JPRS ID: 9942 USSR REPORT INTERNATIONAL ECONOMIC RELATIONS

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• Content Type: REPORTS

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JPRS L/9942
26 August 1981 .
USSR Re c~rt
~
INTERNATIONAL ECONOMI~ RELATIQNS
(FOUO 3/81)
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JPRS L/9942
26 August 1981
USSR REPORT
INTERNATIONAL ECONOMIC RELATIONS
CONTENTS
USSR WORLD T~DE
London Paper Anticip ate~ Tncreased Gold Sales to West
(David MaxsFi; FINANCTAL TIMES, 15 May 81)~ . 1
USSR-CEMA TRADE
Transportation and Economic Integration of CEMA Countries
(Valentina. Aleksandrovna Shanina; VOPROSY EKONOMIKT, Jun 81) .2

/
- a - [III - USSR - 38a FOUO)
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USSR WORLD TRADE
LONDON PAPER ANTICI~ATES INCREASED GOLD SALES TO WEST
LD151227 Lon3on FINANC7AL TIMES in English 15 May 81 p 36
[Report by David Marsh: ''Moscow 'May Se11 More Gold
[Text] The Soviet Union may sell more gold to the West this year because it
needs foreign exchange to support the Polish economy and import grain, accord-
ing to Consolidated Gold Fields, the London mining finance company.
In its annual review of the world gold market, published yesterday, CONSGOLD
says that last year Moscow was able to cut bullions sales and build up
' reserves, partZy because of increased revenues from oil and gas exports.
CONSGOLD bslieves net bullicn sales to the West last year by communist
countries (ma.inly the Soviet Union, but includ3ng China and Eastern Europe)
fell to 80 tonnes from 199 tonnes in 1979.
Mr David Pott, the company's chief gold analyst, said yesterday tha~ the gold
price might fall further during its present relatively weak phase. But higher
Russian sales "would not have a markedly depressive effect."
Bank for International Settlements figures publ3shed this week show Moscow '
has no pressing need for foreign e.~cchange. The Soviet Union's identified
cur.rency hold~ngs with Western banks rose 1.7 billion pounds during the
final quarter of last year to 8.6 billion pounds at end-December, partly
because of increased bank borrowings.
COPYRIGHT: The Financial Times Ltd, 1981
CSO: 1812/46
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USSR-CEMA TRADE
TF.ANSPORTATION AND ECONOMIC INTEGRATION OF CEMA COUNTRIES
Moscow VOPROSY EKONOMIKI in Russian No 6, Jun 81 pp 104-114
[Article by Valentina Aleksandrovna Shanina, candidate of economic sciences; senior
research associate of the Institute of Economics of the World Socialist System,
= USSR Academy of Sciences]
" [Text] One of the central problems in the further development and intensification
of the socialist economic integration of CEMA countries in the 1980's is effective
transportation.
The expansion of production and the increasing complexity of relations between
CEMA countries in the 1980's make high demands on transportation. Transportation
and economic relations between CEMA countries in this period will develop under
conditions of the further increase in the volume of recigrocal shipping given the
dynamic growth of output of branches in the manufacturing industry. At the same
time, the raw material character of the shipments persists and shipping distance
increases primarily as a result of the shift of the fuel and raw materials base of
the USSR to the eastern part of the country. According to forecasts of CEMA
countries, the reciprocal volume of foreign trade shipping will increase signif-
icantly.l
In the accoi.mtability report of the CPSU CC to the 26th Party Congress, L. I.
Brezhnev stated: "Today it is impossible to conceive the assurAd development of
a given socialist country, its solution of such...problems as the problem of
energy resources and raw materials supply and the problem of utilizing the latest
advances of science and technology unless it has ties with other fraternal
countries." The 26th CPSU Congress' "Basic Directions of Economic and Social
Development of the USSR in 1981-198~ and in the Period up to 1990" envisage the
further active participation of the Soviet Union in the intensification of socialist
economic integration, in the realization of the D':sPS [Special Long-Term Program
of Cooperation in the Development of Production Relations] of CEMA countries, and
in the development of foreign economic and international transport relations.
Between 1981 and 1985, reciprocal deliveries between the USSR and CEMA cour.cries
will bz increased by 40 percent and according to tentative estimates'wi].~ amount
. to 260 billion rubles.
Progressive structural changes in trade and international shipping of socialist
countries stem from improvements in the national economic structures in the
division of labor and integration, from the rationalization of production and
consumption of the products of fuel-energy and raw materials branches and from
international specialization and cooperation.
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The relative lessEnin~; of the raw material character of international shipping
is one of the leading trends in the development of transportation and economic
_ relations of CEMA countries that became particularly.apparent in the second half
of the 1970's. The realization of the coordinated strategy adopted within the
framework of the DTsPS at the 32d Session of the CEMA (1978) for resolving the
fuel-energy and raw material problem of satisfying economically substantiated
needs for the basic types of~energy, fuel and raw materials up to 1990 will in
the future reduce the volume of fuel and raw materials in the structure of shipping.
