SOVIET PURCHASE OF TEXTILE PLANT FROM THE US

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01003A000900100001-0
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 7
• Document Creation Date: November 16, 2016
• Document Release Date: March 22, 2000
• Sequence Number: 1
• Publication Date: February 8, 1960
• Content Type: BRIEF

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CIA/RR,CB No. 60- 10
CONFIDENTIAL
Copy No.
8 February 1960
NOFORN
CURRENT SUPPORT BRIEF
SOVIET PURCHASE OF TEXTILE PLANT FROM THE US
OFFICE OF RESEARCH AND REPORTS
CENTRAL INTELLIGENCE AGENCY
This' report represents the immediate views of the
originating intelligence components of the Office
of Research and Reports. Comments are solicited.
This document contains information affecting the national defense of
the United States, within the meaning of the espionage laws, Title 18
USC, Sections 793 and 794, the transmission or revelation of which
in any manner to an unauthorized person is prohibited by law.
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 Approved For Release 2000/05/12 : CIA-RDP79T01003A000900100001-0
CONFIDENTIAL
SOVIET PURCHASE OF TEXTILE PLANT FROM THE US
As part of the current program to expand textile production,
the USSR has contracted with Intertex International, Incorporated
of New York for the purchase of almost $20 million worth of US
textile machinery. Included in the purchase are 21,000 spindles
for cotton and synthetics and 30,000 spindles for worsteds repre-
senting the latest American technological developments in this
field. The number of looms to be bought has not yet been reported.
Although the contract represents a large quantity of machinery,
unprecedented in US-USSR trade relations since World War II, the
plant itself will by no means be the largest textile plant in the
USSR. A cotton textile combine at Kamyshin in the Stalingrad area,
when fully built, will have ten times the spindle capacity of the
plant being equipped by Intertex. The Intertex plant is unique,
however, in that it will be capable of producing suiting fabrics--
its principal product--from cotton, wool, rayon, and synthetic
fibers, and from blends of these fibers.
The USSR apparently chose US textile machinery rather than
machinery from the UK or some other Western manufacturer for basi-
cally economic reasons. This machinery is more productive than
comparable UK models and this is believed to have been the deciding
factor, even outweighing lower UK prices and offers of credit.
Soviet officials, however, hoping to stimulate American business
interest in increased trade with the USSR, are attempting to portray
the deal as an indication of their willingness to grant special con-
cessions to US firms.
The contract was signed December 1959 between the Soviet trade
organization, Teckhmashimport, and Intertex. Intertex was founded
for the purpose of selling US textile machinery abroad and has been
selling machinery to the USSR on a lesser scale for some time.
Under this latest contract, machinery is to be shipped to the plant
site at Kalinin, north of Moscow, deliveries to be completed by
30 April 1961. Payment will be made in US dollars within 30 days
after delivery.
An additional $10 million is to be invested by the USSR in reno-
vating a building to house the machinery, installing the machinery,
and ptrrchasing additional equipment needed to complete operations.
Soviet negotiators are expected to sign an additional contract in
February permitting US personnel to make the installation.
As many as 40 US machinery firms may be involved in the trans-
action in one capacity or another although the majority of that
number will act as subcontractors with relatively minor roles in
the transaction; six firms will be major participants. Spinning
frames will be supplied by Saco-Lowell Company and the Whitin Com-
pany, looms by -the Crompton and Knowles Company, finishing equip-
ment by the.James Hunter Machine Company and the Rodney Hunt Machine
Company, Barber-Coleman will supply automatic spoolers and beaming
machines.
8 February 1960 CIA/RR CB 60- 10
Page 2
~OFIDENTIAL
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CONFIDENTIAL
Analyst:
8 February 1960 CIA/RR CB 60-10
Page 3
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 SECRET
TO. ApprovedlfNiRe1 Eiq/$&,/~1oigI-tfPcT1RTO~P"Wf q%,1-Q cI
FROM: Chief, Current Support Staff, ORR
of Current Support
FROM THE US 8 February 1960
(Title) (Date)
Brief
Please distribute the attached Current Support $= No. CB 60.10
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Brief
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77 - S/TF- 7ORR
78
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56 - M/CH/ORR 84-88
57 M/FM-ORR 89
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59-61 M/FP/ZSR 92
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64-67 - I/GM/ORR
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TO: Chief, Dissemination Branch, Support Staff, OCI
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Brief
SUBJECT: Distribution of Current Support a'ocKUM, No. CS 60-10
S 7!bruar" 1960
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Brief
Please distribute the attached Current Support 1091M No. C8 10 10
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PRES/OCI
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NSAL
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Attention:
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