FOREIGN TRADE AND PRODUCTION

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CIA-RDP81-01043R000500200001-9
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RIPPUB
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U
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183
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December 22, 2016
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July 14, 2010
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1
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Publication Date: 
February 1, 1957
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REPORT
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Sanitized Copy Approved for Release 2010/07/14 :CIA-RDP81-010438000500200001-9 Sanitized Copy Approved for Release 2010/07/14 :CIA-RDP81-010438000500200001-9 Sanitized Copy Approved for Release 2010/07/14 :CIA-RDP81-010438000500200001-9 Sanitized Copy Approved for Release 2010/07/14 :CIA-RDP81-010438000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The countries ot the democratic camp have tisen as their coon oat to pr~aduce not only More but at lower cost arid vith greater 1Bbor procuct1v1ty. This goal can be achieved by better organization of cooperation, the division of ga&.s eccordi to specialization of production, a well-developed collaboration, so that conditions will be created for the most ecanondcctly efficient utilization of the rear rztateri.als, natural coriii tiffs , production capacity, and the level ~f deve1opmen t of the forces of production in deve1opin the economy of all the lands of the democratic Geri. This ;ot~1 which c!it SJ"1thout efirnrrogerat1ow bcalled hL-~tor c, ree- Cluires us to develop nil forme of economic cooperation. of course in this program foreign trade occupies a leading position cis the most important tool in the division of irahor within the de,crntic camp, since it is the agent of mutual, exchange of machinery, equip- tiient, and other industrial products as well as rav materials E.nd food4 In this connection the goals of foreign trade rise contiuy ually and enhance its importance At the same time the overall international development, un~ der the influence of the pence policies of the socialist cam, a of the successful efforts of nuzneroue lands beyo! the aea t-o free theraseives from thew former political and economic dependence on the imperialist powers, is directed tarexd the formation of tyre favorable conditions for the peaceful coexistence and competition of two different social. and ecoavmic syatema ?- socieliem and cap- italitsm. gntrepreneurIal eircle e in the capitalist countries t t, under their direct influence, even the goverw its of thee. eoun- triee, becoring increasingly ewere of hs ue e2 naneaU of ell a ~te~ta at ec C discrimination against the countries of the peace esa~, vhich they attempfit t er pressure frogs the wive Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 American policy of the Atlantic pact, and they understand thet it 15 in their own iEltGrestis to renew broader Joiitic i. ct itur 1. and econcnic contacts with the east. iere, too, increaaed tasks fall to foreign trade, bath in collaboratiou with the countries fighting for poiitic8l and economic ir4ependence tnd in establish.. jag a>nd expaudin trade Faith the capitalist states trhich have de cited to end the cold war and develop trade on the basis of m+itua1 advantage aid equality Of both partners. Under these condstions foreign trade cart become a very et'- fective means for spreading the ides or peaceful collaboration ad competition among countries with different political ai ecoaomac systems. We are glad to undertake such competition because for> eign trade presets one oppor tunity for deut~ttrating the super- iority of the socialist means of production over the capitalist. From this standpoint we can beet see the importance of a further development of foreign trade and the necessity of taking all possible -neasures to increase exports. It would be extremely shortsighted to believe that by exporting we are deprivin,; our in- ternal uarket of goods which we ourselves might consua~e. Whoever grieves over exported Javas or Spartaks should aee tb~e enor~o-.s quantities of imported raw materiels which our factories process daily, end the quentities of imnported foods which we consume daily, Without iorts we could not fulfill the goals which we have out- lined for ourselves in the secot Five?Yeer Plen end these iorts would be impossible without the exports whereby we obtain the ne- cesaary forei~ exchange. In order to develop exports to the eaope required bar iaporto e uat generally i tie our woxt both in the foreig~a.trade epa' perstve itself end In the factorise ving for export, sled thus ultimately in their ce< 1 liaison. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The ycar which has paased since the first edition of this handbook has ? va 'ua a rent dell of new experi.e z irforma Lion on our export suess wiiit is a great encouragemeut for fora tier work; f! have also learned of my shortcomings which must be systematicail,r e1imi.nated in order that we may draw from our suca crass ar$ fulfil the new goals v ich we Thee, In v:ew of the fncrensir significance of foreign tram: in. the second FiveNYear Plan the authj)rs have decided to cousider these new goals arui experienees and prepare a Second edition of the handbook, substanti~a11y expended and supplemented, with new infor- mation and ideas. We present it to the workers in production who sre working Tor export, and to those in orei.gn trade, as a guide in their work. As in to first edition we are now convinced that the lsrger the number of" workers, party officials, and mase-orgsn- i.xation officials who vaster the info Lion contained in it, the greater will be their success in exports and importa, for the en~ tire national cconomy, for further increasing the living atandard, for the good name of the Czerhos1ovak people abroad, end tor con- solidstirg peace throughout the world Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 U IC FEATS CF CZECIOSWVAK FOREIGN SAE Czrchoslovuk .Foreign trede, like all important brunches of our national, ecOnoifly, is rationalized. and incorporated as an iw portant elettrient in the econordc system of the People's iemocrat1c Republic. In the spirit of the basic economic law of socialism our state uses foreign trade for the construction and development of industrial a4 sgricultural production ar1 for meeting the grating needs of society. AIongaide our own domestic sour cea it is ara itn~ portant supplementery source of means for increasin; pr oductlon and better supplying the population with the tens of consucaption. The new role and structure of foreign trade in our economy had to be fought for. Until 19148 iraports were 74 percent, and ex ports were 38 percent ft the hands of private firms which used forty elfin trade for their own enrichment and thus injured the 1ntGrests of the state. Shortly of ter February, as a result of reactionary "management" of foreign trade, we had a negative balance of almost 5 billion crowns. In the next ration period there waa no meat a.nd a large nua~ber of important raw arterials were lacking. At the same time the capitalist merchanta had robbed the republic of bil- lions in foreign exchange which they deposited in foreign bank. Victorious February opened the path for a solution in this sector as well, and thus nationalized industry could be aupp1emtented by the state foreign-trade monopoly which is a necessary condition of the existence and development of our econow r. What Is the Foreiga??reds icavpolyI Foreign trade in Czechoelovekia is a monopoly of the aocis1.- 1st state. The foreign-trade monopoly is co sitrat~d in the hells of a special state organ, the Ministry of Foreign fade. Foreign trade is aubordinated to the goal* of soaieliet coMtructioa sad Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 operates eccorcU to the foreign trade pica, which is an insparty ab' p?rt o? the econo niC nlcun. The faction of the forei n trade monopoly are: lm To aseii the economic independence of the country. ?. To be a tool of economic cooperation wiUa the USSR an1 the people's aemocrayies. The monopoly protects our econcnya~ainat the unfavoreble ef'f'ects of foreign capitalist countries -- the efftpcts of d.iacrira-inatlon > nd of the dieaatrcaus effects of economic depression which periodically seizes capitalist econorateS. With the aid of the Soviet Union and thanks to the fore trade irnopoly we have turned back the ecanoti: blockade which the imperialist at.atea attented to i poae on us through heir embargo policy, their prohibition of exports of many types of important goads to the countries of the democratic camp. The period Of the cold war could not hold back the economic deveiopmeat of Czecho- siovakia. Even the mem rS of the so-called Randall Commission which investigated conditions for American coanerciel policies ad-' minted that: "The control o trade between East acid West has mere- l:, strengthened the irieperideaco of the Es3t-European market of the economies of other countries (i.e., capite3.ist) by heLping them to reveal their weakneaees and overcome them. ~' Liaiaon between the democratic atetes has been further atretheneI an expanded. Czechoalovek foreign trade hee purpoeely transferred its main ef-' forts to the world de~ocretic market and noun hae eseured our ectn -' omy fndepeaden a of the cepitaliet world. It has thus erected a dam a iaet the effeate of dapz'eeeie vhtch 1e inevitable in the capitalist world vhich, preai#ely through foreign trade, epre.'t* from country to cou tr7, U v$ t elves experienced during the world ecoeaoetc depression before the 8exo>g1 World War. -6. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The toroign>trade monopoly nikea it possible for us to have uninterrupted internal economic developatent by foreseeing price f]Luctuatione ~a the world malt so that they cannot influence the results of activit~r of our conunercial e4 production enterpriaee. The orgenizational separation of production froni the foreign trade monopoly prc,videe production with a firm calculation base undis> turbo by price movea~nts abroad because foreign trade sells prad> ucte at fixed prices. The task of the ?inistry of Foreign Trade as the supretne or- gan of the foreign-trade monopoly is . to direct specialized foreigr~w trede enterprises, negotiate international trade agreetuenta, on trot their fulfillment, and see to it that ye are se11ing end buy ii g on the nx at favorable markets, at the most favorable time, and under the most favorable conditions. The PZ?rs (podniky xahranic,. mho obchodu -M Foreign-Trade aterpriaeeI like Technoexport, Fer> romet, Kovo, Strojexport, gkloexport, and, others, directly dis- charge plard export and intport goals by cocnaercia1 operations (3.e., purchase and sales). The foreign..trade enterpriaea are independent economic unite, legal pa ono, which operate in their awn naaie and have their rn .financial economies. Foreign trade is served by a number of other agenclea, also directed by the Minietry; first place among these is occupied by international transportation and shipping, managed by the enter. prises Metran (o erlend transport) anal Cecho'racht (maritime trane - port). i portent Foreign-tree icee are pertormed elso by the cseohoelav*k State Beuk as the holder of the foreign-rxohe ~no? poi in peyant relations with oth eo triaa; the heath In- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 atitute of Foreign Trade, and the Czechoslovak Chaffer of Corm 'ce. The enterprise Cedok was set up to hen41e t1c tourist trade. Thanks to the onopoly and to the specialization of comer eisl. activity our ores -trade entez'prisee can enter vorid markets as very strong end desirable partners whose demands must be take~z into consideretion in a way con>pletely different from formerly when each production enterprise or private merehant dealt indepetdently without proper coordinatiou or a unified line. naturally, vii uh t1 rop d 'eve? op et?t of the Cx~nhos1 ovak economy an4 with its direct effect on the goals end possibilities of foreign trade, there have been changes in the form o1 the mono poly and the methods of its application. The increased share of n1chifery in our exports has led to greater specia1izat1on of for- ei n-trade enterprisea. The strengthening of our economy has been reflected also in the wording of newly concluded csxmtercial agree- ments. The foreign-trade uonopoly was created by our state for ccxrcial relations with other countries; it is therefore natural that the monopoly must react quickly to changes in the interns'. tional econoinLc and political' situation. lta principles, however, remain a valid part of our socialist regime. Therefore the mono- poly must be continually $trengtheued. and organizationally p ec- ted in order that it may become a re ef'f'ective tool in our de< velopment. We must see to it that in the organizational separation of the foreign?trede apparatus from production, which is aeeoctete with the foundation of the m~ropoly, the organizetioa of the for- eige~ Mi ade f1iYncpo].' not leg ehiud he continua)iy in taskM which our p'oving eco y pl ec on it. on the other h , h? never, the r ag eeo is pipe, pertiaularly product;, east un r- eteM the functioft aed aiutan of the ~iopo1y 8M helptit fU321U 8 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 the Ala which are t more bi ing since their fulfillment ie eseociated with the eoordinatiou of economic plans of the other couutries in the socialist cat in basic question of .industrial, =- and riculturel production aril with the spread of the idea of peace fat collaboration and peaceful coretition arming netiona. Cont orary Goals of C~echoa].nv_~-k Fore Trade The goals charged to our foreigi trade by the requirements of irduetry, the inductr ielizatiOU of the .people's dencraeiee~ and the increesed requirementa for imports of food and. raw materials s~UM~ r J ..tee ..,1th ` the rye in living standard -- these are very de- ~-~ yi a{i Vii the s ~~ w pending. They have led to an expansion of existing commercial re- lations and the development of new ones and their consolidation by agreement The development of our economy is creeti very favorable conitior z for the development of foreign trade. The results of foreigu trade since l948 have shown convincingly that the fast pace of development whereby the vzechos1ovak econouz j achieved technical and econonic independence of the capitalist countries has in turn uia a it possible for increaeed import requirements to be met by ex- port of those good.s which are needed in the world. The index fig. urea showing the develop t of Czechoslavek foreiga-trade turn- over mace it clear that between 19148 aril 1955 the total volume in- creased by approximately 50 percent= Iz4exes of Total Czecho lovek ForeignMTr$de Turnover (198 * 3.00) It eta aorta Total 1953 22 105.k 12.5 129.0 136=9 151e 107.1 116.1 131.9 133.5 156.2 10 6.3 I22.0 130.5 135.1 155.1 The totel value at *eGhOS1Ov$k toreit"tree #a* ver in )955 exceeded 16 billion + . Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The importance of foreign trade in the total economy is in. dieet- by the fact that at the be rx 1 of the 'sv ur P1 n Czechoslovakia exported appro cimateeiy one.tenth of its i r4uatr ial production> Foreign trade approaches tie fulfi n t of its cur- rent mat talks Bch better prepared than it has been for several years Fulfillment of the Fives-Year Plan in decisive branches etreogthene i Czecho'alovekf a's pOs ttion among world export . This position le based on very' general aat highly specialized iuthstrial and agricult -al production and on the continuing rise in its volts ume, variety, and quality. Al]. the principal branches of industry are working in greater or leseer dege for export; these include primarily branches such as machiawrbuildini, metallurgy, he tex- tile industry, ceramics, gisea, footwear, chemicals, wodiorking, paper, and sugar refining. Finished products make up approximately 80 percent of the value of our exports, v'hich is more than it vas before the second world war; when Czechoslovakia e ported more than 5 percent of total world ir4ustrial exports of industrial produc- tion (uot including the tom!) and when Czechoslovakia waa among the 14 largest exporters. The atructural reorganization of Czei~oslovak industry is also reflected in foreign trade, where kci y occupies relative ly a curb etroogsr position (in 1955 it exceeded eO percent) anal where the vol*a of exports of ocher branches also increased en- stsntially in a`eolutee value. Tn sdditioz to machinery and fin- iehed light'industzy pests, doh xe will discuss in re tetail in another part of this publication, i c rtaDt Ctec ]e> c ems is 195 i ons hops, salt, suz', atallurgieal products, 1.r, zs$ tip, a.11,ai1ose, pa er, ob i , lgsolin, ante, eta, 10 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Our exports now have a oorap1ete1y 4if+ 4t purpoae from that uruier the eapitailet economy before the war. We are no long.. er interested in export profit or i pLacing i9tl aieb1e ~tourp1ua" on foreign ms rkets; we are intereeted rather in exporting gocxte to obtain :funds or the necessary iuporta acd so that we may alas help t-e people's cieallocrecies ar4 economicai1y backward countries in their developr,t . Therefore we moist not odder our exports as an et d in theu8e1ve s. The feuds gained by exports are used for imports, pro- duction, investment construction, suppUesy and thus to raiee the living stendetd. It may thus be said that foreign trade serves u$ by effectively helping to develop the forces of production both in Czechoslovakia and in the fraternal democratic countries No lees iii ortant than exports are the changes which ccn struction end. the raised living etandard have brought about in the make-up of irporte. Raw materials and semifinished producta make up more than one' half of our iriorts. The main enhasie continues to be on raw materiale for heavy industry ~w iron ore, nonferrous ale, chemicals, and petrol products -? but rev materials for light induetry are also c ontin *11y on the rises cotton, wool, silk, rav hides, sisal, jute, rubber, etc. Greater consumer de- mad, vhieh is an expression of the risiig living standard, is seen alao in greater imports of certain foods, partieui rly bum', meat, lar4, fish; legumes, rice, tear Kim, coffee, cocoa, orange, lens, apples, figs, ,Bates, almnds, spices, s4 queutities of ivdustriel goods of mad aonr tiou. Agriculture also places mat !4s on forei irate since arts rapid deYe3.OPt re - fertilisers eat fv s end certain epeoisi r*chthes. The ruin support of t Qseoovek eaonosy in pudding fa' its *es is trade vit t)* Soviet bioa aM ' the peep].. ' a 4a 11 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 11 oracles. Their sere in total foreign trade turnover has risen continually in postwar yearn until it reached 75 percent iii 1954, and it has resulted in increased independence and economic stabi] i.ty of the Czechoslovak economy. Percentage Share of the USER and the People'a Den cracies in Total Czechoslovak Foreign Trade 1848 l29 1950 1951 1952 1954 1955 14 32 46 55 61 71 75 70 The significance of this development wi11. be still ure striking when we realize that this share has increased with the continual rise in the volume of foreign trade as is shown by the following indexes, is which 19+8 = 100; Volume of Foreign Trade between Czechoslovakia and the USSR and People's Democracies (1948 = 100) 198 1949 199 1951 1952 195 1955 USSR 100 156.4 168,6 219.0 2515 277.0 301.4 331.3 Albani -- 100.0 172.0 335.0 311,0 400.0 33,5 314.6 Bulgaria 100 141.3 130.8 135.4 150.7 214.5 228.8 255.8 Hungary 100 140.5 148.5 224.5 318.5 319.0 332.4 324. GDR 100 225.0 337.0 464.0 518.0 629.o 803.3 911.9 Poland 100 134.5 152.0 187.1 192.5 216.0 176.1 191.3 Rumania 100 1A7.8 114.0 135.0 146.6 260.0 156.5 154.8 The volume of trade with the Soviet thion has increased more than threefold since 1948, and with individual people's democracies between two and ten times. Trade with the nations of the world democratic market rep- resents a new and higher type of economic relations. Its basic idea is to achieve the most rapid possible co eco ie programs vhile respecting auto sovereighty, mntue~. ad to e, and ec asIity or r tta. Relstiona of itrsightforvard oocperatioa a~ ofd ere an expreseioa of proletorien interuetiot*lem binding together the Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 32 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 countries in t .oh the waiting class has seized its power and is building the esonic foundations of a socialist society. The forei. n trade man4po1y in the `S a r4 the peop] e i $ demw ocracies makes it passible to direct goods exchange tovani eccel- ersted, develapn nt of the forces of production, the systematic in- crease in the we11?being of the population, and consolidation of the economic and tec1m1c~ i1 ir4epe enee from capitalist countrie6. The makeup of imports and exports is therefore determined by econ- omic end political goals during the given tive period and not by the effort to force on the coimaezreial partner thin; which he does not new, as occurs between capita_l_iat stated. Far example, in the pe*ioc immttateiy after the war Soviet deliveriee made it pos- sible to provide for neaesee y supplies to the popuetion end. to bring our factoriea back into operation rapi&ty, while later this aid helped to fulfill the demanding Ala of the Five>Year Plan sad in lame part to raise the living standard of the workers. The volwmte of goods exchanged is continually riaing becauae production and oneumption are inoreasing without cease. Foreign trade alao twee over another important function. It become s means of ooorttineting the economic plane of countries iri the world i z'ket, ar d in a number of branches of industry makes possible the division of production programs and the maxim utii.> ration of production capacity. It thus beco ea a tool prom ting the gradual socialist interuetional division of labor. The is orteat r la which the 80viet Union plays with reepact to t hoslovakia in this nyetea of waderetes4tng and cooperation is projected in sharp detail by the tact that trade Mith the 8o> viet Union skse up erore than one-third of CIecho$lovek foreign > 13 e Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 11 Percentage $he of the USSR in Mel 0se lovek Foreign ',Trade 3? ; 19 2J 22 1 5 12 6 i6 a8 '3 35 36 The Soviet Union sera Geeahoavekia food industrial rev matorials, end complicated pr oth ct on equipment. Unlike the punt liar ;year;, en deliveries of food predominated, there has been an incresae in resent years primarily in mechinen and raw materials. In c .'.. erieon with l9Ii deliMY eriea of X11. ozi or W b Y e Ineress 2.3 tit s, pig iron 1.5 tlmea, aluminum 3, cotton 1.5, and wheat. 1.5 times. Of total inane the Soviet Union supplies Czechoslovakia with 80 percent of mangenese ore, 70 percent of iron are, 50 per cent of copper, 80 percent of aluminum, 60 percent or petroleum, 80 percent of phoophs tea, and 80 percent or synthetic rubber, while the US&R alao sends large quantities of zinc, lead, nickel, tin, Ferro L b eruj ferrotungaten, ate other metals and alloys. 1ffecw tine aid in our conetruotion ani iricz easing production is provided by Soviet machinery whether bulldozers, dredgea, mine equipment of all typee, construction and highway machineezy, or agtcu1tura1 m- chines such as gain, beet, and. potato combines, heavy tractore over 60 horeepovor, grain driers, etc. A sub itautiel portion of 0se lotrak deliveries to the So- viet union is made up by machinebuilding products, tugboatte, Uieeel~ electric paseezager ships, paver tre3, portal crenes, vericaezua- chine toole, turret lathes, fang anxt preeeing equipment, large Dieeel enginea, dredges, etc. The Soviet lJaion is at the e time as enoraua market for eahoelovok iaduetry. % ht a basing our aoastruotion on deliv~riee of rev astiel aM machinery from the Soviet tom, we are oiou1tazeau$ly wing to tren$ifoz' previously agrarian or iMuetriel? rie n ocmtrtes Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 .m* Bu; aria, Albania, Rung, mania, end Chia M. into countries with their ow nature industry, ar4 Czechoslovak deliveries are making en important contribution to the farther construction of Pot d and the Gerwn Democratic Republic, The largest Polish cement plant, in Opole, is completely fitted out with Uzerhoeiovak euipme t, as are the coke ovens at the ICosciuszkko factory and a number of electric power plants . Our industry has aupplied Madera equipment for Rungariau beuxi.te !ainea and a1wain production, for the cherE.ca1 azid. food induetriesy, and power eq>i pment Czec aslovakia has become, after the Soviet Union, the second lamest supplier of machinery and equipment to Ru nias and is participating in that country's 1OMyear electriffi~ cation plan by de1iverir large electric parer plants, our indus~ try ha$ also contributed to Bulgaria's industrial expansion, par- ticu:Larly by delivering egment for electric povex plants and cew merit plants. Czechoslovakia's sure in the electrification and deve1opmennt of industry and traw partatian in Albania is also con'. siderable. Year by year deli':erle2 to the Chinese People'e Repub- tic also increase, as early as 1953 Czechoslovak trade with china catnprised s~imnat one third of total Chine trade with the d - ar atic ata !Ves ! We are eupplyichina with meta].lu gioal and ma.' building producte; and equipment for electric power plants, eugar factcu'iee, r!etinne too p; te1e o nit atione equipment, cranes, dam, trucks, etc, Erperiencae with the progressi i> h stxialization of the people'e demooreeiu shove bind all doubt that few that the ad.- vane in it atrisl production in the6e f lI a -cultural couu tries would reduee their trade vith hotel countries such as eahoasieakiai mrs vein. the ootrary, with the edge of Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 1 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 inhistrializatiou in the agrt J.tu'l prople's dens er'acies their trade with Czeehoa1ovaka a is alti80 developing, and we a o have lii.. creaei.y v1gorous exchange of goo,s with such a pronouncedly inw duatrial couutry as the Germ Democratic Republic. In the prac~ tica]. execution of the principles o? cooperation ar4 specisliza- tiou a fig founat?on has been. built here for -xchan not only of raw materials and Food but of macatuery and other ndutr1al prpducts. Particu1ariy as regards Czeehosiovak deliveries of rraw chinery we have a permanent market in the Soviet Union a d the people's democraciee . 4 ereas in 194 sQQpp1ies of r achin y and equipment to these countries corised 25.7 percent of all Csecho" slovak exports, in later years this proportion Increased regularly until it equeled 5O8 percent in 1953. in 1953, however, the growing purchasing power required, in additic to exchange of machinery; equip EZI raw mater?l$, and food, the exchange of larger quantities of consumer goods . By the end of 1953 au1 throughout l95i1 sup-p3meuta1 agreementa were con- claded with the Soviet CTnion and alw,st all the people's democra- cies concerting exchange of consumer goods in excess of the agreed qua titiee ( quotes) . F'or exenle, Poland, Rungar y, Ruunie, azt3. Bulgaria delivered more agricultural products -- butter, cheese, vegetables) fruit -- is exchan a or Czechoslovak motorcyciea, bi. eyelee, radio receivers, and seving machizie . The German Democratic Republic supplied photographic caemree ant watches in exchange for ca elova motorcycles, baby carriages, furniture, eni decora- tive' leather accessories. All the evidence iz4icatea therefa that the rapid rise in the iii staaar4 of the broad wsue* oi' th populetiott presents ever v pt ibilitier for exahsz* of Ada, Our atoms contain 36 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 more arl ve isdustriai consumer and fob delivered by the entries of the vr,~rf,d demcratic nzintet . The nature of et o ,c ct a atiou with the SSA m the p o ie' a de cr ~ci is met sat1af i~ by 1 ^ m trade a ee ~ its w i:Lah give a eleer aicture of Further deveinpu ent ark '_ e it poeeibie to iztcorporate foreign trade more cLosely into the sys; tet of economic plans . This results n the atrictiy binds nature of deiivery ar4 receipt gotas; it is for thin reseon that mach em de phasia is placed an the mzintetaaace of delivery deadlines and Winds i'or quaUty, einee otherwise delays would occur in the conr atr ction of econonica11 r i orb nt instaUatio? s and in the pla3r1ed circulation of gouda. In addition to goths he Soviet Union and, the people's demp acracies exohange teehnical doeumentation, dravtng cal tU.atiat~s, 6t technologieai paa ns. They eriage in extensive exehenge of dis4 coveries and inprovement suggestion"; visite of scientiste and speeia1iets are organised as well as technical training r- every-r thing which can be a .ed ecientifie end technical cooperetion. In the c pitaliet works, of course, he law of eouetition creates eo 1etely different cor diti one z auierouB production procedures and discoveries are stashed as coem ercia1 and. productioti secrete and a profitable trade le carried on in the sale of patents and ii.- cen eu. The goal of the pecple's demo tic countrie$, havever, is to raise the technical eat orgeuad,satione1 level of the netionel econov and the entire peace esp. In order to carry out the t ex ive possible eeonoaic cooperation c*echoelavekie is a tmb.r of the UUOiL of $ of I4itue1 Aid, ,eh is bui3,t on the fnulddetion of egaal repr nte> tioe of the *r countries a bee the *1 of o ni*ing the ox olange of eco is expezi e, tue 1 to t iea2. aid, d t the deU of rev ter1a1$, foods , m o iine~'y, et Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 At present the eoorUnatton of economic p1en among the countri of the socialist can promoting muitual cooperation ' u the p ~i ed dival.eian of bore This is shown clearly in our soco FiveYear Plan, in which the t chinebuilding sector p aizes t development cf i ortant brancb?s of heavy triachine~ building in aeaociation with the goala facing us in the deve1op4 amt of the other p lea der oracies. At the seine time in is second Five-Year Plan we can count on grow a orta ar. Gid fro n thee countries. The industrial potential of the countries in the soci.aiiat e e, whose output equals 30 psrcent of world wt~dustrial production, will v by 1960 to a teal of 1,250 million tans of coal, ' llion tons o cast iron, 95 million tom of steel, and 47o billion kilowatt !.'" et a p r. Gsal for uteri efforts of 'fie mean countries in the field of peace? fiii utilis~ttiOA of 8tomio en 'gyp we stand squsreIJ behied N. S. usbchev's statea~nt at the XXth Congzese of the Cc nist Party of the Soviet Union, in vhich he eteted that tred has a great role to play in expanding the baBis for effective cc ration ercnng countriea a. t, un- like to 8logsn of the North At1 ratio Blocs "Iet us arm" we grow claifs the alogan "Let ua trade. " The r Central. C ?tt ' the moist Party of Cz cho$1o> , vhiah matt on 29 a4 30 Mrc1 1956, outlined the foUoviDg prtnatp] ea for the foreign policy of our country: 1, To carry out, La f iz al end frt ship with the Soviet i and the oth* darstte at, a policy of peaaatu3. Qlt eolnt *$ xih Jiff % social oyster. p. fe w sts'eigtl*n pe3.itioa1 aM eaamic aoUabor> ate with des et thn aoeie t ?aa~p. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 3< Tic, develop and coceo11dete eoono.tc a political coop er tion with the lerative 'eople'B Republic of Yoi:zvia. 4. develop econor 1c cooperation and tai tz'sde with c ail entries on apt equal basis, psrtic r1~t xte i econord and technical aid. to the ur4e eveloped cauntrieB thich a ettemp. tiny to streuen their rational ir~lepen~ience. The broad deveioptaeit o ali-roux i contact awl cooperation auK,n(~ Gauntries is an important basia for creating a atmosphere of ritual cofl ia.4 cc and percent peace. Czeohoslovak foreign trr~rie is attempting with all its strength to achieve this great - Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 UI- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Cam! U FOR ION flAD -i IN PD1&k iCR cZUO8LOVAKIA Iu over to rnk e stiU clearer hcw our present foreign trade, built on the basie of a socialist rn r oly, differs in all its form and coutett from Czechoslovak foreign trade before the we mgt discos itports a arts In CxeCho81ov3k18 before rich. Foreign trade is pre4&utich Cxechoelovakia was capitalist trade. This aeans that it was governed by the baasiC economic isv of contemporaary capitalism the race for r>xitaun profit. It had all the tvpicai features cvf the iu erial1et stage of capitalism acid was thus distinguished riot only by chaos but also by the fact that tradividuai aeetora were ruled by capitalist n ouopoiy. It was marked aiao b r rmatuaal competition of cap itelict groupie and profouxid Gore lic t e rg them as veil by the ezport of capital. Tie ex port of Capital requited both in the penetration of our econom7 by 'oreiga capital and by the great effort to export our own capital to economically weaker countries. In addition to these features, common to all capitalist c ountriea in the stage of it riaalism, prewar C2echoslovsk foreign trade had eeveral feeturea of its own resulting from the historic rieve3oprnenf of our state; We must discuss all these fest'ares in sothet more detail because the entire reorientation of foreign trade ard its apparatus which we undertook gradually after the lib eretion eesults from the effort to free ourselveS of all unhealthy att. in jurio.ze features a8eociaate i with its capitalist foundati . Before the first wc*')4 War the Cserh PravinceS ware the ia- dustria 1 hit of all of trfs4 angW In our ]mod lived only abet 5 peet of the total pdpulstiOn of the A~tt u rian aK*%arahy, but in this e i*$ Concentlct*t about &7O petit of Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 ite total irdustriwl p duetioa. After to breekdov of the in~ arctiy here re ined in Czechoalovakia i perce It of to :otton ipiardn .11s, 90 percent of the cotton a? tit, 3 rc it of the wool spinn1r and weaving mills, 80 percent of bat produc> tjof, t'3 p c t of the ceUulo6e plants, 52 percent of the page' pitmota1 about ones h 1 f h prot3ir"t1on 'ap city of iron worka, at , the over r he1niig ~o .ty of foo1~1rth stry pro.