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JPRS 84698

7 November 1983

USSR Report

INTERNATIONAL ECONOMIC RELATIONS

No. 65

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USSR REPORT
INTERNATIONAL ECONOMIC RELATIONS

No.

CONTENTS

USSR WORLD TRADE

Soviet Foreign Trade for January-June 1983

Foreign Trade Official Reviews Extent of Trade

East-West Trade Relations Viewed

JPRS 84698
7 November 1983

(FOREIGN TRADE, 2 9, Sep 83) eee eee eee eeeeeeeeeeeeeeee 1

(G. Zhuravlev: SOVETSKAYA TORGOVLYA, 4 Aug 83) .....++.+- 5

(Alexander Belchuk; MOSCOW NEWS, No 37, 18-25 Sep 83) 10

Soviet Imports of Transportation, Energy-Processing Equipment
(Stanislav Volchkov; FOREIGN TRADE, No 9, Sep 83) ..... 13

USSR-CEMA TRADE

Soviet Scholar Views Prospects of CEMA Development

(Yu. S. Shirayev Interview; TRUD, 21 Jun 83) ..cceeeees 27

IBB Projects, Balances Summarized
(Albert Belichenko; FOREIGN TRADE, No 9, Sep 83) ...... 31

TRADE WITH INDUSTRIALIZED COUNTRIES

Soviet-Western Licensing Agreements Detailed

(Vladislav Malkevich; FOREIGN TRADE, No 9, Sep 83) .... 39

TRADE WITH LDC'S

Economic, Technical Cooperation on the Soviet Union With Developing
Countries

(Taceush Teodorovich; EKONOMICHESKOYE SOTRUDNICHESTVO

STRAN~CHLENOV SEV, No 5, May 83) .occccecceseveeerevees 46

Briefs

USSR-Afghan Cooperation

54
(III = USSR - 38a]

CENERAL

Currency Rates, Underlying Pationale Reviewed
(Various sources, various dates) ceccccccccceeeeeeeeeeees

1 September Rates, by Ye. Zolotarenko
Rate Changes Explained, by V. A. Gromov

Moscow International Trade Center Described
(Viktor Yevkin; MOSCOW NEWS, No 35, 4-11 Sep 83) weceeees

Oil and Gas-83 Exhibition in Baku, Western Comments
(Valery Grigoryev; MOSCOW NEWS, No 42, 23-30 Oct 83) ....

USSR WORLD TRADE

SOVIET FOREIGN TRADE FOR JANUARY-JUNE 1983

Moscow FOREIGN TRADE in English No 9, Sep 83 Insert

[Text] Soviet Foreign Trade | by ( Groups of Countries
—— i
TOTAL “Ga a i ae
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C$0: 1812/12

USSR WORLD TRADE

FOREIGN TRADE OFFICIAL REVIEWS EXTENT OF TRADE
Moscow SOVETSKAYA TORGCOVLYA in Russian 4 Aug 83 p 2

{Article by GC. Zhuravlev, USSR First Deputy Minister of Foreign Trade:
“Trade -- An Instrument of Peace”)

[Text] The Soviet Union has come forth consistent!y in favor of the develop-
ment of mutually advantageous business cooperaticn with all countries irre-
spective of their social system. That was re-emphasized by General Secretary
of the CPSU Central Committee, Chairman of the Presidium of the USSR Supreme
Soviet Yu. V. Andropov in his message to the readers of his book, which was
published by the West German Pal-Rugenstein Publishing House (Cologne). “All
the thoughts of the Soviet nation and its leadership,” Yu. V. Andropov writes,
“can be summarized as the simple and natural desire to engage in peaceful
labor, te live in harmony with other nations, to find a common language with
thes. . .”

The strategic line in the area of the long-range economic development of the
USSR was worked out by the 26th CPSU Congress. Subsequently it was developed
and supplemented by the decisions of the subsequent Plenums of our party's
Central Committee, particularly the May and November 1982 and June 1983
Plenums of the CPSU Central Committee.

After the 26th CPSU Congress a large amount of work was done to ful*ill the
economic and social tasks that had been posed for the country. As during all
the previous stages of our social construction, an important role in their
resolution was given to foreign trade. During the ‘<irst two years of the
five-year plan, Soviet foreign-trade turnover increased by 2/ percent as com-
pared with 1980 and last year reached 119.¢ billion rubles. Export came

to 63.2 billion rubles, and import to 56.4 billion rubles.

At the present time the Soviet Union trades with 143 countries. As has been
the case previously, the highest rates of development have been noted in

the economic-trade cooperation with the socialist countries. In 1982 the
volume of trade with them increased, as comoared with 1981, by 12.1 percent
and reached 64.9 billion rubles, and their . ‘re in the overall commodity
turnover of the USSK increased from 52.8 percont in 1981 to 54.3 percent.

In the relations with the CEMA member countries, the basic attention is
devoted to implementing an extensive series of integrational measures, and

the concentration of efforts in the chief areas of scientific-technical
progress, including such areas as the creation of technology that economizes
on energy, materials, and labor, and means of automation and mechanization on
the basis of the latest scientific achievements.

However, life requires not simply the expansion of the cooperation among che
socialist countries. At the June Plenum of the CPSU Central Committee it was
emphasized that the Soviet Union is striving for a qualitatively new level of
economic integration. Without that integration it is already impossible today
to imagine the life of the countries in the socialist community. And in

the long-range view, integration will become increasingly profovnd, more all-
encompassing and more effective, reliably guaranteeing the reinforcement of

of the national economies of the participating countries.

One of the fundamental features of the modern world is the increasing role of
the developing countries of Asia, Africa, and Latin America which have been
liberated from colonial aad semicolonial dependence. The Soviet Union has
consistently conducted a course aimed at the mutually advantageous cooperation
with those countries, with the complete respect for their sovereignty and

for noninterference in their affairs. We are currently trading with 101
developing countries. The total vclume of trade with them last year came to
16.9 billion rubles. That constitutes 14 percent of the total foreign-trade
turnover of the USSR.

The country that has become our largest trade partner in recent years is
India. In ite turn, the Soviet Union is the largest trade partner of that
country. The commodity turnover with India in 1982 reached 2.5 billion rubles.

Substantial volumes were achieved last year in the Soviet Union's commodity
turnover with Syria, Libya, Brazil, Argentina, Nigeria, Malaysia, Ethiopia,
and other countries.

The rendering of assistance and aid to the developing countries in their
struggle to overcome their economic backwardness and to reorganize their
international economic relations on a just and democratic basis is the
fundamental policy of our country.

Our economic-trade relations with the industrially developed capitalist
countries in recent years have been carried out in a complicated situation.
That situation was created as a result of the increased activity rate of
the aggressive forces, primarily in the United States, which have been
coming out in favor of breaking off normal relations with the socialist
countries. As was indicated in the joint statement adopted at the meeting
in Moscow of the leading party and siate figures from the seven socialist
countries, which meeting was held on 28 June 1983, on the part of the
aggressive forces one has noted “the increased frequency of their attempts
at interference in the internal affairs of the socialist countries, and of
many other countries; the mutually advantageous economic ties are being
disrupted; hostile campaigns are being launched against the socialist countries;
and other methods of pressure are being employed.”

Under these conditions our government, true to the Leninist policy of peaceful
coexistence, ia continuing to follow the course that is aimed at the

development of stable, mutually advantageous economic ties with those Western
countcties which show an interest in this and wnich answer in a reciprocal
manner.

Despite the existing difficulties, the volume and structure of our trade with
Western countries have not onty been preserved, but have even expanded.

In 3982 the commedity turnover with this group of countries reached 37.7
billion rubles, increasing by 19.3 percent as compared with 1980. The
capitalist countries currently occupy almost one-third of the total foreign-
trade turnover of the Soviet Union.

We are developing stabie economic-trade ties with the Western European
countries, the share of which is approximately 80 percent of the total trade
volume of the USSR with the industrially developed capitalist countries.

The c:ssptry that is the largest trade partner of the USSR among the Western
countriec is the Feteral Republic of Germany [West Germany]. Since the
beginning of the 1970's our commodity turnover with West Germany increased by
more than 10 times. Last year it reached 6.6 billion rubles. In cooperation
vitt, West German firms we have carried out and are now carrying out a number
2 important indusitrtal projects, including those on a compensational basis.

We place a positive evaluation on the statements that were made during an
ficial visit to our country by the West German Federal Chancellor H. Kchl
and Federal Vice-Chancellor, West German Minister of Foreign Affairs
H.-D. Genscher concerning the interest that the West German side has in
‘urther long-range cooperation with our country. We hope that those state-
ments will find their confirmation in concrete stateserts of understanding.
We zre ready for that cooperation.

Soviet-Finnish economic ties are developing favorably. The commodity turnover
with Finland is characterized by a stable tendency toward growth and

last year came to more than 5 billion rubles. There has been an expansion
not only in reciprocal trade, but also in the cooperation in the construction
of industrial projects.

In June 1983, during a visit to the USSR by President of the Finnish Republic
M. Koivisto, there was a broad exchange of opinions with regard to questions
of the status and further development of the economic-trade cooperation
between the two countries. A Protocol governing cocperation between the USSR
and finland in the area of agriculture and the production of foodstuffs was
signed. Thct protocol serves as an amendment to the long-term program for
the development and deepening of the economic-trade, industrial, and
scientific-technical cooperation between the two countries until 1995.

We are continuing to develop our business cooperation with France. There
has been successful fulfillment of the intergovernmental agreements, anc the
commodity turnover betseen the two countries is being maintained at a high
level, although in 198° that turnover was somewhat reduced. Recently a
number of new major agreements and contracts have been concluded with French
firms. The fulfillment of those agreements and contracts can promote the
deepening cf Soviet-French economic-trade ties. This gives an even more
strange appearance to the unfriendly actions that have been undertaken by
the French side, which have complicated the wevelopment of bilateral

The forecign-economic ties of the USSR with such countries as Austria,
Belgium, the Netherlands, Greece, Denmark, Norway, Sweden, Switzerland,

and a number of other Western European countries, are developing, on the
whole, successfully. We continue to be an important and definitely positive
step the adoption by the Australian government of « decision to restore the
cooperation with the Soviet Union in a number of areas.

The lack of progress in many aspects of Soviet-American relations also has

a reflection upon the status of the economic-trade ties between the USSR and
the United States, If one takes recent years and traces the development
during that period of the trade between cur countries, one can note that one
observes here a complete stagnation. The commodity that constituted the basic
share in Soviet-American commodity turnover was grain shipments from the United
States. In the final analysis it is not so much a matter of the volume of
reciprocal trade, as a matter of the kind of atmosphere in which it develops.
The embargoes and sanctions that were imposeu by the former and current U.S.
presidents caused considerable damage to the trade between the two countries,
to American businessmen, and to their Western European associates, and
seriously poisoned the atmosphere of trust in the business world.

The Soviet Union -- and this has been confirmed by history -- has been
subjected, not just once and not just twice, to all kinds of "sanctions" and
blockades. All kinds of campaigns have been organized against it, including
"crusades." The result was always the same: our country, relying upon its
powerful potential, overcame all those obstacles on the path of its develop-
ment. And the ones who proved to be the losers were those who imposed the
sanctions, who issued the calle for those campaigns, who established those
blockades and boycotts. As for the Soviet side, it took and will continue to
take prompt and effective measures to protect its own interests.

This does not mean that we heve put all the American firms on a blacklist

and do not want to have anything else to do with the United States. We take

a respectful and attentive attitude to the efforts of those American companies
which, despite the difficulties, are striving for the development of normal
trade ties with our country. A reflection of the continuing interest that
American business has in trade with us was the successful conducting in Moscow
in November 1982, after a four-year interruption, of a session of the members
of the U.S.-Soviet Trade and Economic Council, in which approximately 500
prominent representatives from the business circles of the two countries took
part.

We continue to be in favor of economic-trade cooperation with the United States.
But it is that kind of cooperation which would be based on equality, mutual
advantage, the observance of contractual obligations, the rejection of discri-
mination, and upon the rejection of a policy of tying questions of reciprocal
trade to problems that do not pertain to that reciprocal trade.

In recent years there has been a slowing down of the development of our

trade relations with Great Britain and Japan, as a result of the fact that those
countries have been following the American policy of sanctions. But this

year, it seems to us, in both of those countries there has been an intensifica-

tion of the striving for a more constructive approach to the economic-trade ties

with the USSR. It would seem that the business cooperation between the
Soviet Union and Japan could develop more successfully if that country would
carry out a more realistic and more constructive policy with respect to trade
with the USSR.

Foreign-economic ties are an organic component of the Soviet Union's foreign
policy, which is aimed at the reinforcement of the socialist community, at
promoting the development of the economy for the consolidation and economic
independence of the developing countries, at the maintaining of the principles
of peaceful coexistence, and at the reinforcement of the process of detente

in relations with the capitalist countries.

Lenin's instruction concerning the need to use the trade ties with foreign

countries as an active instrument for the confirmation of the peaceful prin-
ciplies in international life finds constant embodiment in the activities of
our party and our country.

5075
CSO: 1825/78

SSR WORLD TRADE

EAST-WEST TRADE RELATIONS VIEWED

Moscow MOSCOW NEWS in English No 37, 18-25 Sep 83 p 5

Principles and

"The USSR on World Markets.

[Article by Alexander Belchuk:

Practice’ ]

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Foreign econome ties have
incipal
or the
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out the postwar period the system of

become one of the
economic frawth

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Por all that it must be emphasized
that a8 compared with domestic
production and investments, the
volume of Soviet foreign trade
purchases and sales continues to be
relatively modest The USSR is a vast
country with great natural resources
and 4 modern economy No matter
hurw successfully foreign economic
relations may ,
ausiliary element in the Soviet
national economy In the future, too.
the main tasks of scientific and
technical progress will be solved by
our own eflorts

CMEA
IN FIRST PLACE

Central te the USER's foreign trade
are the sxialist states, primarily
countries alfiliated through the
Couns for Mutual Economic Assis
tance (CMEA)

The USSR mainly caports two
major categories of goods to the
CMEA countries machines and
equioment, fuel and raw materials
Mutual deliveries are carried out in
the framework of five year and
annual plans They key economic
problems, including fuel, raw ma
terials, food, and transport, are
wived im accordance with the Com
prehensive Programme for Socialist
tKaonome Integratwm of the CMEA
Cauntries

In the 10708, the fuel and raw
materials problem acquired particu
lat egnificame for the CMEA coun
iries Through purchases from the
USSR the CMEA partners meet
roughly tour fifths of all their import
requirements in this sphere, includ
‘mg cil and oi! products, electricity,
mas, iron and manganese ore, timber,
cotton, etc it should be borne in
mind that throughout the 1970s and
carly 19806 within the CMEA the pri
ces for energy resources and taw ma
terials were considerably lower than
world prices, which made it much
camer lor these countries to adapt to
the new conditions that arose in
connection with a sharp increase in
fuel prices with the outbreak of the
energy crite

On the other hand, the CMEA
member countries are the main sup-
plers of equipment to \ve USER
Their share comprises roughly two.
thirds of the Soviet import of
equipment At the same time, the
Soviet Union is, for these countries,
the principal market for their consu-
mer goods, especially textiles, foot
wear, and furniture, and also fruit
and vegetables

The policy of reaching joint solu.
trons to problems of foreign economic
relations and economy in general is

the main feature of the CMEA
countries’ foreign economic policy.
which is a particularly important
factor in the present complicated
political and economic situation in
the world

DEVELOPING
COUNTRIES -
AN EQUAL
PARTNER

a economic coopera
tion with the Third World, the Soviet
Union renders considerable assis.
tance to the young countries in laying
the foundations of modern industry,
helps them expand their export
markets, and supports their desire for
the restructuring of the system of
international economic relations on
an equitable basis By way of
purchases in the developing countries
the USSR partially or fully covers its
import requiremencs for such goods
as 6tin, natural rubber, bauxites,
phosphates, coffec, cocoa beans,
bananas, oranges, cereals, ‘neat, oil-
bearing seeds, and hard timber. The
import of industrial goods, especially
textiles, footwear, and articles of
artistic crafts, has likewise been
expanding

At to Soviet export to these
regions, it mainly consists of in-
dustrial equipment, primarily com-
plete plants.

