PARTY RECOMMENDATIONS FOR DIRECTIVES ON CZECHOSLOVAK SECOND FIVE-YEAR PLAN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-00280R000200160011-7
• Release Decision: RIPPUB
• Original Classification: U
• Document Page Count: 10
• Document Creation Date: December 22, 2016
• Document Release Date: April 8, 2011
• Sequence Number: 11
• Publication Date: November 19, 1956
• Content Type: REPORT

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 PARTY RECOMMENDATIONS FOR DIRECTIVES ON
CZECHOSLOVAK SECOND FIVE-YEAR PLAN
[Comment: The following is the full text of an article published
in Zahranicni Obchod (Foreign Trade), No 5, May 1956, issued by the
Czechoslovak Ministry of Foreign Trade in Prague.]
The Central Committee of the ASV (Communist Party of Czechoslovakia) has
published its recommendations for the directives for-the preparation of the
Se~Cond Five 'ear Plan Funning from 1956 through 1960.= These are to be considered
in detail by the Czechoslovak public, including both $SC members and nonmembers.
The recommendations, which are the result of many months of work by the State
Planning Office, yt~he ministries, the government, and... the Politburo of the. Central
Committee of the KSC, and which are based on the practical experiences of,.plants,
JZDs (unified agricultural cooperatives) and other agencies of the economy, will
be considered and approved at the June [1956) conference of the X SC.
As stated in the introductory section of the recommendations, the basic
tasks of socialist industrialization were achieved between 1949 and 1953 [First
Five-Year Plan] by means of construction and reconstruction of industry and by
means of the emphasis placed on the development of heavy industry. At the end of
the First Five-Year Plan, Czechoslovakia was producing 2.3 times more than was
produced before World War II. The engineering industry, whose development was
one of the basic 'eatures and results of the First Five-Year Plan, was producing
almost four times more than in the prewar years. The socialist construction and
reconstruction of the national economy had a significant effect on all sectors
of social life. The Czechoslovak economy developed without crisis and unemploy-
ment, features which had accompanied capitalism. The power of the working class
increased while its technical and cultural level also improved. The importance
of this class in society increased, and its alliance with the farmers was
strengthened. Also, outstanding results were attained in overcoming the histori-
cal economic inequality of Slovakia and the Czech provinces.
During 1954 and 1955, attention was concentrated on elimination of the
deficiencies which had developed as a result of'lags in the development of the
fuel, power, and raw materials ba9e and in agricultural production. During the
last 2 years the production of consumer goods was substantially increased. This,
along with other successes in the national economy, permitted substantial increases
in the population's personal consumption through systematic retail price reductions
and increased wages and salaries of employees. Better results in agricultural
production, and particularly reductions in compulsory delivery quotas, increased
bul'k-buying prices of a number of agricultural products, and substantial re-
ductions in retail prices on industrial goods permitted.?a rapid increase in the
real income of farmers.
The* results achieved in economic and cultural development have permitted the
formulation of the goals for the Second Five-Year Plan; these are stated in the
recommendations as follows:
1. Completion of the development of the materials production base of social-
ism and achievement of the point at which, the socialist system will also have a de-
ciding position in the agricultural sector.
2. Guarantee of the rapid development of productive forces, thus contri-
'tmting to achievement of primacy for the socialist world system through pence-
ful competition with capitalism.
 3. Substantial improvement of the material and cultural livi.:;g standard
through higher real income and personal consumption, as well as through the grad-
uzl introduction of shorter work hours.
The achievement of these goals of the Second Five-Year Plan requires con-
tinued emphasis on the development of heavy industry, particularly its nucleus,
heavy engineering. It also requires continued increases in labor productivity
and strengthening of the defensive potential of the nation. Particular emphasis
must be given to the more rapid development of the fuel and raw materials bases.
The directives call for a substantialincrease in agricultural production and in
agricultural labor productivity. Among the primary tasks are the better and
more effective discovery and exploitation of the natural wealth of Czechoslovakia
and the continued industrialization of Slovakia.
Gross industrial production during the Second Five-Year Plan Is to be in-
creased by at least 50 percent. Of this increase, about 57 percent is tc occur
in the production of capital goods (Group A) and about 40 percent in production
of consumer goods (Group B).
