RESEARCH AID 1950 RUBLE-DOLLAR PRICE RATIOS FOR GOODS AND SERVICES IN THE USSR AND THE US

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79S01046A000500040001-2
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
132
Document Creation Date: 
November 9, 2016
Document Release Date: 
January 20, 1999
Sequence Number: 
1
Case Number: 
Publication Date: 
August 14, 1957
Content Type: 
REPORT
File: 
AttachmentSize
PDF icon CIA-RDP79S01046A000500040001-2.pdf5.07 MB
Body: 
Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 N? 82 RESEARCH AID 1950 RUBLE-DOLLAR PRICE RATIOS FOR GOODS AND SERVICES IN THE USSR AND THE. US, CIA/RR RA-15 14 August 1957 CENTRAL INTELLIGENCE AGENCY OFFICE OF RESEARCH AND REPORTS Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001~~2 ,,-,X` 7SS- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 WARNING This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08': CIA-RDP79SO1046A000500040001-2 1950 RUBLE-DOLLAR PRICE RATIOS FOR GOODS AND SERVICES IN TIIE USSR AND THE US CIA/RR RA-15 (ORR Project 10.824) CENTRAL INTELLIGENCE AGENCY Office of Research and Reports S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 25X1A5a1 FOREWORD S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 CONTENTS II. Ruble-Dollar Ratios for Producer and Consumer Goods . . . . . . . . . . . . . . . . . . . . . . . 3 Summary and Conclusions . . . . . . . . . . . . . . . . . . . . . 1 1. General Characteristics of Ratios . . . . . . . . . . . . 3 2. Effective Dates of US and Soviet Prices . . . . . . . . . 6 III. Ruble-Dollar Ratios for End-Use Components of Gross National Product . . . . . . . . . . . . . . . . . . . . Page 1. Nature and Significance of End-Use Ratios . . . . . . . . 7 2. Derivation of End-Use Ratios . . . . . . . . . . . . . . 12 a. Consumption . . . . . . . . . . . . . . . . . 12 b. Investment . . . . . . . . . . . . . . . . . . . . 15 (1) Producer Durables . . . . . . . . . . . . . . . 16 (2) Construction . . . . . . . . . . . . . . . . . . 16 (3) Additions to Inventory . . . . . . . . . . . . . 19 c. Administration . . . . . . . . . . . . . . . . . . 19 d. Defense . . . . . . . . . . . . . . . . . . . . . 20 3. Comparisons of US and Soviet Gross National Product . . . 21 Appendixes Appendix A. Methodology . . . . . . . . . . . . . . . . . . . 23 Appendix B. Ruble-Dollar Ratios, by Branch of Industry . . . . 33 Appendix C. Gaps in Intelligence . . . . . . . . . . . . . . 113 Appendix D. Source References . . . . . . . . . . . . . . 115 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Tables . Distribution of 1950 Ruble-Dollar Ratios, by Branch of Industry . . . . . . . . . . . . . . . . . . Page 2. 1950 Ruble-Dollar Ratios for Gross National Product and End-Use Components . . . . . . . . . . . . . . . . . . . 7 3. Adjustment of 1950 Ruble - 1950 Dollar Ratios for End-Use Components of Gross National Product to 1953 Ruble - 1955 Dollar Ratios . . . . . . . . . . . . . . 9 4. 1950 Ruble-Dollar Ratios for Consumer Goods and Services . . . . . . . . . . . . . . . . . . . . . . . . . . 15 5. 1950 Ruble-Dollar Ratios for Producer Durables, Construction, and Inventories . . . . . . . . . . . . . . . 15 6. 1950 Ruble-Dollar Ratios for Selected Categories of Producer Durables . . . . . . . . . . . . . . . . . . . 17 7. 1950 Ruble-Dollar Ratios for Various Types and Components of Construction . . . . . . . . . . . . . . . . 18 8. US and Soviet 1950 Gross National Product in 1950 Rubles and 1950 Dollars . . . . . . . . . . . . . . . . . . 22 9. Ruble-Dollar Ratios for Gross National Product End-Use Categories and US and Soviet Gross National Products for 1950 and 1955 . . . . . . . . . . . . . . . 10. Soviet Gross National Product for 1950, 1953, and 1955, in 1950 and 1953 Ruble Prices, by End-Use Category . . . . . . 26 11. Adjustments of US Gross National Product for Comparability with Soviet Gross National Product, 1950 and 1955 . . . . . . . . . . . . . . . . . . . . . . . 27 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 25X1A5a1 Page 12. Key Research in the Ruble-Dollar Ratio of Selected Commodities and Services, by SIC Number . . . . . . 34 13. A Summary of 1950 Ruble-Dollar Ratios, by Industrial Classification . . ... . . . . . . . . . . . . . . . . . . . 40 14. Specifications, Prices, and Price Ratios of Solid Fuels in the USSR and the US . . . . . . . . . . . . . . . . . 46 15. Weighted Price Ratios of Solid Fuels in the USSR and the US . . . . . . . . . . . . . . . . . . . . . . . . . . 46 16. Specifications, Prices, and Price Ratios of Chemicals in the USSR and the US . . . . . . . . . . . . . . . . . . . 47 17. Weighted Price Ratios of Chemicals in the USSR and the Us ............................. 50 18. Specifications, Prices, and Price Ratios of Petroleum Products in the USSR and the US . . . . . . . . . . . . . . 55 19. Weighted Price Ratios of Petroleum Products in the USSR and the US . . . . . . . . . . . . . . . . . . . . . 58 20. Specifications, Prices, and Price Ratios of Construction Materials in the USSR and the US . . . . . . . . . . . . . 61 21. Weighted Price Ratios of Construction Materials in the USSR and the US . . . . . . . . . . . . . . . . . . . . . . 62 22. Specifications, Prices, and Price Ratios of Abrasives Products in the USSR and the US . . . . . . . . . . . . . . 64 23. Specifications, Prices, and Price Ratios of Iron and Steel Products in the USSR and the US . . . . . . . . . . . . . . 72 24. Weighted Price Ratios of Iron and Steel Products in the USSR and the US . . . . . . . . . . . . . . . . . . . . . . . . . 75 25. Specifications, Prices, and Price Ratios of Nonferrous Metals in the USSR and the US . . . . . . . . . . . . . . . . . . . 78 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 CIA-RDP79SO1046A000500040001-2 Page 26. Weighted Price Ratios of Nonferrous Metals in the USSR and the US . . . . . . . . . . . . . . . . . . . . . . . . . 80 27. Specifications, Prices, and Price Ratios of Tractors and Trucks in the USSR and the US . . . . . . . . . . . . . 82 28. Weighted Price Ratios of Tractors and Trucks in the USSR . . . . . . . . . . . . . . . . . . . . . . . . . . . 83 29. Specifications, Prices, and Price Ratios of Metalworking Machinery in the USSR and the US . . . . . . . . . . . . . 86 30. Weighted Price Ratios of Metalworking Machinery in the US . . . . . . . . . . . . . . . . . . . . . . . . . 88 31. Specifications, Prices, and Price Ratios of Textile Machinery in the USSR and the US . . . . . . . . . . . . . . 90 32. Weighted Price Ratios of Textile Machinery in the US . . . . 91 33. Specifications, Prices, and Price Ratios of Electrical Equipment and Electronics in the USSR and the US . . . . . . 92 34. Weighted Price Ratios of Electrical Equipment and Electronics in the USSR and the US . . . . . . . . . . . . . 97 35? Specifications, Prices, and Price Ratios of Communications Services in the USSR and the US . . . . . . . . . . . . . . 103 36. Weighted Price'Ratios of Communications Services in the USSR and the US . . . . . . . . . . . . . . . . . . . . . l04 37. Specifications, Prices, and Price Ratios of Electric Power in the USSR and the US . . . . . . . . . ... . . . . . 107 38. Weighted Price Ratios of Electric Power in the USSR and the US . . . . . . . .. . . . . . . . . . . . . . . . . . 108 39. Calculation of Ruble-Dollar Ratios for Rail Freight Transportation . . . . . . . . . . . . . . . . . . . 109 40. Specifications, Prices, and Price Ratios of Highway Construction and Multistory Housing in the USSR and the US . . . . . . . . . . . . . . . . . .. . . . . . . . . . 112 S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 CIA/RR RA-15 S-E-C-R-E-T (ORR Project 10.824) 1950 RUBLE-DOLLAR PRICE RATIOS FOR GOODS AND SERVICES IN THE USSR AND THE US* Summary and Conclusions This analysis of 1950 ruble - 1950 dollar market price ratios for final products (goods and services) common to the Soviet and the US economies indicates that the over-all purchasing power of the 1950 ruble is approximately 6 cents if the ratios are averaged with US weights (expenditure pattern) and about 12 cents if the ratios are averaged with Soviet weights. If the purchasing power of the ruble is examined for the various end-use categories of the Soviet and the US economies substantial variations are to be found. Thus, depend- ing upon whether US or Soviet weights are utilized in averaging the ratios, the consumer ruble is worth 5 or 10 cents, the investment ruble 10 or 11 cents, the defense ruble 18.5 or 20 cents. The admin- istration ruble, for which identical Soviet-US weights were assumed, is valued at 40 cents. If the 1950 ruble - 1950 dollar aggregate end-use (gross national product -- GNP) ratio is adjusted to a 1953 ruble - 1955 dollar basis by means of appropriate price indexes., the purchasing power of the 1953 ruble can be calculated at about 8 cents (US weights) or 16 cents (Soviet weights). Because the application of the Soviet-weighted and the US-weighted GNP ruble-dollar ratios to Soviet GNP estimates in rubles results in an overstatement and understatement, respectively, of Soviet GNP in dollars relative to US GNP, an average of the two ratios is utilized to avoid the two extremes. The average of the 1953 ruble - 1955 dollar GNP ratios of 6.5'to 1 (Soviet weights) and 12.3 to 1 (US weights) is 9.4 to 1. Thus 1955 Soviet GNP in 1953 rubles is converted to 1955 US dollars at the rate~of 9.4 rubles per dollar. An analysis of ruble-dollar ratios for both consumer goods and producer goods reveals that (1) the median ratio for consumer goods and services of 19.8 rubles per dollar is almost 3 times greater than * The estimates and conclusions contained in this research aid represent the best judgment of ORR as of 1 February 1957. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 the median ratio for producer goods of 7.7 rubles per dollar and that (2) within the category. of producer goods the median ratio for indus- trial materials and energy items of 11.2 rubles per dollar is approxi- mately twice-as high as the median ratio of 5.9 rubles per dollar for machinery and equipment items. An important factor contributing to the absolute difference between producer and consumer goods ratios is the turnover tax levy on consumer goods, which constituted, on the average, about 60 percent of the Soviet retail prices in 1950. Within the producer goods category the high ratios for industrial materials compared with the ratios for machinery and equipment items may indicate that the technology and productive efficiency of the machinery and equipment-producing sector is superior to the technology and productive efficiency of the industrial materials sector. I. Introduction. This research aid has the following objectives: 25X1A5a1 1. To present, partly as a supplement to, and part as a revision of the ruble-dollar ratio research already completed a detailed catalog of 1950 ruble-dollar price ratios for intermediate and final products of the US and Soviet economies along. with supporting documentation and methodology. 