MINUTES OF MEETINGS OF FERROMET

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP83-00415R005100150002-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 9
• Document Creation Date: December 15, 2016
• Document Release Date: June 19, 2002
• Sequence Number: 2
• Publication Date: August 8, 1950
• Content Type: REPORT

I
FORM NN 1 5 1. 6 1
)t,Ay 1949
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CLASSIFICATION SECRETE CO~tPR - US. %FIt%jALS B1~i~
CENTRAL INTELLIGENCE AGENCY REPORT NO.
INFORMATION REPORT CD NO.
COUNTRY Czechoslovakia
SUBJECT Minutes of Meetings of Ferromet
PLACE
ACQUIRED
DATE OF INFO
ACQUIRED
CIA library
DATE DISTR. 8 August 1950
NO. OF PAGES
NO. OF ENCLS. 1 (8 pages)
SUPPLEMENT TO
REPORT NO. "'-
Attached for your retention is a translation of a Czech-language report con-
taining minutes of meetings held by Ferroinet
1949.
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HIS DOCOMEOT` AS AN EMCLOSOIO
DO NOT DETACH
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THIS IS AN ENCLOSURE TO
DO NOT DETACH
FOREIGN DOCUI+NTS DIVISION
CONFERENCES AT FERROIET COMPANY
(From the Czech Document
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NOTES
on a Conference Held on 13 May 1949 in the Offices of Ferromet
A list follows of those present, with notes appearing in pen_
Directory+Dr Rein (an ardent Communist; was a soldier both in the
West and in the USSR);
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Brumovsky'(also from the Director's office, Department 0);
Engr Jezbera, from Department I (Administration and Accounting);
Zalis,1 from Department II (Legal Affairss a 'C mmunist);
Dr Sulc, also from Department II (a soldier in the West; O.K.);
Junff from Department III)(a former National',Socialist; he is
a.fraid;:O.K.);
Dr Spitzer, from Department IV (a former soldier in the West; a
Communist);
Horsy from Department V (a former soldier in the West; a Com-
munist);
EFreschli from Department VI (O.K.; he is afraid ;
;Steiner, from Department IX (cadre referent!; he was a soldier in the
USSR);
Kratky(b''actory Council; O.K.).
The meeting was opened by, Director, Dr Hein.
Germany. Dr Spitzer announced that he was constantly receiving
requests for materiaLfrom Berlin, It was decided that the matter be
di,cussed7with the Russian Department II in order to find out from Za-
Zator ??f/ ~d hu~ -tc' 0P'4 -F0 4~ 4E.J -ih,ej
torka4how to procee- merman rms ft"a to
send import permits as soon as possible.
~~ osfa~%~ Dr Fein reported on a talk he had with the Vice-Minister, Dr
Ou.trata. The purpose of this talk was, among others, to determine the
actual state of Yugoslav Trade. Engr Kozinc, will make a search in the
"unsalable
factories to see whether some material, which is classified as A%^mi^mft
41111111110 couldn* be used domestically. For this purpose he will re-
ceive a list of all material by factory, with numbers, value, and weight.
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Resume of the Talk on Yugoslavia:
i) Final decision will be made in a few days;
2) Nothing new is to be delivered for production;
3) Goods already being manufactured are to be finished;
4) Production is to be directed wherever possible to current goods;
5) Under no circumstances is anything to be sent out of the factories;
6) No new contracts are to be made and all negotiations are to be
extended;
7) A preliminary survey of the market be made in case cut-
rent material is tube sold somewhere else.
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NOTE
on a Conference Held on '30 May 1949 in the Offices of Ferromet
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Yugoslavia. Director Jungmann announced that the Yugoslavs had
teas rep{
opened credit accounts and were urging that deliveries be made. Dr
Hein answered that nothing was to be sent, and that the Yugoslavs were
to be informed that for technical reasons noting could be sent out for
the time being. A final decision will be made between 1 and 10 June 1949.
