and were subsidized
by the government. In general, such enterprises had no
revenue, since they operated on the, basis of costs of produc-
tion. Any profits, as for example the three percent mentioned
above, remained with the enterprise', for disposal as it saw fit.
the Ministry of Foreign Trade handled
negotiations for obtaining licenses, for production of Soviet
models of equipment, including military equipment. The
producing enterprise usually added two or three percent to
its production costs to cover the license fees.
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coordination with producing enterprises and by taking.into
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25X1
-3-
1001 the explicit military allocations in
repair, and quartermaster-type expenditures in military
establishments and enterprises engaged in serial production
of military goods; the hidden funds were used for intelligence,
research, and development, as well as possibly for the pro-
duction of highly secret items; the main 25X1
source of these hidden funds were n or allocations
made to other ministries that were never actually assigned
to these ministries. Via their financial plans the various
ministries made their requests for 'allocations from the Sejm,
The Sejm, via the approved budget, agreed to certain total
sums for the individual ministries, but during the Sejm
session permission was given for immediate assignment to the
ministries of only a portion of these approved funds; the
remainder was be out later in detail. In actual
fac these remainders were never worked 25X1
out as s a ep above hilt nstead_were used by the State Council,
in coordination with the SeJm Military Commission, for allo-
cation to this or that sector of the military economy as
required.
the buag were usea c efly for maintenance, reconstruction,
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