Industrial and commercial characteristics of Transcarpathia in the Khrushchev era (1953-1964)

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INDUSTRIAL AND COMMERCIAL CHARACTERISTICS OF TRANSCARPATHIA IN THE KHRUSHCHEV ERA (1953-1964)

Varadi N.F.

Ferenc Rakoczi II Transcarpathian Hungarian College of Higher Education

Abstract

Transcarpathia had been economically integrated into the Soviet system since 1946 and became part of the Ukrainian national economy. Plan-based management was implemented in all areas of agriculture and industry. The area was of strategic importance in terms of transport from east to west, it was considered a “western gate”. A significant part of the electricity, gas and oil exports to Europe flowed through the region. The Mir electricity transmission line, the Druzhba, the Soyuz, and the Urengoy - Pomary - Uzhgorod pipelines were also situated in the region. The Chop-Batevo area became an important transhipment area for the transport of goods, where significant freight traffic was handled on the railway with a wide and narrow gauge and a transhipment station. The article is mainly based on new data, documents form the Transcarpathian Regional State Archives and evaluates the industrial and commercial characteristics of Transcarpathia in the Khrushchev era (1953-1964). Due to its geopolitical situation, Transcarpathia received significant attention from Soviet leaders. It is possible to make such conclusions. During the Khrushchev era, the food and light industry started to develop. Different types of Transcarpathian wines, Uzhgorod cognac, canned vegetables and various bottled mineral water were in strong demand in the huge market of the Soviet Union. The milling industry also developed, mainly because the Soviet troops stationed in Central Europe were supplied from Transcarpathia. Lots of shops, cafes, bakeries, repair shops, restaurants etc. were opened. The unemployment decreased; the trade developed. Among the main goals of the Transcarpathian political leadership were establishing and deepening friendly relations and co-operation with neighbouring countries, developing tourism and infrastructure, reducing housing shortages, developing urban industries, which entailed the acceleration of urbanization processes.

Key words: food industry, light industry, trade, Transcarpathia of 1953-1964, plan-based economy. 

Анотація

transcarpathia economy strategic east

Характеристика промисловості й торгівлі Закарпаття у добу Хрущова (1953-1964). Вароді Н.Ф.

Із 1946 р. Закарпаття було економічно інтегроване до радянської системи і стало органічною складовою частиною народного господарства України. В усіх галузях сільського господарства та промисловості впроваджувалося планове управління. Район мав стратегічне значення з погляду транспортного сполучення між сходом і заходом, його вважали «західними воротами». Значна частина експорту електроенергії, газу й нафти до Європи проходила через цю місцевість. Також на території області були розташовані ЛЕП «Мир», нафтопроводи «Дружба», «Союз», «Уренгой - Помари - Ужгород». Важливим проміжним районом для перевезення вантажів став Чоп - Батево, де значні вантажні перевезення обслуговувала залізниця із широкою та вузькою коліями та перевантажувальною станцією. У статті, котра переважно базується на нових даних, документах Закарпатського обласного державного архіву, оцінюються промислово-торговельні характеристики Закарпаття протягом хрущовської доби (1953-1964). Завдяки своєму геополітичному становищу Закарпаття привертало значну увагу радянських керівників. Можна зробити такі висновки. За часів Хрущова почали розвиватися харчова та легка промисловість. На величезному ринку Радянського Союзу користувалися великим попитом різні види закарпатських вин, ужгородський коньяк, овочеві консерви та різноманітна бутильована мінеральна вода. Розвивалася і млинарна промисловість, передусім тому, що радянські війська, котрі перебували у Центральній Європі, постачалися з Закарпаття. Було відкрито багато магазинів, кафе, пекарень, ремонтних майстерень, ресторанів тощо. Знизився рівень безробіття; розвивалася торгівля. Серед основних цілей політичного керівництва Закарпаття були налагодження та поглиблення дружніх відносин і співпраці із сусідніми країнами, розвиток туризму й інфраструктури, зменшення дефіциту житла, розвиток міської промисловості, що сприяло прискоренню урбанізації.

Ключові слова: харчова промисловість, легка промисловість, торгівля, Закарпаття 1953-1964рр., планова економіка.

Problem statement

Due to its geopolitical situation, Transcarpathia received significant attention from Soviet leaders. The area was of strategic importance in terms of transport from east to west, it was considered a “western gate”. A significant part of the electricity, gas and oil exports to Europe flowed through the region. The Mir electricity transmission line, the Druzhba [20, с. 159-160], the Soyuz, and the Urengoy - Pomary - Uzhgorod pipelines [23, old. 95-96] were also situated in the region. The Chop-Batevo area became an important transhipment area for the transport of goods, where significant freight traffic was handled on the railway with a wide and narrow gauge and a transhipment station [22, old. 321-325].

