JPRS ID: 8657 EAST EUROPE REPORT POLITICAL, SOCIOLOGICAL AND MILITARY AFFAIRS

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i3 SEPTEMBER i979 CFOUO 6179) i OF i
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I~(llt U1~I~IC'1~~1, lltil; UNI,1'
JPRS L/8667
13 September 1979
East Euro e Re ort
~ p
POLITICAL, SOCIOLOGICAL AND MILITARY AFFAIRS
CFOUO 6/79)
~BIS FOREIGN BROADCAST INFORMATION SERVICE
FoR oFFtc~at, usF: o~t.v
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~PRS I~/8657
13 Sep~emY~er 1979
EAST EUROPE REPORT
~
POI.ITICAL, SOCIOLOGICAL AND MILI7ARY AFFAIRS
(FOUO 6/79)
CON1'ENTS PAGE
Cz~CttO5LOVAKIA -
Chnoupek on CS5It Cconomic Relations With Foreign Countries
(Eohuslav Chnoupek; MIROVAYA ~KONOMIKA I
MEZHDUNARODNYY~ OTNOSH~NIYA, ~tny 79) 1 ,
- a - [III - EE - 63 FOUOJ
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I~dlt Ul~i'CC1AL USI: (~N1.~Y
CZ~CHOSLOVAKZA ~
- CHNOUPEK ON CSSR ECONOMIC R~LATIONS WITH FOR~IGN COUNTRIES
Moacnw h1IItOVAYA EKONONIKA I MEZHDUNARODNYYE OTNOSNENIYA in Ruseian No 5,
rtay 79 p~ 45-54
(Article by Tio~uslav Chnoupek, member of the Central Conanittee of the Commun-
~ ist FarCy o� Czechoslovakia~ minister of foiei~ affairs of CSSR: "Forei~ti;
J Economic Rel,ations of Czectioslovakia"]
I
[Text] I. The outlook of peace and progress is indissolubly connected to the
rpalization of the principle of peaceful ccexistence in relations between
socialist and capital statea and to increased international cooperation and
acti~~e partnership. Problems of cooperation in trade~ industry, science ~id
technology, protecti~n of the environment and in other economic fields under
conditions of a deepening international dialog constitute an important part
of the political strategy of the socialist countriea.
The Helsinki Conference on 5ecurity and Cooperation in Europe created favor-
able conditions for the development of intern ational ties in all spheres of
human activity. It ia namely due to the conference that positive chanRes
are occurring on the European continent. New possibilities have arisen for
the development of mutually beneficial economic and scientific-technical
ties bztween Furopean statea. Certain practical steps were taken for the
realization cf these poasibilities. On the other hand, it became clear that
a stable peace in Europe was not merely a purely political problem and that
it could not be ensured solely by political means.
Present-day international relations develop under conditions of acute ideo-
logical atruggle, which also leaves an imprint on economtc relations. But
tt~e implementation of tt~e results of the Helsinki Conference shows that ideo-
logical differences are not an insurmountable barrier to intensive mutually
beneficial relations between socialist and capitalist states. The example of
Europe is particularly characteriatic in this regard.
As pointed out in the Declaration of the Participating States of the Warsaw
Pact (November 1978)~ new possibilities have appeared for mutually beneficial
economic end scientific-technical cooperatian between European states, "espe-
cially in the field of industrial cooperation, and certain practical steps
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w~re d~si~naCed for Che realization of CheQa ~:oReibilities. Preparntione are
going on for the convoc~tion of a gene.r.$1 ~urop~~an congrese �or the protection
of ttte environment~ and certain forums have undertaken the examination of the
question of holding a~imilar meeCings for coopergtion in the field of trana-
port, energy and in a number of other fields.
The countries of the socialiat community~ the chief force in the procesa of
the peaceful Cranaformation of international relations, pYOCeed on the b aeis
that mutually beneficial economic relations in Europe poasess real precondi-
tions. They etem from the historical and culCural proximity of the peoples
of the continent, differences in availability of naturel reaources to coun-
tries, their eca^o:uic and scientific-technical attainments and the specific
character of relations among ~uropean atates.
Despite these differences~ ~uropean statea have many common feaCures. As a
rule, these are countries with a modern production etructure and d~veZoped
induatry~ transport and communacaCions system. All this ob~ectively crentes
Eavorable poasibilities for the specialization of each country and expanaion
of cooperation in different spherea of productian~ acience and technology.
Most European countries are characterized by the orienta~ion of the national
economy taward export and considerable dependence on foreign macketa. Euro-
pean trade is distinguished by great traditions and rich experience. Real
possibilities exist in Europe for ma~or internaCional diviaion of labor also
in such spheres as acientific reaearch and development~ effective unification
of scientific-technical potentials of different countries and mutual supple-
mentation of industrial structure and sources of raw maCerials.