In assessing the Soviet Union's
contribution to the economic devel.
opment of the young countries, it
should be borne in mind that Soviet
economic assistance is concentrated
in branches that are of key impor-
tance to these countrits: the power
and metallurgical industries, irriga-
tion and training of technical person
nel. Moreover, the enterprises built
with Soviet assistance become the
full property of these countries. The
payment for Soviet participation is
done, as a fule, not in freely
convertible currency but in goods of
traditional export, which is advanta-
geous for the developing countries

COLD WAR WINDS

Lately, East West economic rela
tions, especially those of the USSR
with the West, have drawn consi-
derable attention. The reason for this
is the transformation of these rela-
tions into an object of active political
interference on the part of the right
wing circles of imperialist countries
As a result, marked changes were
wrought in the trends of the 1970s -
a period when, under the impact of
a general improvement in the inter-
national situation, economic relations
were intensively developing between

Fast and West, and new forms of
cooperation were becoming wide
spread. At the beginning of the
present decade, the situation looked
different. Trade between the two
groups of countries declined in
1981 and this trend continued into
1982
What was the reason?

A number of negative processes in
the world economy and politics have
had their effect on relations between
East and West. Specifically, because
of the crisis in the i
the demand for some ex goods
the socialist countries p nah and
competition on the world markets

. The steep rise in interest
rates in 1961-1982 markedly increased
the cost of international credit, an
inalienable element of trade

However, it's doubtless that the
main damage to these relations was
done bs political factors. The root
cause of this is Washington's hegemo
nistic ambiiions, its claims t» world
leadership, and its increasingly more
avowed anti-communist and anti
socialist stand. In this respect, the
events of the early 1980s go beyond
the framework of the zigzags in
American policy, quite a few of which
could also be found in previous years

SANCTIONS ARE
A HOPELESS AFFAIR,

BUT...

The change in the West's relations,
primarily the USA's, to economic ties
with the USSR and other socialist
countries, commenced under the
Carter administration, but it came to
a head under the Reagan government.
The policy of discrimination was
focused on three spheres. the Siberia.
Western Europe gas pipeline, the
transfer of technology, and credit
restrictions.

As regards the gas pipeline, the
situation is already clear: Washing.
ton's decision to prohibit American
firms, inciuding their subsidiaries in
Western Europe, from taking part in
equipment deliveries for the con-
struction of the gas pipeline in the
USSR sparked such sharp protests
everywhere that the Reagan admi-.
nistration has had to cancel its
sanctions. But in two other spheres
the situation is different. Under US
pressure, the Consultative Croup

ration Committee - an agency
of the NATO countries, set up way
back in the late 1940s to control the
sale of “strategic” goods to socialist
countries — stepped up its activities
And in the spring of 1982, the
Common Market introduced restric
tions on the import of several dozen

goods from the CMFA countries In
19m) 1982, discrimination practies
were widely applied to credit rela

thons

These tendencies were also con
firmed at the meeting of the Big
Seven in Willia ra. where the
leaders of the W Ruropean coun
tries and japan, pressured by the
USA, agreed to link trade and econo
mi relations between East and West
to the “security interests” of the
NATO countries

A trade blockade and the fold up ot
scientific and technical ties are by far
not new methods of struggle against
the socialist states. The hopelessness
of this was ——— admitted in the
West Nevertheless, some politicians
have tried to use them again and
main in the hope of arresting the
coonome growth of the USSR and
other CMEA countries This policy is
based on caxaggerated notions con
corning the rule of Western techno
logy in the development of the Soviet
economy But it # common know!
edge that a trade biockade was
incapable of hampering the devel
opment of the USSK's economy even
mm the first years of Soviet power
Such methods have even lees chances
of success now that the CMEA
countries possess a powerful econo
ma potential

VOLUME OF THE USSR’s FOREIGN )
TRADE BY GROUPS OF COUNTRIES
(1,000 million roubles)

1970 19860 1982
Total
Turnover 22.1 4.1 1196
Export 15 #6 63.2
port 106 445 44
Socialist countries
Turnover 144 #6 666
Export 75 649 M2
port 69 23.7 ws
Industrialized capitalist
countries
Turnover 47 5 37.7
Export 22 68 168
port 25 17 169
Developing countries
Turnover 30 120 169
Export is 69 102
Import 12 51 67

1812/270

On the other hand. the policy of
sanctions has introduced clements of
instability, mistrust and insecurity in
trade relations, to say of ‘the
fact that the entire at re of
mutual relations is generally being
poisoned, Pearing unpredict com
plications, some Western firms ats
tained from concluding contracts
with organizations of the socialist
countries even on products that did
not fall under restrictive measures
At the same time, credit restrictions
compelled many socialist countries to
cut down imports from the West

In this way, the carly 19808 have
seen contradictory tendencies in
economic relations between the capi
talist and socialist countries The cold
war winds have, undoubtedly, done
no small harm to these relations On
the other hand, it is obvious that
economic contacts between East and
West have al become an impor.
tant factor in tons between the
two groups of countries. and the line
towards their fcid-up is meeting with
legitimate in many coun-
tries in the West. ‘

STABLE COOPERATION
IN THE INTERESTS OF ALL

The USSR has taken a consistent

stand on the development of mu
tually advantageous economic rela
tions with the West, first and
foremost those countries which have
shown due concern for this After all.
there can be no de that the West
benefits substantially from economic
ties with the USSR and the CMEA
countries as a whole Soviet contracts
provide for an estimated nearly
two million people In most cases,
Soviet export does not act as a rival to
local production. Por a number of
important products, notably gas, oi!
and oil products, cotton, some non.
ferrous metals, asbestos, etc, the
Western countries have been able to
diversify their supply sources thanks
to purchases from the US6R The
markets of the socialist countries ere
influenced to a much lesser degree by
the fluctuations in the business
situation and ‘afiation than is the
world market. The stability of

Soviet Union not fulfil its
commercial contracts due to political
considerations

Lastly, international economic ties,
especially those between East and
West, an important political role
These relations constitute an econo
mic basis for the policy of peaceful
coexistence

USSR WORLD TRADE

SOVIET IMPORTS OF TRANSPORTATION, ENERCY-PROCESSING EQUIPMENT

Moscow FOREIGN TRADE in English No 9, Sep 83 pp 19-25

(Article by Stanislav Volchkov, general director of V/O Machinoimport, meaber
of the Collegium of the USSR Ministry of Foreign Trade]

Text
ome in October 1983 the All-Union Foreign Trade Asso-

ciation Machinoimport marks the 50th anniversary of
its commercial activity, reflecting the multifarious
work of the entire staff on implementing the Soviet
state’s foreign economic policy. From the first days of
its formation Machinoimport has helped outfit the
Soviet Union’s ..ajor projects with the latest equip-
ment and machinery. The first purchases were elec-
trical engineering products and transport mechanisms.
As the Association advanced the range of the imported
equipment became wider. In the 1940s it included min-
ing, metaliurgical, electrical engineering, power engi-
neering equipment, lifting-and-conveying machines
and also merchant, fishing ships and tugs, timber
carriers and tankers, dredges and floating cranes.

Many electric power stations constructed under the
GOELRO plan (State Plan for the Electrification of
Russia) were fitted out with power engineering equip-
ment supplied under Machinoimport’s contracts.

In the pre-war years the Association imported
equipment for large machine-building factories in the
Urals, Moscow, Leningrad and the Ukraine, motor
works in Moscow and Gorky, iron-and-steel plants in
Magnitogorsk, Orsk, Kuznetsk and Makeevka, coal-
dressing factories and non-ferrous metal works, tractor
and aircraft factories. These deliveries assisted the na-
tional economy to achieve high growth rates and made
it possible to gain time as aga‘nst the time-limits needed
for mastering the production of this equipment af
Soviet factories.

The Soviet staie’s policy aimed at accelerated devel-
opment of its own machine-building industry from ra-
tional import resulied in the fact that already in the
pre-war years the Soviet Union took the first place in
Europe in manufacturing machinery and engineering
products and assured its engineering and economic

World War 11 (1941-1945) required the restruc-
turing of Machinoimport’s activity on providing mi-
litary production and meeting the particular needs of
the national economy. At that period the volume of the
Association’s foreign trade operations increased.
Equipment was supplied for blast and open-hearth
furnaces, coke-oven batteries and rolling mills. Also
were imported excavators, drilling rigs, the first
complete oil refineries, oil-demineralizing and
dewatering installations, etc.

In the postwar period the Association's import
operations actively helped restore many major sectors
of the USSR’s economy such as metallurgy, power
engineering, fuel, machine-building as well as railway
and other types of tranoport.

With the formation of the world socialist system a
new stage in Machinoimport’s commercial activity
began. The socialist countries’ share in the Acso-
ciation’s trade turnover considerably surpassed the vol-
ume of purchases from the industrial capitalist
countries. This became possible thanks to the socialist
countries’ rapid strengthening of economy and devel-
opment of industrial potential.

The expansion of economic ties with the socialist
community countries based on long-term in-
tergovernmental agreements on mutual goods deliver-
ies promoted stable ‘business contacts with many for-
eign trade organizations in these countries.

The share of the socialist countries in the Asso-
ciation’s trade turnover over the last decade exceeds 80
per cent; in the import the share of the GDR is about 27
per cent, Bulgaria—26 per cent, Czechoslovakia—14
per cent, Poland—i3 per cent, Romania—12 per cent,
Yugoslavia—$ per cent and Hungary—3 per cent. On
the average under Machinoimport’s contracts one-
fourth (in cost value) of the Soviet total machinery and
equipmem imports is annually supplied from the so-
cialist countries.

The development of the international socialist di-
vision of labour, deepening of the CMEA member-
countries’ specialization and cooperation in production

build the foundation and form the prerequisites for
socialist economic integration making it possible :o
fruitfully develop the countries’ national economies
and promote a more rationa! and efficient utilization
of natural, economic and manpower resources in na-
tional interests and those of the whole socialist commu-
nity.

Machinoimport makes a ponderable contribution
to cooperation based on agreements on production,
specialization and cooperation in manufacturing in-
dustries. In the deliveries of machinery and equipment
imported by the Association from the socialist
countries the portion of special-purpose products is
ever increasing and in the current year will reach 78 per
cent. For the 1981-1986 period Machinoimport is to
implement 41 agreements on specialization and coop-
eration in production which concern practically all
CMEA member-countries.

Machinoimport has stable business contacts with
the socialist countries’ foreign trade organizations such
as: Balkancarimpex, Electroimpex, Isotimpex,
Technoexportstroy (Bulgaria); HSCF', NIKEX, Ganz
Mavag (Hungary); Elektrotechnik, Technocommerz,
Maschinen-Export, Schienenfahrzeuge (GDR); Elek-
trim, Bumar and Koimex (Poland); Industrial export-
import and Electro-export-import (Romania); Pra-
goinvest, Skodaexport, Technoexport and Strojexport
(Czechoslovakia) and Energoinvest and Rade Konéar
(Yugoslavia).

On account of agreements on specialization and
cooperation in production these foreign trade organi-
zations, under Machinoimport's contracts, supply the
Soviet Union with freight and passenger cars, diesel
locomotives, hydro-engineering equipment, industrial
fittings, equipment for drilling and extracting oil and
gas, locomotive and gantry cranes, oil-refining equip-
ment, electric motors, gas turbine installations,
compressors and pumps, low-voltage and high-voltage
electrical equipment, truck loaders, crane trucks, steam
turbines and other equipment.

In line with the Comprehensive Programme for the
Further Extension and improvement of Cooperation
and the Development of Socialist Economic Integ-
ration of the CMEA member-countries Machinoim-
port’ carries out work on realization of the in-
tergovernmental agreements on constructing industrial
projects on Soviet territory for which the participating
countries supplied equipment in exchange for products

which vill be delivered to them after the project is put
into operation. The Association began this work in
1974 and at present the deliveries of machinery and
equipment for the Kiembayev mining and ore-dressing
complex, the Ust-Ilimsk cellulose factory, the Oren-
burg gas condensate complex, the Soyuz gas pipeline
and the Vinnitsa-Albertirsa high-voltage power trans-
mission line are completed. In the eleventh five-year-
plan period (1981-1985) equipment is being delivered
for the Mozyr factory manufacturing fodder yeast
from paraffins and the South-Ukrainian atomic power
station.

The Association also undertakes commercial ope-
rations on interrelated deliveries of most vital goods
specified by the CMEA member-countries’ state plans.
Under the relevant agreements the Associaiion
supplied equipment for developing the production of
ferro-alloys, ferriferous raw material, rolled ferrous
metals and oil extraction and refining in the USSR.
These enterprises’ products, in their turn, are shipped
to the countries participating in the agreements: Bulga-
ria, the GDR, Hungary, Czechoslovakia and Romania.

Over many years the Association, along with the
import operations, exported mining, elecirical engi-
neering, lifting-and-conveying equipment, marine
diesel motors, diesel-generators and railway rolling-
stock including steam locomotives. With the setting up
of new All-Union Foreign Trade Associations Sudoim-
port, Machinoexport, Techmashexport and Energoma-
chexport the export operations were transferred to
these organizations.

Since 1966 Machinoimport has concentrated on im-
port operations. Only since 1979 has it been handling
the export to the socialist countries of completing
equipment for railway rolling stock purchased by the
Soviet Union from the GDR, Poland, Romania and
Hungary.

Railway rolling-stock has been the Association's
major import item in all the years of its activity. For
many decades now the Association has been importing
electric locomotives and equipment for traction
substations.

In 1956 the Soviet Union adopted a general plan for
electrification of railways. In line with this plan the
Associaiton purchased 70 electric locomotives, includ-
ing ten passenger ones, from France and the Federal
Republic of Germany. In 1957 Czechoslovakia began
to deliver the CS main-line passenger electric locomo-

tives to the USSR. These electric locomotives were
constantly improved. This year the first eight-axial AC
passenger locumonives assuring a speeu of 150 km/h at
prolonged gradient sections are to be tested.

On the occasion of the 25h anniversary of Soviet
and Czechoslovak specialists’ fruitful cooperation the
year 1982 was ceremonially marked by the delivery of
the Czechoslovak 2,000th electric locomotive.

Since 1949 the Association has bought from the
GDK and Czechoslovakia | ,420 industrial electric loco-
motives and truck tractive units for large enterprises in
the mining, metallurgical and coal industries. At
present on the basis of modernization of the EL type
mine electric locomotives 200 of them are to be
supplied to the USSR annually by the GDR. At the
same time the EL-2! thyristor controlled industrial
electric locomotives with more powerful rheostatic
braking are being designed and tested. Since 1964
Czechoslovakia has been delivering the CME-3 shunt-
ing diesel locomotives, the total number of which ex-
ceeded 4,000 machines, thus composing more than half
of the fleet of the shunting diesel locomotives in the
Soviet Union.

In the 1960s and 1970s the wide development of gas
and oil fields in Siteria and the Extrem North of our
country began. Due to this, large-scale construction of
pipelines and enterprises of the oil, gas and chemical
industries was undertaken. That is why in 1965 the
Association stopped purchasing individual units for
oil-refining, gasoline reforming and diesel fuel hy-
drofining installations and began to buy complete oil-
refining plants from the socialist and capitalist
countries. Over this period Czechoslovakia supplied 14
complete catalytic gasoline reforming installations
(productivity 600,000 and one million tons of high-oc-
tane gasoline per year) and eleven diesel fuel hydrofin-
ing installations (productivity 1.2 and two million tons
per year). These complete installations were designed
on the basis cf Soviet technical documentation. Thanks
to these deliveries the capacity of the petroleum re-
fining industry for the secondary oil-refining processes
was increased by 27 million tons.

