CHANGES IN BULGARIAN INDUSTRY CAUSED BY COMMUNIST CONTROL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80-00809A000500290193-4
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 27, 2016
• Document Release Date: March 8, 2013
• Sequence Number: 193
• Publication Date: December 17, 1953
• Content Type: REPORT

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Declassified in Part - Sanitized Copy Approved for Release 2013/03/08: CIA-RDP80-00809A000500290193-4
COUNTRY Bulgaria
SUBJECT
U.S. officials Only
1
LENTRAL INTELLIGENCE AGENCY
FORMATION REPORT
Changes in Bulgarian Industry Caused by Communist Contr
Sit DOCUI9E1, COu'ArOol INICUSISTO goo ?INICT 046 irotE oo?ToDor?S Gift.. $I
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1..,10% OP I'S CO ,,,,,, TO HIOECEI?T voorturmo?rEco ro'orsoos
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THIS IS UNCYALUMW INFORMATION
DATE DISTRII.
NO. OF PAGES.-3
NO. OF ENCLS.
SUPP. TO
REPORT NO
Dec 1953
1.
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"Bulgarian industry was developed during the last 20 or 30 years 1 mai1 ly because
of the persistence, thrift and economy of Bulgarian industrialists. It was based
not so much on capital as on labor.
2. At the time of the Communist coup co 9 September 44, Bulgarian industry was on
quite a high level. It had already passed the preliminary stage of1the petit-
bourgeois way of think ng and became concentrated into, a small number of in-
dustrial families. II was hereditary and was graduallY enlarged byl successive
generations. J
,
3 "The most popular form was Corporation with stocks concetrated in the hands of
members of one family.; The industrial families produeed their own aanagerial
cadres, both in the technical and administration fields, by cendini their some
abroad to study at high technical schools and get the necessary practice. Those
specialists educated abroad, gave Bulgarian industry its Idest-EuroPean character,
.,,looth in administratio7 and in organization of labor in the respectijve industries.
i
4. "During the last years before the 9 September 44 coup the majority of machines
used in industry verel replaced by new ones imported from Czech-
oslovakia and Hungary, and industrial output at that time could well compete with
Vest European industry both in quality of goods and quantity whichIcompletely satiofied'
internal. needs (of course within the branches of industry which existed in Bulgaria).
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5. "During the same perilod the following branches of industry were developed:
! ;
Agricultural IProducts Processing Industry: flour mills, canned food,
and alcohol producing plants, ,
Textile Industry: spinning and textile cotton industry, spinning and
textile wool industry, spinning and textile silk
industry,
Metal Industry, although only for the production of machines used
U.41 ciAll9rciiengilliNri
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CONFIDENTI/
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SECuRID INFORM
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DISTRIBUTION 4 STATE ARMY NAVY
A IR
Fel
ORR EV
This report is for the use within the USA of the Intelligence components of the Departments or
Agencies indicated above. It is not to he transmitted overseas without the concurrence of the
originating office through ihe Assistant Director of thr Office of Collection and Dissemination, CIA.
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US OFFICIALS 07::1"
COUFIDEVTIAL
SECURITY II;TO21,10
2.
Limber Processing Industry,
Tobacco industry (mainly the handling and preparation of raw material)
Mining Industry,
Leather Industry, etc.
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6. "Industrial enterprises in Bulgaria had a sound foredation and worked main.e with
their owa capital. only a small percentage used the state or cooperative loan in-
stitutions' capital. The participation of foreign capital in industry was rather
small : There was a tendency, both on the part of the government and industrialists to
invest as little fereign rpital as possible.
7. "The Bulgarian indLstry mainly used Bulgarian raw materials
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'There was no workers' class in Bulgaria as such. The Bulgarian worker was a
relatively independent person who always had other, additional incomes. Only a
very Small number of workers'lived exclusively on their earnings in industry. The
relations between wOrkersand employers were full of loyalty and often friendly.
flights and duties of employers and employees were regulated by a special bill on
compulsory collective work agreements. The execution of agreements was controlled
on the part of workers bylworkers' syndicates and on the part of employers by the
head and branches organizations of industrialists rsic-,/ Apart from that there
were special labor inspectors who, on behalf of the state, controlled both the
execution of agreements.aad the observation of social legislation. On finding
even the Ismallest offences in this respect they made reports and the guiltyewere
prosecuted and punished accordingly. The disputes between workers and management
were dealt with by a special Administrative Court which, by tradition, was inclined
to take the side of, the weaker worker.
9. social legialatioe provided the worker with the following rights: insurance
against accident, illness;. unemployment and old age; free medical care at hame,
'in hospitals and inihealth resorts; 47-hour work week; 14 days of paid holidays
per year; 36 hours Of Sunday rest; all church holidays free from wqrk; proper worker
protection during work; a high standard of hygiene in places of work; worker over-
ails,' etc.
I
"The worker had a minimum wage guaranteed :y the state and calculated for a family
consisting of threeperso.s.
11. "Al'ter 9 September 44 efforts were directed toward the economic liquidation of
industrialists which resulted in 23 i)ec 47 in the total nationalization r the
industry. At that time planning was introduced in industry, ana every industrial
enterprise received orders stating in advance what kind and type of products it
must Make. Until that date production had been decided upon according to the needs
of th market and consumers likings, now everything was to be produced according
to orderd of the State Planning Commission.
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12. "-e;seh industrial enterprise reccives a yearly production plan, which must be very
strictly fulfilled. In this way production was greatly simplified and curbed. One
can find now /-19527 on 1he market very few types of articles, and thus people have
,
to wearthe same clothing, use the same tools, etc. They have no choice.
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13. "Very soon raw materials began to be scarce. There were no imports, old reserves
were exhausted and Soon industry had to use the maximum possible amount of scrap.
This, of couree, resulted in considerably lowering the quality of goods.
15.
g Declassified
"Because o. the piece wonl
get Lip' much as possible ot
wear dut, and yet (lees no
In addition, the worker c
work.
'Milo formerly each
its owner to enleree
Is crier to make the
various bodice,. rho
in Part-Sanitized Copy Approved
system introduced _generally in?industry, the worker tries to
t of the macnine. This in turn causes machines L.0 quickly
increase production because raw material is of poor quality.
ices to work tired and in a bad mood and doesn't care about
industrial enterprise had its own resources and it was up to
them .o meet production needs, it is absolutely impossible now.
smallest change or improvement a special permit is needed from
whole procedure is greatly complicated and slew, and in addition
US OFFlCI.J. 017.Y
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no present manag-rial apparatus 03:enterprises is for the most parf.luncrenareu
for its
?
16.
"The state and the Party are ;trying to create workers' class. Old wer::ors were
deprived of their former economic independence, and new workers from the country-
side were hired. Gradually, all former zocial benefits were taken away from Workers
under the pretext that from then on they became 'owners' of enterprises. '2he )13-
hour Working week was introduced but the workers are compelled to do additional
work,,,often unpaid, under various pretexts. Work norms based on the eutput or
shockworkers were introduced, These norms are usually beyond the capabilities
of the average worker. Formerly, one work day pay was enough to maintain a three
person family, now it suffices for one person only, at the maximum."
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US OFFICIALS ONLY
CONFIDEUTIAL
SECURITY II7ORMATIO1i
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npdassified in Part - Sanitized Copy Approved for Release 2013/03/08 : CIA-RDP80-00809A000500290193-4