Western Technology and Soviet Economic Development 1945 to 1965 Third volume of a three-volume series By ANTONY C. SUTTON HOOVER INSTITUTION PRESS STANFORD UNIVERSITY, STANFORD, CALIFORNIA 1973 134597 The Hoover Institution on War, Revolution and Peace, founded at Stanford University in 1919 by the late President Herbert Hoover , is a centerfor advanced study and research on public and international affairs in the twentieth century. The views expressed in its publications are entirely those of the authors and do not necessarily reflect the views of the Hoover Institution. Hoover Institution Publications 113 International Standard Book Number: 0-8179-1 131 -6 1973 by the Board of Trustees of the Leland Stanford Junior University All rights reserved Library of Congress Catalog Card Number: 68-24442 Printed in the United States of America FOR Jane and Elizabeth Preface The considerable financial burden for this three-volume study has been borne by the Hoover Institution on War, Revolution and Peace established by former President Herbert Hoover at Stanford University. The Institution's extensive archival holdings, a library in excess of one million volumes, first-rate research it an facilities, and the unique freedom given to individual researchers make unparalleled center for original research. The Institution is, of course, in no way responsible for my errors and omissions, nor does it necessarily accept my argument. this study Of the many at the Hoover Institution who have contributed to the special mention should be made of Dr. W. Glenn Campbell, Director of Hoover Institution since 1960; Mr. Alan H. Belmont, Associate Director for Administration; and Dr. Roger A. Freeman, Senior Fellow. The assistance gratefully given by the expert curators and an efficient Library staff is also acknowledged. The Hoover Institution Press, headed by Mr. Brien Benson, handled the publication chores for the series and particular acknowledgment is due the editorial staff: Miss Michelle Hogan, former production editor; Miss Liselotte Hofmann, assistant editor; Mr. London G. Green, the editor directly responsible for the first two volumes; and Mrs. Carole Norton, who supervised the editorial work on volumes One and Two and undertook the detailed editing of this final volume. Miss Marcia Taylor compiled the bibliography and Mrs. Joan Johanson com- piled the index for this volume. To these and others who have given their assistance—thank you. Stanford, California A. C. S. June, 1970. Contents XVII Tables xxiii Figures xxv Introduction Mechanisms: 1945 to 1965 PART 1, The Transfer Agreement," 1941 ,o!946 3 CHAPTER ONE: LendLeaseandihe "Pipeline Protocols USSR Lend Lease Program: The Supply the Soviet Umon Composition of Lend Lease Supplies to ^ 1945 The Pipeline Agreement of October 15, ^ U.S.S.R United Kingdom Lend Lease to the ^ Belorussia to the Ukraine and UNRRA Supplies ]3 Receipts Soviet Requests and Soviet 15 the Soviet Union . Chapter Two: World War 11 Reparations for Soviet Reparations Policies Objectives of the ig Plants Salvaee Value of Dismantled ,, Reparations *«&*"- " Organizational Structure of the German Zones to the Soviet Un.on g Plants Shipped from Allied Reparations 2J> Soviet Zone of Germany Plant Removals from the and Technicians Deportation of German Scientists • ^ • • 1955 • Reparations from Finland, 1944 to ^ Japan Reparations from 34 Manchuria Removals from 37 Reparations from Italy 37 Removals from Austria Reparations and 3g Rumania Reparations and Removals from ..... • Three: Trade as a Transfer Mechanism • Chapter Union 43 Capita. Goods to the Soviet iSS Kingdom as a Supplier of Soviet Union Capital Goods to the . 46 Germany as a Supplier of Union Capital Goods to the Sov.et Italy as a Supplier of Contents Scandinavia as a Supplier of Capital Goods to the Soviet Union 49 Japan as a Supplier of Capital Goods to the Soviet Union .... 50 East European Countries as Suppliers of Capital Goods to the Soviet Union 51 Western Restrictions on Trade with the Soviet Union 53 Effect of Western Export Control Restrictions 54 Chapter Four: Technical Assistance and Foreign Prototypes ... 56 Chapter Five: Financial Aspects of Technical Transfers 66 Banque Commerciale pour 1' Europe du Nord 70 Chase National Bank 71 U.S. Credits for Finland: Administrative Schizophrenia 72 Chapter Six: Patterns ofIndirect Technical Assistance to the Soviet Union 76 Direct Transfers of Technology Originating in the United States and Europe 77 Technical Cooperation Agreements with Socialist Countries .... 78 Technical Assistance from Czechoslovakia to the Soviet Union . 