~uctioti capacity T iuetria1 production capsot ty 1iich mined on territory ear eoeedA3d the cepacity of the domestic t 'ket to absorb ?n uaM trial products. On tie other hs our country vs unable to aup M ply rani teria]s for industry. The caps talists t entrereiieurG L7interes ted only 112 their OWn profits an 1 their econot is parer, and aationc1 irdependet ae concerned them only to the extent that it directly served their irztezesta. Therefore they muse uo effort to chance the economic Structure of the ccauntry? 'hie is the ba jug p of the vod#ng misses of the p matt , ell thus .a< 11 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 level epflAtaltiofb n 1929 Csec1oa1ov~,.ki1 i vrted OO L words l9a962 mt1ion crctv' g thio figure dropped in 1933 to ),63i 1- lion cr 'nsp and t 1936 on the same bit 1eve) W03 1- licm crovns The permanent drop n Cechoalov foreign trade was one cotequence of the general crisis of capitalism and was accoran ied by 1ovol1 utilis?tion of 1n1uatria1 production capacity, high end peuent unemploynrat, low consumption by the population, and poor living conditiona, as well as by other acac mpanyit`g phe- nomna peculiar to the n m ly phase of cepita1ist develop nt. a i tai iet Trade w< Tool irz a Race f'Qr Pro!ita Foreign trade in the pre44unioh republic thus not only failed to contribute to ie rrovet living oonditione of the people, but actually vorsened these cord.itionS. This is nat to blame for' eign trade as a tool of the international exchange of goods, but rather the capita et method of utilising f oreigsn trine tar the ao cunatilation of n xionum profit Foreign trade brought extraordin* erily high prof its to inoxtere and e q ort . We cannot obtain a preciae picture of these profits becauae aocea remained deposited iu foreign b s. The pre4tuifch governments, furtheruK re, eaten. ded subaidiaa to exportera she producdra ten theme profits vere threatened by competition on foreign markets etnd bred prices. t that io only one aide of the z tter. ? iii trade served the capttaUsts also in that it orts of cat.in products were finites t or that producta wre i orted ithtch we aoulct obt*in st b+? For a p1e, is orts of iron ore > in sect while do. aetie mining reed ereud, eltba this lad to a rise in un ee~-io rnt. The ty ot iroa ore in 1.935 dr ed to 51.5 perct of the 1926 level elm taports of tror- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 ore dr099or1r to 76.8 ;meat of that level. Still rare atrk' iris is the dU'fearence between raining an importation of man ariene ores The mid of mannese ore in 1935 was oy 7 .5 percent of to 1926 level while is orts oraa crieae ore rose to 295 per' cent or tie 1926 level. mastic production of copper ore vas stopped altogether a aU domestic ~ -er needs were met by ini~ pow. Frcua the atantlpoint oZ the overall requiremeats of the Czechoslovak natta L eoon p of the utll atiori o?' do tic oree, and cxi Czechoslovak a 1o nt, tt was incorrect; it brought the capitaliata enorn ur profits , however $icdlar profit captives were aeea ego izi trading in agricu1~ Lural produeta. ;worts were 1.icaited, or instance, in cheap for eign wheat end wheat four . In 1930, for trap , 229,138 carloads cif wheat and 18,989 carloada o wheat flour were imported, while in 1935 these figures dropped to 9, 53? cexloada of wheat w4 78 carloed3 of wheat flour. This limitation on the i+ ortation of wheat was iutended to maintein high docaesti,~: prices on wheat and other graina as tell. This is because grains were pz'oduced or sale on large eetatee sub, kulek fem. The srasU an medium 4tzect fer- roes, ou the other heed, derived ri et of their income from animal products which did not bring the fe rs such advantageoue prices. on the other hated, the capitalists, the were iute'eated in exports, redhiced expenses for ? age under the pr5aue of foreign cr etition. The stsr stion wages of the ors made it possible i~cr them to eoe to vith teal ntcall t Mvauei f oeiign pr oem. Our torch tree aboved a positive balance each yr. This means tit tacre Od$ were tot t iu orted. For .xa le, betwesn 1926 s 1931 the uz73.u , in ' ' one of prewar ate, vest as foU1s* 30 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 1926 2,580 L929 511 1927 2,113 1930 1,759 1928 2,03.6 I until later years dad this surplus drop. In addition to this surplus reeu1tin from tr"adi in goods, we also received income f rslro?d tr&eport of foxreign goods. In 199 this egusled 572 million crc , and I11 million crows in 1930. Cwechoelovekia thus regularly exported more ~oois than it in ortel. This reprsa ted a certain ectual loss for the nation 1 econotAy. o profited From this lose? The surpluses of Csecho~ Slovak foreign trade, repsenting billions of crovaa, served both dorneatic capitelists, who txansf erred aome of their prof its to other countries, and foreign cepitelista as well. Foreign aapital coatro11ec a considerable portion of large Cxechos1ovak banks awl outstending ieduatria1 plants. Thus the ,1.obanka was controlled by F)eneh and Eng11sh capital, the Czech Uniozt Bank by Belgian, ?ranch, and Swiss Capita]., the Bank for Irn- dustry er1 Commerce also by French capital, eta . The large bad controlled about 80 percent of the 1,330 joint.stock societies ui indstry, so that foreign capital reached into all branches of Czech e1ovak pr9'uct?on: Some jot& 4tock oc ~ et1e 3 ha direct foreign-capital participation, such as tha Mining and Metallurgi- cal Society, the Skoda Works, eats. Some of to Cepitalist profits wrung troi the sweat of t r vorking peap1o thus belted to foreign capitalists. The a iawolved rrs-tod hum of i ous of erme arnni#1],y. r e p1e, in l frig capitalists reaet 60 ].ion crovus for the use of pates, 180 million crovai for divi d *r48 f 'em Joint-stook societies, 507 million czvna f ink on state, ooe ity, privy debts aim, 72 ei1lc * arovts to Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 ernortie state and. comity ctebts abroad, 1,073 million crowns to amortise foreign debts of Czechoalovak industry and banks; etc. The surplus in exports over imiorts wera used pr ec?aai y in order to make up these items in forei~rt excha . All of these facts show that foreign trade and the financial transactions aesociated with it intensified the poverty of our work,. ere who themseibore the entire burden of double exploitation domestic and foreignt. In this connection it may be pol,nted out that even Czecbo~ al.ovak groups strong in capital (the Skods plant, the Zbrojovka, Data ) began to export capital and to set up foreign enterprises in econonically weaker countries in those cases in which the exporta- tion of capital was More prof stable to them than direct exportation of goods. Our prewar foreign trade was thus not free even of this feature of the higheat stage of cepitalism. T_ Role of Car tela The raonopol iatic nature of the age of in,aerialism was shown very clearly in the effect of cartels in our foreign trade. In ai , d ition to a number of export axt :Mort cartel agreements and syn- diaates of domestic pretucers and aterehanta, among which the coal iu ortati on syndicates were eepeccisi y infaeaua, corpting the govexrLing political parties, Ceechoslovek prewar foreign trade wee affected azl limited in the tnost veried ways by cartel agreements in which foreign enterprises and cone roe were the partner of Czechoslovak fires. For exa le, in 1937 the cartel register, kept by the State Statistical Office, Wired 130 certel ante with foreign contracting partly in a variety of c ountriee, principelly Germany eat Austria. ' purpose of these domestic and interns tional ante 1 $ to maintain prieee on the hit possible 32 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 ^ level and thua to al cure maxi s profits ort the domestic and for We I is I~ter t1 ! n1 azreenients exterLded primarily to prod- nets of the + ete11ur ica1, met.E 1working, a i chemical industries tl In rieta1Iur T Mr4 tel j 4 4 czechoe1ov ie wie repre n ted in all the large inteationai cartels, particularly the cartel of rolled rav-steel producte (ziu), the central.. opean cartel for rolled steel, the :internationel union for rolled wire, the ia~ tertitional rail cartel (IMBA), the international cartel of vice products (IWE O), the intexnatioriil cable cartes, the international cartel of electric light bulbs, not to mantion a number of smaller agreements. Of the large international cartels in which the Czech oslovak chemical industry participated one may mention the "Carbow Iiorit41rsioa" cartel in Frankfurt am Main and Amatezam for activa- ted charcoal; the f'e* r oeil; eon syicate, -'Elpro", for chlorine and eblorine products and caustic poteeh; the international saccharin cartel; a!d cartel agreementa conaerniri .formic acid, aodium per borate, sodium peroxide, biamath salts, benzoic acid, permangan- ate, citric acid, terrocyelidee, oxalic acid, carbide, borax, ao dium crate, etc. In addition to financial participation and cartel agreements, foreign monopoly orgeniaationa reached into our foreign trade alao tha ,"' i bPuvut.P i Uc -ea. This is true partiaulerly of elec- trical engineering, redic, engineering, end bell bearings, in which foreign aoncerna demanded advantageoua monopoly poaitione im our expo. From the sketch which we have drawn of Czecbo*lovsk prewar foreign t rede it La car that a thorough ire +rovesent of the eitue- tivn ebaoiutely re fired rebuilding its 'fie, is edditior to tree- ing our foreit tam, like the tiro eetioris] ems, of sll 33 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 capitalist parasit a partieu].arly of the fetters with which f'ore1 n uonopoiy capital- bound It. This goal was oxpreesed c1earw -2 by K nt Got ald in the preparations for our first Five~Year Plan. At a apecia L meeting of the Central Planning Co i sioon on to October 19L7 he announced that "Czechoa1ovak industry must be reoriented, away from those branches in which before the war we were able to compete on world rrkets on the basis of starvation wages (a in the prc uction oW gloves, toys, etc, and in some cases in textile and glass production), toward those branches of industry for which we have a particularly favorable background roaki g it possibie to self. procbrcts on foreign markets p This is true of the tal industry, particu1ar1y heavy machinebutiding, and also the chcal industry " 4Klenient Gttwa 19k49, published by Svobc , 1919, page 240). In a later speech on 10 September 1950, In Karvine, YQent Gottweid said "In order for our economy to develop in the best poseible mariner and to brim, our people success and a goad life we mast orient ourselves pazrti.cu1ar1y toward that kind, of production for which we have the best domeetic raw mate rials and for which we a1 o have a permanent market assured abroad... We can see that fewer imported raw materially are required for heavy industry than for light industry, for instance, for the leatber~ corking a textile industries.,. Aa regards exports of our prod ucts we know that we will always find a market for the products of heavy ma y, particularly in the people 'e denDcracies Vhich re- .ee$ant +ttwel~d, .~ q.tire theta for their construction'' (}3 publiehed by the tom, 1953, pmt 266). It yes eecsery to cbaee the struata Of our entire tiofti2 , eat, incia4i*g fore trede, end plsae it on a aev foundatio acoerdie~ to the oe edof our pia socialist ind as trielisatton. It wee nacssssfl to build up eft eeomy eapeble of 34 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 reei$ting a].1. preeeure z4 di cri Lion, t~hich would be a poei> tive ei ut in the eyed of eaonoic cooperation with the Soviet ''~i the 1e'a tq rm~-i6 b of ape en Aaiia. It was there 'are neceseary to buU4 up a p overfu1 Davy ^ duatry, and alongside it to prerve and develop further all that vas healthy, viabae, at aw.caaaful in the other branches of in^ c e ry Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 I III ~.cHIN rG tE CQRNST ONE 3? OUR 'O The problem of Czechoslovak foreign true wvuia uot be ped properly if we were xurt fui1y aware of the radical, abso1ute~ ly vo1utio ry changc which has occurred throughout our entire tuitional economy by bui34ing up heavy industry an 1 transferria the emphaas :fia iudu~'trial p .action to machirnebui34ing. Thia buildup, directed toward the development principally of hetivy maQhinebuilding, was a basic element ~.n vhe firsu ~.V- Year Plen. It waa intended primarily to prorate our own socialist i uatrialization as well as the chanization of agriculture, which was necessary for the transfer to large>acale agricultural pA WV t4'AOt1 f.~7i R w&. - t4' --- x~ Wig r M~ w~v~ir.tlv~w ~M' '~li`Mr.v ~KJ-.~4~ni0M enhanced the capacity of our ition to defend itself, It was also irtant for foreigi trsde: it reduced our dependence on inorts of machixary and equipment which we did not formerly produce and. which made us open to diacrimination, end it also gave our expert a structural supplementation corresponding to its option toward further expa kted economic cooperation with the Soviet Union and the people r 8 d aciea . These countries also need the Eet vary kixda of maChinery for developing their orna ir4uetry, agriculture, aid tran ort tion, and therefore it wee aece~teary to provide them primarily with the neceeer y machinery anti industrial equtpunt. Thee were the reason why the buildup oz our la-ehinebuild- iag tudustry was the principal eft in the first Five-gear Plan. the of ~c~1ai P'~vdu~tic 1n that first livee r Flan it was edt ~ that output of t a etalvorking it uatry beset 1.98 eat 1953 would increase by 93 percent, i?e~, double. The planned idcr s$e for this it Iua> try vs. the greatest of any i3*uetry. Nevertheless, in fuUt11g 36 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 our first Five-Year Plen it vas found that the planned inereaae could be not only aehieve but far surpaBsed; the original goal vaa thus revived and the final result wa that Caechoelovak machine- bui).ding production during the first FivewYear Plan increased by 224.$ percent if we consider that even 19188 far exceeded the pre. war level and that pr action increased further in 1954 and 1955 - considerably sn in certain sector -- we can see that at the be- sinning of cur second Five-tear Plan our present eachinebui1ding production is about 4 tires the prewar level R At the acme tits it should be noted that even before the war in a nwuber of respects we had a relatively aciv raced machinebui1&t in industry ell. of whose ,products made out well on foreign markets. Such pants as the Skoda Works in Plzen., the Ceekou revska>Kolbel? Danek, the Vitkovice Ironworks, at4 the three o macht.nebuilding plants (the First Brno, I(ralovo Pole, and the 2brojovI a) in certain branchee of machinebuilding stood up against the sharpest roreign co~etition and their proctucta, thanks to the akil a. ability of our workers technicians, penetrated markets near and far. When we realize that the prewar scope of production of these large plants and of small m chine-bui1 tsg pl ants km increase:t o that the ins duatry nov produces about t times sa mt~ch as before the war, then on]y can we underetard the size of the change vhich has been achieved. The high production level has been made posaible1r extensive inveet- Thntle, i11cre1sing the number of a ip3.oye~e in this iMuatry, and raising the productivity of their labor. In the volume of ite production machinebai34ing is t - i'er ahead of all other branches of thdu$t17 vtt before the War it vaa surpassed by textiles, at that tip the largest Csechostovak iad try. Zn 19 velu. of ehinebuiLdiflg pr4uetion r 37 w Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 was a7.8 of total industrial prc4uctton, while that of til w88 only 8.5 percent. t_s~.t__ I ~.1u.Y. 1 nvnd~ ntwi #f~fiitsd#rM~r 'Phis vo.LUEne o& ~.+ aww. w Vi. an expressly socielist character ark strengthens our poaitiou on worl4 rkets. In the new F1ve Year Plan the total grass production o in- duetry is to it~cx~ease by 50 pexcent~ of this total the output or the taeans of production is to increase by 57 perceut and that of iizachnebui1diu, as the leading element in industry, by 83 percent. By this production lncreaae, which will be achie: in part by in- creaaiu the tecunicas quaIi y of machinery and equipinent, vs I?111 bring about a substantial increase in the taciunical, etar4axG of all branches of the national economy, an ~niprovement in tn,e caps- city of the nation to defy itself!, atl a greet increase in our ability to export. e litativ, Recouatru~ction of chinebuih~.i, The production incraage eque1 to 1 ti c the prwar level, 24 new u chinebuilding plants, tie than 25 percent of total duaw trial production -- these are the art4e f igurea .ahowring the quan' t; tative g th achtev d in the Czecoalovek machinebut ag indua> try. Thia quentitative advance is associated with qualttetive chance, to less i nortintt, concerning the structure of machine- building. The t~ehinebuilIiplants are producing every year t only con8ider'8bly greater cpisntitiea of pr?dncta but are turning out also eve better products a: are expanding their production program. Even if, ae has been pointed out already, es had ift many re> epente a -4eve1ad atiMbui3ditag inlduetry even b *tors the war, large sectors of the f1 3A v re nevertheless *e1eatM sad 38 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 sow not pressted at all. t j 1flL3 onnect d pr' X'11 Ka i the is uence of forei o1ies on our prewar ecor y, which was atilt ..1 .Ts~c~ P41u.a1 ~' a~wtilU~aiot~niYf&h '~!Y"itF Cepitaiit c- ' be efforts of the Swedish cone cern SF e dial riot have our owi antifriction bearings and were condemned to import this key product . 8i uilarly the getetlt sno w poly of the i'crei. onceraS ?Mips aud Siemens i ed the dev'el> opment of our own electrical>engineeri~ indi try tnc1ud1cg radio ertgiueering. Thus it ;? ?eaented a basic change in our machine buildilig industry when, with the technica1 ai.i of the Soviet Uu.on, we built up our own production of anti`iction bearings and deve1> opecL our on e~.ectrica1 etagineeriag to be one of the most lmportant sectors of chinebui1cU ? The enort ?s problems encountered will be i ,?cated by the tact that, fog'" 2i i6, for our :o bear ~ ,e plants we were obliged to produce arouu 150 special machitiee, ap- paratU, end measuring i~a-st T fltB. In 1953 alone rnore than technological tuetO had to be eo3ire in be8ri productiou with , continuing axp ion of the productiOn prom (cr. Tekme p1ccoit v tt a iletce u 8 (Technical grogrese in the Gottvald FivteMyesr Plan ~" eah tel~ti1ding~, 8L, 1955, page 231). Similarly in other branches, wherein we were formerly eon- d cou~l1et@].y or pri merily to icapartS, we have built up our ova prodhuction which bas in large pert become the basis of our new ex- ports This applies primar ].y to power esgiaeerin, eqjipment for the chemical industry, laud roUIn?aiU eQjtizeeent, but it is true el eo of ae chi r for the test, rubber, polygi'eic$ iidu*" tries, a the pothotioe or edictal instrumsnt$ sat equip t, vs' r s elee'ias1 eppUsncee en etpiii t, etc ? At the sere Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 th atry in whici we achlev aucceaa in exportation before t1 var S. fl in taetaiwork ng a4 wood orUug ttachir3e tools, engineA , ~~ l ?= vehiciea, preclalon mechaz 1asr !machinery for the food lndustry, s agricultu1 metaines "Sinae the war zechoalovakia has perforuiect a miracle in mecbinebuilding. As a specialist I can say that nowhere in the vorid have I sari such a high- ia1i.ty ~. i xtenaive survey of ma- chinebuilding products." Thus the dev'e went of our mach1nebui 4 ing industry was characteri2ed by Cartos Haydn; a Brazilian i xIus trielist from Sao Paulo, one of the more than 2,000 foreign vial> tors to the fist c'i nebui]4ing exhibition held in 1955 in Brao. At his exhibition, which had 1,004 ambits and was attend by 850,000 pec 1e; 1nc~lud1ng guests from 57 foreign countries, Ozeeho> a iovakia yes ahaVn to be a eountry in a leading position in inter natio 3, trade in machinery In 1956, at the aecot1 r achinebui1d... ing exhibition in moo, we wx11 be able to see that the pructaon erAd export deveIo ment of our machinebu134ing inductry continues along with uninterrup ed improvement in technolo y. d'e~hni,.o~l a ~e in lchizu~~ti.ldi For a general picture of the size eahieved by the Czecho> a3,ovak rm#chinebuiLding intuatry it may be pointed out that we are tc y producing huge dredgea (up to 1,200 tone in weight) which can trap s and dump a thotaand cubic mstere pad hour end replace the labor o: several thoueaM porkers, We are also making the i * t varte machinery for the coal iudizatry, sucb as mine combines std :Locomotives, pn 9ctin and1 ari1UU ms hinery, and faeewoutttg .. ehieery? we are bui1JU%$ belt trnac*$ end ey*t $ of rolling equipt; shims ter eerubbieg, grsding, and wing pls*te'. for co*l ores; la e 1 and ' o e ieetric paw plants 40 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 aI1y hl Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 tractive force at the drawbar. A n 55.horsepower 1500 auto bile engine, f'or clvfiac~ vehicles. The first televises ioti tz ae 'tt in pra, ue Petz'in, etc. (f. Tpokrk v 1!9.+nLLr~r"lArrwrr ...e.tr.9 Y +.4....- lFd..r.r 2~.u.wro-nie~si ~f11e.wl~oh 1 r-n1 ~.~w eyG 4 i $~ a w44 iC ~-`+;JYW U~,rl3sfk+4?' 47tIJ.liiii Li~14V4 `bCi~OirYIiA.M4iQJ. i A'W&iifai7q- 4$ tliiG Gottva1t. Five~Ye.,~: ?i ehitebui .ng3, SNTL~ 1955, pagea ]) i6). ~echniaal Aid t1e vl.et ion The technical peas achieved by Czechna1ovek mainebuii~w ing is in large part d to the acientific anti techt ica1 coU boo -aticrn with t1 Soviet ion a~ to t?Uir ; orier for cowpiex c .M ehinea7 for he USSR in Czeehoalovik plants according to Soviet documentatiof. In the perk cal Stro4ireBka vyr ba ( chinebai1ci ing ProdUctianl e No 11, 1955 the experiences gained in this co+ laboration is the V. T. Leninl Plants in ?en are collected, show< ing clearly the importance o f Soviet technical aid for the prog- r+ of Czechoslovak maehinebuiUing. For exau 1e, then to eo1~ laboration with the USSR it has boen possible to carry out the de~ velop>c t and construction o?' very heavy machine tools which were previously imported. into Czechoslovakia< One nia hire of Chia type ie the new C 3154-D k lathe with a dlaraeter of 3, 150 millimeters a?td bed leis of ltom, 20, 440, and 25, 004 millimet . On the baeis of documeata supplied by the Soviet Dion we have begun prow ducing large globoid teeth for setting the rota of block stiff, end producing l7"roA1. levelers, use aperetin precision is about 10 gradee higher than that of wetchmlaking. l Bern alachinee have aleo b? produce for the cuttiaag lire of broom-strip rolling ilia, and mmiipulstin a pm for block finis ie being pro- cbuavl eccording to Soviet doaum~at$. Reouperatiou miiahinea have been code for 8oviet c1ical plea, for the eq tp t ueed to possible for the Vi I. Lift Plants to bee en iuortaMt par i- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 of several plants th ughout the rid px ucing eq.ttpment for heavy theui tr y, Amng pvw .u+ ?ia~ eiuinaeut ye t ay utiau the manur'acture of 8m811 3OO4i1oVatt DC turbine uip t, which has niate it posaible to deve1c the tec1ino1oy of turbine blades a enrich thia tec1rno1og by the addition of items previously 1WhOWfl ~ such as, for e t iei dreving shaped pert, eta. De1iver~ ie$ of stem turbines are very i aartaat for work on the ata arM d?vation of these mac1 ine$, 'while delivery of LompenSatoo, ti flS" formes, at1 othax' products hea ode it passible to 1a) the four ciatioiis for the easier solution of tasks of building the p oer base in Czechoslovakia T $' a i i~i~{i Iii Vi ilrAdySuda7M v seccrnLI Fiveear ~i P1at1 c c+ CMechoelo k Nia hi ebui)4" ~MP ei ~.ww. In .,...,. ,..... a.. p.a . ~ inga &a the ~, ~ ~.R1/~.:~Fto pr~t b"b id+ w. ezt I n t1UtI`3 l a.c tof. with new tam ithi ch must be di.charg by further technical deve1opu t. The orgr 1zationa1 reqjuire t for this is the eatab1i.ehment of three machiaebuilditg ?m.nietriea, vhiah was aahieved by the end of 1955; the Mdniatry or Bevy l4aehiae Bui1di.i, the Ministry of Pre ciaion Machinebuilding, and the Ministry of the Automobile 1t~uea try and Mricultursl Machinery. One of the most icortant gcel.s is providing for pawerwen> gineeriug cortstxuctian by t nS of advance c machiuea. In de1iverF ing 85-rae avatt hydro turbi and geiierators for the target h - droelectric diet at Orlik, with ai drop of 71.5 maters, cad for the hy& :etc pover. p3ant at Lipno, .Lt the ma cI iaery involved ie of dimene1ons and aapecities hitherto evsx' produced in zechoBlo> vim. At the aa~e time we ~haU ao)Ze the probte a oaiat*t vith the comatruction of tea pr plants th LOO I *e tt uaite vperat at 180 at o ms es i a mature of O dep'eO$ cam. tS.e with #tees boil with c itieS tce$ ptr h ? Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The deveiopment of a new series of electriw m,tore 'i1th higher ef. iciency, reduet? crn in trap tormer melee, the design of electric pover for -tnes, the ~ch?ft to ieae1 lectric loco r tives, and the eiectrification of the railroad. netvork -w these are electrical?en- gineering ,Jobe which will require the development of chi, eb'uil4- i.ng technology. More numerctze and no leon important viii be the jobs of n ?chii ebuUding connected with the thi nery and. equipment used to mechanize heavy labor in ell brace of induetry< Improvement in mine equipment, delivery of ore- and coal-.dreuing dente; the c_on< ? action of metaUurgical equipr t, particularly for roli,i. g mills, and the redeeigu of a aeries of dredgee are eziang these goals. airn liar tasks arm enco.mtered in the construction of new chemical plants refiring the mastery of higgb-preaeure catalytic synthetic proce~$eB, intensification of aheioel process by the use of high or lore tezeraturee, and the tranaiti on to continuous processee cf itWut, filtration, and drying. In the food it Iuatry, as in lilt industry, it will. be nece$aery to perfect production techziolvgr by mews of meoh*nical a pmant and to expand production of equipment for factor~r tarapcrtstivaz; in agricultural aachinebuilding progM real rs*at be continued in the develcp zit of mode element, lacking in the codex die ion of plaht and and l production. For the conetruetian iaiuu r it will be n ceuery to develop and prow duce a broM variety of as chin ocy azxi equips ut to mechaii?e the produati m of bui1U m?t els, the production of prefabricated e -.ent?, cos tructiv itself, Vhile arch. - and equipment amt be built to 3 the eao?i Cation eM repair of huge rsilr sL 1i a. tII! d1d *].e of course cwt b! isfie6 vitb the vlarie' of cbisary wed for eebaal- production purpo- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The taa1t1 to ire pr?: duetive shaping, ie1d leg, and cutM tit mac ne requires the deve u t art production of vezy ef~ ficiet cotruetion, sin~,poae, ad apecia). chin.ery equipped with speaiai attaeFnta aced with him automated open atis. This runs that c1iiiebui1din production steep, duri the n Five-Yesx Plan, will ucdergn a profound to uiasi in rove-Wit, the range of witch is tiied in the th a concerni fur- ther teeiuticai deve opmtint off' Czeeho 1ovok iz1uetry p z1 ii het in September 1955 by the Centrel Co ttee, C, end, he government. Theae state primarily that, in the interest of further aeveiop nt and imprevemen in technical eta rde in machinebui1,diag, the roles lowing gDala muht be fulfilled s 1 w deveiop progreaaive technology pri~z'i1y naea off' baaic is rtence er in those which offer tie best prospect& thin includes pover nerring vqu puieat, Diesel engines, mining a metaurgic*il equipmt, cemical equipment, certain food-iiiustrw e pent, ahips 1occmotives, Special. freight cars; highway aucl conatructiof iflE+i!t.S, variOUs equipment for mechani< etion, elec- tric power en 1n+ tng, $ r ing e4 textile machine, agricu1~ tuxgi machines, tractors ari n torcyclea, mathematical and etatiaw tical teahi , i trial electrical engineering, equipment for autation, a meesuring laboratory itrumenta. 2. Aa a priority goal we must provide for the deveLopeeit atttl production of hi,ts1tty eutti ng, fang, a fours I aaa ~ chibee xLeae.aanyy `or th$ introthietiozt or progruive ?orms of ccn+ tines pr'oduation ascbtnebutding. ',fie ameahinars aaat be of a a lit Diu vew1t. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 3. As rem the d rnizetion of eauip t ire o own Wac hinebuilntg I $t~. `, we must: keep in wi d i a o #i$ of tert speclal rnachin and i is .provide for the deve1 men; and production of our own iacbizry ar4 equipnt as needed. '* The teehao1o3y of macbinebuildinj production v113. thus be raised by the transition to progressive forms of continuous pro- chrction, particularly by the organization of p]ces of work accor- dine to terial, by the formatior;~ of shops with a closed prnduc> tion c;y1e, etch 0 5. In the foundriee forgea there will be a'icantinua4 tion of the a ~chanisatiQrt oP atxenuous work and progreeaive meth- ods in the production of ae ,cried producta, each as precision aaetiag aed shell mr~lding, "rave' casting, efficient "naUtiov n1 , aiachine eheping of large aaetin , p e ieion forging, rotary for- ging, pressing, etc. this picture of devet in the second Five-Year Flat, in which trsehinebuiidiug will. be faced with such great tasks and will at the same t expand ar'4 perfect its production base, we can see the outlook for #"urther decisive progress throughout ma- ch bui1dtDg technology. On he basis o the eantinuaI MY elop- ut of progressive to a1o y ec slovak -ehi bgi)Aing viii be able in still greater measure to fulfill its mission is deliv.. ering inez7 a eo piete fact- a iiint to ccpit ?ee parts of the world in order to help bUUd ug prod.uction and proyide evic ence of the technical progress of Coe el o'ak maohi ldi Thia viii also atrergthen the ptil-tion of our mecbia+eba~tld iag in the try, Mr4ervt i ebui14i*g technology is of course 10 r d that it is praoticaiy i pia a to pr uoe all types of ate , Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 nor is it desirable. For ie ren we all t only contit tc~ +. & O?t speciei Cth7 oe fron the Soviet tht n and certain per. pl&s 4GLUOC'$CiS (the Oman erratic Bepnblic, IluagaZ7f po~ 4) but + shall alao gratialiy negotiate 4th them the coordi~ ziatiork Of production pr'ograia in order that uiacbinebui1cU produc tion can be built up on the fou4aticn of large production ran . In 196, for exa le, accordin to sn ag tent concluded on 6 iebruary 1956, the i ort Of machinery from the Germ De io cratic Republic to Czec1'osiovakie Wi11 increase by 55 percent over the 1955 level. At the aame time, howeve;, the Gerien Democratic Republic will triple it orte of machine8 The two rtner3 viii i .i........? ~wreaae t.FM~dheik; win i ow,tc of f Wei W1 1 wM iV d1' t.A.I ~eV~NM M ~- etveen tea will make it poaaible to intensify apecialisation a r. t n m p uc't?ou We ze thus 'got ii 1titig ? OX't3 special achifle8 Which we do of produce ourselve6, on the cones trey, we are expBnd just this type of import wherever it can help in our construction ?on pux'posee of our construction it is important to have our OWu ; uctioa of machines for the i et inortant inth*r'ies ao that raa binebuitiing can provides the necessery basis for our ex- porte and so that in respect to tnachineer T We Viii not be subject to the danger of diecrition U Was the sweet vhen we were de- pe!ent an t ore? n wncpoi y concerns in certain ka r seine iteaa and thus at their mercy. Our pmt machiinebuilding industry is a secure foi etion for our soc 1st induatriali ation eat to mechanization of agriculture, sad ftfl protects u$ eg~tiust dis? ci1miaetion abrvswt? The e,vIa 3aatitatiYe sad SI*lit*tIV things s*#eh plan- nifig bis bit sit iti o~ asbinebui]4iUg sines 19l5 Is nitur' Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 a11y reflectec. in our c p `t !