25X1A5a1 25X1A5a1 2. To construct 1950 ruble - 1950 dollar market price ratios for end-use components of gross national product (GNP) for the purpose of converting ruble estimates of Soviet GNP to dollars and by means of appropriate adjustments to develop 1953 ruble - 1955 dollar ratios for GNP. 25X1A5a1 The extent to which these two objectives have been attained in this research aid is heavily dependent upon previous empirical and methodol- 25X1A5a1 ogical analysis conducted by the Organiza- tion for European Economic Cooperation (OEEC). For serially numbered source references, see Appendix D. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 25X1A5a1 The OEEC has .published an analysis of international comparisons of the national product of the US with the national products of the UK, France, Ger- many, and Italy. ~/ The need for a study of ruble-dollar ratios stems from attempts to compare the GNP of the US and the USSR. In order to be able to make direct comparisons of GNP for the two countries, it is necessary to measure the product of both economies in both dollars and rubles. The application of a set of end-use price ratios -- either ruble-dollar or dollar-ruble -- to US GNP in dollars or Soviet GNP in rubles enables the comparison of GNP in units of the same currency. It would be pos- sible, of course, to utilize the official Soviet exchange rate of 4 rubles to the dollar for this purpose. The official exchange rate, however, bears no particular relationship to the actual purchasing power. of the ruble and, as will be seen below, grossly overstates the actual purchasing power. The absence of a relationship between offi- cial rates of exchange and the purchasing power of currencies was strongly brought out in the OEEC study mentioned above. The basic data of this research aid are 1950 US and Soviet prices for intermediate and final products common to the US and the Soviet economies. These data provide the basis for calculating ruble-dollar or dollar-ruble price ratios. The calculation of such price ratios, however, is complicated by numerous difficulties, some of which are inherent in international price comparisons. The more important pro- blems which must be dealt with in international price comparisons are (1) product comparability, (2) the representativeness of the sample of prices, and (3) the development of systems of weights for the pur- pose of aggregating the ratios. In this research aid each of these problems has, in certain instances, had to be dealt with somewhat summarily due to the scarcity of Soviet statistical data. Because of the lack of data, it becomes difficult to evaluate the impact of some- what arbitrary assumptions which have to be made, as will become evi- dent in II and III, below. II. Ruble-Dollar Ratios for Producer and Consumer Goods. 1. General Characteristics of Ratios- 25X1A5a1 Ruble-dollar ratios computed by CIA for producer and consumer goods and services are grouped by 19 categories and arranged Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 by class intervals of 5 rubles per dollar in Table 1.* Several inter- esting observations on the characteristics of ruble-dollar ratios can be made from the data in Table 1, some of which are the following: (a) the median ratio for consumer goods and services of 19.8?rubles per dollar is almost 3 times greater than the median ratio for producer goods of 7.7 rubles per dollar**; (b) within the category of producer goods the median ratio for industrial materials of 11.2 rubles per dollar is approximately twice as high as the median ratio Of 5.9 rubles ,per dollar for machinery and equipment items; (c) the ratios for-con- sumer goods and services show more dispersion than the ratios for pro- ducer goods, as do the ratios for industrial materials relative to machinery and equipment ratios; and (d) approximately 25 percent of the total number of ratios are equal to or greater than 15.0 rubles per dollar. It is also of interest to inquire into the kinds of items with ruble-dollar ratios of an unusually high magnitude -- for example, ratios of 30.0 rubles per dollar and greater. Producer goods falling into this category are principally nonferrous metals and chemicals, among which are'the following: (a) nonferrous metals -- antimony (32.6:l),*** magnesium (31.0:1), nickel (37.1:1), mercury (+7.2:1), cadmium (56.2:1), tin (67.9:1), and cobalt (103.1:1); and (b) chemi- cals --hydrofluoric acid (31.7:1), phosphoric acid (39.3:1), calcium chloride (51.1:1), ethyl acetate (63.2:1), borax (123.6:1), and ethyl 25X1A5a1 alcohol (111.5:1). -A sample of consumer goods and services shown in Appendix A with ratios greater than 30.0 rubles per dollar includes ham (31.7:1), canned tomatoes (17.9:1), sugar (53.6:1), cotton towel (60.5:1), a man's wool suit (15.2:1), a woman's wool dress (37.1:1), bed and mattress (30.5:1), pipe tobacco (11.1:1), and dry cleaning (31.0:1). Having summarized the substantial variations in ruble-dollar ratios between and within the categories of producer and consumer goods, it is pertinent to consider some of the factors which underlie this variation. Probably the most important factor contributing to the absolute difference between producer and consumer goods ratios is the turnover tax which is levied on consumer goods in the Soviet economy. * Table 1 follows on p. 5. For a listing of ratios grouped and weighted in accordance with the US Standard Industrial Classification by four-digit categories, see Table 13, p. 10, below. L! ** Median of ratios for industrial materials and machinery and equip- ment items. *** Ruble-dollar ratios in parentheses. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09f08 : CIA-RDP79S01046A000500040001'-2 Distribution of 1950 Ruble-Dollar Ratios by Branch of Industry Number of Ratios in Class Intervals of 5 Rubles per Dollar Number of Ratios Median Ratio o-4.9 5.o-9.9 10 0-14.9 15.0-19.9 20.0-24.9 25.0-29.9 30.0 and Over Solid fuels, petroleum, and electric power 38 17.0 0 1 11 20 5 1 0 Textile mill products 76 18.8 10 5 2 31 10 7 11 Lumber and wood products 89 8.1 14 50 22 2 1 0 0 Paper and allied products 6 13.2 0 1 3 2 0 0 0 Chemicals 110 15.3 6 13 34 15 12 6 24 Construction materials 48 5.1 22 12 4 8 1 1 0 Abrasives 85 2.4 84 1 0 0 0 0 0 Iron and steel 58 8.9 0 39 10. 6 2 0 1 Nonferrous metals 94 14.0 0 2 53 29 3 0 7 604 11 2 136 124 139 113 34 D Ll . - Fabricated structural and other fabricating metal products 65 5.7 18 42 4 0 1 0 0 Transportation, construction, and mining machinery 36 4.5 20 13 3 0 0 0 0 Metalworking machinery 54 3.8 36 15 2 1 0 0 0 Other machinery (except electric) 112 5.6 47 48 12 3 1 0 1 Electrical machinery and equipment 218 5.6 90 65 36 i4 6 1 6 Professional and scientific equipment 9 6.9 2 6 0 1 0 0 0 Communications equipment 6 5.6 2 2 1 0 0 1 0 Total machinery and equipment L 1~ 5.9 ?12 L911 L ls, 8 2 Food 37 27.0 1 3 5 5 _ 3 5 15 Manufactured goods 57 20.6 6 6 6 9 8 3 19 Services 19 6.9 6 7 3 0 1 1 1 Total 11i 19.8 ?l 16 14 14 12 9- 35 Rail freight transport 29 3.9 24. 5 0 0 0 0 0 Total all ratios 1,246 8.2 336 211 146 54 26 L Cumulative total 388 724 935 1,081 1,135 1,161 1,246 Cumulative percentages 31.1 58.1 75.0 86.8 91.1 93.2 100.0 -5- S-E-C-R-E-T Approved For Release 1999/09/08 CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 On the average, turnover taxes in 1950 constituted about 60 percent of the retail prices of consumer goods. A lesser factor is the lower productivity of consumer goods industries relative to producer goods industries, stemming principally from the relatively obsolete equip- ment of light industry. Within the producer goods category, the high ratios for indus- trial materials relative to those for machinery and equipment items may reflect a possible relative superiority of the machinery and equip- ment sector with respect to technology and_productive efficiency. That is, the machinery and equipment sector of the Soviet economy may com- pare more favorably with its US counterpart on the basis of comparative technology and productive efficiency than the industrial materials sec- tor. Because of the lack of sufficient research on comparative US-Soviet technology, however, it is not possible either to support or to refute this hypothesis. 2. Effective Dates of US and Soviet Prices. The Soviet retail prices for food and manufactures are those which prevailed. in Moscow state stores during March-December 1950. The US retail prices for food are averages for the first quarter of 1950 for -56 large cities, and the prices of manufactured goods?are 1950 averages for the city of Chicago. The prices for services are 1950 average annual prices prevailing in Moscow and Chicago. In general, the wholesale ruble prices utilized in this research aid were those in effect as of 1 July 1950.* Prices in effect on 1 July 1950 differed from those in effect on 1 January as a result of 1 July 1950 price reductions for the following commodities: lumber., ordinary shapes of rolled ferrous metals, construction materials and equipment, petroleum products, trucks, and metalworking machinery. Also reduced were tariffs on rail, river, truck, and animal transportation. Prices effective 1 July 1950 for construction materials, petroleum products, trucks, and metalworking machinery were utilized in the construction of the ruble-dollar ratios. In most instances the US wholesale prices were those in effect during the first quarter of 1950. In some instances, mid-year and annual average prices were used. The principal reason for utilizing * See Appendix B. -6- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T first-quarter or first-half 1950 prices for the US was to minimize the effect of the Korean War on the relative price structure. III. Ruble-Dollar Ratios for End-Use Components of Gross National Product. 1. Nature and Significance of End-Use Ratios. Estimates of 1950 market price ruble-dollar ratios for end-use components of GNP -- consumption, investment, defense, administration -- are shown in Table 2. 1 1950 Ruble-Dollar Ratios for Gross National Product and End-Use-Components J Rubles per Dollar Category Soviet Weights US Weights Consumption 10.4 19.6 Food 18.1 25.3 Manufactured goods 14.5 26.4 Services (other than medical and education) 4.3 5.9 Medical services 1.5 1.5 Education 3.0 3.0 8.9 9.8 Producer durables 6.0 6.8 Construction 11.0 12.0 Additions to inventory 8.8 8.8 Defense 4.9 5.4 Administration 2.4 2.4 Gross national product b 8.3 16.4 a. For the derivation of these ratios, see 2a, b, c, and d, below. b. For the end-use weights used to construct the GNP ratio, see Appendix A. S-E-C-R-E" T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Theratios in Table 2 provide a means for assessing the purchas- ing power of the 1950 ruble, in terms of 1950 dollars, for the various components of GNP. Thus the consumer-ruble is worth about 5 cents (US weights) to 10 cents (Soviet weights). The investment ruble has a pur- chasing power of about 10 cents (US weights) to 11 cents (Soviet weights), and an even higher purchasing power can be attributed to the defense ruble -- approximately 18.5 cents (US weights) to 20 cents (Soviet weights). The 1950 ruble - 1950 dollarratios shown in Table 2 are the appropriate-ratios-for translating 1950 Soviet GNP components in 1950 rubles into 1950 dollars. If it is desired to convert a ruble estimate of 1955 Soviet GNP in 1953 rubles into 1955 dollars, the 1950 ruble - 1950 dollar ratios must be adjusted to reflect Soviet price changes during 1950-53 and US price changes during 1950-55? Adjustment of the 1950 ruble - 1950 dollar ratios with these price indexes will provide a set of 1953 ruble - 1955 dollar ratios for end-use components which can be weighted with 1955 US and Soviet end-use components in 1953 rubles and 1955 dollars. The price indexes for adjusting the 1950 ruble - 1950 dollar ratios are shown in Table 3.