At the same time, the predominantly raw material character of shipping (which
relates primarily to the USSR's relations with CEMA countries) will retain its
significance. From 1971 to 1979 (inclusive) alone, the USSR supplied to countries
in the socialist community: 650 million tons of oil and petroleum products,
86.9 billion cubic meters of natural gas, 86.2 billion kilowatts of electric
power, 323.7 million tons of iron ore, 28.3 million cubic meters of round timber,
29.9 million cubic meters of sawn lumber2, etc. While the share of fuel and
raw material commodities in the structure of shipments between CEMA countries
will decrease in the future (Table 1), their absolute volume will grow thereby
~ creating complex shipping problems. Between 1981 and 1985, shipments of fuel and
energy commodities from the USSR to CEMA countries alone are slated to increase
by 20 percent compared with the last quinquennium3.
Table l. Dynamics of Output of Fuel-Raw Material and Manufacturing Branches in
the Structure of Shipments Bet~aeen CEMA Countries (in
Indicator 1970 1975 1985 1990
Output of fuel-raw material branches 86 84 78 77
Output of manufacturing industry branches 14 16 22 23
-'~Computed on the basis of national statistical foreign trade yearbooks for 1970
and 1970 and general forecasts based on published data in CEMA countries.
Despite the difficulties associated with the conditions under which oil is extracted
the delivery of oil from the USSR in the current five-year period will be raised
to almost 400 million tons. The considerable volume of delivery of iron ore,
rolled ferrous metals, nonferrous metals, sawn lumber, chemical products, c~tton,
etc., to the socialist countries is envisaged during the same period. The increase
in trade and in international shipments of products of the fuel and raw material
branches of CEMA countries will be furthered by the joint constructien of
integrated facilities within the framework of the Coordinated Plan for Multilateral
Integration Measures in the Soviet Union and in Other CEMA Countries4.
The intensive expansion of international specialization and cooperation of produc=
tion and the development of branches of the manufacturing industry and of foreign
trade deliveries, particularly in the field of ~~hine building, coordinated on this
basis will be the decisive trend in the structural changes in re~~iprocal transport-
ation and economic relations of CEMA countries in the 1980's. The scal- of
production cooperation between CEMA countries, the correlation of interrranch and
intrabranch specialization of production, the scale of its concentration, and the
territorial division of labor directly influence the volume, structure and direction
- of trade. Transportation guarantees stable cooperative relations between enterprises
of socialist countries, is an important factor in raising the level of concen-
= tration of production and the acceleration of scientific and technical progress,
and promotes the formation of optimal national economic structures and the
intensification of social production.
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The practical implementation of the DTsPS in the realm of machine building and
bilateral programs for the specialization and cooperation of production between
' the USSR and European CEMA countries up to 1990 will be the basis for the further
dynamic increase in the volume and expansion of the geography of foreign trade
- shipments and the shipment of machinery and equipment. Exports of machine building
products, e. g., from the USSR to CEMA countries in 1981-1985 will amount to
35 billion rubles or 40 percent more than in 1976-1980. Soviet imports of machinery
and equipment from countries in the socialist community during this five-year
period will amount to more than 60 billion rubles. There are plans to draft and
sign 104 multilateral agreements (including those already concluded) by way of
implementing the DTsPS of CEMA countries in the field of machine building5.
Study of structural change in iriternational transport relations of CEMA countries
- under the influence of intensive cooperation in the development of the manufact-
uring industry, specialization and cooperation in production, especially in machine
building, suggests that th~re has been change not so much in the volume of
shipping as in their qualitative characteristics. This means above all the
significant expansion of the mix of shipments of, output of the manufacturing
industry and esgecially of the machine building industry. In the commodity group
of machines and equipment, there is dynamic increase in specialized production6
and in the delivery of parts and assemblies~, of large and heavy equipment for
atomic energy, for the chemical, metallurgical, and other branches. In the course
of international specialization and cooperation of production (particularly with
= regard to parts and assemblies), there is a substantial increase in the intensive-
ness and degree of ramification of frei~ht shipments.
The Agreement on Multilateral Specialization and Cooperation of Production and
Reciprocal Deliveries of Equipment for Atamic Power Stations Between 1981 and 1990
should be noted among the signed agreements that implement the DTsPS in machine
building and that characterize the development of intensive relationships and
large-scale international shipments on this basis. The cooperative effort includes
approximately 50 industrial associations in the People's Republic of Bulgaria,
Hungarian People's Republic, German Democratic Republic, Polish People's Republic,
Socialist Republic of Romania, USSR, Czechoslovian Socialist Republic, and the
Soc~.alist Federal Republic of Yugoslavia. These countries are assigned a certain
product mix8 and volume of equipment deliveries which will form the reciprocal
shipment flows of the given products. The Soviet Union will supply CEMA member
nations with approximately 50 percent of the basic equipment required to equi~i
atomic power stations9. ~
"'he greater breadth and depth of international specialization and cooperation of
production and the establishment and strengthening of direct cooperative ties
between CEMA enterprises advance higher demands on their transportation on the
general scale of development of the transportation infrastructure. They are for
the most part due to the accelerated and broad specialization of the entire complex
of transport means in connection with changes in the structure of shipping in
branches of the manufacturing industry. The use of progressive transport
technologies, the precise organization of the transport process, the rhythm of
shipping in order to insure the continuity of cooperative processes, and long and
stable direc+ ~ies under the conditions of development of this form of inter-
national division of labor become exceedingly important.