Analysis of recent research and publications

The study is mainly based on new data, documents form the Transcarpathian Regional State Archives, but also on the study of Laszlo Brenzovics: “The Periods of the History of Transcarpathia and its Economic and Social Situation in the 20th Century” [23]; Roman Oficinszkij: “Peculiarities of the Soviet Period in the History of Transcarpathia” [27]; Shman'ko G. et al: “Regional Aspects of CrossBorder Economic Cooperation between the USSR and the CMEA Countries” [21]. All three studies give information about the specific situation of Transcarpathia within the Soviet Empire. The region being located on the edge of the Soviet Union had a great role in cross-border cooperation in different fields (political, cultural, sport), and also in trade. As the electricity, gas and oil exports to Europe flowed through Transcarpathia great emphasis was based on its industry.

In order we could understand the history of Transcarpathia in the given historical period, we should have an overview about the changes in the political life of the Countries of Central, Eastern and South-Eastern Europe after World War II. In this, to know the whole historical background, helps us among the others the study of Tamas Krausz: “Countries of Central, Eastern and South-Eastern Europe after World War II” [26].

The purpose of this article is to evaluate the industrial and commercial characteristics of Transcarpathia in the Khrushchev era (1953-1964).

Main text

Transcarpathia had been economically integrated into the Soviet system since 1946 and became part of the Ukrainian national economy. Planbased management was implemented in all areas of agriculture and industry. Great emphasis was placed on the wood processing, forestry, chemical, food and light industry sectors. In production, quantity prevailed over quality. One of the main goals of the political leadership in Transcarpathia was to eliminate unemployment. The region received financial support for the development of industrial sectors, so the development of urban industrial sectors increased during the Khrushchev period, which led to the acceleration of urbanization processes.

From 1957, two modern sectors, the electrical and chemical industries, were given a prominent role in the development of heavy industry [26, c. 374]. Great emphasis was placed on the development of the forestry and chemical plants in Velykyi Bereznyi, Perechyn, Svaliava and the Uzhhorod power plant. And although the supply of electricity to the kolkhozes began in the framework of modernization as early as 1953 [1, арк. 1-97], the construction of the network was still hampered.

The Silenergo (County Agricultural Energy Office) system in the region was reorganized in 1959. That is, its functions were transferred to the District Directorate of “Karpatenergo”, which was headquartered in Ivano-Frankivsk. This led to a fragmentation of money and financial resources for the construction of rural electrification facilities and led to shortcomings in the development and design of electrification. It deprived production offices of the possibility of electrification on a production basis in their own zones. Some of the electrical equipment in the villages and districts was in an accident-prone condition, and the kolkhozes and sovkhozes did not have opportunities for a normal use of electricity. Farms received almost no technical assistance in the operation and repair of electrical equipment, and no work was carried out on the complete refurbishment of low-voltage lines and stations. The electrification of agricultural production deteriorated. In 1962, the County Committee of the UCP had to raise the issue of renewing the Silenergo system in the region. Pursuant to Decree No. 654-p of the USSR Council of Ministers issued on 26 April 1962, the county agricultural energy office was reinstated and removed from the competence of “Karpatenergo”. Thereafter, the county agricultural energy office was under the direct authority of the Ministry of Energy and Electrification of the USSR [5, арк. 1-41].

In the Khrushchev years, there were nearly 300 light industry plants and factories in Transcarpathia. The largest: the sewing factories in Berehove, Mukachevo, Vynohradiv and Uzhhorod; the Khust hat factory; the shoe factories in Khust, Vynohradiv, Uzhhorod and Vylok; the weaving factories in Irshava, Mukachevo and Uzhhorod. Brick tile factories operated in Berehove, Chop, Khust, Mukachevo, and Vynohradiv. In addition, there were car repair shops, ceramic factories, tobacco fermentation plants, paper and leather factories, etc.

In the January or February issues of the Sovietskoye Zakarpatye, Zakarpatskaya Pravda, and its Hungarian version, the Karpati Igaz Szo, summary statistical data on the previous year's industrial production were published. For example, the main, most successfully manufactured products in Transcarpathia in 1955 were: steel wire, animal fat, mineral water, cigarettes, tiles, underwear, outerwear, steam iron, fruit wine, barrels, meat, sausage, lime, oil, cotton, salt, coal, grape wine, bricks, electricity [13, с. 2]. From 1960, these products were supplemented with canned food, timber, footwear, paper and cardboard, macaroni, tools, dairy products, and reinforced concrete structures [14, с. 2]. From 1962, bread, pastry and candy were also included in the list [15, с. 2]. From 1963, the production of furniture and confectionery products developed rapidly [16, с. 3; 24, old. 3], and from 1964 the production of plastic products [25, old. 2] as well. The percentage of these, which is usually 100% or often even higher, and is some cases even 177%, does not correspond to reality. Thus, for example, in 1957, many industrial companies did not produce the expected amounts. These were the wood processing plants in Mizhhirya, Perechyn; the wood factories in Chynadiyevo and Volovets. The shoe factory in Vynohradiv did not produce enough leather footwear, but there were also shortcomings in the production of meat and sugar as well. Despite all this, in 1957, according to statistical data, 107% of the state plan was achieved in Transcarpathia [15, с. 2].