* The sharp gradations in the relative purchasing power of the ruble between GNP components are a reflection of past and present Soviet resource allocation policy. The armaments and machinery industries of the USSR have long been favored claimants of resources with respect to allocations of skilled labor, raw materials, investment funds, and tech- nological research programs. On the other hand, consumer goods indus- tries in the USSR have been forced into a position as residual claimants of resources. As a consequence, the Soviet armaments and machinery industries compare much more favorably with their counterpart US indus- tries from the point of view of technology and productive efficiency than do Soviet consumer goods industries with their US counterparts. Soviet prices reflect the current stage of development of the machine building and consumer goods industries. Generally speaking, relative prices reflect relative scarcities in these two areas of pro- duction -- that is, on a relative basis, machinery and equipment items in the USSR are cheap and plentiful, whereas consumer goods are scarce and expensive. In this sense, Soviet prices may be said to be "rational" or economically meaningful. In the same sense the relative ruble-dollar * Table 3 follows on p. 9. -8- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 19'99/09108 : CIA-RDP79SO1046A000500040001-2 Adjustment of 1950 Ruble - 1950 Dollar Ratios for End-Use Components of Gross National Product to 1953 Ruble - 1955 Dollar Ratios (1) (2) (3) (4) 1950 Rubles= 1950 Dollars Index Index J 1953 Rubles : 1955 Dollars J Category Soviet Weights US Weights 1950 Rubles : 1953 Rubles 1955 Dollars : 1950 Dollars Soviet Weights US Weights Consumption 10.4 19.6 117.9 111.1 7.9 15.0 Investment 8.9 9.8 108.1 114.3 7.2 7.9 Defense 4.9 5.4 108.9 115.5 3.9 4.3 Administration 2.4 2.4 96.5 112.4 2.2 2.2 Gross national product a! 8.3 16.4 6.6 a. For the end-use weights used to construct the 1953 ruble - 1955 dollar GNP ratio, see Appendix A. b. 5 c. GNP deflators constructed by US Department of Commerce. J d. 1953 ruble - 1955 dollar ratios for GNP categories are calculated by the following formula: Column (1) Column (2) x Column (3) Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 ratios for consumption goods as against the ratios for investment and defense may be viewed as economically meaningful. A problem that remains to be dealt with, however, is which ratio should be selected for the conversion of Soviet GNP to dollars -- the Soviet-weighted ratio, the US-weighted ratio, or a combination of the two. There are two available alternatives for determining the size of Soviet GNP relative to US GNP. Final products of the USSR can be valued in dollars and compared with US GNP in dollars, or, alternatively,, final products of the US can be valued in rubles and compared with Soviet GNP rubles. If both the composition of final product and the relative price -structure are thesame for the two countries, then either method would show the same proportion between Soviet and US GNP. In fact, the same proportion will be obtained under the less stringent condition that only the relative price structure or the composition of the pro- duct be identical. Because both the relative price structure and the composition of output are different for the US and,the USSR, however, two different answers will be obtained for the relative size of Soviet and US GNP. In valuing the national product of the USSR in dollars and that of the US in rubles, an upward bias is imparted to the national product of each in the-event of an inverse relationship between the price ratios and the quantity ratios* for the two countries, for an inverse relation- ship between price and quantity ratios means that relatively high (low) prices are being applied to relatively large (small) quantities when each country's output is valued in the prices of the other. To eluci- date further the statisticaland economic aspects of this inverse rela- tionship, it is useful to carry out -a-sample calculation. Consider the problem of comparing the value of output of wine and beer in France and the UK. Hypothetical data for the prices and quantities of these two commodities are the following: po q-o pl ql Wine 2 4 4 3 Beer 3 1 2 5 where po and qo represent French prices and quantities and pl and ql represent British prices and quantities. Note that an inverse relation- ship exists between the price and quantity ratios. Therefore,, in * A quantity ratio for a given commodity is obtained by dividing Soviet output by US output. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 valuing the French output of wine and beer in pounds, for example, a relatively large French quantity, 4 units of wine, is multiplied by a relatively high British price, 4+ pounds, and a relatively small French quantity, 1 unit of beer, is multiplied by a relatively low British price, 2 pounds. It is this direct application of relatively high (low) prices to relatively large (small) quantities which results in an overstatement of French output in pounds relative to British out- put*in pounds. The economic rationale of the inverse relationship between the price and quantity ratios for wine and beer is clear. Both countries emphasize the production of commodities which they can produce most cheaply -- beer in the UK and wine in?France. Carrying through the valuation of each country's output in both francs and pounds, the following four value measures of output are available: E po qo = 11 = French output in francs E Po ql = 21 = British output in francs .E pl 60 = 18 = French output in pounds E Pl q1 = 22 = British output in pounds Thus the franc comparison shows that French output is about 50 percent of British output, and the pound comparison reveals that French output is about 80 percent of British output. But on the basis of the dis- cussion above it is concluded that the output comparison in francs understates the size of French output relative to British output and that the output comparison in pounds does just the opposite. As stated initially, the upward bias imparted to the national product of each country by valuing it in the prices of the other is a resultant of an inverse relationship between price and quantity ratios25X1A5a1 What empirical evidence is available, therefore, on the. existence of an inverse relationship? in a study of 1950 ruble-dollar ratios for consumer goods and services, has found that price ratios correlate inversely with quantity ratios. J1 This finding was in agreement with similar results obtained by Gilbert and Kravis in their study of com- parisons of US national product with each of the national products of the UK, France, Germany, and Italy. / Thus, although, the existence of an inverse relationship underlying US-Soviet comparisons of the investment and defense components of GNP remains to be demonstrated, Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T it will be assumed for the purpose of this research aid that an inverse relationship does prevail. 25X1A5a1 Granting this assumption, comparisons of the relative size ofa Soviet and US GNP by means of Soviet-weighted and US-weighted price ratios lead to an overstatement -and understatement, respectively, of Soviet GNP. To avoid these extremes of estimation, an average of the two ratios may be employed. It should be pointed out, however, that there is no economic meaning that can be imparted to the average ratio, which is in fact a hybrid. Of course, if the spread between the two ratios is fairly narrow, little obscurity is introduced by recourse to an average ratio. If the spread is substantial, however, as is the case with the US-weighted and Soviet-weighted ruble-dollar ratios, there can be no unambiguous economic interpretation of the average ratio. It is probable, moreover, that the gap between the Soviet- weighted and the US-weighted ruble-dollar ratio would become larger as the sample number of ruble-dollar ratios for end items increased. This would be due to a tendency for the product mixes of the USSR and the US to become increasingly dissimilar as the output of each country was considered in greater detail.. The increasingly greater dissimilar- ities in product mix would in turn be simply a manifestation of under- lying differences in tastes, re-source endowment,, and technology. 2. Derivation of End-Use Ratios. a. Consumption. - Ruble-dollar ratios for the consumption sector of GNP are based primarily upon detailed comparisons of US and Soviet prices for food, manufactured goods, and services conducted 25X1A5a1 Ruble-dollar ratios for medical services andeducation which -computed by CIA for a man's wool suit, a woman's wool dress, and civil- ian radio receivers. See Appendix A for the revised ratios. were not included have also been computed. 25X1A5a1 studies include ratios for 37 food items, 57 manufactured goods, and 25X1A5a1 17 services.* The ratios for manufactured goods are based on (1) Soviet retail prices effective in Moscow state stores during March-December 1950 and (2)US average 1950 retail prices effective in the city of Chicago. Both the Moscow and Chicago prices are representative of prices in other large cities of the two countries. Prices for services 25X1A5a1 studies have been adjusted to take account of revised ratios Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 CIA-RDP79SO1046A000500040001-2 25X1 A5a1 (other than medical and education) are average annual prices prevailing in Moscow and Chicago. Soviet retail food prices are those in effect in Moscow state stores during March-December 1950. US food prices are average first-quarter 1950 prices for 56 large cities. The construction of ruble-dollar ratios for food items is complicated by the existence of two general sets of food prices in the USSR -- prices prevaili in state stores and prices effective on the collective farm market. a limited amount of comparative price data for these two sectors for the Moscow area) which tends to show that collective farm market prices are not appreci- ably higher than state store prices. Such a similarity of prices may not prevail for other areas of the USSR. The estimation of ruble-dollar ratios for medical services and education is a problem which must be resolved largely on the basis of arbitrary assumptions. This situation is due, in part, to the fact that most medical and dental services are available to the Soviet popu- lation without charge and to the lack of data on fees charged by doc- tors who supplement incomes by engaging in private practice. In the case of education, tuition fees do not accurately reflect the costs of educational services. In this circumstance the possibility of construc- ting ruble-dollar ratios on the basis of the costs of medical service ana education must be considered. This procedure involves the estima- tion of ruble-dollar ratios for the various input categories such as wages, materials, heat, and light. An important assumption must be made, however,,with respect to ruble-dollar ratios for wages. The assumption is that the productivity of doctors and teachers is the same for the USSR and the US. Because it is exceedingly difficult to define and measure the productivity of doctors and teachers (differences in quality of service are extremely important in this area), it is more or less impossible to test the validity of this assumption. Neverthe- less, the assumption is arbitrarily made in the construction of ruble dollar ratios for medical and educational services. A ruble-dollar ratio for the wage costs of medical services of 1.5 to 1 was computed on the basis of estimated 1950 average wages for medical personnel (physicians and surgeons, dentists, and nurses) in the US and the USSR. A 1950 average wage of 5,770 rubles for Soviet medical personnel was obtained by moving the 19+1 plan average wage for medical personnel of 3,120 rubles to 1950 on the assumption that average wages for this category increased during 19+1-50 by the same estimated percentage above 19-1 as did wages for the national economy -- S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T 85 percent. 