During the same period the GDR delivered 16
complete gasoline catalytic reforming installations and
two diesel fuel hydrofining installations (productivity
1.2 million tons each).

Since 1972 the GDR has delivered 12 complete
primary oil-refining installations with the ELOU-

AYT 4 electric demineralizing plants (annual producti-
vity six million tons of oil each).

In 1978 the Soviet industry received from the GDR
ten Parex complete installations (productivity 120,000
tons of normal paraffins per year) used for manufac-
turing protein-vitamin preparations and also more than
30 installations for collecting and pre;aring oil.

For more than 20 years the Association has been

mania.

In the ninth five-year-plan period (1970-1975) the
Soviet Union widely developed the gas extracting and
gas-processing industries. The oil and gas construction
programme envisages further growth of the work vol-
ume, its shifting to the northern regions of Wen
Siberia; it is one of the most important links in the

long-term power engineering programme.
in the 1970s Czechoslovakia started delivering

regularly Ladoga and then Avrora gas-pumping plants
manufactured under the Soviet technical documen-
tation to the USSR. |

In 1978 Machinoexport imported eight complete
vertical suction pumps for the Siberian trunk gas
pipelines.

The country’s largest trunk gas pipelines supplying
products-to Soviet and foreign users are: Saratov-Mo-
scow; Dashava-Kiev; Orenburg-Novopskov; the Soyuz
pipeline; Urengoi-Oryazovets-MOK,*; Bukhara-Cen-
tre; Urengoi-Petrovsk; Urengoi-Novopskov, and
Urengoi-Chelyabinsk which, besides Soviet equipment,
were outfitted with gas-pumping equipment and line
facilities supplied under Machinoimport’s contracts
with firms in Great Britain, Italy, France and the FRG.

Equipment deliveries for constructing the Ust-
Balyk-Ufa-Almetyevsk, Aleksandrovskoye-Anzhero-
Sudzhensk, Ust-Balyk-Omsk and Khoimogory-Centre
were not less efficient.

Over the 1981-1985 period it is planned to complete
the work volume surpassing the indices achieved during
the previous fifteen years and the country’s gas con-
sumption in the next decade will double. For the firs
time in the world a multiple system of transcontinental
trunk lines in a single lane (internal pipe pressure
100-120 atm) is under construction in the Soviet Union.

In this connection Machinoimport in 1981 and 1982
carried out much work on placing orders and organiz-
ing timely equipment deliveries from the FRG, Japan,

year) was purchased.

The USSR Ministry of Oil Industry ordered and
received 19 Unioflax type furnaces for preparing stock
tank oil for shipping and a set of equipment for the
gas-lift oil extraction at the Samotlor and Fyodorovka
oii-fields in West Siberia t! anks to which the operation
of boreholes will assure an optimum automated re-
gime.

Over the 1966-1983 period France supplied a great
number of complete installations for the USSR Min-
istry of Ojil-refining and Petrochemical industry.
Among them are installations for catalytic gasoline
reforming and hydrofining diesel fuel, for hy-
drocracking and also for manufacturing paraffin and
calcinating oil coke.

Most powerful and perfect installations, assuring
the output of three million tons of high-quality pe-
troleum products per year, were supplied for the No-
voufimsky oil refinery.

The English firm Petrocarbon delivered, under Ma-
chinoimport’s contracts, complete installations manu-
facturing sriphonate additives for automobile and

diese! motor oils prolonging the life of engines and oils
to the Volgograd and Omsk oil-refining complexes.

Tarmac, an English firm, supplied the Omsk pe-
troleum-refining complex with a complete installation
producing lithia lubricants (productivity $,000 tons per
year).

Machinoimport imported natural gasoline extrac-
tion plants processing casing-head gases which reduce
casing-head gas losses and increase the output of high-
purity hydrocarbons, a valuable raw material for
synthetic rubber factories and other industries.

Four installations for calcinating oil coke (producti-
vity 140,000 tons per year) used for manufacturing
electrodes for smelting aluminium and copper, were
receive: from the FRG and put into operation.

In Surgut, Belozerny and Nizhnevartovsk highly-
productive gas-processing factories supplied from
Japan are operating. Their raw materials are casing-
head gases which before were burnt in torches at West
Siberian oil-fields. These factories ensure the pro-
duction of additional millions of tons of propane,
butane and other products utilized in the chemical
industry. In the post—war years
rapid development of the mining in-
dustry, especially open-cast mining
of minerals, required highly pro-
ductive continuous-acting stripping
equipment.

Ai that period the home in-
dust7y could not ensure the ever-in-
creasing stripping volume that is
why between 1956 and 1968 Ma-
chinoimport bought from the
GDR, Czechoslovakia and the Fed-
eral Republic of Germany stripping
equipment with a total productivity
of 220 million cubic metres of over-
burden rock a year, which made
possible within a short period of
time to put into operation a number
of large opencast collieries for the
production of minerals and
building materiels.

The designing and construction
of new quarries to produce iron ore, manganese,
sulphur and other minerals was based, as a rule, on the
technological principle of open workings using the con-
tinuous operating equipment.

20 ’

The Seviet Union imported 12 siripping complexes
comprising a bucke:-wheel excavator (productivity
7,209 cubic metres per hour), a soreader (productivity
8,800 cubic metres) with a 15C m consoie, and bel
conveyer systems.

The purchased stripping equipm 2nt made it possi-
ble rot only to reduce extraction costs but substantially
increase labour productivity and made stripping ope-
rations fully mechanized.

In the current five-year plan period excavators with
bucket capacity from 12.5 to 20 cubic metres are being
imtroduced at new opencast collieries. At the Neryungri
opencast mine excavators with 20 cubic-mrtre buckets
purchased by the Association from the Japanese firm
Sumitomo take care of fifty per ceni of the stripping
volume.

Twenty-two excavators with 16 cubic-metre
buckets, bought in 1983 from Japan, will increase
coking coal output in Kuzbass. They will lift 60 million
cubic metres of rock volume per year.

Between 1959 and 1962 the deliveries of equipment
for complete coal-dressing factories under Machinoim-
port's contracts with the French firm Venot Pic, one of
the most advanced at that time, greatly assisted in
fulfilling tasks for quick introduction of the latest
coal-dressing methods in the Soviet coal industry. The
commissioning of three coal-dressing factories in Don-
bass promoted wider dissemination in the USSR of a
progressive method of coal-dressing in heavy media.

For coal-dressing production West German firms
supplied equipment for the Belovo central dressing
factory (Kuzbass) and the West Siberian iron-and-siecl
works; on the basis cf this equipment operational
experience coal-dressing factories (capacity 5-8 million
tons per year), to be outfitted with Soviet equipment,
are being designed now.

Machinoimport has contributed to the development
of the chemical industry. This sector received electrical
engineering, lifting-and-conveying, power engineering
equipment as well as chemicaily resistant pumps, fans,
g. | blowers, speciz] facilities and fittings made from
high-alloy steels ad special alloys designed for high
pressures and temperatures.

Over recent years the Association's duties were
reduced somewhat due to the setting up of specialized
associations dealing with complete equipment import
for the chemical industry. However, requirements to
technical parameters of pumps and compressors such

as: pressure, explosion risk and high aggressiveness of
working medium, have become more stringent.

The import of a wide range of electrical engineering
equipment: electric motors, generators, rectifiers,
starting equipment, electric welding equipment and
electric furnaces, transformers and complete transfor-
mer substations, high-voltage testing equipment, div-
erse low-voltage equipment, etc. take an important
place in the Association's activity.

For urban transport the Association imports trams.
In 1982 Volgograd ceremoniously celebrated the
10,000th tram-car imported from Czechoslovakia. De-
velopment of towns and growth of their population
and also development of the technical base set forward
new and ever newer demands on improving the tram-
cars. A thyristor-impulse controlled tram-car is sche-
duled for the near future.

The plan for economic and social development of
the USSR envisages for the current five-year-plan peri-
od and for the period ending in 1990 the all-round
introduction of large-scale mechanization and auto-
mation of production processes and steady reduction in
the number of workers engaged in manual labour in all
sectors especially in the auxiliary and transport spheres
including loading and unloading operations.

Machinoimport has for many years actively partici-
pated in accomplishing this important state task by
importing various lifting-and-conveying equipment
from the socialist and capitalist countries.

It began to supply gantry cranes for equipping sea
and river ports even before World War II. As years
passed and foreign trade ties expanded, the import of
gantry cranes began to increase for loading-unloading
operations in the Far Eastern and northern sea ports
and those of the Baltic, Black and Caspian seas.

Due to the necessity to augment the sea ports’
traffic-carrying capacity highly productive tranship-
ment machines and specialized complexes for new
ports being constructed (and for reconstructed ones)
were purchased from other countries. In 1973-1975
delivered and in 1978-1979 put into operation were
unique specialized complexes at the Vostochny port
(Wrangel bay) bought from Japan. This is a tranship-
ment complex (handling capacity five million tons of
coal and 800,000 tons of technological chips per year)
and also a terminal for transhipping 8,000 to 9,000
large-tonnage containers per year.

Wharf reloading cranes for containers (weight up to
40 tons), automatic container carriers, gantry cranes
imported by the Association helped mechanize bulk
cargo handling operations in the Soviet ports: Batumi,
Zhdanov, Murmansk, Ilyichevsk, Nikolayev, Riga,
Leningrad, Arkhangelsk and Magadan.

Pneumatic installations for transferring grain from
ships to wagons (productivity 300 and 150 tons per
hour) bought from the FRG and Japan for the USSR
Ministry of Merchant Marine and the Ministry of River
Transport of the RSFSR are a certain contribution in
accomplishing the tasks set in developing the agro-in-
dustrial complex. Hungary and the GDR also supply
these large customers with gantry cranes (load capacity
$ to 40 tons), the number of which over the last decade
alone exceeded | ,300.

GDR-made locomotive cranes perform emergency
operations and are used for various loading and
unloading and construction and assembly operations
when mounting bridge spans, car retarders, and trans-
formers at traction substations. The USSR Ministry of
Railways has already received over 300 such cranes.

The Finnish firm Kone delivers large-tonnage gan-
try cranes for the Soviet Union's shipbuilding and ship

repair enterprises.

Electric telphers received from Bulgaria reduce
manual non-mechanized labour. In 1983 the
1,000,000th telpher was delivered.

Since 1959 Bulgaria has been specializing, with
Soviet and Czechoslovak technical and financial assist-
ance, in manufacturing floor transport machinery:
electric loaders, electrocars and auto loaders. All in all
the USSR hus received almost 300,000 of them.

Over recent years Machinoimport purchased diesel
loaders (load capacity ranging from 1.5 to 30 tons)
from Japan, Great Britain, Sweden and Finland for
loading-unloading operations on ships, railway wagons
and also in the forest industry.

Machinoimport actively participates in imple-
menting the USSR Food Programme by importing
machinery and equipment for developing the country's
agro-industrial complex: special rolling-stock, elec-
trical engineering equipment, shop floor transport ma-
chinery, special loading-unloading facilities, heating
boilers for greenhouses, and pumj for watering
systems.

possible to open new raw material and industrial re-
sources along 3,500 kilometres of its route, plays a
decisive role in further developing Siberia and the Far
East where almon thzee-fourths of the forecasted res-
erves of the USSR major mineral resources are con-

Railway (Baikal-Amur Railway-Tynda-Berkatit is a
railway north of the Trans-Siberian Railway line) and
developing the South- Y akutian coal complex.

Construction of the Baikal-Amur Railway is near-
ing completion. It is still being built and the completed
lines are already operating. Building materials, facili-

ties, machinery and equipment are delivered to Ne-
ryungri and other towns and settlements in Yakutia

and the Far East from the country’s industrial regions
without transhipment making the freight conveyance
to this region much cheaper.

In May 1979 Machinoimport was reorganized into
the All-Union Self-Supporting Foreign Trade Asso-
ciation comprizing eleven specialized firms: Elek-
trotechmash, Kranoekskavator, Gathydromash, Ener-
gosila, Promarmatura, Podyomtransmash, Elektro-
aviokar, Zheldormash, Inzhservismash, Electro-
lokomash and Gazneftemash.

In line with its Charter the Association undertakes
export-import operations on the Association’s range
and measures assuring the uninterrupted operation of
the machinery imported to the USSR.

Besides purchasing spare parts for new equipment,
and for guarantee maintenance, the Association an-
nually, in ever increasing volumes, imports spare parts
for equipment now in use. The delivery of spare parts
to the centralized supply depots under Gossnab (the
USSR State Committee for Material and Technical
Supply) has become common practice. Amalgamation
of the recipients has made it possible to provide the
imported equipment with spare parts more efficiently
and quickly. Servicing and maintenance stations are set
up by agreement with foreign suppliers. All this activity
is, in the main, undertaken by the firm Inzhservismash.

Matters concerned with timely putting the supplied
equipment into operation, contract supervision work at

Start-up projects, training Soviet specialists in foreign
countries and in te USSR in the course of assembling,
adjusting and putiing the equipment into operation,
with the receipt of equipment by the customer's spe-
cialists at the producer factory, including technical
documentation and specifications for the complete sets
of equipment, participation in testing industrial pro-
tot) oes and other undertakings assuring the import of
high-quality equipment—all within the contracted
time-limits take an important place in the activity of the
firms comprising the Association.

departments are of paramount importance for the
successful achievement of production targets, for im-
proving specifications, expanding the range of equip-
ment and making it more sophisticated. The Ma-
chinoimport's Board includes representatives from ma-
jor customer ministries. Among them are: the USSR
Gossnab, the USSR Ministry of Gas Industry, the
USSR Ministry of Railways, the USSR Ministry of
Oil-Refining and Petrochemical Industry, the USSR
Ministry of the Chemical and Oil Engineering In-
dustry, the USSR Ministry of Merchant Marine, the
USSR Ministry of Electrical Engineering Industry, and
the USSR Ministry of Oil Industry.

Over the many decades of cooperation, good busi-
ness relations have been established among Soviet part-
ners. They reflect the customers’ high confidence in the
experience and executive capabilities of the Asso-
ciation’s staff as its traditional method of work. Such
contacts assist a more sophisticated and efficient
solution of production problems to be found.

The course of the Soviet Government set at ex-
panding foreign economic ties and more effective utili-
zation of possibilities and advantages of the inter-
national division of labour is realized in the increased
role foreign trade plays in the Soviet economy.

To raise the effectiveness of foreign trade efforts
are Ueing exerted to perfect the Association’s activity,
improve the quality and technical level of equipment
purchased and deepen contacts with the Soviet Union's
branch ministries, departments, research institutes and
planning organizations.

Machinoimport over the past fifty years has contri-
buted to the Soviet people’s labour exploits, partici-
pated in accomplishing many governmental tasks on
developing the USSR’s national economy and became
one of its largest specialized foreign trade organi-
zations well known in the world.

cso:

Machinoimport’s commercial activity has many
times been complimented by the Soviet Government
and the Administration of the USSR Foreign Trade
Ministry. In 1980 Machinoimport was presented with
the International Gold Mercury Award for its contri-
bution to the development of production and inter-
national cooperation.

Machinoimport’s staff is ready for the further ful-
filment of even more responsibie tasks widely utilizing
the possibilities of the international division of labour
in the interests of peaceful development of all countries
and nations.

’ Hungarian Shipyards and Crane Factory.
7 MOK —the Moscow district circular line

"Vneshnaya torgoviya" 1983.

English translation, “Foreign Trade" 1983.

