ATTEMPTS BY EASTERN EUROPE TO OBTAIN I A AND I B EXPORT CONTROL ITEMS THROUGH T

Created: 12/10/1948

OCR scan of the original document, errors are possible

LVT&LLIGSNCE AGENCr

8

IWrELLIQSJJCEHO. %

SUBJECTi Attempts by Eastern Europe toxport control items through traneahlpsonta

1. An increasing flow of reports received by CIA reveal tbe organised covert efforts that are being made by Eastern Europe to obtainndtems through third countries. It has not always been possible for the Department of Commerce towith certaintystern European consignees of goods exported under license are legitimate end-users of the products; consequently, some licensed exports nay be transshipped to Eastern Europe. In the case of exports to latin America and other areas outside of Europe, licenses are not required; the opportunities for transshipment to Eastern Europe, therefore, are much greater than elsewhere.

2. The following reports illustrate various methods ofcurrently being used or attempted*

%. Cpgaodjtyi Machine tools.

PflRUnfltioni Hungary.

linment coint* Switzerland.

oheim Inreudaneat, authorlsod by the Hungarian Central Board of heavy Industryarried on negotiations with Englsr and Company, Zurich. Stadthaus-qualor acquisition of OS machine tools. (The manager of the Swiss company has announced himself topecial 1st in illegal transactions. He lo reported to havo engaged in tranaahiomenta of cDomical base nateriala (phenol, for example) to Hungary prior)

J?. Commodity; Blast furnaces. PflPfrUmtlppi Yugoslavia.

Document No. TheHANGS in Class.

|jg DECLASSIFIED

Class. c'w'."ged TO: IS

pruth: _DDAl?s3 Datl

SECRET

. Tranaant.lonn lnwoTyM' Yugoslav agents, wishing to purchase two blast furnaeae froa tha Voest Company of Umirectly to ths Dutch Shipbuilders" Syndics to* In Tho Hague (Dlrektorat ran Soheepabous^a'Cjavaiihage)revious denial of tbe sale to Cseehoelovaxla oo the part ofustrian authoritlea had forewarned theeimilar refusal. Tan dor Graaf, tho Syndicate's Secretary General, oa offerubstantial bribe, undertook to onen negotiations for trmns-nhipment through an Austrian boalnessBan In Switzerland -ho haa excellent connections In Voest.

s- Commodity! Diesel engines.

CflaUnaliejji Yugoslavia.

aaflnft Canada.

_ IrwMBtlimn InTQjJial' Th" council of the Canadian South Slavs Reconstruction fund, believed to be locatedaaobell Avenue, Vaneouvnr, B. C,arge OS stationary- and marlne-Dlesel engine manufacturing concern onbout the possibility of manufacturingiesel marlnm engines ofP for export to Yugoslavia. Since US export controls wuU not allow shipment, theirm suggested dealing through ita Canadian subsidiary.

J. ftsMPdUT' Twenty large-slie portable air cowprooeors. Dafrt.im.nnn. Bulgaria.

flti npl|ht-: Canada.

TrMsactlens Jaeger Hschloeof Columbus, Wiio, shipped the conpro*flora to Canada for traneshlpoent to Bulgaria, on order offficial Bulgarian purchssing agency.

Comodltvi Oil equipment. PpotipnUgni Rumania.

Transactionswiss firm hasontract5 rim, reported tolson and Cowranr" for tranBshlpsent to Rumania (see

3. Collection of lnformmtiooimilar nature and Its dlsaeadna-tion to appropriate United States authorities would assist In thein the amount of illegal transshipment to Eastern Europe.

SEC/RET

Original document.

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