JPRS 72243

15 November 1978

TRANSLATIONS ON EASTERN EUROPE

ECONOMIC AND INDUSTRIAL AFFAIRS

No. 1811

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JPRS 72243

15 November 19 78

TRANSLATIONS ON EASTERN EUROPE

ECONOMIC AND INDUSTRIAL AFFAIRS

No. 1811

CONTENTS PAGE

INTERNATIONAL AFFAIRS

Briefs

Czech Hop Pickers to USSR 1

BULGARIA

Government Decree Ensures Better Working Conditions in

Agriculture

(KOOPERATIVNO SELO, 4 Oct 78) 2

CZECHOSLOVAKIA

Importance of Machinery in CSSR Exports Noted

(Various sources, various dates) 13

Strougal Comments on Improvements, by Premysl

Strougal

Virius on Machinery Exports, by Miroslav Virius

Relocation of Railroad Tracks

(Jozef Hudec; HOSPODARSKE NOVINY, 14 Jul 78) 28

Criticism of Railroad Workers

(Ivan Salgovic; PRAVDA, 20 Sep 78) 32

Briefs

Slovene Parliamentary Delegation 35

Protocol With Italy 35

Fires in Czech Lands 35

a - [III - EE - 64]
CONTENTS (Continued)

EAST GERMANY

Mittag Interviewed on GDR-Austrian Trade Relations

(Guenter Mittag Interview; HORIZONT, 1 Oct 78)

Page

36

HUNGARY

Preserving Factories Short on Fruit, Vegetables

(MAGYAR HIRLAP, 29 Oct 78) Al

ROMANIA

Problems, Suggestions Arising From Net Production Experiment

(loan Olteanu; REVISTA DE STATISTICA, 3 Mar 78) 43

YUGOSLAVIA

Briefs

Housing Figures for 1977

Tourist Exchange With USSR

Tankers Built by Japanese Shipyard

48

48

49

- b -
INTERNATIONAL AFFAIRS

BRIEFS

CZECH HOP PICKERS TO USSR—More than 60 percent of the hop pickers produced

by the Agrostroj enterprise in Czechoslovakia are exported to the Soviet

Union. Every one of these Czech machines fulfills the work of 400 persons,

according to information from Brno. The machines are greatly valued in hop

growing regions of the Soviet Union. On the other hand, a Soviet professional periodical wrote some time ago that pickers from Czechoslovakia do not

satisfy the specific conditions of hop growing in the Soviet Union. The

Soviet Union is developing it's own machine as a consequence. [Text] [Bonn

DIE LANDWIRTSCHAFT DES OSTBLOCKS in German"Vol 26 No 3624, 4 Oct 78 p 4]

CSO: 2300
BULGARIA

GOVERNMENT DECREE ENSURES BETTER WORKING CONDITIONS IN AGRICULTURE

Sofia KOOPERATIVNO SELO in Bulgarian h Oct 78 pp 1, 2

[Decree of the Bulgarian Council of Ministers Governing the Stabilization

of the Labor Force in Agriculture, the Strengthening of the Inferior Production Units with Leadership and Executor Personnel and Expanding the

Participation of Youth in Agriculture]

[Text] Agriculture in Bulgaria, particularly after the April Plenum of the

BCP Central Committee (1956), has shown rapid and steady rates in its development. As a result of the consistently carried out policy of concentration, specialization and modernization of production, it has become

possible to introduce industrial technologies in a number of types of production, and to overcome certain of the essential differences between the

labor in agriculture in comparison with other sectors.

The great opportunities which have been created by the socialist transformation and development of agriculture in many regards are not fully utilized.

In certain regions of the nation, the migratory processes have occurred unevenly, and as a consequence of this a manpower shortage has appeared in

agriculture, particularly among the young personnel. The payment of individual categories of specialists and workers in the inferior production

units does not conform fully to the nature and complexity of the work performed by them. In many of the agroindustrial complexes [APK] the carrying

out of sociodomestic and cultural measures in accord with the requirements

of the modern way of life in the countryside has been forgotten.

For stabilizing manpower in agriculture, for strengthening the inferior

production units with leadership and workers and for broadening the participation of youth in agricultural production, the Council of Ministers decrees:

Article 1. (l) The Ministry of Agriculture and Food Industry [MZKhP], the

State Planning Committee, the Committee for Labor and Wages and with the

long-range and annual plans are to ensure complete conditions for stabilizing manpower in agriculture.
(2) The State Planning Committee, the Committee for Labor and Wages and the

MZKhP are to plan the necessary labor force for agriculture in accord with

the degree of mechanization, the introduction of industrial technology and

labor productivity norms,

(3) The State Planning Committee, the Committee for Labor and Wages and the

MZKhP prior to 30 October 1978 are to approve the Procedure for Improving

the Planning System for the Necessary Labor Force, Determining the Amount

of the Average Gross Wage and the Wage Fund for Agriculture.

Article 2. (l) The MZKhP and the executive committees of the corresponding

okrug people's councils [ONS] bear responsibility for providing the inferior

production units in agriculture with highly skilled leaders and workers,

for broadening the participation of youth in agricultural production, and

for stabilizing and efficiently utilizing manpower in agriculture.

(2) The MZKhP and .the corresponding okrug agriculture and food industry administrations, prior to the end of 1978, are to make an analysis of the

available and required labor resources in the agricultural organizations,

the branch farms, the production sections, farms and brigades, and are to

propose specific measures to the executive committees of the corresponding

ONS. for strengthening them with the necessary leadership and workers.

(3) The executive committees of the ONS, upon the proposal of the okrug

agriculture and food industry administrations, are to provide highly skilled

personnel which is rich in production and organizational experience for the

branch farms, the production sectors, farms and brigades, as well as experienced workers and employees as equipment operators and livestock raisers

in the agricultural organizations.

(U) The necessary personnel for strengthening the inferior production units

in agriculture are to be recruited predominantly from amont the best specialists of the administrations of the agricultural organizations, the

okrug agriculture and food industry administrations, the MZKhP,. as well as

from other departments and organizations.

(5) The Committee on Labor and Wages, the ministries and other departments,

upon the request of the MZKhP, are to reassign for agriculture in 1979 and

I98O at least 600 entineers who have completed the Ruse VIMESS [Higher Institute for Agricultural Machine Building, and Mechanization and Electrification of Agriculture] and which are working outside the system of the

National AgrOindustrial Complex.

(6) The'leaders of the agricultural organizations, the departments and

other institutions, upon the written request of the agricultural enterprises,

are to abrogate under Article 29, letter "k" of the Labor Code, the labor

contracts with workers who desire to go to work in agriculture.
(t) Under the procedure of the preceding paragraph, labor contracts may

also he abrogated with young specialists who have not completed the period

of their assigned work. The rights and duties of the specialists are kept

and their transfer to work in agriculture is considered as reassignment

under the established procedure. In these instances the ministries and

other departments whose system the young specialists are leaving in order

to transfer to work in agriculture are obliged to give agreement to their

reassignment.

Article 3. (l) The personnel which under the procedures of Paragraphs 3 and

and k of the preceding article go to work in the branch farms, the production sections, farms and brigades is paid a single remuneration amounting

to 1 year's gross wage received by them, and for equipment operators, up

to a year's wages under the condition that they assume the obligation to

work at least 5 years in the position assigned to them. The amounts are

to be paid from a specially created fund under the MZKhP. For this purpose, the State Planning Committee, the Ministry of Finances and the MZKhP

are to approve a directive prior to 30 December 1978. Those who leave

before the end of the contractual term as well as those dismissed because

of disciplinary reasons must repay the obtained amount in accord with the

unworked time.

(2) The leadership of the agricultural organizations, with the agreement

of the okrug agriculture and food industry administrations, may set a

higher salary for the corresponding higher positions for good-working

personnel which has shown the qualities of excellent production organizers

and technologists without changing the place of their employment within

the limits .of the set wage fund.

(3) The personnel sent into agriculture keeps its residence and the housing

occupied by it.

Article *4. Young persons who have begun working in agriculture prior to

induction for regular military service, for the period of service are paid

20 leva a month by the agricultural organizations where they work. The

collected amounts are paid under the condition that the young people return

to work in the corresponding agricultural organizations and assurie an obligation to work another 5 years. The money required for this pur rose is

provided from the economic effect and aid fund of the correspond ng agricultural organizations.

Article 5. For the accelerated introduction of scientific and technical

achievements and for providing specific aid in agriculture, scientific

workers, prominent specialists and highly skilled workers can be sent

temporarily or on mission from institutes, enterprises and institutions

to the agricultural organizations, branch farms, farms and brigades.

Article 6. The leaders of departments, institutions and organizations and

their divisions which violate Point 2 of Decision No 535 of the BCP Central

Central Committee and the Council of Ministers of 1973 are to be held
responsible by the bodies of the Committee for Labor and Wages under

Article 32 of the Law Governing Administrative Violations and Punishments.

Article 7. The basic monthly wages of the leaders, specialists and equipment operators of the branch farms, production sections, farms, brigades

and other production units in agriculture will be 30-^0 percent higher than

the salaries of the corresponding positions in the management of the APK,

with the basic monthly wage of the leaders of the branch farms exceeding

the salaries of the chairmen of the APK as set in the Unified Staff Table.

This also applies to the brigades leaders and farm leaders without a higher

and secondary education, but with great experience and good organizational

abilities.

The names of the positions, the specific amounts of payment, and the indicators and norms for categorizing are to be set by a directive of the

Committee for Labor and Wages, the Central Council of Bulgarian Trade

Unions and the MZKhP depending upon the specific production conditions.

The directive is to foresee a change in the specific percentage and corresponding amount and wages depending upon the contribution of the corresponding persons to improving the production and economic results and upon a

rise in its efficiency.

Article 8. (l) The MZKhP and the Central Committee of Workers from Agriculture and the Food Industry prior to the end of 1978 are to approve instructions for the agroindustrial, industrial-agrarian and scientific-production

complexes for the organization of labor and wages with the job-bonus system.

Particular attention is. to be paid to broadening the use of the job-bonus

system in using the natural resources (abandoned land, pastures and so

forth), the tending of animals and poultry, the working of small vegetable

gardens and orchards, as well as in types of production where under the

given conditions it is impossible to introduce industrial production methods.

(2) For those employed fn crop raising and livestock raising an additional

incentive remuneration is to be provided in kind or in value totaling up

to 30 percent of the above-planned production achieved by the individual

labor collectives.

Article 9. The MZKhP, the State Planning Committee, the Ministry of Public

Education and the Committee for Labor and Wages before the end of February

1979, on the basis of the established demand for agricultural personnel,

are to accept a program for training higher, secondary and executor agricultural personnel for "bhe period up to 1990, in paying special attention

to professions which are suitable for the use of female labor.

Article 10. (l) The Ministry of Public Education, together with the MZKhP,

are to make the necessary changes in the directives and plans for admitting

students, graduate students, auditors and students in the higher and

secondary scnools which train agricultural personnel.
(?) The higher and secondary agricultural schools are to admit predominantly young men and woinr-ti who 1 >;/ rnnl.r.'i.cl, (i..".:;nrno an oh 1 i j^at. i on to work in

an ugrtcul turn I organ i v.nl i on within the intern of the National Agroindustrial

Complex for at least 10 years.

(3) In admitting students and graduate students to agricultural schools,

preference is to be given to the children of employees in agricultural

production and to prominent specialists and leaders in the inferior production units.

(k) The ordinary scholarships 'are to be doubled which are granted under

contract by the agricultural organizations to the students in the higher

institutions of learning and technical schools and who conclude a contract

to work in agriculture.

Article 11. The MZKhP, the Committee on Labor and Wages and the Ministry

of Public Education, prior to 31 March 1979, are to optimize the network

of training units for the training of middle-level specialists and workers

for agriculture in the aim of more fully satisfying the needs for personnel

by profession and region.

