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Škoda Arms Exports in the 1930s

Published online by Cambridge University Press:  13 December 2021

Aleš Skřivan Jr. Open the ORCID record for Aleš Skřivan Jr. [Opens in a new window]  and
Tereza Burianová Open the ORCID record for Tereza Burianová [Opens in a new window]
Aleš Skřivan Jr.
Affiliation:
Prague University of Economics and Business, ales.skrivan@vse.cz
Tereza Burianová
Affiliation:
Prague University of Economics and Business, tereza.burianova@vse.cz
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Abstract

This article discusses the arms exports of Škoda Works (one of Czechoslovakia's largest arms producers and exporters) during the 1930s and evaluates the export situation within the context of total Czechoslovak arms exports. At the beginning of the 1930s, economic crisis negatively affected the production and export of arms. However, the political climate facilitated the brisk recovery of this sector and the resumption of foreign trade in war materials. Škoda Works was successful in foreign markets, particularly in the sale of artillery materials and military vehicles. In addition to economic factors, trade was also influenced by political interests. This is also shown by the examples of arms exports to Romania and Yugoslavia, which were part of the Little Entente.

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Articles
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Slavic Review , Volume 80 , Issue 3 , Fall 2021 , pp. 544 - 562
Copyright
Copyright © The Author(s), 2021. Published by Cambridge University Press on behalf of the Association for Slavic, East European, and Eurasian Studies

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Footnotes

This work was supported by the Internal Grant Agency of the Prague University of Economics and Business under Grant Significance of Arms Production and Armaments for the Economies of Selected Central European Countries in the 1930s (F5/51/2018).

References

1. Of course, similarly distorted statistical reports also emerged in other countries, and it was not possible—with regard to the objective obstacles—to closely monitor the global arms trade.

2. For example, the negotiation of Škoda Works exports to Turkey in the first half of the 1930s, when the real party interested in some of the traded products was most likely the USSR.

3. Francev, Vladimír, Československé zbraně ve světě: V míru i za války [Czechoslovak Arms in the World: In Peacetime and during the War] (Prague, 2015), 142Google Scholar.

4. Full extract from the Commercial Register—ŠKODA a.s., B 36 at the Regional Court in Pilsen.

5. The National Archive, London, HM Treasury 181/8, League of Nations Statistical Yearbook of the Trade in Arms and Ammunition, 1934, 173.

6. Bolivia, Ecuador, Paraguay.

7. Dollar translation: “$3,000,000 million and for 1930 at more than $5,310,000.”Converted according to the exchange rate from the Statistical Yearbooks of the League of Nations (1930–32).

8. Francev, Československé zbraně, 51. Second place was also indicated in 1930 by the German Deutschösterreichische Tages-Zeitung in the news of March 7, 1930. International trade in military material, according to the data provided by the author of the text in 1930, reached a turnover of 11,380,000 GBP, of which the United Kingdom had 31%, France 13%, the US 10%, and Czechoslovakia 9.6%. The UK was first in the export of arms and Czechoslovakia was second with 16.8%. The newspaper also adds a sarcastic comment at the end, addressed to the Czechoslovak Minister of Foreign Affairs, Edvard Beneš, that in the given situation “Beneš is playing the role of a zealous apostle of peace.” National Archives of the Czech Republic (NA CR), Ministry of Foreign Affairs (MFA)—VA I, box 2211, inv. no. 1128, 8. III. 1933, Deutschösterreichische Tages-Zeitung. Alice Teichová states that according to statistics of the League of Nations, Czechoslovakia was one of the seven largest suppliers of arms in the first half of 1930s. Teichová, Alice, The Czechoslovak Economy 1918–1980 (London, 2013), 20Google Scholar.

9. Vladimír Karlický and Václav Kaplan, Zbraně na obranu republiky 1938 [Weapons for the Defense of the Republic in 1938] (Náchod, 1982), 24.