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Transportation support of the cooperative efY~ort of CEMA countries in various
branches of material production in the 1980's wil]. be associated with the resolution
of territorial problem~ in the development of economic relations, with further
change in the location of the productive forces and especially the raw materials
- base of the USSR to the eastern part of the country. The transportation problem
is also complicated by the growth of internal raw material flows, especially the
flow of fuel and energy from the eastern to the western regions of the Soviet
Union. The November (1979) and June (1980) plenums of the CPSU Central Committee
called transportation one of the key problems and stressed the role of transport-
ation in connection with the ac~elerated development of industry in Siberia and
' the Far East and increased specialization and cooperation. "`fhe eastward shift of
energy and the raw materials base," L. I. Brezhnev noted at the 26th CPSU Congress,
"requires the acceleration of the development of roads, pipelines and airpnrts in
Siberia and the Far East."
The transportation factor exerts the greatest influence on the development and
location of branches of the extractive industry. This applies in equal measure
to .^.ooperative processes and integrative processes in CEMA countries in these
branches. The data in Table 2 are evidence of change in the transportation
component in ~khe price of individual commodities of the extractive and manufacturing
branches in Soviet trade with CEMA countries as a function of shippi:~g d~stance.
Table 2. Change in the Share of 'I`ransportation Costs in the Price of Individual
Export Commodities in Soviet Trade With CEMA Countries Depending of
Shipping Distance (in
Commodity Distance (in kilometers)
100 300 500 1000 2000 3000 4000 5000 6000
Metalcutting machine 0.1 0.2 0.3 0.4 0.5 0.6
tools
Passenger cars 0.2 0.5 0.9 1.6 3.1 4.7 6.2 7.8 9.3
Industrial fittings 0.1 0.3 0.4 0.7 1.4 2.1 2.8 3.6 4.3
Organic synthetic dyes 0.1 0.2 0.3 0.6 1.1 1.7 2.3 2.9 3.4
Synthetic resins 1.5 4.4 7.0 12.9 25 37.8 50.6 63 75.5
Iron ore 11.5 32.8 53 95.8 187 282 386 470 517
Cast iron 2.6 7.5 12.1 22 43 65 86.8 108 130
Coal 4.5 12.9 20.8 37.6 73.7 111 148 185 222
Round timber 3.6 10.7 17.2 31.2 61 92 122 153 183
Sawn lumber 1.2 3.6 5.8 10.5 20.6 31 41.4 51.8 62
Cellulose 0.6 1.7 2.8 5.0 9.9 14.8 19.7 24.8 29.7
%~Calculated on the basis of: "Mezhdunarodnyy zheleznodorozhnyy tranzitnyy tarif
MTT" [International Tariff for the 'I`ransit of Goods by Rail], Moscow, 1977;
and "Vneshnyaya torgovlya SSSR" [USSR Foreign Trade] for 1976, 1977 and 1978.
At the same time, the transportation factor acquires ever greater significance in
the development of cooperation of CEMA countries in various branches of the mami-
facturing industry, in the specialization and cooperation of production, especially
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~ in machine building. 'I'he absolute shipping costs of these branches, notwithstanding
their ~maller share in foreign trade prices, increase at a rapid rate with distance.
, The evaluation of the effectiveness of international specialization and concentration
of production and the optimal size of the enterprise participating in this form of
cooperation depend on shipping costs that can exert a decisive influence on the
choice of enterprise of a given type. The intensive development of production
cooperation of CEMA countries and the dynamic growth of the volume of international
shipping of products of branches of the manufacturing industry wi~l be the basis
of considerably higher costs of transportation and will be associated with the
solution of the problem of making their shipment effective.
In the pr~cess of implementing the Comprehensive Program of Socialist Economic
Integration and the five-year plans for 1976-1980, CEMA countries have achieved
significant results in the development of the transportation infrastructure. Their
cooperation in transportatiorn as it relates to foreign economic relations, especially
in the second half of the 1970's, is characterized by the intensive growth of
shipping, by the improvement of its forms and methods. They have begun carrying out
DTsPS for the development of transportation ties and measures specified in the given
agreements. CEMA countries have carried out major measures to strengthen individual
- types of transport in the process of implementing the Comprehensive Program of
Integration. The introduction of progressive types of traction has been the
leading direction in the development of railroads. At the beginning of 1980, 26.1
percent of the entire rail network of CEMA countries was electrified: a 1.3 fold
increase in comparison with 1970.10 The combined rail freight car fleet (OPV)
numbers approximately 300,000 unitsll (the fleet trebled in the last 10 years).