Article 12. (l) The Ministry of Public Education, the Committee on Labor

and Wages and the MZKhP are to make the necessary changes in the content

of the training plans and programs of the higher and secondary schools and

the professional training centers which train personnel for agriculture,

in the aim of raising the general educational and professional-technical

training of the students and bringing this into accord with the requirements

of the socialist organization of labor and the needs of agriculture.

(2) The titles of agronomical engineer and zootechnical engineer will be

awarded to the persons who have completed agricultural schools under the

new training programs .

(3) The Ministry of Public Education, the MZKhP and the Ministry of Internal

Affairs are to provide the necessary conditions for the students in the

higher and specialized secondary agricultural schools to obtain training

and a driver's license for motor vehicles of the "T" and "S" categories.

The Ctate Planning Committee in the annual plans is to provide the necessary limits and numbers of agricultural machines and trucks for the agricultural schools and higher institutions of learning.

(h) The leaders of the agricultural organizations and their divisions are

to provide employment for the junior specialists and skilled workers who

have completed the corresponding schools and are trained for the sector.

The reassignment of this personnel for work in other sectors and activities

is permitted as an exception with the agreement of the corresponding agricultural organization and the okrug agriculture and food industry administration.
Article 13. The MZKhP;jointly with the Ministry of Public Education and

the Committee on Labor;and Wages prior to 30 June 1979 are to work out a

program for extending the coverage of specialists with a higher and secondary education in the forms of postdiploma training up to 1985 in the aim

of improving the skills of the agricultural personnel.

Article lk. (l) The State Planning Committee, the Ministry of Public Education, the Committee foi- Labor and Wages and the Ministry of Construction

and Building Materials^ upon the proposal of the MZKhP, are to approve a

program and provide funds for the accelerated construction of the appropriate physical plant for training specialists and skilled workers.

(2) The Ministry of Public Education jointly with the MZKhP before the end

of 1978, is to accept ä program for accelerated production and supply of

the secondary vocational-technical schools [SPTU] and the vocational training centers with specialized training equipment, aids and other things for

the needs of vocational training.

i ' ' Article 15. The Committee for Labor and Wages, the Ministry of Public Education' and the Central Council of Bulgarian Trade Unions, upon the proposal

of the MZKhP, prior to .31 March 1979, are to approve new names for the jobs

of persons employed in agriculture and these are to correspond to the

nature of their work 'and to' the new conditions related to the introduction

of modern equipment and production methods and the progressive organization

of production and labor.

Article l6. The MZKhP and the Ministry of Public Education are to approve

a norm.for land, equipment and animals for the secondary schools training

agricultural personnel. This norm is to be used for year-round production

training activities with a production and sales plan. The land.is to be

provided by the agricultural organizations and is excluded from their available holding's. .;'.-

Article IT- (l) The leaders of the agricultural organizations are to. give

preference to persons Who have completed technical schools and the SPTU in

assigning'them to the. branch farms, farms and brigades where the newest

production methods, equipment and organization of labor have been introduced.. The youth production brigades and farms which have been set up are

to be given preference1in allocating funds for the introduction of industrial technologies, for modernization and reconstruction, particularly in

livestock raising.

(2) The leaders of the agricultural organizations are to show constant concern for raising the authority and social recognition for the role of the

brigade leader,as the main figure in introducing the modern organization, of

labor.

(3). In the aim of attracting, retaining and acquiring organizational experience, persons who have completed agricultural technical schools can be

temporarily assigned' to the position of assistant brigade leaders for not
more than 1 year. After this time, with proven skilled training, they are

l.o he n.pprvi ntefl brigado leaders.

{k) The ministries and other departments, the ONS, the farms and the social

organizations are to undertake extensive organizational and political work

among the workers in the combines, enterprises, institutions and scientific

institutes for a decisive improvement in sponsorship work among the agricultural organizations, the branch farms, farms and brigades.

Article 18. On the basis of the Unified System for the Comprehensive serving of the public up to 1990, the executive committees of the ONS, the

MZKhP, the Committee for Culture and the Ministry of Public Education, with

the approval of the Komsomol Central Committee and the Central Council of

Bulgarian Trade Unions and the Central Council of the Bulgarian Union for

Physical Culture and Sports, before the end of 1978, are to approve a specific program for building the physical plant for youth and Pioneer activities up to 1990. The leadership of the conurbation systems, together with

the leaders of the agricultural organizations on their territory, each year

are to provide the necessary funds and organize the fulfillment of the program.

Article 19. (l) The MZKhP, the state and agricultural bodies and organizations are to take the necessary measures for sharply improving the use factor of the land, for converting agricultural equipment to two- and threeshift operation, for the ubiquitous introduction of standardized feeding

of livestock, and for improving the organization of labor and wages, in

most strictly observing the principles of economic and internal farm accountability in all production units. For this purpose the MZKhP with the aid of

the corresponding scientific institutions, before the end of 1978, is to

approve the following:

1. A unified procedure for introducing shift operations of the machines

as the basic and qualitatively new form of organization in utilizing all

the agricultural equipment;

2. A scientifically based system for improving the use factor of the land.

(2) The MZKhP, the ONS and the agricultural organizations are to make new

studies for converting agricultural equipment to shift operations and these

studies are to be incorporated as an inseparable part of the engineering

plans and counterplans for 1979•

(3) The Ministry of Transport and the MZKhP are to work out schedules for

introducing shift conditions for the operation of transport in accord with

the specific conditions.

Article 20. The MZKhP together with the State Planning Committee, prior

to the end of 1978, are to propose for approval by the Council of Ministers

a long-range program for the production and delivery of the necessary
machines and spare parts for the complete making up of the available heavyduty tractors and integrated production lines for crop and livestock raising. Particular attention is to be paid to rapidly increasing the degree

of mechanization in raising the labor-intensive crops in mountainous and

semimountainous regions'.

Article 21. The State Planning Committee and the MZKhP, on the basis of

the engineering plans and counterplans for 1979 and 1980 and for the following Five-Year Plan, are

1 to provide the necessary funds and limits for the

following: j

1. The supplying of the agricultural organizations and enterprises with

sufficiently highly productive machines, production transport, attached

implements and complete! production lines for the accelerated introduction

of industrial methods ahd technology in crop and livestock raising on the

basis of full mechanization and automation, in paying particular attention

to rapidly increasing the degree of mechanization in raising labor-intensive

crops, as well as in cattle and sheep raising.

2. Domestic buildings ,| proper hygiene, public amenities., water supply and

electrification of the farmyards and farms, the building of machine yards

for the industrial production brigades, and the improvement of labor safety

and medical services in1 the.countryside, as well as- other measures which

create conditions for improving female .labor.

3. The providing of the required convenient and inexpensive motor transport for carrying agricultural workers from population points to the place

of employment and back.1 For this purpose the MZKhP and the Ministry of

Transport,'before the end of April 1979, are to introduce the corresponding

program for approval by the Council of Ministers.

h. The construction of: the own housing of the agricultural organizations

and branch farms for the needs of the agricultural workers, as well as the

money for purchasing free housing in the villages.

Article 22. The MZKhP and the leaders of the agricultural organizations,

before the end of 1978»;are to create the necessary conditions for converting all the livestock raisers and equipment operators to a 5-day work week

in 1979, according to the Directive for the Application of Rational Conditions and Schedules, in| considering the specific working conditions in

agriculture. | '

Article 23. The State Planning.Committee, the Ministry of Domestic Trade

and. Services, the Ministry of Light Industry, the other economic ministries,

the Central Cooperative1 Union and the executive committees of the corresponding ONS., with the approval of the MZKhP, before the end of March 1979,

are to propose a program in accord with the General Plan for the Concentration and Specialization for elucidating the industrial activities on the

territory of the agricultural organizations where predominantly the free

female labor force can be employed in individual periods.
Article 2k. (l) In the aim of eliminating the essential differences between

labor in agriculture and industry, for each branch farm a social program is

to be worked out for the development of the labor collectives. This is to

encompass the opening up of boarding schools, nurseries and creches, public

kitchens and dining rooms. The existing nurseries in the villages are to

be converted into permanently operating, and before the end of 1980, 300

new children's institutions are to be built. The social program for

children's institutions, the dormitories, student dining rooms and others

are to be worked out by the okrug agriculture and food industry administrations, the public education directorates and the farm organizations.

(2) In the future in designing new projects in agriculture, without fail

provision must be made for building the necessary rooms and facilities

for social, domestic, cultural and public amenity measures for the labor

collectives.

(3) The State Planning Committee, the Ministry of Domestic Trade and Services,

the Central Cooperative Union and the executive committees of the ONS are to

plan the necessary food products for the needs of the public dining rooms of

the agricultural organizations from their own production and market stocks.

(h) The Ministry of Light Industry, the Ministry of Domestic Trade and

Services and the Central Cooperative Union are to provide the necessary

materials and manufacturing of work clothes for agricultural workers according to the models and orders made by the MZKhP.

Article 25. The executive committees of the people's councils are to give

preference in allocating land in the corresponding population points for

building housing for specialists, equipment operators and livestock raisers.

Article 26. Persons employed in sheep, cattle and hog raising, under the

condition that they will work continuously for at least 10 years in these

subsectors, are to be sold cars without a preliminary downpayment under

the procedure established by the MZKhP and the Ministry of Domestic Trade

and Services. Cars will be sold under the same procedure to young men and

women who have won orders (under the age of 30) who have achieved high results in the other subsectors of agriculture.

Article 27. The Ministry of Public Education and the executive committees

of the okrug and obshtina people's councils are to give preference in

assigning places in boarding schools, nurseries and creches for accommodating the children of equipment operators, livestock raisers and young

families engaged in agricultural production.

Article 28. (l) The Committee on the Unified System of Social Information,

with the agreement of the MZKhP, in an annual report of the National Agroindustrial Complex is to provide information on the number of persons employed in agriculture by subsectors, age, sex and skill.

10
(2) In order to provide the more effective use of the labor of the brigade

leaders (students, pupils, white collar workers and so forth) in harvesting

and processing agricultural products, the Ministry of Public Education, the

Committee for Labor and Wages and the MZKhP, with the approval of the Komsomol Central Committee, before the end of March 1979, are to issue instructions for improving the current procedure for their labor participation.

For this purpose the Committee on the Unified System of Social Information

is to improve the system for reporting on brigadier labor.

Article 29. (l). The Committee for Culture, prior to the end of 1978, is to

approve a program for a decisive improvement in the work of depicting life

•in the countryside, raising the social prestige of the agricultural professions, and for enriching and diversifying cultural life in the conurbation

systems.

(2) The National Complex for Artistic Creativity, Cultural Activities and

Mass Information Media, before the end of 1978, is to take measures for

decisively improving the work of the mass information media in depicting

the urgent problems and lasting victories of agriculture. In the program

particular attention is to be given to the following: Improving the social

prestige of the professions in the sector, the spiritual appearance of the

builders of the modern Bulgarian countryside; increasing first-run films

in the rural movie network and reducing the time for the. arrival' of the

films in the countryside. There is to be an increase in the time allocated

by radio and television to the problems of agriculture and the Bulgarian

countryside as well as on the role and place of youth in their further

development.

(3) The activities of the artistic and creative intelligentsia and the creative unions are to be more decisively directed toward creating significant

works of literature and art on the modern Bulgarian countryside, as well- as

on the life, labor and everyday living of the workers and youth in agriculture. Amateur artistic activities are to be more widely developed among

the rural youth. The folk creativity and the spiritual values of the rural

population are to be enriched and developed. Regular visits by dramatic,

musical, touring and other groups are to be increased.