83 Specialized Assistance from Yugoslavia 85 Polish Assistance in Shipbuilding 86 East German Technical Assistance to the U.S.S.R 88 An Example of Indirect Transfer of a Technology: Marine Diesels 89 Chapter Seven: Western Equipment and Soviet Foreign Aid . , 92 The Bhilai Steel Project in India 92 The Role of Egyptian Contractors and Foreign Equipment in Building the Aswan Dam 96 Other Soviet Projects in the Underdeveloped World 98 Part II. Technical Transfers and Their Role in Soviet Industry ChapterEicht: WesternOriginsofMiningandExcavating Equipment 103 Foreign Origins of Underground Mining Equipment in the Coal Industry 106 Beneftciation of Iron Ore 1 09 The Peat Industry in Russia Hi The Origins of Soviet Excavators 112 Chapter Nine: Western Assistance to the Nonferrous Metal Industries 115 Canadian Assistance for Nickel Production 115 ^ Contents The Copper Mining and Smelting Industry ^ Aluminum Production in the U.S.S.R '/'*"','" ' Industry to the Soviet Removal of the German Magnesium Alloy ^ Union and Steel Chapter Ten: Western Assistance to the Soviet Iron ^ " Industry _ 2 1950 12 Blast-Furnace Design and Operations since ^ Blast-Furnace Innovations 124 Casting of Steel Continuous ]27 Soviet Union Steel Rolling Techniques in the ^g Pipe and Tube Industry The Steel l31 Soviet Contributions to Metallurgy 133 Chapter Eleven: WesiernOriginsofPetroleumandAlliedlndustries Development The Turbodrill: An Indigenous ^ U.S. Origins of Refinery Processes ^ of Natural Gas Utilization Development ]3? Plants • The German Hydrogenation Q Briquetting Industry Removal of the German Brown Coal j Koppers-Becker Coke Oven Technology Chemical and CHAPTER Twelve: Western Assistance to the Basic Fertilizer Industry .., Chemical Plan Western Purchases for Khrushchev's Production Program for Expansion of Fertilizer and Plastics Chapter Thirteen: Western Assistance to the Rubber ^ Industries ^3 Synthetic Rubbers Introduced after 1945 Acetylene Production of Calcium Carbide and Production Western Assistance for Rubber Tire Industries Technical Assistance to the Plastics and Cement Chapter Fourteen: Western Assistance to the Glass ^ Industries , jg^ Western Assistance to the Glass Industry Western Assistance to the Cement Industry Textile, Chapter Fifteen: Western Technical Assistance to the Industries Synthetic Fiber, and Pulp and Paper ^ Textiles and Chemical Fibers Duplication of Western Textile Equipment Contents Western Development of Soviet Synthetic Fiber Capacity 178 Origins of Nylon 6 (Kapron) and Nylon 66 (Anid) Technology 180 Krupp Construction of the Stalinogorsk-Kursk Lavsan Complex 182 Polyspinners, Ltd., Construction of the Siberian Lavsan Plant. 183 Purchase of Japanese Kanekalon and Acrylonitrile Plants .... 184 Western Assistance to the Pulp and Paper Industry 184 Chapter Sixteen: Western Assistance to the Motor Vehicle and Agricultural Equipment Industries 191 The Motor Vehicle Industry 191 German Automotive Plants Removed to the Soviet Union ... 193 Origins of the Moskvich Passenger Automobile 197 The Ford-Gorki Plant 198 The Moscow Plant im. Likhachev 198 The Odessa Truck Assembly Plant 199 U.S. and Italian Assistance to Volgograd (VAZ) 200 Tractors and Agricultural Machinery 203 The S-8Q and S-100 (Caterpillar) Crawler Tractors 205 Wheel-Track Tractors in the Soviet Union 210 Origins of Other Farm Machinery and Equipment 211 The Rust Cotton-Picking Machine 212 Chapter Seventeen Western Origins of Soviet Prime Movers . 214 Foreign Technical Assistance to Soviet Marine Engine Construction 221 Diesel Engines for Truck Use 223 Diesel-Electric Prime Movers 224 Internal Combustion Engines 224 French Origins of Marine Gas Turbines 226 Western Origins of Soviet Steam Turbines 226 Origins of Marine Boilers Installed between 1945 and I960 ... 228 Chapter Eighteen: Western Assistance to Soviet Atomic Energy 231 Soviet Theoretical Work before World War II 231 Contribution of the Atomic Spies to Soviet Work 233 The German Contribution to Soviet Atomic Energy Projects ... 234 Industrial Aspects of the Soviet Atomic Program 239 Soviet Uranium Mining in Saxony: Wismuth A.G 241 The First Soviet Reactor 242 CERN Assistance for the Serpukhov Proton Synchrotron 245 Chapter Nineteen: Western Origins of Soviet Railroad Locomotives 248 American Origins of Diesel-Electric Locomotive: 249 . X1U Contents 252 Locomotives Foreign Prototypes of Electric andSpaceTechnology 254 WestemOrigins ofAircraft Chapter Twenty: 254 Aircraft Design and Engine Technology Sov.et Zone Aircraft Engine Industry in the The German 261 Technology to the U.S.S.K. Transfer of German Technicians and ^ Engine Development of the First Soviet Jet Rolls-Royce Nene and Derwent Turbojets ^ Aircraft Soviet Acquisition of Four-Engine Manufacturing Industry 268 The German Contribution to the Aircraft • • • • The Soviet Space Program • y __ World War II .... in German Rocket Technology at the End of Technology The Balance Sheet on German