II
What are the place and role of the CSSR in the complex economic relations of
~urope? The need of international ties for Czechoslovakia has historical
roots. Created as the result of the breakup of the Austro-Hungarian monarchy,
the country inherited 21 percent of the territory, 25 percent of the popula-
tion and roughly 80 ~ercent of the induetrial potential of Austro-Hungary.
The country had at ita disposal a 8O�dualifiedreadr a~respecially ineth~e base
(brown and anthracite coal) and al q
textile and machine-building sectors.
But the domestic market was inadequate for many sectors, and a pressing need
existed for the development of foreign markets. After 1918, in bour~eois
Cze~.~ioalovakia heavy industry began to develop, new sectors aame into beinR--
aviation, radio equipment, weak-current electricl equipment, different sec-
tors of the defense induatry.
The betrayal by the national bourgeoisie, the Munich agreement of 1938 and
the subsequent occupation of the country by Hitlerite Germany produced a
heavy blow to the Czechos lovak econonry. Induatry was oriented one-sidedly
toward military needs. The fascist3 mercilesaly exploited the country's
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N'qK OI~'I~'ICIAL USI: pNLY
rsw-maCerial bsee~ espacially coal and timb~r. By the end of the war~ the
CYansport netwark had decliaad ~nd induatrial production had sharply bean
reduced. 'II~e people's daweocratic regime~ establieh~d follaring the libera-
Cion of Csechoslovakia bq the SovieC Army~ fou~ad the ccwntry in a noat
daplorable econonic candition.
Nationalization of the saane af production~ liquidatioa of private bourgeois
awnarehip created coaditiona for the rapid davelopnent of eocialist planned
production and the parerful gra+th of Che iniCiative Of NO2'ICEId.l
For auch a relatively snall country ae Czechoslovakia~ foreign econonic tiee
caastitut~e an urgant nnad. They provide it with dne po~sibility of making
rational usa of its potential. Succeasful snd active foreign trade for
Czechoslovakia--a covatry with a relatively developed and divereified indus-
try but !+ith a poor r~+-natarial baac--ie an abeolute neceaeity. Facta
graphically coatir~ that foreign ecanoadc tiea received their greataet devel-
opment under canditions of aocialias. A particularly dynamic gra+th in for-
eign trade took place af ter 1970, folla+ing avercosing of the serioue crieie
that wae brought an by tha actione of reprasentativea o! aatisocinlist coun-
trias. In 1975~ the indax of the ~oluae o! foreign tradn Wae 179 (1970 ~ 100) ~
Whiln in 1977, it ase alraady 224. -
Csachoolovakia has an all-rouad production potential and is included among
econo~ically developed couatriae. Ita ehare in world production has incrna+eed
from 1.3 parcent oa the eve of World War II to 1.6 percent at the preaent
timn. Induatrial production volu~ increasad 10.3-fold during 1948~-1977 and
11.1-fold co~parnd to 1937. Whereas in 1936-1938 induetrial productiaa volu~e
per capita of the population was t~rice the Morld average~ at preeent it is 5
tiaee that average. Sarious achieve~ents h~rve been attaiaed in agriculture.
Fro~ 1948 to 1977, agricultnral productiaa doubled over the prewar level With
a feWer nwber of people being eagaged in iC.~
Particularly noteaorthy are the eucceaaea of socialiat Slo~vakia, Which fot~e-
erly Was a kind of agrat�,�aa appsadaste to bour~eois I3ohemia. It is enoup~ to
say that prewar Slovakia lrggad about 40-SO year~ ecanoaicallq behind Bohemia.
Compared to 1937~ induatrial production in Slovakia had ~rewn 42-fold and the
aunber of a~o~ployeea 6-fold bq the end of 1977. Before th~ Mar, it producad
7-8 parcent of tha eatire country's industrial production, todaq--es much ae
21.5 percant. Slovakia's induatrialisation, ite tranafon~atian from a back-
vard agrarian to a developed induetrial region increaaed the econowic powar
and etrengthaned the unity of the C~echoelovak state.
For many tqpas of producta, the CSSR ie to be included among the large pro-
ducers. In brwn coal production par capita of thn populatian (6.2 tona), it
occupied in 1917 eecond placa in the vorld, in tfie production of anthracite
coal (alsoet 1.9 tcma)--in 7th placa~ in ~+roduction of cast iroa (658 kg)--
_ ir Sth plact, ateel (1 ton)--in 4th plac,e. Per-capita alecttic pouer produc-
tion ie 4~411 kilewatt-hourt. ~ce~ent-549 kg, footvear--8.5 pair.
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~
~o~ n~Frr,inL usr: orn~Y
Due to epecialization, which b~came p~Aeible prim'arily ae the reeult of
eocialiet acanoaic integrntion, Czechoelavakia produces appro~doiaC~ly L7 _
percant of the Morld export of diese,l u~d electric locomoCivas and 6 percent
of tr~e nachinery for the ~ food induetry, With thm relativn shaYe of the coun-
try in total world-trada turnover being equal to 1.1 percent. The Czecho-
slovak ehare of cormoditiea in world eaport of auchieary for the footaear~
textile +~nd fur ind~utry ~ oatalworking ~achine toole and tractors ie 3-5
percent.