(U) In the weekly radio and television programs, 1 hour is to be set aside

for organizing permanent courses for improving professional and technical

training of the leadership and workers in agriculture. For this purpose

prominent scientists,.specialists and production pacesetters are to be used

as lecturers. The MZKhP and the Committee for Culture each year are to

approve a subject plan for carrying out the training.

Article 30,. The State Planning Committee, the Ministry of Finances and

the Committee on Labor and Wages, before creating the conditions for realizing and effect from the application of this decree, in the 1979 and 1980

plans of the MZKhP are to provide the necessary funds for stabilizing the

labor force in agriculture..

11
Transitional and Concluding Provisions

§1. The Regulation for the Categorizing of Labor in Retiring on Pension

is to be amended and supplemented (DURZHAVEN VESTNIK, No 102 of 1967,

amended in No 97 of 1969, No 67 of 1972, No 7, U6 and 6k of 3 975) as

follows:

1. In point 66, the words "transitional categories of labor" are to be

replaced by the words "other sections."

2. After Section 3, a new Section k is to be created with the following

wording:

"Section h.

"66a. Equipment operators in agriculture and workers in cattle, sheep and

hog raising may retire with 20 years employment and an age of 60 years

for men and 55 years for women."

§2; (l) In Article 23 of the Decree No 5 of the BCP Central Committee,

the Council of Ministers and the Central Council of Bulgarian Trade Unions

of 1 February 1977 (DURZHAVEN VESTNIK, No 19 of 1977, amended and supplemented in No 96 of 1977), the following amendments and supplements are to

be made:

1. In Paragraph 3 at the end the words are to be added "workers employed

in cattle, sheep and hog raising";

2., In Paragraph h the words "sheep herders and shepherds" are to be omitted.

(2) The length of employment acquired on a cooperative farm by a cooperative member and recognized .as the length of employment for retiring on

pension under the Pension Law is also counted as the length of employment

under Part II of the Labor Code.

§3. In Article 63, point 6 of the Directive Governing Additional Labor

Remuneration for Unfavorable and Other Specific Working Conditions (DURZHAVEN

VESTNIK, No 19 of 1977, amended and supplemented in No 96 of 1977), the

words "milkmaids of cows and heifers" are to be replaced by the words

"workers in livestock raising."

§lt. This decree comes into force on 1 January 1979 and is to be applied in

the agricultural organizations regardless of their departmental affiliation.

Sofia, 3 October 1978

10272

CSO: 2200

12
CZECHOSLOVAKIA

IMPORTANCE OF MACHINERY IN CSSR EXPORTS NOTED

Strougal Comments on Improvements

Prague ZAHRANICNI OBCHOD in Czech No 5, 1978 pp 1-2

[Article by CSSR Deputy Foreign Trade Minister Premysl Strougal]

[Text] The 15th CPCZ Congress ordered continuation of the policy of rapid

development of the engineering sector and systematically adapting the production structure to the new domestic needs and changing conditions in the

world. The tasks of the engineering sector during the Sixth Five-Year Plan

focus on external economic relations. In the first place, exports of engineering products must be substantially accelerated. The 15th CPCZ Congress instructed the engineering sector to increase the total export volume by 72 to

74 percent during the Sixth Five-Year Plan. It is also a challenging task

to achieve export competitiveness and high efficiency in those branches of

the engineering sector whose products have not been exported so far although

traditionally they constitute part of the engineering production program.

The Sixth Five-Year Plan anticipates production in these branches but,

naturally, on a higher technical level. The five-year plan stipulated that

approximately 30 percent of all Czechoslovak engineering exports should be

earmarked for the capitalist and developing countries with the increase

amounting to 224 percent. A significant increase in both volume and rate of

exports of engineering products to the capitalist states during the Sixth

Five-Year Plan is imperative to meet the needs of pur national economy. This

also protects the fundamental trade political interests of the CSSR.

The acquisition of a major part of the funds necessary to pay for imported

products and raw materials depends upon the export capability of the engineering sector. The important role of the engineering sector was reiterated at

the Third Plenum of the CPCZ Central Committee which discussed independent

tasks in the development of our metallurgy and engineering sector during

the Sixth Five-Year Plan. The next session of the CPCZ Central Committee

held recently also paid appropriate attention to the engineering sector.

The tasks of the 1978 state plan approved by the Ninth Plenum of the CPCZ

Central Committee on 1 December 1977 provide for the implementation of the

goals and principal tasks of the guideline of the 15th CPCZ Congress

specified in the Sixth Five-Year Plan.

13
The Ninth Plenum of the CPCZ Central Committee expresses satisfaction with the

general trend in the national economy after the 15th CPCZ Congress, emphasized

all important problems and referred also to the shortcomings. A very complex

development of the capitalist economy reflected in the stagnation of many

sectors, upward trend and slight recovery in other sectors, and explicitly

crisis development elsewhere causes certain difficulties to our economy. So

far these problems have been successfully solved due to the effective

assistance and expanding cooperation with the socialist countries and we have

been able to maintain the upward trend and high living standard in our

economy.

Production continues to increase dynamically, the development of industrial

production corresponds to the general goals of the five-year plan during its

first 2 years.

As to foreign trade, exports of engineering products to the socialist countries

increased 19.7 percent and to the capitalist states 10.2 percent in 1976 in

comparison with 1975. In comparison with 1976, export to the socialist

countries increased 10 percent and to the capitalist states 27.3 percent in

1977.

The 1978 tasks of the engineering sector are as challenging as they were in

the first 2 years of the Sixth Five-Year Plan. Exports to the socialist

states are to increase 10.1 percent and to the capitalist 19 percent in

comparison with 1977. It is clear that exports of engineering products,

particularly to the capitalist states, constitute the principal and decisive

part of the foreign trade plan. The engineering sector accounts for 55 percent of Czechoslovak exports to the socialist countries. We have still not

succeeded, however, in substantially increasing the share of engineering

products in the total exports to the capitalist states, although it represents the most dynamic part of Czechoslovak exports. Exports of engineering

products make approximately 29 percent of the total volume of exports to the

capitalist states.

In the first 2 years of the Sixth Five-Year Plan, the engineering sector

generally fulfilled the tasks assigned to it. Yet, the crisis situation on

the world market of capitalist states this year has further intensified

the difficulties in the sale of Czechoslovak engineering products. In the

light of sharpening competition and declining demand on the markets of

capitalist states, the mistakes and defects of Czechoslovak production and

merchandising have become increasingly evident. It is therefore necessary,

in accordance with the resolutions of the 11th Plenum of the CPCZ Central

Committee, to discover and more thoroughly analyze the influences which

adversely affect the fulfillment of assigned tasks, to locate the weak

spots and solve the key problems, and to improve management in all respects.

If we want to achieve effective sales despite the complex situation on the

foreign markets, then we must focus attention on the principal tasks which

can be summed up as follows:

14
—to speed up the rate of technical development and Innovations of engineering products;

—to increase the quality and operating dependability of those products which

otherwise are of good technical standard. The production sector bears full

responsibility for the solution of these problems;

—to deal with the problems of assortment and in some instances also with the

total volumes of shipments of spare parts. This is becoming one of the key

questions for insuring the anticipated rates of our exports for example in

regard to trucks, tractors, cars and other products;

—to raise the standard of commercial and technical services both in the

area of foreign trade and particularly on the part of manufacturers;

—to improve professional competence of merchandisers as well as the overall standard of merchandising. This anticipates improved knowledge of the

assortment of products sold.

To put it briefly: the most important is the product, its useful properties

and good merchandising.

The problems related to the exports of complete industrial plants represent

a completely separate and special category in the fulfillment of tasks of

the Sixth Five-Year Plan. It is becoming increasingly clear that we must

focus all our attention precisely on the increased production and exportof complete industrial plants if we are to achieve the high rates of exports

of engineering products. Naturally, many problems are related to this.

Complete industrial plants are among the most complex and demanding types

of manufacture and export of engineering products. Among the very complex

tasks of both production sector and trade is achieving a high technical

standard of individual components, flexible organization of complementary

shipments both from the domestic production and imports, organization of

assembly and putting equipment into operation within the competitive deadlines and terms of payment.

On the other hand, however, a substantially higher remuneration for mental

work, know-how and experience of technical workers, designers, technological

experts, manufacturers and suppliers is the definite advantage of exports of

complete industrial plants over the exports of individual pieces of

machinery. The share of nonmaterial shipments and services related to the

export of complete industrial plants in the total price of technological

equipment delivered amounts-—according to foreign experiences—to 10 to 30

percent which makes these exports much more profitable.

Since it supplies all necessary components, international trade in complete

industrial plants convincingly proves technical, economic and organizational

know-how of the supplier country and the dependability of manufacturers.

15
Exports of complete industrial plants are always an important factor in external economic relations not only from the economic, but also' political standpoint. It more profoundly affects the economic base of the customer's country

and significantly strengthens the possibilities of long-term political and

economic relations with the country in question. Our engineering sector has

already achieved such a level of technical know-how and capacity to supply

all necessary components that it ranks among the relatively few industrially

developed states capable of guaranteeing a very demanding export of complete

industrial plants.

It is a fact, however, that exports of complete industrial plants registered

an absolute decline during the last five-year plan. In addition, serious

problems began to appear in the fulfillment of our obligations toward the

foreign countries. The dynamics of world trade in complete industrial plants

considerably exceeds the dynamics of Czechoslovak exports of complete

industrial plants. This means that the dynamics of the world market and other

external conditions are not among the causes which limit the rate of our

export of complete industrial plants. According to the expert estimates, the

world exports of complete industrial plants increase by approximately 10

percent annually at current prices.

Statistical data published in foreign economic literature demonstrate a relatively high percentage of exports of complete industrial plants in the total

volume of exports of engineering products by the industrially developed

capitalist states. In 1971 this percentage amounted to 24.7 percent in the

OECD countries, 27.7 percent in the United States, 27.1 percent in the FRG,

29.3 percent in Great Britain, 22.4 percent in France, 12.3 percent in Japan.

Naturally, it is necessary to take into account a high concentration of this

sector, most complex from the technical and production point of view, in a

relatively small number of capitalist states. Almost 75 percent of world

capitalist exports of complete industrial plants in 1971 were carried out by

these five countries whose industry and engineering cadres are able to supply

the required highest technical and economic standard of equipment delivered.

Likewise, extensive credit and foreign exchange potential of the above

industrially developed capitalist states contribute to achieving above-theaverage values in export of complete industrial plants.

Despite the crisis development in the capitalist states, investments in

foreign countries offer our exporters of complete industrial plants much more

room than they are able to use. The principal reasons for failure to make

use of existing possibilities must be seen in the gradual and intensifying

inadequacy of Czechoslovak bids for delivery of complete industrial plants

in terms of technical and economic standards, and in the promptness to meet

technical requirements and shipping dates of the foreign markets.

The share of exports of complete industiral plants in the total CSSR exports

of engineering products showed the following trend in last 15 years:

16
Year 1960 1965 1970 1973 1974

Share of complete industrial plants

in total CSSR exports of engineering products in percentages 21.9 14.3 13.0 13.7 12.4

A relative small share of exports does not correspond to the developed production and technological base of the CSSR. More important, however, is the

systematic decline of this share since 1960. Its cause is not inadequate demand on the foreign markets, but particularly the fact that the CSSR finds it

increasingly more difficult to supply complete industrial plants with the

competitive technical and economic parameters. These difficulties prevent

us from making full use of the sales possibilities existing on the foreign

markets.

It is therefore imperative that, in accordance with the principal directions

of further development approved by the 15th CPCZ Congress, exports of complete industrial plants account for a larger share of exports of engineering

products and insure the rates of increase in exports anticipated by the

Czechoslovak economy. Although it is indisputable that the delivery—from

•the initial to final phase—of complete industrial plants takes 3 to 5 years

and that contracts have already been sighed—and not very much can be changed

in them—for virtually all exports during 1978 and 1979, the production

sector and foreign trade must concentrate their effort on the proper preparation of deliveries beginning 1980 and create thus a solid basis for increasing these exports.

