Table Of ContentINDUSTRIAL 
COOPERATION 
BETWEEN 
EAST AND WEST
INDUSTRIAL 
COOPERATION 
BETWEEN 
EAST AND WEST 
FRIEDRICH LEVCIK AND JAN STANKOVSKY
© M. E. Sharpe Inc. 1979 
901 North Broadway 
White Plains, New York 10603 
German text: Industrielle Kooperation zwischen Ost und West 
©Springer-Verlag, 'Nien, 1977 
Softcover reprint of the hardcover 1st edition 1977  978-0-333-26959-6 
Translated by Michel Vale 
Published simultaneously as Vol. XIV, No. 1-2, of 
Soviet and Eastern European Foreign Trade 
All rights reserved. No part of this publication may be 
reproduced or transmitted, in any form or by any 
means, without permission 
First published in the United States ofA merica 1979 
First published in the United Kingdom 1979 
Published by 
THE MACMILLAN PRESS LTD 
London and Basingstoke 
Associated companies in Delhi 
Dublin Hong Kong Johannesburg Lagos 
Melbourne New York Singapore Tokyo 
British Library Cataloguing in Publication Data 
Levcik, Friedrich 
Industrial cooperation between East and West 
1. Industry-International cooperation 
I. Title  II. Stankovsky, Jan 
338'.09171'3  HC59 
ISBN 978-1-349-04777-2 ISBN 978-1-349-04775-8 (eBook)
DOI 10.1007/978-1-349-04775-8
This book is sold subject to the 
standard conditions of the Net Book Agreement
Contents 
List of Tables  vii 
Introduction  xi 
1.  General aims and definitions  3 
2.  New trends in the world economy as 
a basis for East-West cooperation  9 
3.  Types of industrial cooperation between 
East and West  19 
4.  Motives for cooperation  41 
5.  Legal and institutional regulations for interfirm 
cooperation between East and West in Eastern Europe  55 
6.  The special case of joint ventures: 
their possibilities and limits  69 
7.  Economic policy and industrial East-West 
cooperation  96 
8.  Objectives and significance of intergovernmental 
cooperation agreements  137 
9.  Industrial East-West cooperation and 
the business cycle  158 
10.  Interim evaluation of East-West 
industrial cooperation  166 
11.  Practical experience with East-West 
industrial cooperation  208
12.  Evaluation and outlook  225 
Appendix 1:  Eleven case studies  231 
Appendix 2:  List of industrial cooperation 
agreements between East and West  243 
Appendix 3:  Agreement between the Council 
of Mutual Economic Assistance and European 
Economic Community on Principal Mutual Relations  265 
Appendix 4:  Excerpt from the Final Act of the 
Conference on Security and Cooperation in Europe, 
August 1, 1975  269 
Bibliography  2 73 
About the Authors  287
List of Tables 
Table  Page 
1  Product Specialization in Western and Eastern Europe 
in Terms of Foreign Trade Shares as Reflected in 
Trade Proportion  13 
2  Specialized Products in Intra-CMEA Trade  14 
3  Cooperation Matrix  20 
4  Structure of East-West Cooperation by Type of Cooper-
ation, 1968, 1972, 1973, 1974, 1975  25 
5  Structure of East-West Cooperation by Type of Cooper-
ation, Total (1975) by Eastern Country  27 
6  Structure of East-West Cooperation by Type of Cooper-
ation, Total (1975) by Type of Cooperation  28 
7  Cooperation of U.S. Firms with the CMEA Collectively 
and with Individual CMEA Countries, 1975, by Type of 
Cooperation  29 
8  Cooperation of U.S. Firms with the CMEA Collectively 
and with Individual CMEA Countries, 1975, by CMEA 
Country  30 
9  Licensing Agreements of U.S. Firms with Individual 
CMEA Countries and the CMEA Collectively, 1975  31 
10  Enterprise's Evaluation of Own Product Quality, 1974, 
in% of All Products  49 
11  Poland's Licensing Agreements with Western Nations, 
1966-70  51 
12  Time Required for Start-up and Period of Validity of 
Licenses from Western Countries in Poland, 1966-70  51 