# in which re'ehiaes bare becoie the 1ecdi~ .ten, far suz'asein he other br&tcc of ius yr y . The growth in the shere of tchinery in total Cxechoslovk exports can be awn clearly from the fol1owf Burvey+ Item ~1CMn~1n+R'NA ~ "t N~! M r1sl~Mt~+u Machtnebu'ildirLj j~sr~w w 1 ;2'a a perceftt*if total exports I FAa 6,L. 22.9 Io.o 36.3 311..O 1.o it is ciear from the table whit a fti? amenta1 chance haS oca curred In the structure of ow e~orta. hereus the proportion of rrehine$ 1r. tota.1 exports his i.ncreaao. more than 6-fold since 1937 and by almost 50 percent talc) since 13; the proportion of con' awner goods ixaa total export. his fellers by more than ham. 'hereaa before the war Gzechos1ovekia wci a negative Foreign-trade balance in machity)the balance in this field is now pos1tive. This posi> tive foreign-trade balance in machinery was achieved as early as the last year of the Two-Year ? lar-, 1948, ar4 the expansion of rw ~ chinebui1ding durir~ the Five-Year Flan: hts further impzroved the trade balance in. machinery. C choalovakia's ode Glance in Machinery (Millions of 1937 o ' ) Year... 1929 681.0 1339O ' 658 1937 8u.o 982.0 - 171 19i8 2,135.1 735 ? +1,381.6 The inked thrtio ? e11 iii ac 1 t contiu du t the Five .!ear Plan and su quent years 8m tMt C bOB1 c1a is nov ark, t >*t 1~or t fliers of apac t Gad iMuletrte1 eg4p- t in t ]ii cW-rce, ?OU)N$r1Y itt V th field~ We have a ble a I.ea4i pce ttioe Pert?,1*r1y eachtM teole, Diesel ~ des, pU4*Sr min e1actrioai, aeerifla equ ent, abok iu8 "~-: may, etc. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Consume Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 A cba teriatic, of our expo a of chinery is the y va, et i, since they include tf3ac1 a and ir~atruwinta of all type, from precision rnea8>.wtfl inatrl nta to gi ntic >ahines atd equip- ment for et tine i. du trim pi ita. In addition to machinery for i ustry t various vehic1e we art a1 o cot u> r soda such as radio receivers, sewi nit chimes, and other prtcua . We $ P to the Soviet Union pr1riari1y proth ets of heaver chic eb ii1c1i m con ie Ve equip l t for tii a plants, a v-ieu W i& rly for electric power pl ants . If the So!vlet t'nlan has outlined ~ (ratKUoG3 n ? gala for i ncreaaed itiustri 1 production a con atruction in to sixth Fi"v>Y~ar 1a n, we may take deli t in the fact that ye too are cot?tribt Stir ? to the realization of these g i by supplying varioua machinery aLad equipment - Mesa export8 are fourr3 iri the great conat etion? of C, r sm and are oontributin to the accelerated develop t of the Soviet wining, paver, meta1- lurgi.aal, taachinebuildir, , chemical, textile, gags, leasther vorky ins, acid f x a i nduatriea of cour8e on a rm.ch uore modest scale then domestic Soviet industrial products. No lees import tare deliveries of Czechosiovek machinery and in trii l er ptsent to the people's demo ciss . There is amt interest ire capitalist countries as well in Csechoalovek matinery, particularly in ir4ustrially ut 1erde~ veloped couotriea which, with the aid of our mechiriery awl, equip_ atertt, can build up their dart induetry vithaut the danger of brie ing in forei~r- cepital interests I melon deliverieaa to these oountriee we frequently are cerryii out older t*CMitioae. For exarWle, one qua it of a sugar fa sa in the vorLd operate with eqy$ nt delivered, a$ le>aet in poet, by Oseaho$La!sk sac- tioslee. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 oztei4on of vveetaent Utii or by :ar the greatest importenoe for our exporta are pr4> ucts of heavy rnachitebui)4in, including particu ly e,cporte of" inv tment units, i . e. , coap1ete equipment for entire factories eu t electric power' plants. These comprisee gigsntic unite ioi'th sever. ul hurxired miUion crate for a single complete outfit weighir many t io a ` tones , For e: Quzp1e~ he C ^hanie i a e1eotri-eel egi1pi. ent fory a steam electric po~ger p1 t of i ti 200 gaM wattn' capacity weighs 11,t tons anti thug requirea i,hoo freight Cara to tranaport it. ( ce. Za aicni obcbgd (Foreign ?rade 3, No U, 1953, article by J. A. Zvoboda on the export of investment units), lnveet at unf to naist be ptod.uced and aeesemb1 d so that they will meet he special requirements of the plant for which they aye iitez4ed they must be carefully "tceilored." proctucjng this very complex Lpnsernt a uuuber of factoriea participate, ami their work must be proper? y coordi ted by the chief auppUer. For ex. ampp1e, in suppLying equipu nt for a ceramic plant in E pt, for whi the chief auppUer was Keramoetro j, is Blar p, 89 aubcon~ tracttoera participated. The productiou of iuvetatme ut untta ueually takes a year, and betare production csen be undertekea long p par> o tory snd deaigu work t be c 1erted The very fact that VzechoP1o'i' `ia ifw eiJle to a ~.y in11eY" went unite on auk a large scale that p ,ape41a1 fareign4rade en tes rise >- eohnoexport -- has beer suet up for thie purpaae is the best evict?, ot' the high techiUcal level ar potentie1 of our heeiry machinebu.i141its try. to a report to the 2Kth Qo se of teoaataiat Pertyy of Cze 3. vekia, on 26 Miy 9, t n potoeky, then Prime Min- iater, epc of the i tace of eorta of Czecboio*ik ss ithi t Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 "We cannot aitn for iiit profite, which are bred on the explottetion o?' industrially' ur erdeve oped countri and the effort to keep tie countries u erdevelop as 1on ao SSi` 3.e. We at support the de .opineut of industry lri these countriea au give these not only cot8uc goods but parUcuiarly chinez'y, fac~ toriea, electric power plants, augar `e .toriea laooeotivee, etc ? : store or affiance with the people's den crecies is of euch grert 1ot4fl the capitalist intention of keepiug their allies iriduatrieLiy backvard and depe ent, we intend to help them turd irziustrial ,evert with the knowledge that this devei- opn t will e our a11innce more valuable and their consu~tion and the poaeibility of mutua1 a change of gads with uE viii rise. Ii" our foreign trade is to be thus oriented our production rat be adapted. to this orie itat~.on*" Te.~efore we helve pisced the main euphu?s in our econom r prim iLy on machinebui].di 3 an for this sane reason we have a1. teed the structure at' our xox' and are continuing in tbis de.. veivp tt in the second 'ive.Year Plan. We believe at the name time that this development favora not of y us but that by exporting mM cbifez7, which makes poaeibLe exte i ieparta t Csechos3.ovakLe, we are also beet aeng our fcign?trede pale. And only this type of foreit trade fTm whiah both perties derive advantages is healthy aed ddesible at long Ming. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 C~ABT!t. IV 'hE EXPO 8UCC Q~' Tip i ZEc OS OVAK MA IL1 IG AND I AUAJRGICAL LiD~I What better characterizes the export auceess of our indus~ tries than the tact that Caechoalovak producte and the syebo1 "ode in G2echo~lovaaa are " ars t ti 'ou out ''h ~. 1Mi ech., ~. ~`G +~~.a~r~v v~.,-or~.9 Whe1R ,~~.,,mdl eaa deserta of the Middle Bast and over the broad junglea of southeast Aaia. " Thus to "fly. i dip1c t", the Belgian charge P of f eires Wuis de Ban, M presscd hi ii' about our Ae + I5 aircx~ft. Be teak one in Prague and flew with it from Brusaeia to Milan, Castel Benito, Ceiro, Ba d, Teheran, Shard jak, Karachi, New Delhi, Calcutta, a1 Ban's good to Bankok. Many a tour flyers ctnd proi'eesiona1 pilots have expressed themselvea in similar terms concerning our apart aircraft. When- ever use aircraft are presented at foreign fairs they cause a sen6ation, as occurred in DJakarta and Toronto, where our sircraft: won enore success. As in the case of the motorcyelea each such success brings rare ordera >? to inesta, aitzerle, Argentina, Austria. We are producing and selling new types of sport ar training airerarti Aeroa from het in Iovice, Treners from More vary in Otrokovice; and Sokole from Orlieen in hocen. There is e]so a great deal of iaterest in the Brigadyre from Choceu; these are used for the aerial dusting of crops with peeticidea. Argeaa titer, for exale, has taken 100 of these aircraft. In 1915) ageitast very strong interaatiotSl coaetition from gland, the USA, West any, Austria, and Hungary, we received an oz'ler for 54 boor tivee for the IMian railroad eyatetia, surely a great achievement for C$echoeovs irtdustr~r. We are ceding Ir*. die 2,450 railroad oars, also on the basis of a victory in co . titioa againat 37 firma from all. o ' the world. ; .a has thus b coi a oae of our greatest posers of 1oeotivea ana rind cam. At the oaa time the csecbi*lovsk lodarctiv. factories (the V. 1. Ianiit Plants in Plsen a the SCalav+a) sad our Tatra rsiZromit ' pleats in 8t2es>8tovice, B iehov, srud Ceska Lip. 73 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 are occupied in filing Viers for other countries as wed.. Rem Gently we is ve sent epec T aal care to the U2$R, freightca rs to Korea, and express cars to .tea and Turkey. One of the 1a r eat export ordere in the entire hietgry of Czechoslovak foreign tra4e is the dei.ivery of 150 electric c1eanw ing Joao i e to the Soviet iJriou. feary one electric lc co a tives from the v. Z. enin Plante in Pizen are worlth to colete $aatisfaction in Siberian and Chiuese: aurrface ia1 s. They wei,h 150 torte and turn out 2,100 ho epower. In th v. 1. Leniii Plante they say with pride that these locomotives ere uaequa1ied by as ny coupe- titive ma 3hinex'y. The 5tavoloko Plants in 1Motin u Prahy ae small mine 1o- eoITDtiVe to Trance, Sweden, and Turkey as veil as other countries. in 1955 the adminiaatration of the pboaphate nines in Jordan or - dared 200 mine tipple care for the fleU line. A1thou~h the over vas Xi]. it wee promising for the future, while a difficult con dition wss attached: the cars had to be delivered within 2 rxinths. The Stalingrad Plants in Liskovec were quite ready to inset this co> iition aand won the order. They p eeled with sir f1e i? bility in the case of an order for Argentina in which it was ne- cessary to rr et apecial technical requirements. "3esterky" ( li zerde ) is then emgiven by the people to the agile battery carte uset to carry emaaIl lade in factories enri at railroad etattvne. The Deain l chinebuilding ?IRnta export them to the Sov et Union, A>f triaa, RumRQia, Vie, ypt, Sweden, Af g , gam, ~hf**, ate, T elaviaa. During that pive?Iear Ply vs have built a new br nch of exports in the com$truatiot of Wis. The nieeel.eleetria psuen~ ger ships produae~ in the arhipysze, w p1yt the Voigs 7' Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 the Don, arcs floating hots in Wh?Ch 300 traveiers and tour. it find the uat CQmtOX'table aecomodations. We have sent 20 or 30 tugboats to the Soviet Union; they are uBed nay both on Soviet rivers and in aaaatal shipping on the Black Sea. 'hy are r ecogilized to be of the hest quality in the So.. viet Union. These tizgboats an draw as canny as eight 1,OOO ton barges which generally correaponda to the load carried by 530 fifteen4on freightcars~ The third type of floating stock which we produce r or exM port is the flostiug suction dredges which are de by the Bohew man shipyards in Jolesovice. These inn coloasi work ors Siberian rivers whilh they reach by water dawn the rivers and cads of Eurapei throe Sacse~in, and thence by sea to the Soviet eystem of rivere and awls. Trarusportation eonditiomla alone show how aol id. the canaitructior imat be In one hour the dry can tear e port about 350 cubic meters of alluvium. The operation of the en~ tiro dredge is controlled by a single person while the rest of the cre-r 10 there only to see that all the equipment ie is order and works f.tleaaly. "Tour dredge is a terrific machine, " said one of the most experienced Vo1a creation machinists, Egiaecr IO akhaniti. "in a short time it has gained the zespect of the Volga woitee. Believe me, that's not eaayi smnce our river fleet ie now equipped with such advanced machinery as our Soz~ov ahipe." Theee v~zga are not only the higheat re mr d for our wok but an inspiration for further efi'ort. a%Ihereas in prerr c.ahos2ovaki* the fi eial *M paw poaitioa of fe iii eq ' t, pe #u]ar1t Oei'ini did not pait the prgpez- deve i at a vs hays is our Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 people's der ratio built n ex'tsi ve i ustry of elec.. trical uzeasuriug instruments and te1ecotrcieatieue and radio in- struinents and e j prnent. At a recent exhibition in 3rno mare than 40 pmts engaged in electronic engineering exhibite1 radio inw etrumenta, electronic raeasuriug inntrumeuts far laboratory and i R dustrial use, oscillographa, electrical microscopes, vacuum gibes, incandescent bulbs, and fluorescent tubes, The Testa national enterprises in Bohemia, Moravia, and gio- vakkia nov concentrate all the araiu branches of electronic ern - eering aa4, by expoacti g large otitiee, are perform; valiant service in extec4ing radio operations and the tale thone network. . Pro I1 the TTesla plant in Karlin we sent, telephone central oficee to various cowitz'iea >- aov t recently to China at d Pin* land, where ye received an orler following a very vigorous inter natioaal oon etition. At the plant in Liptovaky Bradek they were forced to increase the pr+pduetion of ~vdern telephone instrw is f or? exert. The aia plant in h ubetin participated in deliv - eries for one of the largest radio stations in the world in china. Production of electronic meaeuxing inotrum tte, which we have de- velc!ped f nothing, is concent'ated in the Br o Tesla plent, wherea fluoreac t tubee axe produeed by Teala in vrahlebi . hia plant they travel in a soft bed of excelsior to Turkeyr the Par East, and Latin America. Enterpriaee is Pardubice, Prelouc, and. Bolesovice eleo work for export, and. these pints nre coc- ted with countries ter ami far aM work for the deYelnpment of modera teleeaomc aetione eagineth g a*1 thus for uMerstaMing an g netic a, for progreet, end pssie. The u of t$is re*t cech in tto r, ice, f e fain on he ele c.1 egneea g p]aatrn aho, rlin, rte, ?rutte~v, with t~biah the *ihaDUkls paut Pzisov it ales; misted. The .76. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Smiohow rizik ulaat won in public competition a large export orw for 60, oingle>ph a electric Inters for Wit, htch is w evid.ence of its gx4 a work. The ?re aov plant exports iow voltage txransformerrs, small rectifiers, and small fans to 20 coon tries, iucluding apt, Pekieten, Th.wna, India, Brazil, Turkey, as the Union of South Africa, In another Slovak plant -y the Krotiipachy they say, with justified pride: "Where is not a si Ie electrical chi use1 in CzecbolsavQkia or exported to the yiet Union, China, Austria, Turkey, Afghanistan, Lebanon, lrrau, or media which does not have as part of its assembly an in- strumeut produced in ?ur p1att." Also the Bratislava Gua~on plants supply important parts for electrical?engitri equipment need iu the eotruetion of ].ere electric power plants in the people's d craciee a i overseas. Once again these products were fortaer- ly iapported, principally from ritzerland. The F.lektro-Prey plants in Jeblaneeke Paseky Tanvald have receive, orders worth millions of craws for the export of small electrical fixtures. "Clara" bulbs from the glassworks in Uiekac illuminate the streets in Bombay and Coped art burn in Austria and dosla vie. In 1955 uev aaf ty iilumiation ec zipment was inatalled at the Leipzig airport; this ccpUpment gz'eat1yy increases larding Dety Ma e rtad by ` ho lovakda. Preoioioa? t nice. ae tics Alen cport Itei The optics]. products cit the nati l enterprisee cal I4ecpt* Iu Pie, Prerov, a*i &stialeva -* tee, mcyvie c8 e8; aaci projectors, ecpyisg a~ en ging iutaute, bieoculare, iiii- ac , doUte8, ara3ytias b 2a*aes, pbp-iua-.1.setiai ?, a*t oar opt a e~ Instruments >> re to th* 30 aountrt*&. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 e C eh~~ ~v~k F1 f ~ 1E1 Or exne 'IW~v~, ? t: v1 _. ?????-? ~-~< ?~-.?_ ? ~?,??. +~ w..~........~??~ ..w +w! w wr M V7M V~MvYii4e_~ 65.W. received even in the TEA, a country vhich s orxe of the not v ced in this field. We have exported tene of thousands of paira of polarizing eyeglasaes. The precision mechanics plants in Bytca export eagravin ; tools, geoimetricai instruments, ani tote1 leveic to Brasil, Buxom; and Uruguay. Qkuula iu !rome~riz exports mic < scopes, waiie tra in B1t ansko exports preciaioa measuring in.atru. tests, the motional enterprise Laboratory Instruments exports vac< uum PUUps and other equipment, ant. Somet in Teplice exports tueas- uring inatrumerrbs An entizre new field, extremely important in the str g 1e for public health, hria been built up in the production of medical instrut tta, in the national entexpriaea Chirac, "Fremn" in end Bloom, Both enterprises are outsta-ndiag exporters. We manu< facture dentists' aira and instruments, diagnostic and micro. struatura]. X>ray machi (aueh as the smallest X-ray inatrument in the world, the I+ dent ), various aiecti cal equipment and eurg cal irstrumenta, injection syringaa, surgical needlea, stetho- scopea, sterilisation drum, and mobile ciinice. ~oeday not oa1y Czechoslovak phyeicias,s but physicians th UghOQt Europe and countries aorosia the a use our inatrur ata and utensils. Preaision aaeahanics inolud the production of Q fiae tas- chiner at sing machines, vhioh are also a successful object of e -ort. Czecho+a3ov k Zets typevriters from the Jan Sve rma Pl nt in k'no can hold their even vith proctuots troe- cou*tries high. ly vaaaed i* this i'iel4 j i iMicsated by the ial reeo~r tint rived is 1 trei1a by they 1 cslIe l the "POrtIbI co** sic,." Ioijrn of c au3,atislg mehiaea hsve siso z'e t y Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 as.1 _._i. ,_ _, _ ~w -_ -- ?- - . . _ . - wil . rri.? Y'ar.W [.N .i. II. w- d Q..:tt"- 7 W 4./P.Pt??a ! afF T CZt (P 7 T Cim:- 9 N /! l1tA Awn 1JA *+w.w.w.. www~.r wMMww r. w,wr4rv W.PF wvvYi.wA.Gf ? ~7ii4/-~ i W7 47Gi~l J..l~O f6llfvc -auna r i tern mope, Canada, g9t'aai1, apt South Africa purchase a eing racizi , Just ae do `turkey, ixic,iee, azd Australia d The eau e an be said of Minerva sewing machines produced in Boekovice to be u by readde clothing plants a tailor shops. A wide variety of electrical appliances and other household furufebinge ?~ washing tmachines, eiectric mixers, stoves, baby carom riages, metal furniture ..< are also successfully exported. Large washing tmachinea and irons are also a ?'t for industrial use. Stoves from the Iva It Plata in 'Crnava are found at Soviet poM lar stations. Alarm clocks from the Cnr'onotecbna Plaat in Sternberk weke up people is Uruguay, Indonesia, and Finland, while locks "Made iii Czechoslovakia" are used in Egypt, Th'key, a Holland. The Jan Sverma Plants in Brno aiao produce hunting and eporw ting rifle$ far a wide variety of urea. If we are to believe the former Pakietan governor, who is himae ` a good hunter, our huut~ ing weal are ataoaig the best in the world. That is Wilt he acid about tbc~a at the Czechosiovak expoaition at the fair in I acni. ICavo, the foz'eignwtrede enterprises, received a letter from an In- donesian hunter who had shot a tiger in to jungle with a small gauge Cseehoe.ovak rifle. Cechoalovoak eslwere calls of inx has achieved real world z'en wn. It ho s raaohed the Pacific Ism and the most re- ixte regions of Africa. In Nigeria, for exauaae, the taetfves, faced with a choice of good* fro s 2; c tntriea, oak for "those wtth the lost ", i.o., with l*eeriptiox iaie in c boeio~ vakie." The asaret of success is bob a lent qty ua~ limiter qty is form sM deaomtfoa of gooda. Therefore the 79 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sao Peulo, I co , Sofia" can be read on the eartona into Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 plants in vrata near Ce a teJovice, in Brno, in Pii& oVo, and r. dr ~ ' wt - ^ - zot i1' gal h-, red cane ~ these 3+- L- f'd r7wlew x ~ . ~r w.... y pr 4ucts to the entire wor 4. iae1 tuba are also a successful export item. Te ' of etgi9a1 Products Ai i ortaat Czechoaiovek nietafurgical p?.anta where in the export of metallurgical products, : which fl1k up a significant p ion of all Czechoslovak a ort& Eren the New IC.ement Gottwald Metallurgical plant is earting increasing quantities of foririge and rolled products to Pr land, Rw ry, the Ge n Democratic Re- public, and t na. A particularly so t' after product is tubing ~- moth tubing and oil piping - vbic1a is used by the Soviet Union, the people's de cracies, and the Caapita1iet countries in ape and overseas. Good proof of the quality of this tubing is the #att that it is being used even in the Gernn Federal Rep bli c, which itself exports this material Furthermore an Austrian comm Paay which took over some oil mires from the Soviet administration has remained loyal to deliveries fry I uncice. The Vitkovice Ironworks also export tubing to a number of ELirape$n and transoceanic countries. Vitkkoviee combines metal1ur" gical production with the msnufacture of structural steel and heavy machirebui]4ing. This plant rolls for export not only rail, large ijuantiti+ of which is used in Eg pt, but alao turns out boilers and 1.1er mills, as well as structuraI steel for Chine, by freu1ic pipia for area, heavy fnrginga for the Soviet Chemical 3z4uatry, role. ate for Soviet metaUurgical p3anta, eqjipmant for Polish coking pleats, rol3*t prattle, t gings ing$, crsl af'ts, fire tubes, tires tar fre -te w ee , a, tee of pro to for ezpcrt to sli ccnti -, 8o Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The Vitkovtce Iron rks 8180 have a great deal of experience in the production of Steel bridge atructures. There are Severa1 bridges in the Soviet Union vhi were sent by Vitkkovice. The Vit> kovice troi w ke a1so played an i> pvrtant part in the ens hp bridge over the Danube connecting Ramie and 3u1gar1a. 6evera1 bridges h a v e alp been sent to r ey. Recent achievements of the Vitkovice bridge> and machine>bui1dera tciie a swim bridge fcw Egypt, which was inctaled by the end of 1955. This bridge, O Mere long, weighing 220 tons, can be turge, in only 3 minutes. Another suob bridge was delivered in 195 Another csechoslovak plant sena.ang bridge constructions abroad is the Steli ad plant in Mistek> skoveo, In 1355 this plant sent to 1'pt the atruetu rQ1 parts for a bridge 102 resters ton and 30 hers wide ark weighing 650 tons. Assembly requires 220,000 rivets. The fact that a Ozec1ioe1+vak plant iron the order for thin bridge in co etition with 1$ leading foreign firms is evidence of the quality of our metallurgical and mschinebuilding plants. The V. 14. i'blotov Plants in Tnec send rail end vsrioua roUeei products to Holland, Widen, Africa, ar4 South America. In 1955: for instance, they sent m than 50,000 tons of rail to Ar> gentina. one-fifth of an the tcrnsge of rolled products turned out ~)t the Gustav Klim t Iromiore, in is tender for ex- port, sod, is cent to 20 c of a.: iee. The zo !orkf!, in Podbrezove Berea cbronic u1o~t in the pre-icy republic and were threst+~aed w i t h p e r m a n e n t s h u t < a rn. T i f e.: rev ful1F Loyet with d do end forte 'u ,,~o t, ?8 countries. For- eign mirkets sbov grest tntere ~ st ., Tomes iteel, si*1 otb~ r prouate rce~ the E Via. Uwrgice1 plaint of the meted Stee3 Mlle, in Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The Pipe4toliing .U*, in Chomutov, keep receiving foreign orders for their tubing, thigh they send to the entire woxld, In 1955 a its from these pie nta to the Soviet Union alone were 15" percent greater then the avert of all exports o' these plants from 1936 to 1938. in additionto the Soviet Union, however, the ckzomutov plants export to ezil; Turkey, India, Indonesia, Aus~ trie, and, recently, to Norway, Widen, a Finland. Alor~ with large cnetallur peal deliveries exports inc1u1 smaller E0c43 from smaller pLantl which aannat be underestimated. The chain plants in Ceska Ves near Jesenc, 111A J.4eau snow chains to northern countries, and cnamercial chains to India and Ceylon. The sarew plants in Kyjov in 1955 produces 120 car- lodas of various sarews and nails for export to China. TheCryv?- hute (Metallurgical Plaxita 1 in Povrle export hundreds and, thou- sands of tans of iron wire to the Soviet Union, Egypt, and l3razil. In the min Icovohut they manufacture electrical eonducting cable which is sent, amrong other countries, to Iceland. The Pohumin Wire Mills alao export cable; in the 5 years that this product has been made here they have turned out 10,000 kilorieters of its, which is mare than the distance from iohumin to Viadivostok Among re cent deliveries we may mention eable for the great freight eable. way in Brasil, which is new being assembled by the workers at m....U..___.1. d r l'IL W .a ~ ... # L- u't t~suo Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 CIiAE"r&R V A N FOUNDATION FOR POR of LX(ET'INDU 3TRY PIDUCTS Planned socialist industrialization requires that the focus of all industry be on heavy industry, whose development tit be more rapid than that of light industry. This requirement was in confiict with the iuduatrial structure which we inherited. from the preMt tnich republic. More the war the textile industry led ali other branches of industry with respect to the number of en loyees, share in total industrial output, and share in exporta. In 1937, for example, textile exports represented one-fourth of all Czecho~ alovak exports, and the share of other branches of light industry was proportionately large; 6.6 percent of all exports were glass products and 5.2 percent were other consumer goods (porcelain, leather goods, wood products, etc). About two-thirds of all tex> the output was exported, Some other branches of industry .? pox. celain production for instance -- were still more dependent on ex- ports than the the i duetry. The world depression and the de- cline in exports represented a real catastrophe for these branches of industry. The preponderance of light industry in our economy and its great dependence on foreign uarkets was inherited partly from Austria-Hungary (since Czechoslovak industry, las has been said previously; Worked principally for the territory of the en- tire former monarchy) and on the other hand resulted from the cap- italist sya em which gave priority to light industry, ainae this type of industry requires less investment and provides great prof- its in exports. of course, during the depression yeera this prof- it vale achieved primarily at the price of starvation wages in. ell industry, and also at the expense oP the domestic gonsw r who paid high prioes for goods which vere domed one foreign markets. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 0 This, for example, was the policy of the sugar cartel, which ex- ported sugar at a fraction of the price paid by domestic consumers. Anothe"r" icegative aspect of the inordinate share in the econ- omy and. export trade head by textile industry and to a certain ex- tent the leatherworking industry as veil was the fact that these branches of industry were almost ex&sively dependent on raw mate- riaals irmorted from aabroed. In certain years this dependence forced us to maintain exports with great effort and great loss only in order to be able to import the necessary cotton, wool, raw hides, and other raw materials. The situation was the mare serious since many of these raw materials were exported again, after only the aaiu~lest processing, in the form of serif iniahed, products (such as cotton in the form c yarn), albeit with profit for the entrepren. eur, although at the expense of workers' wages. This rrich moat be said by v ay of introduction concerning Czechoelovak exports of consumer goods before the war, in order that we may understand the spirit and significance of the changes made after 19I 5 during the Tvo and. Five Year Pans. Baaaaicaally the following problems were solved: 1. The structure of our economy was altered so that the fomts of industrial production was shifted decisively from consu-. mar goods to the means of production. 2. The share of consumer goods in total exports was reduced such that as substantially greater ehaare is occupied by the prod- uctas of the machiaebuilding and >tallurgical induatriee. 3. Dependence on ia~ortaa of raw materiels from aapitaliat countries camas reduced in thoae in4uu8triee Ithiah, because of their special foreigniexehange reii*'enta, did not produce sufficient forei - >hange yle]4. This **sure vu in hare y vith the gen. era) line of soneolidsting .M ae fra* the caa piteUst 3d, Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Planned management of the propartionnl growth of individual branches has meant that the share of the means of production in total Czechoslovak industrial output has increased from 57.8 per cent before the war to 62,3 percent in 1953, while the proportion of consumer goods in total output his dropped from 142 .2 to 37.7 percent in the sari period. This has been achieved by dfectit greater investments toward the output of the means of production than toward light induatry. Thus during the Five-Year Plan machine- building prcd.uetion increased by 224 percent, metallurgical pro- duction by 102 percent, chemical output by 138 percent, power by 110 percent, while output in the textile and readymade goods in- dustry has risen only 50 percent, ceramics 28 percent, glass 21 percent, and. leatherworking 19 percent, The buildup of heavy industry will surpass increase, output of light industry also in the second Five~Year Plan, and this will in turn raise the share of machinebuildtng in total induatrial output and exporte. According to the latest determination machine building represented 27.8 percent of total industrial production, whereas textiles represented only 8.5 percent, readymade goods 2.5 percent, leathervorkitig 2.2 percent, and glass o.9 percent. Where as before the war metalworking and metailurgy occupied 2 percent of all industrial workers and textiles 29 percent, nowadays, with a eouaiderably highSr absolute nuiber of 34ees, 3? percent work in the metallurgical and nachinebuildi .. ng planta, and only 16 per= cent work in textiles and reedymade goods. During the same period the sire of the eta1working a IIhoemsking industry dropped from 6 to 3 percent, ate of the glass inawtry fro* 7 to 2 percent, of the total mzer of iudustrial rorkee. The th'r i the p+ eitsp ire in total orts of icdiv idual braMhu of 13$tt iMustr~- is sbowz by the telloeing tit 85.. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 item l7 193 Textiles 25.0 16,2 6,8 Glass 6.6 6.3 3.1 Other consumer goods except fooda 5.2 11.5 5.1 These figures show clearly how the share of light industry in total industrial production and exports has dropped, following the requirements of socialist industrialization and changes in the structure of exports. It is convenient to note that this decline in textiles from a leading position in Czechoslovak exports corresponds to the gen- eral development of international trade. After a number of dec- ades exports of textiles in world trade are now dropping, whereas exports of machinery are on the rise. This development it quite understandable, since the industrially underdeveloped countries are gradu~lly establishing their awn production of at least ordinary textiles and other consumer goods, so that exports of textiles in world trade are becoming increasingly limited to special types and high-quality produCts, thus reducing total turnover. On the other hand, the gradual induatrialixation of underdeveloped countries is raising the demaM for me-chinery on a world wale and thus increaa- ing their share in international trade. If, therefore, we are at-teching increasing export importance to eeehinary at the expense of textiles, thin corresponds to general develc~pmmeats. The decline in the share of textiles in total Czeahoalovak industrial productiou and exports has aimultaneouely solved, the problem of redueing mr daper4 n*e on ia~orta of rev aaterials trout capita3.iBt dies. This has beet tea in to v : we have ex- pan + atia produeti of Mural fibers (fl*c snrl ) sand ayath a fibera (extifia ,, silk, oel C-ae step). ftbsr*, as 86 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 g1a a fiber) and changed over to raw meterta ~ reported from the Soviet union and the people?s deu~cracies Soviet cotton and wool, Chinese silk, hemp, ra.e, jute, etc. This has made it pos- sibie in the cotton industry, for example, to use cellulose stall pie fiber and artificial silk, as well as raw materials imrported from the USSR and the people's democracies, to such an extent that between i99 and 1953 the proportion of cotton and cellulose sta- ple fiber imported from the capitalist states dropped from 1+5 to 23 percent. It is clear from this how the total trade balance of our textile industry has improved, particularly since with our own production we have replaced the mejoritof previously imported dyes and auxiliary materials, We have proceeded similarly in other branches of light in- dustry in which we were disproportionately dependent on imports from capitalist countries. For example, in the leatherworkin$ in- duetry the nee of pigskins has made it possible for us consider- ably to reduce our dependence on imports from capitalist countries. 