The dynamic development of oil and gas pipeline systems has provided an effective
solution to the problem of transporting oil and gas to countries in the socialist
community. The oil pipelines of CEMA countries increased 1.8 fold in length between
1970 and 1979. From its inception to the beginning of 1979, the jointly built
'bruzhba" ipeline has delivered 508 million tons of oil from the USSR to CEMA
nationsl~. The'Soyuz"gas pipeline--a major integrated transportation facility--has
been put into operation. In the second half of the 1970's CEMA countries carried
out a number of ineasure~ to make the work of maritime and river transport more
effective. The I1'ichevsk-Varna ferryboat system, the Soviet-Bulgarian "Dunaytrans"
partnership, and the international economic navigational enterprise "Interlikhter"
have been established and are in operation. The Unified Container Transport System
(YeKTS) has undergone appreciable development.
Despice significant advances in transportation and the implementation of important
DTsPS measures, unresolved problems and difficulties remain in transportation with
regard to the foreign economic relations of CEMA countries. The development of
transport still lags behind the growth of freight traffic. This results in the
still more intensive growth of pressure on transport involved in international
freight traffic. The capital investments of CEMA countries in transport in the
past were not sufficient and the rate of development and formation of transport's
material-technical base have been affected accordingly. The Soviet Union's major
transportation arteries are working very intensively. The carrying capacity of
railroads in a number of directions is practically exhausted13 whereas the optimal
load should not exceed 75 percent of tatal capacity14. The carrying capacity of
frontier stations, sea and river ports still does not fully secure the uninterrupted
shipment of exports and imports. This is one of the complex problems involved in
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the development of the CEMA countries' reciprocal relations. There is an apprec-
iable shortage of rolling stock. In some countries, there is a persistent tendency
toward highe~~ rail car turnaround time--an important indicator and major reserve
for increasing the carrying capacity and accelerating the delivery of national
economic freight by rail. For example, goods simultaneously in rail transit in the
USSR in 1979 were valued at 9 billion rubles.
Analysis shows that the problem of securing the complete and timely shipment of
goods in foreign trade of CEMA countries is to a considerable degree complicated by
a number of factors cf a non-transport charac�er. Among them, we should note first
and foremost the untimely and unrhythmic demands made at various times of the year
by shippers in the Soviet Union and other CEMA countries for the shipment ~f
foreign trade goods, and also shortcomings in the organization and technology of
transferring exported and imported goods at border points.
The result is the lack of uniformity in the shipment of foreign trade products to
border railroad stations, seaports and river ports for final delivery to the
importers. T'he increase in deliveries usually takes place at the end of a quarter
or year, which is an additional strain on transport--a strain that is sometimes
beyond transport's capacity. The untimely demand for the the expori: of foreign
trade goods creates serious complications in transport. Coupled with the
deficient level of development of the material-technical base of transport, the
result is the accumulation of vehicles at frontier tra~sfe�~ stations, on transit
lines, and in seaports and river ports. Roiling stock stands idle in expectation
of loading and unloading operations, the effectiveness of the transport process is
diminished and export-import goods are not delivered on schedule. What is more,
under the conditions of development of international specialization and cooperation
of production and the asser~bly and part forms of production, the normal process of
the production coopera-tion process is disrupted and the appropriate effect of the
international division of labor is not secured. Notwithstanding the continuous
- increase in large-scale investment in the development of the transport infrastructure
in recent years and the execution of DTsPS in this area, the effect of the invest-
ment cannot be fully realized to the fullest if such unevenness of deliveries
continues.
In the 1980's the solution of transport problems associated with foreign economic
relations and the further development of cooperation and integration of CEMA
countries in the most important branches of material production is primarily
linked to the DTsPS in transport adopted at the 33d Session of CEMA (1979). It
is based on the coordinated strategy of modernization and retooling of all types
of transport based on advances in science and technology and the increase in the
carrying capacity of transport of ~EMA countries in international traffic. The
accelerated introduction of scientific and technical advances in transport is of
decisive importance in the realization of the tasks posed in the DTsPS on the dev-
elopment of transport-economic relations. Its realization requires the conclusion
of 20 multilateral agreements, 15 of which have already been signed.
The complex of DTsPS measures and agreements15 will serve as the basis ~or a
- coordinated transport development plan For 1981-1985 with regard to the '.nter-
national shipping requirements of CEMA countries. The following top-priority
and high-priority measures (vis-a-vis the investment process) that are of decisive
importance for the effective development of transport relatior.,s and the uninterrupted
international shipments of CEMA countries already in the current five-year period are:
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--the accelerated technical retooling and modernization of international railroad
lines and on this basis the rapid augmentation of their carrying capacity chiefly
through the electrification of railroads, the construction of second tracks and
double-track inserts, the introduction of automatic blocking systems and central
dispatching systems, and tYie reinforcement of the upper structure of tracks;
--the development and retcoling of transportation hubs of CEMA countries' transport
systems, the creation of new and refurbishing of existing frontier railroad
stations and the augmentation of their processing capacity through the
construction of new tisnsloading complexes and their broad specialization. At the
same time, special atte*~tion should be devated to the modernization of stations
_ and tracks and to tlit mechanization and automation of station work;
--the technical retooling and modernization of sea- and river ports, the construc-
tion of highly mechanized and specialized piers and warehouse enterprises;
--the development and improvement of international mo*or highways on heavily
traveled routes; the construction of better roads taith progressive parameters;
the modernization and retooling of international airports on a new technical basis;
the establishment of new air routes;
--the augmentation and improvement of rolling stock in all types of transport
through broad specialization and through the application of progressive technical
parameters, through the standardization and unification of vehicles; and
--the accelerated introduction of container shipping within the framework of the
YeKTS; the creation of container lines and terminals for handling large-tonnage
coiitainers .
