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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200070030-5

sulfur. Sulfur mining in Poland began on a significant scale in 1961. Since then, output of elemental sulfur has increased rapidly to about 3.0 million tons in 1972. By 1975, output may reach 5 million tons, a level currently exceeded only by the United States. Favorable geological conditions permit much of the incremental output to be mined by the highly efficient Frasch process.

Sulfur exports have kept pace with domestic production and have become a major source of foreign exchange. Exports increased from 241,000 tons in 1965 to 1.8 million tons in 1970, 2.1 million tons in 1971, and, according to a preliminary report, 2.5 million tons in 1972. By 1975, Western experts estimate Poland will be exporting about 4 million tons per year. At present, more than 75% of the exports go to non-Communist countries.

Salt is found in abundance in Poland, and a small amount is exported annually. The country has only small resources of other nonmetallic minerals, and depends on imports for its entire supply of potash and all but a small fraction of its supply of phosphate rock. Poland has extended credits to the USSR for the development of Soviet potash and is being repaid in deliveries of this material during 1970-80. The arrangement has resulted in the USSR's replacing East Germany as Poland's principal source of potash. Poland also receives large annual deliveries of apatite concentrates from the USSR.

Poland produces a wide variety of construction materials. The 1972 production of nearly 14 million metric tons of cement resulted in Poland ranking as the eleventh largest world producer and the largest among the East European countries. Cement output is inadequate to meet Polish demand, however, even though output has been growing at approximately a 7% annual rate for several years. The shortage has compelled Poland to become a net importer of cement, which is purchased primarily from the Soviet Union, although limited quantities are exported primarily to East European countries. This cement shortage should eventually be alleviated by the future completion of what will be the two largest Polish cement plants. The larger of these two plants is to receive its kilns and other equipment from the Soviet Union and is scheduled to begin production in 1976. Construction on the smaller one is expected to commence during 1973. The production of cement, as well as other construction materials, is shown in Figure 14.

Poland produces sufficient quantities of lime and plaster to satisfy the needs of its construction industry, Since 1970, the output of lime for construction and industry has grown annually at a rate exceeding 6%. The output of wall materials has increased fairly steadily at a slower pace than lime, although the growth rate of production of brick wall materials have been substantially less than all wall materials considered together. Poland has adequate clay resources to support increased brick production, but has invested relatively little in the expansion of brick capacity, which reflects a Polish preference for substitute wall materials. Finally, the production of burnt tiles has continued its secular decline.

In addition to cement, Poland carries on international trade in several construction materials. It has been a net exporter of window glass for several years, although in recent years this market has failed to grow. Poland's largest window glass customer is the United States, which has purchased a growing proportion of window glass exports. Other construction materials exported by Poland include limestone, dolomite, fire clay, gypsum stone, gypsum cement, lime, and clay brick. Several construction materials are imported however, such as limestone, dolomite, kaolin, graphite, asbestos, asbestos cement, brick facing tile, and pre-cast concrete.

4. Manufacturing and construction (C)

a. Machine building

Machine building is Poland's largest industry, accounting for 27% of its total industrial output in 1971. As the focal point of Poland's industrialization efforts throughout the postwar period, machine building has been accorded top priority in the allocation of investments, skilled labor, materials, and the best available management. Although the share of total investment going into machine building declined somewhat after 1955, the industry (including metal processing) still received about 15% of total industrial investment during 1956-65. This share increased to 19% during 1966-70. The gross value of output increased over 300% between 1960 and 1971. Exports increased even more rapidly than production. In spite of the rapid growth of its machine building industry, however, Poland remains highly dependent on imports for complex modern machinery.

The Polish machine building industry produces a wide variety of products. Transportation equipment - including railroad locomotives and cars, ships, and automotive equipment - accounted for about 34% of total output in the industry in 1971. "Electrotechnical equipment," the term used by the Poles to describe such items as generators, transformers, cables, and electronic equipment, comprised 17% of total

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200070030-5