The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1929-06-06
new USSR-
PACT WILL spur
SOVIET INDUSTRY
Many New Factories
Are Planned

In connection with the contract
signed at Dearborn, Mich, between
the Ford Motor Company and the
Supreme Economic Council of the
Soviet Union and the Amtorg Trad
ing Corporation of N. Y, Valery
I. Meshlauk, vice -chairman of the
Supreme Economic Council, and Saul
G. Bron, chairman of the Board of
Directors of the Amtorg, stated yes
terday:
"This contract is result of the
recent decision of the Soviet Govern
ment to build an automobile factory
in the U. S. S. R. to produce 100000
cars per annum. The type of car
to be turned out in this plant will be
the Ford passenger car Model A and
the truck Model AA. The Ford
Motor Company will supply US with
all the plans and other technical
data required in order to organize
the factory and to carry on produc-
ton in the most efficient manner"
For Nine Year Term.
"The contract is for term of nine
years and therefore provides for
technical cooperation between the
Ford Motor Company and the Soviet
Automobile Trust for five years
after the completion of the factory,
which is expected to be put in opera
ton within four years. Ford en-
gineers will visit the Soviet Union
from time to time as the need for
their assistance may arise. The So
Wet automobile workers will be To-
Gated at Nizhni-Novgorod on the
Volga River and will produce more
trucks than passenger cars.
"Until this plant is completed the
demand for cars in the Soviet Union
will be supplied by the domestic pro-
duction and chiefly by imports from
abroad. In particular, we shall pur-
chase from the Ford Motor Company
during the next four years about
$30,000,000 worth Of cars and parts.
CSHeGS Ill view Era.
"This contract ushers in a new
era in the automobile and in the
general industrial development of
the Soviet Union. The insufficiency
of transportation means has been
one of the greatest handicaps to the
growth of industry in our country.
In this connection it need only be
stated that the Soviet Union, with
its rapidly growing industries, pos
sesses only 10000 cars, and is prob
ably the least advanced in this re-
spect of any of the large European
countries. However, an indication
that the problem is receiving ade-
quate attention is the fact that this
years $150,0O0,O00 has been appro-
priated for road construction by fed
eral and local authorities.
Gwen with the production of the
new plant and the imports con-
templated during the coming years,
the supply of cars in the Soviet
Union will fall far short of the de-
mand. For instance, to serve
adequately the 10000 tractors now
in operation in the country would re-
quire 100000 cars alone.
To Push New Industries.
"The construction of the new auto
mobile plant is part of the general
Soviet program for the Inauguration
of many new industries in the coun-
try. A tractor factory with a
capacity of 10000 machines per year
was started last year at Stalingrad
and construction of another tractor
factory with similar capacity is to
be commenced shortly. The tractor
plants at Leningrad and Kharkov
are being re-equipped for larger
capacities.
Several large power plants are
under construction as well as many
factories for the production of fer
tilizers, paper, electrical equipment
and other products.