1812/15

USSR-CEMA TRADE

SOVIET SCHOLAR VIEWS PROSPECTS OF CEMA DEVELOPMENT
Moscow TRUD in Russian 21 Jun 83 p 3

[Interview with Corresponding Member of the USSR Academy of Sciences Yu. S. Shi-
rayev, director of the International Institute of Economic Problems of the World
Socialist System of CEMA, by P. Barabas, special correspondent of the trade union
newspaper NEPSZAVA (Hungary), and TRUD special correspondent P. Negoitsa: “Looking
Into the 1980's"; date and place not specified]

[Text] Corresponding Member of the USSR Academy of Sciences

Yu. S. Shirayev, director of the International Institute of Eco-
nomic Problems of the World Socialist System of CEMA, answers the
questions of the special correspondents of TRUD and NEPSZAVA
(Hungary).

[Question] For what will the 1980's in the economic development of the CEMA member
countries be noteworthy?

[Answer] It seems to me that in recent years the scientific and technical revolu-
tion has been developing into an industrial revolution. What do I mean? Not iso-
lated breakthroughs in the area of science and technology, inventions and new proc-
essing methods have been occurring before our eyes. Sectors and, in individual
countries, the national economy as a whole have been changing. In the Soviet
Union, for example, flexible production systems are being introduced. They will be
developed in instrument making and the automotive industry. We already have a num-
ber of subdivisions which have been changed over to a new technical base. Design-
ing by means of computer equipment is also being introduced in the socialist coun-
tries. In other words, a radical change is occurring in the technical base of pro-
duction. And, very likely, this will lead to the shifting of very many emphases in
our economic development. In this connection it is difficult to overestimate the
process of the changeover of the national economy of the CEMA countries to the in-
tensive means of development. Why? Take if only the vital question of shortages.
As statistics show, many of them are derivatives of one thing--the shortage of new
equipment and technology. On the basis of the example of Hungary, which is doing
much for energy conservation, the saving of materiale and fuel, it is possible to
show that the standards of consumption are still high as compared with the ones
which are already possible today, if the achievements of world science and tech-
nology are taken completely into account.

As General Secretary of the CPSU Central Committee Comrade Yu. V. Andropov noted in
his speech at the June (1983) CPSU Central Committee Plenum, the main means to the
qualitative change in the productive forces is the changeover to intensive develop-
ment, the combination in deed of the advantages of our socialist system with the
achievements of the scientific and technical revolution, which promises a radical
technological change in many spheres of production.

[Question] You have named several, it can be said, global tasks, which the CEMA
countries plan to accomplish during the next decade. What role is being assigned
in their accomplishment to the cooperation of the socialist countries?

[Answer] In responding to your question, I wish to cite a number of examples. Re-
cently I looked over a selection of new technical decisions in microprocessor engi-
neering, which is, in my opinion, a unique cross-country vehicle of modern produc-
tion. There are very interesting decisions in individual CEMA countries. And not
necessarily in machine building. Take if only the GDR or the same Hungary, where
the introduction of these achievements in agriculture, transportation and other sec-
tors is under way. Now it is necessary to solve the problems of microprocessor en-
gineering on a collective basis. The corresponding agreement is already being im-
plemented within CEMA.

Or take computer equipment. If we did not have the corresponding agreement on com-
puters, today we would experience a definite shortage of them. This would also
complicate our balances of payments. Successful cooperation has also been organ-
ized in the area of atomic engineering, without which it is difficult to solve in
the future the problem of power supply in many countries.

While analyzing the achievements of our cooperation, we cannot at the same time
divert our attention from the fact that in a number of countries the growth rate

of production has slowed. It is clear that it is impossible to increase it by tak-
ing a purely wait and see position. It is possible to overcome these problems only
by active economic work, which is aimed at the use of the latest achievements of
science and technology. By working together, we will be able in the shortest pos-
sibel time to implement the agreements existing between the CEMA countries and to
make substantial progress. I want to immediately forestall the erroneous or de-
liberately false interpretation of our cooperation by some ideologists of the West.

[Question] Do you mean the assertion that CEMA membership as if is checking the
cooperation of each individual country with the western world?

[Answer] Precisely. It is important to expose such assertions, wiich are aimed

at the deliberate misinformation of public opinion. In CEMA each country is abso-
lutely sovereign in the choice of a partner for cooperation. But if we take the
recommendations which the International Monetary Fund is giving its members, they,
mildly speaking, are simply inconceivable within CEMA. For example, to whom would
it occur in CEMA to advise Hungary, what structure of plantings it should have?

It is as if in New York it is more obvious than in Hungary itself, which creates
this structure of the plantings. Thus, not CEMA, but individual capitalist states
and their attempts to persistently interfere in the internal affairs of the social-
ist states are checking the cooperation of the socialist countries with the West.
Just what is the aspiration of the West to interfere in the affairs of Poland worth?

The CEMA member countries have always supported extensive all-European and world-
wide cooperation. But everything in this matter does not always depend on us alone.

[Question] What can you say about the present economic situation of the countries
of the community?

[Answer] Just recently we had quite great increases of various resources. Now the
situation has changed: in the CEMA countries, it can be said, the model of eco-
nomic development is changing. This process involves certain costs. But there is
the possibility on the basis of a planned economy to reduce these costs to a mini-
mum, Today the results of the change of the model are visible in a number of coun-
tries. For example, in spite of the difficult conditions, the GDR is maintaining

a quite high growth rate. Matters in Bulgaria are proceeding much better, from the
point of view of the internal balance. As a whole the CEMA countries are now in a
situation, when it is possible to count on the acceleration of the growth rate of
the economy. Of course, here one must not expect complete synchronism from all the
CEMA member countries. But it is quite obvious that the acceleration of growth in
‘some countries will have a positive effect on economic growth in the other coun-
tries. And, of course, the situation characteristic of the West, where today fantas-
tic figures of unused production capacities exist, does not threaten us. For fer-
rous metallurgy alone there is there an underutilization of 230 million tons. Or
take the level of unemployment. In the socialist countries there are no and will
be no such costs.

Among the problems of the economic development of the countries of the community
during the current 5-year period I would also name the worsening of the conditions
of trade with the West and the presence of protectionist barriers, which are pre-
venting individual CEMA countries from paying off their debts, are forcing them to
appeal for new credits and, consequently, to increase the spiral of debt. But in
passing | would like in this connection to note the following: I personally do not
know in the West such countries which would refuse to accept the most modern prod-
ucts. It is a question, apparently, of whether we have them or not, It is possible,
of course, to erect barriers for agricultural exports. For example, if the year
turned out to be good, to force down the prices for agricultural products. The
monopolies operate cunningly in these cases on the international market. But when
there are the most advanced technologies in the export assets, here the most cun-
ning barriers break down. From this standpoint it seems to me that if the CEMA
countries place the emphasis on new technologies and achieve a technological lead
in the sectors where the prerequisites exist for this, many barriers will be elimi-
nated. It is clear that it is possible to accomplish such a task only by collec-
tive efforts. ’

[Question] Perhaps you would cite snecific examples of the successful competition
of products of the CEMA countries on the world market, in spite of all kinds of
restrictions on the part of the West?

[Answer] There are heaps of such examples. If you take the Soviet Union, it is
possible to name hundreds of items. They also exist in other countries, For ex-
ample, Czechozlovakia produces processing centers, which in quality are superior to
similar equipment of the most prestigious West European firms, But here there is
the following detail. In order to create a sufficiently substantial export re-
source of technically advanced goods, frequently the potentials of one country are

not enough. Sometimes some CEMA country develops a new technology and produces
equipment of world class, but its batch production in this case is limited. There
is one solution here: to promptly organize cooperation within CEMA in order to
jointly come out with the latest products on a large scale both on the internation-
al socialist market and on the western markets.

Unfortunately, we have examples of missed opportunities. At one time the CEMA
countries were the first to assimilate new spindleless spinning looms, but did not
set up series production in sufficiently large quantities, and therefore the con-
centrated breakthrough of this product onto the world market did not occur. In
general we need all together to learn not only to work for the domestic market, but
also to create good export items. For this, obviously, it is necessary to coordi-
nate more closely the export policy of the countries of the community, including
their appearances on the western markets. Here it is important not last of all to
regulate the direct production ties between our countries and to create for the
realization of these ties, as well as for the formation in necessary instances of
joint firms the corresponding economic, organizational and legal prerequisites.
Here we still need to do much. At the same time the countries of the socialist
community need to orient their economic mechanisms more boldly toward technical
progress, intensification, as well as the extension of socialist economic integra-
tion and the development of cooperation and specialization. So far in some coun-
tries it has been difficult at times to find any system of the stimulation, for
example, of cooperation. More often you encounter antistimuli. And in some eco-
nomic mechanisms there are even elenonts which are frankly indifferent to the proc-
esses of integration and cooperation.

In conclusion I wish to say the following. Today in the countries of the community,
according to my observances, the most different versions of the solution of similar
economic problems are being tested. This is an interesting process. It, of

course, will enrich our collective experience. But it is necessary to analyze and
evaluate very seriously every experiment according to its end results. It is the
dictate of the times to manage economically. I am convinced that the strengthening
cooperation of the CEMA member countries with the years will promote to a greater
and greater extent the accomplishment of this socioeconomic and political task.

As was noted at the plenum, our countries are striving for a qualitatively new
level of economic integration, without which it is already impossible today to
imagine the life of the socialist community.

7807
CSO: 1825/81

USSR-CEMA TRADE

IBB PROJECTS, BALANCES SUMMARIZED
Moscow FOREIGN TRADE in English No 9, Sep 83 pp 41-42, 44-46

[Article by Albert Belichenko, chairman of the Board of the International

Investment Bank]

[Text]

In the current five-yeat-plan period
the socialist communty countries in
line with the decisions of the Commun-
ist and Workers’ Parties are fulfilling
complex and iarge-scale tasks for
transferring the national economies to
an intensive way of development. In-
tensification of the socialist pro-
duction is accompanied by deepening
economic and technical cooperation
and socialist economic integration.

The present stage of the socialist
community countries’ economic devel-
opment is characterized by streng-
thening production internationa-
lization and deeper integration ties.
The decisions of the 26th CPSU Con-
gress and the congresses of other fra-
ternal Communist and Workers’ Par-
ties envisage the furthering of socialist
economic integration based on the
Comprehensive programme, long-term
specific programmes of cooperation,
multilateral and bilateral agreements
on specialization and cooperation in
production aimed at solving vital eco-
nomic development problems.

Yu.V. Andropov, General Secretary
of the CPSU Central Committee, in his
speech at the ceremonial meeting of the

CPSU Central Committee, the Su-
preme Soviet of the USSR and the Su-
preme Soviet of the RSFSR, December
21, 1982, pointed out: ‘‘the socialist
community is a powerful and healthy
organism which is playing an enor-
mous and beneficial role in the world
of today. The mechanism of fraternal
cooperation encompasses a variety of
spheres of life in our countries and dif-
feremt areas of our joint socialist con-
struction. By pooling our resources we
are finding increasingly effective ways
of harmonizing the interests of the
community with those of each
member-country."" Yu.V. Andropov
emphasized that one of the serious
tasks facing the socialist community
countries would be provision of ‘'... a
new impulse to ecunomic integration’.

In 1982 the socialist community
countries advanced in strengthening
the material and technical base of their

' economies and in perfecting and devel-

oping their foreign economic relations.

Sectors assuring acceleration of sci-
entific and technical progress and
raising the efficiency of social pro-
duction (power engineering, machine-
building industry, electronics, che-
misiry and petrochemistry) grew at

outstripping rates. The construction of
atom power stations moves still fur-
ther. Large financial means were allo-
cated not only to cons‘ruct new
projects but also to technically reequip
and reconstruct existing production ca-
pacities.

Cooperation in investments, includ-
ing coordination of capital invesimenis
and joint construction of certain
projects, expanded.

With due regard for the above, the
activity of the International Invest-
ment Bank (The Agreement on the Es-
tablishment of the IIB and its statutes
are published in this issue) is aimed at
promoting the growth of the Bank
member -countries’ economic potential
through participation in realizing the
tasks stemming from the Comprehen-
sive Programme of socialist economic
imtegration, long-term specific pro-
grammes of cooperation § and
agreemerts on specialization and co-
operation in production. At the same
time the Bank's activity raises the role
of international socialist credit and ex-
pands the scope of application of the
transferable ruble.

The 11B’s main business is to grant
credits for: capital construction, create
new productive assets, reconstruction
and expansion of existing enterprises’
capacities, raise the effectiveness of
capital investments credited by the
Bank.

In 1982 the Bank took on the
crediting of new projects and allocated
additional means for financing the de-
velopment of machine-building in-
dustry and transport, and also expan-
sion of the raw material and fuel base.
Credits are mainly used for assuring
more efficient capital invesiments in
reconstruction and technical reequip-
ping of existing enterprises.

In Bulgaria it is envisaged, using the
Bank's credits, to modernize and ex-
pand the Record complex in Plovdiv
manufacturing autotrucks, the Star
factory in Lukovit producing steering
mechanisms and the Shatorov sto-
rage-batiery factory in Pazardzhik. All
these enterprises are included in the
Transport Engineering which, under
the CMEA, specializes in manufac-
turing auto and electrocars and is one
of the largest producers of these goods
in the world.

Modernization and expansion of the
Record complex included in the
CMEA member-countries’ Coordi-
nated Plan for Multilateral Integration
Measures for 1981-1985 are of great
importance for meeting the CMEA
member-countries’ demands for
truck-loaders and also for developing
Buigaria’s national economy. By 1985
the complex’s output will substan’ ially
increase as well as its export to the
CMEA member-couniries.

The Bank's cred used for ex-
panding the Star factory's production
(Lukovit) is to increase the output of
steering mechanisms for completing
auto and electrocars manufactured in
Bulgaria and to create steering me-
chanism production for completing
MAZ lorries made at the Minsk Motor
Works in the Soviet Union and
supplied, in particular, to the CMEA
member -countries.

The Shatorov storage-batiery fac-
tory in Pazardzhik will increase the
output of batteries with higher techni-
cal and quality parameters for elec-
trocars and for automobiles and mo-
torcycles. The aim is to double their
service life. Besides meeting Bulgaria's
requirements export growth to the

CMEA member-countries is envis-
aged.

The deepening of the CMEA
member-countries’ economic coop
eration and the steady growth of mutu-
al tsade put higher claims on transport
assuring goods shipping on which, toa
great extent, the development and
proper interaction of the socialist eco-
nomic sectors depend.

The International Investment Bank
participates in undertakings for re-
constructing and changing major, in-
to electric traction and thei outfitting
with up-to-date automatic locking
systems and communication means as
well as for increasing the traffic-cars-
ying capacity of transshipping stations.
Under the CMEA member-couniries’
long-term specific programme of co-
operation in developing transport
communications the Bank, in 1982,
granted new credits to the enterprise,
Hungarian State Railways. The change
over the Budapest-Pecs line to electric
traction will substantially expand the
possibilities of transit cargo shipping
via Hungary, the Hungarian goods
shipment volumes will grow, the speed
of freight and passenger trains will in-
crease and the freight trains’ load ca-
pacity will become higher.

Hungary using the Bank's credits,
granted earlier, reconstructed some
sections of railways, equipped them
with automatic locking sysiems, con-
siructed secondary tracks and also
adapted some lines to electric traction;
the developmem of the Zahony
transshipping centre continued.

in Bulgaria the International Invest-
meri Ba: credits are for construction
of the Sofia-Varna, Varna-Burgas and
Burgas-Sofia highways. First-class
highways are of great consequence for

the developing of Bulgaria's economy.
Moreover, part of the Sofia-Varna

highway is included in the inter-
national Moscow -Kiev-Kishinev-
Bucharest-Sofia motorway, to be built
under the CMEA member-countries’
long-term specific programme of co-
operation in devcloping transport

Lasi year the IIB continued to credit
ca-..et accepted projects in the ma-
chine-building, chemical and other in-
dusiries manufacturing products in
which the CMEA member-couniries
are imteresied.

