A Report from Iwankow Boleslaw, Attache of the PRL Embassy, on the Five-Year Plan in North Korea

Pyongyang, 18 June 1958

N O T E

conc[erning] the most important data of the 5-year plan of the DPRK

k 2421/27/58 [trans. note:  added by hand]

The 5-year plan was the subject of a session at the party conference that took place in Pyongyang in March of this year.  At the 3^rd Session of the Supreme People’s Assembly on 9.VI-11.VI.1958, a resolution about the 5-year plan (1957-1961) for the development of the national economy of the DPRK was adopted.  Compared to the extended draft 5-year plan at the party conference, the adopted resolution contains no substantive changes.

Generally, the 5-year plan sets the goal of the further strengthening of the economic foundations of socialism in the DPRK:  the resolution of the problem of securing food, clothing and housing for the population.  During the 5-year plan, the complete elimination of the colonial backwardness in the sphere of industry and technology, an end to collectivization and the achievement of a full socialist transformation in industry and trade.

In the sphere of the development of industry, the need for the primacy of heavy industry with the simultaneous development of agriculture and light industry was specified, taking into account the international division of labor among the socialist countries.

It is foreseen that in the course of he 5-year plan, the global industrial production compared to 1956 will grow 2.6 times.  In this, the production of the means of production 2.9 times, the production of consumer goods 2.2 times.

In the sphere of heavy industry, it was decided to develop the metallurgical, machine, chemical and construction material industries, while at the same time broadening the energy base and developing the extraction industry.

In the most important branches of industry, in accordance with the assumptions of the 5-year plan, in 1961 production should reach the following level:

1. coal thou[sand] tons  10,000

2. pig iron thou[sand] tons 700,000

3. steel thou[sand] tons       670

4. metal sheeting thou[sand] tons       500

5. fertilizer thou[sand] tons       630

6. electric energy m[illion] kW    9,700

7. electrolytic copper thou[sand] tons           8

8. electrolytic zinc thou[sand] tons         62

9. black lead thou[sand] tons            43

10. freight cars pieces     850

11. caustic soda thou[sand] tons       32

12. cement thou[sand] tons  2,000

13. synthetic fibers thou[sand] tons 22,000

14. fishing thou[sand] tons     650

15. plant oils thou[sand] tons       35

16. salt thou[sand] tons     450

In the sphere of agriculture the goal of reaching 3,760 thousand tons of grains was removed.

During the 5-year plan, it is foreseen that irrigation equipment will be built with state resources to irrigate 75 thousand ha. of fields, with cooperative resources equipment irrigating 118 thousand ha.  The problem was brought up of increasing the yield from 1 ha. of fields, e.g., out of 1 ha.: rice – 4 t.

corn – 2.5 t.

wheat^*[1] – 1.5 t.

In 1961, the harvest of some crops may reach the following levels:

cotton -- 65,000 t.

linen -- 33,000 t.

hemp --   4,000 t.

wool --   8,000 t.

tobacco -- 20,000 t.

meat -- 20,000 t.

In the area of rail transport, it is being assumed that in 1961 the transport of freight will grow 1.7 times in relation to 1956, motor transport 1.9 times, water transport 3.6 times.  The construction of 350 km. of railroads, as well as the electrification of some segments of railroads, is expected.

The overall sum of investment in major construction will amount to 146.5 m[illio]n won during the 5-year plan.  Furthermore, it is expected that production cooperatives will expend financial resources on construction in the countryside.  Investment is foreseen, first of all, in industrial construction, especially facilities for heavy industry.  A broadening of housing construction in the cities and the countryside is also to take place.  Several buildings, which are currently still under construction, will be put into use.  Beginning the initial work on buildings planned for the second 5-year plan was brought up as a goal.

During the 5-year plan the construction of 10 m[illio]n sq. meters of housing area and 200 thou[sand] small houses in the countryside is expected.  The share of the block system in the cities will grow to 75%.  In industrial construction it will comprise 38%.

100 thou[sand] specialists will be educated.  This includes 60 thou[sand] engineering-technical personnel.  The number of workers and employees is to grow by 300 thou[sand] persons in 1961.

In the sphere of trade, an improvement in furnishing the population with consumer goods is expected.  The turnover of goods in the state and cooperative trade network is to grow 2.2 times.  The complete elimination of private trade is expected.

In 1961 work productivity in industry is expected to grow by 65%, and in construction by 52%.  The cost of production in industry will be lowered by 29%.

5 copies madeIwankow Boles?aw

4 cop[ies Dep[artment] V [signature]

1 cop[y] a/a Attache of the Embassy of the P[olska] R[zeczpospolita] L[udowa— People’s Republic of Poland] in the DPRK

^* Note:  In the DPRK, wheat is cultivated according to the in-line system.  Other plants are cultivated between its rows.