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 APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110009-4

fighter aircraft, missiles, and a variety of electronic equipment are imported.

Czechoslovakia has the most important army materiel production industry among the Eastern European Communist countries, based on significant native design capability and a highly industrialized economy. It manufactures the largest quantity and variety of military equipment among the Warsaw Pact countries, except for the Soviet Union. Although much of its plant capacity was converted to civilian production after its peak military output was reached in 1957, the variety of army materiel produced has not been substantially altered. Production of ground forces materiel includes pistols, assault rifles, recoilless guns, antiaircraft artillery, multiple-rocket launchers, medium tanks, and tracked and wheeled armored personnel carriers. Ammunition of all types and enough explosives and propellants are produced to meet indigenous requirements and to provide modest quantities for export.

A range of other types of material is produced, including signal, quartermaster, engineering, fire-control, optical, and photographic equipment. Assault guns, mortars, and a variety of medium artillery are no longer in production, but replacement parts and ammunition continue to be made for this obsolescent equipment. Chemical warfare materiel production includes small quantities of toxic agents, tear gas, smoke munitions, flamethrowers, protective masks and canisters, protective clothing, and decontamination and detection equipment. An excellent capability exists for large-scale production of biological warfare (BW) agents, but the current output consists of only small amounts for research and testing. Production of BW defense-related antibiotics and pharmaceuticals is more than adequate for domestic consumption and easily could support a BW defensive program.

Second only to the Soviet Union as a Communist exporter of military materiel, Czechoslovakia was the first Communist country to supply arms to some of the Arab countries under agreements concluded in 1956. A major export item in recent years has been the OT-62 TOPAZ tracked armored personnel carrier. From 1955 through 1972, Czechoslovakia provided $1,790 million in military assistance to other Communist countries and $920 million to non-Communist countries.

Czechoslovakia has no naval force in the ordinary sense but maintains a small Danube Defense Guard. Adequate facilities exist for the construction and repair of the river-patrol craft used by this command.

The aircraft industry is the leading one among the Eastern European Communist nations. There are three significant airframe plants, two large aircraft engine plants, and a large and well-equipped aircraft research and development complex. Military jet trainers are produced in quantity, as well as several types of light civil aircraft. The industry can and has produced jet fighters in quantity and has the capability to develop and produce virtually all types of light aircraft. Most of the aircraft not produced domestically are obtained from the U.S.S.R.

Czechoslovakia has established, with Soviet assistance, a production capability for small missiles (air-to-air and antitank). The Czechoslovaks have produced under license from the Soviets a version of the AA-2 (ATOLL) air-to-air missile and are now producing the AT-3 (SAGGER) wire-guided antitank missile. With the exception of the current production programs, Czechoslovakia has been dependent on the Soviet Union to supply other missiles. Plans exist for Czechoslovakia to produce a follow-on antitank system, and there is a possibility that Czechoslovakia will move on into the production of larger, more sophisticated systems, e.g., surface-to-air and short-range, surface-to-surface ballistic missiles in the future.

b. Military budget

The military budget is prepared by the Minister of National Defense on the basis of recommendations of the General Staff and other defense ministry elements. It is coordinated with the federal Ministry of Finance and included in the overall national budget for approval by the Council of Ministers and the parliament. As in other Communist countries, the announced military budget figures are not believed to include all actual military expenditures. Some expenditures, particularly those for military research and development, are no doubt concealed among other budget categories. Research and development funds, however, are believed to account for a relatively small proportion of total military expenditures. The announced budgets for 1968-72 are shown in Figure 3. The budget for 1973 has not been announced but it is described as having grown more slowly than the national income.

7. Logistics (S)

The general classification of material is similar to that of the Soviet Armed Forces. Items of material in common use among various branches of service, such as individual clothing and equipment, POL, and transport vehicles, are considered general supplies. Items unique to a specific arm of service are each

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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200110009-4