Similarly if any Yugoslav commercial agent has a permit to visit a fac-
tory, he is not to be allowed to enter.
Machety. A letter was read from the Technical Department of the
Metallurgical Center (Ustredi. H.uti) in which it was pointed out that
bank
the functions of/account "M" were not well understood. The metallurgical
plants use this account even for their investment expenses. ,The point
of this paragraph is not quite clear, since it is out of context. The
meaning of Machety is also not clear, but presumably it is a name.
dritcL~-'
Babacek,nof the Cadre Bepartment, pointed out that passports must
be handed in to the Cadre Department when anyone returns from abroad.
Fantl paid that it would be a good idea if the Cadre Department would
make out personal doeuments for everyone, since in some cases the pass-
port is the only identification a person has.
Monthly Report
14 June 1949
on Activity in May 1949, according to Circular No 25/1948
Activity in connection with individual currency areas follows:
P!- olnnsy. i P,aft
Currency Area I: (USSR H~w~~i^irwrhas presnnted an or-
der for 320 tons of crude sheet metal` Delivery has been promised
' - Safu5~7~fE~YhpUr~ )
for 15 September 1949. An order has also been receivedfor 2,500 tons
of heavy railroad rails under the extended 1949 agreement. We will
in 1949
not be able to deliver/the small rails asked for. Since we have been
unable to fulfill the plan for deliveries to the Czechoslovak State
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Railroads)s weM were not able to comply with the repeated requests of
)ye
Promsyr import that we speed up delivery of the heavy rail. Imports
of pig iron are unsatisfactory. In May 10,128 tons were imported at
a. value of 29,119,000 crowns.
Currency Area II:
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Bulgaria: Metalimport Sofia sent in orders at the end of the month.
We *bk" unable to supply the requested concrete steel in profiles less
than 12 mm, since the Ministry of Industry has stated that there wii-1 our-
not -bes enough thin profiles for domestic construction. We have also re-
nb ovt
ceived an order for railroad axles worth A, 4,600,000 crowns.
have
Yugoslavia: On orders from higher up we/stopped, beginning in May,
all shipments to Yugoslavia until a further decision is made. The Yugoslavs
have sent in new orders and asked for confirmation. Yugoslav shipyards
have sent in specifications for 4,000 tons of sheet metal and profiles
for ship construction.
Currency Area III:
Rumania: The General Management of Metalimport i. Bucharest has
(D t- o b+n t 5c c1 t c ~ jn C~'~-C~1A ~ }
sent in confirmation of the contract on the 1949 a. reement. Them
for 510 tons of switches for heavy rails have not arrived. Our repre-
sentative informs us that Rumania does not intend to order this material,
but will request other items. We have received orders for signal wire,
shoemaker's tacks, and electrodes, and negotiations . ice on a con-
tract for chain, The reduction of prices for Rumania has resulted in
a considerable reduction in expected income.
jungarv: We have gone over the quota assigned by the existing ag-
reement by about 10,000,000 crowns. This is the result of accepting
orders for special forgings and castings. In spite of all our efforts
we have been unable to amp obtain. orders for pneumatic tools or
electrodes as part of the present agreement.
Austria: The question of importing wood screws worth 5,000,000
crowns has not been stttled. Negotiations over price are still going on.
In May 10,841,000 crowns' worth of hematite iron was imported..
f F?g Fesa .
aF r w
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Currency Area IVa: JSoviet Zone of Germano:
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SVAG funidentifie / has sent in an order for 900 tons of boiler
plate, and would like to pay for it with scrap metal.
Currency Area V: ;
Finland:-We have offered 500 tons of rolled material on the 1950
WC
agreement.menmmmt. Since the market is saturated shall not try to send
any nails, but we have offered instead 800 tons of barbed wire and 250
tons of untreated deawn steel. We have received an order for railroad
wheel sets worth 4,300,000 crowns.