In comparison with (selected] pre-World War II and post-World War II years,
production. of the most important industrial items is to increase as follows:
Power (in billion kilowatt-hours) -- 1929, 3.0; 1932-36 (average), 2.9;
193-, 4.1; 1948, 7.5; 1953, 12.4; 1955, 15.1; and 1960, 25.3, a 68-percent in-
crease over 1955 production.
Hard coal (kamenne uhli) (in million tons) -- 1929, 16.5; 1932-36 (average),
11.1; 1937, 16.7; 1948, 17.7; 1953, 20.3; 1955, 23.3; and 1960, 29.3, a 26-percent
increase over 1955 production.
Brown coal (hnede uhli) and l5gnite (in million tons) -- 1929, 22.5;
1932-36 (average), 15.4; 1937, 18.0; 1948, 23.6; 1953, 34.4; 1955, 38.8; and
1960, 57.7, a 49-percent increase over ?1955 production.
Crude iron (in million tons) -- 1929, 1.6; 1932-36 (average), 0.7; 1937,
1.7; 1948, 1.6; 1953, 1.6; 1955, 2.8; and 1960, 4.7, a 60-percent increase over
1955 production.
r
Raw steel (in million tons) -- 1929, 2.2; 1932-36 (average), 1.0; 1937, 2.3;
1513, 2.6; 1953, 4.4; 1955, 4.4; and 1960, 6.5, a 46-percent increase over 1955
production.
The directives call for a substantial increase in labor productivity and
greater economy" in industrial production. These tasks are to be achieved by more
efficient utilization of new technology in all industrial sectors; maximum con3er-
vation of fuel, power, metal, raw materials, and construction materials, partic-
ularly lumber; better exploitation of production capacities; and the reduction
of industrial production costs by a least 16 percent. Utilization of nuclear
power for useful purposes is the basis for further development or the productive
forces of the nation. During the Second Five-Year Plan conditions are to be
created for broader peaceful utilization of nuclear energy during the Third Five-
Year Plan. This will be carried out in close cooperation with the USSR and the
people's democratic nations. For this purpose, an experimental nuclear power
station with a capacity of at least 150 megawatts is to be put into operation.
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in the fuel industry, production of coal in the Ostrava-Karvina, Most, and
Sokolcvo basins will be emphasized, and the fuel base of Slovakia will be ex-
panded so that the mining of coal may satisfy the increasing requirements of
the Czechoslovak national economy and that coke coal (koksovatelne uhli) may
be supplied to the other people's democratic nations. Exploitation of the capac-
ities of hard-coal mines will increase 8 percent, while that of brown-coal mines
is to increase 8.6 percent. T ie-production capacity of. hard-coal, brown-coal, and lig-
nite mines will be increased by 29.7 million tons. The capacity of coal finish-
ing and grading plants is to increase by 16.7 million tow-, and that of briquette
plants by one million tons.
Construction of six new coke coal mines and four coal finishing plants will
be started in the Ostrava-Karvina Basin. In the Most Basin (including the
Chomutov area), construction of six new mines will begin,.and the grading plant
in Komorany will be completed. Construction of three new mines with a total capac-
ity of ill million tons`a grading plant with a capacity of 5 million tons, and two
briquette plants with a [combined?] capacity of one million tons will begin in
the Sokolovo Basin. In Ratiskovice, nine new mines will be opened, and four new
lignite and brown-coal mines are to be opened in Slovakia. Progressive methods
of coal mining and finishing are to be introduced. Production of coal gas and
natural gas is to increase 29 percent.
As stated previously, power production will increase 68.5 percent, while
the usable capacity of power plants will be increased by at least 75 percent.
Through completion of construction on the thermal power plants in Porici, Tisov,
and Komorany, and the Nosice, Skalke, Krpelany, and Sucany hydroelectric power
plants, power production capacities are to be increased by at least 2,300 mega-
watts. Construction will start on thermal power plants with a 300 megawatt
capacity in the Pardutice and Melnik areas and on the Lipovec and Madunice hydro-
electric power plants. Construction of the "Orlik" hydraulic project will con-
tinue, and its first equipment will be put into operation in 1961. Construction
of' the Hricov Mikscva Povazska Bystrica cascades (kaskady) on the Vah River
will be gradually developed, as will construction of the Kamyk and Ruzin hydrau-
lic projects. By 1959 at the latest, construction of the hydraulic project on
the Danube River will begin.