The advanced development of
Hungary's aluminium industry is an
example of efficient utilization of the
Bank’s credit. This country has large
bauxite reserves. However, a deficit of
economic power resources required for
producing aluminium retarded the
aluminium industry’s development.
Thanks to the USSR-Hungary frater-
nal cooperation, however, this prob-
lem has been overcome. In line with
the existing agreement Soviet en-
terprises annually process Hungarian
alumina and the produced aluminium
returns to Hungary. In repayment for
the services rendered the USSR re-
ceives Hungarian goods needed for its
economy. The Bank's credits promote
fulfilmem of the Soviet-Hungarian
agreement in both countries’ interests.

The expansion of the Hungarian
Ikarus factory manufacturing buses,
very competitive on the world market,
using the Bank's credit, is very im-
portant to Hungary and the CMEA
member-countries. This factory syste-
matically introduces new modifi-
cations to its output meeting the up-
to-date requirements. The Ikarus fac-
tory maintains close cooperation ties
with the Likino bus factory (the USSR)

and a number of enterprises in the
GDR and Czechoslovakia. At present
Ikarus buses carry passengers in more
than forty countries. Large numbers of
buses manufactured at the factory run
on the roads in the USSR and other
CMEA member-countries.

The Ganz Mavag machine-building
constructed and expanded using the
11B’s credit, participates in realization
of an Agreement on Multilateral Inter-
national Specialization and Coop-
eration in Production of Equipment
for Atomic Power Stations. The in-
vesiments will increase the production
volume at this enterprise and goods
deliveries to the European CMEA
member -countries.

The 11B's cooperation with the GDK
is fruitfully progressing. The Bank
granted a series of credits for ex-
panding and reconstructing the exis-
ting machine-building enterprises,
among which is the Umformtechnik
complex manufacturing press-forging
equipment, the Fortschritt-Land-
maschinen agricultural machinery
complex, the Polygraph complex, the
Scharfenstein works and the Ernst
Thalmann heavy engineering complex.

Equipment with the trade-mark of
the Umformtechnik complex is used at
automobile enterprises in the USSR,
Czechoslovakia, Hungary, Romania
and a number of capitalist and devel-
oping countries. The modern products
of this enterprise being manufactured
thanks to the reconstruction of the
complex on the basis of the Bank's
credit are of great demand on the
world market. Over ninety per cent of
the products increase has been
achieved due to the growth of labour
productivity.

The Fortschritt-Landmaschinen
complex opecializing in manufacturing

agricultural machinery is being
successfully reconstructed and ex-
panded. By its productive capacity it is
one of the largest and most important
enterprises within the CMEA
member-countries’ framework.

Due to new capital investments the
production volume at the Polygraph
printing machine complex will more
than double and products deliveries to
the CMEA member-countries will in-
crease over five times. The further
automation of ofiset machines using
microelectronic facilities will consider-
ably improve printing quality.

The Scharfenstein enterprise manu-
factures hermetically sealed refrigerant
compressors and freezers, meeting the
highest requirements from the point of
view of quality. For the manufacture
of these products the enterprise was
awarded the honoured name: Factory
of Excellent Quality.

The expansion and modernization
of productive capacities of the Ernst

Thalmann heavy engineering complex,
a large producer of rolling equipment,
equipment for the building material in-
dustry, cable industry and equipment
for producing protein foodstuffs from
oil-bearing seeds, is of great importan-
ce for the CMEA member-countries.
At the Leipzig Spring Fair, 1983, the
1IB’s customers, mainly those in the
German Democratic Republic, were
among the exhibitors. For a high sci-
entific-technical level their products
were awarded gold medals. The Ernst
Thalmann complex (Magdeburg) now
turning out highly productive machine
tools for rolling wire and steel sheet is
among the enterprises presented with
awards. Of great interest were: ma-
chines manufacturing glass light guides
for communication facilities made at

the Magdeburg complex.

Gold med.ids were also awarded to
items manufaccured by the Umform-
technik, Fortschritt-1 andmaschinen.

The IIB granted credits to the Re-
public of Cu'sa for constructing sugar
mills directly re'azted to the fulfilment
of a long-terr «pce fic programme of
cooperation in agriculture and the
food industry. Such factories will pro-
mote the further comprehensive devel-
opment of Cuba's sugar industry and
sugar export growth.

Several credits were granted for the
construction of new and reconsiruc-
tion and expansion of existing
chemical enterprises among which in
the Socialist Republic of Romania are:
the Giurgiu factory manufacturing
caustx soda and chlorine derivatives,
the Borzesti woprene rubber factory,
an installation for manufacturing Me-
lana polynitrileacryl fibre at the
SAvinesti synthetic fibre factory; in the
Crechoslovak Socialist Republic: a
plant producing aniioxidant used for
manufacturing tyres, conveyer belts,
hoses and other rubber items at the
Duslo Sala chemical complex.

The International Economic Asso-
ciation Interatominsirument uses the
11B’s credits for expanding the volume
of work on instrument and nuclear fa-
cilities servicing.

The credit granted for moder-
nization and expansion of the Tang
trol factory (Yugoslavia) manufac-
turing products important for the
automobile industry is being success-
fully realized. This credit is a clear in-
dication of the widening use of the
transferable ruble and inclusion of a
country which is not a member of the
International Investment Bank or the
International Bank for Economic Co-
operation into the sysiem of mul-
tilateral settlements in this collective

currency.

In 1982 the credits granted in the
previous years for the construction of
the Soyuz gas pipeline, the Chic
member-countries’ largest integration
project, were repaid. From use of the
11B’s credits a considerable portion of
ies we financed as well as construc-
tion-assembly work and mutual
services fulfilled by the participating
countries. Through putting this large
complex into operation the countries
engaged in its construction obtained
tens of thousands of millions of cubic
metres of valuable raw material.

At the 33rd meeting of the Bank's
Board (April 1983) a new project—
Modernization and reconstruction of
the V. Kolarov diesel engine complex
in Varna (Bulgaria) was accepted for
crediting. The new capital investments
will considerably increase diesel pro-
duction. A high level of automation
and mechanization of the production
process is assured.

Since the deginning of its activity the
International Investment Bank has
credited 83 projects estimated at about
10 thousand millions transferable
rubles. The total sum of credits gra-
nted to the CMEA member-countries,
Yugoslavia and the International Eco-
nomic Association Interatomin-
strument exceeded 3,500 million trans-
ferable rubles. About 70 per cent of the
credits went to the development of the
fuel-power indusiry, 19 per cent—
machine-building industry and elec-
tronics, 9 per cent—metallurgy and
chemistry and 2 per cent—for trans-
port and communication development.

The majority of the projecis being
credited are functioning enterprises.
They are reconstructed and expanded
without stopping production and this
makes it possible to continually in-
crease the products output and exports

such as: faience tiles, refrigerating
plants and compressors from Bulgaria;
comfortable buses, aluminium semi-fi-
nished products, cable products and
textiles from Hungary; press equip-
mem, agricultural and printing ma-
chines from the GDR; washed wool
from Mongolia; brake devices for vehi-
cles from Poland; railway waggons
and chemical products from Romania;
natural gas from the USSR and lorries
with a high cross-country capability
from Czechoslovakia.

All in all in 1972-1982 the projects
credited by the Bank exported various
products to the CMEA member-coun-
tries worth approximately 15,000 mil-
lion transferable rubles. These projects
also supply their manufactures to the
industrial capitalist and developing
countries. The International Invest-
ment Bank's activity promotes the de-
velopment of the CMEA member-
countries’ export potential as a basic
source for obtaining convertible cur-
rency to repay imports bought from
the capitalist countries.

At present 56 projects have been put
into operation, the construction of
which was undertaken on the basis of
the '1B’s credits. In 1982 these projects
exported finished products, whose
characteristics meet the lates: scientific
and technical demands, worth 3,700
million transferable rubles.

Four projects credited by the Bank
were commissioned in 1982. The re-
consiruction and expansion of
workshops at the Hungarian cable fac-
tory (Budapest) were completed, as a
result cable and wire output increased
and deliveries of communication
equipment, laboratory instruments
and other facilities grew. Lines manu-
facturing equipment for making ce-
ment and crushers were put into ope-

ration at the Ernst Thalmann heavy
engineering complex. Modernization
of equipment and expansion of pro-
ductive capacities at the Tatra factory
in Koprzhivnice (Czechoslovakia) were
completed. Tatra-815 lorries with a
large load capacity and high per-
formance characteristics which work
faultlessly in severe climates are being
mass produced. Products manufac-
tured at this enterprise are made to the
world’s best standards and are expor-
ted to many countries.

The CMEA member-countries’ mul-
tilateral cooperation in material pro-
duction is to @ greater extent being ori-
ented on solving large pressing prob-
lems concerned with supplying their
economies with fuel-power and raw
material goods, machinery and equip-
ment, agricultrual produce and food-
stuffs, consumer goods and also with
the development of transport commu-
nications. Multilateral and bilateral
agreements are being elaborated and
implemented, Their purpose is to
complete the undertakings envisaged
in long-term specific programmes of
cooperation. All CMEA member-
countries’ economic successes are
directly due to the further expansion
and deepening of socialist economic in-
tegration.

The role of foreign trade in devel-
oping the CMEA member-countries’
economies is increasing. The ac-
celerated expansion of the machinery
and equipment foreign trade in the ma-
jority of these countries witnesses the
further deepening of international spe-
cialization and cooperation in pro-
duction.

The results of the 36th CMEA Ses-
sion indicated that a significant step
had been made on the way towards
intensification of the CMEA
countries’ economies on the basis of

the further deepening of socialist eco-
nomic integration.

The 36th CMEA Session adopted
the Programme of Coordination of the
CMEA Member-Countries’ Economic
Plans for 1986-1990. The Programme
envisages a wider use of the IIB’s
credits for implementing the integ-
ration undertakings. For this purpose
in the course of coordinating their
plans the CMEA member-couniries
will elaborate and inform the Bank of
possible projects which would promote
specialization and cooperation in pro-
duction, etc. The IIB will consider
these projects when determining the
main directions of its activity and
drawing up five-year plans.

In the course of preparation of draft
agreements, aimed at fulfilling specific
_ integration undertakings, the CMEA
member-countries will specify and co-
ordinate their deliveries of machinery,
equipment and materials for the
projects credited by the Bank as well as
counter-deliveries for their repayment.
These deliveries will be stipulated in
the corresponding section of the Coor-
dinated Plan for Multilateral Integ-
ration measures, in special sections of
long-term trade agreements and in the
annual protocols on trade turnover.
They will also be taken into account in
the integration sections of the CMEA
member-countries’ State plans of so-
cial and economic development in line
with their national legislation.

Yu.V. Andropov at the Novem-
ber (1982) Plenary Meeting of the
CVSU Central Committee stressed that
it was necessary to make the fraternal
countries’ cooperation and socialist
mutual assistance deeper and more ef-
ficient also in the joint fulfilment of
scientific, technical, industrial, trans-
port, power engineering and other
tasks.

The importance of the socialist
states’ closest cooperation increases es-
pecially in the present world situation.
The CMEA member -countries’ further
transition to intensive development
presupposes selection of the most effi-
cient ways of specialization and coop-
eration in production and rational
utilization of the CMEA member-
countries’ economic potential with
simultaneous perfection of the me-
chanism governing their economic co-
operation.

The International Investment Bank
will continue to actively assist the de-
velopment of the fraternal socialist
countries’ economies, promote imple-
mentation of tasks further improving
the CMEA member-countries’ cur-
rency-financial relations, deepen so-
cialist economic integration and also
expand mutually beneficial economic
cooperation with other countries.

The International Investment
Bank's further activity will help solve
the general creative problems facing
the socialist community as a whole and
individual CMEA member-countries.

The International Investment Bank
constantly places stress on deepening
and improving business cooperation
with the Council for Mutual Economic
Assistance, the International Bank for
Economic Cooperation and other in-
ternational organizations and banks in
the CMEA member-countries and Yu-
gosiavia, Ties with international and
regional financial and crediting organi-
zations and banks in the industrial
capitalist and developing countries are
progressing.

We are sure that under the present
complicated international situation the
activity of the International Invest-
ment Bank will be of still greater signi-
ficance in developing the fraternal so-
cialist countries’ cooperation.

"Poreign Trade” 1983

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TRADE WITH IMDUSTRLALIZED COUNTRIES

SOVIET-WESTERN LICENSING ACREEMENTS DETAILED
Moscow FOREICN TRADE in English No 9, Sep 83 pp 2-5

{Article by Yladislav Malkevich, D. Sc. (Econ.), deputy minister of the USSR
Ministry of Foreign Trade]

[Text]
A noteworthy feature of present-day international

economic relations’ intensification is the continually ex-
panding specialized and cooperated manufacture and
research. Growing more sophisticated in form the tradi-
tional trade links increasingly assume the character of
long-term extended industrial cooperation between
various countries’ partners.

The vast scopes and complexity of the challenges
facing science and technology today need huge labour and
financial resources and form the objective pre-condition
for the concentration, on an international scale, of the
partners’ production, scientific and technical potentials.

International industrial cooperation is one of the main
and a most dynamic factor of the world’s expanding
imtegration processes. The Final Act of the Helsinki Con-
ference on European Security and Cooperation em-
phasized the need of developing industrial cooperation
and, in particular, the following specific forms: joint
manufacture and marketing; cooperation in building in-
dustrial complexes; exchange of know-how, patents and
licences; and joint industrial research.

These forms of cooperation are an effective means for
taking care of complicated scientific and technical prob-
lems. They are being given increasing emphasis and place
in the structure of Soviet foreign trade transactions
adding to and helping extend the traditional trade rela-
tions with foreign countries in general, and organizations
and firms in the industrial Western nations in particular.

Soviet organizations’ relations with their foreign part-
ners in the sphere of industrial cooperation are wide and
varied, but their most characteristic feature is that they
are, as a rule, long-term and designed to improve product
quality standard: through coordinated scientific, techni-
cal, production and commercial activity.

The unified technical and standardized facilities form
the basis of the partners’ industrial cooperation. Progress
was initially made in the field of licence agreements which

were conducive to quick exchanges of R & D results,
technical, technological and other documentation.

Soviet licence trade is developing faster than the
commodity trade and it is now an independent and stable
foreign trade activity.

In 1976-1980 the average annual rates of growth of
Soviet licence exports amounted about 20 per cent, and
the foreign exchange earnings over this period exceeded
6.5 times the receipts in all the preceding years.

More than 20 Western countries are making goods
today under Soviet licences. Over 30 per cent of the
licences sold are bought by the USA, Japan, the FRG,
France, Great Britain and Italy.

Many Western countries are well aware of the follow-
ing Soviet inventions: underground gasification of coal;
dry quenching of coke; transpiration cooling of blast
furnaces; horizontal type continuous steel teeming;
medicinal eye films; modicines—carminomycene, <-
mozine, nonakhiazine, etc. Since 1975 over 100 export
licence contracts are signed annually with Western firms.

A series of new licence agreements for prospective
Soviet inventions was signed in 1982, including contracts
with Voest-Ailpine (Austria) and Krupp GmbH (FRG) for
converter gun spraying. Contracts provide for the transfer
of information on the composition of a refractory fluid
compound, the devices for and the techniques of its
spreading on the internal surface of a converter to patch
up and restore its lining to normal. The new process
enables repairs to be made between smelts and prolongs
converter life 20 to 30 per cent.

The Japanese firm Kensetsu Kikai Chosa purchased a
licence for an original reinforced concrete hollow pile
setting installation with special vibrators which makes it
possible to complete deep foundations almost twice faster
and substantially cut operating costs.