10. This “primacy” is stated, for instance, by Karel Půlpán, Nástin českých a československých hospodářských dějin do roku 1990, I. díl [Outline of Czech and Czechoslovak Economic History until 1990, Part I.], (Prague, 1993), 162. On the other hand—given the specific character of the often secret transactions—it is necessary to realize that a comprehensive statistical picture of global arms exports in the interwar period does not (and cannot) exist, and this primacy cannot be proved clearly.

11. Further, see Otakar Franěk, Dějiny koncernu brněnské Zbrojovky. Díl 2, Zbraně pro celý svět [History of the Zbrojovka Brno Group. Part 2, Arms for the Whole World] (Brno, 1970), 5–12; and Půlpán, Nástin, 162–63.

12. Source: Statistická příručka republiky Československé IV [Statistical Handbook of the Republic of Czechoslovakia IV] (Prague, 1932), 221; Statistická ročenka republiky Československé [Statistical Yearbook of the Republic of Czechoslovakia] (Prague, 1934), 137; Statistická ročenka republiky Československé [Statistical Yearbook of the Republic of Czechoslovakia] (Prague, 1936), 133; Statistická ročenka republiky Československé [Statistical Yearbook of the Republic of Czechoslovakia] (Prague, 1938), 143; Zahraniční obchod bývalého Česko-Slovenska v roce 1938 [Foreign trade of the former Czecho-Slovakia in 1938] (Prague, 1939), 25; and Moravian Provincial Archive (MPA), Company Archive of Zbrojovka Brno (CAZB), box 220, no. 1/9. The given data must be considered only for orientation purposes. With regard to the specific character, they do not include all the arms transactions. The data from individual sources also clearly differ in some cases—for instance, the data stated by the State Statistical Office that is contained in the archival documents of the individual arms enterprises. Average exchange rate in the observed period CSK 1=$0.034. According to the exchange rate from the Statistical Yearbooks of the League of Nations (1930–38).

13. To explore the issue of Czechoslovak arms exports to the Little Entente in greater detail, see Milan Hauner, “Military Budgets and the Armaments Industry,” in Michael Charles Kaser, ed., The Economic History of Eastern Europe 1919–1975: Interwar Policy, the War, and Reconstruction, vol. 2 (Oxford, 1986), 58–67.

14. Czechoslovak State Arms Factory, since 1924 called Czechoslovak Arms Factory, Joint-Stock Company in Brno. In terms of other exporters, we can mention ČKD, Janečkova zbrojovka, Česká zbrojovka, and Sellier & Bellot. See also Miroslav Šáda, Československé ruční palné zbraně a kulomety [Czechoslovak Firearms and Machine Guns] (Prague, 2004), 22–23.

15. Václav Průcha, Hospodářské a sociální dějiny Československa v letech 1918–1992, 1. díl, období 1918–1945 [The Economic and Social History of Czechoslovakia in the Period 1918–1992, Part I, 1918–1945] (Brno, 2004), 215–16; Alice Teichová, An Economic Background to Munich: International Business and Czechoslovakia 1918–1938 (Cambridge, Eng., 2008), 103, 196.

16. Pavel Kosatík, Bankéř první republiky: život dr. Jaroslava Preisse [The Banker of the First Republic: The Life of Dr. Jaroslav Preiss] (Prague, 2010), 65, 72–73.

17. Vladimír Karlický, Svět okřídleného šípu: Koncern Škoda Plzeň 1918–1945 [The World of the Winged Arrow: Škoda Works Pilsen Group 1918–1945] (Pilsen, 1999), 484.

18. Karlický, Svět, 213.

19. For details see Karlický, Svět and Václav Jíša and Alois Vaněk, Škodovy závody 1918–1938 [Škoda Works 1918–1938] (Prague, 1962).

20. Karlický, Svět, 213.

21. A complete list of arms items would be quite large. For the small firearms scope of Škoda, see Šáda, Československé ruční palné zbraně.