The directives call for a rapid increase in the production o!' crude iron,
steel particularly refined steel), and rolled goods. Mining of iron ore will
increase form 2.4 million tons in 1955 to 3.6 million tons in 1960. Also, six
new rolling mills with a total capacity of 1.3 million tons and one pipe mill
with a capacity of' 70,000 tons are to be built and put into operation. In
addition, construction is to begin on a continuous sheet metal rolling mill, a
nail and wire drawing mill, and a plant !'or production of cold-rolled strips.
The nonferrous metals industry is to increase mining and production of' copper,
lead, and zinc concentrates by 50 percent. Construction of the Slovak National
Uprising Plant (Zavod Slovenskeho nerodniho povstani) in Ziar nad Hronem is to
be completed, and equi.pment, for the production of aluminum oxide is to be put
into operation so that after 19j8 [Czechoslovakia own?] requirements may be
cov.vered. Production of aluminum is to double, while production of primary alumi-
num is to increase by 125 percent and reach 56,000 tons.
The engineering industry, which will be developed as the most important
industrial sector, in to Increase production of machinery and equipment by 63
perr-ent. [Planned) production of selected engineering products in 19,)O compares
with 19',5 production as follows-
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Electric motors for direct and alternating
current (in megawatts)
Gasoline engines (in number of items)
Equipment for the chemical industry
(in 1,000 tons)
Rolling mill equipment (in 1,000 tons)
[Diesel?1 engine locomtives (in number of
items)
Electric locomotives (in number of items)
Cement plant equipment (in 1,000 tons)
Metal-cuttin? tools (in 1,000 items)
1,314
799
33
11.1
15.7
Automatic and semiautomatic [metal-cutting
tools?] (in number of items)
Metal-forming tools
In number of items 4,970
In tons 16,490
Equipment for the textile industry
(in million crowns value)
Equipment for the food industry
(in million crowns value)
Trucks (in number of items)
Automobiles (in number of items)
Roller bearings (in million items)
Tractors (in number of items)
Agricultural implements (in million
crowns value)
Beet combines (in number of items)
Control, optical, laboratory, and
electrical measuring instrumentsy
office supplies; and medical and
dental equipment (in million crowns
value)
Moto:cycleR, motor bicycles, and [motor]
scooters 'in 1,000 items)
131
10,530
12, 500
14.25
12,300
2,300 75%
1,26o 58%
75 158%
41 165%
870 4 times
270 8.2 times
22 197%
27.3 74%
1,000 7.2 times
6,8oo 37%
34,800 111%
380 2.9 times
15,800 50%
55,000 4.4 times
28.5 2.0 times
28,300 2.3 times
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Product
1955
1960
Sewing machines
(in 1,000 items)
79
110 40%
Vacuum cleaners
(in 1,000 items)
122
220 80%
Cameras (in 1,000 items)
145
245 69%
Television sets (in 1,000 items)
17.2
220 12.8 times
Household refrigerators (in 1,000 items)
30
130 4.3 times
Home washing machines (in 1,000 items)
204
280 37%
During the Second Five-Year Plan the development of heavy engineering will
be emphasized in the engineering sector. Particular attention will be devoted
to the production of complex and highly technological machinery and equipment
for the development of the basic branches of [Czechoslovak] industry, and for
[the production of] machinery and equipment for complete industrial plants, to
be exported.
In accordance with the international division of labor [sic] between the
people's democratic nations, Czechoslovakia will particularly develop the fol-
lowing branches of heavy engineering: production of power equipment for hydro-
electric and thermal electric power plants, for heavy current electrical
engineering, and for a machinery for engineering; equipment for the metallurgical
industry, mines, and the chemical, construction, and food industries; production
of construction and highway machinery, railroad equipment, and hoisting and
transportation equipment; building of ships; production of turbocompressors,
heavy piston compressors, and pumps; and production of machinery and equipment
for the light industry.
The recommendations for the directives state that during the Second Five-
Year Plan attention is to be concentrated on the following fields- weak current
industry; and production of instruments, large-series and mase production of
7- and 12-ton trucks, V3S trucks, automobiles with approximately one-liter cylin-
der capacity (essentially their product-ton should be so prepared that after 1960
it will be possible to produce 90,000-100,000 people's automobiles annually), trac-
tors. agricultural implements, roller bearings, and new high-quality metal con-&
Sumer goods.
