1. EFFECTS OF WESTERN EMBARGO 2. WESTERN FIRMS DEALING WITH POLAND 3. TRADE RELATIONS WITH OTHER COUNTRIES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00046R000300140011-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 6
• Document Creation Date: December 22, 2016
• Document Release Date: June 11, 2009
• Sequence Number: 11
• Publication Date: December 30, 1953
• Content Type: REPORT

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CONFIDENTIAL
CbUNTRY Poland
SUBJECT 1. Effects of Western Embargo
2. Western Firms Dealing with Poland
____ _3?. Trade Relations with Other Countries
PLACE ACQUIRED
THIS IS UNEVALUATED INFORMATION
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Effects of Western Embargo
1. Although the largest volume of trade was with the USSR and the Satel-
lite countries, the Polish Central Offices for Export and Import
endeavored to trade with capitalistic countries in order to acquire 25X1
foreign exchange needed for the purchase of goods'and the mall atenanc~
of Polish diplomatic and commercial missions broad
Ithe embargo has had an adverse effect and has
caused delays in building up industry in Iron Curtain countries.
2. There was an acute shortage of nonferrous metals (wolfram, cobalt,
vanadium9 iridium, copper, and nickel) directly caused by Western
restrictions. Poland tried by all means to buy these metals abroad,
even in small quantities. After the 'mbargo by the West on sales of
strategic materials to the Eastern.Bloc, Polish representatives in
Western countries resorted to clandestine purchases of needed metals.
Often shipments of 20 to 30 lb. were sent, by diplomatic pouch to
Poland. Critical materials were also obtained, though not in suffi-
cient quantities, through the aid of foreign firms which dealt with
Poland and which had been approved by the Ministry of Foreign Trade
as politically reliable. These firms were tied in with the local
Communist parties. Negotiations abroad were done through the Polish
commercial attachesi who were in contact with the firms and with pro-
Communist persons.
Q W1I3EbiTILL.
REPORT
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DATE DISTR. 30 Dec. 1953
NO. OF PAGES 6
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CONFIDENTIAL
Polish heavy industry and that the completion of the Nowa Huta foundry
near Krakow and the cement factory at Wierzbica. N 50-21, E 23-L7
were both delayed because of a lack of such materials. The delay in
completion of these two factories was perhaps as long as a year'each.
Other shortages were- iron ore, pyrites, precision instruments,
rubber, wool, machine oils, dyes, asbestos, graphite, machine parts,
raw hides (used for making leather goods for the Army), chemicals and
pharmaceuticals, cotton, aluminum, potassium salts, kaolin, vaseline,
gasoline, asphalt, jute, ,and cement. In the spring of 1952 there was.
a shortage of sugar and in April of that year rationing was introduced.
In the pharmaceutical line the greatest shortages were of penicillin,
.streptomycin, vitamins (especially Vitamin B), and codeine. 25X1
a ac or refractory materials to an extent to have seriously affected
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there was
the specific materials which should be strictly controlled by
5.
ferrous metals, especially copper and nickel, precis strume s,25X1
machinery and machine parts, machine of
dyes and finally Control of25X1
refractory materials and iron a one would most seriously
affect the Polish heavy industries.
the Western nations are in the first place refractory materials, non-
erals were listed on a secret list which contained about 16 items,
y ug by e Polish Ministry of Foreign Trade. Those min-
minerals were 25X1
With respect to Polish industry the entire industry
is organized on a
in a short eriod
the USSR wants Poland to be dependent upon her.
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Trade. Relations with Other Countries
8. There was close cooperation between Poland and Czechoslovakia with
respect to economic development. There was a Czechoslovak mission
in Warsaw attached to the Czechoslovak Embassy. This office was
called Biuro Radcy Handlowego (Trade Councilor's Office). Poland
had its counterpart office in Prague at the Polish Embassy; about
50 persons were'attached to the staff in Prague. These offices
supervised the execution of the trade pact with respect to all arti-
ales exchanged between the two countries. Contracts for goods which
Poland bought were 'concluded in Prague and those which Czechoslovakia
bought were concluded in Warsaw. The over-all economic exchange was
executed on a higher level through the PKPG in cooperation with the
Politburr0. respective departments.
