PRACTICES OF THE MINISTRY OF ENGINEERING CONCERNING DELIVERY PERIODS FOR MACHINES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00046R000500200001-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: June 5, 2013
• Sequence Number: 1
• Publication Date: August 10, 1955
• Content Type: REPORT

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Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/06/05: CIA-RDP82-00046R000500200001-3
INFORMATION REPORT INFORMATION REPORI
CENTRAL INTELLIGENCE AGENCY
This material contains information affecting the National Defense of the United States within the meaning of the Espionage Laws, Title
18, U.S.C. Secs. 793 and 794, the transmission or revelation of which in any manner to an unauthorized person is prohibited by law.
COUNTRY Czechoslovakia REPORT
SUBJECT Ptactices of the Ministry DATE DISTR.
50X1 of Engineering concerning
10 August 1955
Delivery periods for Machines
NO. OF PAGES 3
DATE OF INFO.
REQUIREMENT NO. RD
PLACE ACQUIRED
REFERENCES
DATE ACQUIRED
SOURCE EVALUATIONS ARE DEFINITIVE. APPRAISAL OF CONTENT IS TENTATIVE.
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LIBRARY SUBJECT AND OD CODES (.10)
3502-0406
8-ii
8/55
274
PAH #X I ARMY I #X
NAVY I AIR Pli 1 I AIC
(Notoi WoshIngton distribution indicated by "X"I Mold distribution by "*",)
HIURMA I UN RI PURI INIURMAI I()1\1 RI1)()RI
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Declassified in Part- Sanitized Copy Approved for Release @50-Yr2013/06/05:CIA-RDP82-00046R000500200001-3
bUX1
CONFIDENTIAL
COUNTRY Czechoslovakia
SUMO' Practices of the Ministry of Engineering'
concerning Delivery Periods for Machines
DATE OF INFORMATION
PLACE ACQUIRED
THIS IS UNEVALUATED INFOkMATION
DATE DISTR. la July 1955
NO. OF PAGES 2 50X1
REFERENCES:
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1. In 1952, the Ministry of Engineering , issued directives under the .
common heading "Technological Discipline" to which all enterprises subordinate
to the ministry were expected to comply. Some of the directives set up maxi-
mum delivery periods for various types of Machines. These delivery periods
were not to be weeded as long as the machine was of a standard design, i.e.,
ai long as it conformed to the description given in the catalog.. According to
other directivesjUs plant's manager had to sign each individual set of blue-
prints. In cases of important machinery the sets of blueprints had to be signed
by the minister. This was true, for instance, in the case of MEE Vsetin's main
DC generators and motors, type MR 8092*10, which were built for river passenger
ships ordered by the USSR.1 It appeared that the ultimate goal of these
directives was to prevent the designer, from making subsequent modifications
in the design -- modifications which in turn might cause a delay in production.
2. A practice was initiated in 1952 which indicated that in oases of important
deliveries, so-called "economic agreements" were concluded between the supplier
and the customer and/or between the supplier and his various sub-suppliers.
In the event of non-fulfillment of deliveries, the dispute was submitted to a
permanent arbitration board established at the Ministry oC Ehgineering.
The party found guilty had to pay penalties. In oases where the parties could
not agree on the terms of the delivery, with the result that no economic agree-
ment could be concluded, either party might call upon the assistance of the
permanent arbitration board. The board decided the terms of delivery and stipu.
lated the "economic agreement" which then bound both parties concerned. In
these oases the "economic agreement", of course, lost the character of a true
agreement since it lacked the mutual free consent of the two parties. The usual,
practice was that a customer called on the arbitration board because be wanted
the goods to be delivered in a shorter period of time than that offered him by,
the supplier. As a matter of fact, the customer was usually beaked by the
ministry because the ministry preferred, in general, short delivery periods
and/or had an interest in that particular delivery. Consequently, the arbi-
tration board stipulated an "economic agreement" in favor of the customer.
As a result, the supplier often had to agree to a delivery period which he
realised in advance was impossible for him to meet. It was obvious that the
ministry used the "economic agreement" as a means of ordering an enterprise
to accept a particular order and to fulfill it under such terms as desired by
...Q.9NLIMENIZAL
WM,
,
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/06/05: CIA-RDP82-00046R000500200001-3
Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/06/05: CIA-RDP82-00046R000500200001-3
CONFIDENTIAL
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the ministry. During 1953 NM Vsetin had several arbitrations in one week.
In addition to the "economic agreements" the ministry used Party channels,
the so-called "procedure along the Party line", to impose its desires in cases
of particular deliveries. Source believed there were no direct official
channels for accomplishing this purpose as of late summer 1954.
3. The Ministry of Engineering issued a circular in 1953 which stated
that deliveries to the Western countries were to receive priority over
deliveries to the USSR and so-called "state deliveries", i.e., deliveries
which, source believed, were important for the defense potential of the
state. Source stated that in spite of the instructions given in the circular,
Czechoslovakia could not compete with Western firms in the field of strong--
current machinery and large apparatus because Czechoslovak delivery periods
were too long. The only possible exception might be small induction motors
of standard design. These were produced on conveyor belts by the MEZ plant
in Mohelnice (N 4947, E 16-55).
CONFIDENT IAL
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Declassified in Part - Sanitized Copy Approved for Release @ 50-Yr 2013/06/05: CIA-RDP82-00046R000500200001-3