Page:NATIONAL INTELLIGENCE SURVEY 18; CZECHOSLOVAKIA; THE ECONOMY CIA-RDP01-00707R000200110014-8.pdf/22

This page has been proofread, but needs to be validated.

APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110014-8


Communist countries. Moreover, military equipment is an important export to the less-developed countries. Czechoslovakia supplies the equipment on liberal credit terms; repayment usually is in raw materials—particularly oil, ore, and cotton.


b. Chemicals

The chemical industry is one of the fastest growing branches of the economy. According to official data, gross output of the chemical industry (including the production of coke chemicals but excluding rubber products) increased in 1972 to more than seven times the 1955 level. However, the industry started from a small base after World War II so that by 1971 it accounted for only 6% of gross industrial output and 4% of the industrial labor force. The most rapidly growing sectors have been those producing plastics, chemical fibers, synthetic rubber, fertilizer, and closely related intermediate chemicals such as synthetic ammonia and nitric acid (Figure 9). During the Fifth Five Year Plan (1971-75) output of the chemical industry is scheduled to grow by about 60% compared with an increase of about 35% in total industrial production. Output of plastics and synthetic fibers is to double and an 80% increase is dated for synthetic rubber.

Two-thirds of the current output of chemicals is accounted for by plants in the Czech Lands—Bohemia and Moravia. Production in these areas is based to a substantial degree on local deposits of coal. The relative importance of Slovakia, however, is growing along with the increasing use of petroleum and natural gas as chemical raw materials. The largest petrochemical installation in the country is the Slovnaft combine near Bratislava, which produces ethylene and other petrochemicals from Soviet crude oil.

Although Czechoslovakia is an important producer of chemical equipment, a significant portion of petrochemical and other equipment and technology required for the industry has been purchased in Western Europe, Japan, and the United States. Equipment installed at the Slovnaft combine and elsewhere, for the processing of petroleum byproducts into plastics and other items, is largely of Western origin. Czechoslovakia also imports most major chemical raw materials and many finished products as well. Petroleum and natural gas are imported from the U.S.S.R., potassium salts from the U.S.S.R. and East Germany, sulfur from the U.S.S.R. and Poland, cellulose from the U.S.S.R. and Scandinavia, phosphates from the U.S.S.R. and North Africa, and soda ash and synthetic rubber from a number of Communist and non-Communist suppliers. However, surpluses of coke chemicals and derivatives such as dyestuffs are available for export, reflecting the fact that Czechoslovakia is one of the major producers of coal and coke in Eastern Europe. At present, Czechoslovakia is a net importer of chemicals but the regime hopes to redress the balance in future years by a rapid increase in exports of plastics and other newer chemical products.

Czechoslovak trade in chemicals is also scheduled to grow as a result of collaboration in chemical production among Eastern European countries. Under an agreement signed in 1971, East Germany will ship ethylene and propylene from a plant under construction at Boehlen to Czechoslovak plants being


FIGURE 9. Principal products of the chemical industry (C) (Thousands of metric tons)
1950 1955 1960 1965 1970 1971 1972
Sulfuric acid (100%) 252 383 553 933 1,110 1,163 1,189
Synthetic ammonia (as N)[1] na 55 130 226 329 336 344
Nitric acid[2] 54 114 322 507 737 753 771
Caustic soda (100%) 49 82 115 158 189 202 210
Hydrochloric acid (as 32% acid) 26[3] 69 76 106 134 139 na
Nitrogen fertilizer (as N) 35 60 140 220 324 336 344
Phosphorus fertilizer (as P₂O₅) 61 98 147 258 322 331 334
Cellulosic fibers (rayon) 26 48 59 69 69 70 70
Synthetic fibers Insig 1 3 10 31 39 47
Plastics and synthetic resins 11 31 64 126 245 265 na
Synthetic rubber na 1 1 23 48 48 51


16


APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110014-8

  1. Expressed in terms of nitrogen content.
  2. Estimated.
  3. Data for 1948.