These measures and their stage-by-stage implementation together with other
measures will retain their significance in time to come as well. A coordinated
policy of retooling and modernizing the material-technical base of transport,
the improvement of the capacity and maneuverability of the transport system,
the accelerated growth of its carrying capacity and its requisite reserves are the
main task in the resolution of the problem of satisfying the national economic
shipping n~eds of CEMA countries in the 1980's.
In addition to the technical retooling of transport, CEMA countries will have to
implement measures to increase the complete and complementary use of its individual
types, to ensure the more rational distribution of shipping operations among them,
and to ensure the solution of the problem of securing the all-round, broad
intensification of international transport ties under conditions of the reciprocal
division of labor. Structural changes in the reciprocal trans~.ort relations of
~EP4A countries in the 1980's will be characterized by the following data:
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Table 3. Share of Various T~rpes of Transport in Shipments Between CEMA Countries
(in a)
Type of transport 1975 Projected
1985 1990
Rail 54.8 46-49 45-50
Sea^ 18.1 20-21 2~-21
Ri'ver 3.9 4-5 4-5
Truck 0.2 0.3-0.4 0.3-0.5
Pipeline 23.0 26-30 25-30
~'~Including sea ferry crossings.
Source: EKONOMICHESKOYE SOTRUDNICHESTVO STRAN-CHLENOV SEV, No 5, 1979, p 44.
Notwithstanding the lowering in th~ share of rail transport in the shipments, it
will continue to play a leading part in the current decade. This is the priority
direction and a most important task of CEMA countries within the framework ~~f the
DTsPS. The implementation of a complex of ineasures of the IJTsPS for the development
of the network of USSR railroads on (East-West) approaches to western frontier
stations and transport hubs, for the improvenent of organizational and technological
processes in their work, and broad specialization in accordance with the structure
of trade is of paramount importance in 1981-1985. These measures are slated for
implementation first on the most heavily loaded railroads lines in the direction
USSR-Hungary-Czechoslovakia and at the frontier staions Chop, Uzhgorod, Batevo, etc.
Important directions requiring such work are the USSR-Poland-GDR and USSR-Romania-
Bulgaria directions. Frontier stations and rail centers in these directions
(Brest, Malasheviche, Reni, Ungeny, etc.) are also greatly overloaded. Fron'tier
stations and junctions between European countries belonging to CEMA (North-South)
= and between the USSR and the Mongolian People's Republic must als~ be developed.
Additional reserves should be explored for reducing the load on railroads and
frontier stations particularly by transferring foreign trade shipments to river .
transport on the Danube (ore, coal, metals, machines, equipment, foodstuffs., and
manufactured goods) and by increasing the share of river transport in the inter-
national relations of CEMA countries. A similar task confronts trucking. It is
planned to convert a wide range of foreign trade goods--household appliances,
instruments, chemical goods, perishables, consumer goods, etc.--to this type of
transport.16 The significance of motor transport also grows in the rhythmic and
continuous real.ization of international production cooperation processes. This
also applies in equal measure to air transport, the use of which may be authorized
for small-lot shipments of highly processed products.
_ One of the important problems that should receive especially great attention in the
1980's is the accelerated development and expansion of progressive conta~ner ship-
ments within the framework of the Unified Container Transport SyStem in accord-
ance with measures specified in the DTsPS in this area. As analysis shows, the
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transport relations of CEMA countries contain major reserves for increasing
container ~hipments and for expanding the mix of goods shipped by container.
The "door to door" container shipments of goods with minimum shipping costs and
the shortest delivery time are effective in the development of integration
processes and the division of labor particularly within the framework of
specialization and cooperation of production.
The problem of increasing the containerization of international shipments requires
the accelerated implementation of DTsPS measures in this area and especially the
intensive development of its material-technical base, including the coordinated
production of technical means--specialized and general-purpose large-tonnage

~ containers, rolling stock, terminals, hoist-transport equipment, etc. Considering
the fact that capital investments in the development of the YeKTS as the bulk of
I)TsPS transport measures are of a national character and are primarily due to the
development of internal shipping, the countries may define these investments as
priority investments based on the importance and high effectiveness of container-
ization.