10 An average 1950 wage of $5,260 for US medical personnel was obtained by computing a weighted average of the incomes of physi- cians and surgeons, dentists, and nurses.* The ratio of 1.1 to 1 which was obtained by dividing the Soviet wage by the US wage was then adjusted upward to 1.5 to 1 to take into account incomes which are received from pri- vate practice in the USSR and which are not included in the Soviet average wage statistic. For the remaining input categories of medical -services, such as drugs, medical supplies, food for hospitals, heat, and. light, it was assumed that the averageratio for consumer goods andservices other than medical and educational services would apply. A ruble-dollar ratio for education was computed in a simi- lar manner. An estimated average 1950 wage of 8,000 rubles for educa- tion personnel in the USSR was obtained by starting with a 1941 plan average wage for education personnel of 4,330 rubles and assuming that average wages for this category increased by the same percentage above 1941 as did wages for the national economy -- 85 percent. The 1950 average wage for education personnel in the US was estimated to be $2,700.* The ratio of the Soviet average wage to-the US average wage was then calculated to be 3.0 to 1. The ruble-dollar ratio for the remain- ing inputs to education, as in the case of medical services, was assumed to be the same as that for consumer goods and services other than med- ical and education services. Ruble-dollar ratios for food, manufactured goods, and ser- vices are shown in Table 4.** The Soviet weights for food, manufac- tured goods, and services (other than medical and education) are for 1937,*** and the US weights are for 1950. The Soviet weights for com- modities are based on data on the structure of retail sales in 1936, 1937, and 1938. The weights for services were extrapolated from 1928 weights which are based upon 1927-28 budget studies of Soviet urban workers conducted by the USSR. The US weights are based upon Bureau of Labor Statistics data on the relative importance of items in the BLS Consumer Price Index. The average ratio for medical and education services was calculatedby weighting the individual ratios for medical and -educa- tion services by 1950 expenditures for both countries. The ratio for For data and methodology, see Appendix A. ollows on p. 15. developed a set of 1952 weights, but they are believed to be less reliable than those for 1937. ll 25X1A5a1 - 14 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Table 4 1950 Ruble-Dollar Ratios for Consumer Goods and Services Rubles per Dollar Consumption Category Soviet Weights US Weights Food 18.1 25.3 Manufactured goods 14.5 26.4 Services (other than medical and education) 4.3 5.9 Medical and education services 2.3 2.4 Consumption (other than medical services and education) 13.5 20.4 Total consumption 10.4 19.6 medical and education services was then combined with the ratio for consumption (other than medical and education services) on the basis of 1950 expenditures data for both categories.* b. Investment. Weighted ruble-dollar ratios were calculated for the three principal categories of investment -- producer durables, construction, and additions to inventory. Ruble-dollar ratios for producer durables, construction, inventories, and total investment are shown in Table 5. 1950 Ruble-Dollar Ratios for Producer Durables, Construction, and Inventories Rubles per Dollar Category Soviet Weights US Weights Producer durables 6.0 6.8 Construction 11.0 12.0 Inventories 8.8 8.8 a/ Total investment / 8.9 9.8 a. Median of all ratios except all services and electric power. b. For the weights used to construct the ratio for total invest- ment, see Appendix A. For data and methodology, see Appendix A. - 15 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 (1) Producer Durables. The producer durables ratio is based upon an extensive sample of machinery and equipment items -- a total of 289 ratios. An approximation of the coverage of the sample with respect to US output can be gained by comparing 1947 purchases of producer durables for the categories represented in the sample -- $6.8 billion -- with total producer durables expenditures in the US in 1947 --- $16.7 billion. 12/ There are some significant omissions from the machinery and equipment sample. Not included in the sample are agricultural mach- inery (other than tractors)., locomotives and railroad equipment, com- mercial aircraft, ships and boats, commercial machines, food machinery, printing machinery, petroleum refining equipment, and most chemiOal equipment. Weighted ratios for the machinery and equipment cate- gories constituting producer durables are shown in Table 6.* In most instances the ratios within each category were weighted by 1947 value of shipments data. These ratios, in turn, were weighted by purchases of producer durables for 1947 to obtain an aggregate US-weighted ratio of 6.8 to 1. Because of the lack of Soviet gross value output data for machinery and equipment items, it was not possible to calculate directly a Soviet-weighted producer durables ratio. However, by exam- ining the magnitude of the ratios for the various machinery and equip- ment categories and by making some judgments about the relative gross value weights for these categories in the USSR, it is possible to make a guess of a Soviet-weighted producer durables ratio. It is probable that sectors 1:L0, 112, 114, 116, 117, 131, 132, and 133 shown in Table 6, for which the US-weighted average is 5.7 to 1, have a substantially higher relative weight in total producer-durables in the USSR than in the US. On the basis of this probability, an estimate of 5.5 - 6.0 to 1 is made for the Soviet producer durables ratio. (2) Construction. Research that has been completed up to the present time on comparative construction costs for the USSR and the US is insufficient Table 7-follows on P- 17- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 109/09108 : CIA-RDP79SO1046A000500040001'-2 Table 6 1950 Ruble-Dollar Ratios for Selected Categories of Producer Durables Number J Number of Ratios Type of Machinery or Equipment in Sector Average Ruble-Dollar US 1947 Purchases Ratio of Producer Durables 11/ (US Weights) (Million Dollars) Source 110 Steam engines and turbines 10 3.0 J 58.3 - CIA 112 Farm and industrial tractors 3 7.2 J 547.1 CIA 114 Construction and mining ma- chinery 27 5.0 466.o 25X1A5a1 116 Machine tools and metal- working 30 5.9 577.0 CIA 117 Cutting tools, jigs, and fixtures 24 3.5 72.2 118 Special industrial machinery 55 7.7 1,221.0 119 Pumps and compressors 5 6.5 252.6 5 2 2.6 126 Valves and fittings 19 6.5 1o6.5 130 Electrical measuring instru- ments 18 12.4 111.5 131 Motors and generators 79 5.0 218.1 132 Transformers 81 5.1 223.3 133 Electrical control apparatus 9 5.9 325,0 145 Motor vehicles 2 7.3 J 2,618-3 CIA Total L 6.8 6,796.9 25X1A5a1 a. Sector numbers are the industry classification numbers employed in the US 192-Sector Classifica- tion of the US 1947 Interindustry Relations Study. b. 14 c. Simple average of ratios. 17 S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 to permit the estimation of -a reliable ruble-dollar ratio for construc- tion. Only two ruble-dollar ratios are currently available for con- structioh "end items"- roadbuilding and residential construction.* A limited number of ratios for various types of construction components such as foundation construction wall construction, and excavation work have been computed A summary of currently available construction ratios is shown in Table 7. 25X1A5a1 1950 Ruble-Dollar Ratios-for Various Types and Components of Construction Rubles per Dollar Type of Construction Blacktop highway 11.3 Multistory apartment house 15.4 -Pipelines 2.2 to 9.5 -Pile driving 9.0 Interior painting 2.3 to 9.9 Brick wall 5.2 Wood framing 2.0 to 5.0 Hardwood floor 3.7 Roofing work 6.3 to 37.7 Concrete work 4.5 to 6.2 Girder assembly 2.4 to 2.9 Excavating work 9.9 to 11.8 -Foundation work 4.1 to 5.9 The ratios shown in Table 7 are based upon input requirements for labor and materials. US 1950 costs are based, in part, upon cost data from actual jobs. Soviet 1950 costs, with the exception of the apartment house costs, which are actual cost-s, are based upon input "norms" for the Leningrad area. Because actual con- struction-costs in the USSR are frequently higher than norm costs, particularly for labor inputs, the ruble-dollar ratios in Table 7 are probably underestimated to a substantial degree. In a Soviet For the derivation of these ratios, see Table 40, p. 112, below. - 18 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T text on the construction industry, for example, the average monthly earnings of Soviet construction workers during 1950-51 are stated to be about 650 rubles or in excess of 150 percent of the wage norm. 16 Principally on the basis of the ruble-dollar ratios for highway and apartment house construction -- 11.3 and 15.4 rubles per dollar, respectively -- and considering the high probability of substantial underestimation of the construction components ratios in Table 7, it is estimated that a Soviet-weighted construction ratio would be about 11.0 rubles per dollar. It is estimated that a US- weighted ratio would be slightly higher -- about 12.0 to 1 -- because of the relatively larger proportion of residential construction in the US. in comparison with the USSR. This estimate is based, in turn, upon the assumption that the ruble-dollar ratio for residential con- struction is greater than the ratio for industrial construction. (3) Additions to Inventory. The ruble-dollar ratio for net additions to inventory is the median ratio of 8.8 rubles per dollar for the total number of physical commodities considered in this research aid. A median ratio for all commodities is utilized because of the sparsity of data on the composition of commodities entering into inventory. Since addi- tions to inventory are composed of a wide variety of items falling into both the producer and the consumer goods categories, a median.ruble- dollar ratio for all commodities appears to be as adequate a ratio as can be constructed at the present time. c. Administration. A ruble-dollar ratio for administration of 2.4 to 1 was computed by comparing an estimated annual average wage for administra- tive and internal security employees in the USSR with an average annual wage for federal, state, and local employees in the US. The average wage for administrative and internal security employees in the USSR was obtained by assuming that it was approximately the same as the annual average wage-for all workers in the national economy, which is estimated at 7,500 rubles for 1950. 