One-third of the couatry'e material production in onn Waq or another rel~tee
to foreign trade. tiaYe our ecaaory finds r4~erves of eocialized labor, ne~w
fuads for iaveet~ent ia the national econo~r~ increasing ite effectiveness.
Thue it is natural that foreiga ecanoaic relatioas and their active utilisa-
tion cor under the principal teska of the �canodc policy of the Conrnmiet
Party of Csecho~lovakia.
III
Ttie developaent c~f Czecha~lrn?akia'e aconond.c relntione ia pro~oted, on the
one haad, by the cooparation of eocialiet countries within the fraaework of
economic integration md~ an the other~ by the policy of veakening of intar-
natioaal tensioa aad paawful cooperation of etatea with different eocial
systeas.
We caneidar ~utual beneficial econodc aad scientific-technical cooperatian
to be a etable ~oaterial ba~is for the rela~eation of internationa3 tension.
At the sase ti~rs~ ve attach great i~ortaace to tiea in Europr ou the baaie
of lon~-ttr~e progrue thaC ara described in the apprapriate ~:hapters of the
Coneluding Act of the H~Linki ConfereACa.
"iia live in a World that is undergoing difficult ti~e~ Ganetcal Secretarq
:of the Central Coa~ittee of the Co~mlit Party of Czechoslovakia~ CSSR
Presidant G. Hu~ak said at the 12th plenu~ of the party in Dacad~er 1978.
T9~e foraign aad intaraal conditicoi of aconoaiiC dsv~lopfent~ vhich
are bacodng lacreriagly co~pLz~ prasent bigaar de~ands cn us� Close
,aad all-romd cooparatioa vith the Sonriat Union and othsr social~st countri~�
is indispraaabls and o! caeutaatl~ gra~ing sigaificaaca !or u~."
Life again aid again confirr this truth at avery ~tap� Y1ur~fore the soet
reliable rsy of increaring Csachoslavakia'a participatioa in internatioaal
division of labor ~ad thw in the creation of conditions for the further
~tr~ngth~ning oi its prestiae throu~out the antira world Ma beliave to be
the gradual grarin8 clo~~r of our econo~r Mith the econa�b? of the frateraal
socialiat couatriea. In tha directives of the lSth Canstess of the Co~miet
_ Party of Csechoslwakia for 1976-1980, the wed ts ewphasised for greater in-
clusion of the econo~ in international divi~io~ of labor and intanaive pa~
ticipation in sociali~t acaoodc intagration~ tha hi~est fors of internr
tional divisian of labor.
Ztie baeis of our participatian in iatagratian ie the lvng-raage Co~41ex
Proaram of Socialir~e Ecanrndc Integration of CLHA Zlesbe~Statee (1971). Zhe
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i~'pR Ot~~ICTAL USC ONI~Y
raali~ation of the Complex Program hau advanced coneiderably With the heXp o�
coordinaCion of national-ecaaomic plana of Che CENA statee for 1976-1980~ the
adoption of the Coordinated Plan of Multilateral Integrational Meaeures and
also long-term multilateral end bilataral agnaa~ente on econosic and ecientific-
technical cooperation~ specialisation snd cooperation. Expaneion of produ~Cion
ties ie assieted by long-tano goal progr~ of cooperation for the period up
to 1990.
The~development of Czechoslovekia'e foreign trade with CEMA countri~e pro-
videe a eignificaat picture of the dqnesic grcwth of ecanoeic relations.
Foreign-Crade turnover with these countriee greW t~?entyfold since 1948; at
the same time~ iCs ehare in the toCal volumn of Czechoelovakia~e foreign trade
during 1970-1.977 incraeaed from 6b.2 percent to 67.5 percent. The qraath rate
of tradcl with etatee of the eocialiet co~nMmitp i~a conetently autetripping
the grarth of tha total turnover of Csechoslovek foreign tYade. In our e~e-
porte there ie a predoaina~ca of enanufacturad pcoducts, ~oetly machinery and
equipment. In importe~ a tandency is also ob~erved !or graath of tha ehare
of manufactured producta.
In recent yeare~ production cooperatian haa been beconing incrageinqly aide-
eprtad. In dacisive eectore, long-term pex~eanent tiee are being form~d,
vhich will detarmina not onlq the further gra+th of integretion but also
grawth of production efficiency for the entire eocialiat conrunity. Increee-
ing production epecializatic~si and cooperation with eocialiet countries ie
particulnrly topical in value for thn CSSR~ for it is 'bound reliably to en-
eure the stability aad dqnasie� of ite ecano~?.