Study of structural change in transport relations between CEMA countries and
consideration of the urgency of reducing the load on rail transport and excess-
ively important organizational and planning problems of foreign trade deliveries
suggest the expedience of the further investigation of a number of directions of
effective shipment of foreign trade products that go beyond the framework of the
DTsPS.
- Analysis of world trends and basic directions of accelerated introduction of
scientific and technical progress in the development of transport--especially
pipeline transport--suggest that it has greater potential and the possibility of
raising its role in the development of relations of CEMA countries in the 1980's and
1990's. The reference is to the use of pipelines for the shipment of products of
the mining industry (ores, coal, etc.)l~. CEMA countries are studying this
problem with the aim of reaching a joint solution in accordance with the
Comprehensive Program. Such cooperation already exists between some CEMA
countries and capitalist countries. In particular, plans have been developed
_ for a pipeline to transport Polish coal between Poland and Austria and between
Poland and Italy18.
The Soviet experience of using pipelines to transport solids attests to the highly
economical results in a number of cases. At the present time, a reasibility study
is being made of plans for building an experimental 250-kilometer nipeline between
Kuzbass and Novosibirsk for the hydraulic transport of solid fuel through pipe
400 millimeters in diameter. Every year the pipeline will deliver 3.5-4 million
tons of coal that will satisfy the needs of Novosibirskaya TETs [Heat and Electric
Power Plant] No 5. With the experience gained in the operation of this pipeline,
it will be possible to lay major coal pipelines between Kuzbass and the Urals and
between Kuzbass and Tsentr with a car~rying capacity of up to 30-50 million tons
a year. The "Basic Directions of Economic and Social Development of the USSR in
1981-1985 and the Period Up to 1990" note the need to develop the transporting of
coal by pipeline. The use of pipelines for the transporting of mining products,
in particular coal, in the relations of CEMA countries--initially over short
distances--appears possible in the 1980's and early 1990's. It will subsequently
be possible to study the question of using pipeline transport for the delivery
of iron ore and other products in international traffic.
10
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Great prospects for the solution of transport problems in internal ar.d inter-
national relations are opened up by~ the construction of high-voltage LEP
[electric power transmission lines]. In 1979 the decision was reached to build
a direct current 1500 kilovolt high-voltage LEP between Ekibastuz and Tsentr over
a distance of 2500 kilometers which will use the rich, inexpensive coal of the
Ekibastuz Basin19. The LEP will make it possible to transport 6 million kilo-
watts of energy to energy-deficient regions in the European USSR. The "Basic
Dire~tions of Economic and Social Development of the USSR in 1981-1985 and in the
_ Period Up to 1990" er.visage the activation of the first phase of this LEP and
an alternating current LEP with a voltage of 1150 kilovolts between Ekibastuz and
the Urals.
With the acceleration of scientific and technical progress and the application of
new engineering solutions, the role of pipelines and high-voltage LEP as an
effective means of transport in internal and international relations will grow
continuously20. For example, the transmission of electric power over LEP
existing in the USSR in 1976 alone (over a distance of 638,400 kilometers)
replaced the shipment of 100-120 million tons of natural fuel~l. The planned
construction of atomic pow~r stations with a combined capucity of 37 million
kilowatts in CEMA countries aiid their activation will save 75 million tons of
ideal fuel annually.
The unification of national power systems and the organization of their operation
in parallel are important directions in the further development of cooperation of
CEMA countries in the field of electric power22. The activation of the 750
kilovolt Vinnifisa-A1'bertirsha LEP and the subsequent development of the network
of electric power transmission lines of the same or higher voltage will promote
the continuous increase in deliveries of electric power to CEMA countries. The
higher role of these progressive types of transport for internal and international
shipments will reduce the load of railroads, will facilitate the passage of
products through frontier stations without reloading, will reduce the intensiveness
of their work, and will increase the effectiveness of the transport process.
- The construction of new types of Soviet-gage railroads by interested countries
thereby facilitating the passage of goods through frontier stations without reloading
to the point of consumption may be a cardinal path to the effective and uninterrupted
shipment of foreign trade goods, especially fuel and raw materials, in relations
between the USSR and CEMA countries. Positive experience in such cooperation has
already been amassed and can be disseminated. Trunk lines of this type that have
already been built and are in operation from the border of the USSR to metallur-
gical combines in Kosice (Czechoslovakian SSR), Galati (Socialist Republic of
Romania) and Katowice (Polish People's Republic). Existing reserves of the
carrying capacity of existing activations should be used more completely.
The joint construction of distribution centers for export-import commodities a~-
barder stations, in seaports and river ports may become one of the directions in
- increasing the effectiveness of shipment of foreign trade goods in the '980's and
- 1990's. This is especially important in the case of uneven receipts of shipments
and the resulting accumulation of foreign trade goods at transfer points.