In the spirit of extensive economic development, the Soviet Union made much more significant investments in Transcarpathia than what would have been justified by the size and natural resources of the region. The emergence of industrial companies changed the image of cities, multiplied the population and significantly changed the ethnic composition. Logging and wood processing continued to be the main industries. All state forests were merged into one trust, the “Zakarpatlis” wood processing plant. The volume of logging increased significantly. The extracted wood was used to produce timber, furniture board, veneer board and furniture [23, old. 96].

There were furniture factories in every major town and city where large-scale, not so high-quality goods were produced, which had a definite demand in the country of total shortages. There were furniture factories in Berehove, Khust, Irshava, Mukachevo, Vynohradiv, Veykyi Bereznyi, Svaliava, Tyachiv, Uzhhorod, etc.

The food industry underwent significant development. It had to provide food to the growing urban population, which is why meat processing and dairy processing plants, as well as bread factories were established in all major towns and cities. Transcarpathian wines, Uzhhorod cognac, canned vegetables and bottled mineral waters were in strong demand on the huge market of the Soviet Union. The milling industry also developed, as Soviet troops stationed in Central Europe were supplied from Transcarpathia [23, old. 97].

By the end of the 1950s, there were half a hundred shops, dozens of restaurants, canteens, cafes and two large markets in Uzhhorod [27, old. 271]. New products appeared on store shelves, queues for bread disappeared, sugar, coffee, matches, kerosene, tea, fish, sausages, cheese, eggs, meat, butter, canned food, fruit, vegetables, gas, and other products essential for everyday life became available. Lots of goods were available in the markets, however, their quality did not meet the customers' expectations. The imported goods came mainly from China, Czechoslovakia, Hungary, GDR, FRG [21, с. 190].

On October 15, 1960, the county executive committee passed a resolution entitled “To further improve trade in the county”, in accordance with the decision of the UCP Central Committee and the Council of Ministers issued on September 13, 1960 № 1563. Under the resolution, 333 shops, 30 pharmacies were built and more than a thousand people were employed. There were also shops on the ground floors of some blocks of flats. Self-service stores became common. Advertising companies were established in Uzhhorod and Mukachevo. Numerous dairy shops, bakeries, etc. were established. Between 1958 and 1960, 30 delegations from Russia, Estonia and other parts of Ukraine arrived in Transcarpathia to improve trade and share their experience. A number of competitions were organized for those involved in trade. The Kosyno village consumer company operating in the Berehove district won on several occasions, not only at the county level, but also at the republican level [2, арк. 1-75].

In the post-war years, machine and tractor stations (MTS) played a significant role in the development of the kolkhoz-based management system in the region. As soon as the first collective farms were formed, there was a need for their technical supply, the mechanization of farming and the cultivation of agricultural crops. As early as the end of 1947, nine MTS stations were established in the county, the operation of which was greatly assisted by the Soviet leadership, for example, they provided them with loans for machinery, fertilizers and building materials. Between 1953 and 1958, there were eleven machine-tractor stations and two livestock machine stations in the region [18, с. 103].

In Transcarpathia, most of the technical and human resources were concentrated in the MTS-s. In 1955, the number of employees reached 3,480. In order to strengthen the engineering and technical human resources of those working in the county's MTS-s, in early 1953, 24 engineers from Stalin County and 20 mechanics and technicians from Kharkiv arrived [6, арк. 7]. The total number of tractors in the MTS-s was 724 [10, арк. 11].

In 1953, the Batrad MTS in Berehove district and the Rakoshyno MTS in the Mukachevo district were the most successful [8, арк. 37]. In the Batrad MTS area, the yield of cereals was one of the highest in the region and reached 15.2 hundredweights per hectare, in the collective farms “Lenin's Way”, “Engels” and “Voroshylov” this number reached between 16 and 20 hundredweights [9, арк. 50-56].

In 1955, the greatest successes were achieved by the Volovets, Khust, Uzhhorod and Rakoshyno MTS- s. According to the results of the All-Soviet Socialist Labor Competition, in 1955 the Soviet Ministry of Agriculture awarded the work of the Volovets MTS with a cash prize of twenty thousand rubles for the second time [11, арк. 37].

