THE STATUS OF THE VACUUM OIL COMPANY OF MUNICH

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R002400030008-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: November 9, 2016
• Document Release Date: December 17, 1998
• Sequence Number: 8
• Publication Date: February 17, 1949
• Content Type: REPORT

CLASSIFICF1110N 66 '/rvolli 6DL P U . mej[m A -Z oIIa25XIA2g
DATE DISTR.17 l"'ebruary 194 9
NO. OF PAGES 2
NO. OF ENCLS.
(USfED BELOW)
SUPPLEMENT TO
1. The peace treaty with Hungary, ratified by the Soviet Union in December
1948, stipulates that the Hungarian Government shall pay the Vacuum Cit
Company $5,000,000.00 for damages to property and losses, et cetera,
sustained by that Awbrican company during the last war. In the same
document it is also provided for that all foreign-owned concerns ahal.l be
guaranteed equal privileges and equal protection from the Hungarian Govern-
ment in accordance with the most-favored.-nation principle. The Hungarian
Government has., however, disregarded both treaty pr wisons and has initiated
repressive measures which will drive the only western-owned refineries in
Hungary, the Vacuum and Shell Oil Companies, into issuing declarations of
bankruptcy,
2. Thee repressive measures implemented against the Vacuum Oil Company of
Hungary since the beginning of November 19148 have included the followings
a. The imposition of a 33,000,000 pengo excess profits kaac, which the
company is unable to pay.
b. The seizure of the company's office furniture in Budapest on the
basis of the company's tax payment default.
c. The reduction of the monthly allotment of oil for refinement at the
Vacuum Oil Company to a point of submarginal productivity: the month's
output for the month of December 1948 was, for instance, only 60 tank
cars (capacity 15 tons) for which AFCRT, the official government pur-
chasing agency, was billed 5,600,000 pengo by the Vacuum Oil Companya
d. The disbursing by AFC11T of only a fraction of monies due the Vacuum QU
Company of Hungary for goods delivered: as of 14 January 1949, only
1,700,000 pengo of the 5,600,000 amount due for December's production
had been paid.
a. The issuance of the edict in November 1918 by the Ministry of Industry
COUNTRY
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INFORMA 'B I
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Hungary
The Status of the Vacuum bit Company
of Munich
25X1A6a
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Next Review Date: 2008
canceling forty of the company's 700 workers from the payroll. A similar
edict was issued in early January requiring the company to delete from
sixty to seventy additional employees from the payroll during January
and February 191i9
i 44RNIN ' 'JOTIC E: THIS DISTRIBUTION LISTING MUST
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Class. C
Date: 1 5 A
 /CONTROLS-{ 'kefGIALS ONLY
25X1A2g
According to the source, the Vacuum Oil Company of Hungary cannot remain
solvent beyond 1 April 1949.
Approved For Release 1999/09/09 : CIA-RDP82-00457R002400030008-80,
4. Excess profits taxes levied on other forei owned oil companies in
November were the followings
a? WORT m 130,000,000 pengo
Shell Oil Company .. 33,0009000 pengo
SECT/CONTROL - U.S. OFFICIALS ONLY
Approved For Release 1999/09/09 : CIA-RDP82-00457R002400030008-8