'fieYa whare We uae spacialisation aad cooperation, there ie a gra+th in pro-
ductivity aad produetian efficiency. 'lt~e ~hare of specialized productioa in
Czechoslovak eapo~cts t4 C8?lA statas le increaeing; in e:porte of sachinery.
for example~ it hae reached 30 parcent. In 1978~ Czecho~lavakia had nuarerous
agreements on spacializatioa and cooperatian of productioa of verq isportant
pr.oducta of mac~ine building with CEt~IA camtriee.
On the basie of the Soviet-Csechoslovak agrsement of 197~~ a nuni~er of C:echo-
slovak antarpriaea wara included in tha ~aautacture o~ equiprnt for atodc
elactric pa+er �tation~ (high-pres~ure boilare~ special st~a~ turbinea~ et~as
con~raesors). Aa autoaatic �pindlel~~s spianin~ loo'~ de~ignad ~ointly by
Soviat and Csechaelovak enginaere aad techniciane~ i� en~oqing big succe~a on
tha vorld urket. Soviat aad Cuchoslovak deaigners have craated a nuaiber of
new types of elactric ~otors. 1t~aaka to aaraearents on sPecialization, the
Czechoelovak elactrical-equipwent plant in MogieZnice is being tra~?sformed into
a?a of the largnat planto in Europe for the productioa o! electric motors.
Specialised production of a nu~er of other iwportant producta is alao develop-
ing succassfullq. They include agricultural equipaent (tog~ether With GDI~ ~
truc3ca (xith Bulgaria) , pas~enger sotor vehicles (vith USSR and CDR) . Within
the franework of the CEltA. Cuchoslo~vakia has beco~e a specialized producxr
of othar iuQortant products as vell--trucks ~+ith a load capacity of 12 tana,
s traetcara ~ aquip~ent fr~r co~putar tachnolo~.
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Czechoslovekia ie contributiag ~u~t es inCeaaively to the realization of the
Co~lex Program in Che field of ecience and regearch. From codperatio~ in
ecientific reeearch~ it is going on ta joinC resegrch. Czechoelovakia is
pertieipating in 62 multilateral agreements azid in the opnration of 5 general
coordinaCing ceatera; ite scienei�ic ~?orkere are working in a nuaber of inter-
national acientific collectivee, laboratories and inetitutas.
On the basie of mulCilateral and bilateral talks with fraternal countries on
the realization of the Co~plex Program aad coordination of natianal-economic
plane for 1976-1980~ as aell ae long-term trade treatiea~ a solid base has
been created~ ~enting requir~~enta especially in fuel~ energy and raw materi-
ala and contributing to the further growth of international diviaion of lebor~
eepecially in the proceaaing induatrq snd ecientific-tachnical cooperatia?.
Within the fra~work of bilateral and ~ultilateral aeasurea relating to ecan-
omic cnoparation, Czechoelovakia frequently participetes in a unique form--
granting of long-term credite. They include--devRlop~ent of ~eetallurpg? and
extractioa of patrolnu~ and natural gas ia the US~R, of the coal industry in
Poland~ production aad proceseing of potassiue in the CDR~ a numfier of sectors
of industry in Hungary, plyi+ood in Romnia. Czechostovakia participated in
the conatructioa of the Druzhba pecroleum pi.peline, the creation of the Gen-
eral Park of Freight Cars, the Single Energq Sqstem of CEMA Mnmber-Countriee
aad the operation of na~ly created ecanoodc orgmiaatione. Deepite the fact
that the acale of integrational wultilateral relations of Csechoslovakia with
the othar CF.~lA countrie� ii conatantly growing, bilateral cooperatio~n carried
out ia accoYdaace With the d~s of the Corples Program also ratains ite
importance.
The Sixth Five-Year Plaa for ihe develop~nt of the couatrq'e natianal econo~q
during 1976-1980 includes a special aection on taska steeaing from participa-
tion in eocialist ecoflo~dc integration. Party and 6overament organe Aive
paramount attenticn to the fulfill~ent of these taaks. As noted at the Decea-
ber plenum of the Central Co~ittee of the Co~suniat Party of Czechoslavakia
(1978) ~ improve~ent of the quality md efficiencq of all Work creates good
prerequieitne for the fulfillment of our co~adtmante, firet of all those con-
~ nectnd with participation in the ma~n intaaratioc~al measurds.
IV
Ttte beat guarantee of the atability aad dyna'dem of Czechoslovekia's ecanoadc
developaent ie cooperation With the USSR. ilithout the participation of the
' Soviet Union~ it vould have been isposaible to solve in a ehort period the
difficult problems of postwar reconstruction of the national eco~no~ey and pro-
vieion of industry with the nacessary rs+ materials and of the population--
with needed good8. Trade with the USSR is indieeolubly bound With socialist
reorganisatian of Czechaslovak induetry and the creation ~.f a foundatian of
eocialiet society aad aocial-econoadc proonssea contributins to the fon~ation
of a new eocial order.