Switzerland: It is becoming more and more difficult to sell goods
in Switzerland. About 700 tons of4' Fateriai, worth about 450,000
Swiss francs, is about to be Gent back.
Sweden: Conveyor belts and steel wire worth about 677,000 crowns
have been imported, and the first imports of pig iron have been made.
Currency Area VII:
Argentina: We have not yet received orders for the material which'
oil pipe
we have offered for sale. The most recent reports are that the/pro-
ject has been postponed, so that the x= deal to sell 6,000 tons of
tubing will probably not be completed.
The quantity of commodity 1 aidentifie# which has been re-
leased as a result of the changed situation in Yugoslavia has been
made available for commercial and political negotiations with Poland.
We have received orders for boiler material, primarily from holland
and Sweden, and smaller quantities have been ordered by Norway and Bel-
gium. Trade in pneum~,..tic tools has been slow, but we expect a lot
of"orders when negotiations with Poland have been completed.
Our delivery periods are longer than those of our competitors, and
we are endeavoring to keep precise records of the delivery periods of
individual orders.
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During the month of May 2.5%_of the employees were absent because of
illness. A total of'4.3% of the total time worked during the month was
done on overtime.
lluring the month 23 employees went through political indoctrination
courses. Of this total, 20 were in the Zatee school, 2 in Senohrady, and
one in Doksy. In May the special courses in English and Russian were
stopped for three months.
Transportation of sAt g cods for exr:ortn was orderly in all re-
xpzxtw&u spects.
paid--for deliveries to Yugoslavia, including their present status
on a Conference Held on 3 June 1949 in the Offices of Ferromet
ilt watie-is was Q C4 b4I $it , e br, r jl'Cc,'!
Yugoslavia: Dr Hein-reported on a telephone conversation he had
L 661.
with the Vice-Minister, Mr4 L8bl wanted precise information on
and the names of employees who were to blame. This will be done by
Department I together with the Oontrol Department.
on a Conference Held on 8 June 1949 in the Offices of Ferromet
The meeting was opened by Director Babacek.
Dr Spitzer reported that he had received an answer from the German
firm Stahl Union & Mannesmann to the effect that they were unable to
deliver precision tubing. He till try to get some through London or
from Italy.
Portugal: Stibor reported on difficulties with an order which
the Portugese placed for wire. Some deliveries have been made, but
the 40 tons which were supposed to be delivered in May were not, and
the Pnrtugese axzmnmx firm is now closing its account with the
Zivnobanka.. It was decided to deliver at least 40 tons, which are
finished, since bbpartment V would not be able to send.80 tons by June.
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NOTES
on a Meeting of Directors Held on 8 June 1949 in the Assembly Hall
of the Chamber of Commerce
Ferromet was represented by the Second Assistant Director, Comrade
Babacek, and by the Director of Department II, Comrade Fantl.
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The purpose of the meeting was twofold: A) To ensure fulfillment
of the export plan to the dollar area (Currency Area VII); B) To develop
cooperation with the licensed companies.
A) The Ministry is particular, interested in exports to the dollar
area. For this reason the correctness of the function of the licensed
companies is to be judged primarily according to their fulfillment of
the export plan to the dollar area.
Since the export plan to the dollar area was fulfilled by only
about 50% during the first four months of 1949, the Ministry of Foreign
Trade has decided:
1) To reorganize Currency Area VII in the Ministry;
2) To emphasize the personal responsibility of commercial attaches
in the dollar area;
3) To require the managers of the licensed companies to include in
their monthly reports a special report on their activity in connection
with the dollar area;
4) To make the managerAof the licensed companies responsible for:
a) appointing a high official responsible for following the ful-
fillment of the export plan to the dollar area;
b) issuing special weekly reports on orders received from the
dollar area;
Ofeeki
c) issuing special repots on confirmations of such orders.
B) The rest of the meeting was devoted to a discussion of cooperation
between the Ministry and the licensed comi::anies.
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