Due to the large number of components involved in the exports of complete industrial plants, the customer-supplier relations become immensely complicated.

Some problems have accumulated, particularly in regard to the complementary

deliveries for the complete industrial plants, which are related to the problems of cooperation with the foreign countries. As a result, the delivery

schedule of complete industrial plants is upset and their technical standard

has declined.

The general contractor still does not perform his function properly and his

ability to submit to the exporting 0Z0 [foreign trade organization] comprehensive bids within the required deadlines is inadequate. Some general contractors by a comprehensive bid mean only technological equipment (for example, spinning mills), but fail to include in it construction work, power

engineering and so on. It is a well-known fact that domestic subcontractors

are not interested in subdeliveries in those instances, when they can sell

their products under more advantageous terms such as direct export through

other foreign trade enterprises or sell them to the less demanding domestic

market.

17
In this unsatisfactory situation in the supplier-customer relations it is becoming increasingly imperative for the 0Z0 to develop cooperation on a larger

scale with the socialist and capitalist states in order to secure complementary

deliveries. These imports, particularly from the capitalist states, however,

render the final effect financially less profitable for the Czechoslovak

national economy. On the other hand, it is a fact that cooperative complementary deliveries contribute to the higher technical standard of the delivered

plant or shortening of the delivery period when domestic production is not

able to make deliveries within the deadlines specified by the customer.

This solution, however, has a negative aspect because an overwhelming majority

of complementary imports is carried out due to the unresolved problems plaguing

the domestic suppliers. Some of these imports involve equipment of identical

or even lower technical standard, whilf sometimes imports and exports in

opposite directions take place. From the territorial standpoint, these

complementary or cooperative imports primarily come from the capitalist states

because capitalist firms can offer shorter delivery periods and comply more

readily with the market requirements. Our foremost goal, however, must be

expansion of cooperation and specialization with the socialist countries in

accordance with the implementation of intentions of socialist economic integration.

Because of the high degree of the Czechoslovak economy's participation in

international cooperation and large scale of complementary imports, however,

most of the general contractors refuse to assume comprehensive warranties

for the delivery of complete industrial plants. As a result, 0Z0 becomes

the actual supplier of complementary equipment with all consequences resulting from it, that is responsibility for the quality of equipment and shipping

date including design, delivery and assembly, and putting respective equipment into operation. 0Z0 thus actually takes over the responsibility of contractor for the industrial plant. This situation, however, cannot be tolerated in view of the fact that OZOs are neither technically, materially nor

financially equipped for this form of sale of complete industrial plants.

As past experience demonstrates, it is urgent to completely solve the main

problems of export of complete industrial plants and especially:

—to make more flexible and speed up the bidding procedure, and to shorten

intolerably long shipping dates by adjusting them to those of competition;

—to eliminate discrepancies between contracts and economic agreements,

and between the annual fund allocations and actual volume of implementation;

—to carry out delivereis of complete industrial plants in the structure and

sequence appropriate to the needs of assembly and putting equipment into

operation;

—to eliminate Czechoslovak industry's increasing incapability of supplying

complementary components which necessitates their expensive imports, particularly from the territories with hard currency;

18
—to shorten delivery dates and make deliveries of all necessary spare parts;

—by proper planning and in cooperation with the production sector, subcontractors and merchandisers, to .^insure and increase exports of complete

industrial plants beginning 1980.

The common goal of all organs and organizations participating in the maintenance of Czechoslovak economic relations with foreign countries must be

achieving a permanent surplus of exports over imports, rendering our foreign

trade more profitable and the most effective participation of the Czechoslovak

national eocnomy in international division of labor.

Virius on Machinery Exports

Prague REVUE OBCHODU/PRUMYSLU/HOSPODARSTVI in Czech No 6, 1978 pp 62-64

[Article by Engr Miroslav Virius, CSc, Czech Planning Commission]

[Text] After the establishment of the socialist social system in Czechoslovakia,

the CPCZ paid attention to the development of engineering production including

its raw materials base as the precondition for building a socialist economy.

The task of the engineering sector was to insure a permanent source of develop- •

ment of productive forces, defense capability of the country and to create a

key production sector for foreign trade which would meet the needs of

socialist countries in the rehabilitation and building their economy.

PODIL STR0JÜ A ZAftiZENf V CS. WVOZU

nepotrav.

spotrebfil zboii

3

potraviny vc. surovin

4

p.nhva, hmoly

troje a zartzerti

1960 1965 1970 1975 1976

Key to Graph 1

1. Share oi" machinery and equipment

in Czechoslovak exports

2. Nonfood consumer

3. Food articles including raw

materials

4. Fuels, materials

5. Machinery and equipment

19
1 rok

1976

1975

1970

1965

1960

2

TERiTC7RlAlNi ZAMERENl CS STRO|iRENSKfHÖ VYVOZU

wmwwwwww^''

. /■■■:'/.

Key to Graph 2

1. Year 3.

2. Territorial orientation of Czechoslovak 4.

machinery exports 5.

SZ - socialist countries

KS - capitalist states

Billion Kcs

VVSIEOKY l/YROBNi SPECIAUZACE

A KOOPERACE CSSR SE ZEMEMI RVHP

2 WO • 80,9 iii.l Rb

3 W6 =756,7 mil. Rb

Key to Graph 3

1. Results of production specialization 2. 1970

and cooperation of CSSR with CEMA 3. 1976

countries

Rubles 80.9 billion

Rubles 756.7 billion

20
Increase in Engineering Production and Its Orientation

These intentions were reflected in the task formulated by the Ninth CPCZ

Congress—to increase production in the metal-working industry by 93 percdnt.

The 10th CPCZ Congress directed attention among other things to the increase

in production of highly efficient machinery, instruments and equipment for

mechanization and automation of agricultural operations particularly for

cultivation purposes in the SZ [socialist countries]. Moreover, manufacture

of measuring instruments then in short supply and new standardized antifriction bearings was expanded.

The Third Five-Year Plan set the tasks for the stabilization of production

programs, increased production of heavy engineering, equipment for chemical

industry, power sector, metallurgy, electric and diesel locomotives, machine

tools and forming machines, tools, castings for agricultural machines and .

consumer goods.

The Fourth Five-Year Plan ordered accelerated production in technically progressive sectors, for example, elements for semiconductors, gas turbines,

machines for information processing, cars, diesel locomotives, components

for electronic products, machinery for textile industry and so on.

The Fifth Five-Year Plan represented a radical qualitative change in the formulation,and implementation of tasks. With its share of 30.8 percent, the

engineering sector became the principal industrial sectoi with a fully

developed structure and the most rapid production increase. The beginnings

were made for structural changes and introduction of development programs.

The structure and technical standard of engineering products improved.

The guideline for the Sixth Five-Year Plan, in accordance with the resolutions of the 15th CPCZ Congress, set the task of increasing production by

40 percent in heavy engineering and by 43 percent in general engineering,

improving technical and economic standards of production, increasing exports while achieving higher efficiency, better quality and higher dependability

of products, and continuing in the implementation of structural changes in

production.

In 1976, Czechoslovak industrial production increased 10.7 times and engineering

production almost 23 times in comparison with 1948.

The share of the engineering sector in industrial production increased-from

12.5 percent in 1948 to 33.3 percent in 1976. Its share in production of the

national income increased from 10 percent to 20 percent during the same

period.

Position of Engineering in Czechoslovak Exports

The average annual rate of increase in Czechoslovak exports of machinery and

equipment was 8.7 percent during the 1960-76 period but in fact 11 percent

during the 1970-76 period.

' " ''. 21
If wi' follow up tlio post Lion of machinery and equipment within the entire

commodity structure, we notice a distinct tendency toward an increase in the

share of this group and a permanent decline in the share of fuels, raw

materials and food items, and to a considerable extent a stagnating share

of consumer goods in exports. The share of machinery and equipment in total

Czechoslovak exports increased from 20.3 percent in 1948 and 45.1 percent in

1960 to 50.1 percent in 1976.

The engineering sector has become the main source of foreign-exchange supply

in Czechoslovak exports. This is evident from the comparison of results of

trade balance of individual commodity groups (in million Kcs).

Total trade balance

including:

machinery and equipment

fuels ana raw materials

food including raw materials

nonfood consumer goods

— _

I960 1965 1970 1975 1976

820 115 700 -4065 -3859

3435 3627 4841 3697 5651

-2872 -3505 -3454 -9540 -11058

-2139 -2205 -2897 -2695 -3919

2393 2188 2254 4465 5474

Czechoslovak Exports of Engineering Products by Territories

Machinery and equipment exported by Czechoslovakia to the socialist countries

were the decisive factor both in the volume and rate of mutual commodity exchange in 1976:

Share of Engineering Products in Czechoslovak Exports to Socialist Countries

(In Percentages):

USSR 58.3 Hungary 47.4 Bulgaria 61.8 Vietnam 60.1

GDR 57.8 Yugoslavia 37.0 China 68.8 Mongolia 46.5

Poland 65.2 Romania 47.8 Cuba 56.4 Korean People's

Republic 46.4

Share of socialist countries in the total Czechoslovak exports of machinery

and equipment and the balance of Czechoslovak engineering with the socialist

countries.

Exports of machinery and equipment in percentages

Balance of engineering exports

in million Kcs

1960 1965 1970

81,8 84,3 82,4

2691 3097 5112

1975

83,4

4740

1976

85,0

6951

22
Most exports of machinery and equipment are backed up by long-term and credit

agreements. Products manufactured on the basis of contracted specialization

and cooperation occupy an important place in this respect.

Results of Production Specialization and Cooperation of CSSR With CEMA

Countries

According to the FSU [Federal Office of Statistics], the volume of Czechoslovak

exports of machinery and equipment resulting from specialized and cooperative

production showed the following trend in relation to the CEMA countries:

CEMA countries, total

including USSR

Poland

GDR

Bulgaria

Hungary

Romania

1970 1975 1976

In million of

transferable

rubles

1975/70 1976/70 1976/75

index

80,9

54,6

4,4

9,2

4,2

2,8

5.7

351,0 756,7 162,8 935,4

180,0 440,0 329,7 805,9

62,9 114,1 1429,5 2593,2

68,0 109,4 739,1 1189,1

19,3 48,5 459,5 1154,8

13,7 29,8 489,3 1064,3

7,1 14,9 124,6 261,4

215,6

244,4

181,4

160,9

251,3

217,5

209,9

In 1976, the share of specialized production amounted to 58.1 percent of exports to the USSR, 15.1 percent to Poland, 14.5 percent to the GDR, 6.4 percent to Bulgaria, 3.9 percent to Hungary and 2.0 percent to Romania. The

volume of exports of machinery and equipment manufactured on the basis of agreements on multilateral cooperation reached rubles 463.1 million and rubles

293.6 million within bilateral cooperation in 1976.

The CSSR participated in 70 multilateral and 100 bilateral agreements in 1977.

The share of specialized products in the Czechoslovak exports of engineering

products is to exceed 23 percent by 1980 as compared with 12.7 percent in .

1973 and 16.6 percent in 1975.

The dominant position of machinery and equipment in the Czechoslovak exports

to CEMA countries is reflected in the multilateral agreements on specialization and cooperation:

—in the manufacture of machine tools and forming machines where the CSSR

accounts for 32 percent of the volume of specialized production;

—'in the manufacture cf trucks with a carrying capacity over 12 tons where

the CSSR obtained from MIB [International Investment Bank] a credit in the

amount of rubles 77.5 million for expanding production capacities (this

represents an increase of more than 80 percent in comparison with the Fifth

Five-Year Plan);

23
—in shipbuilding where the CSSR is to build 10 ships for river navigation 9

of which are designed for the USSR;

—in the manufacture of diesel locomotives which includes delivery of 1,350

locomotives to the USSR during the 1976-80 period. The agreement stabilizes

the production program and provides for more efficient production in larger

series;

—in the manufacture of construction and highway machinery which leads to

the large series production of swivelling hydraulic loaders particulary for

the USSR and provides for imports of various construction machines at the

same time.