The treatq of fri,~nd~hip, cooperation and ~utual aid beween the USSR and the
CSSR eigaed in 1970 orgaaically atea~ed fro~ the 1943 treatq aad created
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I~OIt (11~I~1CTAi.~ 1151, UNI.~Y
prert:quisites for qualit~?tively new forn~ of relations between Che two coun-
triea. Tliis trenty became a program document of cooperaCion in a11 fields
for the long period. In the last tk~irty yeare the volume of reciprocal de-
liveries of goods I~ax grown 25-fold; in 1977 it exceeded 5 billion tranafer-
able rublcg. This ia half of the turnover wiCh all eocinlist countriea and
one-third of Czechoslovaki~~s total foreign-trade turnover. DurinQ :1976-1980
reciprocal volume of goods grew Youghly 45 percent (in comparable pricea)
com~ared to Cl~e precedi.ng five-year period and will achieve a record sum of
24 billion rubles. .
In the pnst year of 1978, Soviet-Czechoslovak economic nnd acienCific-
technical relations received exceptional attention at all levels. A notable
event wAS a visit by a Soviet party-government delegation headed by L.I.
Brezhnev. During the visit, basic ques~tiona and problems of Chis important
field of cooperati~n were discussed--a number of agreements were concluded
here ~ust in 1978. The parCies emphasiced the grawing importance of common
planning and complex forms of industrial and acientific-technical relationa,
making it possible to unite effectively efforts in the ephere of material
production.
Both sides conaider as a moat important task transition to exp~nded economic
relation~ on a long-term b asis and determination of main directions in coop-
eration. Both delegations agreed to speed up the development of a~oint pro-
gram of specialization and cooperation of production up to 1990. Special at-
tention will be paid here to raising the scientific-technical level of sectors
that are of deciaive importance for the economies of the two countriea.
The delegations also confirmed that the USSR und the CSSR will hencefotward
increase their contribution to the joint development of atomic enerRy in the
socialist countries. The parties noted with satisfaction that the completion
of the construction of the gigantic Soyuz gas pipeline will be of exceptional
importance for the economies of the constructing participating states.
In the talks ~ the Czechoslovak sided highly appreciated the technical aid of
the Soviet Union in Che construction of atomic electric power stations and
also of the Prague Metro, rightfully called a construction pro~ect of Soviet-
Czech oslovak friendship. The USSR delegation in its turn spoke positive ly of
the role of Czech oslovak deliveries of machinery and equipment for the Soviet
national economy~ especially for the metallurgical, petrochemical, petroleum-
refining industry and transport.
Economic cooperation, as was noted at the time of the meeting, continues to
be the main, determining factor in the rapid and continuous development of
Czechoslovakia~s national economy. All the prerequisites exist for the f ur-
ther expansion of Soviet- Czechoslovak economic relations. Their central di-
rection is close specialization and cooperation of production.
Considerable momentum to the economic cooperation of the CSSR with other
countries of the socialist co~unity and to the deepening and acceleration
7
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I~Ok UT~CICI:AL USI: ONLY
of inCe~rntion was given by the November conference (1978) of the i'olitical
ConsulCative Committee of the Member-5tates of the Warsaw Pact. As we knaw~
it paid apecial aCtention to long-term goal programs of multiLaternl coopera-
tion up to 1990. 5uch programa ehould provide for the neede of inember-statea
in f~ic:l, energy, raw materials, food products~ machinery, equipment And modern
technology. They will eignificantly increase the poeaibilities of all-round
and fuller use of tt?e advantagea of socialiam.
Czechoslovakia is devoting a great deal of atCention to economic cooperation
with other socialisC countries as well~ particularly cvith the Socialist Repub-
lic of Vietnam. In accordance with a treaty on deepenin~ and exp~ndin~ rela-
tions duYing 1976-19A0 ~ the CSSR granted credits for compensaCion of deliver-
ies for inveatment constructior. pro~ecta (for example, for reatoration of tt~e ~
railroad connecting the country's north and south) ~ Commodity turnover be-
tween the countries during 1976-1980 ahould inerease by 80 percent.
The CS5R provides assistance in Ceaching different tradea to Vietnamese citi-
zens. During the past six years 5~000 Vietnamese were trained and anoCher
3~500 were accepted. Within the framework of the CEMA Czechoslovakia will
participaCe in the building of a cement plant and a metallurqical combine in
the country ~ in eliminating the damage done to Vietnam by Bei~inR, whict~ per-
fidiously violated its treaty commitments.
Czechos lovakia grants credits and provides material-technical aid also to the
1, ao e o p 1 e' s Democratic Repub lic. Ttie government of the LPDR highly
valued Czechoslovakia's material assistance in overcoming the consequences
of the drought in 1977 and the flood in 1978. In cooperation with Che Soviet
Union and other CEMA countriea, Czechoslovakia assists fraternal Laos in the
construction of surfaced roads. Both aides are also preparing conditions
for the long-term development of mutually beneficial cooperation in proapect-
ing for and utilization of the natural wealth of the LPDR and in the creation
of a geological service.
