DEGOS TRADING COMPANY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R000900030001-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 14, 2016
• Document Release Date: December 4, 2000
• Sequence Number: 1
• Publication Date: September 12, 1947
• Content Type: IR

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CENTRAL INTELLIGENCE GROUP
INTELLIGENCE REPORT
COUNTRY `'Austria
SUBJECT D6998 lfaditrg CONpar
25X1Cj
ORIGIN
SOURCE
25X1X
Gellera:1
DATE 25X1 C
25X1A
INFO.
DDIS . 2 September 1947
PAGES 3
SUPPLEMENT
1 mod O.m. b.H., Wi pplirewstrasse It View I, ws founded in SR Comber 1946 with
z. capital of 20,000 sc ai llings supplied on a 50-50 basis bys
Dr. Stani alaus Dubi k r a Polish Jeri Who had worked with ti: Soviets in
Poland and as an meteor in Vienna prior to sett.ng up his
own business.
gon Sabisohkab an Austrian businessmn and member of than caummist
Party of Austria.
Degos is authc sed to trade in all industrial commodities but ,,,s specialized
textiles?
Financial S tatue
2. Since its establishme tt in September 1946, Degas has expanded : capital to
600,000 schi llix s from its profits
Dubik and Schischka new have 500,000 echillI.nga cash an hand fc: bue3.nesa
transactions and an invento of textile goods valued at two r 'lion
rchilhings. As Degos plans to sell these goods at the export x the
owners expect to receive fran six to eight million schiilings c; the sale.
(T export rate alit goods to be sold for 100% - above he domestic
prise.)
4, Degos has about fifteen employees, -who do only routine work. business
=Leatisacticon and decisions are made by the onmers themselvese it is reported
that both are careful not to permit their enplosee; to have as r relations
.z,-th the Levi ets or the too >m.st Fatty, so teat nothing -,-,III k riomn about
t3hp-l' business o bs- than i t they Offici clay reports
VOQument No.
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Prior history
Dubfk bees Weal acquainted with Soviet officers in 1945 through his services
as an intcrarcter and through occasional barter- transactions. At this tine,
he realized that setting up a private firm for such trmmotions would be
vxtrone3,y profitablo. lb and Schischka decided to establish a warehouse,
x,hieh the latter- set up under Austrian lair as .7aronhaus Schisehl:a,
Favoritonstrasse, Viflma X. Through his connections Frith Soviet o''ficials,
;.)rubik procured the right for .1arenhaus SchischIm to sell its goods at export
prices. i-hder this crrsngement the enterprise made huge profits. In selling
for mmaor h, moreover, the firm was subject to less stringent ' controls under
.iustrian 3arr and could, in effect, sell its goods unrationed. t presenting
gifts to Soviet officers, Dubik soon built up a good clientele.
Official 11olations r,-ith USIVA
6. Became they had difficulty in obtaining textiles and other materials, Dubik
and achischlca set up the Dogos firm to handle the procurement for 7arenhaus
Sehischka, _irai n through his connections, _hubik nude an oral.' arTaenent )
valid for one year, with the Light Industry Division of USNA. IIn was able
to prevail on USIVA to turn over to Degos the distribution of the qucta of
artificial silk yarn from the Glanzstoffabrik St. Poolten A.G.,rhtich was
nornally allocated to the Austrian econoz r The Austrian Government was
forced to accept this and to license Delos.
7. In October 1946, the Austrian Government and USMA reached an agreement whereby
50N of the monthly production of Glanzctoffabrik St. Poelton was to be re-
leased to the lustria7n oconorV. The C,overncnt then issued ra?q:.on coupons
to the a strian firms Which needed the goods. It was required that the'
coupons be presented to ,:)egos in order to receive delivery of the goods.
ilnis} Degos bocane the official distributor of artificial silk for L IVA and.
came to be recognized as a contractor for USIVA in the industrial field.
C. Since the creation * of T)o~,oc, the ::t trian economy has receivers fron the
Glanzstoffabrik St. Poelten irregular allotments of rayon yarn totalling a
little over 200 tons. The average monthly production of the factory during the
ten-nonth? period was -100 tons o Had 50 of the production been delivered
reguiarly:, as agreed, the Austrian econor y would have received through
Togas 500 tons instead of 200-odd.
9. Dtrirg this same period, 180 tons of rayon yarn was sent to the Soviet-controlled
liens Janisch Sei.deruieberel factory in I'citterefeld, Lower Austria, Finished
texi.le goods produced by +Ks factory from September 1946 to July 1947 amounted
to about :1,000 tons. This was disposed of as follocrs:
a. A small share was used to cover Soviet needs in Austria,
be About 150 tone Weare exchanged with other lx* in A.lasim .-i for
various other finished products.
c.
A still larger amount was uses or barter transaetio s with
Czechoslovakia and I .u;ary.
d.
About 500 tons of finished rayon products were utiip
Yuzhtrans down the Da ube to the USSR.
1 by
10. In ac'ditiam to its official distribution functions, the firm engages in
occasional barter transactions in which Degoo receives finches products
f'rc m Austrian textile mills in e..change for artificial silk ant textile
yarn. Degos then barters those finished products tr1th the Ilea VA Light
industry Division for more raw nuts rial,s than Der os originally gave to the
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Austrian processing firm. These transactions have reaehed a value of
appro W ately trio ndllion schil- in since Septcrsber 1946. The increased
supp],y of rarr matori als is used for further barter or ride up into finished
goods for ura ationod sale by wurertiau' Schisch a. This type of transaction
has been high y profitable for Jegos.
Iascellaneous Transactior~
31. Although generally restricting itself to the textile business, 'egos trades in
other goods then profitable offers are received. For example' over a period
of five nanths,Degos sold at a profit 30,000 razor blades per rionth. The
blados were obtained from USIVA.
Relationship with Soviet Lixli.taty Dank
12, Deg*os attempted to open an account tith the Soviet Military Dar~1