1 The average annual wage for US Government employees in 1950 was122.* For data and methodology, see Appendix A. S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 As in the case of ruble-dollar ratios for medical services and education which were based on ratios of average wages, it is assumed that the productivity of workers in administration in the US and USSR is the same. In view of the many recent attempts by the Russians to reduce overstaffing and considering what appears to be a meager equip- ping of Soviet administrative agencies in comparison with US agencies, it is probable that the productivity of the Soviet administrative employee is lower than that of his US counterpart. Hence the ruble- dollar ratio for administration may be understated. d. Defense. "The ruble-dollar ratio for the defense sector is based upon a weighted average of ratios of highly uneven quality for the various types of defense expenditures. The uneven quality of the ratios stems partly from the uneven quality of the data and partly from the somewhat arbitrary assumptions which had to be made with respect to the representativeness and applicability of available ratios in the absence of price data for certain types of expenditures. In order to be able to gain a limited appreciation of the procedures and assumptions involved and their impact on the reliability of the ratios, the following categories of ratios, in descending order of reliability, are briefly discussed: (1) For many typesof items other than armaments, sufficient ruble and dollar price data were available to permit the calculation of generally representative ratios. The major items for which this could be done are the following: personnel pay and subsistence, automotive equipment and tractors, petroleum products, transportation, construction, some miscellaneous supplies and services, civilian wages, pensions, reserves, MVD-KGB personnel costs, and some research and development. (2) For some categories of armaments a small sample of ratios within each category was presumed to be-representative for each category. Armaments for which this procedure was believed to be generally reliable are aircraft, ships, and armored vehicles. Items for which this procedure was less reliable, because of the smaller number of ratios and lesser representativeness, are communications equipment and installations, ammunition, electronics, and certain wea- pons (principally towed artillery, small arms, and mortars). (3) When prices were not available, ratios were estimated .on the basis of known ratios, taking into account analogous technology, Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T estimated differences in costs, and the like. This procedure was followed in the case of atomic energy, guided missiles, some research and development, some equipment spares, and other miscellaneous items. 3. Comparisons of US and Soviet Gross National Product. On the basis of the end-use ruble-dollar ratios shown in Tables 2 and 3*, it is now possible to compare the GNP of the US and the USSR in market prices for 1950 and 1955. Depending upon whether the comparisons are made in rubles or dollars, 1950 Soviet GNP is about 22 or.42 percent, respectively, of 1950 US GNP (see Table 8**). These widely differing comparison ratios reflect, as previously indi- cated, marked differences in the relative price structure and the composition of output for the two countries. Because of these fun- damental differences underlying the comparison, any attempt to obtain a single estimate of the ratio of Soviet GNP to US GNP must be largely arbitrary. It is simply that there are two different ways of carrying out the comparison. As previously argued, however, a ruble comparison of the final products of both countries does tend to underestimate the ratio of Soviet GNP to US GNP, and a dollar comparison does just the opposite. Thus, if there is any justification at all for an average ratio, it must rest on the contention that the alternative ruble and dollar com- parisons of Soviet and US GNP are subject to downward and upward biases, respectively. Ignoring conceptual difficulties, however, an average ratio for the year 1950 would show Soviet GNP to be about 32 percent of US GNP. For 1955 the ratio of Soviet GNP to US GNP increases to about 38 percent. Pp. 7 and 9, above, respectively. Table 8 follows on p. 22. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T US and Soviet 1950 Gross National Product in 1950 Rubles and 1950 Dollars Billion Billion End-Use Category Rubles a/ Dollars b/ Consumption Investment Defense Administration 681 65 179 20 118 24 29 12 Billion Billion Dollars a/ Rubles b/ 205 4,018 56 543 19 103 6 14 Gross national product c/ 1,008 121 286 4,678 a. For the derivation of the estimates for the end-use components, see Appendix A. b. The formula for conversion of Soviet GNP in rubles to dollars is Pl P Pogo = P1Qo 0 where Pl represents the weighted dollar-ruble ratio (inverse of ruble-dollar ratio) for each 0 end-use category and PoQo represents the ruble estimate for each end-use category. Similarly, in converting US GNP in dollars to rubles the formula is Lo PLQ1 = PoQ1 LLL Pi c. Totals are derived from unrounded figures and do not always agree with the sum of rounded components. -22- Approved For Release 1999/09/,08 : CIA-RDP79SO1046A000500040001.-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 n >_ pl Ql i=1 n p0 Q1 i=1 - 23 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T APPENDIX A METHODOLOGY 1. Weighting of Ruble-Dollar Ratios. The US- and Soviet-weighted ruble-dollar ratios for the various components and subcomponents of GNP have been computed by weighting each individual end-product ratio with the corresponding value of output of the end product. When US-value weights are utilized the following calculation is performed: (a) n 1 P, p0 Q0 p? i i where P?, Q? represent US prices and quantities and Pl, Q1 are Soviet prices and quantities. Alternatively, when Soviet-value weights are utilized the calculation is as follows: (b) ~ P1,Q1 i-1 n 0 Pit pit Qi i pi Formulas (a) and (b) are algebraically equivalent to the Laspeyres and Paasche index numbers, the Laspeyres index number being of the form Pi' Q'i i=1 0 it p'0 Qt. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 The value weights employed in the calculation of the GNP ratios for the USSR and the US are presented in Tables 9,* l0,** and ll.*** The same weighting procedures were employed in computing average ratios for branches of industry and 4-digit industrial categories. Gross value of production or value of shipments data were used as weights in these calculations. The average ratios for the. branches of industry, however, were computed only for the purpose of summariz- ing collections.of individual ratios. These weighted ratios should not be utilized for any other purpose than to gain summary impressions of the extent of the variation of ratios from industry to industry. Particular applications of industrial ratios demand particular types of weighting -systems. 25X1A5a1 25X1A5a1 2. Revision of - Price Ratios for Manufactured Consumer Goods. Price ratios for three major items of ruble- 25X1A5a1 dollar ratios for manufactured consumer goo s were revised as follows: Soviet Price US Price Ruble-Dollar Item (Rubles) (Dollars) Ratio 25X1A5a1 1,900 42.00 45.2 1,900 31.06 61.2 25X1A5a1 Woman's wool dress CIA 559 14.95 37.4 Woman's rayon dress 25X1A5a1 513, 8.14 63.0 12.9 333.33 10.15 32.8 * Table 9 follows on p. 25. ** Table 10 follows on p. 26. *** Table 11 follows on p. 27. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001`-2 S E-C-R E-T Table 9 Ruble-Dollar Ratios for Gross National Product End-Use Categories and US and Soviet Gross National Products for 1950 and 1955 1950 Ruble-1950 Dollar Ratios 8 Soviet 1950 US 1950 (Rubles per Dollar) Soviet 1955 US 1955 End-Use Category Gross National Product J (Billion 1950 Rubles) Gross National Product b~ (Billion 1950 Dollars) Soviet Weights US Weights Gross National Product , (Billion 1953 Rubles) Gross National Product J (Billion 1955 Dollars) Consumption 681.3 204.8 10.4 19.6 803.6 266.7 Food 1 18.1 25.3 Manufactured goods 639.5 r 196.0 r 14.5 13.5 J 26.4 20.4 J Services (other than medical and education) J 4.3 5.9 Medical services (public and private) 11.8 / 3.4 1.5 1.5 Education (public and private) 30.0 3 - 5.4 3.0 3.0 Investment 179.3 56.0 Producer durables 43.6 J 21.1 6.0 6.8 Construction 107.8 J 29.7 11.0 12.0 Change in inventories. 27.9 i/ 5.2 8.8 8.8 Defense 117.6 18.5 4.9 5.4 155.0 40.8 Administration 29.4 5.7 2.4 2.4 27.4 8.4 Gross National Product 1,007.6 285.0 8.3 16.4 1,250.7 387.4 a. Estimates for the four principal end use categories derived from Table 10, p. 26, below. b. Estimates for the four principal end-use categories derived from Table 11, p. 27, below. c. The ruble-dollar ratios for the four principal end-use categories were calculated by weighting the ratios within the end-use categories by the corresponding US and Soviet GNP expenditures for 1950. d. See Table 10. e. See Table 11. f. See 2, above and 3, below. g. Wage bill for medical personnel (see 5, below). h. Wage bill for medical personnel (see 3, below). i. Wage bill for education personnel (see 5, below). J. Wage bill for education personnel (see 3, below). k. 18 1. m. Residual estimate. 25 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S E-C-R-E-T Soviet Gross National Product for 1950, 1953, and 1955 in 1950 and 1953 Ruble Prices, by End-Use Category 1953 Gross Gross National Gross National National Product Product Product (Billion Growth Index Price Index, 1950 Gross National Product (Billion 1950 Gross Gross National National Product Product (Billion Growth Index, 100) J ( 1955 Gross National Product (Billion 1953 Rubles) 1955 Gross National Product (Billion 1950 Rubles) 0 J 1 (1950=100) 1950-53 (1953=100) y 1953 Rubles) 1950 Rubles) 1953-55 1953= End-Use Category 95 -53 1953 Rubles) Consumption 713.7 123.5 117.9 577.9 681.3 112.6 122 1 803.6 264 7 947.4 286.1 Investment 216.8 130.7 108.1 165.9 179.3 6 11 . 119 3 . 0 155 168.8 Defense 129.9 120.3 108.9 108.0 7. 4 . 0 . 4 27 26 4 Administration 28.8 94.5 96.5 30.5 29. 6 95. . 1 250 7 . 