Cooperat~.on with the Democratic People's Republic of- Korea is developing espe-
cially in the field of trade. In 1y78 the volume of commodity turnover be-
tween the CSSR ar?.d the DF'RK exceeded by 22.5 percent the 1977 indicator.
V
The planned development of the Czechoslovak national economy and the grawth
of its possibilities and needs create a constant interest in expansion of
trade with capitaliat states. But stable and long-term economic relations
are incompatible with all manner of limitations, discrimination and with
attempts of interference in the internal affairs of peoples. Elimination of
hindrances would lead to significant expansion of trade and economic rela-
tions with capitalisz countries. Tties~e relations could be transformed into
an important factor for improvement of relations between states with differ-
ent social systems.
8
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f~'Ol: Ul'l~'tCTAL 115L ONLY ,
Czechoylovakix's for.eiRn-trade turnover with developed capiCaliaC ~tnt~H ha~
been F;rowing from year to year~ and ttieir ahare in our foreign Crade has
likewise ~rown: in 1960 it compriaed about 17 percent and in 1977 abaut 20
percent. 'The fastest ittcrease in commodity turnover is with West-European
partners (the F'EtG share in Czechoslovakia's foreign Crade wiCh this group of
countries amounts to 26.5 percent~ with Auetria--15.4 percent, Great tiritain
9 percent~ H'rance--5.7 per~ent and ICaly--5.9 percent). In recent years
the relaCive share of the United States has Arawn (approximaCely to G percenC
of turnover with capitalist stotes).
Industrial and economic cooperation is developing successfully with our souCh-
ern neighbor--Austria, with Holland~ Sweden and Nozway. A certain development
is also to be noted in relations witti Canada. Japan has become rather a biR
partner in the field of scientific-technical cooperation. 'Itie number of work-
ing group~,formed within Che framework of committeea, enRaged in prepr~rations
of cooperation and also in the e:;c:::r.:~;C vf economic, commercial and technical
information by the CSSR with dAveloped capitalist countries exceeda 40.
Czechoslovakia tias concluded 9`'intergovernmental agreements in Che field of
scienCific-teclinical cooperation. Ha~.f of them were signed af Cer ttie 1{elsinki
conference. Scientific-research institutes and laboratories of the Czecho-
slovak Academy of Sciences are actively participat:ing in cooperation with
industrial capitalist states. The CSSR Chamber o~ Commerce maintaina close
contacts with the chambers of commerce of many capitalist countriea. Repre-
sentaCions of more th an 4u foreign firms are being estab lished in the country.
The role of Czechoslovakia as a tranait state, and one through which many
~uropean routes pass, is constantly growing. This includes first of all a
petroleum pipeline, a gas pipeline, electric transmission, motor, railroad
and river transport lines. In 1978 an agreement was siRned by Czechoslovakia
and the USSR on deliveries of natural gas to Cz~choslovakia and its transit
across the territory of the counCry. (?R its basis Czechoslovakia will provide
transmission of natural gas from Iran to West-European states. There h as been
proposed the construction of still another (third) line of a transit gas pipe-
line aCross our territory, which would supply gas both to the GSSR and to
West-European countries. After this line reaches full load in 1984. Cxecho-
slovakia in Cotal capacity of transit system will become the biggest trans-
porter of nat~ral gas in Furope.
A highway, whose construction will be completed in 1990~ will also cross the
- CSSK. It will go across countries situated between the Baltic and Mediterra-
nean seas--Poland, Czechoslovakia, Austria, Italy, Hungary, Bulgaria, Greece
and Turkey (total length--about 10,000 km).
Czechos_lovakia devotes considerable attention to agreements on industrial co-
operation, which constitute a pro~ressive and promising form of cooperation
and ~rade. With the help of industrial cooperation, the production capacities
of partners and their scientific-tec:!nical potential are used more effectively
9
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i~tllt ~tl~ I~ t.C 1 AI, U51: t)NI,Y
dnd itiv~~tm~nC progr~m~ gre n~~n being implamenC~d. t~~rttculnrly promi~ing
~~r~ ~uch formH oE cooperueinn, wh~rp reciprocnl deliv~rie~ occur on thn ba~ic
~�xchung~ of compnnentg, epnr~ parte or fini~hed producte.
N~w fnrttm of ~conomic cdop~rgCion are playing a gra,ri,ng role in fnreign-
economic r~lgrion~ wieh c~pitaligt eountries. Ag a result~ our partieipation
in int~rngeionnl divi~3dn of lnbor i~ becoming bigger~ rtarQ gtable~ and effec-
tive and ig s~~uming a coaq~lex and long-Cerm chgracter~ E~'or axempl~~ at the
tir?~ nE th~ chgirman of the CSStt gov~:rnment L. 5trougal Co ~rance (November
1975), u long-term ggreemcnt an~ signed on economic cooperation for 10 yearg
b~tween the two countries.