An agreement was made for 1952 through Minex to export 20,000 tn.
.of gypsum to Czechoslovakia at 18 rubles per ton for the production
of cement at the Czech.cement and lime factory (Ceske Cementarny a
Vapenice) at Kralov Dvur and Beroun railroad stations. The Czechs
were eager, to import anhydrites from Poland for the production of
sulphuric acid. They had planned to import 50,000 to 60,000 tn. of
gypsum stone in 1953, 120,000 tn.in 1954, and 200,000 tn, in 1955
s..
and had asked that 40% of these shipments be made up of anhydrite
the Czechs were building a large factory
for the production of sulphuric acid and they needed anhydrites25X1
(dead gypsum). Poland was to import 10,000 tn. of kaolin from
Czechoslovakia in 1952 at $16 to $18 a ton, In 1951 Poland had
imported 15,000 tn. of kaolin in addition to burnt'magnesite, "Bata"
shoes, shirts, and machinery for the Polish "Odra" cement factory."
.10. In 1951 porcelain electric insulators were exported from Poland
through Minex to Rumania for about 80,000 rubles on a clearing basis
against import of crude oil, oil products, and gasoline from Rumani25X1
The price of the gypsum to be exported by Poland was $3.50
pew. Further agreement called for the export of 40 to 50 tn.
of calcined magnesite at $38 per ton FOB, and -for of coal.
In 1951 60 tn, of caustic magnesite was exported at $38 25X1
per ton FOB Polish ports. This export was not rov a or in the
ex ort lan
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~S-
124.
13 Poland had trade relations with China and was striving to increase 25X1
the volume of trade. Imports included tea, rice, cotton, jute and
wolfram. Some Polish-made dyes of poor quality, chemicals, machinery,
and iron pipes were exported. In 1951 most Polish ships were used
for transport to China and an average of one Polish ship a month
left Gdansk or Gdynia. (The ships were of 7,000 to 9,000 tn. eapa-
city.) After 1951 there were difficulties in'',maintaining regular
contact with China trade relations between 25X1
Poland and China wore v ng.
14.
15. Oil was imported from the USSR
Imported platinum from, the USSR.
in 1946-1947, 45 kg. were im or .e
Poland Plan '
Red phosphorus
was impor;ea rrom. the USSR n -1947. number of semi-finished
metal products, iron bars, rails, and sheet were exported to the
USSR.
16,. In 1951 Poland exported 5 tn. of Schlagg wool
(welna zuziowa) at $50 per ton. In the same year 2,000 tn. of 25X1
sandstone cylinders (two meter loan in diameter) for
sharponi g tools were exnnrtec7 Glass is also 25X1
addition) o dyes, were imported
17. Planned import from East Germany in 1952 included 120,000 metric
tn. of potassium salts with a Content of ahniit 1Ln Tr-n o'Zd m4n4rr %vA
ul kjuU i maximum or Al V + e U and 372 of Si0 25X1
In 19 the pr.c was 32 - 3 a ton. In 1951
Poland exported 600. tn. of raw magnesite to East Germany at 100
rubles per ton for the production of magnesite compounds. She also
exported brown coal, and electric power from the power station at
Zgerzelec.
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Polish Forein Trade Development
,. !lIU~R i~+i r I u kl lYl~ II +~+n ! i
19< Taking the index number of 100 for 1937, Polish foreign trade shows
the following development: in 1945 foreign trade was nine per cent
of trade in 19 7; in 1946 it rose to 34%; in 1947 to 70%; in 1948
to 130%; in 1949 to 155%; in 1950 to 161%; and in 1951 it reached
the figure of 209% of the 1937 figure.
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