Position of USSR in Czechoslovak Exports of Engineering Products

The decisive importance of the USSR for the Czechoslovak engineering sector

is evident among other things from the fact that the CSSR exports to the USSR

approximately 13 percent of all machinery and equipment manufactured in the

country. Czechoslovak exports of engineering products to the USSR are to increase 68 percent during the Sixth Five-Year Plan over the level of the

previous five-year plan, and the share of the USSR in the total Czechoslovak

exports of engineering products is to reach 31 percent. The share of products

exchanged between the CSSR and USSR on the basis of specialization and cooperation agreements is to account for 26 percent by 1980 as compared with 13 percent in 1975.

The two countries have signed agreements, for example, on cooperation in the

manufacture of equipment for nuclear power plants, in the development of a

uniform series of asynchronous electric motors, on specialization and cooperation in the manufacture of machine tools and forming machines, pumps, compressors and cooling equipment, highway and construction machines, equipment

for production of building materials, instruments, automation devices and

control systems, tractors and agricultural machines, equipment for food

industry and so on.

Cooperation With Other CEMA Countries

Specialized engineering products account for approximately 30 percent of the

CSSR foreign trade with the GDR. The share of products manufactured on the

basis of specialization agreements and exchanged between the CSSR and GDR

should account for 40 percent by 1980 as compared with 20 percent in 1975.

In heavy engineering there is in effect, for example, an international agreement on the manufacture of large crankshafts and their deliveries to the GDR

to satisfy their needs. For this purpose, the GDR granted a credit for expanding production capacities in VZKG [Klement Gottwald Iron Works in Vitkovice] Ostrava. During the 1976-80 period, the CSSR will deliver over 1,000

streetcars to the GDR and will import from it over 900 railroad passenger

24
cars. A similar specialization agreement applies to lifting and transportation

equipment, products of high voltage electrical engineering and so on.

In general engineering, there is a common conception of the development of

agricultural equipment. Agreement has been reached also on the division of

labor in the manufacture of machinery for the textile industry in which the CSSR

develops and manufactures machinery for spinning and the GDR machinery for the

preparation of sliver.

In the heavy engineering sector, 21 agreements with Poland on economic cooperation were in effect during the first half of 1977. They amount to approximately

300 million rubles in value and account for almost one-third of the total

exchange of. machinery and equipment with Poland during the 1976-80 period.

In general engineering, 12 specialization agreements were in effect as of

30 June of 1977.

Specializaed production accounts for 27 percent of Czechoslovak exports to

Bulgaria. The most important is the agreement on specialization in the

manufacture of electric carts and pulleys, other agreements cover the area of

electronic computers, metal-working machines, measuring instruments and tools,

agricultural mechanisms and so on. Important is the agreement on cooperation

in automobile industry between the Liberec automobile works and Madara enterprise at Sumen. The value of production will exceed 100 million rubles during

4 years.

The share of specialized and cooperative shipments between the CSSR and Hungary is approximately 26 percent. Cooperative relations are maintained on

the priority basis in the manufacture of cars whose value will reach 450

million rubles during the 1976-80 period. Cooperation agreements cover also

manufacture of construction and highway machinery, agricultural machines,

electronic components, computers and products of low-voltage electrical equipment. An important agreement has been signed also on cooperation in the

manufacture of machine tools.

Specialization and cooperation between the CSSR and Romania involves particularly metallurgical equipment, front-wheel drives for tractors, machine tools,

feeding filling lines, pivotal tables, automatic lines for manufacture of

screws and so on.

Export of Engineering Products to Capitalist States

The Sixth Five-Year Plan calls for a considerable increase in Czechoslovak

exports to the capitalist states. A complex problem is the increase from 12

to 17 percent in the export of complete industrial plants to these countries.

The difficulty lies in the limited size of economic production units', the need

to raise the technical standard and quality of products involved, shortening

of delivery periods and so on.

25
1960 1965 1970 1975 1976

Exports by Czechoslovak engineering

plants to capitalist countries in

percentages

Balance of engineering exports in

million Kcs

18,2

744

15,7

530

17.6

-271

16,6

-1043

15.0

-1300

If we compare the share of machinery and equipment in the exports to the industrially developed capitalist states (VKS) and developing countries (RZ) in

1976, their high percentage in the exports to the developing countries unambigously stands out. In regard to the developed capitalist states on the other

hand, this share is only within 5.6 to 28.5 percent. This applies particularly

to the European states in the EEC [European Economic Community].

Share of machinery and transportation equipment in Czechoslovak exports to

selected capitalist states in 1976 (SITC classification, group 7) in percentages :

Selected Capitalist States

FRG 9.6 France 28.5

Austria 6.4 Italy 23.4

Great Britain 27.3 Netherlands 19.2

Switzerland 6.6 Belgium & Luxemburg 15.9

United States 23.9 Sweden 25.9

Developing Countries

Egypt

Brazil

Iran

Iraq

Syria

54.7 India

76.0 Libya

59.3 Turkey

74.3 Peru

72.3 Singapore

74.4

75.9

51.9

90.2

24.5

The share of machinery and equipment in the Czechoslovak exports to VKS increased from 14 percent in 1965 to 16.6 percent in 1976. This tendency

corresponds to the Guideline for the Sixth Five-Year Plan.

One of the ways to the fulfillment of these tasks in relation to VKS is

the increase in industrial cooperation on the enterprise level. To achieve

this goal, conditions are created in the area of interstate contracts, ad-,

justment of and increase in economic incentives and so on. Apart from the

crisis phenomena on the markets of VKS, however, Czechoslovak exports encounter a number of artificial obstacles such as quotas, discontinuation

of liberal policies, strict application of norms and standards, custom duties

26
imposed on exports and so on. Even the relations with VKS are governed by

the principle of mutual advantages and scientific-technical and productiontrade cooperation benefiting both parties.

In relation to RZ, the share of machinery and equipment in Czechoslovak exports shows an upward trend. The CSSR remains for RZ an.Important supplier

of engineering products and equipment, and a customer for their raw materials,

semifinished and in recent years also finished products. The CSSR supports

the development of political and economic independence of RZ and building of

their national industry.

Additional possibilities for achieving these goals are offered by the intensificiation of socialist economic integration and the resulting cooperation

between CEMA countries and RZ in big projects on the basis of new forms of

cooperation.

Anticipated Exports of Machinery and Equipment After 1980

In the period after 1980, attention is focused on big cooperation and specialization projects which will result in larger series production, reduction

of production costs, savings in social labor and investments, and which aim

at the long-term satisfaction of needs of the CSSR and its trade partners.

The conditions for the implementation of these tendencies are offered particularly by the domestic market of the USSR and other CEMA countries. A positive contribution to these efforts is the CSSR participation in the preparation of long-term target programs of cooperation between CEMA countries for

the engineering sector.

The target programs in the engineering sector up to 1990 aim at satisfaction

of Czechoslovak needs for raw materials and fuels, and cooperation in production, science and technology. The target programs speed up also the process

of equalization of economic level of CEMA countries.

In addition to the target programs, bilateral negotiations are

5conducted

between the CSSR and CEMA countries within the coordination of national

economic plans for the 1981-85 period.

These facts indicate that the Czechoslovak engineering industry and its further

effective development objectively required a planned transition to the higher

forms of international socialist division of labor such as specialization and

cooperation, joint planning and target programs following from the implementation of the Comprehensive Program of Socialist Integration.

This at the same time proved the correctness of tentative plans drawn 30

years ago for Czechoslovak engineering as the basic production sector which is

to insure full development of the socialist economy including permanent increase in labor productivity, efficiency, application of scientific and

technical achievements, and promote the dynamic development of cooperation

with the socialist and particularly CEMA countries.

8973

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27
CZECHOSLOVAKIA

RELOCATION OF RAILROAD TRACKS

Prague HOSPODARSKE NOVINY in Slovak No 28, 14 Jul 78 p 2

/Commentary by Eng Jozef Hudec, staff member of the CPCZ Central Committee/

/Text/ The dynamic growth of our national economy places great demand on the

development of basic industries, mainly those industries involved in the

development of energy-bearing and raw materials resources. In this regard

the North Bohemia Kraj plays a vital role in our economy. It is the fuels

and energy base of the republic. It contributes decisively to meeting the

needs of the national economy for solid fuels, and it produces one-third

of the republic's total electric power output.

But it is hot enough just to take coal out of the ground. It has to be

shipped to the point where it is going to be used. Therefore, work on the

construction of relocated railroad tracks in this kraj is just as important

to maintaining the steady and dynamic pace of economic growth as the actual

mining of brown coal. A similar pace must be kept up in order to also

complete work on the construction of housing stock, public works, and

utilities installations to replace that which had to be demolished in order

to clear the way for the further progress of coal mine working faces. At

the present site of the Most mine it was essential to demolish the old town

section of Most and to relocate streets, railroad tracks, and the express

train right-of-way. A large proportion of the newly built housing projects

and industrial plants is already in use. However, some of this construction

work is lagging behind planned schedules. Work on the construction of a new

channel for the BDUna River and on the re-siting of the Drinov reservoir

is being held up. But the most complex problems are concentrated primarily

in that area of capital construction associated with work on the relocation

of railroad transportation lines.

Notwithstanding all of the past successes that have been achieved in this

area by builders and transportation workers, it needs to be said that the

present rate of progress on some building projects does not correspond to

the urgency of general social needs, since it is not laying an adequate

groundwork for the successful completion of construction work within the

deadline set by the government.

28
The most complicated and most time-consuming problems are posed by the

situation along the engineering systems corridor in Most, followed^ by

problems associated with phase two of the relocation of the CSD /Czechoslovak

State Railroads/ Chomutov-Prunerov line, phase two of the temporary relocation of the CSD Trebusice-Chomutov line, and phase two of the final relocation of the CSD Trebusice-Chomutov line. The most important contractors

working on these relocation projects at the present time are the Engineering

Construction VHJ of Bratislava and its subordinate Highways and Railroad

Construction Enterprise of Prague (SSZ).

Work is under way on the construction of the so-called "Trebusice departure

tracks" (an integral part of the Most rail traffic corridor) which fan out

from the much publicized Most Railroad Station. This new project involves

thq construction of a rail line that is approximately 4 kilometers long,

along which roughly 20 kilometers of track and around 30 switches are supposed to be laid. This construction work was supposed to have been completed

by the end of June. But since the management of SSZ (at its Usti nad Labem

branch plant) did such a poor job of organizing the project schedule, there

was a danger that the target date for the completion of the project would

be postponed for a long period of time. Help was clearly needed. And this

assistance was very efficiently rendered by the Transportation Construction

national enterprise of Olomouc. Since time is a limiting factor on this

construction project, an ongoing and effective program of work collective

rotations has been set up to enable socialist labor brigades to work on

Saturdays and Sundays, and the quality of their work has also been exemplary.

The extended target date for the completion of the project, for which the

"Usti nad Labem boys" were to blame, was moved ahead thanks to the efforts

of the workers from the Olomouc Transportation Construction enterprise, and

on 15 July they will turn the project over to the Rail Transportation Automation national enterprise (AZD). This is a deadline which moreover will

make it possible for AZD to turn the line over to the railroads for regular

use by the planned deadline of 15 November and thereby make it possible as

well for coal to be shipped by rail from the Most mine to other areas of our

republic.