Indu~rrial coop~retion and epecializntion between CSSR end capitaliet etateg ig
anly develnpinq. In 1977, there were in effect 24 agreemants on ind~e trial
~oop~re.ti~n, 12 of th~m with the ~RC~ 3 wiCh France~ 3 with Auatria a~.d the
regt with Swpdpn, It~ly nnd Spein. Agreements concluded on an lntergovern-
ment~l level include the production of calculatorg, trucke and eo on. Coop-
erationgl tie~ ~xigt between a Czechogloval~~, enterprise in Brno and the West-
G~ rman Eirm of ~:~mens in the produ:tion oi! teleCype machineg. The ChKD
Machine-Uui~ain~ Combin~ cooparatee with the West-Gercnan Kraftanlagen Company
in th~ manufacture of heating equipment.
tn 1978 an agreement on cooperation and qrantinq of licenses, par~icu larly
for tlic: technology of a number of chemical proceseea in the field oE polymers~
biological ecience and electrochemistry and also in energy?~ was eigned by the
Czechoslovak Politechna ~oreign Trade Society for Technical Cooperstian and
~nglish firrt~.
Czec}~oglovakia also parCicipates in mixed (~ointly with capitaliet firma)
societies and conatruction pro~ects. It is b uilding to~ether with France an
electric pawer station in Algeria. In addition, mixed sales societiea l~ave
been fornied, for example, the Czechoslovalc-Italian Sigma Italiena, the Czecho-
s lovnk-5wedish Scansigma and others.
'It~e CS5R supports efforts of countries and organizations aimed at the solution
of problerre, vhich~ as was emphasized in the Concluding AcC of the Nelainki
Conference~ can Qnly be effectively aolved in close internationnl cooperation.
Tt~ese are problems connected with the protection of the environment, eneYpy
and transport.
One oE the chief reasons hindering the development of equal and mutually be~e-
ficial econocnic ties is the adoptian by capitalist states and their groups of
a nu~er of trade-political measures. They h ave erected a whole aystem of
di~crimination of socialist countries. A aerious barrier to trade between
the CSSR and developed cap~talist states ie being created by the artificially
maintained structuYe of barter, which is of no benefit to Czechoslovakia and
is not suitable to the level oE its economy.
1~
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1'Ok tll~ F' [C;1 AL Iltil~ (INLY
Vt
CieCho~ lavekin' g re ~nCidn~ ~ lil~e thaa~ g11 ~deiuli~ t s tnte~ ~ wi[h th~ d~-
v~lnaina cnuneri~~ ~re b~x~d dn principl~~ of ~n~~r~i~�ry, ~qualiCy ~nnd mutu~l
~ g~in. Cza~hn~lov~lci~ pravid~a eid to thag~ couner~Q~ in th~ buildinq of th~ir
indep~nJ~nt natidnal ucnnnmie~ ~nd df indu~tri~lixgtion~ primnrily wittiin th~
fr~rtreNnrk n~ economic cnoti~rntian ~~rri~d out on a lon~-term bn~i~; it eup-
partg ~uut r~c~uirEm~nt~ of the dpvelopinp, countrie~ aim~d at the p~tabli~hment
of ~ n~w int~rnetionsl ~~nnemic order ac?d chnnRe of an unfair ~ygt~m of
r~lgtinn~.
1~� GSSR hag ~t th~ prp~~nt tim~ ~conomi~ r~lntionxi with mor~ than 100 d~v~1-
opinp, rountri~g, it h~g concludpd ~+ith rh~m mar~ then 70 agr~~mm~nt~ on eeon-
umie coop~r~tion u~d nn r~~ulation of tradp and p8yrnenc cendZtidn~. Aqree-
mentg nn ~cientific-t~ct~nical coop~ration havu been ~ign~d with 35 state~.
in 43 af tt~e d~v~loping countrie~ ~ Cx~choglov8kia ha~ it~ a+n r~pr~~~ntativp~.
'Th~ regular bnre~r of ~ood~ pr~cticed form~rly ie b~inq incr~asingly ~uppl~-
tfl~fl[Ed with coop~ration. 5uc}~ r~lations not pxi~t b~taeen the G55R and tndia,
Wexica ~nd irnq.
5everal hundred Czechoglnv~k gpeciali~cs arte ~orkinR in diEferent economic
~ectnra of th~ developing countrieg. Ttie (S5~t guppli~~ [hpge Countriee aith
m~chinery c~nd pquipa~ent nnd hag put into opQration hUndredg df larRe indu~-
crinl ~n terpri~eg. Th~ lattcr in~ludp 60 plente in India, 1S in traq~ 14 ir
brazil~ 10 in Afghanigtan and 7 in th~ 5udan. They include electric rcn+er
gtetidnB~ petroleum refining plants, npen-hearth furnace~, Eoundry shope,
machin~-b uilding plant~~ mine~, c~ment~ brick and cprami~ plant~, textile
factorieg and plantg for th~ production of l~~ther~ rubber, ~uqer and canned
good~.
