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X-A-Noe8- for December 1952.

TEE SITUATION IN RUMANIA.

Since the passage of the new Soviet=-type “onstituison and
the reorganization of the whole administration of the country, there
are three characteristics, which increasingly dominate the scene of
the country: an economic absorption, which now by gigantic steps
is leading towards full economic and customs union between Kussia .
and Rumania; an increasingly efficient drive of the Siguranza and ?
the MAI against any form of opposition; finally the military
parallel action to those in the economic field,

it has been stated more than once that Bulgaria is the
most progressive State in the sense as understood by the masters
of the Kremlin, ,his it true. Sut it is also true that Bulgaria has
can only be reached via Rumania and that consequcntly any progress
made in Tulgaria must be matched by similar moves in Rumania.

e most important move in the field of economic absorption,
has been the formation in recent times of additional mixed Soviet¬
Rumanian corporations, the so-called Sovrome These mixed corporations
are on a 50-50 basis. In fact nevertheless the “umanian part is
composed of effective wealth, such a s factories, machine tools,
land and natural resourcese On the other band, the Soviet part is
composed n ither of material wealth, nor of financial assistance.

The Soviets receive their part of the stock free. It is only stated
that it is given as couter-part for Soviet technical know-howe
eurthermore, the director general of Sovrom corporations is always
a “ussian and so is the majority of the bord members, despite the
fact that all the assets of the corporation are on Kumanian soil.

Up to this writing, three susmm Sovrom corporations have
been established. “he first of these is the corporation for the
construction or import of machinery for the drilling and refining
of petrole In Some ways, this corporation is the Subsidiary to the
gimilar corporation which extracts and refines petrol in “umania.

,0e main aim of this Gorporation is to organize more thoroughly the
onstruction of drilling equipment in “umania, notonly for local
n eds, but also for increased export to Russiae This is worth
hotinge We have reported previously the s, ectacular increase of the
output in drilling equipment in Russia, which permits rather staggerin
conclusions on the real importance of oil production in the Soviet
Unione If now the *oviet domestic production is obviously not enough
for Soviet requirem nts and Russia has to call on its satellites for
added drilling equipm nt, this permits to conclude that vast new
prospections are under way, which can easily increase tremendously
the already impressive Soviet petrol outpute

he second newly organized Sovrom corporation is a top
company for the reorganization of naval construction in “uman ia.
It is openly admitted by the Sovrom that the aim is to integrate full~

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