However, a number of errors and shortcomings were observed in the work of the MTS-s. The most important task of the stations, which was set by the September 1953 plenary session of the CPSU Central Committee, was to achieve the planned yields of the main agricultural crops and to increase the productivity of animal husbandry, especially in the dairy industry. However, this did not materialize in any of the region's MTS zones [7, арк. 33].

At the plenary session of the Central Committee of the Soviet Communist Party in February 1958, a resolution on the further development of the kolkhoz system and the reorganization of the MTS-s was passed. The resolution emphasized the need to hand over the machinery of MTS-s to collective farms in order to make more efficient use of modern technology and to promote technical progress in agriculture, to work more efficiently, increase productivity and reduce costs. On March 17, 1958, the County Committee of the UCP received instructions from the Central Committee of the UCP to hand over the machines to the collective farms. It emphasized that: “[t]he machines must be handed over only on a voluntary basis; it is advisable to divide the brigades according to the number of complexes; if the kolkhozes purchase the machines, the decision to that effect must be adopted by the general meeting; the technical condition of the machines must be properly determined, defective machines must not be taken over; the number of kolkhozes that will not be able to buy out the machinery in the next five years must be determined; the amalgamation of such kolkhozes with the more economically stable kolkhozes must be organized, they must be strengthened with additional workforce and by relocating the kolkhozes into industrial associations <...>; the liquidation and reorganization of the collective farms is prohibited without a decision by the Central Committee; the report on the handover of the machinery shall be forwarded to the Central Committee” [12, арк. 10].

The total value of tractors and agricultural machinery listed in the MTS-s reached 44.1 million rubles. The value of the machines intended for sale to the kolkhozes was estimated at 33.5 million [12, арк. 11-14].

In 1957, the money income of the collective farms was 425 million rubles, or 2,600 rubles per hectare. Most kolkhozes were able to pay for the machines as long as they limited their investments in other sectors. Thus, for example, 30 kolkhozes were able to pay for the machines immediately, 80 paid for them by the end of December 1958, 90 in 1959, and 40 by 1960. 25 collective farms in mountain areas did not buy agricultural machinery.

At the beginning of the reorganization, 299 agricultural professionals worked in the MTS- s, including 116 engineers and technicians, 58 agronomists, 26 livestock technicians, 13 land management specialists, 13 veterinarians, and 34 accountants. According to the decision of the local authorities, in order to monitor the production, agronomic and animal husbandry services provided to the kolkhozes, and construction sites, the district executive committees set up 12-14 district supervision groups, whose members were experienced agricultural specialists. The control and management of the groups was the responsibility of the chairman of the district executive committee [12, арк. 17].

Thirteen technical repair stations (MRS) were operating for the repair of tractors and the transport of agricultural machinery, spare parts, fuel, motor oil and mineral fertilizers to farms. They were also responsible for carrying out individual collective farm work on the basis of applications and contracts, such as excavation, drilling, extermination of shrub vegetation, landscaping, and so on.

In the context of urbanization, Soviet leaders were working to create “agricultural cities” attacked backyard farms. Yet, as the collective farm members earned very little, their main livelihood was from their backyard farming. Several of them also sold the produce in the market. Stealing from the common was considered a forgivable sin [23, old. 97].

At the XXI Party Congress from 27 January to 5 February 1959 a seven-year plan was adopted (1959-1965). More secure livelihood, education and health care, leave and pensions were state-guaranteed benefits. Above all, however, the enormous housing construction, which was called “Khrushchevkas”, or “Khrushchobas”, (combining the word “trushchoba”, meaning slum, with the name of the Secretary-General) attracted a great deal of attention [26, old. 374-375].

Table 1 - Sectoral distribution of the working-age urban population of Transcarpathia in 1962 [3, арк. 1-3]

In the case of the rural population, the total number of employees working in public production was 216.5 thousand; of which 114.5 thousand were employed in state-owned enterprises, institutions and social organizations, and 102 thousand in collective farms [3, арк. 10]. Those who exceeded the prescribed quantities were awarded the Hero of the Soviet Socialist Labor award for their outstanding work [4, арк. 10].

Conclusions

During the Khrushchev era, the food and light industry started to develop. Different types of Transcarpathian wines, Uzhgorod cognac, canned vegetables and various bottled mineral water were in strong demand in the huge market of the Soviet Union. The milling industry also developed, mainly because the Soviet troops stationed in Central Europe were supplied from Transcarpathia. Lots of shops, cafes, bakeries, repair shops, restaurants etc. were opened. The unemployment decreased; the trade developed. Among the main goals of the Transcarpathian political leadership were establishing and deepening friendly relations and co-operation with neighbouring countries, developing tourism and infrastructure, reducing housing shortages, developing urban industries, which entailed the acceleration of urbanization processes.

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