Another no less important construction project in this area involves phase

two of work on the relocation of the CSD Chomutov-Prunerov line. The

planned deadline for the opening of this line is 30 September. This line

is approximately 13 kilometers long. Five SSZ plants are working together

on this project. Noteworthy successes are being achieved mainly by

collectives from the SSZ plants at Karlovy Vary, Cesky Brod, and Hradec

Kralove. Even though the construction workers working on this project have

racked up a good performance record, their record is still marred by the

postponement of the target date for the completion of the project by one

month. It is therefore necessary to mobilize additional capacities to give

them a helping hand.

The current status of the work schedule requires that this construction

project should have a full-time investor. The investor, CSD in this case,

29
must lake a more bus [ ness I ike approach to fulfilling its role as a managerial

and coordinating factor. As even greater effort needs to be made to consolidate construction worker collectives, to hold same-day performance evaluation

conferences, and to spell out tasks that will contribute to the plan's fulfillment. This is the only way in which it will be possible to bring this

project to a successful and timely conclusion.

Phase one of the CSD Trebusice-Chomutov line relocation project should be

completed in time for this line to go into service by the end of this year.

Work on the construction of this line is being carried out by SSZ in cooperation with enterprises of the North Bohemia Brown Coal Mining Fields VHJ (SHR).

Before work on this project can be completed SHR will have to transfer another

190,000 cubic meters of earth, and still another 370,000 cubic meters of

earth will have to be excavated by SSZ. To do this, however, more people

are needed, but what is most needed is machinery, its better utilization,

and good work scheduling. The satisfaction of these needs will thus serve

to insure the successful completion of this project and the opening of the

new line for regular service.

The contractors working on phase two of the project involving the final

relocation of the CSD Trebusice-Chomutov line are the SSZ plants at Karlovy

Vary, Usti nad Labem and Prague. This project is supposed to be completed

in 1982, and the newly built line will be 13 kilometers long. This line is

slated to open for service in 5 years, but right at the very outset work

on this project has been marked by a lack of planning on the part of the

investor. In light of what happened during construction work on previous

line relocation projects it is desirable that the investor, CSD, should

already be exercising firm control over this construction project so as to

prevent a recurrence of the situation that developed as a result of the

poor scheduling of the Trebusice departure tracks project. In order to

make this construction work go more smoothly immediate action should be

taken to greatly speed up the formulation of investor plans so that contractor organizations will be able to do their work at a more steady pace.

The extraordinary efforts which have had to be made in recent months to speed

up work on the construction of the three CSD track line relocation projects,

which are of such exceptional importance to our national economy, guarantee

that the final deadlines for their opening for service will be met within

the time allotted. The opening of these relocated lines for service will

make it possible to maintain a steady flow of coal supplies to the other

areas of our republic and to lay the groundwork for the sustained normal

growth of our economy. But this still calls for a great deal of dedicated

work. It will be especially important in this connection to take full

advantage of the summer months and of the temporary assistance of university

student brigades. There are many instances, mainly in the construction

industry, in which the summer season and the redoubled efforts of construction workers made it possible to avert an apparently critical situation.

But this has always required the mobilization of all forces and resources

with a view to the attainment of the ultimate objective. The same approach

has to be taken when it comes to the completion of construction work on the

relocation of rail lines in the North Bohemia Kraj.

30
Work on the construction of relocated track lines in the North Bohemia Kraj

lias also borne out the challenging nature of the workload confronting management personnel. This work is testing the skills and dedication of many of

those who are responsible for the organization of capital construction

processes. For this reason, the new management team of the Engineering

Construction VHJ of Bratislava cannot afford to overlook or to avoid drawing

appropriate conclusions concerning the irresponsible and careless actions of

some of the top management workers of the Highways and Railroads Construction

national enterprise plant at Usti nad Labem with respect to construction projects that are of the utmost importance to society as a whole. Indeed, a

potentially very adverse situation was prevented from interfering with work

on the relocation of CSD rail lines solely owing to the deep understanding

of. overriding general social interests on the part of other national enterprises and plants in the construction industry.

With the construction work completed, work teams from the national enterprises Railroad Transportation Automation and Railroad Electrification are

already getting to work on all of the above-mentioned line relocation projects. The construction workers left them virtually no extra time in which

to do their job. But these are experienced and well-organized work teams,

whose efforts will guarantee that the final deadlines set for this year

will be met.

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31
CZECHOSLOVAKIA

CRITICISM OF RAILROAD WORKERS

Bratislava PRAVDA in Slovak 20 Sep 78 p 2

/Commentary by Ivan Salgovic/

/Text/ It always has been and still is a valid rule to live by which holds

that whoever sets out promptly to fulfill his duties as vigorously as possible and by harnessing all of the intelligence, skill, and organizational

talents at his command already has his job half done. In so doing a person

will have taken the first step toward realizing the goals that were assigned

and planned, toward achieving success. True, it is not enough merely to make

a good start, rather it is also necessary to follow through and to bring the

work that was begun to a successful conclusion. And, conversely, a bad start

usually gives rise to crash programs, and by the same token undue haste

sows the seeds of failure. In the latter event a factory will then be

literally inundated with a work overload and will start to look for ways

to make up for lost time and, as often as not, to cover up its mistakes,

to find excuses for the inexcusable.

All of this fully applies to railroad workers too, even though it is not our

wish to call into question their past performance record. They started off

the new year in good form and with unusual enthusiasm. The nearly 10,000

railroad cars which they loaded daily during January is the greatest January

output record in the entire history of the Eastern Railroad. They did a

good loading job in subsequent months as well, although they did not always

break any records. This year's leading platform traffic was also hit by

the normal slowdown that occurs at the start of the summer season, as has

always been the case heretofore. Nor was there any halt to the downturn

in the number of on-loaded and off-loaded freight cars during July. However,

railroad workers have by now grown more or less accustomed to this kind of

"slack period." But then again most plants are operating on a summer vacation work schedule, and there are also fewer people working in offices and

stores. But nothing out of the ordinary would have happened if, as has

been the case in the past, there had been a pick-up in activity on railroad

loading platforms during August. However, the number of loaded freight cars

during August began to seriously lag behind the provisions of the economic

plc-in. Day after day went by, and the railroad workers' backlog of unloaded

32
goods and freight, which they were supposed to be shipping to consumers on a

regular basis, kept increasing. By the end of August this backlog had piled

up to the point where it amounted to 13,797 unloaded freight cars, which in

terms of weight amounts to 189,959 tons of unshipped freight. Railroad

workers also failed to meet certain other performance indicators which they

had met in the past and even during the earlier months of this year, thereby

racking up a good work record for operational divisions. While in August of

last year they loaded an average of 9,866 railroad cars daily, they loaded

an average of 533 fewer cars this year. The only performance parameter

which they consistently surpassed was the tare weight target for freight

cars. For example, at the end of the summer they surpassed this target by

0.44 tons.

Why did the railroad workers, after having gotten off to a good start even

during August, cease to fulfill their planned tasks? During August there

was not a single operational division which succeeded in fulfilling its

loading plan. The on-loading shortfall in Kosice amounted to 34,882 tons,

31,430 tons in Zvolen, and as much as 70,709 tons in Bratislava. As of the

present date, for example, the operational division in Zvolen is in debt to

the national economy to the tune of 100,000 tons of unloaded freight.

Instead of the planned freight car turnaround time of 1.73 days, the actual

turnaround time was extended to 1.81 days. Turnaround times are getting

longer even for loaded freight cars in transit. Empty freight cars often

have to wait idly in stations for shippers to arrive, clogging tracks and

slowing down the unloading time for other arriving freight trains.

All of these facts, regardless of to whatever extent they are isolated

instances or part of a larger complex of contributing factors, have served

to make the present situation more difficult. During the closing months

of this year the railroad workers will have to load another 22 million

tons of freight. This is no small amount, especially in light of last

year's experience when railroad workers managed to ship something in

excess of 21 million tons of freight between September and December only

by dint of redoubled efforts on everyone's part. This is why it is essential

for us to work harder and to harness all untapped resources right now so

that we do not ring in the New Year with the same negative balance sheet

that prevailed as of the beginning of September.

It is especially necessary to insure the uninterrupted and intensive shipment of priority freight, primarily coal and other fuels, so that it

promptly reaches all consumers and every household. A more consistent

effort needs to be made in order to upgrade the system and the quality of

the management of all loading platform operations. It will also be important

to make sure that all train dispatchers are kept well informed as to actual,

current conditions in train stations, the status of freight trains, and so

on. Immediate steps should be taken to disabuse railroad workers of the

habit of filling out incomplete, misrepresented, and often false reports

on loading and unloading operations, train repairs, and the causes of substandard work at specific train stations and loading platforms. Many station

33
masters need to be admonished not to evade their duties to submit thorough

reports on the status of railroad operations. They must be urged to attach

greater importance to the substance rather than to the form of dispatches

and reports. After all, when this kind of distorted information is furnished

even to the management of the Eastern Railroads Administration, it stands

to reason that many tasks are often going to be duplicated and repeated and

that there will be considerable delays before the orders and appeals issued

by the highest party and state organs finally reach those who are supposed

to act on them.

Improvements also need to be made with respect to cooperation between individual stations and operational divisions, as well as between the railroads

and shippers. We are not getting freight cars unloaded simply by penalizing

the unorganized shipper through the assessment of multiple fines, such as

were assessed against the South Slovakia Wood Pump and Paper Products Plant

in Sturov, which since the beginning of the year has paid out nearly 35

million korunas in fines. Station masters are also going to be expected

to work more creatively and to display more organizational skill in eliminating the consequences of substandard loading and unloading work. They

must stay in touch with shippers on a day-to-day basis, and station masters

and shippers must make a joint effort to find solutions to problems. This

holds true in particular in view of the present complex situation. An

effort needs to be made to find out where ample untapped resources still

exist within the railroad transportation system, where this transportation

system can be improved by means of the more even distribution of railroad

cars, and where problems still exist in the areas of management and work

scheduling. In a word, we have to find out where we are going to have to

work harder.

And, having done so, this extra effort will have to be made as soon as

possible.

11813

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34
CZECHOSLOVAKIA

BRIEFS

SLOVENE PARLIAMENTARY DELEGATION—Prague, 25 Oct, CETERA—Czechoslovak

Foreign Trade Minister Andrej Barcak met in Prague today with Zvone Dragan,

deputy chairman of the Executive Committee of the Slovenian Parliament and

member of the League of Communists of Yugoslavia Central Committee. They

discussed the promotion of trade and economic relations, especially ..

industrial cooperation, cooperation on third markets, and possibilities

of increasing the transit of Czechoslovak goods via the Port of Kopa.

[Text] [Prague CTK in English 170 [as printed] GMT 26 Oct 78 LD]

PROTOCOL WITH ITALY—A session of the Italian-Czechoslovak Commission for

Economic Cooperation took place in Rome. A protocol on the meeting contains a proposal for the setting up of a new working group which is to

concern itself with, the further intensification of cooperation in agriculture and food industry. The overall value of trade exchanges between both

countries is around 250 billion lire annually. [Text] [Prague Domestic

Television Service in Czech and Slovak 1800 GMT 20 Oct 78 LD]

FIRES IN CZECH LANDS—The 1,995 fires in the Czech Socialist Republic in

the first 6 months of 1978 caused damage exceeding KCS100 million and

claimed 49 lives. Another 274 persons were injured. The timely intervention of fire squads prevented losses of over KCS750 million. [Prague RUDE

PRAVO in Czech 18 Oct 78 p 4 AU]

CSO: 2400

35
EAST GERMANY

MITTAG INTERVIEWED ON GDR-AUSTRIAN TRADE RELATIONS

East Berlin HORIZONT in German Vol 11 No 41, 1 Oct 78 p 5

[Interview with Guenter Mittag, Politburo member and Secretary, SED Central

Committee: "Relations Between the GDR and Austria Are Expanding"]

[Text] HORIZONT: In the middle of September 1978, a GDR delegation under

your leadership visited Austria. What was the aim of your trip?