3n the production of glove leathers we have completely liberated ourselves from imports by using domestic raw ateriaLs. Tanning agents which were previously iiorted are now partially replaced by domestic synthetic production. The suction is imports of raw materials for the textile and leatherworking industries has co feted the trausfortaation of the foras~rly unhealthy structure of our foreign trade result froml, the excessively lerg share of light-industry products in ex- ports and the simalta a groat dep tdance of thin type of i e- try on t o rta of isv miteri*lR from it st c trie s N! doba a pry The trausfor tion in the stricture of Cseehovak foreign tale out above tees not, of coma, *esn that the s# ifi~ ? 8 i Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 cance of exports of light-industry products is to be diminished in the future. It must be en# hasized that, while in this reorienta- tion of industry we strove to reduce the proportion of light indus- try in total foreign trade turnover, a further relative or abso- lute drop in light.indutry exports is not desirable in the future. Production of all branches of light industry has grown and d11 continue to do so, albeit not at the pace of heavy industry. This growth of production is.znecessary not only in order to meet the constantly growing domestic denaud coupled with rising living stan- Bards, but also so we may continue and develop exports of light- industry products, based on increased output of domeatic raw mate- riale It should be emphasized above all that with the continually rising living standard in the people's democracies there is a si- multaneous growth in interest in numerous products of Czechoslovak light industry. We are able to meet this demand, on several cap- i:taliat markets new advantageous opportunities are developing for us in eales Of a variety of consumer goods whose production is r based on domestic raw materials end will thus yield considerable foreign exchange. It retains the job of foreign..trade workers to transfer their experience in foreign trade to the production plan, to acquaint our workers with new developments abroad, and help them ?maintain our good export tradition in this branch of production. ? In many branches of industry, particularly light industry, there yea a profcut change cf pereonnel foUawing the liberration. Wow in large part replaced men co that today is many plants vork- prineipet] IY for .Xpa1!t the ority of es 3aeyeee are ' men. Por ale, to cast do Z4na textile plants in vhieh 95 pmt of the oees are ~; th Eamiro toy taetori.e in Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 which only 3 men work, the rest being women; the Centroflor fac- torles producing artificial f],owers, the factories of fancy leather aecesaoriea in Paludska, the Pleas knitting rills in Havliekuv Brod, the Plants of International Women's Day in Bratislava, and the Jaroslav Jezek plants producing accordions in Borovice. A large percentage of women also york in the Dvory porcelain plant, the Bohumin chemical plants, the 5ax4rik plants in Vlkanova, and else- Where. Women have shova themselves to be highly adaptable and quickly trained, although this is nit always an easy tack. roe- rienee shown that as agile girl very quickly learns her work and can often operate two or more machines. Demanding foreign markets require that new workers be trained carefully, while the experience and skills of older workers must be fully utilized. In the major- ity of our plants whose product is primarily exported these tasks are well understood. By way of exaple we may mention the Czecho- slovak lace industry, Which includes production not only of lace but also of tulle, curtains, and embroidery; 80 percent of whose products is exported, primarily to South America. This type of ex~ port is economically very advantageous, since the material content is much s!aller than the labor content. The lace-industry workers have done a great deal to promote exports, since in this industry it was necessary to train a large number of new Workers. Although these are delicate products lace and embroidery are often produced on gigantic machines and therefore it is very useful to have these machines operated by women, who in many respects are superior to men and carl sometimes operate two tulle machines aiinultaneou.Blyi Special etteation is devoted to training yE1th, and the apprent1Oe center at the 71ex *nterpz'I-* in LatOYice is *b4 the bait ap- pretice eeatire in al]. of lift i ustr 89 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 In this connection it may be pointed out that the irnporbant role which women must p]ay in producing for export, and particu- larly in those industries in which we must maintain valuable tra- ditions, is not understood everywhere. For exam~ale, in the Vam- berk lace plant one can hear complaints that the manpower offices, in an effort to fulfill recruitment quotas, prevent young girls from devoting their efforts to lace production. This is a direct threat to the future of the production of bobbin lace at Vau-berk, which in 195 won second place at an international exhibition of lace in Bruges: Thus we took second place to Belgium, a tradi- tional lace-producing country, and won against a number of other ccu~pating countries . The demand on foreign markets changes constantly and greet flexibility is needed to keep industry adapted. This does not mean that we should turn away from our traditional products which have brought us a good reputation abroad and which provide oppor- tunities for further development. On the other hand, however, we nuust 6130 develop production of new types of gads which will bring technical progress atxi for which there is d.+lnd. The glass in- dustry provides a good example of this. this industry, like the lace industry, has a particular value for e q orta, not only be cause of its good export tradition, but also because its products contain a great deal of skilled labor ar4 use primarily only domes- tic raw mmeaterials. The glass industry lives not only on the tra- dition of Czech cut glue and eostum jewelry, but has been able 8Ub5intially to espafl*L xtn production program. Zn davelcping ner technic vs have begun to produoe upti- cal glass, glass for vacuum t na I1, speeial glass (SisI, P.. kal ) g]au fiber, pz'ad ?f alt W1% Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 its s! # tea, Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 and a variety of products required by new techniques in industry and agriculture: vagina1 iztterts for insemination, "distance rings" for vacuun tubes, pyrolusite frit for cementing light-bulb bases, corundum loops for dairy centrifuges, glass atul. sapphire phono- graph needles; frlt fi_?ters, containers for firefighting equipment, etc. We already export to the people's democracies glass tubing for chemical and food4fn1ustry plants and, in the second Five-Year Plan, this type of export will increase considerably. It is in- teresting to note in this oonnection that a "glass bakery" has been iustalled in Prague-Holesovice, representing a complete revolution in the production of bread and baked goods. Patents have been ap- plied for on this equipment in all countries and foreign interest gives every hope of great export opportunities. Also in Chrudim we may be proud of an automatic mill with glass equipment. The Kavalier Glassworks in Sazava are producing not only glass industrial equipment but also special technical and cooking glass. Simaxx glass particularly has great export promise and will be used to produce export goods, since it may be compared with the famous Jena glass, At the glassworks in Retenice they are produ- cing so..called "detbeal" glass, Which doee not permit the pas- sage of either heat or cold. Our Spartak-kola !gyp+S are n nufac- tured for export with this glue. Glass fiber, produced by the - titl enterprise Vertex in LitomyBl, is also exported to the peo- ple'a democraciee a~ld capitalist cauttriea. The Ducheov G 3aeevorka are well'knovn in y foresgu coutttriee for their glass shaped tile. Perticu1srly notevortby are the micro coVeZ glasses 0.1-0.2 miUiter thick vhieb scienti+ , phrstoi*M s$ eheski$tm use to observe *tit$i uar the aiee. W. P17 taperted these cover giaseee from the a Qeiin7. In 19I7 -91. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 took domeatic production: at the Jablonec Gleesvorks in DolnI P"olub- ny ana gradually perfected it eo that we became exporters instead of importers. Conscientious reeeerch in this aspect of the glasa industry opens promising perspectives, in that the glass research institute in Hradec Kralove has succeeded in working out the production of precision optical glass for microscopes, binoculars, and photogra' phis objectives, which were formerly the raonopoly of the German glaseworks. Earlier the research tasks connected with producing glass for vacuum technology and particularly for producing glass for television picture tubes were solved. if we mention the glass industry by way oz" example this does not mean that similar opportunities have been completely overlooked in other industries. ?or example, in textiles a number of products have been introduced or perfected, many of which will go very well on wort markets (this is indicated particularly by the interest of the USSR and the German Democratic Republic in basic knitted goods with azlti olored film printing). In looking for new export opportunities we must it forget traditional export products as occurs in eome cases when a parti~ cider industry is occupied aolelyr with supplying the doestic mar- ket or loses interest in exports for other masons. Carew of this kind can be found, ermc~ng other placee, in the export of certain food and agricultural products. In this field we have a tradition which naist be aged carefully. go one can claim that in the - port of food apecia3-tiee sac agrioulturah products, such as high. qty sead, ped3gread animas, eta, vs *r. now using arm ur- tur ti ss; of Ihich a than enough insight be revlsalad b r better or. ganization. licit adrrenta is the exort of certain of these p ucta is eh by the f that the feed tkma frog one oee Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 earn enough foreign exchange to in ort the grain necessary to feed the goose. This z Bans that when the feathers are exported the meat and fat are pure gain. Sonie countries such as Hungary, Aus- tria, and 8cawiinavia show a great deal of interest not only iri goosefeathers but in chicken feathers as well. Nevertheless we have not organized. the collection. of feathers in such a gray as to rake full use of foreign demand. Despite the considerable effort which we have exerted better results can be achieved in exports of medicinal plants and other wild craps, whose sale on foreign marts kets is extremely advantageous for us. We thus have a real inter-" eat in ddeveioping this type of export. In the next chapter we will discuss the success which we have recently achieved in exports from light industry, chemical in- dustry, and the food industry. Here it moat be stated in cone 1u- sign that following the structural change in Czechoslovak foreign trade which placed exports and imports on a more healthy fouMa- tion we must strive to consolidate consumer-goers exports on the same basis. 'Ihese exports must not be overlooked or underestim- ated because of the development of machine exports. We must keep in mind that production of light-industry goods is in a number of i nduetries b>a-sed t n a domestic rev rn ter1 ari for this reason ax. ports are very valuable with respect to foreign exchange. In many of its branches Czechoslovak light industry has outstanding pro'. duction experience and a cor rcial tradition which it vouid be incorrect not to utilize. The taske facing feign trade are great, eaonomica11~r ir. portent, and reg4re the maxiwinnutil4zation of all the forces which may contribute to it. Isere is no question that Ught i Ustry may take a lar e part in t eft 4 re 93 .. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 ART O>' PRODUCTS OF LIt INDUS .'RY, CH4 4I8TRYs AW ThE FOOD INDUSTRY Although the focus of C~echoelovak exports has been shifted to machinebuilding products, nevertheless light-iz ustry products glass and ceramics, textiles and leather >- as veil as products of the woodworking, chemical, and food indus tries will continue to be important items with which we shall achieve success. We shall attenpt here to give a brief survey of the development of these exports in which, in addition to the national enterprises, the co- operatives and local-industry enterprises play an important role. Czech Glass Uueiialed Czech glass exports continue to rise. In 1955 they increased by 20 percent and in 1956 by another l5 percent. Despite all the efforts of the competition Czech glass, with its age-ola tr adi t ion of r cf i. nement and beauty, remains unmatched. Our trademarks Moser, Lobmayer, and Bohemia leed the world, while Harrachov cut glass, Borocrystal products from Bor, and crystal chandeliers from ~Camenicky genov are no less valued. In the picture gallery at the Louvre, in the Moacow theater, in the flail of Columns and the Winter Palace, in La Scala in Milan, in the Brussels Theatre de 3.a Bourse, in the Sydney Opera, in the palace of thF: han king in Kabul, in Hayrierabad, in Manila, in tho CCngrw J Int cional in Quito in IDcuador, and in many other iu oaten 1 buiUings C~echaslovak handeliers shine out with unique beauty. The chandelier '~iicbciecoratea the Sydney Opera is 5.70 meters iz . dia t , 7 maters ig1i, has 208 light, and 10,000 pen' i itsr -'t weighs 3,5? kilog c. It vss hipped is 72 a !ttona. h t nU* ChI1S1i? is AtL, Zvi.tiot&sl enterprise Lustry in Ku!e.aky Benov is saes ooutiig its glorious Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 tradition. Among Its recent exports we nbaU ton LSO ohaud elera sent to the scow Gastronom. The amaUest of these is 160 cen- tlmsters high and weighs 160 klloams, While the largest is 460 centimeters high and weighs 3610 kilograms. A chan1eIier has been soot to the Iu erial Palace in Addis Ababa; it has 160 lights and weighs over 200 kilograms. A decorative chandelier was made for the puler of Saudi Arabia, the design of which used a modern com- bination of metal and glass. We also supply table glass for rulerrs, diplomats, and other outstaring persons. In addition to these exclusive and individually designed products, in which an important position is occupied by cut and etched. vases of outstanding artistry, we also export a variety of useful and decorative glass. Numerous smaller glasavorks which are less well known to the public than the Harra chov and Podebrady glasaworks have a good reputation aboad and have customers through- out the world. This is true particularly of the glaseworks in Annin near mice, Nisbor near Beroun, and Katarinaka Hut near Banska Bystrica, all of which export very valuable cut glass. 8e- ries.produced pressed glass is exported by the Moravia glassworks in Rosiee U B a, the 14 glaaavorke in &araka Bystrice u Tep- lic, and a number of other planta. We also apart aic~ple packing glass, particularly bottles, at4 flat glass, noludiag mirror glass. A Cze os1ovakk specialty, valued throughout the world, is Zelesny Brod figurines, now produced fro "metallurgical." glasaj another specia1t is costume jewelry and glass buttons. The form' eign-trede enter rise Jsb1o, in Jablanec aad g aou, tthlah han* dl exports of glass mete]. eoetu JmIe]xy, pelz'ls, bum, a& vat demotions, is in active aonteat vith o countries throughout the vorU sal note increasing dell by year. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 If there was uncertainty for a while concerning the future of this typical Czechoslovak export industry, this uncertainty is nor a thing of the past, and oduction based, on export success is being i 4ernized by investments in machinery and by reactivating idle factories. Important plant investments are being prepared for the second FiveMYeer Plan in Bor aad Kamenicky genov. Closely related to the production of costume jewelry is the output of Christmas decorations; this is not, however, concentra- ted in Jablonec and ZeLezny Brod but reaches as far as Dvur Kralove. Class 4Ur18tm98 decorations are manufactured even in Moravia and around Bratislava. The national enterprises share in this with the production cooperatives. The scope of Christmas-decoration ex~ ports is astonishing. Dozens of carloads of these email and deli- cate goods aye sent to Prance, Bo11ant, Italy, and Switzerland and s number of other countries in Europe and overseas. The spirit of Christmas is peace on earth toward men of good will. Our brist mas decorations go to all the world as a greeting frow our people working in peace and for peace, to all people who wish to live in good will and friendship with us. Among exports of technical glass we should mention the suc- ceasful export of thermometers from the Technosklo Plant in Drzkov. In 19~ this plant produced 14,044 thermometers in excess of the plan and sent them to Nox'vay, Rumania, Bulgaria, China, and else- where. Cseablovak Cea* a wide Known In the C$eahaelavedc ceramic iadustry there are eeve a1 p1 nts hiah are known t s haut the vor3A. This is true parties ugriy of the Sri asuiiQ Pita whose ko g.ued struatural the 1wse u$&I for the facing of a tua e1 user the tdaan River 1u 96 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 New York, for the luxury hotel GOOilaud in Rolland, the Amalier~ bad Bathe Lu Vienna, Ford garages in Antwerp, end many othez 1m portant buUdi,s and instaUations throughout the world. Throug'b the foreign-trade enterprise Czechoslovak Ceramics the Rakovnice Ceramic plants recently received an order for large green facing the for the facades of several great new buildings, including a hospital,in Cuba. Another leading plant whose traditione and whose ontinuit g in rovement of product contributes to our?export success is the West-Bohemian Ceramic Plants in Rorni Brisa near Plzen, renowned for its refractory material. The products of these plants are sought in industrially mature countriee like France and Switzerland just as they are in underdeveloped countries across the seas. We export sanitary ceramics to 60 countries. The national enterprise Duchcov Ceramics plays a great part in this export since it has customers in Iatin America, Africa, and the Near and Mile sat. Recently we have achieved great success also in exporting ceramic tubing by inning a public cotupetltion in several countries of the Near East? The contract concerns several hundred kilometers of this tubing. Almost two-thirds of the asbestos+cemeflt Water-SUP- ply and sewerage pipe produced at the Beroun Bternite Plants is now exported, and demand is aontinuafy on the ri 'a. In Mlynarce seer Nitra a factory has been built to produce asbestos goods which are aucceaefully exported to lt4ia, Indonesia, Bum, and Pakistan. Throughout the vorld w- in 1 e, Asia, the USA, and Ms? tra3.ia the rk ' Dwc is hi y valued; this treds rk is used on s U aezvasic the +er*iiio Plants in Tepiiee, one of the heov per. In thlx elegant ezeaution, taste, and or lty these its aver rtniaet of poradain fiSirines ? Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Exporta of porcelain were temporarily reduced but certain steps have been taken reaently vhiah assure us that we will be able to contiaue our former success in exporting iCar3.ovy Vary por- celain, with its tradition of snore than 250 years. The factory of the national enterprise gtarorolaky porcelain in Dvory is ~rorking exclusively for export aince the Breezova plant of this enterprise (formerly Epieg) was changed into a developmental factory as part of the program to imlprove exports. The exports of another plant with a great tradition, the Thun Porcelain Factory with plants in Kiasterec nad Ohri and Dalovice, are continually improving. A nev set of fine decorative porcelain aroused such interest in Belgiwn that a carload shipm~ant was ordered immediately from the san~le. In addition to artistic and useful porcelain we export tech- nical porcelain as well. For exan 1e, about one third of the prod ucts of the national enterprise Blektroporcelan, in Bohosudav near Teplice, is sent abroad, as is the product of the plants in t kl.in and Downy. The new porcelain plant in Cap near Nitra, thich has been operating only a year, sertda its products all ove,'r the world, particularly large insulators for power engiheering -- to the So- viet Union, china, the European people's democracies, India, and several capitaliet countries. Finally it ray be mentioned that we export ceramic raw iria? terials and basic m terriais as well ?.. kaolin, cunt, and Slovak magnesite. chosl,?vak exti A1et~ Czechoslovak materials with satin and. corc~ted effects have been hai]1ed by Austrailian ti ortecs as the east eucaoaefu]. aoUeo- tion of the 1955 aeaavn. A few days after they were otCered or- ders were r rivsd for th* Ong one arovna. fir 99 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 success was equally great in Cuba, where they set the style. The foreign~tr.e enterprise Centrotex receives orders from Cuba for hundreds of meters of material. Today the world textile market is not interested in ordin- ary "dozen" goof. These can be made in all countries. Only spe- cial products or producta with outstanding quality, patter, and taste can be sold. For this reason this is the direction taken by exports of Czechoslovak textile products, and we are aohieving sue- cess in this way. For exanile, our tickings have become so well liked in Can- ada for their excellent quality, strength, impermeability, and fine appearance that customers ask for Czechoalovek goods exclusively. The situation is similar in shirtings and furniture coverings. Our frottJ goods are exported to 50 countries. The national enterprise Tiba, which is a oombine including textile printing plants, is one of the largest enterprises of its kinl in the world and continually increases its exports of a wide variety of printed fabrics, particularly through its constant in- novations, The Textilana plant in Liberec also exports hand-prin- ted wool wraps, shawls, scarves, tablecloths, and women's suitinga to all parts of the world. gilon [nylon) material from the Atlas weaving mils in Kra liky have achieved success at all foreign fashion share. For 1956 this enterprise prepared 100 new patterns and. typee of silon and artificial-silk fabrics. In the Erokat planic is i arov they are producing luxury brocedes vhieh were ordered for the woronation of Queen Elisabeth IL Oonauiere aro the old are wearing CzeahosLovak linen goods. our lima tablecloths we us in l tr 1, Capin, ', *M Capeteen. $teulrme plying he YeJgs and Don use table- air bedwi~i p kueed in oar Ua n avin U1*. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 It is not very well known that handkerchiefs are among the textile products most sought abroad The nationa1 enterprise Liza iu Hradec Kralove has handkerchief customeri in Egypt; Kenya, Vene- zuela, and Cuba, in Tangier, Uganda, Ronduras, and. Haiti. The 'bs- tex factory in Mostek, a plant of exemplary quality, has customers in Australia, Canada, and the German Democratic Republica The Mileta plant in Horice produces handkerchiefs almost exclusively for export. Particularly brightly colored scarves were prepared by this plant, as by he Atlas plants in Zabreh, for the Olympic games in Melbourne An important item in textile exports is light readymade goods -- our checked flannel shirts, for example, are so well ?ikad in Norway that 150,000 of them were sold there in 1955. The sit- uation is similar in a number of other countries where we have been able to adapt to the taste and requirements of customers. Our exports of underwear to Denmark increase 5-fold in 1955. IRS Abyssinia our trademark two lions, which denotes Czechoslovak flatwear -- is so well known that importers have stopped sewing in their own trademark. Loading exporting textile plants include the ,.arel Havlic k Borovaky Plena plants in Revlickuv Brad. Thousands and tens of thousanda of shipments are sent ot from this plant ,to all parts of tie world, containing knitted "natelniky"; undershirts, under- pants, and "scawpol&' which are very such sought after in Haiti, Egypt, and Indonesia. One of the leading customers for socks pro- duced by the enterprise Tatraavit in Svipod Tatrami is Sweden which at the beginning of 1956 ordered 50,000 pairs. The aationnl enterprise Elite in Yernsdort leads in the export of vomen's stock- inte r Readymade goods from late,jov, aaluding e1oat all types of totting, are exported to the entire aor]4, principally to Latin America at4 the sear a,ad Fax East _100_ Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Interesting export specialties are "simplex" gloves, flan- nel trousers and, above all, ribbons and braid. The S. K. Neumann Plants in Krnov are the largest ribbon and braid combine in Europe. This plant produces 2,000 types of ribbon an+i braid which are purr chased in the most remote countries. The national enterprise Stuha [ribbon) in Dobruskw has also specialized In so-called "leontine" goods in ~those production metal fiber is used instead of textile fiber (one kilogram of copper produces 65,000 meters of metal fi- ber!). These leontine ribbons and braid have become suet a spe- cialty in international trade that we export them to all corners of the world. Demand, particularly in western Germany and Australia, for certain types of Czechoslovak lace is so great that production can scarcely keep up with it. The Plant of International Women's Day -- 8 March, In Bra- tislava, produces thread and embroidery yarn, exports of which have tripled since 197? It would be erroneous to underestimate this product. We export it to 30 countries, some of them very far away -- Ceylon, the Gold Coast, numerous South American countries, Kenya, Iraq, and Jordan. Sponit in Chribska has also achieved con- siderable success with exports of its thread and yarn. The national enterprise Juts which produces rugs has ousto- mera throughout the world. Czechoslovak rugs are well liked even in the lands of the Oriental rug -- in the Near East. Our hate are truly exported on a world scale. Tbnak bats from No.y Jicin and Valasake Meairici are worn in the Soviet Uniaa and America, in England, Sweden, New Zealand, Iceland, and pige- rie. Csechoslovek factories produce sombreros for Venezuela, fesee for South Africa, and ghu rksa for India. Seventy percent of all hat production is now sent abroad. ~lOl~ Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Even bei'ore Strekonice was renowned. for the production of motorcycles it was well known in the Orient for Its fazes. The Strakonice Fezko still produces fetes but now turns out vainly berm eta, "radiovky", and patterned caps in a wide variety as required for continually increasing exports. Shoes and, Gloves The foreign trade enterprise Centrotex exports not only tex- tile goods but also shoes and gloves. The Gottwaldov shoeware house, which sends "Ce-Bo" Czech shoes to the entire worlds is a sort of gazeteer containing the muses of dozens of European afd overseas countries, all of them our customers. The largest custow mere include countries in Asia and Africa. Shoes ere exported also from the plant in Trebic-Borovina aril from the Plants of 29 August in Partizanske. Production of leather gloves, which was formerly scattered mainly throughout the frontier region, has now been focused in a new center -- Dobris. Only branch factories remain in Prague and Abertamy. In the 5 years of its existence the Dobris plant has won back a leading position on export markets for Czechoslovak leather gloves. Varioua Expcrta from the Wood Indust We export wood as raw material and ae*uifiniahed products, but principally in the form of finiehed products -- furniture, mu- sioal instruments, matches, various small wooden objects, etc. The plant in rnovice exports high-quality veneers. Score. Gina in Baneka Byatrica has achieved eucceas with its structural and mature testerial Sarekolit end Tsoplet. The national enter- prise Lira in Ceaky w exports ?c~ulding for picture freea to Jasica and the Middle Best 102 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Caechoslovakia leade the world in Oxpoi3r of bentvood furw niture,both in quality and gcsautity TON emirs are veil-liked- in escar end Malaya, on the Fiji le l enda, in Hongkong, the t R, the people 't de racie ; a the A. Our furntture industry retains a tred t?s of careful and te8tefu1 execution a is at the as time inasterinb caoderr~ ode of work orprcxIuct1on lines encl. mechan.isiri egad aut t flg nu merous operations to adapt itself" to the dez rids of tmoc1er tech- no1oogy. The UP Plants sent spec.el folding dining choirs e d school benches to Svitzerland and office bookcases to the German cratic Republic. No less successful in exports of specisl furniture are Jiton in L150v, Sloboaa in Ce1ar* s, the West Brheiian Furniture Plant in Pizen5 awl the national enterprise Interier in Preg re, Present exports of pianos ore six times as gnat as before the wer, the result prirAsrily of the high quality of our p ucts. If Czechoslovak pianos are chosen for radio arzd television studios in Rome and Singapore, this is certainly the best evidence of the quality of their sound. In ustrs1ia at4 Ncw Zealand ;zechosiovak pianos are considered the best fnstrumentmd E ports of Czechoslo- vak pianos udder tie trade-marks Petrof", Foerster, Weinbach, Roes sl er, Scholze, and Dalibor bind Czechoslovakia to the entire vorl4 Our organ factory in Krnov is also one of world renown. Among ite rent exporta we m~y list the export of an organ for the capital city of Tcelaw, Reykjavik. World- soaxophone$, tro bones, horns -- trade- erred Amati are exported to Cenade, I.ao, the 1$A, and Vaaeaueia, White inetr t+a Par w;ad bats are eeut log Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 -I to the people'8 democracies in Europe and Asia and several African AA11f9 E't~~ G3C! Der4.4 a nr.vnr~4 rrriu, ~.,.r. r a +...vo.wr+ A J Va.VY.W?L 1rVLi:4,S$UC1U.LLJLt. of the quality of our wind in- strutnenta comes from the victory which we have achieved in several public corapetitivns. Accordions are also much sought after in the export trade and we have achieved great success with them on the world market. They are produced in the Plants of Jaroslav Jezek in Horovice with branch factories in Pisek and k uny. In 1955 we exported 12, 000, 000 crowns wouth of them. A long tradition, a1n st 90 years old, stands behind our export of matches from the Solo plants in Susice. They are known throughout the world. A tale is told of a Czechoslovak cultural worker who brought back from a trip to Java a box of Indonesian 0 matches as a curiosity; not till he arrived home did he rea1ie that he had brought back Czechoslovak matches which had been expor.