(UNTITLED)

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-01634R000100070016-7
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 5
• Document Creation Date: November 17, 2016
• Document Release Date: April 6, 2000
• Sequence Number: 16
• Publication Date: April 15, 1952
• Content Type: TELEGRAM

Re CIA-RDP78-016` 34'R0001 00070016-7
OuTuullfi X1991AYA
;DEPARTMENT OF STATE DIVISION OF COMMUNICATIONS AND RECORDS TELEGRAPH BRANCH
T r Ism a :' - SWURIT INTOWNI IQ
I'r7 t
(BAR
DCL A ssr PARIS A.1 t%.19
OLI
CIA EXCQ P
C M
. S A
203
Ref ere is mede to the Iba*s7'js te1egrasst Nos -
58 sed 5893. of arch 26 oen+aeraing the stated belief
of several CC H delegations that the dollar is one
~10 +? at '"etrategte" iteas, mid that failure- to--
1
sstesoa 3t is noted also tit the I?aiun and Unj
smethc
04 M
r as to -
~
s
v+s 3.
h
t
l
.
.
a
es
ega
Kingdom de
, -31
settling its trade de cit-vit the ovi.et yb oc~
~?..
ith C
arlf w
The folio di sfa eeion deals a9' th the gaxaatlons
raised by- the Ita ,ia.ra U1 Delegations, and should test
be regarded as a letO stet t of the US pe eitiO .
on the tieolk or financial mee s as a euppi.+e
to psis transit controls.
If the gaestio3ct dollars as a tretegie export
is to be diaorass,, it is neeeseari to coraaidpr the
balsues of p is between the Unite States aAd t
Soviet bias. Those data are sot forth below separateiy
for the European soviet bloc a Commmist China. For
purposes of b ear of pa is consideration, ,ettent1 y..
a or tip tom? State*
shoes. be given to the full figare+s
dinra a orts and to general i -o is
l
i
u
c
orts
n g lath of rmiich7 vo
e e
~. ; ;f ~ ' to ''k k t
Approved For Release 2000/08/27 : C1A-RDP78-01634R000100070016-7
State Dept. declassification & release instructions on file
 Approved For Rele 2000/08/27 : CIA-RDP78-016'34R00010001t1817
S WCU RITY I; ~ O TiON
W2--
PAM A-1522 "U3 I
Balance of Payments between the United Sj ,tes and the
CrSdjts Debit& DAILMI
xrettrans?ate
Merchandise trade............ 9,9451 63,569 53,624
Travel ................?..~..? 3/.
Govf.?rnment expenditures...... 3,500Y 5,100 - 1,600
Private remittances........ 12,500 -12,500
Interest on US Govt. credits. 4,500 ,( 4,500
Income on private investments 200 'Q0
Balance on current account... -63,424
calnual tr,ansaotions
Repayment of US Govt-.credits. / 1,200
Repayment of private short
term clairs........'......?. , 1,000
Net securities transactions.. 112
Net reduction in dollar
ba Bnces..o?.??r....???.r.a
Balance on capital account... 4,512
Balance on all known transactions -67,936
Sys US Derartment of Commerce
Commercial shipments totalled only 2,858,0o0. The dif-
fe ne of o or 67 mill on is ac unted fo by jkn
estimate of The value or merchan dise trans rer1reto
this area through gift parcel shipments.
Known to be substantially less than $400,000.
/.Less than $50 000. '
&/ Very rough estimate; no direct information available.
Does not include direct contributions to the UN.
Chiefly to Poland and Hungary.
SECS E:T - SECURITY 1i FOWIATION
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 Approved For Re a 2000/08/27 : CIA-RDP78-01634R000100070016-7
SECRET a SECUBITZ I]WO MATIOR
p3-
PAM A.15
It should be noted that roughly 70 per cent of total
US imports (27.4 million) from the US SP irk 1951 were furs.
Ubder the ban imposed b Section 21 of the Trade Agree-
ments Extension Act of 1951 on imports of will be eliminated
some 35 to 40 per cent of 1951 shipments w
in 1952. Regarding US Imports from Czechoslovakia which
In 195L amounted to $2204 million, such imports have been
drastically curtailed because of special circumstances
existing in our relations with that country. This situa-
tion might, however, be changed at any timed
The following tabulation aumarizes the balance of
i aymats with Com moist China.