22. Jonathan A. Grant, Between Depression and Disarmament: The International Armaments Business, 1919–1939 (Cambridge, Eng., 2018), 109, 165, 169.

23. Grant, Between Depression and Disarmament, ibid.

24. State Regional Archive in Pilsen (SRA in Pilsen, henceforth); Personal Collection of Vladimír Karlický (PP Karlický, henceforth), unprocessed (is ordered from the State Regional Archive in Pilsen, where the collection is stored; it means that the collection is not yet sorted and processed and it is not possible to use the inventory number or signature to identify the source in the collection); Karlický, Svět, 598–99. Average exchange rate in the observed period, CSK 1=$0.034. According to the exchange rate from the Statistical Yearbooks of the League of Nations (1930–38).

25. Karlický, Svět, 598–99.

26. SRA in Pilsen, PP Karlický, unprocessed; Karlický, Svět, 598–99.

27. Source: NA CR, C-RCC, box 7, Statistiky československo-rumunského zahraničního obchodu [Czechoslovak-Romanian foreign trade statistics]; NA CR, C-RCC, box 8, Statistiky československo-rumunského zahraničního obchodu [Czechoslovak-Romanian foreign trade statistics], own processing.

28. Francev, Československé zbraně, 53–54, 57–59, 61–62; Antonín Klimek, Zbrojní obchody Škodových závodů s Jugoslávií a jejich pozadí v letech 1925–1938 [The Arms Deals of Škoda Works with Yugoslavia and Their Background in the Period 1925–1938] (Prague, 1969), 15–18.

29. (SRA in Pilsen); Company Archive Škoda (CAŠ); General Directorate (GD), box 111, inv. no. 642, Rozdělení výrobního programu (Sharing of the production program, January 30, 1936), D/3160.

30. SRA in Pilsen, PP Karlický, unprocessed, Aktová noticka ze 7. prosince 1938 (Action Notice, December 7, 1938), D/22760—Germany; SRA in Pilsen, PP Karlický, unprocessed, Náměty k rozmluvě s panem ministrem zahran. věcí (Topics for discussion with the Minister of Foreign Affairs).

31. Drahomír Jančík, Německo a Malá dohoda: hospodářské pronikání Německa do Jugoslávie a Rumunska v první polovině 30. let [Germany and the Little Entente: Germany’s Economic Penetration into Yugoslavia and Romania in the First Half of the 1930s] (Prague, 1990), 26.

32. Ibid., 14.

33. Ibid., 24.

34. An example of such operations was the export of soya beans from Romania—the supply ordered by German chemical plants and offset by imports of German goods., that is, goods from I.G. Farben in the first half of 1930s, . SRA in Pilsen, GD—Fiala, sign. 0006/0042, T.I.P. Rayon X. Rumunsko, 31. prosince 1934 [T.I.P. Rayon X. Romania, December 31, 1934].

35. NA CR, MFA—VA I, box 18, inv. no. 945, Německá konkurence československému exportu ve střední Evropě a na Balkáně [The German competition for Czechoslovak exports in Central Europe and the Balkans].

36. Boris Barth, Konkurence i partnerství: Německé a československé hospodářství v letech 1918–1945 [Competition and Partnership: The German and Czechoslovak Economy in the Period 1918–1945] (Prague, 1999), 186–88.

37. Ibid., 188–94.

38. Francev, Československé zbraně, 21.

39. When using private compensation payments, 20% of the compensation value of the imports was deposited in the clearing account of the Romanian National Bank; the remaining 80% was deposited to the benefit of the compensation exporter at the National Bank of Czechoslovakia in an account opened for these purposes, and the funds were released after confirmation of delivery of the goods by the exporter to Romania.

40. NA CR, Czechoslovak-Romanian Chamber of Commerce (C-RCC), box 1, inv. no. 12, Úprava platebního styku a směrnice pro soukromé platební kompensace mezi ČSR a Rumunskem [Regulation of payments and guidelines for private compensation payments between the Czechoslovak Republic and Romania], 1.