Guenter Mittag: First I should like to stress that the GDR delegation

followed an invitation from the Federal Government of Austria. Our visit

served the further development of the relationship between the two states.

It was our aim to deepen the cooperation between the GDR and the Federal

Republic of Austria on the basis of the agreements reached at the occasion

of the visit in the GDR of Dr Bruno Kreisky, the federal chancellor of

Austria.

HORIZONT: What is your evaluation of the results of your trip, and how do

you judge your talks with leading personalities of the Austrian government?

Guenter Mittag: We are fully justified to judge that the talks have been

very useful for both sides and that the results can be evaluated as very

positive.

During my stay in Vienna I had an occasion for an exchange of opinions with

Austrian Federal Chancellor Kreisky. We spoke very frankly about political

questions of the day and the further development of economic relations.

During our discourse we agreed that the relationship between the GDR and

Austria has been developing very well in all respects, and I once again

stressed the interest of the GDR in a long-term and stable development of

political and economic relations with Austria, just as Erich Honecker, the

secretary general of the Central Committee of the SED and chairman of the

State Council of the GDR, had stated in his conversation with Dr Kreisky

in April. In this context, I can refer to the fact that Federal Chancellor

kreisky emphasized that the peaceful coexistence of states with different

36
social systems is possible only on the basis of trustful cooperation and

mutual esteem. We can thus accentuate the mutual interest in the further

development of good relations on a long-term basis, especially in the sphere

of economics. We desire an all-round good cooperation on the basis of the

final declaration of Helsinki. We discussed in detail the intentions and

capacities of the GDR for the consolidation of such relations with Austria.

I can emphasize that Federal Chancellor Kreisky expressed his satisfaction

about the progress in the development of relations between the two states

since his visit in the GDR. He also gave expression to his satisfaction

with the fact that activities, especially in the economic field, arc very

substantial and that work on the projects which he had discussed with State

Council Chairman Honecker during his visit is progressing well.

During the trip I also had the opportunity for detailed talks with the

president of the National Council, Anton Benya; the vice chancellor and

minister of finance, Dr Hannes Androsch, and the federal minister for trade,

crafts and industry, Dr Josef Staribacher. In these negotiations with representatives of the Austrian government we engaged in a thorough review of

the consolidation of long-term and stable economic relations between the

two states. In the course of this review, the positive development of economic relations, which has been characterized by a steady continuity, was

given special emphasis. My Austrian discussion partners explained that

these relations have become a stable factor for many enterprises of the

Austrian economy. They made known their determination to expand and consolidate this cooperation.

It can be noted without any doubt that the opening of diplomatic relations

between the GDR and Austria in 1972 and in particular the visit of Federal

Chancellor Kreisky to the GDR have imparted new impulses to the mutual

relations.

HORIZONT: You had the opportunity to conduct negotiations with leading

representatives of the Austrian economy. Could you tell our readers something about this subject?

Guenter Mittag: The GDR delegation conducted numerous official talks and

negotiations in Vienna with personalities of the Austrian economy and

representatives of leading Austrian enterprises on the consolidation of

long-term and stable economic relationships. We had very significant and

constructive meetings with the president of the Federal Chamber of Business,

Engineer Rudolf Sallinger, and with the managing directors of well-known

large and medium-size industrial enterprises. In all these talks, expression was given time and again to the interest in the development on a

stable basis of long-term scientific and technical-economic cooperation

of a high level—I would say, of a new quality. Both sides emphasized

unequivocally that trade cannot be a one-way street, but rather must be

developed in a balanced way. In this context we conducted a thorough

exchange of opinions on the necessity for both sides to provide ever new

37
impulses for the further consolidation of economic relations. During all

these meetings both sides agreed in expressing their will to expand further

the bilateral relations between the GDR and the Austrian Republic and to

conclude appropriate agreements to this end.

HORIZONT: Could you explain in some detail, what agreements and contracts

were reached with leading personalities of Austrian industrial enterprises

during the visit of the delegation which you headed?

Guenter Mittag: Our daily press and our radio and television have already

reported that during the stay of the GDR delegation an agreement on the

extension of the trade and payments treaty with the Austrian Republic was

signed. The existing trade and payments agreement was extended for another

5 years. This constitutes a significant step and an essential basis for the

expansion of economic and scientific-technical cooperation and also for the

consolidation of trade relations. It provides proof that the GDR is internationally esteemed as a productive and reliable partner. It is obvious

that the relations between countries with differing social systems—and this

applies especially to the economic relations—can develop well only to the

extent that all impediments and barriers have been dismantled and that their

cooperation is shaped to mutual advantage and benefit. With the Austrian

Republic we have been tied for many years by stable economic relations which

are still capable of further expansion. Thus it is our intention to more

than double exports to Austria by 1985. The high level of the production

capacity of both economies also offers a guarantee that cooperation in

third markets can be even stronger than it has already been until now. On

this question, too, we reached an understanding with the leading personalities of the Austrian government and economy.

Beyond this, the GDR and the Austrian Republic agreed that in 1979 we will

arrange "Technical Days of Austria" in the GDR. These events are to serve

to deepen the mutual knowledge of the scientific and technical level and the

production capacity of the two economies. At the same time they will contribute to the discovery of new possibilities for the further consolidation

of economic relations and technical and scientific cooperation.

HORIZONT: During your visit to Austria important economic contracts were

signed. Could you give us some comments on the closing of these contracts?

Guenter Mittag: During our stay in Vienna a very large contract for the

construction of a plant for heavy sheet metal in Ilsenburg was placed with

a noted Austrian industrial enterprise, the VOEST [United Austrian Steel

Trust] Alpine.

This order consistently continues the good collaboration that has been

maintained for many years between GDR industry and this leading Austrian

enterprise. In fact, this contract has great significance not only for the

cooperation between our two states, but also for raising the economic

capacity of our country. The Austrain VOEST Alpine enterprise thereby

38
participates in an important investment undertaking of our socialist economy. The GDR, for its part, will be delivering products of its newly constructed industrial capacities to Austria.

It should be noted by the way that a time-tested cooperation between GDR

industrial combines and foreign trade enterprises and the Austrian VOEST

Alpine enterprise exists also in third markets, and there is full agreement

that this work will be further developed and the scientific and technical

cooperation will be strengthened. The potentialities of this collaboration

are much larger and will in the future be exploited in a more resolute manner. In this context I should like to state that the representatives of the

Austrian economy were very gratified about the fact that the GDR continues

to develop fruitful collaboration not only with large enterprises, but also

with medium-size industrial firms in Austria.

In this respect we take into account that the Austrian economy is shaped by

the existence of a substantial number of efficient small and medium-size

enterprises. The relations with these specialized and productive enterprises have developed well in the last few years and will be further

strengthened also in the future.

It is noteworthy that some of these plants, especially in the machinebuilding industry, already participate in investment and rationalization

undertakings in the GDR. During our talks the delegation was presented

with the request to conclude agreements on mutual economic cooperation with

more medium-size enterprises of the machine-building sector. Since this

practice had already proven to be successful, we agreed in principle to

this request.

The continued progress in the development of economic relations between the

two states also finds expression in the conclusion of export contracts for

the delivery of machinery and other products. At the same time a number of

contracts was also signed on the import of machinery and consumer goods.

HORIZONT: From your presentations it would emerge that the visit of the

GDR delegation was a successful one.

Guenter Mittag: Yes, it would be fully appropriate to say this. The

meetings with leading personalities of the Austrian government and economy

and the agreements and contracts concluded contribute to a further deepening

of relations between the GDR and Austria in all spheres, just as had been

agreed in the talks here in Berlin between the secretary general of the

SED Central Committee and chairman of the State Council, Erich Honecker,

and the federal chancellor of the Austrian Republic, Dr Kreisky, and as had

also been the subject of negotiations with the chairman of the GDR Council

of Ministers, Willi Stoph.

39
The interest of the GDR in a continuous, stable and long-term expansion of

economic relations between the two states on the basis of peaceful coexistence and mutual advantage has met with the assent of our Austrian conversation partners. We are convinced that this mutual cooperation will be

further consolidated and deepened to the advantage and benefit of our

peoples.

9108

CSO: 2300

40
HUNGARY

PRESERVING FACTORIES SHORT ON FRUIT, VEGETABLES

Budapest MAGYAR HIRLAP in Hungarian 29 Oct 78 pp 1, 5

/Excerpts/ This year the harvest of heat-demanding plants was less than

expected. Therefore, the output of preserving factories has decreased. So

far, the farms have delivered 12,000 carloads less than anticipated, and

the factories have been able to put up only 850 instead of the planned

3,300 carloads of peppers. The crop of peaches, cherries and morellos is

also less than planned. However, as a compensation, yields of apricots

and plums were greater than planned which will help overcome idle plant

capacities to a certain extent.

The Budapest Preserving Factory has finished processing cucumbers and will

finish with the tomatoes in a few days. Less than half the planned quantity

of cucumbers was preserved, and tomatoes fell short of the target by 700

carloads. The factory.received only 56 carloads of peppers instead of the

expected 100. Processing of apples is just beginning, and since the crops

are smaller than last year's, producers are expected to deliver correspondingly less. The cabbage crop was excellent, so there will be plenty of

sauerkraut.

The Bekescsaba Preserving Factory has already exported 600 carloads of green

peas and will sell 150 carloads of dehydrated onions instead of the planned

25 to capitalist markets. On the other hand, it processed barely 40 percent

of the planned amount of peppers and tomatoes. The refrigerating plant at

Bekescsaba quick froze 220 tons of green beans and 700 tons of cut beans.

Two-thirds of the latter were exported to the FRG and England..

The Szeged Preserving Factory is making 800 fewer carloads of canned goods

this year. There is a 15 percent lag, and utilization of capacity amounts

to a bare 70 percent. This is worse than the national average. After the

fruit and vegetable season, the factory will produce canned meat and fish.

Here there is no shortage of raw materials.

The Kecskemet Preserving Factory will not achieve the planned production

value either. Only 42,000 tons of tomatoes, 30 percent less than planned,

were processed. The shortage of eating peppers and peppers for paste was

41
greater still. However, due to a record crop of plums, this plan was

overfulfilled.

The Spice Pepper and Preserving Industry Enterprise!is expected to meet

its planned production goals, although the fact that producers delivered

less eating peppers than anticipated caused problems. Spice peppers, the

principal raw material of the enterprise are ripening slowly. Export

prospects are good, and domestic consumers will receive adequate amounts

of the ground product for their needs.

The problems of the Baja factory of the Hungarian (Refrigerating Industry

are much the same. Although exports up to the third quarter of the year

amount to 16 carloads more to socialist countries and 80 carloads more to

the domestic consumers than last year at this time, exports to capitalist

partners have been only half as great. Most countries had good pea crops,

so that competition is more intense. At the same time the crop of peppers

used to make pritamin paste is very poor, and this accounts for 20 percent

of the factory production value and 30 percent of its capitalist exports.

CSO: 2500

42
ROMANIA

PROBLEMS, SUGGESTIONS ARISING FROM NET PRODUCTION EXPERIMENT

Bucharest REVISTA DE STATISTICA in Romanian No 3 Mar 7.8 pp 1-4

/Article by loan Olteanu, director of the Brasov County Directorate

for Statistics/

/Text/ "We do not need to achieve a high overall production by

all kinds of artifices while material production is falling behind.

Each collective, each section must proceed from the need to ensure

the achievement of material production, the growth of net production. This is the sole real base for radically improving economic

activity, for raising the efficiency of industrial production."

Nicolae Ceausescu.

The recent measures taken at the Plenary Session of the Central

Committee of the Romanian Communist Party, held on 22-23 March 1978,

to introduce, in the second half of this year, the value of the net

production as a basic indicator of each unit and of the overall

economic activity mark and outstanding stage in the overall comprehensive program for upgrading economic-financial management

and achieving an economic-financial system which is capable of

fulfilling the requirements for building a multilaterally developed

socialist society.