- ted to Java and supplied with an export label. The Susico Solo plants are not, however, satisfied with the old tradition and with continuing the new tradition in match exports; they have also un- dertaken to produce wood-fiber sheets from their waste. These sheets are now exports to England, Prance, Greece, and other coun- tries. One of the most advantageous forms in which we export pro- ceased timber is paper, one of the most highly desired Czechoslo- vak producte. A large number of countries with which we trade make special reservations in their trade agreements that we will send them various typca of paper in which they are interested. Where is scarcely a country in the world to which we do not export paper. Even countries which are typical exportea of paper, such as the Scendiuaviao aountrieat, Austria, and Canada, import at leaaz Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 certain special types from us. We have been succesaful even on the remotest markets and recently, against great international com? petition, have won several public contracts in AfghaniBtan, Pakis- tan, Iran, and Cyprus. The Olsany Paper Mille, UP Paper Mills; Harmanec Paper Mills, Slavosov Paper Mills, grid the national enterprise Grafocel- pap in Ruzomberok export the majority of paper. Some tf them pro- duce specially deaired types. The Oleany Paper Mills, for example, are celebrated for the export of cigarette paper from their main plant and handmade paper from the plant in Velke Loamy, where the paper was produced for the Kralice Bible. Graf'ocelpap in Ruzon- berok exports 90 percent of its products, including seven main types of paper, particularly printing and writing paper, Amongst its customers are the Ethiopian emperor Haile Selassie. Writing paper for his personal use is sent out in special boxes with a dec- orative sticker which is printed in the North Bohemian Printing Plants in Turnov, a factory which has proved itself in export pro- duction. The Vratim Paper Mills in Ceaky Teain have a century of ex- perience in the production of commercial books, notebooks, and copy- books. They have continued their prewar export tradition by send- ing cotanercial books to Ethiopia Pragoexport: Exporter of Small Consumer Goods ~~ yW~l//I IWlrl The export of timber and the products of the woodworking in- dustry and paper is handled by the foreign-trade enterprise V.igna; certain wood products, however, are handled by the enterprise Prago- export, which exports small coneuaer gaodat pencils, stationary, school supplies, brushes, buttons, tailors' and ehccers' sup- plies, fancy ac;ieesoriea, artificial flowers, umbrellas, shaving Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 and sceaking Supplies, fishing and sporting tackle, and supplies, toys, hygienic and. surgical rubber, and numerous other products. Among the best-known goods exported by Pragoexport are prod- ucts of the national enterprise Koh-i-noor, which hes several branch enterprises in addition to its main plant In VrsovjceGripper snaps, zippers, straight pins, safety pins, hooks, and other tailoring supplies are exported to the entire world. Koh-i-noor in Decin exports pocket flashlights to Norway and Pir+la1. Shoemakers' tacks, "Moravia'r brand, are exported in freight- car lots to various countries as one of Czechoslovakia's export specialties, The output of buttons at Butonie in Roud.nlce is intended primarily for export. Twice a year through Pragoexport this enter- prise sends its foreign customers its collection containing 1,500 typee of buttons. One of the moat active enterprises working for Pragoexport is Igla in Ceske Budejovice; this enterprise produces needles for household, induztrial, and medical use, and fishing hooks, which have become a very desirable export items. Its sister plant in Valasske K1obouky exports aewing?machine needles. Among fishing supplies wa alaa export reels and artificial feather flies. Among sporting goods we export principally hockey sticks -- to countries in which this sport is native -- and frames for tennis racquets. It is interesting that a country like Sweden, in which winter sports are so widespread, buys ekt?ee from us -- from opo1 in Police and Metuji. Another iudication of the high quality of our sporting gaota is the fact that balls of Caeohoalo- vak ufecture Race chosen fog 4he i uropean ch ianship gema+a in women'a beeketball. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Among atoking auppliea we export briar pipes, tobacco con- tamers, (the demand for these is constantly on the rise so that production must be increased), cigarette holders, etc. Czechoslovak shaving brushes are used principally in South America and in the Near Fast and. India. They are exported from the plants in Felhrimov together with other brush products, of which the greatest exporter is the Orlice Brush Factories in Cervena 'soda. Women throughout the world like artificial flowers which are produced for them by Czechoslovak women ir. the Centroflor plants in Doll Poustevna. These perfect typical export products decor- ate women in Uruguay and. Venezuela, in Jamaica and Canada, and they decorate apartments in Iceland, Lebanon, and Syria. We export tens of millions of them each year. Women also delight in various leather accessories and hand- bags which are successfully shown at various foreign fashion shows. Therefore exports of these products from Paludzka near Litpovaky Mikulas and the national enterprise Gala are constantly on the rise. Czechoslovak bags, briefcases, leather travel and hunting `supplies and wslleta -? all find a permanent market in Switzerland, Holland, Belgium, and other countries of ~irope and overseas. The national enterprise Kazeto in Prerov is one of the largest plants of its type in the world. In serial assembly-line proth ction this plant turns out suitcases, principally for export throughout the world. It is interesting to note that in some countries of Africa and on the Pacific Islands Czechoslovak suitcases are almost the only property of the natives, who carry their few poseeseloas in them. Cgeehoalovar exports of toys inol ude wooden, etal~ rubber, and bile toys . The 1ergeet plant in the country devoted primar- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 ily to export production of wooden toys is the national enterprise Tofa in Albrechtice, which also exports wooden Mohammedan bends. Metsl mechanicel toys are exd~orted from a number of factories in- eluding Koh-Qetional enterpriss, materials turued out by the Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 local-economy plants -- okres inthwtrial combines and production cooperative, Local-industry plants and production cooperati s of course supply export goods and important parts of export goods to other foreign-trade enterprises and for this reason their con- tribution to Czechoslovak exports must be particularly apprecia- ted. No contribution to our exports can be underestimated, and these sail?1 plants can provide new arid. unexploited sources for ex- port. Local-industry enterprises and production cooperatives un- derstandably make a greater contribution to exports in those fields whose products contain a great deal of manual-artisan or artistic- industrial labor. This includes a variety of objects made of va- rious materials; garnet jewelry, buttons, glass Christmas decora tions, electric hotplates, reproduction machinery, phonographic in- struments, children's bicycles, umbrellas, razors, combs, automo- bile fittings, various office supplies, basketry, reed and bast products, toys, special watchmakers' products, and many other smell goods. A special Czechoslovak product for which there is demand throughout the world is woven reed goods whose previously scat- tered production with a century-old tradition had been organized by the industrial combine in Bakov nad Jizerou. Baskets, trays, and tiles similar to those made in Bakov are manufactured by the okree industrial combine in Morkovice, where wicker boxes ar~d other ca*etware are produced on the 1)asia of cottage industry Neently they have begun making them of polyvinyl chloride. About 80,400 bodes are made here annually, a large proportion of whim are seat to Canada, England, Australia, Sweden, egypt, Iceland, New Zealand, and the M5L Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Similcr popular creativeness is the foundation of export production in other Vocal-industry plants. The workers at the corn- munal enterprise in Vimperk produce a variety of decorative arti- clea of bone, while the lathe workers in the industrial combine in Treat have exported chess men even to the Olygpic games in Helsinki. The local economy enterprise in Bile Tremesne exports glass Christ- D188 decorations to 20 countries. At the Keralit Plant in Litomysl they produce white and red popular ceramics. Other export arti- cles are the artificial flowers produced by the okres industrial combine in dicin and jewelry from Kovosluzba in Trencin. The glessvorks in Skrdlovice, an enterprise of the Kraj Na- tional Committee in dihlava, an exclusive export enterprise, is not only the only plant of its type in Czechoslovakia but, save for the Swedish firm Oleforx, is the only one in the world. This plant turns out decorative "metallurgical" glass, each piece of which is a unique work of art. There is no country which does not show in- tereet in these products. Among the largest customers are India and Egypt, which have a special sense for the truly remarkable beauty of this luxurious glees. In addition to artistic-industrial products, local indus- try working for export aleo produeea other products of a purely practical nature. For example, the atone workshops of the admin- istretion of water flow in Hradec Krelove uses Hradec Kralove sand- stone to produce grinding cylinders for synthetic precious atones, and sends them to the Soviet Hnioa. The okree industrial combine in Horovice uses stone from its own quarry to produce discos for fine gxiz4ing of enamel, and. soft metal, Vhieh it tcporta in large quantities to other Eurcpean countries. 'h! brickyard in Pu].ioe near Oobruska exports special bricks sad dreiu ge t, a. The local industrial co bizs in 3prty exports auxiliary roiiinaiU it. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 tings for boiler tubing, required equipment for export orders for refrigeration machinery and various boilers. We previously import- ted this product ourselves, The Metalworking Enterprise of the City of Prague is producing patented fireboxes which are being ex- ported to Iran and Mexico. The Olomouc Industrial Enterprise is exporting equipment for fishing, while the okres combine xn Sumperk is exporting wood- en boxes primarily to Holland., flexible tubing to China and Bulga- ria, and vapor saturators to Poland. The okres combine in Rtakov- nik is exporting infautl' bootees. Similarly the Prerov Industrial Combine and the okres in- dustrial combines in Litomysl and Svitavy export part of their prOducts. For example, interest has been shown abroad in water- harvesting comb inea from Litomys1. The Wood Enterprise of the City of Brno produces toys of the plastic durolin, which are Mauch sought after in England, France, Turkey, and which are exported to South America as well. Almost every kraj contains local-industry enterprises which contribute directly or indirectly to our exports. The same is true of the production cooperatives. In 9,000 production-cooper- ative operations, in which more than 100,000 workers are employed, more and more goods are being produced for export, while same co- operatives can be considered exclusively export enterprises. This is true, for instance, of the cooperative Majak which unites several hundred permanent and cottage producers of costume jewelry. The production cooperatives in Doubravice and Zdobin near Dvur Kralove also work primarily on export orders for glass Chtiat- tnae decorations. The stone-polishers' cooperative Precious is in Turnov, as is the cooperative E nat, which produces garnet jewel.- 7 in which there is even greeter interest abroad than in Gzecho- 111 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 siovakia so that about 90 percent of the product is exported. They have also undertaken polishing mercasite, for which there is some demand in Australis. Also Soluna, the gold cooperative, has sold its handmade jewelry on the foreign market. Another export plant is the Bratislava cooperative Datex which through Pregoexport sells umbrellas by the thousands to Aus- trails, Africa, South America, aril India. Its exports did not be- gin until 195k, and it is not ae .rportant factor in the total ex- port market; this should be an inspiration to other cooperatives as wells Other exporting cooperatives produce automotive fittings, An example is Drukov in Brno, vhich produced ignition contacts. The greatest success in exports has recently been achieved by the 'Perfektor" electromagnetic switching instrument produced by this cooperative. The West Bohemian Cooperative ZAD has made its mark with its ZAD pipe tap. Some types of radiators produced by the Production Cooperative of the Auxiliary Automative Industry in Prague are also exported. The Metal Cooperative in Sedlcany may take pride in the fact that it exports about 6,004,000 high-quality razor blades each year to a large number of countries, principally overseas. Its export goods include also replacements for meat cutters, The Blatna Cooperative Drevona has aroused interest abroad in some of its mueicel instruments, particularly electric basses and. guitars. The cooperative Special in Rcvensko pod Troskami is again export$ng pipes aaede of cherry mood which are used primarily in the Union of South Africa in the wine indu$try. . The cooperative RSA in Prsg-ue has recently exported 250 vac- uun cleaners to Finlatsi and 1,000 to the tern De cratic Republic. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 In precision mechanics the cooperative Druopta has been particular- ly outstanding ar4 has for several yeare been exporting its Pionyr cameras. In 1955 orders totaled $0,000 China, and the South American republics. i'cr Finland, Poland, There has been some interest shown in stopwatches produced by the Electron Cooperative in Polna and in exposition witches pro- duced by the members of the watchmaking cooperative in Mala Skala, Liberec.. The Popular Cooperative Igra in Prague exports mechanical toys and parts, primarily to Finland. A similar exporter of toys, of a collection of charming animals, is the Prague cooperative Duva. In its Zizkov plant this cooperative produces gifts of plexiglas to be used for advertisement purposes by to foreign-trade enterprises end the Czechoslovek Chamber of Coamaerce. They are very cleverly designed. For example, a cigarette case in the form of a barrel, advertising Plzen Prazdroj, has a music box which plays Vejvoda'a popular polka whose English refrain is "Roll out the barrel!" Among rural toymaking cooperatives Jas in Straz ned Nezar- kou has made a great contribution to exports and has a number of foreign customers. Five thousand fountain pens were produced in 1955 for export by the cooperative penco Pardubice. Svsdx^ap in Octt?~a13ov 8Nr plies winter caps and plaited ahoes to Iceland. One of the oldest furniture-making cooperatives, Universal in Fro~tejov, participates in exports of furniture to equip the cabts on Soviet ships . The upholstery cooperative, Kvalita, is Sradec Kralove, has sold a large order" for couches to the Gerin Dec oratie Republic, and it has cuatose s in Indonesia end Saudi Arabia. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The Vamberk Lace Mill is one of the cooperatives exporting a~ace ? Popular ceramics are also en export item. The people's co- operative Keramo in Kostelec nad Cernymi lesy produces and exports Cernokostelec ceramics, and similar interest is shown abroad in the remarkable popular majolica fronModra near Bratislava. Small plants in Jihlava Kraj also produce various decorative objects, in which there is interest abroad. For example, in obratim, near Pa- coy, various rare woods are used to produce beer steins, which are an export item in much demand. A great many products are made by the cooperatives and the local-industry plants. Many of them have found their way abroad, but many still wait for the proper initiative to get them itAtj ex- port trade. The discovery of these reserves to supplement export resources is a job worthy of increased attention. Millions of Czechoslovak Hooks and Phonograph Records Go Abroad In the field of cultural goods ?_ books, sheet music, pho- nograph records -- we have built up a very interesting branch of exports, under the care of the foreign trade enterpriee Artia. Being one of the largest Czechoslovak publishing houses, Artia publishes hooka by Czech and Slovak authors in foreign-lan- guage translations to be sent to foreign readers throughout the world. Printings of these books run into the hundreds of thou- sands, end include novels, children's literature, travel reports, scientific a>% technical literature, and beautifully prepared gra- phic publications on Czechoslovak art and historical monuments, popular art, and the beeutie* of Czechoslovakia. Among the most widely sought books are P1ick4s vork on Prague and Slovakia, and of course the popular travel account by Hanaelke and Z4k und. The ? 114 w Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 book about Mis kulieek, with Trnke illustrations, has been trans- lated into several languages. In the 5 years of its existence Ar- ti.a has published 500 books in )A languages and 5 million copies. The 1956 plan envisions 120 more titles in a total of 1.5 million copies. An important place in Artia's activity is occupied by sheet music, since there is increasing interest throughout he world in Czechoslovak music, particular~.y Smetana and Dvorak. Artia also exported around one million phonograph records in 1955. Greatest interest in them is shown in the soviet Union, the people's demo- cracies, Belgium, Rolland, Italy, Australia, South America, and among Czechs and Slovaks iN the USA. We ii so export phonographs, which are produced in 1lrable and Litovel in Slovakia, and are sent to the European people's democracies and several lands overseas, Artie also exports postage stamps, jewelry, picture post- cards, and paper toys; photographic picture postcards, for instance, have been manufactured in the Orbis plant in Sadaka for export to Malta and Iceland. Three-dimensione l toys include chlldreds pop- up books, which are aosembled so cleverly that when the book is opened the picture stands up. Representations include Chrristmaa scenes, grandfather Frost, forests, a circus and a farm. Children play with them on Mauritius, Trinidad, and Ceylon. We have sent 100,000 nativity ereches to the USA. In 1956 Artia will export about one million of these toys, and we could sell twice as many of them if we could manufacture them. At the request of Mohei se- dan customers we have print: 100,000 copies of a new three-dimen- sional picture of "MOhB Ued'8 Tomb in !Mecca", which are being seat to Bgypty Syria, Pakistan, Jordan, Sri. Cesablenoe as souvenirs. A'ong Czechos lovek films `she eror' a Baker has had the rcat foreign s~icoess; it has been sold to 20 countries. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 By exportin cultural objects we not only earn foreign ex- change but at the same time we perform a valuable service for the cultured rapprochement of nations, and thus for the peaceful co- existence of all nations. bcort Success in the Chemical Industry It is characteristic of the present position of the chemi~ cc~1 industry that we are exporting products in which we were re- cently partly or completely dependent on imports, This is true, for example, of textile dyes and auxiliary preparations. So~ae Czechoslovak tar dyes are now superior to those sold on the world market by other countries. We are also continually expanding the range of dyes produced. This is true not only of textile dyes, but of paints and lacquers too, which are produced in Usti, Rybitvi, and other plants and sent to the Soviet Union and the people's dem- ocracies, to western Europe, Scandinavia, and. overseas. Sweden ap- proves of our chrome black and ultrazols. Brazil is increasing its imports of titanium white, which is produced in the Hrusov Cheraical Plants, The largest customer for white paints from the Dukia plant in Ostrava is Chins. The Eduard Urx Plants, in Ostrava, have for the first time begun producing carbon black fiom tar oils and coke-oven gas. Be- fore the war the United States had almost a monopoly of world sales of this product, which is used particularly in the rubber industry. Now we supply carbon black not only to china, Finland, and Turkey, but even to the USA! Products from the Eduard Urx Plants are sent to a total Qf 19 countries. We have also sede greet progress in drug production. We now export thea (Prom Chemofarma in Usti, Slovekofarmr~ in Ulohovec, and other plants) to countries is the derocretic camp end to a}. capi- talist aountriee. For exemple, 60 percent of all our eulfonaaide Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 production is exported. Exports of pharmaceutical products make it possible for us to purchase abroad various special drugs which we do not produce ourselves. It is worth noting that Dental, in Jicin, which turns out $GO typea of artificial teeth, exports to Brazil, Indonesia, and Turkey. Another product which we export today but formerly imported is incandescent rriantlea for gas or pressure kerosene and alcohol lamps. The young plastics industry still has much ground to cover. Nevertheless the Ostravit plants export pressing powders to 27 coun- tries. Another interesting export product from this industry is raincoats etude of polyvinyl chloride from the national enterprise Fatra in Bapajedle. Czechoslovak photographic papers are recognized as the best in Switzerland, where they meet aever competition The Stalin Works in aaluzi, near Most, have begun exporting chemical products. They have consumers in the USA, Sweden, Aus- trails, east and west Germany, and England for their special prod- ucts. Along with new branches of the industry we are not forget- ting our traditional chemical production. For example, the plants in Michle export decorative candles, a Czechoslovak specialty, to the remotest countries -- even to the Pacific Ocean.. Rubber goods were also exported from Czechoslovakia before the war, but today we have considerably expanded the variety of such goods exported cud have found new customers. Tires frog the new plant celled the Rubber Factory of 1 May, in Puchov, are used in shoat the vole world. J Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 sugar, MMa1t, Hope Amon; the food products which we export the most important is sugar. Before the war sugar represented 10 percent of our total exports in certain yeara, and still is our "white gold", even if its share in total exports is not so great, Because of its great sweetness and the fact that it suits consumers Czechoslovak sugar is sought after in a wide variety of countries in Europe and over- seas. Several sugar factories contribute to sugar exports -- fac- tories in Nemcice, Dobrovice, Skrivany, Modrany, Usti nad Labem, and Melnik ~- totaling about 15 sugar factories and refineries, some of which have decades of export experience. If sugar is our white gold, hops are our green gold. Zatec hops are still considered the best in the world,, although other vJ Czechoalovak hops also have a very good reputation. The carevhich the hops are marked and packed contributes to their receptia~n abroad. Because of the great amount of foreign exchange which hops yield us maximum attention should be devoted to their cultivation and harvesting, as well as help from brigdes. No less sought after throughout the world than Czechoslovak sugar and hoes is our malt, which is exported from several malt- houses - .= in Olomouc, Prostejov, Ivanovice, Prague, and Trnave. Other countries grow barley, of course, and malt it, but Czecho- slovak malt, particularly that from Rana, remains unequaled because of the quality of our barley, the care devoted to malting, and the enormous experience we have in its manufacture. For these reasons our melt is truly a product of world renown. It is auch desired in the people's democracies and in capitalist countries, in the USSR as in the tWA, in Braden end Africa, in Bwitserland end in a number of Latin MerIQBD republics. We ere the world's greatest malt exporter and, deepite the feat thatws export more melt than ?u8- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 before the war, we are unable to meet all demand on the world mar- ket. Therefore in the next five-Year Plan we shall Increase the capacity of the malthouses and prciuc~.ora~ and exportation of malt will rise further. The export success of our beer is based on the excellent qualities of Czechoslovak hops and malts Nowadays Plzen Prazdroj (Urquell) alone does not have to sing the praises of Czeehoelovak beer around the world. It is exported to 67 countries, and finds ever new customers; but in addition Crystal beer from Ceske Bude- jovice and beer from the Smichov brewery are finding a good recep- tion abroad. In one month the Budejovice plant exports 6,000 hec- toliters of beer, while Sarichov sends out 7,000 bottles a day of 12-percent beer, mainly to Hungary and the German Democratic Re- public. Other Foods and Beverages w.ww~wwsr.- .r ^ - ~-~+ Our distilled liquors are appreciated abroad. The reputa- tion of our specialty -- Vizovice slivovice -- has reached Austra- lia. Whiskey from Krasny Brezen, griotte [cherry brandy?] from Proatejov, trademarked liquors from Mochov, "Becherovka" from Kar- lt1y Vary, are favorites in many countries, even far overseas.. The greatest export success in this field, however, has been gained by the liquors, particularly the fruit cordials, exported in luxur- ioua containers from the Kord plant, aat Bohemian Distilleries, in Hradec Kralove. Chocolate figurines i4and-painted cont4.iners, the way they know how to adapt them to the taate of foreign customera at Zora in Olomouc, Bfinx in Vaetuly, and Marys in Rohatea, find customera is then 50 oountriee, iacs uding Paraguay, Venezuela, New Zeal- and, the Dominican Republic, Curecao, Lebanon, thiaa, and the Ba- hamas. Exclusive chocolate can~tiea are exported principally to ea -119- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 tern Europe by Lidka, in Kutne flora, but cnany other candy factor- les have their own export specialitl.aile Arabs like our "nea~ po1itanky,t manufscfure. iii the P d ue Cticx oiete Factories in Mod- rang, the Icelande are fond of 'migaonky~', trade marked Fiedor, Meteor, and Melergaa? "Delicaramels from Ivosice are well liked in the Germen Democratic Republic, and. Velim Christmas collections ere the favorite in France. The S tolwerck plants in Bratisiava export mainly fruit candies. Carlovy Very wafers are liked in Can- ada, snd the Pragt a Bekedw oode Plauts se crackers to China. It is particularly remarkable that our candies are sought after in countries which have their own veil-developed irduatry, such as the USA amt Switzerland. Dried chicory is one of the traditional Czechoslovak ex- pone ? Today synthetic coffee is also exported < Exports in. 1955 reached 360 carloads, and in 1956 they sr expected to rise further During the Five-Year Plan we built up a uew branth of the food industry - .. the dairy-products industry .... in aeven modern combines . Today we are exporting the products of this iruiustry to 25 European, Asiatic, and. Latin Anserican countries. And Sb- vakia is exprrrting sheep's -milk cheese to Austria. The goon foreiga reputation of Plzen beer, ifana aaalt, and Zatec hops, not to mention lnojmo pickles, is shared also by Prague he and Cxechoslov?k smoked t Beta is general. Shipments to Mos- cow and Berlin, Belgrade, and r York by Meat Industry, Zvonarke, in Vinohredy, maintain the world renown of Prague smoked products. Our mkt industry doee not, however, limit its exports only to tra- ditional hen, but eleo uses aodern canning techniques to meke cua~. tomere abroad acquainted with other sm~aked epecia].ties. The good reception of our amok d -ta abroad ie shown ol.early by their euc. 0e1$ at the cor exhibition entitled "Ten Tears of People' e Dean - 120 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 cratic Czechoslovakia", in 3.955- The Czech restaurant there served 3,000 frenkfurtera anti 6,000 bacon saap1es daily, and the Soviet Ministry of the Food Industry decides to introduce and ex- pend the production of ae ked teats according to Czechoslovak reci- pee end include them in the beak variety of smoked products . Potatoes, so often overlooked, ore another suocessful ex- port item0 We e:~port eatix:g potatoes to countries which ?o not produce them s'id high-quality varieties as seed. Consumers are in France, Switzerland, 3e1gi.um; Italy, and Egypt. The main prot.~ cing end exporting regions are the f ohemian4bravian Upland region and southern Bohemia, but the Cesky Srod, Prestice (Plzen), and other regions alao produce them. A total of arse than 50 purcha- sing enterprises participate in purchasing potatoes and other crops. We also export proceesed potatoes, in the form of stare!. The starch azills in Pohledeke nvorakky near Navlickuv Erod, for in- stance, export hundreds of cerloeda ennually of the well-known preparations Solamyl and Maize to Finland, Switzerland, Italy, Greece, and n any other lands . Fruit and vegetables are exported both fresh (such as cher- riee and cauliflo ter) and canned. The longest tradition in exports of canned vegetables is held by pickles. Teircultivation and processing is not limited to Znojmo, however; Slovecko Fruta in Bzenec and the pleats at Tacky end Nitra in Slovakia eleogarti- cipete. Pickles are exported to a comber of countries in Europe, and to Australia. In addition to canned vegatable~ act tomato puree we have recently developed exports of a variety of canned fruit, aooapotes, jems, syrup, and iaa roaalae e. They are produoed in a large ctua- be!r of brute plents in Iohea is and revia, whiLe SlOvakie has eome Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 of the largest cant. p1 t~ tt the auger fectories in Siedkovi' coy ? Nitra . Canned fruit ?a cent in r1oad Lots h msny cow tries in Europe east and west Germany, ngand, Scandinavia, Finland *. and are appreciated also in Iceland and Australia. exports of fruit end vegetables are simplified by refrigerM ation technology. The freezing pleats in Litornerice freeze a wide variety of fruit and vegetables so that dorneetic and foreign markets may be supplied with fresh food out of Beeson. Freezer freight cars and trucks ere ueed for exporting these products. The advantages of Czechoslovak frozen plums, peara, spples, apri- cots, and various vegetables are appreciated in Italy, Holland., sevhere A source of foreign excharage which cannot be overlooked exists also In the fruits of our forests. In the forests of south- ern Bohemia, Sumava, and Blsavakia brigades, which also include youth, collect blueberries and uushroocas. thrn reds of tons of these are exported fresh by the mast rapid moans of ccxmmanicetion, az- arrive at their destination one day after picking. We also export them proceaaed. chantarelle muehrrooms, for instance, are -'sileged", i.,e., they are covered with brine cad then cent in bar rely to Switzerland. Great interest has been expressed abroad in dried muehrooms; their conaumera lncl4e New Zealand For one kilogram of dried mushroonS we receive foreign exchange sufficient to purchase 3.5 kilograms of butter. It is worth mentioning that there is interest abroad in "aipky'. In 1955 we exported about 18 carloads of them to westera t -r r, Holland, Been, and Switzer- 1a,here they ez'e used to pry tea , jet riti, and eon. The r lth of our torahs, xt-ich xe eea turn into feign ezchane, includes the seee of tort trees, which w export to Austria, 12 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 the German Dernocratic Republic, France, Denmark, and. elsewhere. One kilogram of larch seeds on foreign markets is worth IA kil w grams of lard a We also export Ch stmae trees to Hungary. Finally we export game - hare, pheasant, and partridge. They are sought afterebroad for establishing end freshening stocks Bach year about 30,000 live partridgee and. 12,500 pheasants leave Czechaalovakia . On the international market the price of one partridge equals about 12 kilograms Qf pork, while a hare is worth 25 kilograms of meat. Thus this export is very advantageous for us. We also successfully export furs from the furwenisnal farm whith operate independ.antly or as part of certain forest farms. In addition to forest products nature also gives us medi- cira1 plants as another source of foreign exchange. In Slovakie, where 330 schools have been recruited to collect them, about 100 typea of plants are collected for which good markets are fommd in France, Belgium, east and west Germany, Austria, Switzerland, Hun- gary, and the USA , Ang the mineral waters which our therapeu- tic springs provide ua the favorite abroac -- not only in Europe but in Egypt, for example is that from the 1b1 Matton.t spring, Karlovy vary mineral water (from the Mill spring) is also expor- ted. Amore common form of export then water in glass bottles, however, is export in the form of ealt obtained by evaporating the spring water Righty percent 01' the slit produced from the Karw to -Very springs is exported to the i India, Iran, Italy, Aus- tria, and Holland. Similarly Pieetany exports its medicinal, mad to Belgium, Germany, end 1 traIin. The a-nd for Cseahos1oys feathers in Europe end A.as is mors than we can supply. Litet exte to various feather products -> decorations for voarsn's hate, artificial insects for 123 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 eiTeruen, rnd Chria a trees uade of feathers, which ire nr ch liked in South America. As regerda a~ricu1tura1 products we ire continuing to export hiti-ctuaiity seed, although we are far from utilizing X11 opparuuw pities. We are also oeginning to develop exports of ped.td .at- tie; for exanipla; we sent Valasske rags frcun the Bystrana farm, of the Spiaska NOVA Yes atate farm, to Poland in order to regenerate Polish coarae?wooled sheep. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 cflA?r vu WHERE qtr SST E OV1D tvAatylgyw axe a .r....... ...... .. +.