41. NA CR, C-RCC, box 1, inv. no. 12, Vysvětlivky Národní banky Československé k nové úpravě platebního styku mezi Československem a Rumunskem [Explanatory notes of the National Bank of Czechoslovakia regarding the new regulation of payments between the Czechoslovak Republic and Romania], 1–2.

42. Václav Jíša, Škodovy závody 1859–1965 [Škoda Works 1859–1965] (Prague, 1969), 201.

43. Bruno Seletzki was the Škoda Works representative in Romania. During his tenure major corruption and also political scandal occurred, which damaged the reputation of Škoda Works in Romania. See, for instance, Radek Diestler, Příběh zapomenutého průmyslníka: Život a doba Karla Loevensteina, generálního ředitele Škodových závodů [The Story of a Forgotten Industrialist: The Life of Karel Loevenstein, General Director of Škoda Works] (Prague, 2010), 85–89.

44. SRA in Pilsen, PP Karlický, unprocessed, “Lieferungen nach Rumänien in Jahren 1930–1939 to March 15, 1939.”

45. For example, order from 1937. See SRA in Pilsen, CAŠ, GD, box 866, inv. no. 4438, Rumanien—Vertrag from February 28, 1937 zwischen den Škodawerken und dem rumänischen Ministerium für Luftwessen und Marine in Bukarest; the contract for supply of machinery for production of fuses and filling of ammunition from 1937. See SRA in Pilsen, CAŠ, GD, box 866, inv. no. 4438, Rumanien—Vertrag; orders from 1937 and 1938. See SRA in Pilsen, CAŠ, GD, box 866, inv. no. 4438, Rumanien—durch Firma Schneider & Cie, Paris.

46. Ivo Pejčoch, “Lehký tank vz. 35” [Light Tank vz. 35], Historie a vojenství [History and Military], no. 2 (2008): 57–59; SRA in Pilsen, PP Karlický, unprocessed, Výkaz zakázek vojenských vozidel za rok 1936—Rumunsko [Statement of procurement of military vehicles for 1936—Romania].

47. SRA in Pilsen, CAŠ, GD, box 866, inv. no. 4440, Stand der wichtigsten ausländischen Aufträge. Stichtag July 10, 1939.

48. Klimek, Zbrojní obchody, 3–4.

49. Klimek, Zbrojní obchody, 4–8.

50. SRA in Pilsen, CAŠ, GD, 6/34 Schneider, Schneider—Škoda convention of May 27, 1922—The Year 1933 (Prague, February 20, 1936); SRA in Pilsen, PP Karlický, unprocessed, Výkaz zakázek vojenských vozidel za rok 1933—Jugoslavie [Statement of procurement of military vehicles for 1933—Yugoslavia]; Výkaz zakázek vojenských vozidel za rok 1935—Jugoslavie [Statement of procurement of military vehicles for 1935—Yugoslavia]. Tens of thousands but less than hundreds of thousands of USD. According to the exchange rate from the Statistical Yearbooks of the League of Nations (1930-1935).

51. $29,400,000 according to the exchange rate from the Statistical Yearbooks of the League of Nations (1935). SRA in Pilsen, PP Karlický, unprocessed, Decree of the Ministry of National Defence, Ref. No. 3887-dův.-pres.odb.předn.1935; SRA in Pilsen, PP Karlický, unprocessed, Aktová noticka z 11. ledna 1938 [Action Notice of January 11, 1938], D 16/177—Yugoslavia—Mornarica. Signature of the contract at the MNO.

52. SRA in Pilsen, PP Karlický, unprocessed, unmarked, March 30, 1936.

53. SRA in Pilsen, CAŠ, GD, box 866, inv. no. 4438, Jugoslavien—Vertrag zwischen dem čechoslovakischen und jugoslavischen Kriegsministerium No. 2276, December 15, 1935.