The MAN-GHH firm bought a licence for the N-650-
21-2 natural gas compressor for 25MW gas pumps used
on large-diameter pipelines. The pumps have high techni-
cal and economic performance characteristics and can
operate in extreme climates. Their design is based on
absolutely new solutions resulting from over 30 patented
inventions.

‘Engineering’ services are being increasingly the
subject in Soviet licence transactions with Western firms.
These services may be a constituent part of large projects,
or the subject of independent agreements. For example, a
complex of designing, exploratory, assembly and con-
struction services has been offered in addition to manu-
facturing rights and transfer of technical and know-how
documentation to the following firms under respective
licence agreements: Sumitomo, Japan (a system of pipe-
line transport); American Magnesium, USA (magnesium
diaphiragmiess electrolyzers); Broken Hill Associated
Smelters, Australia (reprocessing of compound lead-zinc
concentrates); etc.

The agreements with Holiming, Wéa&rtsilé, and
Rauma-Repola provide exclusively for ship testing
services in an experimental model basin. In the past
several years quite a number of ships have been tested on
Finnish firms’ orders.

Other forms of licence agreements are also in active
use.
For the first time in the history of Soviet foreign trade
associations Licensintorg concluded an agreement with
the Indian space research organization, ISRO, on pro-
viding services related to the launching of an Indian-made
earth satellite by a Soviet rocket carrier.

Also a new experience for our organizations was the
sale of leasing licences to Drilex U.K. (Great Britain) and
Drilex Overseas (the Bahamas) for screw-type hydraulic
engines for drilling oil and gas wells. Instead of granting
the licence holder, as is usually the case, the right to
manufacture and sell the respective equipment, was mo-
dified enabling him to lease it and transfer an agreed per
cent of royalties on its use to the Soviet licence owner.

The Soviet Union also makes active use of the latest
achievements of foreign science and engineering. In the
past two decades it has purchased some 700 licences. The
major partners are West German, French, British,

Austrian and Italian firms. Using their know-how the
Soviet Union makes the following equipment and pro-
ducts: medium-speed marine diesel engines (Picistick,
France); railway track repair machines (Plasser und
Theurer, Austria); powerful thyristors (Siemens, the
FRG); torque d.c. electric motors (Fanuc, Japan); sprink-
ling machines (Valmont, USA); high-productivity flour
mill equipment (Bohier, Switzerland); chioroprene from
butadiene (Power Gas, Great Britain); etc.

Among the licence agreements concluded in 1982 men-
tion can be made of the following: manufacture of electric
arc steel-melting furnaces (Krupp, the FRG); regulated
plate pumps (Rexrot, the FRG); spherical graphited cast
iron gas pipes (Tiroler ROhren und Metallwerke, Austria);
large-size bearings (Rothe-Erdeschmiedag, the FRG);
multifunctional electromechanical devices for processing
food wastes (Merioni Progetti, Italy); mechanical
treatment of graphite-coated electrodes (Tractionel,
Belgium); and a series of production processes for the
automotive industry.

In the 1970s industrial cooperation on a compensation
basis played an important part in Soviet trade with capi-
talist countries. Compensation arrangements envisage de-
liveries by foreign partners on the basis of their long-term
credits of equipment, machinery, materials and licences
for the construction of large enterprises. The credits and
interest on them are to be repaid in products of the built
enterprises to their full worth within 10 to 15 years.

So far compensation agreements have been signed for
the construction in the Soviet Union of over 60 chemical,
petrochemical, oil, gas, timber, and pulp-and-paper
projects. This type of contracts has been signed with
Austrian, Italian, West German, French, Japanese, US
and other Western firms and are worth hundreds of
millions and even thousands of millions of dollars. Ma-
jority of these projects are well known and have been
repeatedly mentioned in Soviet and Western press, among
them are: development of large timber resources in the
Far East and Siberia; exploitation of the South-Yakutian
coal-field; cil and gas prospecting and extraction from the
Sakhalin Island shelf; construction of the Oskol metallur-
gical complex and the export gas pipeline project.

In the past decade Soviet organizations and enterprises
have been increasing their participation in production

cooperative relations with industrial western firms. And
though the number of such cooperative projects is not yet
large, the usefulness of this form of industrial coop-
eration has become quite obvious.

Cooperation in production and the trade in licences
accelerate the production of progressive technologies,
raise the efficiency of social production and create ad-
ditional export resources. At the same time it is a higher-
level form of cooperation which presupposes, along with
the engineering and technical interaction of partners,
unification of the applied technologies and arrangement
of production, synchronization of the partners’ efforts
and production activities on the basis of specialization,
coordination of sales and after-sale services and measures
for the legal protection of industrial property.

Cooperation between Soviet organizations and firins
of capitalist countries is accomplished under long-term
agreemenis (5 to 7 years) which Soviet foreign trade
associations are parties to. As a rule, the agreements cover
two main stages of cooperation: preparation and organi-
zation of the manufacture of cooperated products based
either on jointly developed technology or the technology
of one side; and the manufacture and sales of products
based on coordinated specialization and mutual deliver-
es.

The two following contracts are examples of coop-
eration founded on Soviet technologies: manufacture of
Shirek-I type machines for comprehensive mechanization
of coal mining operations (Scharf GmbH, the FRG) and
manufacture of the UPS-301 type plasma welding equip-
mem (Northern Engineering Industries, Great Britain).

The technical documentation for the Shtrek-1 machine
was handed over on a licence basis to Scharf where

alterations were made to the original design to acco-
modate West German hydraulic systems and elec-
trotechnical components; cooperated manufacture was
then started in keeping with the agreed specialization.

A similar procedure was followed in cooperated
manufacture of the UPS-301 equipment developed in the
Soviet Union.

More and more often the mastering of production of
Western-licensed goods in the Soviet Union is the begin-
ning of cooperative relations with Western firms.

An agreement on cooperated manufacture and coordi-
nated sales of concrete auto pumps (capacity—80 cu.m
per hour) with Stetter of the FRG has been operative since
1977. Manufacture of the pumps is based on the technical
and technological documentation of the firm Stetter.
Proceeding from their annual production programmes
the sides regularly sign commercial contracts on the mutu-
al deliveries of assemblies and parts for the pumps. Each
side has full freedom to assemble and mount pumps on
their own chassis.

The close production and commercial ties and the
economic benefits accruing from the cooperation encou-
raged the partners to complete new agreements—on coop-
erated manufacture of mixer trucks and permanently
sited concrete mixers.

Good progress has been achieved in cooperated manu-
facture of passenger car safety belts fitted with enertia
spools with the Swedish firm Steel Industry. The contract
provides for annual mutual deliveries of completing parts
on the agreed specialization. These safety belts are fitted
to the Soviet-made Lada cars and West European models.

Sport shoes made by the Moscow Sport factory in
cooperation with the West German firm Adidas are in
high demand in the Soviet Union and abroad. The firm

handed over to its Soviet partner the technical documen-
‘ation (know-how) and the right to use its trade mark.
'i2ss production in the Soviet Union began in less than a
year and the sides started mutual deliveries: finished pro-
ducts (130,000-150,000 pairs of shoes per annum) from
the Soviet Union to the FRG, and a number of completing
parts and materials from West Germany to the Sovies
Union.

As the role of science in production grows cooperation
more and more extends to research and development, and
experimental manufacture. An example of this type of
cooperation is Licensintorg'’s agreements with the French
firms Thomson-CSF and S.F.1.M. on the joint devel-
opment of a future air navigational complex to control
flights in heavy traffic, ease the work of crews and air
control personnel in airports, as well as make flights
safer. The agreements were concluded when the design of
the equipment was about to begin, i.c., at the moment of
passing over to the practical implementation of the idea.

Soviet and French specialists jountly developed and tested
prototypes of air navigational complexes and their ground
programming and servicing sysiems.

Long-term, multilateral economic, «ientific and
technical relations of the Soviet Union with Western
countries were a notable feature of the 1970s.

The achieved scale of trade and technological ex-
changes between the Soviet Union and the Western
countries have formed the objective prerequisites for the
further extension of industrial cooperation in various
forms.

At the same time recent years have witnessed increas-
ing attempts of certain Western, specifically, US circles to
hamper and limit the economic intercourse between the
East and the West. This was also the aim of new amen-
dments made to the US export control regulations intro-
duced in the late seventies and the early eighties. Such a
policy complicates the development of international in-
dustrial cooperation and introduces destabilizing el-
ements into trade and economic relations between states.
Against this background the Soviet Union continues to
follow a realistic, objectively justified line for mutually
profiiable cooperation that meets the interests of all
nations. The future belongs to this course.

COPYRICHT: ‘“Vnesnaya torgoviya” 1983.
English translation, “Yoreign Trade” 1983.

CSO: 1812/15

TRADE WITH LDC'S

ECONOMIC, TECHNICAL COOPERATION OF THE SOVIET UNION WITH DEVELOPING COUNTRIES

Moscow EKONOMICHESKOYE SOTRUDNICHESTVO STRAN-CHLENOV SEV in Russian No 5, May 83
pp 64-71

[Article by Tadeush Teodorovich, deputy director of the Scientific-Research
Institute of USSR Economic and Technical Cooperation with Foreign Countries,
USSR State Committee for Foreign Economic Relations: “The Soviet Union's
Economic and Technical Assistance to the Developing Countries")

[Text] Within the general system of the USSR's economic ties with the young
states of Asia, Africa and Latin America, those forms of cooperation which go
beyond the framework of tsaditional foreign trade and which ensure that a high
degree of effectiveness and mutual benefit are derived from these ties acquire
ever greater significance. This applies first of all to the economic and
technical assistance which the Soviet Union extends to the developing countries
in strengthening their national economies, in building industrial enterprises
and power plants, agricultural and transport facilities, in carrying out
geological prospecting work, in training personnel, etc.

While carrying out prospecting and planning work, while supplying entire equip-
ment units, while building and performing installation work and while providing
for the opening and normal functioning of facilities, USSR organizations estab-
lish long-term economic relations with the developing countries: these rela-
tions are realized not only in the circulation sphere but also in the area of
capital construction and material production. Cooperation of this kind con-
tributes actively to the progressive restructuring of the economies of the
developing countries, and it exerts a profound effect on the development of
their production forces and the resolution of social problems. It helps to
strengthen the economic independence and the foreign exchange-financial position
of the developing cvuntries, as well as their positions in the struggle against
the forces of imperialism and reaction.

At the same time economic and technical assistance and deliveries of entire
equipment unite serve as forms for the expansion of our machinery and equipment
exports; this is completely in line with the task set by the 26th CPSU Congress
of improving the structure of Soviet exports, especially by increasing the
production and delivery of machine-building products and other manufactured

items which meet foreign market requirements. In the last two decades deliveries
of entire units have ranged on average from 50 to 60 percent of the total volume

of Soviet machinery and equipment exports to the developing countries, and for
certain countries the percentages are even greater. For example, in the late
70's, this figure reached about 90 percent for Algeria and Iran, 80-85 percent
for Turkey, and 60-70 percent for India and Afghanistan.

The Soviet Union receives as payment for the complete equipment units and
technical documentation which it supplies and for the work of the specialists
which it sends abroad various goods which are essential for our economy, such
as minerals, fuel, tropical food products and finished industrial goods, in-
cluding goods from enterprises built with the USSR's economic and technical
assistance. In this way the practical realization of the principles of equal
rights and mutual benefit is ensured. The USSR achieves this not by parti-
cipating in the profits from enterprises built with its assistance or by re-
ceiving any privileges or concessions, but through the usual commercial channels
by utilizing the advantages of the international division of labor.

The expansion of the USSR's economic and technical cooperation with the de-
veloping countries is taking place at a rapid rate. In the mid-50's the first
inter-governmental agreements establishing this kind of cooperation were signed
with Afghanistan and India, and by late 1982 they had been signed with 66
countries.

By the start of 1982, the number of projects involving cooperation between the
Soviet Union and the developing countries had reached 1,271; work had been com
pleted on 705 of these. They included 310 industrial enterprises, including
electric power plants with an established capacity of 7.7 million kilowatts,
metallurgical plants for smelting 12.4 million tons of cast iron and 10.2
million tons of steel, facilities for the extraction of 67.5 million tons of
petroleum, 4.8 million tons of coal, 13 million tons of iron ore and 2.5 million
tons of bauxite per year, as well as cement plants with a capacity of 1.6
million tons of cement. The following have also been put into operation:

75 agricultural facilities, 76 transportation and communications facilities,
149 educational establishments, 12 hospitals and polyclinics, etc.

There are many indications of the great significance which all of these facili-
ties have for the economies of the developing countries. For example, in 1981
about 7.5 million tons of cast iron, 5.7 million tons of steel, and 205,000
tons of aluminum were smelted at cooperation facilities already in operation;
the total output of electric power exceeded 33 billion kilowatt hours, which
amounted to a 1,7-fold increase over 1975. These facilities were responsible
for 65 percent of Syria's total electric power output, for Afghanistan the
figure war 60 percent, for Iraq it was 55 percent, for Morocco 23 percent, and
it was about 15 percent for India, Bangladesh and other countries. The Soviet
Union helped to establish a national petroleum extracting industry in India
and Syria, as well as a gas industry in Afghanistan; this had made it possible
for these three countries alone to have produced 175 million tons of petroleum
and 47 billion cubic meters of natural gas by the start of 1982.

In the area of agriculture note should be taken first of all of the constructicn
of major hy¢drosystem: and irrigation structures in a number of countries; as a
result of cooperation with the Soviet Union conditions have been established
for the irrigation of more than 3 million hectares of new lands.

The training of national personnel constitutes an important direction in foreign
assistance. in the years of cooperation up to 1 million citizens from the
developing countries of Asia, Africa and Latin America have received training
and obtained high-level qualifications with the assistance of Soviet specialists
during the construction and operation of facilities, in educational establish-
ments created with USSR assistance or in Soviet secondary and higher educational
institutions or Soviet enterprises.

The Soviet Union’s economic and technical assistance is not only being expanded,
but it is also being steadily improved: it is being enriched with new content
and forms. Specifically, the last decade has seen the ever broader application
of the following practices: construction of facilities in the developing
countries under contract conditions and cooperation based on compensation prin-
ciples. The transition to long-term agreements, programs and multilateral re-
lations has been stepped up. Overseas assignments by such categories of

Soviet specialists as advisers and consultants have acquired great significance,
and production cooperation with USSR enterprises on the basis of facilities
built with Soviet assistance has begun to develop.

Construction under contract conditions typically requires that in addition to
providing the technical documentation, equipment and materials, the contracting
company must use its own means and specialists to carry out all construction
and installation work and hand over to the customer the completed facility
ready for use. Moreover, the company has legal and material responsibility

for the work completion deadlines and the quality of the work performed, which
is determined on the basis of the results obtained from the operation of the
facility during the warranty period. .

The most important facilities which have been built under contract conditions
or are presently under construction by Soviet organizations in the developing
countries include metallurgical plants in Algeria and Nigeria, electric power
plants in Iraq and Iran, pipelines in Iraq, Nigeria, Libya and Algeria, grain
elevators in Iraq and Iran, educational centers, a cement plant and oil fields
in Iraq, an atomic research center, petroleum borehole installations and an
electric power transmission line in Libya.

By the start of 1971 the Soviet Union's economic and technical assistance ob-
ligations to the developing countries included 30 contract facilities, which
represented 2.8 percent of total volume in terms of cost, but by 1982 the number
of facilities had reached 150, and their cost accounted for 35 percent of the
volume of assistance stipulated in already concluded agreements and contracts.

By the start of 1982 Soviet organizations had completed work in the developing
countries on the construction of 63 contract facilities, include 19 in Iraq,
three each in Iran and Algeria, two each in Afghanistan, Libya and Guinea.
Contract work is continuing on the erection of 24 facilities in Iraq, 14 in Iran,
and eight each in Libya and Afghanistan.

