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

economic plans throughout the postwar period and has received a sizable share of total industrial investment. During 1961-71, this share amounted to about 14%.

The output of the chemical industry has increased rapidly. In 1971, it was more than 18 times that of 1950 and twice that of 1965. The industry has been exceeded in its rate of growth only by the machine building industry. In 1971 the chemical industry accounted for 9% of total industrial output, compared with 1.6% in 1950 and 5.5% in 1960.

Poland produces large amounts of sulfuric acid, synthetic ammonia, nitric acid, caustic soda, chlorine, and hydrochloric acid. Recent emphasis has been placed on increasing the production of fertilizers to support agriculture and also for export, and on the development of a large-scale petrochemical industry to provide the basis for an increased output of plastics, synthetic fibers, and synthetic rubber. Petrochemical facilities at the Plock refinery have started production, using petroleum from the USSR. Poland's natural gas deposits may also be used for petrochemical production.

Poland is by far the largest producer of nitrogenous and phosphatic fertilizers in Communist Eastern Europe. In 1971, the output of nitrogenous fertilizer was nearly three times as large as in 1965, and the output of phosphatic fertilizer was twice as great. Phosphates and apatite from the USSR are used in making phosphatic fertilizer. The entire supply of potash fertilizer is imported, mainly from the USSR and East Germany. Spain and West Germany supply smaller amounts.

Poland produces more than 80% of the chemical fibers used domestically. More than half of the chemical fiber output consists of rayon. The production of synthetics, such as nylon, orlon, and dacron, has been growing rapidly, while the production of rayon has remained about the same since 1965.

Poland stated producing synthetic rubber in 1959. By 1971, output covered more than 40% of domestic consumption. In 1965, Poland purchased a plant of Western origin to produce butadiene for use in the manufacture of synthetic rubber, thus eliminating the need to import this material.

Production of plastics has been increasing rapidly. Output in 1971 was 2.6 times that of 1965, with the production of polyvinyl chloride more than tripling. Polyvinyl chloride, polyethylene, and polystyrene together made up 52% of the output in 1971.

c. Light industry

Light industry, including textiles, clothing and footwear, leather and fur processing, woodworking, and paper processing, represented almost 18% of gross industrial output in Poland in 1971. Output in this sector has grown far less rapidly than in the machinery and chemical industries.

Several branches of light industry were well developed before World War II, especially the textile industry, which was the focal point of Poland's industrialization in the late 19th century. Throughout the postwar period, however, light industry has been neglected in the distribution of investments, materials, and skilled management. During 1960-65, all branches of light industry together received only 8.3% of total industrial investment; this share was raised to 9.8% during 1966-71. Because of the low rate of investment, replacement of machinery and equipment

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