THE STATUS OF THE VACUUM OIL COMPANY OF MUNICH

Document Type: 
Collection: 
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
Case Number: 
Publication Date: 
February 17, 1949
Content Type: 
REPORT
File: 
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PDF icon CIA-RDP82-00457R002400030008-8.pdf129.2 KB
Body: 
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 :.SUBJECT PLACE ACQUIRED DATE OF IN . . .1 7 sTA-r csAVY HI i1I NSRB KLEASE IBc~+UBLIC L ARMY qiR F81 N pwft.- Y rogr&i d to F'obor 1-873 from the Irite31;3etlce to the Approved For Relea~t9( EL t#WO02400CQRPWf NO. FID) INFORMA 'B I OR` CD NO. Hungary The Status of the Vacuum bit Company of Munich 25X1A6a '-r v d I sCe?i 999/09 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 )N SH "CONTROL - U S 0 CHANGE i DECLA< 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