MOSCOW'S LIQUIDATION OF MIXED COMPANIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-01036R000200070034-9
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 22, 2016
• Document Release Date: March 1, 2011
• Sequence Number: 34
• Publication Date: June 22, 1954
• Content Type: REPORT

Sanitized Copy Approved for Release 2011/03/01: CIA-RDP81-01036R000200070034-9
V
CENTRAL INTELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY USSR/Wuaania/Hungary
Moscow's Liquidation of 'Mixed Companies$
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES. WITHIN THE MEANING OF TITLE IS, SECTIONS 793
AND 794. OF THE U.S. CODE. AS AMENDED. ITS TRANSMISSION ON REVE-
LATION OF ITS CONTENTS TO OR RECEIPT WV AN UNAUTHORIZED PERSON IS
THIS IS UNEVALUATED INFORMATION
DATE D I STRAP 2jun 1954
NO. OF PAGES 1 25X1
NO. OF E~IGLS.
SUPP. TO
REPORT NO.
ems.
DISTRIBUTION ? ISTATE ARMY NAVY AIR 1. A ORR EV
T.,: rtmtt It tx use wiFn !A,:. UVft 01 EDC n
withou jhi coacu?te,.: :i%in^ aifi.-e through the Assistant Director of the Office ci Collection and D'ssetninalon. C 25X1
1. The liquidation of Soviet-Riiamnian companies (known as Sovroaa) and Soviet-
Eungaria- companies indicates the failure of on experiment which Moscow
Forced C:A Its Satellites. 2be principal role of these companies ,(in which
the USSR holds fifty percent of the shares) was the industrial-operation of
properties formerly German owned. Other aced companies developed oil deposits,
- IPyards, or freight and navigation businesses in co-proprietorship.
2. It is true that the USSR got half the profits and also had a right to half the
production, strictly at production cost. But, in the long run it wee found that
these advantages did not sake up for the loss to Rum>dania and.Hungary of. Soviet
specialist personaol which the plan had produced. who wuow soneme must have
drawn about ~u,Q O Soviet technicians and specialists out of the USSR for
assignment to these_coapenies. In spite of hopes discounted In advance, the
native populations of the Satellite countries never showed any excess enthusiasm
for ensuring the relief of these Soviet technicians.
3. In the and, the Soviet union got tired of keeping up a corps of specialists,
In two Satellite states, for which it had plenty of use back home. It decided
to-recall its people and give up the scheme of common operation. It.is very
likely that the Satellite governments concerned--especially that of Rumania,
where there were so many of these companies--will encounter difficulties, In
view of the "technological gap" caused by the departure of these Soviet experts.
4. On the other hand, the change will have certain beneficial results. The die-
proportion between lcoal money and the ruble, which has been a real headache,
will eventually disappear. Under this arrangement, the Soviet technician used
to benefit by an advantageous rate of exchange, which gave him an advantage over
his Rumanian colleague. The rise in the exchange rate of the ruble In Ruman?5X1
and Hungary will, however, still permit the USSR to drive a shrewd bargain at
the expense of its Satellites, by selling then its shares in the mixed companies
at an exchange rate highly favorable to the a e anuntry
Sanitized Copy Approved for Release 2011/03/01: CIA-RDP81-01036R000200070034-9