The growing significance of construction carried out on contract facilities
in the developing countries and the working conditions which have developed in
some countries present Soviet foreign-economic and construction-installation

organizations with the task of increasing in every possible way the effective-
nese of contract construction, which is a very crucial and complex form of

cooperation.

Specifically, the completion of the tasks in this area calls for uniting the
efforts of the construction-installation organizations of the Soviet Union
and the other CEMA member countries. For example, one can take note of the
positive results of cooperation between Soviet and Bulgarian organizations
in the construction of facilities in Libya, and of cooperation among Soviet,
Hungarian and Polish organizations in Iran.

Ever increasing attention is being given to cooperation carried out under ex-
port conditions, i.e., when the USSR receives a portio’: of output obtained at
facilities established with our assistance (compensation agreements). In the
first stages of cooperation with the developing countries the enterprises were
built mainly to satisfy the needs--which arose during the process of econor‘c
growth--of the population and of domestic production and to replace imports.
But in the subsequent period ever greater attention has been devoted to the
construction of enterprises which turn out products for export. The export
industrial sector, which is an organic component of the national economies

of the developing countries, also satisfies the needs of the partner country.
This approach leads to the development and expansion of cooperation on 4 com
pensation basis.

The advantage of establishing in the developing countries special-purpose pro-
duction capacities which supply a portion of their output to the USSR lies not
only in the opportunity which they provide for the long-term satisfaction of
the import needs of our economy, but also in the simultaneous resolution of the
extremely urgent problem of ensuring the complete and prompt repayment of Soviet
credits by means of goods which we need. This is particularly important for a
number of the least developed countries, which remain in a difficult foreign
exchange-financial position, and which have a low repayment capacity.

Compensation cooperation frequentiy arises as well at the later stages, when
repayment of Soviet credits is being carried out, and the already completed
enterprises are in operation. In certain cases deliveries to the USSR serve

the purposes of 1) ensuring the fullest and most effective utilization of the
production capacities created with the assistance of Soviet organizations and

2) overcoming marketing difficulties. One can cite as an example the deliveries
of cast iron, rolled metal products, metallurgical and other equipment frew
facilities arising out of Soviet-Indian cooperation.

All of the above-indicated reasons provide the grounds for viewing compensation
cooperation as an extremely promising and highly effective form of foreign
economic ties of a production-commercial nature. At the present time more than
% agreements concerning cooperation to be carried out under compensation con-
ditions have been signed. The scale of the compensation cooperation which is
already being realized can be judged from the fact that during 1976-1980 alone
facilities built in the developing countries yielded output worth approximately
3 billion rubles,including 40.9 billion cubic meters of gas from Afghanistan
and Iran, 23.4 million tons of petroleum from Iraq and Syria, 11.6 million tons

of Bauxite from Guinea, 213,000 tons of alumina from Turkey, 148,000 tons of
nitrogen fertilizers from Afghanistan, metallurgical and other equipment to-
taling about 17 million rubles from India, etc. In some years this output has
accounted for more than 20 percent of all Soviet imports from the developing
countri¢s.

In 1961 the output from facilities built under this kind of cooperation agree-
ment accounted for 63 percent of imports from Afghanistan: these facilities
include the oil fields of Shibarghan and Dzharkuduk, the nitrogen fertilizer
plant in the city of Mazar-i-Sherif and the Khadda and Gaziabad agricultural
farms. During al\ of these years a total of more than 600 million rubles
worth of output hus been purchased to clear Soviet credits and to pay for cur-
rent Soviet exports; this figure includes 34.3 billion cubic meters of natural
gas, 204,000 tons of fertilizers, 33,000 tons of citrus fruits, and more than
7,000 tons of olives. The prospects for the further development of compensation
cooperation between our countries are linked to the development of the Aynak
copper deposits, discovered with the help of Soviet geologists, to the reali-
zation of other extracting facilities and to the development of irrigation.

Output from a bauxite producing complex built with USSR assistance makes up the
larger part of Soviet imports from Guinea. In the years 1975-1981 about 16
million tons of bauxite were exported to the Soviet Union. Nearly half

of this went to clear Soviet credits. At present, work is being carried out
with USSR assistance to increase the capacity of this complex, and this

will create the conditions for further growth in the deliveries of Guinena
bauxite to the USSR,

Cooperation with Guinea provides a graphic example of how a developing country
can--on the basis of mutual advantage--attract overseas financial and material
resources and promptly pay off its debts for assistance provided. Moreover,
the net profit which this wholly national enterprise receives from every ton
of bauxite it produces goes into the country's state budget, and this profit
is 3-fold greater than the profit which Guinea obtains from mixed enterprises
in which capital from Western firms is used.

An important item in Soviet imports from the Congo is lead-zinc concentrate,
which comes from a mining and enriching enterprise in the city of M'Fuati,
which was built with USSR assistance. The development of compensation cooper-
ation with Morocco is linked to participation by Soviet organizations in the
development of phosphorite deposits, and in the case of Mozambique it is linked
to the mining of coking coal and the ores of rare metals.

Production cooperation based on facilities built in the developing countries
with the Soviet Union's economic and technical s«ssistance borders very closely
on cooperation carried out on a compensation busis. In both cases part of the
output is purchased by Soviet organizations. The most outstanding example is
to be found inthe cooperation with machine-building enterprises in India--with
the heavy machine-building plant in the city of Ranchi, with the mining equip-
ment plant in the city of Durgapur and with the machine-building plant, lo-
cated in the city of Khardvar, which produces equipment for the power industry.

Production cooperation aruse in the 70's as one of the ways of providing help
to facilities built with USSR assistance in establishing effective operations
for those facilities, and it subsequently grew into solid production cooper-
ation. Since 1968 large orders for the production of equipment for facilities
which are being built in India with USSR assistance have been placed with these
plants. In 1976 contracts were concluded to cover the manufacture in 1977-1980
of 19,000 tons of metallurgical equipment for facilities being duilt in third
countries with the assistance of the Soviet Union. Within the framework of
these contracts coking equipment has been supplied to Bulgaria and Turkey, and
bridge reloaders have been supplied to the Kepublic of Cuba, etc. For the
production of this equipment Soviet organizations handed over to Indian plants
the necessary technical documentation and supplied items necessary to complete
the plant, and they took upon themselves the responsibility for the technical
level and the quality of equipment. The placing of these major orders with
Indian plants was seen as a demonstration of the great trust which the Soviet
Union and other foreign countries have in the output of the Indian machine-
building industry.

A new stage in the development of Soviet-Indiat; cooperation in machine building
was started in the late 70's, when it became more stable, planned and long-term
in nature. According to the agreements which have been concluded, about 120,000
tons of various types of equipment will be manufactured in 1981-1985 to fill
Soviet orders. This ensures that the plants in the cities of Ranchi, Durgapur
and Khardvar will be using their production capacities in the long-term future;
it provides the opportunity to significantly improve the indicators of their
production-financial activities and to expand machine-building exports. The
Soviet Union is supplied with enriching, crushing-grinding and coking equipment,
large electrical machinery, sinking winches, conveyer belts, a large quantity

of parts, blocks, castings and other items for the manufacture of machinery and
equipment at USSR enterprises.

It should be noted that other CEMA member countries are starting to establish
similar cooperation links. As the HINDUSTAN TIMES reported on 9 September 1982
the Heavy Machine Building Corporation in Ranchi reached an agreement on man-
ufacturing in India--using Czechoslovak technology--the following items which
are to be supplied to the CSSR: cranes, rolled products and coking equipment,
forged pleces and castings; the agreement also covered the use of Indian organ-
izations to supply equipment and to carry out the construction of facilities

in third countries.

In the expansion of the USSR's economic and technical assistance to the develop-
ing countries, it has been possible to observe in recent years an increased
emphasis on projects which are planned and long-term in nature. In this regard
particular mention should be made of the March 1979 signing--at the summit
level--of a document concerning a program of Soviet-Indian economic, trade and
technical cooperation. It sets out the areas of joint work between Soviet and
Indian organizations on the leading sectors of India's national economy--ferrous
and nonferrous metallurgy, the exploration and production of petroleum, electric
power engineering, the coal industry, machine building, light industry, the

food industcy and agriculture.

In May 1961 a program of cooperation with Mozambique was confirmed for 194]-
1990; it covers such sectors as geology, the extracting industry, nonferrous
metallurgy, machine building, agriculture, and the training of national per-
sonnel. In January 1962, a document was signed concerning a program of cooper-
ation with Angola to cover 1961-1985 and up to 1990. Long-term programs of
cooperation with Ethiopia and certain other developing courtries are being
worked out.

The work of inter-governmental commissions has great significance for the de-
velopment of the long-term prospects for mutually advantageous cooperation.
In the early 70's commissions were set up with India, Iran, Iraq, Turkey,
Algeria, Morocco and Syria, and in the last five-year plan period inter-
governmental commissions on economic and trade cooperation with Afghanistan,
the People's Democratic Republic of Yemen, Ethiopia, Angola, Mozambique,
Madagascar and Libya were added,

Amony, the important areas of cooperation which have received particularly intense
development in recent years one should include tne sending of Soviet experts

and consultants to the developing countries to transmit the wealth of experi-
ence accumulated by the Soviet Union in planning and effective economic manage-
ment. For example, a group of Soviet specialists in Afghanistan is carrying

out a large project on the introduction and improvement of the system for state-
wide planning and on the development of measures to strengthen plan and finan-
clal discipline, and to increase revenues going to the country’s state budget.
On the basis of the recommendations and proposals put forward by the Soviet
consultants, the range of plan indicators included in the 1951-1982 economic

and social development plans for Afghanistan was substantially increased, and
itemized lists of capital construction projects were compiled.

Soviet specialists have worked out the basic normative documents and regulations
of the five-year national development plans covering 1961-1985 for the People’s
Democratic Republic of Yemen and 1982-1986 for the People's Republic of the
Congo. They have participated actively in the preparation of long-term plans
for Ethiopia in 1983-1992 and for Guinea-Bissau in 1983-1986. Assistance is
being given to Angola and Mozambique in the development of annual and middle-

range plans.

Substantial assistance is also being given with the formation of national
atatistical services, banking affairs, and with the development of sector and
area comprehensive programs. For example, organizations and specialists from
the Soviet Union have worked out long-term programs for the development of the
petroleum and gas industries of Syria, India and Iraq, as well as the power
supply systems of Libya. They have also worked out long-term water- and land-
resource utilization programs for a number of river basins in Syria, Afghanistan,
Mozambique, Madagascar, Ethiopia, as well as a general scheme for the develop-
ment of fisheries in the People's Republic of Yemen over a 10-year period. The
governments of Algeria and Mozambique have entrusted Soviet specialists with the
task of monitoring the efforts of the national organizations in all petroleum
and gas exploration and drilling work, and in Angola they are helping state
organizations to monitor the activities of the foreign oil companies.

And finally, the further development of multilateral economic cooperation of
the USSK and the other CEMA member countries with the developing countries
stould be noted, For example, within the framework of the Soviet Union's econ-
omic and technical assistance in the area of the metallurgical industry, broad
use tas been made of the potential of Czechoslovakia, which supplied a number
of developing countries with rolling mill equipment, while the CDR has manu-
factured equipment for a light-section rolling mill in Iran and a wire mill

in Algeria. bulgarian construction organizations have served as subcontractors
im the fulfillment of nearly 30 percent of the obligations related to the con-
struction of an atomic research center and a significant portion of the power
transmission line construction, which is part of the Soviet Union's economic and
technical assistance to Libya. A consortium of USSR, Polish, and Hungarian
organizations was established, and it is successfully building the Isfagan
thermal electric power plant in Iran.

The 35th and 4th CEMA sessions pointed out the importance of expanding multi-
lateral cooperation with the developing countries and of combining on a planned
basis the efforts of the CEMA member countries to provide assistance to those
countries in the expansion of production, including the production of the most
important raw materials, power and foodstuffs, which could be purchased to
satinafy the needs of the socialist community. Many projects in this area have
favorable prospects; among them one can name first of all the development of
phosphate deposits in Morocco, the development of coking coal deposits in
Mozambique, copper ores in Afghanistan, and a number of power and agricultural
facilities in the countries of tropical Africa.

The consistent resolution of the tasks set by the 26th CPSU Congress in the
area of economic cooperation with the developing countries will undoubtedly
be accompanied by the emergence of new and the intensification of previously
developed directions and forms of work by Soviet organizations which are en-
gaged in providing economic and technical assistance to the young states of
Asia, Africa and Latin America. The continuous search for new ways to improve
werk in this area and the creative application of the experience of other
socialist countries constitute the absolute prerequisite for the raising of
both the political and economic effectiveness of the Soviet Union's foreign
economic ties.

55465
CSO: 1625/87

TRADE WITH LDC'S

BRIEFS

USSR-AFGHAN COOPERATION--The third session of the permanent inter-governmental
Soviet-Afghan commission on economic cooperation was held in Moscow on 4-5 July.
The commission approved the results of work by Soviet and Afghan organizations
on the implementation of bilateral agreements on economic and technical
cooperationand on trade. Detailed consideration was given to questions of
cooperation in the area of agriculture and irrigation, transportation, power
engineering, light industry, the food industry, geological prospecting and the
training of national personnel. The results of the session, which took place
in an atmosphere of friendship and complete mutual understanding, were used as
the basis for the signing of a protocol, as well as a number of inter-
governmental documents on issues of cCommercial-economic cooperation. The USSR
delegation was headed by Z.N. Nuriyev, deputy chairman of the USSR Council of
Ministers and the delegation from the Democratic Republic of Afghanistan was
headed by Kh. Abawi, deputy chairman of the Council of Ministers and chairman
of the Afghan State Committee. [Text] [Moscow EKONOMICHESKAYA GAZETA in
Russian No 29, Jul 83 p 21) 8543

CSO: 1825/87

GENERAL

CURRENCY RATES, UNDERLYING RATIONALE REVIEWED
l September Rates
Moscow EKONOMICHESKAYA GAZETA in Russian No 37, Sep 83 p 22

[Article by Ye. Zolotarenko:
as of 1 September 1983")

“Bulletin of Exchange Rates of Foreign Currencies

{[Text) Name of Currency Exchange Rate in Rubles

per 100. . 1. «6 wo s , a ceo ee eee ee 15.43
British pounds sterling per 100. a a oe oe ee ee ee ee 114.87
Argentine pesos per 100. ...+4+4++e+e+e88 8 © # © os 6.88
Afghan afghanis per 100. ...+6++e+¢+s+e0+80+8e8e8 © #8 © #@ @ 1.47
Belgian francs per 1,000 ...4.+4+6+6++6+6+se+8e088 © # © # @ @ 14.19
Burmese kyats per 100. ...4++s+se+se+s+e0e8 eee ee eee 9.41
Bulgarian levs per 100 ...4+6++e++ee0s8 © 8 © e+ # # @ ®@ 76.92
Hungarian forints per 100. . TReeaerne ee 7.67
Dongs of the Socialist Republ ic “of Vietnam per 100 . , 30.60
Chanatan cedis per 100 ...+4+4+6-6 .. 4 626s 27.09
Guinea syli per 100. ...46 6 «© eee eee ys 3.13
Marke of the GDR per 100 ....4+6-s ° °° 40.50
Deutsche Marks of the FRG per 100. .... ° 28.53
Dutch guilders per 100 ....4+6+++868 8 oe @ e ° 25.52
Greek drachmas per 1,000 ...4.+4+6+++8e8688 — 8.33
Danish krones per 100. .... » ° oe 8 ‘ 7.92
Egyptian pounds each. . . , aa ° 1.05
Indian rupees per 100. oe ee oe @ ° oe 7.46
Indonesian ruplahs pwe 1,000 .... . ko oe @ 0.75
Iraqi dimars each. ..++s+seeeeeveeve eevee 2 2.47
Iranian rials per 100. ...+++se+see0e08 ce eee ° 0.86
Icelandic kronas per 100 ...4+4+++8+88088 ° ° 2.70
Spanish pesetas per 1,000. .... + ° oe ee ° 5.01
italian lira per 10,000... . oe “wee ay 2 4.78
Dinars of the People's Democratic Republic of Yemen each . 2.21
Rials of the Yemen Arab Republic per 100....+4+46 16.09

