THE DEVELOPMENT OF THE POLISH CHEMICAL INDUSTRY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00039R000200100006-3
• Release Decision: RIPPUB
• Original Classification: R
• Document Page Count: 29
• Document Creation Date: December 22, 2016
• Document Release Date: May 8, 2012
• Sequence Number: 6
• Publication Date: July 23, 1952
• Content Type: REPORT

Declassified in Part - Sanitized Copy Approved for Release 2012/05/08: CIA-RDP82-00039R000200100006-3
Declassified in Part - Sanitized Copy Approved for Release 2012/05/08: CIA-RDP82-00039R000200100006-3
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crude coal pitch
crude benzol
synthetic organic
zinc white,
synthetic fibers
To evaluate properly the significance
they must be compared with world production figures;
sulfuric acid
superphosphates
caustic soda
nitrogen compounds
benzol
synthetic organic dyes
synthetic fibers
above
not play an important role in world Production
4,06j,
Declassified in Part - Sanitized Copy Approved for Release 2012/05/08: CIA-RDP82-00039R000200100006-3
....... ....
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short-term bank credits
induStrial credits
commercial credits
Portion of capital belonging
to
Polish enterprises
credits for foreign enterPrises
operating in Poland
long-term credits
The above figures point up the typical part played by short-
term credits which amounted to about 40 percent of the total
This constituted a very high percentage, which was
best national interests, since such credits could be withdrawn
with very short notice at the least appropriate moment.
It must be pointed out that
of foreign participation which
sharing in profits,
The chem.
fertile field for
less tan-
gible and more concealed forms
strictly speaking, amounted to
is a particularly
cal industry
which may include payments for technical assistance, for Produo-
and patents, and for acien-
are payments for intangibles,
tion methods for foreign
tific oreconomic research.
the value of which depends on the arbitrary estimate of those
number of shares.
stockholders who control the
This accounts for the relativelY law net profits
Declassified in Part - Sanitized Copy Approved for Release 2012/05/08: CIA-RDP82-00039R000200100006-3
Declassified in Part - Sanitized Copy Approved for Release 2012/05/08: CIA-RDP82-00039R000200100006-3
The Belgian concern had a policY of opposing Polish ex-
ports of soda to nearby foreign markets which were
reserved
for other Solvay enterprises. Hence there was no soda export
during the prewar
come one of the rr
In the
As is well known,
in export articles of the chemical
in-
ewar period, production inst.11ati0nS
corres-
the demands or the Polish market, and were not
expanded beyond these requirements There were no net profits
until 1934, after which there was a slight excess of assets over
According to the data published by engineer B. Barwinski
Przenlysl Chemicuy No forward)amortization
on installations constituted 22 percent of the computed
production cot s f soda in the Solvay Enterprises in Poland.
The 1939 sales price of soda was maintained above 207 zlotys Per
while operating costs, including all depreciation (nakladowe
were 61 zlotys Per ton the basis onof Barwinski's data.
It
.may be inferred that with the modest net profits shown, the large
difference between operating costs and selling price was absor-
bed in amortization high payments to the Belgian concern
for
various technologicalor economic services,
credit costs and sim-
ilar expenses as well as in excessive marketing
and general ex-
Pensess For instance,the balance sheet for December 31, 1934
presents the following additional
debitS, in'and above the 14.4
million zlotys of operating costs:
Declassified in Part - Sanitized Copy Approved for Release 2012/05/08: CIA-RDP82-00039R000200100006-3
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oral dozen small or medium-sized pharmaceutical chemical Plants
which operated on Polish capital.
The enterprises with exclusively foregn capital were
as foUoW$
The Pabianicka Enterprise of the Chemical Industry (joint-
the section on dyes. It had a capi-
stock concern), discuSSed in
tal of 4 million zlotys owned entirely by Swiss Investors.
The joint-stock enterprise Roche, with a capital of 2
million zlotys awned by Swiss investors.
enterPri Dr. A. Wander, with a capital
awned by Swiss investors.
of 2 million
The policy of the foreign firms, as in the case of the
dye industry to import highly refined inter ;)iate products
or evenfinished products but in the form of chemicals
rather
their
than medications. This meant that they were imported under
in mass lots, and were then converted into pharma-
chemical names
ceutical products with fancy names through mixing, diluting dothem -
appropriately and giving them registered
tical compounds
phosphorus compounds, Protein- ilver
barbiturates salicylates gold compounds, vita mins hormones,
the war the following important
entirely manufactured In Poland: inosite
-
compounds (bialkowo orebrowe
11,11k t ?
? Oil
Declassif ed in Part - Sanitized Copy Approved for Release 2012/05/08 CIA-RDP82-00039R000200100006-3
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mentioned
hat Swedish capital also bought up the joint-stock
Radocha which produced potassium
e manufacture of matches This enterprise, with its
68 million zlotys, was merged with the enterprise
organized for the exploitation of the State Match Monopoly.
There Were no other direct relttions .between the gov
ment's foreign credits and state-owned chemical industries,
The above review shows that foreign capital played a
domi-
nant or very important role in the folYing branches of chemical
industry: soda, sulfuric acid coal derivatives, intermediate or-
ganic products and dyes, pharmaceutical products, fats, artifi-
cial fibers, and matches.
On the other hand, domestic capital had a decisive influ-
ence
in the following branches of production: artificial ferti-
lizers (particularly nitrogen and potassium fertilizers)
cessing of wood, bone-glue industry, paints and lacquers,
cosine-
and miscellaneous small chemical industries.
The key positions in the chemical industry were almost ex-
clusively in the hands of foreign capital or under it dominant
influence. This circumstance, as well as the general condition
of the prewar Polish capitalistic system resulted in a definite
linderdeveloPment'of the chemical industry. The industry
was cha-
Declassified in Part - Sanitized Copy Approved for Release 2012/05/08 : CIA-RDP82-00039R000200100006-3