TABLE II
Balance of Paywenta Betw*on the United States
9-40
19
sus s o dollars
United states exports
nil or unknown
United States imports
`46,4872/
Travel (unknown but insignificant)
Private ramittamoes
W 100
Income on investasnts in United States
(-) 900
Not transactions In securities
, 252
Net movement of short term cslalma and
liabilities
Balance on x12 known transactions '47,435
gggta s US Department of Commerce
Based on country of origin of goods, according to
Custom regulations.
SBCRET - SECURITY I FOR 3&TION
Approved For. Release 2000/08/27 : CIA-RDP78-01634R000100070016-7
 Approved For Re4pse 2000/08/27 CIA-RDP78-0164R000100070016-7
as :follows
Sk3CRJT - SEC' RX? I1 FO) iATION
Pifl !!~-) -4-
The tI8 Delegation is, of course completely familiar
with the Foreign Assets Control Regulations governing
United States trade with and payments to Communist Chine.
The large balance shown above is accounted for as follows.
Mien the t1 froze Chinese Communist assets In Decem-
ber 1950 there were sizeable quantities of Chinese Com " st
goods shish had already left China and which were then in
the hands of legitimate traders r~ayaeent having already
been made to Communist China. Accordingly, the US Treasury
Department followed a fairly liberal licensing policy until
March 1951 to prevent undue hardship to these traders. In
addition, Treasury freely licenscu throughout the year
the importation of four commodities. needed by the US Govern.
merit for the strategic stockpile (bog bristles, water fowl
feathers and down, silk waste, and tungsten). None of
these were rurchased directly from China, the dollar pay-
ments accrued to some third country. In fact, some of these
purchases were made In Western urone which suggests that
in as ace cases Ituropean Soviet bloc middlemen might have
received the recd ltant US dollar y?q ments rathf:r than
Communist China.
The statistics on Imports from Communist China are
which 4 stockpile
lie= were
22,274,000
l._._ xy'4une totes
3122MAM
of which stockpile
20,97359000
all other
21,034,000
Jn1y..Dea bes- ttott 1
of shicli stockpile
all other
1
3,a?9,000
The large imports of "all other" items in the first half
of the year reflects the liberal Treasury licensing policy
during the first three months of 1951. The $3 million
?'&l1 other" figure in the second half represents the residue
of licensee issued during the first quarter and hardship
cases.
SbCR12 .. SECU`1 ITY INFOMIi LION
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 Approved For Rase 2000/08/27: CIA-RDP78-04R000100070016-7
s l c
~~Q SI~CRFT - al CLRXTY Is31'AF"CATION
PARIS A-1 Cb ~s
The Treasury Department has taken blocking action
against a number of i tropean banks whose facilities were
being used to carry on dollar transactions for the benefit'
of Communist China. Treasury is prepared to tate similar
action in any other cases of this sort thich may arise.
The cooperation of Aroflean governments in developing
and dealing with such cases would of course be welcomed.
Thee is a -presuaotion that a good portion of the
total balances shorn above on all known transactions is
available to Soviet bloc countries for financing subver-
slve activities and illegal trade,, but there is no
conclusive evidenee regarding how much of the total might
be used thus. A portion of the total undoubtedly is used
to finance oommercial purchases in Latin America and
elsewhere. The USSR raspy have the gold to >urchase any
amount of US dollars it ..de In free currency markets,
but it should be remembered that practically every country
of the Free World, nartieularly the COCOI1 countries,, has
some form of export ca ntrois which. prevent or limit
Soviet bloc countries from purchasing strategic commodities
with OS dollare or any other currency. The effectiveness
of these controls could of course . be enhanced by
Physical controls over transit trsle and transshipments
in certain free oorts of continental rotae.
RflTsS $s)U(ellorsd3
April 15, 1952
Clearances s
RA aS r . Bach Commnercv W. tfr. Leon Norman
:1I t - :Hr. Carri TrPesurr - fr. Fields
SECRET - SRCURITY I17O1URTION
Approved For Release 2000/08/27 : CIA-RDP78-01634R000100070016-7