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    "label": "Report, Central Intelligence Agency, Rumania, Situation Report 12",
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    "title": "Report, Central Intelligence Agency, Rumania, Situation Report 12",
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        {
            "day": 5,
            "logicalDate": "1949-10-05",
            "month": 10,
            "year": 1949
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    "seq": 17,
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    "ocrText": "CHAPTER II\nECONOMIC SITUATION\n1. Historical Background.\nWar I levels. This production gain was due\nThe Rumanian economy is geared primarily\nprimarily to increase in the area under cul-\nto agriculture and the petroleum industry.\ntivation, rather than to better working meth-\nOther producing segments of the economy-\nods.\niron and steel, coke, textiles, non-ferrous met-\nRumania's great increase in territory after\nals, chemicals and electric power-are of rela-\nWorld War I, doubled the capacity of an in-\ntively minor importance. Among all of Ru-\ndustrial system, which was still in its infancy.\nmania's products, only petroleum and grain\nIn addition to petroleum, other smaller in-\nhave any international significance.\ndustries were developed, primarily timber, tex-\nUntil the consolidation of modern Rumania\ntiles, chemicals, and metallurgy. At the same\nwas effected by the union of Wallachia and\ntime there was a gradual organization of labor\nMoldavia in the late 1850's, the Rumanian\ninto trade unions which, to a large extent,\neconomy was rudimentary. It was, in fact,\nworked under the supervision of foreign spe-\nconfined to agriculture.\ncialists. The lack of adequate transportation\nIn 1900, 40 percent of the land under culti-\nfacilities, however, plus the lack of capital\nvation was in estates of more than 100 hec-\nand the low purchasing power of the people\ntares (247 acres) and owned by some 5,000 in-\nhas been partially responsible for the failure\ndividuals. In order to eke out a living, the\nof industry to take greater advantage of the\npeasant had to work on the estates of the large\nextensive natural resources at its disposal.\nlandlords, and his situation eventually became\nIn total dollar volume, Rumania's foreign\nsimilar to that of the serf in Russia before\ntrade was of minor international importance;\n1861. This led to demands for land reform\nbut its exports of grain and petroleum were of\nand the abortive peasant revolt of 1907.\nsignificance in world markets. Imports of\nThe growing social unrest among the peas-\nmachinery and raw materials, though small,\nantry was paralleled by the embryonic de-\nwere essential to Rumania's industrial de-\nvelopment of industry. By 1913, the petrole-\nvelopment.\num industry, largely under the direction of\nWith the advent of World War II, the Ru-\nforeign companies, was producing 13.5 mil-\nmanian economy was almost completely sub-\nlion barrels of crude oil, while in other indus-\nverted to that of the Third Reich. The Her-\ntries over 1,000 factories were in operation in-\nmann Goering Werke took over control of all\ncluding the cement, paper, cloth, textiles, tan-\niron and steel production; I. G. Farben ab-\nning, brick, plaster, and timber trades. After\nsorbed the chemical factories; and the agri-\n1916, when Rumania entered the war, indus-\ncultural produce was mainly exported to Ger-\ntrial development was arrested, the oil indus-\nmany to feed its armies and supply necessary\ntry being almost completely destroyed in 1917.\nindustrial raw materials. The bulk of the pe-\nLand reform, motivated largely by military\ntroleum output was also exported to Germany.\ndefeats and the Russian revolution, was finally\nWhen the Communists took over after the\ncarried out in the early 1920's. While it gave\nwar, industry, agriculture, trade, and trans-\nthe peasant land, it did not provide him with\nportation were seriously disrupted. Up to\nimplements to cultivate it. The result was a\n1948, conditions improved only slightly under\ngreat reduction in agricultural production.\na government policy of half-planning, half-\nBy the end of the 1930's, however, wheat and\ntemporizing. The position of private capital\ncorn production was well above pre-World\nhas steadily deteriorated and one of the final\nNote: This Chapter is based on information available to CIA as of 1 January 1949.\nECRET\n13"
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