Name of Currency Exchange Rate in Rubles

Canadian dollars per 100. ... 566 «see ee eees 62.27
Yuans of the People’s Republic of China per 100... . 37.35
Wons of the Democratic People's Republic of Korea

per 10D. eo cc ecereveeeeeee eee eee ee. 74.93
Cuben pesos each. « ss cc eceeveeeeeeeeeees 0.90
Kuwaiti dinars each .. s+ ccc eseveesveeeeves 2.61
Lebanese pounds per 100 ...464+6+6+6e6+e0+808 + 88 eee 16.15
Libyan dimares each. « «cs cceeveseeeseseeeees 2.48
Malaysian ringgits per 100. ...4.646s6 «eee eeees 32.54
Mali frence per 1,000 ...6ccevvevevseveeseee 0.94
Moroccan dirhams per 100. . 1.1 1s +s eee eeeee 10.37
Mexican pesos per 1,000 ...+4++e+s+8+80+8+8 8 #8 # # ees 4,91
Mongolian tugriks per 100 ...464+6+6++8e088 et e#ees 22.50
Nepalese rupees per 100. ..464+6+4+s066e080e8 8 ee ees 5.34
New Zealand dollars per 100 ...464+6+6+8+8+888 68s 49,13
Norwegian krones per 100. ... «6 «+ esse eee ewes 10.23
Pakistani rupees per 100. ....4se+ eee eee eeee 5.70
Polish zloty per 100. ..6..«+eeeevevevveeeseees 22.50
Portuguese escudos per 1,000. ...+4+4++e+e#+s++8888 6.16
Romanian leus per 100 ...4.4+++6e6+e0+8808088 8888 15.00
Singapore dollars per 100. ...466s6s6 eee ee ees 35.78
Syrian pounds per 100 ...464+4+6+6+s8es8e8 ee eeve0es 18.73
Somali shillings per 100. ...s4s« esse eee eeevesr 4,78
U.S. dollars per 100. ..4..264-e«ceeeevvveevevees 76.65
Sudanese pounds per 100 ...4+4+6++e+88 8 8 #8 e# eee 58.77
Tunisian dimars each. ... +6 s+ eee eevee eveves 1.12
Turkish lira per 1,000. . . 16. s+ se eeeeeveveveves 3.27
Uruguayan pesos per 100 ...4+4++s++0+80+8+88 8 # #@e 2.23
Finnish markkas per 100 ...4.+64+4+e6+s0s8 ee 80 e8eee 13.40
French francs per 100 ...4+6¢+e¢+se0s8e8 ee ee eees 9.48
Czechoslovak korunas per 100. ...46+4+4+ s+ eee # ee 12.50
Swedish kronas per 100. . . 1. s+ s+ e+ ee ee ee wwes 9.70
Swiss francs per 100. ...++s+seee8e8e8 eee eee 35.08
Sri Lanka rupees per 100... 544s «ese eeeeveer 3.14
Ethiopian birrs per 100 ...4+646+6+6+e6ee 8 #8 # # # ee 36.26
Yugoslav dinars per 1,000 ...46+64+e+s6+6e0e0 et eee eee 7.51
Japanese yen per 1,000. . . 16 ++ eee ee eee eves 3.11

Our Commentary

The USSR State Bank changed as of 1 September the exchange rates of 18 foreign
currencies. The exchange rate of the Austrian schilling, the Argentine peso,

the Belgian, French and Swiss francs, the Deutsche Mark of the FRC, the Dutch
guilder, the Greek drachma, the Danish krone, the Italian and Turkish lira and
the Moroccan dirham was decreased. The exchange rate of the U.S. dollar, the
Australian, Canadian and Singapore dollars, the Malaysian ringgit and the Finnish
markka was increased.

The decrease of the exchange rate of the dollar at the end of the second 10-day
period of August was short-term, by the beginning of September it was increased

again. The main factor of such a movement of the exchange rate is the anticipation
by the market of new restrictive actions on the part of the U.S. Federal Reserve
Bank, which can lead to the further increase of interest rates.

The signs of the slowing of the just begun “recovery” of the U.S. economy also af-
fected the market predictions. Among these signs are the July decrease of the
backlog of orders in industry by 1.7 percent and house sales by 6.5 percent, as
well as the increase of the trade deficit to $6.36 billion in July as against

$4.96 billion in June and the 0.4-percent increase of the reserves of raw materials
and materials in industry.

At the same time the worsening of some economic indicators of the FRC occurred.
Ite foreign trade assets decreased from 3.9 billion Marks in June to 2.1 billion
Marks in July, the increase of consumer prices accelerated somewhat. This led to
a slight decrease of the exchange rate of the Mark of the FRC, and along with it
of the majority of currencies of the member countries of the European Monetary
System.

The price of gold on international markets remained at the level of $418-420 per
ounce as 4 result of the appearance of two opposing trends: the increase of the
exchange rate of the dollar acted in the direction of its decrease, while the ag-
4ravation of the tension in the Near East and Africa acted in the opposite direc-
tion, in the direction of its increase.

Rate Changes Explained
Moscow IZVESTIYA in Russian 10 Aug 83 p 4

[Article by Candidate of Economic Sciences V. A. Gromov, chief of the Exchange
Rates Department of the Main Currency and Economic Administration of the Board of
the USSR State Bank: “The Ruble and Foreign Currency")

[Text] A bulletin of the exchange rates of foreign currencies
is published each month in the newspaper IZVESTIYA. What are
the changes in these exchange rates due to and of what economic
importance are they for our state?

A. Krasivekiy, Moscow

IZVESTIYA asked Candidate of Economic Sciences V. A. Gromov,
chief of the Exchange Rates Department of the Main Currency and
Economic Administration of the Board of the USSR State Bank, to
answer these questions.

internaticnal economic relations presume the trade in goods and services of some
countries with others. This trade is carried out in monetary form. Since no com-
mon international money exists, the national currencies of states are involved in
international settlements. Here for one of the trade partners the currency of

the transaction is always a foreign currency. Therefore objectively in interna-
tional economic relations there always exists the need for the exchange of na-
tional currency for foreign currency: the buyer needs foreign currency for the
payment for imported goods, while the seller, on the contrary, needs national money

in exchange tor foreign receipts. The proportions, in which such exchange is car-
ried out, are called the exchange rate. The exchange rate can be established
spontaneously on the exchange markets, where it is formed under the influence of
miny factors. As opposed to the market method of the formation of the exchange
rate there also exists the method of its state regulation.

The planned nature of the development of the national economy of the Soviet Union
also includes the sphere of foreign economic relations, while the establishment of
the exchange rate is one of the important functions of the management of these re-
lations. When specifying the proportions of the exchange of the Soviet ruble for
foreign currencies, we are thereby to a considerable extent specifying the value
proportions of foreign trade exchange and its effectiveness from the point of view
of the national economy. For if the exchange rate of the ruble is “overstated”
(that is, the foreign currency is valued too cheaply), many goods become more prof-
itable to buy abroad than to produce ourselves. If the exchange rate of the ruble
is “understated,” the effectiveness of Soviet exports is artificially decreased and
the enterprises, which produce export products, do not have adequate financial
stimuli.

Therefore the most important demand, which is made on the establishment of the ex-
change rates of foreign currencies to the ruble, is their realisticness, that is,
the conformity of the exchange proportions to the purchasing power of the cur-
rencies. Here it is necessary to bear in mind that the comparative purchasing
power of currencies can change within broad limits depending on what goods are
used for comparison. In order to avoid possible distortions in this matter, a
wide “selection” of goods, which represent all the basic types of products pro-
duced in our country, has been made the basis for the exchange rate of the Soviet
ruble to the dollar (and in terms of it to other currencies). But a calculation

of this kind due to its labor intensity and complexity cannot serve as an efficient
tool of the establishment of the exchange rates of foreign currencies to the ruble.

Therefore their current adjustment is made by a special method, which takes into
account the movement of the exchange rates of the most important capitalist cur-
rencies with each other on the international exchange markets. This method has
the name of “a basket of currencies." Its essence consists in the fact that the
“orice” of a ruble is equated with the current market value of the foreign compo-
nents of the “basket,” that is, to the fixed proportions of several foreign cur-
rencies, which have been added together. The choice of the foreign currency com-
ponents and their quantitative proportioning take into account the role of indi-
vidual capitalist currencies in the foreign settlements of the Soviet Union.

The method of “a basket of currencies" makes it possible to keep track very effi-
clently of all the changes on the exchange markets. However, from a national eco-
nomic point of view there is no reed to carry over automatically all the spontane-
ous fluctuations of the capitalist market to the exchange rate of the Soviet ruble,
since frequent changes of the exchange rates create difficulties in the accounting
of foreign currency operations. In order to ensure some stability of the exchange
rates, the USSR State Bank adjusts them periodically, in recent times twice a month.
For the purpose of the prompt notification of the workers of the ministries and
departments, which make currency settlements, all the changes of the exchange rates
of foreign currencies to the ruble are published in the newspaper IZVESTIYA.

7807
CSO: 1825/83

GENERAL

MOSCOW INTERNATIONAL TRADE CENTER DESCRIBED
Moscow MOSCOW NEWS in English No 35, 4-11 Sep 83 p 8

[Article by Viktor Yevkin]

[Text] Businessmen treasure their time. business information or

and Technical Cooperation with Foreign Countries (CIT)
EVERYTHING UNDER which represents-on contractual SOcountries In 1961, the Moscow CIT
ONE ROOF terms ~ the commercial interests of was the venue of its 12th Ceneral
a huge complies of foreign customers, offers its services Assembly After the meeting. | asked

im which the missions of more than a reception, excurnon

% terms and banks from the USA, = theatres and concert halls SOME HISTORY

Japan, the PRC, Prance, Maly, and

other countries have already celebrat THE VENUE bay 4 Ld establishment

ed their housew porte, he OF INTERNATIONAL MEETINGS Ad a 1h to say

their dusposal are closed circuit object Soviet.

advertise their , Woraries, in This car well be said about the CIT American cooperation,” | was told

formation computer-leasing Where some 150 economic, scientific Vyacheslav T , Deputy

services etc and technical congresses sympo §=©Director of V/O Sovincentr “All the
‘Work hard, play hard” is the sums, conferences. exhibitions. and = piganing and materials calculations

motto some specialists hold for seminars were held last year alone § were done jointly with the Bechtel

success in work Therefore, the CIT The Centre welcomed 6,000 partici 2nd Welton Beckett companies Part

has 4 sports and health building pants in the 9th World Congress of of the equipment and materials was

compiles with gymnasiums, swim Cardiology, it was the venue of the dought in the USA

mung pools and saunas. restaurants, 7th annual meeting of the US USSR “while our due to these
cates, bars. etc Trade and Econom« Council fiers. we would like to stress that the
ON A COMMERCIAL BASIS This year the CIT received the onstruction of the CIT experienced

The CIT « operated by V/O
Sovincents of the USSR Chamber of — Shroad it has seen the mectonn
a eae ae the BritishGowiet and the French. construction was suepended for a
up for the purpose its firms offer whole year, and Carter's ‘pre
different services connected with the = the ~soth European Congress of pie’ eubarpe affected mney oopghes

ization of business meetings, Rheumatologists The Americans refused to carry out
ural and communal facilities. and a number of starting and adjustment
hotel accommodation V/O Sovincentr has taken an active ations. which, sstursity, had its

cooperate with our country have their but also
offices in Moscow inpred, a. firm ore than 100 organizations from 4.1255 firms themecives

CSO: 1812/09

CENERAL

OIL AND GAS-83 EXHIBITION IN BAKU, WESTERN COMMENTS

Moscow MOSCOW NEWS in English No 42, 23-30 Oct 83 p 4

[Interview by Valery Grigoryev]

[Text]

“Prendly relations between
Countries ate more important than
commerce * “Turing the last five
years the volume of deliveries my
form thas made to the USSR has
neatly doubled and can merecase
further “© “The USSE not only
» powerful, but also an utterly
rcliatle partner © “We have been
cwuperating with the USSE for
2 years and during all thes time
cooper mien hams =6tecadily =m
cremed * “We cannot remember a
wngic case when the USSE has not
fulfiiied is contractual obliga
tons © “My tiem Maruben: will
ingly Carries Ous Commercial trans.
athons with the USSR ~

| heard the above said at the
International Exhibition, Ov and
Cat} m Baku. capital of Azer
baijan The statements came from
people who were far from being
Communists, and all the more
mteresting were their anewers to
two questions | asked them in an
mierview The questions were

1. Why do you trade with the
Usen’

2. What ts your attitude to the
motives are

tonal trade’

Bobby E. Taylor, president of Bet
Trading Associates Inc (USA). re-
pled

“Dering the last five years trade
between my firm and the Soviet
Union has imcreased from 10 to
between 15 to 20 milion dollars It 1s
a tone result consedering the re
cession in the world market The
eshitition Oil and Cas-76 which
took place in Baku and which we
attended. played an important role

.the USSR and | maintained that

board ships. or im conditions of
open sea
“In a word, the Soviet Union is
smply a powerful partner for us
is also utterly rehable

“| agree that the present-day
political situation in the world, to
put it mildly, « disturdi but
politics politics, and fulfilling

m wach 2 leap it goes without
saying that we pin all our hopes on
the Onl and Cas-63 exhibition

“I spoke twice in Congress about
my countrys trading policy with

only narrow-minded people can
~ - Ay be of limitation on
t ¢. nessmen have More
Se ee
perience im ’ ' VE = Robert G. Plastre, director of the
embargoes t. practice ay a Inter Trade Producers’ Association
country which hes introduced them, © Equipment for the Oil, Ces and
Geothermal industries (France),
“This was the case with both em- commented
bargoes brought in by Presidents “We have been cooperating with
Carter and Reagan Because of these the USSR for 20 years and during al!
embargoes American business lost this time cooperation has steadily
nearly half a billion dollars a year. increased We supply floating and
which was found by competitors in stationary oi) drilling equipment.
Western Europe and japan” diving and immersion technology
Rolf Dressler, head of the sales for work in very deep water and so
department in the USSR and other on it just so happened that
socialist countries for the firm American firms also participated in
Blohm & Voss AG (West Germany), Ovf work US restrictions on trade
stated with the Soviet Union, however,
“Today m the Hamburg docks we forced us to look for other partners
have just finished assembling a self. $0 44 to complete Soviet contracts
unloading barge with a cargo 5° these measures cost us a ict“
capacity of 14 thousand tons It will Franz M. Schlager, international
which 1s being built mm Azerbaijan '€ Province of Alberta (Canadaj
This order provided work for ten 4
per cent of our shipbuilders “A conmderable area of the Soviet
“Ties between our firm and the Union, as is the case in Canada, is
USSR are not only limited to the subjected to a severe climate And it
supply of technical equipment We is exactly in these areas where the
also work with the well-known Soviet Union's present-day oi! re.
Paton Institute of Electrical Weld search is going on and 80 per cent of

ing im Kiev Specialists there devise Canada’s oj) and su is
new methods of welding and we concentrated Therelore fiems from

make the equi t and ships. the ‘oil-rich’ Canadian province
which use these methods to weld Alberta d their products at the
large-diameter pipes either directly Oi) and #3 exhibition They

ob its i

pile tn 283

H i it ih

il a
aaa agit?
ea he ft
i fa Hi
auth a

if tS z
a ny
iat at H

THE an

1812/09

cso:

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