Very int~ngive tieg exigt with MRola~ Mozatrbique ~ Fthiopia~ the People's
bemocratic itppublic of Yemen and Afghanigtan. 'Phus, in aecordance With con-
cluded aRrepments an pconomic~ trade and gcientific-technicel cooperation,
tt~ere are b~inR built or have been built indugtrial facilities (footWear and
ttre pl~ntg and a plant for leather production). In the People's Repub lic
of JIr~Rola~ Cxechoslovak specielists are gupplyina aid in che regtoration of
trangport, elertric pwer ~tations and the paper induatry. Moreover, Czecho-
~lovakia is hclping in the traininR of national cadreg.
'Che econoaiic coop~ration of Czecheslovakia and Yeraen ig ain~ed at the stren~th-
ening and dev~lop~nt of an independent ecanocy. Czechoglavakia aseigts in
carrying out of geologic~l inve~tigation of coal depoeicg in five provinc~s
of the country end in the training of c~dre~ for induetry and agriculture.
T1~e ~SSR has traditionally good economic relations with AfRhanistan. ilith
tlie help aE Czecheslovak credit a nu~er of indu~trial facilitiee have been
builc; amonR tl~en ig the Eirsc cea~ent plant in che councry.
A ne~+ ele ment in international cooperation with developiap, countriex ig con-
~truction of fuciliti~B togeth~r With ocher socialist scates. Thus the CEMA
and Iraq have conclud~d an a~reecient on coopcretion.
~2
~bK t)~f ICIJ~S. lt:;E: c?;~1.1'
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t~utt c1~~F'tr,I~11, c151, c~N~,Y
C~e~l~n~lov~lrin'~ tet~1 ~xpart~ to develapinp, countri~~ h~d grown in 1977 cem-
p~r~d with ~~76 by 27.7 p~r~~nt, ineludinp~ ~xpnrt~ of mgchin~ry and ~q~ipm~nt
by 2y.S p~rc~nt. in r~can~ y~~r~ th~ gtructure of Czechd~lovnk ~xport~ to
dcv~lnpin~ co~ntri~~ ha~ m~rk~dl.y improv~d~ with machin~ry end equipmene b~inR
pr~dominant (more thnn ~i0 parc~nt of tocal e~orts). Imports from thee~ coun-
eri~~ in 1977 i~cr~ased kl perc~nt ovar 197G~ All thi~ att~st~ to th~ fQCt
thet r~l~tion~ witl~ youn~ ~tat~~ that hav~ ebandoned the w~y~ ef coloniel3~m
com~iri~~ nn in~ortant ~nd growing pert of Czecho~lovak for~ign trede.
Cx~ct~dgldv~lci~ i~ an activ~ participant ~n internation~l divi~ion of labor and
mgk~g an nctiv~ contribution to th~ dev~ldpe~nt of ppac~ful co~xi~tence of
~tateg with diff~r~nt ~dcial gystemg. t~ aaA pointed out at the 1Sth ConRr~s~
_ of th~ Gommuni~t t'arty of Czpcho~lovakia, the international po~ition of the
eountry in r~c~nt y~Ar~ ha~ be~n ~er~ngthened, and it~ pre~ti~e ha~ graMm.
5ucc~ggEully dcv~~oping for~iqn-~conemic ti~~~ firet of all r+ithin the frae~-
work o~ the ~ocieligt community, Czechoglovaki~ ig contributing to pro~reg~
in th~ cau~e of pence and internationa~ detecite and fruitful cooperation on a
~uropean and glob al ~cale.
~OOTN02~5
1. In comparigon aith 1937~ thp n~tional inco~ aae 151 p~rcent in 1953 and
173 percent in 1~55.
r
2. ~tUU~ pRAVO~ 17 Apr 1978.
3. tbidem~ 9 t~c 1978.
4. MIROVAYA EKONOMIKA I I~7~iDUNATtODNYYE OTNOSNENIYA, No S.
S. The treaty base of Soviet-Czechoslovak economic relations ia quite solid:
of 1S3 intergov~rnm~ntal and in.terdepart~oen~el treatieg, 111 pertain to
coop~ration in different economic fielde. They includp an aRreen~nt on
commodity turnover and peymeirtg for 1976-1980, lon~tprm aRreeoiente on
che development of cercain r~-matprial aectors in the USSR~ an agr~8n~nt
en trnnsporting of nacural gas acroag CSSR territory to countries of ileet-
ern Europe~ an agr~ement on collective cooperation in the production of
equipment for atomic electric pcnrer stations~ agraements on apecializa-
tion end cooperation of producticm. To~ether a~th remaining treatiea gnd
agreement~~ they form a firm and reliable ba~e for the further gra+ing
development of Soviet-Czechoslovak ~conomic telations in the interestg of
our countrieg and of the entire socialiat community as a ahole.
COPYRIGi1T: Izdatel~stvo "pravda"~ "Mitovaya ekonomika i mezhdunarodnyye
otnoaheniya"~ 1979
-
7G9 7
C50: 1800 ~i+ro ,
12
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