The development of the chemical industry, and important basis for the tech-
nological progress of the entire national economy, will be accelerated, and the
development of heavy basic chemistry will be emphasized.
Production of basic products of the chemical industry will increase during
the Second Five-Year Plan as shown by the following data for 1955 and 1960:
Product
1955
1960
Increase
Fuels (in million tons)
0.8
1.7
110%
Sulfuric acid (in 1,000 tons)
384
560.0
46%
Nitrogen fertilizers
(in 1,000
tons of nitrogen)
(0.5
141.0
1;3%
Phosphate fertilizers
(in 1,000
tons o P?O,_ )
913. `~
1.56. 5
59111
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1955 1960
Pol.,-vinylchloride (in 1,000 tons) 3 9.0
Synthetic and regenerated fibers (in
1,000 tons) 49 66.6 36%
Synthetic fibers (in 1,000 tons) 0.9 3.2 3.5 times
Paper (in 1,000 tons) 345 437 27%
The rapid and economical. construction of plants for the production of syn-
thetic India rubber is one of the most important tasks assigned by the directives
for the Second Five-Year Plan. Construction of a plant for production of heavy
water and uranium will begin. Production of dyes and processing supplies for the
textile industry will be increased, their quality will be improved, and their
variety expanded.
In the construction materials industry, production of materials which will
permit the industrialization of the construction sector will be primarily empha-
sized. This will particularly include light construction materials, special mor-
tars, unfired masonry materials, and other products. Production of basic prod-
ucts in 1955 and planned 1960 production are as follows:
Product
1955
1960
Increase
Cetient
(in 1,000 tons)
2,900
4,520
56%
Lime (in 1,000 tons)
1,545
2,256
46%
Fired roofing tile (in millon sq m)
Bricks (in million brick units)
8.15 17.10 2.1 times
1,670 2,724 63%
Construction panels, total
(in 1,000 cu m)
Flat glass
(in million sq m)
Ceramics for medical equipment
(in 1,000 tons)
26.5 26%
Plantswith 'annual?] capacities of 1,414,000 tons of cement, 390,000 tons
of lime, 850,000 square meters of building panels, 860,000 prestressed concrete
railroad ties, 130,000 [prestressed utility?] poles, and 2,330,000 square meters
of [structural] facing materials will be placed into operation [during the
Second Five-Year Plan1.
The woodworktng and paper industries will make the consumption of timber
mere economical and will expand production of materials to replace wood. This
will be accomplished primarily through expansion of the industrial processing of
wood waste. Continuous operation will be instituted in all paper mills, primarily
in those where paper manufacture is combined with cellulose production. Also,
production of high-quality paper for the photographic industry is to be mastered.
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During the Second Five-Year Plan, the light industry is to ensure the con-
stant satisfaction of consumer demands through adequate production of a wide
variety of high-quality consumer items. This goal is to be achieved primarily
through better processing of raw materials and more efficient finishing.
Figures for 19'1,5 and 1960 and the increase in the production of important
products by light industry and the food industry are given in the following table.
Product
1955
1960
Increase (~E,)
Cotton fabrics (in million m)
340
439
29
Silk fabrics (in million m)
51
60.6
19
Linen and semilinen fabrics (in million m)
55.2
65.7
19
Woolen fabrics (in million m)
39.1+
47.2
20
Knitted underwear (in million items)
32.9
42.1
2
Knitted outer garments (in million items)
31.4
44.6
42
Footwear (in million pr)
62.9
76.1
21
Meat (in 1,000 tons)
344
457.5
33
Raw lard (in 1,000 tons)
43.3
57.5
33
Milk for drinking (in million liters)
863
1,024
19
Butter (in 1,000 tons)
43.2
69.7
61
Edible vegetable fats (in 1,000 tons)
91.1?
116.5
28
Soap (in 1,000 tons)
40.2
5,.5
3e
Sugar (in 1,000 tons)
656
99l.T.
51
The level of industrial production in 1955 [sic] was computed on the basis
of the percentage increase shown in the cases of individual products.
Amc-ig the tasks of light industry is the achievement of world primacy in
the production o" glass. This is to be accomplished primarily through greater
creativeness and better design of products, improvement of the quality of refined
glass, and sul;atantial shortening of the period of delivery.