~ ..,. ~ ~ R. _ , The continuaUy nisi volute of forein trade and the sucw cess of Caechoeiovak prcxduata on new marketa are convincing proof of the generally good work of he factories which have been able to provide sufficient taateriel for export, atd of our foreign-trade enterprises which have organized exports, his sueceas thorouly shatters all the slanders which have been uttered by enemy propa- Banda concerning our production ? The perfection arx beauty of our products is evidence that they could be created only by people liar i ari oorking freely. In this connection our exporta are an ef- fective means of telling the entire world the truth about life in Csechoclovakia. Overall euccesS does not, however, permit us to overlook certsin ahoitomings and errors of Lich we are sti11 guilty. There is no doubt that our econonr, progresaing relentlessly toward sociaisna, is on the whole superior to a chaotic capitalist economy. This does not mean, however, that we do not meet on cepi- taliat markets eotetitora who can offer better delivery deadlinee, prises, selection, or Brash ty of goods. We must learn from these instenees, draw from them necessary conclusions, and direct maxi- r effort towerd eliminating shortcomings wherever we remain behiad. This is the reason why we mast seek ways continually to im- prove relations between the foreign-trade enterprises and the pro duction enterprises, anti Irby coa~etition for the exeaplery ful fiU!nent of export deliveries Lmzet be developed on the initiative of the Mini$tZ7 at Foreign Trade. Tovard Better Colleb t'ktun weea the ForeignWT*de tZI1eeB and Frvdcnatian . Lz~ . Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The organizational aepsretion of production from foreign trade is the direct result of the monopo1izetion of foreign trade. This does not, of course, mean that the former cooperation in the fulfill ut of goa1s ehould be abolished; on the contrary this co- operatioi must remain 86 Close as possible, and be atrengthened further. It often happen that before new working utethods Lan be de- veloped the organizational aeparetion causes certain difficu1tiea i Therefore we atrive to overcowe the remnants of antiquated think- tug in ourselves and aeek new workLng methods adapted to new forms of organization. The success of our products in sales abroad de- pends on the closest possible cooperation between foreignwtrode and production waxkere . With respect to the foreign customer, workers in production and in the eommercia1 apparetus ere a single party, both sectors therefore have : con iatereet in measures which viii help to fu1f"11I their cordon goals with honor, It is in the interest of our entire economtir that the production plants support our foreign-trade enterprises in the struggle to *ein or- ders and make it possible for thew to offer high-quality moods on short deadlines end at prices prevailing on foreign markets. Although cooperation between the two groups -- production and the foreign-trade enterprises -- is growing continually cloak, nevertheless too rah paperwork has sometimes unnecessarily ham- pered cooperation. From the foreign-trade workers one often bears co~-lsints that the proction enterprises, with their parochial interests, yauee unnecessury difficultiee. On he other hand pro- duction vorkera complein that the foreign-trade enterprises, in obtaining orders, do not kit bow to take into ecooua-t the techni~ eel, production, end fin is1 a sec cee of these orders on production, epd aaUpt odere vbich an that production equipment 126 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 viU hl*ve to be rebuilt. It is understandable that foreign trade viii always require certain adaptetions markets, and this iti turn demands flexibility end prepcredness in production. At the same tire it i p'asib1e, however, that the foreign-trade workers might meet cotupla itxts from production workers by iaork in; out their own iong-range plans and thus giving a more precise idea of their future requirements. These 1o Yra e plans must be cou i1ed sub tieiently in advenee, particularly in the cane of codex equip- ment, so Chet exteneive cooperation can be worked out betveera de~ aign and production enterprises. Iia this connection it will be very important to set up tech- nical centers, as have unAertaken to do in our mew customwr court- tries. These winters will be able to provide better e?;a ce to our ciastocers and simultaneously wall nzke nice o prrf ound technical market stadies than indiv:luel delegates can. These cen- ters will be used for our exporta of machinery and eguipn nt, per. ticuiarly investment unite . Their in jobs ri11 include ~eare inw tenaive sales efforts, better preparations of contracts, end gen- eral provisions for export. They will follow deliveries and as- sembly of equipment end, after the equipment begins operating, will continue to obaerve its performance so that it vii]. operate to the customer's satisfaction and provide a basis for more oilers or the same kind. Anther important teak vi].]. be market resesreah dealing with further investment activity in a given country azt with checking on technical and design it ovetione of the oo eti- tion. In certain countries theee centers will become to some ex- tent sdvi9ora in large LEWSStaent pry In view of thole Div gae1e th s aerit&'e which are able to aontirn the good tradition of the technical offic ea the leedtng CU loYIk w i ng me rpri ahou11 be sup- -1.27- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 plied with experienced technice1 personnel who also have commercial. k wledge, The woorkera in these centers vill have not only to find potential cuatouzera and adviae then, but will to a considerable ex' tent have to explain their recauirementa and adapt thorn to the capa~ cities of our factories. They must also maintain the necessary liaison with domestic production and acr)uaint our plenta with the requirements of custo era and with technical developments on for- eign markets. Intensified research abroad and careful following of tech- nical progress throughout the world are among the leading tasks in the further buildup and consolidation of our foreign trade. J. Mudrunka, 8 y+orker in the Central Committee, KSC' has written of thin job; "The result of close cooperation must be that foreign trade informs production of the experience of other countries in introducing new techniaes, how our products sre re- ceiva, and ghat improvements show be made. The valuable expe- rience gained on Foreign markets ahould be included in the tech- nical-development plants of individua1 producing plants and the plane compica shou3d be further in~roved an the baais of expe- rience gained later. In order to achieve thia coal initiative must be developed on both sides. In addition foreign trade must bring beck all new and :valuable experience concerning technical devel- opment in general. This experience wait then be applied as rep- idly as possible in our production" (go~ve?ml (New T)ougbt], No 3, 1956, page 229). It eel of course be admitted that the working style of the foreign-trade epperatur in cert L hectors still has not entirely f ~~eed itself of aertein bereeuerstic avtbods which definitely do not contribute tovu mine the patb betxeen producer a for- eign eoe u '. ]let in a plsneed eoon y it is not oaly necessary Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 but qu$te easy to achieve high adaptability, speed, and f1exibi1.. ity` Xn order to make prod.uctiou' job easier In providing goods for export the foreign-trade etterpr aea must present heir orders in time, and in these orders aU details mint be clearly exp1einedd so that the export casterials will be delivered properly and in tires so that ~oreign~trade workers viii consider weys of incres- ei foreign sales of those products in which domeatic production has not exhausted all its csp?~city$ so that goods prepsred for shipment be picked up in time end factory working morale trot in" jured by delays; end so that the "signu& be applied in time acid not changed latex (Te 'signuta"' is the number ox other symbol which is affixed to sn individual shipment >- carton, sack, etc -- for shipment abroad, with the Items entered in the proper invoice or account for goods shipped and i the transport documents.} These shortcomings do not result from the basis of the present or~ ganizetion+al system but merely represent bad execution of the functions wI ich the system assigns. Therefore these sflortcoIflfl1 s should be relatively easy to eliminate. In the Ministry of For- sign Trade and individual foreigaMtrade enterprises these errors are really being gredually liquidated. by proper checkups; and this provides aesureace that liaison with production will be maintained by the Ministry and its apparatus. There is no other way to solve the problems which arise be- tween production eod foreign trade tin for the workers in both sectors in every instance to undea'Stsnd the difficulties t Bich neat be overccii, using the overall rational economic 1Aterest as e standard. 129 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 dare Urderatsr)iui of export Re wire nts The uninterrupted growth of Czetoslovak foreign trade awl its continuing expansion .nto new markets are proof that our inp t2stry has in general been able to provide the necessary export goods The success of our forei trade should of oourse not be cousidereti sitily as the results of the acquisitive and organiza- do l work of the forelgn.-trade enterprises, but in it we must see above all the results of the efforts of our workers in production plants. Despite these generally succeasful results we can still see considerable evidence that many production enterprises forget that every breach of discipline in Orkin for foreign markets in- jures the good reputation of our products and thus harm our ex~ port interests. Faultless and tiely fillii of f oreiga orders is not only en eeorwizic matter. It is at the same time a calling-card from our entire nationslized industry, our econouiic and political system. As regards our relations vith the Soviet Union and the people's dem-acrecies each failure to fulfill plenned deliveries on our part or shortcominS irl quality shows up directly in the fulfillment of their pray whether production, iavestment, or retail turnover plans. Therefore it may be considered serious infraction of the ,principle of >xutual aid snd cooperat;sin em~ng the eon,tries of the peace camp. Similarly we niuct keep in uind the fact that the working people in the capitalist countries judge czar republic anri its regime according to the products tahich we supply a according to Qur accuracy in filling the orders xe receive. It is from his eta~gdpoint that we uiut evaluete wozt on export oxdea~r in oar iMust l enterprises . Our goods work is knova eM appreciated abed, therefore our products joy the 130 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 especial confidence of foreign customers . We must not o~y wain tam the good i ~ternatione1 reputation enjoyed by our goods but we meet continually raise the quality of he goods we export. We must ke in mind that today speed in aubmtting bids, delivery time, quality, and price of goads mean everything, because the consumer Is not United to a single supplier but can choose from a urge number of producers in different countries. It is partictU.arly in certain typee of consu,r goads that we have a great tradition and a good reputation. If we are no i in a favorable position in foreign trade as the legatees of that tra - dition, we certainly cannot be completely satisfied aimply by liv- ing off that tradition. re twist continue to develop it, nor cen we permit that tradition to be tarnished or uaed to conceal our own ahorteoninga . By aupplying fat~ttleas goods and filling orders in tide we will show the world that our nationalized industry has greater possibilities than dial private industry, whose owners were raotiveted only bj the search for maximum profit. Particularly as regerda the machinebuilding industry, which is today the focus of our exports, we must keep ever in view our great export goals and achieve them in all weys The great work being done in our rectories must not be spoiled by the failure of some workers, v out of bureaucratic ].Iziness or indifference toward their duties commit errors each as the failure to answer ia- iries, eending inaccurate specifications, etc, all of which may have very unfavorable coneequenoes. The least teilure in our ex- port efforts may give a customer an exeuse to make complaints ageinat us, may cause disputes, end m~y even assn the lase of a market. 3l Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 For all these reasons ali zoxkers in our p1e tts > t un~ do tenrl the economic end palitic4 importance of our exo:te andf with this understanding, work with increased zeal to fulfill ex~ port order and for the good name of their txr$de?tmr on foreign markets. The good reputation of the factory trade-mark ehould becon a an abject of pride of all our workers 7ounc3n Qf art Sue The auccess of our export efforts depends in large trsure on placing on the market up??towdate and spprapriate goods, offer- ing ttezu at a cc etitive price and with short delivery deadlines Further success in exports depends on the accurate flilln of purchaae agreementa . This amine that deliveries must be ode precisely, within the agreed tune llta>l.t and quai,ity specifications De1e18 in delivery or failure to a~intein antract quality are causes for complaint, and uauaUy love unfavorable price conaequen- ces, since the cuetomer will ask for a reduction in the original contract price to make up for the loss which he has sua dined ae a result of the delivery delay or reduced qw+l ity. Above ell, we Ist attempt to satisfy every foreign inquiry with a rapid bid, and in more e u Beefed caseB we must provide for the rapid preparation of a bide Therefore we net reduce as dralg- tically as poasible the gnyvini: rns" itM.MY.NM V'F ti! nereegsru to draw up plans, if the bid requires them, and devote increased scrutiny to the price ~t ich we quote. We t offer our foreign euator rs a broad selection, be certain that we are offering th productl of the hit technical quality, er4 sake available new products For this reoson we t eacelerete developaent, r4 .dept it fl*xfbly to the special wishes of eustor$l we oat fly r uee dsli wary des4.Unes, dmm to cc etiUve Levels, th i stick obao~ 132 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 lutely to the agreed time iimite Nor can we overlook the burning problem of snare parts, since the opportunities for much rra 1itnery trade are ditninished by the fact that sometimes we cannot offer sufficient quantities of spare pi rte. e 1 ortance of Time3ics We frequently owe Much to the t1tie1y preparation of bids for submission to foreign customers - indeed, this is perhaps the first COt~itivu og export success, We shall therefore mention et 1eac3t the main shorteomirga awl list certain exetuples by way of warning, from he experience o~ Technoeexport, an enterprise which or- ganizes the export of ;Large cne hanica1 equipment and .investment traits, we rosy present the fo11owin3 cases Toward the end of iIo- vember of one year an inquiry was sent l?f Technoexport to a product sing plant for the prepare tian of a bid. The plant's answer was not received until the fo11owiag February. sometimes the preparation of bids takes us so Long that our competitors hove time enough to supply the finished product. When the preparation of complicated bids would take us months the coin- petition does it in weeks This situation definitely require6 1i' provement. Our capitalist competitors end the producers in the German Democratic Republic, in textiles, for example, are able to supply samples deeired by a cuatou er within 3-5 weeks, and then of ? ten make up saurples on the suggeation of the customer. Our plants, on the other hand, are this efficient only in handkerchiefs and cotton fabrics, poplins, and dresa materials; in otter products we are far behind, and cases in rich eerding out sa lee took 6 months or ire do not belong entirely to the peat. Foreign trade ott.n re'dree changes ich concern only the and of treetst tad not tM sr-terial. Shirts vii]. be ordered ? 133 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 with the pocket on the left instead of the rights or aingleMbrel s? ted instead of double breasted costs. These requests do not al ways meet proper undeztandirtg in all plants, since they do not require fundamenta1 changes in the production process Each such failure to adjust makes the order yore difficult, whereas positive experience shows that dnd for our export clothing grows when we are able to adapt to the requirements of foref gn customers , For exai p1e, we have begun seMing out shirts with the sate coi 1 r size but different sleeve iengths. This Wight seers to be trivi&., but it is important in order to satisfy the customer anal thus to increase sales. Another shortcouiltg in bids is their incotnpletcness , Tech.- rioexport, for example, transmitted an inquiry for a certain com- plete group of equipment, but the production plant submitted s bid for only a certain machine makir , up a pflz't of the whole group This of course rikea it impossible to satisfy he customer pith e~ co fete bid, and negotiation of the purchase ageernent drags on. A ten thy correspondence often warns he customer to order his products where administrative handling is more flexible, or where he can actually eke personal contact, still another shortcoming is the failure to prepare techni- cal descriptions of new goode and technical documents in general. The foreign-trade workers often miss from production the proper technical documentation, whether descriptions, sketches, or other technical material, which is most effective is demonstrating the, technical superiorities of' our products, end the generelly high quaUty which the poetwer buildup ees brought to our techno1gy. Our plants are avtre that he bidding systetn suet be $.m.. proved. For example, on d.rect ardara frog the Ministry of M chinebuilding, with tI'e aoapezstian of nerpro3ekt in the ede Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 trica1-engineering industry, program was carried out directed t()rard better biddirr~ practice. We may essume that with the s V* gtherting of the sa1eS7 i, W1A in Vi4o8e rodw 1Jion plan 4 3 woxtM fng for export, towerd which tnany plants are trending; particular- 1:1 in heavy ind:istry, bidding practice will surely take a turn for the better in order to provide for timely preparation of proper bids In order to improve operations in this field it will, of course, be necessary for the foreign-trade enterprises to heed the jtzstif ied requests of our design tatitutea and production enterp prises and send 1n inquiries in the most concrete poasible forrni, and to info theca of the reasons wny heir bids were not accepted, particularly in cases of complicated bidding> concrete irt'orma~ tion 88 to wh'y their bids failed to satisfy the foreign customer or why they failed in competition can be an incentive to improve work in the design plants end institutes. In connection with delays in submitting bids it may be no- ted that certain plants lag not only in preparation of bids, but also in aeoding out bi1L3 and other documents on which p&ytaent 'or the delivery depends. This type of delay actually amounts to ex- tending credit to the foreign customer, although we ourselves need foreign exchange to pay for imports of a variety of goods, The rtaace of Price One of the grest'at advantages gained by the production en- terprises from the organizational separation of foreign trade fron production is the feet that they ere protected i"roui the unfevor- able effects of contirnioue price fluciuatiorie on capitalist its. This aaeene that they can sell export products to the foreign-trade enterprises at fixed prieee specified by the etete price list. The rive of price fluatuetions in foreign trade is borne by the for- eign-trade enterprises. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 It would, of course, be erroneous to believe that the sepw oration of production from foreign trade ar4 the functioning of the monopoly as a protective wa11 against disturbing fluctuationa on capiteliat markets has broken al]. connection between internetional and domestic prices or thst the i'oruation of domestic prices is un On the contrary the problem of price is a very 1raportant ore in relations between foreign trade and production, and the clarity and pnambi city of this problem is a condition for the araooth hand M ling of export trade in its first phase, e must keep in mind that a cornpariaon of doiestic and foreign prices provides a check cart the con etitive poaition and productivity of individual branches of induGtry; aor can we overlook the fact that there are types of goods which our couetitors can manufacture more cheaply than we In machinery particularly it is not enough in our bids to show clearly the technical standards and efficiency ref the product; we must also, in terms of price, convince the customer of the prof"- itability of the purchase. With respect to price ve muat welcome any suggestion which reduces the coat of the production proceaa, however trivial it may seem. We have recently had several examples of hia type of inven- tiveness an the pert of the workers. For example, at the Sumavan plant in Vimperk, where they were to fill a foreign order for shirts with a aeam is the middle, a very difficult operation, two workers made an iu rove ent euggeetion which reeultin the design of an attachment which eecelerated production end reduced its coat, 80 that the order yea tilled in time without increuing the ewer of worked occupied on it. At the Zirovnice plant producing teoth~ er-of pear, god* for export a dal improver pertetted a uiacb-ine for drilling holes in buttons so that a worker wild drill 90 in- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 related to exports. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 stead of 50 gross per shift. Axd in Producing theruometers for ex- port the design of a !tew rnachine for aautoaietic filling consider- ably reduced production costa. At the V 1aeeke Wood Pactoriea in Valasake Mezirici, which sends several carloads of luaber end Crete slettiru dtL iy to Eng1ar3d, HoU nd, end the Near East, they are particularly interested in obtaining the maxim yield of iutrber end parquet nteria1 from each tree bole, Proper setting up of freme saws and better orgonizetion of work ede it possible for he employees to save 224 cubic meters in a single rnont1~, atnountin to about 9 carloads of round ticuber . At the Pohuiain Chemical Plants the initiative of the vo?riera workers wss directed toward utilizing wastes so that more than 500,000 extra incandescent mantles could be wade, thus 1ncreasir>g export resources. In retsiworking it can be noted that at the Precision achinebuilding Plants in Hulira transferring certain types of threading and ai.l1ing operaatiorts on rotary machines brought production time down frotn i to a ire minutes At Vitkovice, to produce a single "Igor rotor they need- ed an ingot weighing 22 tons . The new system uses ingots weigh- lug only 16 tons, This ins that every fourth rotor produced for export yes mazie out of material paved, with 2 tons left over' All of these examples show clearly how the coat of e..port production can be layered while cimultaneousayy increasing the op- portunities for selling Czechoslovak products on foreign markets. An important job will. be to reduce the cost of design work, which makes it more oou 1ica ted to calculate priceB in submitting bids for investment units. It a out be noted particularly that 'hasre no price Bast exists for to goads, but the price is being es4 tab3.ished on the basis of apeoW aalculstton, the pro tuati oit en- terprie s aoaetiaaes act irresponsibly sad overestia to prig. Hot .1137~ Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 until their incorrect estiute has been pointed. out to them do they adjust the price with eatonishing agility. This of course makes the Mork of the foreign-trade enterprises considerably raare dig- f i.cult. Delivery Deediite$ Too frequently, and usually uimeceeearily, the excessively long delivery tires which we offer rob us of order a .delivery dates are of absolutely key inaortance, after competitive prices, in our export success, and for this reesorn we mould meet the core- petition as far as possible, Instead, however there have been esses in which we have been able to offer an S 160 Diesel engine for i5-.month delivery, while foreign firma have msde delivery in 4 or 3 iantha. Our delivery datea on hats have been 8-10 weeks, and those of the competition 3M4 weeks; in cotton fabrics compar- able figures were b weeks as ageinat 3-4 weeks. Our delivery dates on linen fabrics are considerably longer than those of the compe- tition. We cannot eonelude from the reletively short delivery times offered by the capitalist countrlee that they have achieved any greater f1exibi1itr through better organization of their enter- pri.see. The principal factor operating here is the fact that with chronic unemp1oyeent the capaeity o: their factories is not fuU.y utilized, SQ that production can be suddenly expanded to aaeet short delivery deadi.isies. On the other hand when the market ie more ec- tive, with full ea loytsent, deft ver~r deter in capitalist entergri- see are coraidersbly longer, end someti>ees, in metallurgical prod- ucts for exp1e, reach 1.5 * nths. Mere are rsn r inet ee in whiob ve were able to surpass capitalist enterprises in delivery dates. For exsmple, the 8te1- 138 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 ingrad Iron orks in Liekovec won an order for mine carts for Jar- van's phosphate mines only because, other conditlotas being equals they offered a quickest delivery. Io. 1955 workers in the West bohemian Ceramic Plants ini Horni briza were able within 3 rr nthe to flU an i ortant order for 150 quintals of white aquare tiles for blast$urnoce use 9nd refractory bricks for glaalmakirig vets i'or Yugoaievia. Growing numbers of plants are reducing their delivery deadlines for delivery to the Soviet Union, China, and Korea This is pram" teat even with our full employment, based on p1anniDi, we can, by better organization, ore flexible planning, and taking certain technical and organizational meaaurea, sharply reduce delivery times, so that we can not only equal but, in a3uie cases, can even surpass the competition. If some pmts can deliv- er within aatiafactory deadlines the other pets must learn to do so too. Many plants are, however, still not sufficiently aware of the importance of sh,'rt delivery deadlines and of the importance of fuli4i11ing export orders on tide. The cases in which our dead- lines, alreac:y long ones, were not fulfilled have had very unfa- vorable reaults. A customer who orders goods in Czechoslovakia naturally wants to have them by the time specified in the contract. Our customers order goods so that they can receive them before the Belling eeaaon. When we fail to meet an rgreed deadline the goods frequently arrive in the middle of the s~eaaon or even after it, reducing or aanihiletin& chaff of selling the geodes, The custo- mer ur4eretag4ably does root wish to keep the goc4s Bitting in the varebouee untU, the next sew, amd therefore be may retuae to ac- cept the -$ Cx e Y theist on large prices diacCunta. Under the 139 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 IOst unfavorable form of payment, the so-c811ed accreditivc, the money to pay for a i~hipment i available in the bank only as ref a eertein deadline. If by this tine no documents ere presented to the bank showing that the goods have been. delivered the acereditive is withdrawn and other inethods of payment must be employe,, less secure and taking a great deal oe time. Thus the foreign exchange earned cannot be used for foreign, purcheses for several raonths . In order to avoid all these unfavorable results we asst ex- haunt all posaibilities for seeing that deliveriea are made vithin established time limits . Nevertheless aome plsnts permit the i'ai ?- lure to export according to plan and allow delays in individual orders. The opinion is still widespread in our industry that ane week pare or lees is not important in n ak1ng deliveries . In export deliveries, on the contrary, a great deal often depends on days end, hours ir. order that the deadline be met, that, the goods reach e certain ship, that the accredi=;ive with which the customer pays for the goods be drag on, and that to fareiga-trade enterprise not have to undertake risky and expensive ehlpping procedures When time has been lost by negligence people often try to mike it up by last-minute efforts. $Ut this always has its dark side. This is shown clearly in the rwt3~ae of a delivery of glass necklaces to Saudi Arabia. 6&hen it appeared that the deadline might not be met the necklaces were actually manufactured with great ef- fort, but the special taet shipment neceseary raised the coat of transportation by 000 arowas. Adis of production gcles as now carried out in Csecho- slovek meta1,lnrgical plants b -s a1vn that the a~ jority of prodic tiae is sit bg the material in transit betveen oper*tions Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 or lying idle between options, end less time ie spent on actual production operBtione, elthgugli the situatirrn should be reverse.. This Bho`ts clearly that if production times are to be reduced sub stantially a greet deal depends on good work organ.ization> The difficulties which we encounter here si ould be eoived primarily in 0 t?. -; planing athod. lneufficient provision for deliveries of sterting material, bad preperation of produetion, poor organization of work in actual, production, unsatiai'actory operational wat gernent of production, and the improper or riiization of final operations - these are the main causes of lortg deliveri times and he failure to meet even there Goes it not indicate bad work when, for example} in a gliass- works more than one third of the mont:'.ly deliveries are made 3n the last 5 days of the ruonth? The roost i.raportant job of all enterprises working on export orders now is to strengthen our reputation for keepirigg our word once we have given It. Men. ple nts have already attempted, with varying degrees of success, to solve the problei of hoer to shorten deadlines and as- sure their maintenance. The Gustav Kliment Pipe-Rolling Mills in chowutov have appointed an experienced, skilled worker for complex checking on goods for export. Precise directives have been issued for the work of all skills working on foreign orders , Weekly con- trols are made and the elininatfon of shortcomings ie checked op- eratienel]1y. The enterprise director of the Bile Cerkev Iron ks, in Hredek near Aokyceny, ho34e re !r fir' i eetings to deck on ex- port orders; this has eaaure~ in a aiu Ie t*ahion that the import . plea was fu ltil in thee, with on1 r a few ao aU exotiona. II Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 At the Julius Pue1k plants in Chomutov they have set up a paroductiorrMdispatohing department which, ors the basis of confirl deUvery ordera, vorka out production graphs for individual caper ationa, controls their fulfillment, and, when the goals are not operatioually met, e11minate1 obstacles. At the KlemeY GottYMai4 Vi 1J11 vice Ir onworkl3 they nave in- troduce. weekly and 10-day determinations of the state of produc- tion of export orders, in ter of the deliver ceadlines during the particular month. In certain plants this activity has been intensified to the point where the control is carried out twice each week at diapstaher neetfngaWhen deviations are detected the necessary steps are taken instantly, in production, shipping, and in liaison with the foreign-trade enterprise At the Uaieov Mohinebuilding Plants the factory trade- union organization encourages the workers toward the proper f'ul- f illment of orders , If the deadlines are threatened the work take socialist pledges to reduce production deadlines. Ir order to fulf i11 export ordears they often work into the night, er4 on Sundaya and holidays, and thus make up for insufficient working discipline and the poor understanding on the pert of the supply- ing factories. A very gaud example of how to provide for timely Ailfi11- rt of export deliveries was given by the Union workers in sn itnportaat depar t of the V. I ? Lenin Pleats in Plzen. They con- ducted aaore than 20 production in8pecticna whose purpose yea to help production and ela to nnT ec Ury lose of time. The gout abers saY to it that ell to ordars vhiOh they apowsocdd v ,e fulfilled tact Ci>aI eM with. prop 4asUty. In e auer of asses the B ec Iromiorks heave Pilled o < d in ;lase tba l1 dom. They have dope this by cueing me- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 terie1s on which production had already started. In the MEZ plant in Vsetiti socialist couietit1on aucceeded in redlucit delver timie to the required 7 months, so that the promised. deadline was met . That the workers in the TOS plant in benec fully under- stand the importance of maintaining all contract provisions is shown by the fact that they pledged that they would zeduc? by 6 Months the delivery time on seven 150 presses, and wold teke other aieasurea to produce an e~:tra 17 presaes for export. The grew ciaioa Machinebu114ing Plants in Gottwaidov adhere absolutes to agreed deadlines. At the request of the foreign trade organs the plant and all its workers exerted extraordinary efforts to reduce by three months the delivery time on a large delivery of shoemak~ icog a~lahinery for the Soviet Union, and thus made it possible to increase aubatantially the production of shoes on raew production lines in the USSR. Svit in aottwaldov also has very gcod experience. There they have been able to see that the warehouse is always supplied with the deaired types of footwear, and that the wishes of foreign customers are supplied rapidly. Not a day goes by but at the workers, eud of course the master work meu, in the shops and the opezrattonal directors know precisely how the export-order plan is being fulfilled. The they can in tirne take the necea ary corrects tive stepa wherever production has slowed down for any reason. Sine a great deal can be learned at Svit frolrn the technology of production and the organization of work, eomradee from the Kag no `rich Shoemektg Plants is Minsk have studied there. At the fi Sokol ovo deapite a number of unforoseea dif'ticul- ies the euesbly sectioa uder cowrde Keka esa bled a gigsa- tic cce rusor far he met Union within the speaUied de fine, is the eutual of J.955. A d*tSiled k nc eu w$ worked out, so Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 that each worker knew precisely when his pert was to be finished, a that the t ate of ezz mr~t 1ft delivery hung on each wo er A large chart hung in the shop showing the progresa of the order was challenging to anyone vho began to fail behind In the 3rati3.ava Electrical kngirteering Plants they rake certain they will keep down delivery time by assembling two or four generators extra each month; thus they keep dead By the use of irzprove nt suggestions and making the neces- sary changes in the technological procedure it is possible to brizig about a substantial reduction in production titae, One need only ? get out of the accuatomed rout and et production diseussions agree on methods which will accelerate and it rove work. Only on the basis of such correct solution can the plants accelerate export orders by one week or two, or a whole mnnh. Not by frantic lastM mirnate measuree but by a well-prepared, thought-out, and organized procedure. Other plants, on the other hand, in the solution of their production problems, show such incompetence that they take each difficulty to the foreig-trade organ, Baking for the necessary parts, power, fuel, freightcare for loading, and other services which are not within the jurisdiction of the foreign-trade enter- prises From the positive and negative exemples which we have pre- sentad it can be seen that the problem oi' reducing delivery times must be solved eyste~tica31y, not only in some but in ell plants working for export. Overall delivery tiro is aoeposed not only of actual production and sssep~bay time, but includes design time, construction, technological p tration, proTiding rev ~tteriela, p*rta, al, so ties, *Ubd veIiU. In the parity of aese* th se presinste the ahortaoming end who will give the necessary ordere. