Document Number (FOIA) /ESDN (CREST):
CIA-RDP67-00059A000400250009-1
Body:
-RDP67-00059AO00400250009-1
Approved For Release 2000/~6ftrr -GLA
1 October 1948
SUBJECT: Foreign Construction of Tankers for the USSR
1. A check of Lloyd's Register,, the Shipbuilders Council of Americaa
the American Bureau of Shipping, and the US Maritime Commission, as well as
the files of the Transportation Group, reveals no such construction of any
consequence underway in any shipyard outside the USSR. Furthermore, despite
negotiations with several European countries, the USSR has apparently boon
unable to negotiate any contracts of consequence.- Trade agreements with
Denmark and the Netherlands provide for potiation of contracts covering
nine tankers totaling 43,000 tons. However, should such contracts be
negotiated, which is doubtful, final delivery of the tankers will not take
place for several years.
2. The absence of tanker construction for Soviet account is of in-
terest, because the inability to move sufficient oil by water is doubtless
a matter of serious concern to the USSR. (As of 30 June 1948, the USSR, with
126,900 gross tons, ranked twelfth in world tanker fleets.)
3. The reluctance of foreign countries to undertake tanker construction
for the USSR is not surprising. Soviet contracts are frequently designed to
establish far-reaching economic ties with the Soviet Union, The USSR is
usually unwilling to furnish steel and other materials needed for ship con-
struction. The terms of payment, furthermore, often disregard the usual
arrangement for part payments at keel laying, launching, etc. In the case of
Italy, moreover, there is the fear that the USSR will attempt to avoid payment
by claiming the vessels as reparations. These and other reasons make it most
unlikely that the Soviet Union will acquire any significant amount of tanker
tonnage abroad,
4. No report has been received from Navy concerning the above subject.
Although it is believed that the Navy report will not change the foregoing
conclusions, if any essential information to the contrary is developed, it
will be made available upon receipt by CIA,.
Approved For Release 2000 6$ 23ETCIA-RDP67-00059AO00400250009-1