Net production — as an expression of the final product — is meant

to quantify the economic units* own effort more comprehensively

and more realistically than other indicators.

By its multiple functions (to stimulate creativity, innovation,

the growth of labor productivity, the reduction of costs per unit

of product, and the saving, by all means, of what involves "materials

expenditure") it has a complex-nature, cumulating the essential

qualitative effects of the work done.

As early as in November 1973» at the joint plenary session of the

Central Committee of the Romanian Communist Party and of the Supreme Council for Economic and Social Development of Romania, Nicolae Ceausescu pointed out that "the indicator of overal production is much too general and involves many gaps, and even results

43
in stimulating the consumption of costly materials and an unjustified production turnover. In many cases overall production

is exceeded while material production is not achieved. The essential factors involve estimating and monitoring the new output,

the new value created by the economic activity. Therefore, we

must introduce net production in our plans, as a main indicator."*

Beginning 1 January 1974, on the basis of the directives of the

November 1973 plenary session and Decision No 1758/1973 of the

Council of Ministers, this indicator was introduced experimentally

at 64 industrial enterprises of countrywide importance, including

three in Brasov County (Tractorul, Rulmentul, and Risnov Tool

Enterprise), in which the release of the pay fund for workers was

based on recalculating the planned fund with the degree of achieving

the net production.

In 1975 this indicator became mandatory for nine enterprises in

our county (Tractorul, Rulmentul, the Bolt Enterprise, the Risnov

Tool Enterprise, Rasaritul Enterprise for Refractory Materials,

the Knitwear Enterprise, the Zarnesti Enterprise for Coated Paper

and Corrugated Board at Ghimbav, and the Baking Enterprise). The

other industrial and construction units statistically survey and

report this indicator without correlating it to remuneration.

Throughout this period of experiment and application of the net

production indicator the Brasov RCP County Committee, through the

County Council for Worker Control of Economic and Social Activity,

the Financial-Banking Commission, college staff, and experts in

centrals and enterprises conducted analyses and studies in these

economic units in order to notify the ramifications and the steps

required for upgrading.

On 15 July 1977» on the initiative of the Brasov RCP County Committee, a round table discussion was organized at the Brasov Rulmentul Enterprise , with this indicator as its topic. It was attended by executives and experts from the nine enterprises, party

officials, representatives of ministries and central institutions

(the State Planning Committee, the Central Directorate for Statistics, the Ministry of Finance, and the National Bank of the

Socialist Republic of Romania), university staff, newsmen, and

others. The discussion brought out the fact that this indicator

is of great importance in terms of wise handling of materials

expenditure, the growth of labor productivity and of economic

efficiency. It is a direct link between the collective of working

people in enterprises and the formation of the national income.

Of course, some methodological improvements are required. They

are related to the breakdown per months and sections, greater expeditiousness in monitoring implementation, especially in the

case of materials costs.

* Nicolae Ceausescu, "Romania pe Drumul Construirii Societatii

Socialiste Multilateral Dezvoltate" (Romania Along the Road of

Building a Multilaterally Developed Socialist Society), Vol 9,

Editura Politica, Bucharest, 1974, p 640.

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The survey of the implementation of the net production plan indicates that in 1976 this plan was fulfilled 10^.3 percent on a

countywide scale (in the nine enterprises a 9.8 percent exceeding

was reported, with all the units implementing their plan target).

In 1977. the plan for all the county was achieved 101.6 percent

and in January 1978, 103.2 percent.

In 1977» though the net production plan for all the county was

fulfilled, some enterprises, however, did not complete the planned

assignments. The main cause of the nonfulfillment was the exceeding

of the planned production costs. A correlation with the indicator

"expenditure for each 1000 lei of marketable output" indicated

that the enterprises with nonfulfillment as to net production in

1977 did not comply with the expenditure for each 1000 lei of

marketable output indicator either. Hence, the net production indicator far more conclusively reflects the local effort and the

economic efficiency of the enterprise.

The experiment of using net production as an indicator for assessing production activity indicates that the enterprises, the collectives of working people have realized this indicator's role in

upgrading organization and management in the implementation of the

tasks for raising efficiency and reducing the consumption levels

for raw materials, supplies, fuel and energy and cutting wastes

and non-cost-effective expenses.

In this context, the net production indicator is a factor of stepping up the efforts to cut operating costs and especially to comply

with the relative consumption levels in terms of fuel and energy.

The determination of the net production, included in operating

costs, involves separating — based on the sources of accounting

data, in the main expense collecting accounts — the primary elements of expenses involving live labor (remuneration for work,

social security dues, and other factors) and those relating to the

type of labor involved (raw materials and supplies, fuel, energy,

amortization, and so on). We must point out that besides the

primary factors of expenses which are distinctively reflected,

some data express complex expenses which incorporate both live

labor and involved labor. In order to break these down into simple

elements of expenses the enterprises sometimes have to resort to

documents of primary accounting.

In this context, some of the proposals advanced for upgrading the

methodology of calculating the net production focus on the need

for adjustments in accounting involving regrouping of accounts or

introduction of analytical accounts separating the expenses in

terms of live labor and materialized labor.

The introduction of these adjustments in accounting could be corral!« ?^ *°J?eaSUJ

e

?

re<*ulred for applying the project for the new

classification of branches because most of the problems are similar.

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The experiment also pointed out aspects which had an impact

on the level of the indicator and which must be taken into consideration in the upgrading and finalization of the methodology

of planning, monitoring, and reporting.

We feel that it is necessary to correlate all the plar. indicators

(especially the production indicators with the financial indicators),

to ensure a greater stability of these indicators, the optimalization of cooperation and the establishment of the calculation of

their impact and of the variation of the unfinished production

balance*

This indicator involves a very sound substantiation of the efficiency factors and compliance with the levels in terms of materials

expenditure, consumption of metal, energy and fuel, on the scale

of the enterprise and especially of the sections. When the correct

and complete breakdown of expenses in sections and the monitoring

of the implementation of material production for all different

products with minimal costs have been achieved, the net production

indicator will faithfully reflect each enterprise's own effort.

Under these conditions net production becomes the central and

basic indicator in the system of plan indicators. This also results in eliminating the current trends of artificial growth of

overall production with all its negative effects. In substantiating

their net production plan the enterprises will proceed from the

material production volume achieved and the planned increase of

net production will be reflected both in the volume and in the

quality level of the planned material production. This enhances

the responsibility of all factors in decision-making, more rigorously substantiates the plan, and ensures a permanent emulation

for new developments and innovation, amplifying materialized

prospective thought into a mobilizing technical plan. Moreover,

the levelling trends in incomes will disappear and self-management

°7iYnC

ts and the PrinciPles of ethics and equity in remuneration

will be reinforced. In this context, the increase in the direct

incomes of working people and state accumulations would closely

follow the line of the growth of production and efficiency.

In our view, the essential problem which arises involves switching

from the net production derived from the overall production —

to which most economists reproach the fact that it takes over

the "deficiencies" of overall production — to an overall production derived from net production, that is to a system of indicators which focus on net production, with the others having a

derivative nature. This orientation, however, depends on the

switch from production planning with the focus on the value basis

to one with the focus on the material basis and from the preponderantly quantitative facets to the preponderantly qualitative

facets, in the spirit of the decisions of the National Party Conference and the working session of the Central Committee of the

Romanian Communist Party held on 7 March 19?8.

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The planned increase of net production at the enterprise level

must contain the absolute increase in the remuneration fund in

the limits allowed by the real growth of labor productivity and

the absolute rise in the net income obtained, materialized mainly

in the profit. Consequently, net production provides the prospect

for ensuring an actual incentive for working people in direct

relation to the quantity and quality of the efforts made and the

increase in their involvement in the overall development, harmoniously combining the personal interests with the collective

and overall interests. To the extent that a portion of the net

income wil be used for self-financing, there will be greater efforts of the enterprise to increase the net income. This will

amplify the principle of self-management and of worker selfdirection, i

As for the economic units with cooperative relations, in order

for net production to faithfully reflect the local effort it is

necessary to clearly dissociate the previous material expenses,

which are expressed by the value of the "cooperation received"

from the "local" material expenses, which are the responsibility

of the collective of the units involved/This would eliminate the

factors which are now hindering greater specialization and cooperation in production.

It is our firm belief that as a result of the clarification of

some problems posed by enterprises during the period of the experiment and the upgrading of the methodology, this indicator

will meet the qualitative requirements of economic growth and

will become a significant tool in planned economic management.

11710

CSOt 2700

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YUGOSLAVIA

BRIEFS

HOUSING FIGURES FOR 1977—The number of apartment buildings in our country

increased last year by 1.8 percent, and the number of apartments, by 4.2

percent. Apartments in the socialized sector increased by almost 4 percent, and apartments in the private sector, by 7.7 percent. According to

the latest data which the Federal Institute for Statistics gathered from

the self-management interest associations for housing, about 70,585 apartments were added to all available housing, and 20,475 apartments were either

torn down or converted to other uses. The largest number of such converted

apartments was recorded in Bösnia-Hercegovina and in Slovenia. The housing

administrated by the interest associations for housing includes 48,732

apartments built from the solidarity fund. This is a 30-percent increase

over 1976. Solidarity in the construction of apartments is especially visible in Bosnia-Hercegovina, where the number of apartments built with solidarity funds doubled. The working people of Montenegro distinguished themselves also by solidarity in this very important area; about 90 percent

more apartments were built here from solidarity funds than in 1976. About

11,534 apartments in the entire country were built or bought from these

funds. At the beginning of this year also included in all available housing

were 16,012 apartments intended for participants in the People's Liberation

War. About 24.613 billion dinars were associated (centralized) in the selfmanagement interest associations (for housing) in 1977, which is 40 percent

more than previously. [Zagreb VJESNIK in Serbo-Croatian 9 Sep 78 p 5]

TOURIST EXCHANGE WITH USSR—Thanks to the Soviet and Yugoslav tourist

agencies, about 150,000 Soviet citizens visited our country and as many of

our tourists visited the USSR in 1978. However, only 600 Soviet guests

visited Dalmatia. With a more successful cooperation, an increase of 20

percent is expected next year, which means that less than 1,000 guests from

the USSR will visit the coast; and there will be a corresponding increase of

our citizens traveling to the USSR. This number is still insignificant in

comparison to the exchange of guests with other socialist countries. One

of the reasons for such a situation is that tourist agencies are no longer

capable of granting credits for travels abroad, and considering the high

prices of travel arrangements for the USSR, the number of interested guests

xs considerably smaller than for other closer countries. In spite of an

insignificant increase in tourist exchange up to now, a 50 percent increase

48
in tourist traffic is expected in the next Soviet 5-year plan as compared

with the past period. The highest increase will be in 1980 during the

Olympic games in Moscow, when 360,000 Yugoslavs are expected to visit the

capital of the USSR. [Split SL0B0DNA DALMACIJA in Serbo-Croatian 18 Sep 78

P 3]

TANKERS BUILT BY JAPANESE SHIPYARD—The Zadar Jugotanker, the work organization of the Yugoslav tanker fleet, received another ship recently. The

bulk cargo ship, Novigrad, of 22,250 tons capacity, was launched in the

Japanese Ishikawaima Harrima shipyard. This is the fifth and last bulk

carrier from the so-called Japanese program for the Zadar tanker fleet.

Prior to the Novigrad, the Gospic, Molat, Rudo and Nin tankers were built.

The Zadar Jugotanker has now at its disposal a fleet with the total capacity

of over 750,000 tons. [Zagreb VJESNIK in Serbo-Croatian 19 Sep 78 p 4]

CSO: 2800

END

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