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Those hemroinga and hawinga often scare the custuier away from fur- ther dealings. For this reaaon we need more plant loyalty, reflec~ ted, in the fact that all plant workers feel the impnrtence of rapid elimination of shortconhin s. it IS interesting to observe the procedure among our Soviet comrades : When a fault shows up on Soviet built mmchinery or equipment, at home or abroad, the sup- plier takes the necessary steps on the spot to restore operat ioa, usually within 21 hours. Immediately a report is written on the cause of the breakdorf. If it is four that the trouble originaW ted in production a bill is issued ageinat the producer; if the trouble originate: in assembly the assembly department is obliged g< to make up for the difficulty e should do the same thin For the assembly of investment units we have several spe- cialized enterprises seperute froth production which have proved themselves, particularly in the construction of large electric power plants ?M mote in Hungary, Doicesti in Rumania, as well as in Poland and Bulgaria They worked under very difficult conai- tuns in assembling the Afg an cement plant. ? The Brno ar4 Bratis- lava electriCal?&ssetUbly plants, Metsllurgical assembly in Kuncice, Steel Constructions in Brno, Qiemontaa in Hradec Kralove, Trewon- tax in Chrudira, and Stavosvit in Gottwaldov heve done a number of iiportarit installations and assemblies abroad. Despite this euc- cesa experience shows that, beceuae of increasing apecialiZetion and preps edaeaa it will be efficient in assembly end particularly in repair to use more assembly workers sent directly from to plant which supplied the squipment. For this rsaadn apacial uaeaably de- pertamenta will be set up in the ieportant exporting machinebuilding plants The idle is besicaUy to train here highly skilled tech" nical personnel, With language trainiol " veU, for the jobs Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 abroad, where they will have to represent our aocialiat producticr. The attention which used to be devoted to language courses in some of our plants, such ea the V1. Lenin Plants in Plzen and Kovo- avit in Sexituovo Usti, should point the way for the other plants. It is certainly a joyous mission for our technicians and as- sembly workers to be able to contribute to the construction of plante in the fraternal people's derncrecies ad in remote lends across the seas, where industrialization is struggling ainet econoaic and. political backwardness, Ad it is equally joyous to ald local technicians an1 workers, as Ls usually done is connection with essembling factory equiprient sent frcxTi our plenty- This is a practical expression of technical aid and proletarian interns- tionalism. But even la cases where it is not actually their job the members of our assembly groups make use of opportunities to give lectures and courses to acquaint the local workers (in places where they have been sent to perform special jobs) with various as- pects .of our technoiogy, A grand example of this was provided by Engineer Bor's 50-member technical brigade in Korea The Chinese electrical-engineeri worker }hi Chin-Yang at the exhibition "Ten Years of Building Socialiam in Czechoslovakia" in Peking was given en opportunity to learn to operate Czechoalo- yak machines. He wrote; `11 am lr ebted to the Czechoslovak ape- cialists because in two weeks they have taught ode to operate 13 beautiful machines..." The responsible asad honorable work of our osaembly tecbni- eiane and workers is r aogdsed everywhere. 0. K. Dvorak of the darasdorf T06 received the f o11owing stet t fro London$ "The customers are coss~letely utistiod u+ith his v end r spect him for his excellent kIsNled * of s* hte tools. They would eppre- cite it if ha cow be seat on future tripe to nglessci." -11e7- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Our vorkers return from abroad enriched by valuable tech- meal knowledge er other experience. "I learned i.n both Chine a India that the finest ambassadors of Czechoslovakia in these countries are the products of our people. That is the grandest exM perience, one that T shan't forget, kP says designer Trebin from Doudlevae near Plzeu n And assembly worker Josef Urban of Kovosvit ssys. "Abroad I was doubly proud of our machinery, our people, and of the fact that 18m a Czech." Greater Attention to Product Qualit ghortcominga in quality Injure owe export interests as se- riously as does the failure to meet delivery deadlines. And just as in the case of delivery times s rapid improvement lies com- pletely witbin our grasp, if sufficient attention is devoted to this problem in the plants working for export. Foreign markets are a very exacting test of quality, ark to fail means either to oae the market or to lase out considersbly in price In one foreign order for 70,000 meters of shirtings, pro- duced by the Jiakra plant in Cerveny Xostelec, flaws were discov- ered in the fabric at delivery time and the customer had to be granted a discount. This amounted to foreign exchange sufficient to purchase the cotton to manufacture 17,,E meters of the same shirtinga. Another delivery of low-quality shirting, this one from the national enterprise Utex in Usti nod Orlici, robbed us of foreign exchange to purchase cotton enough for 12,004 meters of the same goods If our planta had followed the exaup1e of other 1ight- industry plants and devoted greater attention to socialist eompe- tition to increase quality our internal market could have received alooet 10,440 extra ms's shirts made of export poplin. Such cesea 0 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 show pare clearly than anything else how important at is to as- sure high-quality export deliveries Quality shortcomings exist st various levels, In the major4 ity of cases the product itself is not 'bed, but its final handling is iwperfect For e;caciple, the quality of our -enc11s is good, better in any cases than the competition's. The shortcotnngs were in their surfsce finit a:4 packaging, so that improveme t was eaa- ily brought about. The director of as export enterprise expressed himself as follows on various metal tools for housokiald use, on the basis of know1ed a gained at fairs; Our products are as goad as those of the cowpetitioci, and. often more efficient; they have been di.ffi.- cult to eel1, however, because their surface finiuh Was unsati6~ factoryF We are now adjuating to foreign requirements on the ba- 819 01' this experience. Whet is true of pencila and small metal goods is true of metallurgical products. 'when complaints cone in they do not refer to basic production but to auxiliary operetions ? Most complaints deal with bad bundlin, packaging, and marking of goods. The principal shortcomina which injure the competitive po- aition of our textiles are in the finishing of fabrics; this is largely the result of the fact that technological procedures are not adhered to in production. In machitiebuilding we must put an end once and for all to cases, albeit isolated, in which the surface finish ie neglected, 90 that peinte peel, mechinea az'* not preoperly preserved, parts are dented poorly using bed aeteriala, etc. It is oerteh]Y bad nev* for those who auppUed the sacbtee that one cuat r had his machinery painted iISdi.tely on arrival. in order to correct their appearance. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 At the Weir is New Delhi we exhibited a very good grinding machine from the OZ plant in Strakonice. The iwpreesion crested by the rnaebine suffered, however, from its poor appearance; he surface was unerren and poorly worked, and the pint pass rough. As the editor 01' Rude Prevo said it looked as thou~i the machine had had sip lipox. As regards finish to ny oi" our piaLts can profit from he example of good work done in the production of Favorit fsctory wheels [bicycles? ] . The q.uality of surface finish and the harpy among material, color, and shape were assured icy collaboration with the creative artist, etong other things. Still worse than neglect of surface finish are cases in which our exported machinery shows actual faults combined with e- quent breakdowns . People talk about one error core than about 100 good features. The competition will see to goat. It is therefore particularly regrettable when negligence in making up orders i`or export injures the reputation of plants doing goad work, as hap- pened to the Oecin Machinebui1ding Plants. One of their battery carts, a `'lizard", showed a aerioue fault upon delivery to Brazil. The Precision Macninebuilding Plants in Gottwaldov, whose products have earned a very good reputation abroad, received 12 complaints in a single 3-month period dealing with fauna in their machine tools. One may well ask what the OTK IuaidentUied3 does when a customer caanpleins about a damaged bicycle, a burned-out electric motor, a worn warm grter, or a set of tongs without a spring. The Jan Sverma Plante in Brno sent 10 treetors to Sweden as an initial order One might expect that they vould have sent out en plary shipment Actuelly, hoverer, loose nuts, unbent cotter pins, faulty h treu1ic eyatem, acid other shortcomings veto diecovered. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 The consequences of failure to devote sufficient attention to export shipments are shown by the experience of s Czechoslovak tech Uca1 group working to restore hydroelectric power plants in LL' LJS. ve+ . ;e can iniagine the er rnous effort require to raise a 3~ton coapreesor up to the top of a 3Ow7evei drop. When it was finally in place, however, it was round that the electric motor cUd not work. In addition the attached description of the machine did not contain a description of the motor, and only the skills of our araserx-bly workers made the motor operate. Our welders also did exw cellent work until they used up their carbon electrodes, since someone had forgotten to send spare electrodes. Again our workers knew what to do, although it is possible that if they had not been there no one in this faraway land would have known how to got the machinery ar4 instruments into working order, which would have c8u6 d serious loan. Similar cases, in which imperfect parts spoil the effect of excellent products, are still quite frequent. Czechoslov4 r>xrtor- cycles are the pride of our export trade, and the automobiles which we export are also very valuable. What is true of the vehicles themselves, however, cannot be said of the wipers and other equip- ment; and the factories will have to give greater attention to the new developments in peaking, brake iininge, types of clutchea , etc, being produced abroad. In other Czeahoalovak products discrepancies in the quality of iadividual parts are at fault. The good reputation Which we build up by the excellent quality of a large number of parts can be lost utterly by a single part which fails to maintain the pre- ecribed quality. Standardisation is particularly urgent in the paper indu*try, and more attention ahould be given the matter in Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 the phonograph industry We must be relentleas in the utter of quality, end, not shrink from abarp criticism or thoroughgoing self critiaisrn. Cr oaeiy earmecte3. with gruaiity are to cotipi iats of our customers who point out the relatively limited selection in cer- tam types of goods and the paucity of new developmerAts. true pertJ.cularly of eonsun r goody -.textiles anti leather goods, used"u1 ceraraica acid porcelain and glass, in which we have relied on our tradition; it is true also of our phonograph recordings and scmall wooden consumer goods. In all these fields the competi- tion is slwsys putting out new products, introducing new forms, and making changes to meet the wishes of the consumer; sad here too we must keep pace with the competition. Our light ir,ustry, particularly textiles and lesther~rorking, must keep up with changes in i`a$hiol and taste and requirements in cut, pattern, color, ac< cesavries; finish, etc. Our textile pattern designers have inauf~ ficient contact with the market, and t)it expleims why they are forever proposing pattern which have already gone out of style. Mere are of course many plants which ahoy a great deal of initiative in this respect. For example in the production of cosh tunic jewelry at Jablonec they are milking every effort to keep up with the coietitiola in replacing glees, metal, and other familiar materials with plastics, and they are already producing goods made of combinatione of meteriala . The developmental centers is this field underataod their job as being not so much to keep up with competitors but rather to keep bringing out new px'oluct8 1 thus delmanetrete the maturity of our ao~aialist production. In the n8- tionl enterprise 8oheeia the workers he on their own initiative made new proposals for printing decorations on porcelain, and new, testet'Il1 oombiD*t deco ions, and thus put t elves in a posi- 152 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Lion to offer new ark deslreble porcelain patterns on foreign u&az kets F At Svit in aottwaldov they heave included in the domestic 8nd export collection -ae; patterns produced by the Gottwaldov patternmakersAs an example of careful attention to quality we shail give instances from the textile and food industries. At Sui van in Xiatov~r "trubenis " are used to il1umanate the collars of export shirts ire order to detewt the smallest faults, so that goods for export pass througb quality control as though under X-ray. Products of the Plait of International Women's Bay its Bratislava ?_ thread and embroidery yarn ?.. cen stand up to coon'- petition throughout the world beceuse they are produced with the Meat care and their colors are permatient end vellwchosen. It the Plzen brewery in 195 they extended the guarenteed lager time on export beer In Hudver [the Budejovice brewery? .I they also devote the greatest care to quality. In order to assure the good taste and quality of beer even with the shaking which it experiences in treve].ing and under tropic ten eratures saaples are taken from each brew and subjected to remarkeble testa: first they are placed in a special rocker and shaken, turned, and jolted for 150 days; then heated in the laboratory to 45 degrees for 3 wed; end then cooled to the freezing point for one dsy. This surely guareftees that the beer aen take adverse conditions. For this reason we get from abroad not compleinte but nerve orders. This ie 8 very good exenzple of how some export plants attend to quality etad maintain the reputation of their trede?a $rk$ It should apply to all plante producting for export, providing of course that the quality of pro ucta for the c tia aez tet not be overxooked- in tha effort to produce high -quality export gooda. 153a. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Czechoalovak cor umera also have a right to goods of the highest qualityA Particular attention must be directed toward completeness of line. In the case of textiles we sometimes see instances in whlcth a producing enterprise does not supply all typesog or is lack- lug the sizes deaired by the customer. Understsrkdsbly tipnts of this type, partIcularly if the content .' packsges differs gars the invoice, csuse the greatest disestisf eetiOra and justified complaints i'rora the customer. Coi+pleteness of product is particularly important irx furni~ Lure, which is shipped knocked down, and of mechanical equiprient Otherwise assembly is disturbed or completely impossible, it takes a longer time to make the product operable, and his dissatisfies the customer and anuses economic loss on both sides We export considerable numbers of "plymsalpresses but we do not supply the necessary plymsol aids for uakiug rubber shoes. We must supplement the variety of motorcycles produced by adding scooters, and complete attachments must be' provided for the trsc~ tors we export The problem of the quality of export goads roast receive broader attentinnA For our goods to be considered really high quality they must be on a high technical level. The Importance of Pro eesive Techniques. Neither competitive prices, short delivery times, nor ex- cellent quality by theUMtelve8 will 8$$U1''e ue coatiaued eucceea in exports if our export products, particulez'ly aacbin ry and equip a eent, are not oa the h& beet teabniesl level. We avast Mait self- criticaUy that in all fieldli, iDCluding ev*n ~chieebui74in8, we heave grova accustooaed to the o ne.sided effort at gjantity produc? l~4 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 { Lion: In a number of products, of course, we have placedburseivea in the lesd in world technical progress, but n others we have fallen behind. Let us consider a typical example, the transition from steam 1ocon tives to Diesel-electric. The former manegement of the CKD Sokolovo ignored the deve1~pmenta1 work on Diesel-electric lococro tives, anal taus harmed not only progress in our own transportation but our export opportunities as well. The situation in the axle of machinebuilding products on the world market absolutely requires us to concentrate on the quickest possible introduction of prototypes into aerial production. ;ie must not repeat the ease of the highly productive PS 31 lathe, the prototype of which was developed as far bsck as 1951, but which was not tested out until. 1955, so that many foreign producers have paased us by in the meantime. Inaemuch es we are unable to bring about rapid development in all branches ourselves it is desirable for economic and techni- cal reasons to concentrate on selected fields, master them in all, aspects, and ecbieve and surpass the world level in thy. At the came time we must strive toward a proper division of labor within the denaacretic camp. "In our relations with the countries of the socialist camp we can see the development of their own modern, technically ad vanced production. hia is retl.ected in the justifiably increased duds of our democratic partners for technical quality and econ- omic etficiency in the machines and equipmsnt they import," wrote Deputy Minister of Foreign Trade Jerostav Kver in Kovk (Forge Worker] on 5 October 1955. "This attitude will be a decisive fee. tar in th scope of our future deliveries to the countries in the ?155- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 socialist camp, 8r4 will be baeica11 decisive in the queetion of whether Czechoslovak industry will be able to occupy the position of bringer of technical prowess in the democratic camp. Sigh quality of our uachinery and equipment in not only a condition for more simply meeting cffipitalist competition but is necessary for the fulfilment of our econoi is and political r fission in the econ- omically backward countries Technical quality is one of the - sic indications according to which the world compares the produc- tive capabilities of the capitalist and socialist economic systems We have presented s nurziber of evidences of the continuing progress of Czechoslovak technology and of the success which we bave echieved in exports on this foundation. Not long ago the So- viet journal Literaturna Gozeta enumerated all the tecimical ex- penance that the Soviet Union had received from Czechoslovak in- dustry which we extended, in freternal cooperation, in exchange for extensive Soviet technical aid, Reinforced-concrete railroad ties, which will be produced accox'di to dcumentation from Czechoslo- vakia, will present Soviet transportation with. broad opportunities, particularly in regions without forests. Engineer Holuba'a new method of casting punches will reduce production time eight -fold and will at the same tine double the lire of these punches . The same Soviet journal also wrote about the Czechoslovak Z-4 330 co?- bine with en air-cooled engine which will i'iald wide use particular. ly is Central Asia. V. Svety'e shuttlelea~s loom, which will also be producied in the t8 R, vii]. be enormously important for soviet induetry, On the o?casion of tb~ spring teir in Ipsig in 1956 Die Wirt* 't f Ecottomias j, publish ri in the democratic pert of Hrer- lin, motet "Csechoelavekis has ostur into a state which not only Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 need not fear comparfson with world producers but from which, as the : itish wachir butld1ng specialist William purge has said, the older industrial countries can Learn a greet deal, Along with the crchinebui1ding industries of the USSR and the Gern Democratic Republic this itdu ry in Czechoslovakia is now able to solve any technical probletu which arises and cart prate he econotnic deve1 op nt of the entire demoocretic camp 4 An i. portant role i prayed by the specixal ze Mmarapower potential., which hss bees built up in recent years in Cxechos1o kia. This is how ;.ersuasive our success is. But at he sar a time we nst become self-critical and learn to admit or shortcomings 3 ?da have been able to admit the!, ot4 cure them. de have every op portani ty to do ac . In our jubilation we must not underestitmate our anorteowinga ? perience iii 19 ~ showed that our insufficient tunics]. maturity coats us foreign orders worth several dozen mullion crowns In sslee of equipment for electric-power pmts and auger factor- ies This very fact ahows that in marhinebuilding we nave a.ich progress to make in a number of areas before we reach the pinnacle of technical quality. As a typical example we may mention the case of a regila- ting trap fora r, on whit i we sent a bid to Finland. Tests ahowed that its power losses were eo rich greater than hose of the com- petition that our equipment would have coat the customer ire of ter 2 years of operation than the cost of the entire equipment. One cauee of 1oaa on foreign , arketa is the greet weight of our equipment. A 27-meg VOlta a turbogenerator manufactured ny vei n 8 tone more thn a product of the H -Hoveri ft with tbR same chareoteri$tia$. Zn thie cue, vith the esme over- all price, the eoi etition is selling Aatertel for 10.50 Csecho- -157- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 slovak crow. pe'r kiiogz i i h1 a we ~re s~e't 14 ng It for 7. ? crowns ode are giving eway i8 tears of material. Similarly he Skade 1200 oar is 200 kilograms heavier th m competing care in the same cate- gory? Similar exau 1es of technical backwardness are of course to be found in Light industry as well. For example he competitive position Of Czeciaoslov;k texts 1es abroed is weekenerd by the fact that insufficient attention is paid to their crash, shrink, a d I 7ater-resint3nce qualities, In L ioernakfng we are also behind in the use of art's ici81 ~tseraiS'*,, leather 1Cquer, a1id p1a6t~.c soles. Here, too, the testing stage of certain products takes mach too long, so that frequently products have ceased to be new ar4 have lost wh itever price a tentage they might have had by the ti they reach the market. Open criticisci of our shortcominga and a l'ew -aafevorable corn- parisons must not, of course, lead to discouraging conciuaion$; on the contrary, these shortcomings must be an incentive for improve- rent. This in~provernent can actually be ac:tieved in a relatively short time by proper organization and the application of appropri- ate measures. For this reason the development of new production techniques and the achievement of high technical quality are ammang the principal gads of the next Five-Year Plan. In raising our technical stendards we have made outstanding progresa, and therefore criticism of shorteom Inge and backwardness in a few sectors mkt o e taken only as a challenge that maxim use be made of the gi - ,mantic opportunities of the socialist system for the general de- velopment of teahuiQ81 progress on the broadest possible toL' etion. ort8 to tii iqs The problaa of preparing ahipm is for the tropics is close- ly connected with the q stiou of technical perfection. With 8 'ow- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 ing exports to countries within the tropic zone we must devote in- creed ettentian to protecting our prodw is ugaiiist the tropical. climate, principally heat and humidity. This is true not only of our machinery, perticulerly of insulation end 1acquera, but also of tires, foods, and certain other products. Here we encounter the problem of so-called tropicalization, meaning the har4ling of products in a manner appropriate to the tropical climate, with tee peratures reeching IL.u degreea Centigrade and relative hwnidities of So to 90 percent, i.. e , , twice the water vapor in the etrnasphere of Central Europe. Many of our plenty working for export have already had con- siderreble experi'nce In this respect A great deal has a1ao been done by the Reseereh Institute fox Materials Protection in Prague- nebus~.ce and severai other reaearch institutes, such as the Micro- biologioal Institute, Caeabos1ovak Academy of Sciences The Rew search Inatitute of Electric Power Engineering in Rechovice near Pregue was aaeigned the problem of tropicalization as a special progrem in 1953. This institute tests electrical-engineering ma- terial.a ~.- lacquers, fiber, technical resins, ceramic and mica in- sulatora, and other meteriale -- in e!rtificlal tropical atmosphere in specia1 rooms .blia research is concerned with the effects of" both high humidity and said. In this connection the eeteblishnient of an electrical-engineering research station in southern China, which is concerned specifically with problems of tropicalisation, will be very important for us. This station was Bet up in 1955 by Czeehoelovek experts, vbo trained 30 Chinese specialists here. Electrical-engineering, pbysico-chemical, end microbtologica]. groups warn here, as veil as a g xip tar deve1OPing electricsl-em- gineering equips nt sad the taabnics . eeasgaeent of poor stations. In its exeainati?n of chengs in the properties of vari ly-trea Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 -159r Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 ted sart~ies of Insulators and products under a tropical climate this station work in close lielson with our Research Institute of Electric Power Engirieering in Bechovice. A distance of several thousand ki3.otaeters is z o b stele to the close scientific and technical cooperation which has developed between Czechoslovak and Chinese pioneers in new trends In tropicelizatioza. The Czechoa].o4 yak maritime ship Repubu.ka is also testing verious materials to see hcna they are affected by ocean water and variow climatic zones . Broad horizons open up for the use of glass i'it-er and cer- tain plastics in aolving the problems of tropicallzation. Peints acid lacquers must receive no leas attention than insulators , For this reason, for exarple, in 19% the national enterprise Pragolak in Prague was given the speciel task of providing for production of special paints for export to tropical region. Pena One of the rat ileportant aspects of satisfying customers Of machine products is providing spare parts. A well-working tuaT chine or vehicle is useless if spare parts are not available when original parts wear out, S?me plants satsfy this condition well and remember to send sufficient supplies of spare parts. Such plants include the factories producing Diesel engines, in Plotiste U. LBut other plants have permitted our autolaobiles, motorcy- cles, tractors, and engines to stop operating before their time for lack of spare parts. It is no secret that in some countries local entrepreneurs have begun producing spare parts for Czecho< slovak vehicles when our plenta vere unable to supply the neces- sarh spare parts in time. A radical improvement is certainly necessary here, We have undartekea to do this, and the results are beginning to be felt, In exportipg those automobiles, for iastenae, wbiCh we ere now 160 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 producing we also sent a sufficient number of apace parts. lu the case of automobiles whose productiaa has been stopped, on the other hand, proper aupp,ea of spare parts have not been provided suring reservea of spare pares rema1na a problem in this field We rwst send spare party abroad in sufficient gtaaritlty to keep our vehiclea in proper ank uninterrupted operation. But we elso have a primary interest in expos is of spare parte for ether reasons: exW port of these parts is more ;arotitable for us than that of the ma cihines themselves, end can play a very important role in our over all ecport program. The experience of some countries with mature rnachirLebuild ri industriea showE that the foreign-exehenge yield of epere parts sori~etimee reaches ho percent of the total foreign- excharuge yield lu eny given branch of uiachinebuilding. This fact store than outweighs the disedvantagea which are pointed out by the production enterprises when they are reed to supply larger quanta titles of spare parts In eny cane the matter must be solved in such a way that not only the exporting enterprise but the produc- ing enterprise es well will be interested in production o? spare parts, and not lose in the prvicees, particularly when we follow the Soviet example ar4 set proportional norms for the production of spare parts . With each delivery of vehicles, machinery, and equipment we taast supply a number of spare parts proportional to the total delivery. When pints are not supplied with the proper equipment it will be necceesary to expand production by adding shifta in comer that machi a cepecity be fully utilised and that production of the necessary parts beguarend at all cost. At the aame timer we iuat set up ree-t1y stocks of spare parts, These maiiuree are a necessary acmditi for the euaceseful growth of our macbit uilding exports. