67 
With the introduction of the NEP (New Economic Policy) in 1921, 
all steamship companies started to operate on a self-supporting basis, 
and were no longer financed by the state. In order to attract private 
capital, the joint stock shipping companies Dobroflot and Sovtorgflot 
were organized. In addition, foreign capital was attracted through 
a number of mixed companies. For example, in May 1921 the Russian- 
German Co., Derutra, and in 1923 the Norwegian-Russian Steamship 
Co. were organized. The mixed companies, besides bringing in needed 
foreign capital, were viewed as a device for avoiding the blockade 
of Soviet foreign trade cargo and for gaining experience in operating 
steamship lines. There was a strict “division of labor” between joint 
stock and mixed companies; the former were allowed to carry cargo 
between Soviet ports in coastal navigation and the latter were used 
for the transportation of foreign trade cargo exclusively.®’ With the 
growth of the Soviet merchant marine and improved relations with 
many foreign states, both types of companies were liquidated.” 
In 1925 the restoration of the majority of ships was completed. 
The Soviet yards started to build new ships and, in addition, ship 
procurement abroad was initiated. In the same year a need to add 
698,000 ships from domestic yards and foreign purchases was ap- 
proved and set into motion by the Council of Labor and Defense. 
In 1928, prior to the first 5 Year Plan, about 80 percent of Soviet 
merchant marine ships were more than 20 years old. According to 
the first 5 Year Plan (1928—29/1932-33), 10 billion rubles of capital 
investment were planned for Soviet transport, 3.6 times more than 
the 2.7 billion rubles for the previous 5 years. It was further planned 
to complete the restoration of Soviet Merchant Marine and to increase 
cargo sea transportation more than four times, port cargo turnover 
two times, and total tonnage of ships more than two times.® 
During December of 1930 and the first few months of 1931, the 
Soviet transportation system, which was lagging considerably behind 
the increasing demand, became the object of the special consideration 
of the party and the government. A number of decisions were made 
to improve the situation. For example, on January 30, 1931 the deci- 
sion to organize the People’s Commissariat for Water Transport was 
made.™ On April 14, 1931, another decision “‘on sea transport” de- 
manded an improvement in the efficiency of the branch and approved 
the organization of six merchant marine directorates: The Azov, Baltic, 
Caspian, Northern, Pacific, and Black Sea. 
Although the first 5 Year Plan was not fulfilled, the merchant 
marine received 136 new ships with a total cargo capacity of close 
to 500,000 tons (more than half were Soviet built). In 1932 the 
total cargo turnover of the Soviet merchant marine reached the 
prerevolution level.® 
°° TsNUMF, Transactions, vol. 133, 1970, p. 37. 
*!*“Morskoy Flot’”’ No. 11, 1967, pp. 2-3. 
** March 1930 Decision of the Soviet Government, See “‘Morskoy Flot”, No. 1, 1967. 
®““Morskoy Flot”, No. 2, 1968, p. 3. 
** Up to that time the Soviet Merchant Marine was subordinated to the Commissariat of Railroads. 
The new Commissariat of Water Transport included the merchant marine and the river fleet. 
*°““Morskoy Flot”, No. 1, 1967, pp. 5-7. 
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