In a;'riculLure, the primary task of the Second Five-Year Plan is the system-
atic iss"rance of the material, organizational, and political conditions required
for b6rengthening and developing the socialist agricultural program so that, a~onz
with continual increases in agricultural production, JZDs and state farms may
operate a contioliing majority [of the nation's agricultural land.] The total
volume of agricultural production is to increase by approximately 30 percent, with
a more rapid increase in livestock production. Production of the main agricultural
products is to increase as follows (in percent). cereal grains, 22; [livestock]
feed :;rains, 40, including corn, 126; sugar beets, 11; oleaginous crops, 211;
potatoes, ;2; hops, 21; slaughter cattle, 3`3; slaughter hogs, 35; milk, 46;
F`r'; 5, 21; and wool, 36.
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The mechanization of agriculture will be further increased with the delivery
of 36,300 tractors, 8,300 grain combines, 7,100 potato combines, 3,900 beet com-
bines, 3,400 corn combines, 5,800 silage combines u,iu 4u0 hop combines.
The directives demand that the forestry sector devote greater attention to
the nation's timber wealth and increase the production capacity of the forests,
as well as enhance their water, economic, and climatic functions, which are now
being hampered by excessive timber cutting. The cutting of ti&'er is to be grad-
::ally -educed so that in 1960 it will be 20 percent lower than in 1955. (During
?ne second Five-Year Plan] 45,000 hectares of land are to be afforested.
The technical bases of tue transportation sector are to be further modernized
and expanded, the operations of all branches of the sector are to be substantially
improved, and safety measures are to receive greater emphasis. The volume of
transportation (other than plant transportation), is to increase by 44 percent
(in tons). Tne assurance of rail transportation of coal from the North-Bohemian
and Sokolovo Brown Coal Basins must be regarded as an extraordinarily important
task. The volume of rail transportation of freight is to increase by 35 percent
(in ton-kilometers), and 750 more kilometers of railroad lines are to be electri-
fied. Some 440 diesel locomotives with capacities of up to 1,200 horsepower, 2,100
modern passenger coaches, and 36,000 freight cars are to be added. The volume
of highway transportation is to increase 23-25 percent (in ton-kilometers), and
that of water transportation is to increase 25 percent. Airline transportation of
passengers is to increase 13 percent, and air transportation of freight and mail
is to increase 66 percent.
The total volume of investments in the period 1956-1960 was set
at
152.6
billion crowns (in terms of prices in effect on 1 July 1955). This
is
61.5 per-
cent more than in the period 1951-1955, when 94.4 billion crowns was
invested.
The major task of investment construction is the development of the
and raw materials base, and of agriculture.
fuel,
power,
Along with the increase in production, the number of workers in the national
economy is to increase 7.9 percent. In the distribution of manpower, the primary
task is the guarantee of an adequate labor force for mines and the construction
enterprises.
The national I'ome is to increase by at lease 48 percent, and the real
wages of workers and employees are to increase by about 30 percent.
The continued industrialization of Slovakia is ensured by an increase of at
least 61.5 percent in industrial production [in Slovakia?]. Industrial produc-
tion in the main sectors is to increase as follows; metallurgy, 58.6 percent;
chemical industry, s9 percent; light industry, 37 percent; food industry, 49.5
percent; and engineering, 2 times.
Particular attention will be devoted to the development of Slovakia's power,
fuel, and raw-materials bases, which will provide the prerequisites for further
industrial development.
The party's recommendations conclude as follows: "The Czechoslovak people
have adequate prerequisites for the fulfillment of the Second Five-Year Plan.
r?rtternal cooperation with the USSR and the people's democratic nations has reached
n new high point, specifically in regard to the coordination of the basic aspects
of national economic plans, and this cooperation will be intensified. Czechoslo-
?.oukia is developing peaceful contacts with all nations which desire to trade on
the basis of mutual convenience, and these contacts will continue to be ex-
panded.
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 "The Czechoslovak people, armed with the experiences gained in the building
of socialism thus far, and strengthened by the new experiences from the 20th
Congress of the CPSU and by the prospects of peaceful development, will fulfill
the tasks of the Second Five-Year Plan and will exert all their energy for the
final victory of Communism in our nation."
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