KHRUSHCHEV ORDERS ADDITIONAL IMPORTS OF WESTERN EQUIPMENT FOR THE HIGH-PRIORITY

Created: 4/17/1963

OCR scan of the original document, errors are possible

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KHRUSHCHEV ORDERS ADDITIONAL IMPORTS OF WESTERN EQUIPMENT FOR THE HIGH-PRIORITY AGRICULTURAL-CHEMICAL SECTOR

CIA HISTORICAL REVIEW PROGRAM RELEASE AS9

73

CENTRAL INTELLIGENCE AGENCY Office of Research and Reports

KHRUSHCHEV ORDERS ADDITIONAL IMPORTS OF WESTERN EQUIPMENT FOR THE HIGH-PRIORITY AGRICULTURAL-CHEMICAL SECTOR

Accordingeport ofarch. Premier Khrushchev,isitoviet urea fertilizer plant being built in Tula Oblast. stated that construction of urea plants had to be accelerated and that this task would be given Ihe highest priority. The urea plant visited is one of four being suppliedestern firm, and Khrushchev, on learning that the firm also had contracted to supply part of the equipment for other Soviet urea plants, ordered that four additional complete plants be purchased instead. Judging from theigh priority, already foreshadowedow is being given by the USSR to construction of plants producing agricultural chemicals. Tho purchase of four more plants, if confirmed, will be additional evidence that Soviet equipment and instrument manufacturers are unable to meet the presentfor the fertilizer industry andery sizable portion of the equipment needed to provide the scheduled increases in production of urea during the Soven Yearill come from the West. Although the high priority being given the fertilizer industry iso result in fulfillment of the Soviet goal to produceillion tons of mineral fertilizersncreases in capacityill be significantly higher than those.

The four plants already ordered by the USSR apparently willotal capacityons of urea, or aboutercent ofillion tons planned lor production in the USSR/ As ofonstruction of the first three of the Western-supplied plants reportedly was behind schedule by periods rangingonthsear,ut all four plants should be in operation well

The urea produced in the USSR is to be used predominantly as fertilizer and as animal feed. Urea also can be used in production of plastics and explosives andossible starting material in production

oftorable missile fuel. These nonagricultural uses,would be satisfiedar smaller production of urea than is at present planned in the USSR.

The scheduled increase in production of urea is the result of anot only to add to tbe total volume of fertilizers but also to utilize more concentrated fertilizers. Urea contains aboutercent nitrogen Asboviet nitrogen fertilisers contained an average ofercent nitrogen and probably have not changed appreciably since. The higher nutrient content per unit of weight should permit lowerfor transportation.

The present Soviet emphasis on the fertilizer industryupplementary allocation of investment for the fertilizer sector was announced for that year and an incentivesintroduced to stimulate lagging construction and production. aj According to data on the progress of the fertilizer industrynd the planowever, annual increases of fertilizers in theears of the Seven Year Plan will have averaged only aboutillion Ions. Annual increases ofillion tons will therefore be needed45 to meet the production goal ofillion tons Although it is highly unlikely that tbe goal will be attained {and indeed the goal itself may even behe present emphasis on.rapid expansion probably will continue, and increases in capacityill be significantly higher than those.

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Original document.

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