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Associated with the prober of spare per'te is establishment of technical service in the countrieo in which a large nwaber of Czechoslov automobiles, motorcycles, and tractors are 1o opera tion. Thi.~s is also one of the Est urgent problems facing us. Some plants, such as the Miada Boleei av suto bile plent, Which p duaes " splert ks'' "? the gkkods hO - is already making prepa- rations to give languege courses for etn1oyee8 in order to build up ced es for foreign service to custrmsers . ~oinin P~roductian to Fprei Advertisin For Czechoslovak foreign-trade enterprises to be able to de- velop proper advertising abroad they amt be provided with more concrete technical material from the producing plants. For this purgose the advertising departments in these plants must be stren.. gthened 'One of the most important ways of advertising 0zechoslovek products abroad is our participation in itternaticxn&l exhibition$ and fairs. In 1955 we participated is more than 30 'sire and ex- hibitions, 23 of ~ahieh were in capitalist countries. But these in~ cluded the traditionsl faire in Europe (Utrecht, Copenhagen, Milan, Brus9 , Paris, Stockholm, Bolun (Solingent3, and Vie ), visited by about B, 500,0x3 people, and the fairs overseas (Toronto, Mel bourne, Reykjavi=k, Karechi, Casablanca, Djakarta, DamaSCus, New Delhi, Addis Ababa, end Reza), in addition to the exhibition et tent in Belgium, which wss, together with the ebibitiofI in Helsinki, Cairo, aad Boa y, ett ded by abaft $,000,004 pecple. These faire ez~d trduetriel ewhibitiOn$ hid great casasroisi end political. inortenae for us eed, on the besis of expertAee gained at the, the fair prvgr a for 1.956 was expeeded Experienced shared eieult*n ou$ly, hewer, that in c r to iuareaee the effective- 162 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 n a$ of our expositions it would be desirable for the production plants th elves to talce a direct interest in preparation of ex- hibits ar4 to be responsible for their quality and shipping. A healthy decentralization of advertisitg activity std grey ter participation of producing plants in advertising prograil undoubtedly increase the effectiveness of our advertising program cbd, Pam ' w_ n I ortant Factor Proper packaging is one of the cardinal conditions of suc- cessful export tradel therefore the responsible workers in Czecho- slovak production plants should learn what a shipment is subjected to in its voyage to the foreign customer, particularly in the case of deliveries going overseas to countries with poorly equipped ports, or on journeys where they will be shaken greatly during the voyage. Good packaging can save millions of crowns in foreign exw charie . A. good and reliable package is an ir4icatfon of the product itself , A good product loses in value if sufficient care is not devoted to its passaging and protection from accidental injury. It is particularly important in the case of more valuable gooie for the package not to offer opportunities for theft. One must reai- iwe that certain types of packer which are satisfactory for shipment to eezrtein oouatrieo are inappropriate for transit to other places Decisive factors bare are the geography of the coua- try of destinetion, its Climate, ar4 its port facilities. The colonial ead d+e~ersient ar uatries are kept teebniaally akverd, end therefore the handling of shims in the ports end later transpor tetion is poorer in times cseuntriee than in the acdern ltaropesu ports . Th.refore if a e sin type of peeksgthg is s*tiefaotc w 163 M Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 for modern port the package tint still be droners with particular cure at1 fixed securely when other aus of tranaportatiof acre chosen. It should, also be kept in mind that 1arge trans-oceanic ships have large cargo holds, so that the goods Intended for core distant ports are on the bottom and subjected to great pressure from the goods above, destined for earlier Aorta . This type of loading, fox example, has reei~it that when. a ships ut of automobiles was sent to Bangkok only junk arrived; the shipping eotspeny, in order to hake full use of shippir~ space, had placed another hcsvy load on top of the crates . Under this load the crates broke down axed the tops fell in on the roofs of the automc.biles ? The loss totaled ,000. A similar loss resulted from the shipment of enacteled tube, which are placed in special carton for export- Trough the corners of the cartons, from bot- tom to top, paa8ed long acreira, enddng at the top in hooks for the cranes to catch. The surfaces of adjaceztt tubs were covered with felt. tievertheleas the ships nt arrived In damaged ..cor4lticu. as Just ,the designers of the crates for theutotaobiles never ima- git that the taps would be overloeded, the deaiguers of the tub cartgas never thought that the tuba would be in any position but upriht. But st the port why the cartons were unloaded there were no cranes, and the crates were unloaded from the side of the ship, being hauled from in front. The carton8 were unable to tale this treat ctt, twisted, the O Lt packing fell out, and the tubs were dam. In both cases it vas pravathat the da*sage waa the result of i~rcper hantlind by a 3O S$ of the ahiping aoepani, but onty after 'very' cco. UastiSd negottati$ by the s+ ]oYak State In$1 fCe moiety. At the ease titre it is as esz tbst it is in the interest both of cxur ate` and of ourselves to svoid ac~ Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 cid.ent like this, since &ei if the demage is made up by third rty the econoriic loss remains It is still worse ~theri these los- sea occur because of our awn negiigence or are directly caused by us, The workers who are esei ned the pack ir1 of goods for ex- port in the production p]nts, particuiarly the designers of ex- port peckag, Est rnake use of the experience made available to them by the State IriEuranco Society, the Czeehos o 1 transporta- tion enterpriacs, end the "oreign-trade eeite ri8es, to realize the stress and the f'requenti' improper haudi1nwhich products un- dergo during a transoceanie voyage, snd turn their atteritio~c in this direction , It is a .greet error, ~thieh often costs us dear, when people thIrIk that it does not matter if goods are demagedd, since they are insured an the contrary such damage must be pre- vented Some plants have had a great deal of experience in export packaging and are very inventive oa this subject This is true particularly of plants in the food industry. The cereful packia of Czechoslovak hops and malt for export shipt~ent deserves partic~ ular appreciation. In Zatec they are iow testing a new etho of packaging hops for overeeas shipping. The pecking crata5 and cyl~ finders have been replaced by a pLestic container de of poly- ethylene. A fine, translucent membrane protects the contents. For better shipping the piaetic is wrapped in a jute container which is tied up with knots with which the bUZI13e8 ere handled in lowi- ing. With the aid of workers is the paper inaustry a very clever e rt package has been developed for bottled beer frna the Plzen brevery, Zcra in Que er4 or candy facts are si east to the leer Eat In ape aially fo rg s boats ao that they cen be curried of the beet o~ l$ in cersene ? Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Qth~r plants, h ever, often overlook the ortance of pacckeging. This is the only p ible explanation of the beciward method of paekinj which we still see in some oversees shipmrentc of tnchinery, with arrives at its desti.aetion rusty. Beta>ee o b paging in boxes eome parts arrived demaged, Bch understand- ably not only ceases dieaatisfoction on the part of the customer but coats foreign exchae spent on the necessary repairra . Severe coal elnts have been icdged against shortcomi. iu packaging in the metallurgical industry. At the Bvern& Ironworks in Podbrezova the problem of psckaging vas discussed with the work- ers; they now use sheet iron inatead of wire and the corap leints have stopped They ere also Improving their pork in marking by using beer colors and correcting the "signum" ever while 1oad.ingSimilarly at the Vitkoviae Irouworts they have realized that if they ere to meet the demand that goods be better prepared for shipping this Cana greater eonsuwption of binding material end greeter labor expense, but that this is nevertheleaa necessary end desirable in the interest of he good international neme at r~au- tation of the Cxechoalovak mete1lurgica1 industry an its products. We tauat mace the rolls of knitted good? tighter for ship- ment? because our former incorrect method increaaed maritime Ship- ping costs, which are deter fined by cubic volume in these mete riale This exemtple also n 1cee it clear that the ~aarkera must be sy teutically and broadly instructed and trained in the hailing end shipping of products for export Packaging is moet immortant, of course, in the case of del- icate products each ec glass and porcelain. In this cue poor pack- aging may cease reel dam, es happened with a ship tt of porce- lain dishes to British lest 1 icet out of two cretel only a few plates wexe unbroken. It is s urely unnecessary to spoil our goad 166 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Ill ^ Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 work in this wey ar,d ruin our reputation oa foreigc zkets, since to ere able to solve much cadre serious productiau problems Even :.iI we give the great car a to the secur ty of d.s pec1u3gir4 we must sirnultaneouslY see to it that bulky psckagin ; not incr a shipping coats. It one plant producing ueefu1 porce? lain they orig uaUt pawkaged aoue ooda for Iraq, in 100 crates 'with a volume of 56 5 cubic caters. preliwinery calculations showed the sales referent that this peckagiiig would render the deal unprofit? able from the foreign~excha a standpointA This 3s because in ocean shipping one pays by volume, and the trsnsportation costa, which go up as volume increeaes, frequently force us to stap doing bu$inessP In this particular case the referent came to the plant with the request that the goods be repacked ern the plant try to keep the volume down As result the plant repacked the gooc1s, and the same products wart' pocked in 60 crates instead of the ori~ goal 100 et4 the volume reduced by 30 cubic peters. Tia saved shipping costs of ~,OOO crowns in Eng.ish pounds The deal cotU.d be carried out and the economy was saved valuable foreign exchacle. flow mai y similar aevit could be caede on other shipmenta if the proper attention were paid to this problem! mach packer and shipr per in the producing plants has the key to this problem, ar it is their Job to keep in mind in packing each crete that the apace saved repreeents foreign-exehange aevir. In the oeser of some proriucta iechinery, vehicles ?~ the deaigriex"a can keep in afro that uuneceeeery projections t engles will unneceearily increeee the vol. a e aM therefore ehipping coete of the product. The Groh Institute for pate Technology can do vai> feat service is soLving *iai]ar problear for our iegustrie~ . Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Considerr b1e attention taust be devoted to the climatic in- fluences (tecperature and humidity) through ttich products un.t pass on, their journey to the Custoraer, particularly in ping through the tropic zone4 These influences are being ecentifiolly inves~ ti.get,ed by the P,esearcb Ittute for Materials Protection in Prague41ebueice Our factorlea should be urged to cooperate closely with this itastitute, which is making its investigations even on Czechoslovak ships, and is checking the stabiiity o' in- dividual products For completeness it should be pointed out that in packagtug smell piece goads great care rest be devoted to seeing that the nutnber of pieces in the crate correspond to the number in the in- voice. his is necessary because we are forever getting complaints that packages contain a smaller number of pieces than the invoice indicates. In some fields as many as one-fourth of all complaints revolve about thin subject Proper narking of packages is very important, The factor- ies frequently atark ahipakenta differently frorn the way the for- ejgn-trade enterprise marks them in the eccoaapanying documents and invoices Careless narking causes difficulties in loading and unw loading, the page are mixed up, and complaints result. The foreign-trade enterprises natur+i11y require the ship- oting doc~ uriente to chow the same markings 88 the invoices end sccreditives, and in such cases the port expediter must uauelly give the ships e guerarstee for the difference in merkinga . Thia guarantee of course shove that something about the shipment is out of ortez', which disturbs its nol shipping. One Hare ebaz'ectez'jetic sitter . Ia the case of one large delivery to the met ion, ahicb sae sent in stages, a five- figure amber had to be tinted on arch piece shipped. In the Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 p1ent this f'Lgure wad aft'txed by hand, although it had to be writes tm arre than 1,c times in all, and not until this eras pointed out by the receiving cou daear Wes a stencil de, It should not be nec.~ ssary or the foreign customer to do our thinking for us; we rniist ourselves the of these thins in order to simplify our ~;ozt; R ci. 8hipin Costs As we aw eve seen, the problem of paekegi Lg and. shipping fees sre closely allied . In the case of eome goods shipping costs may eel the total price of the goods his takes it perfectly clear how is rtant it is for us to save shipping costa, since in delivw exing goods to oversees marketa we have to cover much greater disw tang than the competition, which heee its own parts. The importance oi" the weight of goods in shipment 18 shoran by the maple of the shipment of wet lumber, raw ti+iber, end lath for crating. The greater weit of wet wood increases the cwt of tranaportation both within Czechoslovakia er4 abroad, 88 Wefl as feea is transehipa~ent and trensloElling. At a certain period the average weight of timber exported equaled 5EO kilograms per cubic - meter, although the average should vary between 5po and 550 kilo a in S)j!!!!!' seal winter, respectively If we added up the cost of this extra weight we would find that the extra ahipping coat would total millioaa of crovns each year, not to. mention the fact that unnecessary weight my Urdens cxar i'reigbtcar pool. When we consider trsaaportetion in foreign trade i+e must realise what a web of problem+r amt be eolved. All goods which we expert in one year repreeeacct about 15o,Ooo ehipmente, i e., an everege of 4QO export ebb daily. The teak of providing trenspol't for all. these ship t$ ebroad is the job of M trena, 169 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 the transportation and shipping foreign trade enterprise in Prague, which also organizes the shipment of goods imported into Czecho- slovakia. Another transportation enterprise, Ceehofracht, in close cooperation vith Metrans, provides ocean transport, using among others our own three ships -- the Julius Fueik, the Lidice, and the Republike. Metrans combines all export and import shipments so that taaximum tariff and foreign-exchenge advantages can be taken. It makes up small piece shipments into carload lots, so shat transport media can be best utilized and shipping accelerated. At the seine time it cooperates. with similar enterprises in the USSR, the peo- pie's democracies, and with enterprises in the capitalist countries in order to obtain for Czechoslovakia the best rates and conditio2. To discharge all transportation tasks in time end at the least cost requires much effort and many headaches, because in ad- dition to normal shipping there is a large number of special prob- lems every day. One might think the problem of shipping a locoano- tive to Shanghai was quite simple: you just put it on the shortest rail line. The trouble is that railroads do not have the same gauge everywhere: Soviet railroads, for instance, have a wider gauge than we do, and it is for this reason that we had to build up the large transshipment point at Cierna ned Tisou for rail traf- fic with the Soviet Union. Because of this obstacle the locomotive had to be dismantled at the Soviet frontier, placed on five Soviet freightcars, and transferred again to Chinese freighteara at the Soviet-Chinese frontier. The trip to Shanghai took 5 veeke. The shortest route is not elvays the ch pest, depending on tariff differences. Water shipping fe eubetentlally cheaper than rail shipping. Therefore ve prefer to ship ao~re goods by a combin- lto Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 atiou of rivers and canaala, or to go roundabout by sea, rather thari to use direct rr11 canneetlore, For exattiple, Czechosiovak sugar is sent to Switzerland froth the refinery by rail to the V.tava transshipment paint where it is transferred. to river barges . It travels dovn to Vitava and the Babe as far es Hamburg, thence it goes by sea to Amsterdam or Rotterdam and again by river barge to Bagel in Switzerlandy er1ey travels from southern Moravia to gtraaburg this: by rail to Bratislava, then down the Danube to Galati, through the Black Sea to the Bosphorus ate. the Dardanelles, through the 14editerranean Sea to Gibraltar, up to Rotterdam, end thence up the Rhine to Strasburg (Cf. Fr. Smrcek, Dopravni i tens v xnhran ctitat obchgde (Pransportation Insurance in Foreign Tradej, OrbI8, Prague, 1955. We present these examples to show that the foreign trade enterprises together vith Metrena mast often demand considerable adaptability and underatand.ing of to producing enterprises vith respect to packaging requirettnts. Cooperation can often lead to very positive results , For exaa 1e this type of cooperation among production workers and foreign-trade transportation spe- cialista has led to a vary successful solution of the problem of shipping automobiles to South America . When cars and trucks were shipped together the passenger chassis were mounted on the truck chassis without increasing the voluaae used to calculate shipping fees . This saved 1,000 crowns on each pauenger basis shipped, thus increasing the foreign-exchan?e yield of the transaction. The production plants sometimes coa~lain that the foreiga- trade enterprises often do not issue dispatching orders in tine aid the goads produced theji wait too long in the plant end teke up too rich storage space. In alau~tz'ous cases, hot , the delay is jus- 17]. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 tified, since the enterprise u t aee to it th it it uses the crust erivantageous trensportation facilities, which sometin es mew wait- ing. The piants rnut therefore have storege space available for ouch cases. By way of example, if we celn send rolled. nu terie 1 to South America in a F1cmiah a1 ip from a polish port tie is n ch prefer able to shipping from Ramburg in a ship those fees would have to be paid ror in foreign exchange which is difficult for us to ems, It amt also be kept in mind that the journey through Poland IS much more advantageous for ua than shipping tbraugh Hamburg. If in choosing shipping routes ire therefore Strive for efficiency we mint so times po$tpone shipping goods fora while. It is of course desirable for the production enterprises to notify the for eign-trade enterprise in tine that the goode are ready for ahip- rtieut, so that the foreign-trade enterprise can provide ship space. If goads come out of the production plants at Irregular my tervals and unannounced this rn8see provisi wia for shipping ciuite difficult on the other hand production enterprises which announce he shipment of goode in time and prepare than for ocean shipment make it poi ible for Cechofracbt to proceed to rent space and to make use of seasons when rates are mast advantageous mhia furthern re makes it possible to amke better use of ports in the people's deni- ocraaies, particularly on the Black Sea, because iwhen it is cer~ taro that the goots viii be delivered on tiles Ceahofraoht hae bet ter ohage$ of making up abipmeZate in thoee ports. It is elso poe- sible to rue foretgart exeben a by ueir* trs ship. inst.sd of liners, sing men deliverie6 ire a on time it is possible to eke up ers1 imsil shims to be seat by tramp ship ratha~r than Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 weir more expeive liners to ad individual shipmenta, (A liner is a ship plying regular lines acyox1ng to fixed, achedules. A tra s~aip is one whose d.Irectaon and rates are feed by special contract for each voyage.) if shipments fro>a the Tctories are iste, the goods cannot be loaded on a riaritiwe ship in tiYae at the port, snd the shipment is delayed and roust wait until the alert ship leaves . =yert ship pine connections are few poi e day's delay 'may result a 12 a t nth s delay, with all the unpleasant consequences this Ieada to Sevin pcsl,ble zn Also We havo sttempted to give a brief survey of the main reas M ons tthy production for e.port is not crowned with still greater success L in conclusion it should be noted that probl,ema cif imports deserve greater attention as well. ~e wish to expend international economic cooperation, aril thus imports as cell. Therefce eny effort at autoarky is alien to us a Our economic interests require us, however, to import only necessary goods which viii help us to accelerate coaistruction, ir- prove prodlictinn, and raise our living standards We do not wish to import food unnecessarily, goods which we can produce ourw selves more efficiently. We also want imported raw materials, Dade, and products to be used economically, end therefore it is the goal of our economic policy not to be dependent on imports of key products, since we do not wish to expose ourselves to the posaabil- ity of discrimination and economic pressure, Frequently ms r of he goods vhiah ye art cold be pro- duced relatively easily in Caetlovaka. files are certain types of imported sheet iietal whose production could be errauged by CZ+ ChO*]-ovek fevtoriee . In other asses our factories mist learn to turn to life -t sources for ii rted rev arst is . In this Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 respect we exerted enaruiaue efforts 'when, because of the discrita- iaetioi we sut fered, we reoriented our imports of keys raw t4 rials prim riiy toward the Soviet Union and the people' a democra w cieeb All, of these end si ai1ar cases require close cooperation be- tween the proiuetion plants and the foreiga -trade enterprises if the opal 1s to be reached quickly. A great deel depends on the proper uti1izationn of imported raw materials . M example can be found in the textile industry, showing how our competitors have solved this problem, In E lan rew American cotton is used to spin yarn up to No -+O, long-staple Egyptian cotton for yarn. up to No 60, and Karrik cotton for higher numbers: 104, 120, and above ? Czechoslovak producers, on the other he, often use high quality low-staple cotton where other types would suffice, thus increasing the coat of the product, re Est also see to it that the waste from imparted raw u terials, such ss in cutting bides, be at a minim Frequently en enterprise working for export requests the im- portetion of some small. auxiliary rnaohine or equipment whiff will help it to fulfill its goals 01' caurne the Ministry of foreign Trade enld its agencies proceed in such cases with eyc thy. After all, the foreign-exchange expenditure will ultimately err a much greater foreign?e abange yield < It is of course regrettable when the pleat loses interest once the equipment bae arrived end does not even mn ke the neaeseery provisions for installing the i~orted machinery. 3e have encouattered isoleted c eeee of this kind recent. ly. This attitude does xx~t of aourae iedicate that nil our pro- ductton plants are properly aequ intt.d rith our iaport prob.awsl for t i$ resOoa their uierata.i of Licit aet be expanded ae rte. ss their pcssp of export prabiess. l~# Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 evelo i etit~.one for`u'illlnt of ort Orders We have discussed aectorc which we mint improve cooper- ntion between production end the foreign-trade enterprisea in the interest of better fu1f illrat of export goals . Fit cancluSions can we drew from this artnlysis? We must, above all, considerably strengthen the cafes pups in the large export plarxts j partiru18r1y in enterprises workiu; on deliveries of irweattaent units, so that they will be able to pro- vide bids anti bases for operational designs in time, to control export deliveries ae they are produced ark assembled, to devote their time to compiling advertising material and tenhnical and com- mercial documentation, to provide for excellent packaging srd skxip- pingg of goods, and to cooperate with the foreign-trstie enterprises in foxlowing technical development throughout the world end, on the bases of the Information geined, apply the nst progressive technology in their plants. We must end the incorrect failure to appreciate the iwportance of the sales groups in export enterrrpri- see; on the contrary we must recruit for them the east higly skilled cedres with proper technical and currciai knowledge. At the acme time we shall rake batter use of the experience of engin- eers, technlciane, ieeigners, and reaeerch workers, both in prepar- ing commercial, negotiations and in the fulfillment of export deliver- lea. Socialist competition for exemplary fulfillu nt of export orders is very important for itaproving waxk in foreign tree to and the liaieon between foreign-trade enterprisee en production. This competition wee began in 1955, on the initiative of the Ministry of Foreign Vie, ba ed in turn on a goverreeeat resolution of 28 June 1955. Fiction plants I Bich eeintsin the preser b ed qusl- ity, b5Ve no Ante frog f ist cueto r, i-nteim the deUv' -175- Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 ery times specified is delivery orders, provide service to foreiz customers, have proper ce&res of assembly an4 teahniesl workers, and maintairn good liaison with the foreign.trade enterprises re- a~,va iu t _ .1 % s~iwDL u i t ixutL FOUL W uODUZ y t'et og-[Ut Lou. Dy rewarded accord ing to the principles applicable to the isausnce of the Rat nr, and they can set4 some of their technical ape- cialiats woad for study trips, with he travel eosts in part e- iri? paid out of a special portion of the bonus which the plant ob- tains for the exemplary fuU"111n nt of effort teaks. In 1955 about 320 enterprises in all fields were i riciudet in the competition for exemplary export plants end several dozen of them were given incentive rewards in ac.ition to honorary rec- ognition for fu1fil1ing the coalitions of the competition. it is the job of the factory organizations of the K$C and of all mass organizations, perticularly she ROIL and the CSM, in the pleats working for export, to use all their facilities to de. velop and aupport this type of competition. There are many re- sources which can help in reaches this goal. Thus the collective contract should, in its first chapter, tike a precise statement of the pledge to aaintain delivery dead- lines, ar4 further pledges should be given eliminating all ccxa- pleinta by providipg for maximum quaUty of export goods. We must ayatematicelly follow aril control the fulfillment of working gosh aanociated with export orders. We carrot wait for results; we rat in advance be sure that the baaic conditions exist for timely fulti1Im nt. We at examine the caws of day and or*e their elimination. Coapleints Pram ebzroed a t be u3d to drew the noaeasary 3aon so that the errors will not be repest.d in the future. Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 :CIA-RDP81-01043R000500200001-9 .other n tbod of aseuring the cc Leti on of e~cport o s i8 the o gani tion of d,iscusrioni- on the sig fi. a ice of 'ores tre4e, connected also with prab:# of the international po1itic?1 situation. It i6 precise in foreign trade that the princip1e8 of cooperotion of the aloeia1ist con and the peaeefu]. coexistence of all 18nds are carried out in practice Anything lwhich promotes the introduction of progressive te: bno1oy helps our exports also heref c; in tee of foreign trade it is supremely important Zr othe part; and trsde~uuioa orw anization in the production pmts to extend innovators and inven- tors the essary support, for sufficient attention to be direc- ted toward improvement suggestions, to arouse the initiative of the workers, increase epecialied training, end make it posgiale to exct&ane Czechoslovak working observations and Soviet experience The effort to improve Cwechoalovak foreign trade must be led by Commlanieta, trade-union meabers, and Jnion members in all sec- tors of the national economy. Thie means still cxre emphatically to explain to our workers the importance of regler fulfillment of the plan for production of export goods, aad to uge special exam plea to point out the opportunities of achieving high proth ct qua l- ity . The iniortant thing i.e for the party organizations in the production plents properly to exerciee their right to control the management, and to encourage the reeponaible factory worker and the Co & niats in the R?H ad cc tteee to organize sociai.iat cocnpetition end exe~plarygwelity brigedCB for the honor of the factory trade-mezt Experience eonvtaaee ue that despite e1.1 he recent iucceae OP Cs+ lovak axports ve are tar fon heving ntLISaed all the opportinittee evsilable for costinutug is our good tradition east M 1fl Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 increaaing ealee of Czechoelov ak goody on foreign markets . Therew fore we t > biize all the workers to increase their efforts towerd better u1 il1ntent of export gc 1a, wbici are conataat),y on the rise. If we f`u1fi1i these goels the resulta of our co con work for the exemplary fulfillment of export deliveries W i.11 be reflected in a better a richer life for our workers 118 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 TAB OF CONW1S Introductiou 1 CHJ\PT T. SIC FEATU F OF czE R'J1C FEIGN TRADE Lhe t Is the F ova eign'- r&1er Monopoly? 5 Contemporary Coals of Czechoslov Foreign Trade 9 Foreign Trade A Tool of Peacea'u1 Collaboration with the Entire World 18 C& P; r II. FDB t IGN TRADI i PRE-MU1ICH CZECHOSLOVAKIA The Prewar ;keMUp of Exports 25 The Prewar Make-Up oiR iuortz 26 Developtm t of Czechoslovak Porei i a > ode before the Secondrld War 26 Capitalist Trade -.. A Tool in the Race for Profits 29 The Role of Cartels 32 C&\PTI1 III. M/\,CRINE LDING w,. Th CORN TONE OF OUR FOREIGN TRADE 36 cpendin; the Scope of Machinebuilding Production 36 The Q alitative Reconstruction o?' Machinebuilding 38 Technical, Progress Mhieved. in Machi:iebuildin 140 Technical. Aid frcn the Soviet Union 42 The Prospect for Further Development MEtchinery - vo Percent of Czechoslovak Exports ? Exportation of Investment Unite 50 HAPTE r!!. ?-EE ~rh[ 4~1SUCC8 E IOSWVAX A4AC " 'aJIw AND MIALWBGICAL IN IE ezecbool,Avakia 3U1148 ?actoriesi thZOIOUt he World In the price of ectriticetion Other export Succees of leevy ChLt*building 60 M9nery for Venous iabea of Ir u*try 63 AMotig the Greetet Exporte$ cif' amine Tools 65 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 We Also Lead in Dieaei Einea and Pumps Re, SuCOG$B in the Export of Vehicles 13xport Achieveunts in Electrode Rai Precision Meci rLi s O t1c~ Also iac,r t I uen6 67 69 75 The Rxport or Metallurgical Products 80 CRAFT A 4LW FOUNDATION FOR L' 0WL'S OF LIt T- mDURTRY PRODUC 83 Nev Jobs and Prospects for Epos of Light-Iz4uatry Prodhctc 87 CRA1R Vt QTR OF PRODUCTS OF LIGHT Inc 'RY, CBEt4IS- , AND TH1; FOOD INDiETRY 9 Czech blase Unequaled 9tI Czechoslovak Ceramics Widely Known 96 Czeclxoslovek Textiles Also Re ?xd 98 Shoes ar4 Glovea Various marts from the wood Inthtry Prsgoevrt s exporter of Small ousurnar Gaoda 102 102 106 Participation of Local Iuduetry and cooperatives in Czechoslovak Rxports 109 MiU3oris of Czechoalovak Bcoks and Phonograph Records Go Abroad 115 Export Success in the Chemical industry 117 Sugar, Malt, Bops 118 Other Foos and Beverages 119 cHAPT12 VII, %HE FORTS MUST I ~ 125 More Underatendiog oi' Report Reguirta 130 The Fouation of Export Success 132 The ImDor~ence of Timelr bids 133 'the 1iaportanee of Prue 135 Delivery DeMii 13$ b Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9 A Word abet Asaembly Greater Attention to Product uality 1)i8 The In ortance of Progressive Techniquea Exports to the topics Spate Parts l5 l 160 Jotning Production to Foreign Advertisi i Pec ng .>.U 4n :ortint Factor 163 Reducirig $hippiug Cats 169 $avit Are Passible in l~porta Also Developing Co r. titions for Exempla Pul il1ment of 173 Export Orders 175 Sanitized Copy Approved for Release 2010/07/14 : CIA-RDP81-01043R000500200001-9