Distribution centers may make a major contribution to the solution of the problem
of securing the uninterrupted supply of transport facilities for international
production cooperation, the timely delivery of assemblies, parts, etc. The study
u
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_ of the given question should be accelerated with due regard to the existing world
practice of building and operating such distribution centers for ~11 manner of
products23 as an important component part of the general problem of increasing the
effectiveness of transport. The functioning of such distribution centers will
permit the more uniform shipment of export-import goods over various periods of the
year at individu-si =rontier points and make it possible to tal:e their capacities
and specialization into account.
Already in the next five-year period, the effectiveness of ineasures indicated in
the DTsPS will to a cunsiderable degree depend on solutions to comprehensive
interbranch problems. The precise and uniform action of suppliers of goods for
export on schedule becomes a matter of paramount importance.
The "Basic Directions of Economic and Social Development of the USSR in 1981-1985
and the Period Up to 1990" poses the task of "improving the organization of
deliveries in international traffic." The realization of this task will depend
to a considerable degree on the greater cooperation and reciprocally coordinated
action of planning, material-technical supply and foreign trade organs and of
branch ministries and departments in improving the mechanism for managing foreign
economic relations under the conditions of integration. A large part in the
solution of the given problem can be played by the elaboration and introduction of
measures to stimulate the activity of material supply enterprises and organs
and foreign trade in the delivery of goods for export.
T'!~e practical implementation of conpretiensive measures for the development and
intensification of transport~-economic relations of CEMA countries predetermines
- the further all-round improvement of the economic mechanism underlying the
cooperation of CEMA countries and above all the pricing of international shipments.
This is one of the most important problems of present time and requires
independent, fundamental and comprehensive investigation. The elaboration of a
scientifically substantiated, mutually advantageous, sophisticated system of
transport prices is a necessary condition to the successful solution of the
problem of supplying effective transport for the cooperation of CEMA countries
in the most important branches of material production and the development of
socialist economic integration.
Reciprocal consultations of CEMA countries on basic directions oi long-range
transport policy envisaged in the Comprehensive Policy acquire ever greater
importance in the effective realization of the comprehensive tasks of international
transport under integration conditions. This is all the more important in the
light of the 26th CPSU Congress task of supplementing the coordination of plans
- with the coordination of economic policy as a whole.
FOOTNOTES
1. See EKONOMICHESKOYE SOTRUDNICHESTVO STRAN-CHLENOV SEV, No 5, 1979, p 44.
2. Calculated on the basis of "Vneshnyaya torgovlya SSSR" [USSR Foreign Trade]
. and national statistical yearbooks on the foreign trade of CEMA countries
for the given years.
12
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3. See EKONOMICHESKOYE SOTRUDNICHESTVO STRAN-CHLENOV SEV, No 49 1979, p 44.
4. 'I'he Soviet-Mongolian "Erdenet" Combine, the capacity of which doubled in
_ 1980 following thE activat~.on of the second phase (see PRAVDA, 3~ Jun 80),
makes it possible to increase international shipments of copper-molybdenum
. c~ncentrate. Cooperation in the development of nickel production in the
Republic of Cuba for the satisfaction of its own needs and the needs of

, other CEMA countries will undergo further expansion.
5. See EKONOMICHESKOYE SOTRUDNICHESTVO STRAN-CHLENOV SEV, No 3, 1980, p 30.
6. The share of specialized products in total exports of machinery and equipment
of CEMA countries (in terms of value) in 1979 was 35 percent compared with
24 percent in 1975. The number of specialized products is in excess of 10,000.
The volume of exports of specialized machine builc'ing products between CEMA
countries is growing approximately twice as fast as the overall exports of
machines and equipment (see PRAVDA, 28 Apr 79; PLANOVOYE KHOZYAYSTVO, No 9,
1980, p 91).
7. Cooperation in the production of "Zhiguli" automobiles can serve as an example
of large-scale international cooperation and rpciprocal deliveries of parts
- and assemblies. Approximately two-thirds of its parts are manufactured at more
than 250 cooperating enterprises outside the Volga Auto Plant. Thus, Bulgaria
and Poland each supply 10 types of component parts and assemblies; Hungary--
18 (300,000 units of each item); Czechoslovakia--electrical equipment, etc.
(see VOPROSY EKONOMIKI, No 8, 1980, pp 85-86).
8. Thus, within the framework of specialization the USSR will produce the bulk
of the products of the atomic machine building industry--pawerful reactors as
a package, steam turbines, and a large assortment of instruments and apparatus.
To this end, the "Atommash" Plant is being built and the capacities of other
enterprises are being expanded. Czechoslovakia plans the manufacture of
reactors, steam generators, and main circular pipelines; Hungary--reactor
servicing mechanisms; Poland--volume compensators and diesel generators;
- Bulgaria--biological protection systems and fittings (see EKONOMICHESKAYA
GAZETA, No 13, 1979, p 20).
9. PRESS-BYULLETEN' SEKRETARIATA SEV. Moscow, No 8~: 1980, p 3.
10. Calculated on the basis of: "Statisticheskiy yezhegodnik stran-chlenov Soveta
Ekonomicheskoy Vzaimopomoshchi" [Statistical Yearbook of Member-Nations of
the Council of Mutual Economic Aid], Moscow, 1980, pp 275-276.