13  Tax Rates on Profits of Foreign Joint Venture Partners 
in Yugoslavia  83 
vii
14  Western Participations in East-West Joint Ventures in 
the East  87 
15  Foreign Capital Involvement of the FRG, Total and with 
Eastern Countries  89 
16  Structure of CMEA Foreign Trade by Groups of 
Countries  98 
17  Foreign Trade of CMEA Countries by Groups of Coun-
tries, Actual Development 1966-70 and Plan Figures 
1971-75  99 
18  Patterns of CMEA Foreign Trade by Groups of 
Countries  99 
19  U.S. Exports of Industrial and Agricultural Goods to the 
USSR and other Eastern Countries  119 
20  Agreements on Industrial Cooperation between Eastern 
Countries and Developing Countries by Industrial 
Branch, 1970-74  123 
21  Tripartite Cooperation between East, West, and Devel-
oping Countries, 1975  126 
22  Long-term Bilateral Trade Agreements between Eastern 
Countries and Western European Industrial Countries  138 
23  Long-term Bilateral Cooperation Agreements between 
Eastern Countries and Western European Industrial 
Countries  140 
24  Long-term East-West Trade Agreements in Force at the 
End of July 1977  142 
25  Economic, Industrial, and Technical Cooperation Agree-
ments in Force at the End of July 1977  145 
26  Intergovernmental Cooperation Agreements between 
Austria and the Eastern Nations  149 
27  USSR Foreign Trade with Western European Countries  155 
28  Relationship between the Business Cycle and East-West 
Industrial Cooperation in the FRG  161 
29  Agreements on East-West Industrial Cooperation, 
1965-67  168 
viii
30  Eastern European Imports of Complete Industrial Plants 
and Licenses from the West, Country of Destination and 
Country of Origin, 1967  169 
31  Cooperation Agreements between the West (without the 
USA) and Eastern Countries, 1975  170 
32  Cooperation Statistics of Eastern Countries, 1965-75  171 
33  Cooperation Statistics of Western Industrial Countries  172 
34  Frequency of Cooperation Agreements of U.S. Firms 
with Eastern Countries, 1975  174 
35  Hungary's Agreements on East-West Industrial Cooper-
ation, by Partner Country  175 
36  Industrial Cooperation in Poland's Exports to the West  176 
37  Eastern European Imports of Complete Industrial Plants 
and Licenses from the West, by Industrial Branch, 1967  179 
38  Structure of East-West Cooperation, 1972 and 1975, by 
Eastern Country and Branch of Industry  181 
39  Structure of East-West Cooperation, 1975, by Industrial 
Branch and Eastern Country  182 
40  Structure of East-West Cooperation, 1975, by Type of 
Cooperation and Branch of Industry  183 
41  Structure of East-West Cooperation, 1972 and 1975, by 
Industrial Branch and Type of Cooperation  184 
42  Structure of Interfirm Cooperation Undertakings (with-
out Joint Ventures) between the West (without USA) and 
the East, by Industrial Branch, 1975  186 
43  Structure of Interfirm Cooperation Undertakings (with-
out Joint Ventures) between the West (without USA) and 
the East, by Purpose, 1975  187 
44  FRG Agreements with Eastern Countries on Industrial 
Cooperation, by Industrial Branch  188 
45  Cooperation Agreements of U.S. Firms with Eastern 
Countries, by Industrial Branches, 1975  189 
46  Hungarian Cooperation Agreements with Western 
Firms, by Industrial Branch  191 
ix
47  Cooperation and Foreign Trade Indicators of Eastern 
Countries  193 
48  Hungarian Agreements on Industrial Cooperation, Total 
and with Austria, End of 1974  197 
49  Evaluation of Cooperation Negotiations with Eastern 
Countries by FRG Firms  211 
50  Multinational and State-owned Western Enterprises In-
volved in Interfirm East-West Cooperation  214 
51  FRG Industrial Cooperation Agreements with Eastern 
Countries, by Firm Size and Type of Cooperation  2H 
X