54. Dollar translation: $4,564,034, according to the exchange rate from the Statistical Yearbooks of the League of Nations (1935).

55. Dollar translation: $14,160,340, according to the exchange rate from the Statistical Yearbooks of the League of Nations (1935). SRA in Pilsen, CAŠ, GD, box 866, inv. no. 4438, Jugoslavien—Vertrag zwischen dem čechoslovakischen und jugoslavischen Kriegsministerium No. 2276, December 15, 1935.

56. See SRA in Pilsen, CAŠ, GD, box 880, inv. no. 4470, Smlouva mezi Ministerstvem Vojska a Námořnictva, děl. tech. odděl., království Jugoslavije v Bělehradě a Ministerstvem národní obrany Československé republiky v Praze z 15. prosince 1935 [Contract between the Ministry of the Armed Forces and Navy, technical artillery department of the Kingdom of Yugoslavia in Belgrade and the Ministry of National Defence of the Republic of Czechoslovakia in Prague, December 15, 1935].

57. Dollar translation: $2,307,380, according to the exchange rate from the Statistical Yearbooks of the League of Nations (1936). SRA in Pilsen, CAŠ, GD, box 866, inv. no. 4438, Jugoslavien—Vertrag zwischen dem čechoslovakischen und jugoslavischen Kriegsministerium No. 373, March 20, 1936.

58. Dollar translation: $2,213,953, according to the exchange rate from the Statistical Yearbooks of the League of Nations (1936). SRA in Pilsen, CAŠ, GD, box 866, inv. no. 4438, Jugoslavien—Vertrag zwischen dem čechoslovakischen und jugoslavischen Kriegsministerium No. 6849, July 30, 1936.

59. Dollar translation: $2,868,158, according to the exchange rate from the Statistical Yearbooks of the League of Nations (1936). The price includes eight tanks, supplied under Contract No. 6849.

60. Tens of thousands USD. SRA in Pilsen, PP Karlický, unprocessed, Výkaz zakázek vojenských vozidel za rok 1937—Jugoslavie [Statement of procurement of military vehicles for 1937—Yugoslavia]; Výkaz zakázek vojenských vozidel za rok 1938—Jugoslavie [Statement of procurement of military vehicles for 1938—Yugoslavia].

61. For example, orders from 1936 and 1938. See SRA in Pilsen, CAŠ, GD, box 866, inv. no. 4438, Jugoslavien—Vertrag zwischen dem čechoslovakischen Kriegsministerium und dem Stabe der jugoslavischen Marine No. 9241, June 19, 1936; SRA in Pilsen, CAŠ, GD, box 866, inv. no. 4438, Jugoslavien—Vertrag zwischen dem čechoslovakischen Kriegsministerium und dem Stabe der jugosl. Marine No. 7000, March 20, 1938.

62. Klimek, Zbrojní obchody, 24–35.

63. The French concern Schneider sold its share in Škoda Works at the turn of 1938–39. See Duroselle, Jean-Baptiste, France and the Nazi Threat: The Collapse of French Diplomacy 1932–1939 (New York, 2004), 308Google Scholar; Klimek, Zbrojní obchody, 24–35.

64. SRA in Pilsen, CAŠ, GD, box 880, inv. no. 4470, Dopis Ing. Josefa Voráčka generálnímu řediteli Škodových závodů Ing. Adolfu Vamberskému z 20. února 1939 [Letter from Ing. Josef Voráček, General Director of Škoda Works to Ing. Adolf Vamberský, February 20, 1939].

65. Further, see Hauner, “Military budgets,” 53.

66. For details on the issue of military expenditures and their impact on the Czechoslovak economy, see Pavel, Jan, Velikost a struktura výdajů na národní obranu v Československu v letech 1918–1938 [The size and structure of expenditures on national defense in Czechoslovakia in the period 1918–1938] (Prague, 2004)Google Scholar.