11. See EKONOMICHESKOYE SOTRUDNICHESTVO STRAN-CHLENOV SEV, No 5, 1979, p 45.
12. See "Sodruzhestvo stran-chlenov SEV" [Community of CEMA Member Nations],
Politizdat, 1980, p 112.
13. During the 8th and 9th five-year plans (from 1966 to 1975), the inc~~ease in the
carrying capacity of Soviet railroads was lower than the inerease in freight
_ traffic by 328.5 billion ton-kilometers. The ratio of the increase in the
freight traffic to the carrying capacity of USSR railroads in various five-year
plans is characterized by the following data (in billions of ton-kilometers):
1961-1965--6~:733; 1966-1970--860.5:686; 1971-1975--977:823 (see PLANOVOYE
KHOZYAYSTVO, No 5, 79, p 63). 13
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14. ~ee PRAVDA, 18 Feb 79.
15. For more detail on the DTsPS on the development of transport relations of
CEMA countries and agreements implementing it, see V. Biryukcv, "Combining
National and Intern~tional Efforts" (EKONOMICHESKOYE SOTRUDNICHESTVO STRAN-
CHLENOV SEV, No 5, 1979); B. Gorizontov, "Integration of CEMA Countries in
Transport" (VOPROSY EKONOMIKI, No 3, 1980); N. Mozharov, "Long-Term Special
Program for Cooperation in the Development of Transport Relations of CEMA
Member Nations" (VNESHNYAYA TORGOVLYA, No 11, 1979), etc.
16. It should be noted that motor transport has become a common feature in
international shipping between EEC countries. The share of trucking in
international shipping within the framework of the EEC in 1965-1977 was
approximately 16 percent; its share in individual countries ranged between
8 and 22 percert. Trucks are used in international shipments of fresh fruits,
foodstuffs, chemic~l goods, mineral raw materials (excepting ores),
construction materials, finished goods (see S. S. Nikitina, "Truck and River
Transport in Foreign Trade Shipments in EEC Countries," BIKI, Appendix No
4, 1980, p 4).
- 17. Pipelines in foreign countries find ever broader application in the trans-
porting of solids, and especially coal. This method is successfully used
to deliver coal to electric power stations 2Q0-450 kilometers distant from
the point of mining. Today there are plans for coal pipelines, in the United
States, for example, 1046-2687 kilometers long with a carrying capacity ranging
between 10 and 40 million tons a year. It is proposed that a number of them
be built by the mid-1980's (BIKI, 11 Mar 80).
18. "Kohle schwihmit im Methanol zum Kraftwerk," VDI--NACHRICHTEN, No 25, 79, p 4;
"Glyukauf," No 6, 1980, p 51.
19. Problems involved in trcnsporting gas from Western Siberia by pipeline in
comparison with the construction of powerful electric power stations at the
point of extraction and LEP for the transmission of electric power, etc.
are studied in connection with the investigation of ~~ossible variants of
transporting fuel and energy from the East to the Ur-als and to ttie European
parts of the nation. (for greater detail, see T. S. Khachaturov, "Effektivnost'
kapital'nykh vlozhen~.y" [The Effectiveness of Capital Investments], Tzdate~'-
stvo "Ekonomika," 1979, p 221).
20. The view of V. Shafirkin and other economists regarding the necessity of
including high-voltage electric power transmission lines in the Unified
System of Pipeline Transport and of counting them in the planning of develop-
ment and in the evaluation of the effectiveness of its work in national economic
transportation seems correct and substantiated.
21. V. I. Shafirkin, "Povysheniye effektivnosti gruzovykh perevozok" [Increasing
the Effectiveness of Freight Shipments], Izdatel'stvo "Transport," 1978,
p 18.
22. Parallel work of unified power systems of CEMA countries at the beginning of
1979 was conducted with 31 LEP intersystems: 1 with 750 kilovolts; 10 with
400 kilovolts; and 12 with 220 kilov~lts. Between 1960 and 1978, the exchange
l~+
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of electric power between CEMA countries increased more than 15 fold
- (see EKONOMICHESKOYE SOTRUDNICHESTVO STRAN-CHLENOV SEV, No 2, 1980, p 49).
23~ For example, in the industrial zone of the port of Rouen (France), there is
a distribution center for the batching, packaging and shipment of automotive
parts t~ shipped to the auto assembly plants of a French firm in Western
Europe, South Africa, America and Asia. A distribution center for spare parts
of a Japanese automotive firm has been opened in Great Britain. In the region
of Hengelo in the Netherlands, there is a distribution center that serves
the EEC countries. It handles a broad assortment of finished goods (textiles,
cameras, bicycles, etc.). Such centers have highly mechanized warehouses
and their work is highly computerized (JOURNAL MARTNE MARCHANDE, No 2895,
1975; FREIGT MANAGEMENT, No 143, 1978).
COPYRIGHT: Izdatel'stvo P~VDA, VOPROSY EKONOMLKI, I981
5 O1'3
CSO: 1825/32 ~D
15
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