1;428.7 Gross national product 1,089.2 882.3 1,007. , . a. 20 b. For methodology, see source 21 . c. For methodology, see source E2/. d. Obtained by dividing 1953 GNP in 1953 rubles by the GNP growth indexes for 1950-53- e. Obtained by multiplying 1950 GNP in 1953 rubles by the GNP price indexes for 1950-53. f. For methodology, see source. g. Obtained by multiplying 1953 GNP in 1953 rubles by the GNP growth indexes for 1953-55. h. Obtained by multiplying 1955 GNP in 1953 rubles by the GNP price indexes for 1950-53. - 26 - Approved For Release 1999/09108 : CIA-RDP79S01046A000500040001 ,2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Table 11 Adjustments of US Gross National Product for Comparability with Soviet Gross National Product 1950 and 1955 End-Use Category Consumption Personal Public health Public education Total Administration Total government Less Billion Current Dollars b J National security Public construction Public health Public education Defense Total national security expenditure Investment 1950 1955 194.0 252.4 2.5 4.o 8.3 10.3 204.8 266.7 42.0 75.9 -18.5 -4o.8 - 7.0 -12.4 - 2.5 - 4.0 - 8.3 -10.3 5.7 8.4 18.5 4o.8 Private investment 51.2 59.4 Public construction 7.0 12.4 Foreign balance -2.2 -0.3 Total 56.0 71.5 Gross national product 285.0 387.4 a. For estimates of personal consumption, govern- ment, national security, private investment, foreign. balance, and gross national product, see source L4/. b. For data and methodology, see Appendix A. - 27 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 25X1A5a1 The US price for the man's wool suit was the midpoint of the high and low prices of $25.95 a 36.95. It is believed that this range was not sufficiently great to compare with the Soviet price range of 800 to 3,000 rubles. The Soviet high and low prices appear to be those for high- and low-quality suits. A more comparable range for US prices is judged to be from $25.95 to $58. The price of $58 is a median of quotations obtained froni re- tail stores in 18 large cities in March 1950 for a grade, wool suit (13 - 13-1/2 ounces. per yard). 26 A ruble-dollar ratio for a woman's wool dress was substituted for the ratio computed for a woman's satin rayon crepe dress. It is be- lieved that a ratio for a wool dress would be more representative of clothing purchases in the USSR than the ratio for a satin crepe dress. The Soviet price is apparently for an all-wool dress of average qual- ity. / A comparable US price is judged to be that for an all-wool street dress of fair workmanship. L8/ The CIA ruble-dollar ratio for civilian radio receivers is a simple average of ratios for four different types of receivers.* Soviet 1950 prices were available for each of the four receivers. US prices were estimated on the basis of what it would cost US manufac- turers to manufacture the Soviet radios in the US. Having computed revised ratios for the suit, dress, and radio, the Soviet- and?US-weighted ruble-dollar ratios for manufactured con- sumer goods were recomputed Revised ratios of 25X1A5a1 14-.5 rubles per dollar (Soviet weights and 2 ".rubles (US weights) were obtained, compared with _ ratios of 14.6 rubles per dollar 25X1A5a1 (Soviet weights) and 28.2 rubles per dollar (US weights). 3. Derivation of US Average Wage for Medical and Education Personnel in 1950. A weighted average wage forUS medical personnel in 1950 was computed on the basis of the employment and average income data pre- sented in. the following tabulation (all income data are gross of in- come taxes): * For the individual ratios and prices, see Appendix B. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Type of Personnel Number of Employees L9/ Average Income (us $) Total Income (Thousand US $) Physicians and surgeons 178,950 ,11,538 30 2,061+.7 Dentists 68,670 7,293 31 500.8 Nurses (profes- sional) 1+03,470 2,127 32 858.2 Total or average 651,090 5,258 3,423.7 The average income for physicians, surgeons, and dentists is an average for both salaried and nonsalaried individuals. b. Education Personnel. A weighted average wage for both publicly and privately em- ployed education personnel in 1950 was computed on the basis of the employment and average wage data presented in the following tabula- tion (all wage data are gross of income taxes): Number of Average Wage 3 Total Wages Type of Employment Employees 33 (us $) (Thousand US $) Public education 1,536,000 2,791+ 1+,291.6 Private education Conunercial and trade 39,000 3,1+10 133.0 schools Education, n. e. c.* 1+1+1,000 2,290 1,009.9 Total or average 2,016,000 2,696 5,434.5 - 29 - Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T 11. Derivation of US Expenditures for Medical Services and Education in 1950 and 1955. a. Medical Services. Expenditures for medical services in the US are composed of both publicand private outlays. The public outlays are the total outlays (less construction expenditures) for health and medical ser- vices under civilian public programs, whereas the private outlays are restricted to professional services only and do not include expendi- tures for pharmaceuticals, medical apparatus, and the like. The data on public outlays are on a fiscal year basis, the data on private outlays on a calendar year basis. An estimate of public expenditures on a calendar year basis is made by averaging expenditures for the fiscal years 1950 and 1951. Expenditures for the calendar year 1955 are assumed to be approximately the same as fiscal 1955. Data for public and private expendituresfor medical services in the US in 1950 and 1955 are shown in the following tabu- lation: - Billion US 1950 1955 Public expenditures 2.5 L5/ 4.o 36 4 Private expenditures 6.4 L7/ 9.0 L 3/ 8.9 13.0 b. Education Expenditures. Current expenditures for education in the US in 1950 and 1955 on a public and private basisare shown in the following tabulation: Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Million US 1955 Public expenditures Federal 2,300* 802 39 State and local 7,177 / 11,907 Ll/ Total 9,477 12,709 Less construction -1,133 / -2,442 3 Current public expenditures 8,344 10,267 Private education and research 1,959 / 2,905 Total public and private expenditures on current account 10,303 13,172 Derivation of Soviet Current Expenditures on Health and Education for 1950. Planned 1950 expenditures on health and education as given in the 1950 Soviet budget were 22 billion rubles and 59.5 billion rubles, respectively. Because these expenditures are inclusive of both current and capital outlays, it is necessary to deduct capital expenditures if estimates of current expenditures are to be obtained which can be entered into the consumption component of GNP. Data on Soviet capital expenditures for health and education in 1950 are unavailable. Scattered data are available, however, for 1953, 1955, and 1956 which provide a basis for 1950 estimates.- On the basis of these data, it is estimated that about 2 billion rubles was allo- cated for capital expenditures in 1950, an amount divided equally be- tween health and education. The estimate of 2 billion rubles is based on the following data: * Average of expenditures for veterans education (Public Law 346) for the fiscal years 1950 and 1951. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 a. The 1955 plan for school construction by the Ministry of Urban-Rural Construction called for expenditures of 363 million ru- bles. 47/1 Expenditures by other ministries probably raised these ex- penditures to a total-of about 500 million rubles for 1955. b. Capital expenditures by the union-republic ministries of health in 1953 were 448 million rubles. L8 c. Total capital repair expenditures for 1956 for schools, hospitals, and social-cultural institutions were plannedat approxi- mately 2.3 billion rubles. The wage bill for medical personnel in 1950 was obtained by mul- tiplying the total number of workers employed in public health in 1950 -- 2,051,000 50 -- by an estimated average wage of 5,770 rubles. The wage bill for education personnel in 1950 was obtained by multiplying the total-number of workers employed in education -- 3,752,000 51 -- by an estimated average wage of 8,000 rubles. 6. Derivation of the Average Wage for US Government Employees in 1950. Employment Category Number of Employees 52 Average Wage 53 (US $) Total Wages (Million US $) Federal, civil 1,436,000 3,50+ 5,031.7 Federal, government enterprises 516,000 3,512 1,812.2 State and local, non- -school 1,948,000 2,725 5,308.3 State and local, government enterprises 238,000 3,227 768.0 Total or average 4,138;000 3,122 12,920.2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 RUBLE-DOLLAR RATIOS, BY BRANCH OF INDUSTRY 1. Introduction. This appendix contains the specifications, prices, and price ratios for the commodities and services compared in the text of this research aid. In general, the data appearing in this appendix represent either 25X1A5a1 extensions or revisions of the ratios in the two major studies pre- viously conducted In order that the maximum 25X1A5a1 usefulness of these data may be achieved, they should be used in con- junction with 25X1A5a1 25X1A5a1 25X1A5a1 Revisions are reflected primarily in the substi- tution of items believed to be more comparable or representative of both economies. Some differences in ratios are attributable to the fact that CIA ratios were established, in general, on the basis of 1 July 1950 prices rather than 1 January 1950 prices. It is generally the case, however, that most 1 January 1950 prices prevailed on 1 July 1950 also. Table 12* gives the standard industrial classification of selected commodities and services, by SIC'' numbers, and indicates the sources of the ratios used in the computation of the weighted ratios summarized in Table 13.** Table 13 summarizes the number of ratios the range of ratios, and the weighted ratios made available by research.**** 25X1A5a1 Table 13 follows on p. 40. Text continued on p.,44. Table 12 follows on p. 34. Standard industrial classification. S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T 25X1 A5a 1 Table 12 Key to Research in the Ruble-Dollar Ratio of Selected Commodities and Services, by SIC a/ Number Solid Fuels 1111, 1211, 1212 CIA. J Comparability was established on the basis of heating values. 2241, 2291, 2298 2411, 2421, 2431, 2432, 2491 2612, 2641 2812 2819 2821 2826 Textile Mill Products 25X1A5a1 Lumber and Wood Products 25X1A5a1 Paper and Allied Products 25X1A5a1 CIA. With one exception, ratios did not differ significantly from 25X1 A5a 1 CIA. In a number of cases prices were substituted which are believed to be more comparable than 25X1A5a1 CIA. Ratios are virtually identical with those shown in -- one ratio added. 25X1A5a1 CIA. Ratios are virtually identical with those shown in 25X1A5a1 a. Standard industrial classification. b. All items attributed to CIA are found in Tables 13 through 40 of this research aid. -. 34 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S -E-C -R-E-T 25X1 A5a 1 Table 12 Key to Research in. the Ruble-Dollar Ratio of Selected Commodities and Services, by SIC Number (Continued) 2829 2851, 2852, 2861, 2862, 2881, 2882, 2884, 2894, 2896 2911 CIA. Ratios do not differ significantly from those shown in, -- six new ratios added. 25X1A5a1 25X1A5a1 Petroleum Refining CIA. Prices for 1 July 1950 were used and Soviet transportation charges were removed from the price before computing the ruble-dollar ratio. Additional items are included. Construction Materials 1441, 1477 25X1A5a1 2952 CIA. The data were added by CIA. 3211, 3241, 325.1 CIA. 1 July 1950 prices. 3253, 3254, 3272, 3274 25X1A5a1 3292 CIA. The data were added by CIA. Abrasive Products CIA. The data were added by CIA. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 25X1A5a1 Key to Research in the Ruble-Dollar Ratio of Selected Commodities and Services, by SIC Number (Continued) SIC No. Industrial Classification 3311, 3312, 331-3, 3321, 3323, 3391 3322 3331, 3332, 3333, 3334, 3335, 3339, 3351, 3352, 3359, 3392 3443 3481, 3489, 3494 Iron and Steel25X1A5a1 Ratios appearing in this appendix represent primarily a selected number of ratios from which were believed 25X1A5a1 to be representative of the iron and steel in- dustry. This sample was selected in order to facilitate the computation of a set of weighted ratios for a four-digit industrial classifica- tion based on Soviet value weights. CIA. The data were added by CIA. Nonferrous Metals 25X1A5a1 With the exception of the Soviet price for cobalt, and the addition of magnesium, data appearing in this appendix was taken from Selected items are 25X1A5a1 duplicated in this appendix to facilitate weighting and for the convenience of the reader. Fabricated Structural Metal Products 25X1 A5a1 Other Fabricated Metal Products 25X1 A5a 1 Transportation, Construction, and Mining Machinery 3521, 3711 CIA. 1950 prices. ~ 25X1A5a1 - 36 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 25X1A5a1 Table 12 Key to Research in the Ruble-Dollar Ratio of Selected Commodities and Services, by SIC Number (Continued) Industrial Classification Metalworking Machinery 3541, 3542 CIA. 1 July 1950 prices. 3543 25X1A5a1 Other Machinery (Except Electrical) 3552 CIA. The data were added by CIA. 3519, 3553, 3554, 3559, 3561, 3563, 3564, 3567, 3585, 3591, 3593 3511 3613, 3614, 3615, 3616, 3641 3631 3651, 3661 3662 25X1A5a1 Electrical Machinery and Equipment CIA. The data were added by CIA. 25X1A5a1 CIA. The data were expanded by CIA. CIA. The data were added by CIA. CIA. Data appearing in this a endix re re- sent 1949 price data from were 25X1A5a1 adjusted to 1950 prices b using the price index shown in and include only those prices for tubes which were being pro- duced in 1950. 25X1A5a1 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 25X1A5a1 Table 12 Key to Research in the Ruble-Dollar Ratio of Selected Commodities and Services, by SIC Number (Continued) SIC No. Industrial Classification Other Transportation Equipment 3741, 3742, 3751 25X1A5a1 -Professional and Scientific Equipment 3811, 3821 25X1A5a1 Communications Services 4811, 4821, 4899 CIA. The-data were added by CIA. Electric Light and Power 4911 CIA. Ratios were computed on the basis of aver- age rates by type of consumer. Rail Freight Transport 25X1A5a1 computed ratios based on rates for mileage blocks and CIA computed ratios based on rates for average lengths of haul. Construction CIA. Highway and Housing. 1611, 1621, 1711, 1721, 1741, 1751, 1752, 1761, 1771, 1791, 1794 _ 25X1A5a1 -38- S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 25X1A5a1 Table 12 Key to Research in the Ruble-Dollar Ratio of Selected Commodities and Services, by SIC Number (Continued) Rubber Products, Plumbing and Heating Supplies, and Scrap and Miscellaneous Industries 25X1A5a1 - 39 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 A Summary of 1950 Ruble-Dollar Ratios by Industrial Classification Weighted Ratio Effective Date of Price 1950 No. of Highest Ratio lowest Ratio US Mix Soviet Mix Source Ratios (Rubles per Dollar) (Rubles per Dollar) (Rubles per Dollar) (Rubles per Dollar) of Ratio Ruble Dollar 1111 Anthracite coal 1 12.2 12.2 12.2 12.2 CIA 1 January Average 1211 Bituminous coal 1 21.6 21.6 21.6 21.6 CIA . 1 January Average 1212 Lignite 1 23.5 23.5 23.5 23.5 CIA 1 January Average 1441 Sand and gravel 3 22.8 January First quarter 2241 Narrow fabric mills 13 6.7 3.1 4.1 a * a 3.9 J 1 January First quarter 2291 Felt goods, n.e.c. 5 17.0 6.7 11.2 1 January First quarter 2298 Cordage and twine .58 34.6 14.8 19.1 1 January First quarter 2411 Logging 13 23.0 9.4 12.8 a/ 11.9 J 1 January First quarter 2421 Sawmills and planing mills 69 15.4 3.4 7.6 1 January First quarter 2431 Millwork plants 5 6.5 4.3 5.2 2 5X 1 A5a 1 1 January First quarter 2432 Plywood plants 2 5.2 2.4 3.8 1 January First quarter 2612 Paper and board mills 5 15.4 8.8 12.5 1 January First quarter 2641 Paper coating and glazing 1 15.9 15.9 15.9 1 January First quarter 2812 Alkalies and chlorine 6 29.1 6.4 18.6 18.1 CIA 1 January 1 January 2819 Industrial inorganic chemicals, n.e.c. 40 123.6 5.0 18.7 CIA 1 January 1 January 2821 Cyclic (coal tar) crudes 5 27.6 11.9 20.2 19.0 CIA 1 January 1 January 2826 Explosives 2 21.3 7.1 18.4 CIA 1 January 1 January 2829 Industrial organic chemicals, n.e.c. J 11 114.5 2.4 43.7 CIA 1 January 1 January 2851 Paints and varnishes 11 17.1 3.4 8.6 1 January First quarter 2852 Inorganic color pigments - 18 48.2 7.1 21.1 2 5X 1 A5a 1 1 January First quarter 2862 Softwood distillation 7 37.5 30.7 34.9 1 January First quarter 2894 Glue and gelatin 6 14.8 13.0 14.1 1 January First quarter 2896 Compressed and liquefied gases 4 15.2 1.2 7.7 1 January First quarter 2911 Petroleum refining 33 26.3 9.2 18.0 17.9 CIA 1 July 1 July 2952 Roofing felts and coatings 2 5.5 5.5 5.5. 5.5 CIA i,July 1 July 3211 Flat glass 1 8.4 8.4 8.4 8.4 CIA 1 July 1 July 3241 Cement, hydraulic 1 10.6 10.6 10.6 - 10.6 CIA 1 July 1 July 3251 Brick and hollow tile 1 6.2 6.2 6.2 6.2 CIA 1 July 1 July S-E-C-R-E-T Approved For Release 1999/091,08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09108 : CIA-RDP79S01046A000500040001'-2 Table 13 3253 Floor and wall tile 3254 Sewer pipe 3272 Gypsum products 3274 Lime 3291 Abrasives products 3292 Asbestos products 3311 Blast furnaces 3312 Steel works and rolling mills 3313 Electrometallurgical products A Summary of 1950 Ruble-Dollar Ratios by Industrial Classification (Continued) No. of Highest Ratio Lowest Ratio US Mix Soviet Mix Source Ratios (Rubles per Dollar) (Rubles per Dollar) (Rubles per Dollar) (Rubles per Dollar) of Ratio Ruble 2 3.2 6 17.3 4 19.1 27 7.3 85 6.4 1 4.1 7 12.9 30 43.0 14 24.1 3 9.0 3321 Gray-iron foundries 1 11.6 3322 Malleable-iron foundries 3323 Steel foundries 1 10.6 3331 Primary smelting and refining of copper 1 16.2 3332 Primary smelting and refining of lead 1 14.0 3333 Primary smelting and refining of zinc 2 13.4 3334 Primary refining of aluminum 1 17.7 3335 Primary refining of magnesium 1 34.0 3339 Primary refining and smelting of nonferrous metals, n.e.c. b/ 6 103.4 3351 Rolling, drawing, and alloying of copper 68 20.1 3352 Rolling, drawing, and alloying of aluminum 8 21.8 3359 Rolling, drawing, and alloying of nonferrous metals, n.e.c. L/ 2 15.5 3391 Iron and steel forgings 2 16.2 3392 Wire drawing 4 14.9 3443 Boiler shop products 5 12.4 3481 Nails and spikes 13 10.2 3489 Wirework, n.e.c. 1 17 21.4 2.7 13.7 10.4 3.3 1.3 4.1 7.7 6.1 6.7 6.0 11.6 3.0 a/ 15.71 15.2 4'5 2.5 a/ 4.1 9.0 13.1 8.3 11.6 13.0 7.3 11.6 13.0 10.6 10.6 10.6 16.2 16.2 16.2 14.0 14.0 325X1A5a1l4.D 11.8 12.6 a 12.6 J 17.7 17.7 17.7 34.0 34.0 34.0 32.6 6o.o 9.3 13.8 14.5 16.3 14.4 15.0 a/ 14.9 a/ 12.7 13.6 12.8 14.2 a/ 14.i a/ 6.8 9.8 6.9 8.5 a/ 8.3 a/ 2.5 6.8 1 January 1 January 1 January 1 January CIA 1 January CIA 1 January 1 January 1 January 1 January 1 January CIA 1 January CIA 1 January CIA 1 January 1 January 1 January 1 January 1 January 1 January 1 January 1 January 1 January 1 January 1 January 1 January First quarter First quarter First quarter First quarter Average 1 July First quarter First quarter First quarter First quarter Firstquarter First quarter First quarter First quarter First quarter First quarter First quarter First quarter 1 January 1 January 1 January First quarter First quarter First quarter First quarter First quarter First quarter First quarter First quarter First quarter 25X1A5a1 - 111 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040601-2 2.9 a 15.6_a 2 1 A5a1 4.3 aJ 2.4W 4.1 25X1A5a1 8:8 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T - Table 13 A Summary of 1950 Ruble-Dollar Ratios by Industrial Classification (Continued) Weighted Ratio Effective Data of Price 1950 No. of Ratios Highest Ratio (Rubles per Dollar) Lowest Ratio (Rubles per Dollar) US Mix (Rubles per Dollar) Soviet Mix (Rubles per Dollar) Source of Ratio Ruble Dollar g / JX1A5a 1 ~ 3494 Bolts, nuts, washers, and rivets 30 9.7 4.3 - 5.8 -a 1 January First r 3511 Turbines 10 5.0 0.9 3.0 CIA 1 January Average 3521 Tractors 3 9.7 6.0 CIA 1 January 1 January 3531 Construction, mining and similar machinery (except oilfield machinery and tools) 27 11.0 1.4 5.0 4 25X1A5a1 3541 Machine tools 22 9.3 1.5 .5 CIA 1 July 1 July 4 t machine tools) machiner (exce ki M t l 8 16.9 3.4 6.8 CIA 1 July 1 July 2 35 3543 y p ng e a wor Cutting tools, jigs, and fixtures 24 10.7 0.7 3.5 25X1A5a1 WE 1 January J First quarter 1 J 3552 Textile machinery 16 17.9 2.2 7.9 anuary 1 anuary 3553 Woodworking machinery 7 7.9 1.9 5.5 1 January First quarter 4 -industries machinery e Pa 9 35.8 4.2 8.9 1 January First quarter 355 3559 p r Special-industry machinery, n.e.c. 1 23 20.5 2.2 8.0 25X1A5a1 1 January First quarter 3561 Pumps, air and gas compressors, and pumping equipment 5 9.8 3.5 6.5 1 January First quarter 3563 Conveyors 3 4.1 2.4 3.1 1 1 January First quarter 3564 Blowers and fans 1 8.8 8.8 8.8 8.8 1 January First quarter 3567 Industrial furnaces and ovens 1 8.1 8.1 8.1 8.1 1 January First quarter 3585 equipment Refrigeration 2 12.4 1o.4 11.4 J 11.3 J 1 January First quarter 3591 , Valves and fittings (except plumbers) 19 11.0 3.0 6.5 1 January First quarter 3593 Ball and roller bearings 26 6.4 2.5 3.7 1 January First quarter 3613 Electrical measuring instruments 18 27.8 2.2 12.4 1 January First quarter 3614 Motors and generators 79 10.9 2.4 5.0 1 January First quarter . 3615 Power and distribution transformers 8 7.6 3.7 5.1 1 January First quarter 3616 Switchgear, switchboard, apparatus, and industrial CCI1LrV1D 11.0 1.7 5.9 J 6 4.1 a. 1 January First quarter 3631 Insulated wire 38 14.1 3.0 6.2 a 5.0 aW 1 January Average 3641 Electrical equipment for motor vehicles, aircraft, and railroad locomotives and cars 19 74.7 12.4 26.9 J 19.9 a _ 1 January First quarter 10.9 5.4 a CIA 1 January First quarter 25X1A5a1 Approved For Release 1999/091.08 : CIA-RDP79S01046A000500040001,-2 Approved For Release 1999/09108 : CIA-RDP79SO1046A000500040001-2 3661 Radios, radio and television equipment (except radio tubes), radar and related detection apparatus 3662 Radio tubes 3711 Motor vehicles (trucks only) 3741 Locomotives and parts 3811 Scientific instruments 3821 Mechanical measuring instruments 4811 Telephone communication (wire and radio), '4821 Telegraph communication (wire and radio) 4899 Communications services, n.e.c. b 4911 Electric light and power -- Rail freight transportation other Ratios 12 Rubber products 17 Plumbing and heating supplies a. Simple average. b. Not elsewhere counted. c. 1951 average prices used for the US. Table 13 A Summary of 1950 Ruble-Dollar Ratios, by Industrial Classification (Continued) 1 January Average 1 January First quarter i July 1 July 1 January First quarter 1 January First quarter 1 January First quarter 1 January Average 1 January Average 1 January Average 1 January Average 1 January 2/ Ratios (Rubles per Dollar) (Rubles per Dollar) (Rubles per Dollar) (Rubles per Dollar) of Ratio Ruble Dollar 25X1A5a1 5 17.4 22 19.1 2 8.6 4 4.9 5 8.7 4 15.2 3 6.2 1 5.1 2 25.0 2 15.4 29 6.2 25.8 8.8 10.0 13.2 a/ 12.6 J 7.5 14.1 a/ 13.2 J 6.o 7.0 3.6 4.o a/ 4.o f 3.9 6.7 J 6.2 / 3.6 9.0 4.5 5.2 4.8 5.1 5.1 5.1 13.3 14.0 14.2 14.4 14.8 15.1 2.3 4.2 4.1 3.7 25X1A5a1 - 43 CIA CIA CIA CIA CIA CIA CIA 25X1A5a1 25X1A5a1 N.A. N.A. N.A. N.A. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 2. Solid Fuels. Soviet coal prices are list wholesale prices f.o.b. mine for 1950, with corresponding ash norms. Available information indicates that actual average ash content isalmost identical with aver-age ash norms. US coal prices are average value per ton f.o.b. mine for 1950. An average price per energy unit (kilocalories) for both the US and the USSR has been used in computing the ruble-dollar ratios for coals. For the USSR the price per energy unit for anthracite coal, bituminous coal, and lignite has been derived by weighting prices 24/ and heating values 55 by physical production 6 for all coal- producing areas to arrive at a weightedaverage price and weighted average heating value. The weighted average price was then divided by the weighted average heating value (kilocalories per kilogram) to get an average price per energy unit (kilocalories). For the US, average prices and average heating values 57 for anthracite coal, bituminous coal, and lignite developed by the Bureau of Mines were utilized.* It is probable that the price per energy unit is a more reason- able basis for comparing coal prices in the US and the USSR than the comparative prices of similar coals, mines, or producing areas in the two -count.ri-es, because comparisons on the latter basis fail to take into account significant differences in heat content between coals of the two countries. The lack of production data on washed coal in the USSR made it impossible to adjust average prices for cleaning. Although about one- fifth of total coal in the USSR was washed in 1950, it is believed that the over-all effect of this would be rather small. Ruble-dollar ratios-have not been computed for peat and coke. The average 1950 price for peat in the USSR was 49.7 rubles per metric ton, and production is estimated at 36 million 60 metric tons. There is no corresponding price for US peat as a fuel. The price of US coke at ovens in 1950 was $14.80 per metric ton, and production was 65,969,371 metric tons. / There are no available price data on Soviet coke.. US prices for bituminous coal and lignite are from source 58 and foranthracite coal from source 59/- . 44 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08,: CIA-RDP79SO1046A000500040001-2 An aggregate ruble-dollar ratio for solid fuels was computed by weighting individual ratios for anthracite coal, bituminous coal, and - lignite by their corresponding'gross value. Gross values were com- puted on an energy unit basis by converting physical production for the US / and the USSR to energy units and multiplying by the average price per energy unit. Table 14* gives specifications, prices, and price ratios of solid fuels in the USSR and the.US. Table 15** gives weighted price ratios of fuels in the USSR and the US. 3. Chemicals. The comparability of the chemical products considered in this sec- tion is based primarily upon standards published in the USSR which state the analysis, percent purity, and the amounts and types of im- purity permitted for a given grade of a specific product. Where de- tailed specifications are not available, comparability is based on methods of manufacture and comparable industrial use. Ruble and dollar prices were those in effect on 1 January 1950. There is no available information that indicates price reductions for chemicals in the USSR on 1 July 1950. On account of the scarcity of data relating to the chemical in- dustry in the USSR, it has not been possible to compute value weights for all four-digit categories. Soviet value weights have been esti- mated for categories 2812 (Alkalies and chlorine) and 2821 (Cyclic crudes) and for certain of the more important commodities of 2819 (Industrial inorganic chemicals, n.e.c.). Table 16*** gives specifications, prices, and price ratios of chemicals in the USSR and the US. Two sets of weighted ruble-dollar ratios have been computed with US weights -- one based on value weights for all commodities listed in Table 17;* the other, based on value weights for commodities only where corresponding Soviet value weights were available. Value of shipments data for 1947 have been used for US weights unless otherwise noted. 63 Table-14-follows on p. 46. Table 15 follows on p. 46. Table 16 follows on P. 47. Table 17 follows on p. 50. Text continued on p. 53. - 45 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Specifications, Prices, and Price Ratios of Solid Fuels in the USSR and the US 1111 Anthracite coal Comparability established on the basis of heating values L211 Bituminous coal Comparability established on the basis of heating values 1212 Lignite Comparability established on the basis of heating values Rubles per Dollars per Ratio US Million Kilocalories Million Kilocalories (Ruble-Dollar) Comparability established on the basis of heating values 17.541 1.443 12.2 Comparability established on the basis of heating values 15.888 0.735 21.6 Comparability established on the basis of heating values 15.986 0.681 23.5 Weighted Price Ratios of Solid Fuels in the USSR and the US Value Weights Weighted Price Ratio Price Ratio SIC No. Item (Rubles per Dollar) 1111 Anthracite coal 12.2 1211 Bituminous coal 21.6 1212 Lignite 23.5 2,906.1 22,663.3 20.3 408.7 1,805.0 2,489.3 13,716.8 8.1 4,141.5 - 4'6 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Us USSR US Mix Soviet Mix (Million US $) (Million Rubles) (Rubles per Dollar) (Rubles per Dollar) Approved For Release 1999/09108 : CIA-RDP79SO1046A000500040001-2 w Table 16 Specifications, Prices, and Price Ratios of Chemicals in the USSR and the US Specifications J * Price SIC No. Item USSR US Rubles per ~/ Metric Ton J Dollars per Metric Ton J Ratio (Ruble-Dollar) 2812 Alkalies and chlorine Chlorine 99.5% CL2 338 52.92 6.4 Potassium hydroxide 92% KOH Solid, 88% to 92% 1,725 166.48 10.4 Sodium bicarbonate 98% NaHCO3 USP, powdered 565 43.00 13.1 Soda ash Dense 380 24.26 15.7 Caustic soda Liquid Liquid 1,480 52.92 28.0 Caustic soda Cake 95% NaOH Cake 98%, NaOH 1,955 67.25 29.1 2819 Industrial inorganic chemicals, n.e.c. i Boric acid Grade I, 99.5% H3B03 Crystals, technical 6,075 127.01 47.8 Nitric acid, weak Grade B, 60% HN03 58.5% to 68% HN03 240 48.23 e/ 5.0 Nitric acid, concentrated Grade II, 96% HN03 94.5% to 95% HN03 650 95.09 f 6.8 Ammonium sulfate Synthetic, fertilizer, Grade I 450 52.35 8.6 Ammonium nitrate Grade C, 99.2% NH4N03 554 63.92 8.7 Sodium bichromate Grade I 2,350 226.01 10.4 Sodium sulfate (salt cake) Grade I 254 L1 24.24 10.5 Calcium carbide Grade I Standard generator size 1,464 / 133.34 11.0 Hydrochloric acid Synthetic, technical, 32% 250 22.04 11.3 Sulfuric acid 75% 78% 188 15.15 12.4 Sulfuric acid 92.5% 93% 268 18.73 14.3 Sulfuric acid Fuming, 20% Fuming, 20% 344 20.94 16.4 Magnesium oxide Grade I, 89% MgO Synthetic rubber grade 8,250 661.50 12.5 Sodium silicofluoride Grade I, 95% Na2SiF6 1,125 88.20 12.8 Aluminum chloride 95% A1C13 3,210 248.06 12.9 Zinc sulfate Crystals, 22% Zn 1,400 100.33 14.0 Synthetic ammonia, anhydrous Grade B, 99% NH3 Fertilizer grade 1,160 82.10 14.1 * Footnotes for Table 16 follow on P. - 47 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E -C -R -E -T Table 16 Specifications, Prices, and Price Ratios of Chemicals in the USSR and the US (Continued) Specifications Price Us Rubles per Metric Ton , Dollars per" Metric Ton Ratio Ruble-Dollar Yellow phosphorus 99.5% free phosphorus 8,250 573.30 14.4 Red phosphorus 98.70 red phosphorus Amorphous 16,350 760.73 21.5 Copper' sulfate 98.2% CuSO4. 5420 Crystals, 99% 2,380 157.11 15.1 Aqueous ammonia Synthetic, technical, 25% 25% 350 22.18 1 15.8 Sodium sulfide Fused, technical, Grade I Fused 1,425 88.20 16.2 Trisodium phosphate P04. 12420 95% Na Crystals 1,490 82.69 18.0 Ammonium chloride A Grade White, granulated 1,950 101.43 19.2 Aluminum sulfate Grade A, 13.5% A1203 Commercial 675 33.08 20.4 Potassium chlorate Crystals 4,000 187.43 21.3 Barium chloride Grade A, 95% BaC12.2H20 Technical 2,210 99.18 22.3 Hydrogen peroxide 27.5% to 31% H202 35% 10,850 435.49 24.9 Sodium hydrosulfite Grade I 12,225 463.05 26.4 Iodine Technical, 97% 101,850 3,572.10 28.5 Sulfur dioxide 2,850 99.23 28.7 Bromine 51% Br2 7,125 235.94 30.2 Hydrofluoric acid 4o% HF 7,000 220.50 31.7 J Sodium phosphate dibasic 96% Na2HPO4. 12 H2O Crystals 3,000 76.62 39.2 Phosphoric acid Calcium chloride 65% H3P04, food grade 34% liquid 75%, food grade 40% 3,900 450 99.23 9.92 39. 4 Calcium chloride 67% fused 73% to 75% solid 1,200 22.04 54.4 Calcium chloride 88% dehydrated 77% to 80% flake 2,625 24.24 108.3 Borax 50.2% Na2B407 Granular, decahydrate 4,800 38.85 123.6 Calcium arsenate 4,875 209.48 23.3 Naphthalene Crude, Grade 4 1,440 115.76 12.4 Benzene Refined 1,440 66.72 21.6 Xylene 1,890 78.53 24.1 Toluene 1,980 71.86 27.6 Phenol 2,880 242.55 11.9 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001?2 Approved For Release 1999/09108 : CIA-RDP79SO1046A00050004000'f -2 ? S-E-C-R-E-T Table 16 Specifications, Prices, and Price Ratios of Chemicals in the USSR and the US (Continued) Rubles per s per / Ratio SIC No. Item USSR US Metric Ton Metric 9 Metric Ton J (Ruble-Dollar) 2826 Explosives Ammonite powder 8 and AP-1 Permissible types 91 Permissible types 2,300 k 325.24 J 7.1 Dynamite 62% 60% 6,800 J 319.73 J 21.3 2829 Industrial organic chemicals, n.e.c. J Ethylene dichloride 97% C2R4Cl2 425 176.40 2.4 Carbon tetrachloride 96% CC14 3,265 176.40 18.5 Acetic acid Technical, purified, 80% Commercial, 80% 3,910 207.27 18.9 Methanol Synthetic, Grade I Synthetic 2,175 87.00 25.0 Formaldehyde Technical, 40% 2,200 81.59 27.0 Acetone Synthetic, Grade I 6,000 J 165.38 36.3 Butyl acetate 14,200 264.60 53.7 Ethyl acetate 12,900 203.96 63.2 Butyl alcohol 18,100 p/ 264.60 68.4 Acetic anhydride 24,000 253.58 94.6 Ethyl alcohol 88.20/decal- iter qJ .77/decaliter 114.5 a. When detailed specifications are omitted, comparability is based on methods of manufacture, comparable specifications, and comparable indus- trial use. b. Unless otherwise noted, Soviet prices are taken from source 64 . c. Unless otherwise noted, US prices are taken from source J. d. Not elsewhere counted. e. Estimated on the basis of the price for 40? acid as of February 1950 and the price relationship of that type to those types listed as of Adjusted to 100% basis. Adjusted on the basis of acetylene yield. Price quoted at $80 to $81, anhydrous basis. Estimated on the basis of prices for 30%, 70%, According to a Soviet periodical, that type is El/ Price n. 68/ o. and anhydrous grades. used for blasting in gaseous and dusty coal mines. p. Price probably reflects turnover tax. Available evidence indicates that raw materials used for alcohol production (grain, molasses, potatoes) are subject to a turnover tax. The magnitude of the tax is not known. Price taken from source 0 q. Probably reflects turnover tax. See footnote pf. 49 S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Weighted Price Ratios of Chemicals in the USSR and the US SIC No. Item Price Ratio (Rubles per Dollar) US (Million US $) USSR (Million Rubles) 2812 Alkalies and chlorine Chlorine 6.4 31.2 63.2 Potassium hydroxide 10.4 6.8 39.6 Sodium bicarbonate 13.1 5.4 31.0 Soda ash 15.7 57.6 290.3 Caustic soda, liquid 28.0 55.8 560.1 Caustic soda, cake 29.1 10.2 2819 Industrial inorganic chemicals, n.e.c. J Boric acid 47.8 3.3 Nitric acid 5.9 J 4.7 414.o Ammonium sulfate (synthetic) 8.6 9.1 56.6 Ammonium nitrate (fertilizer grade) 8.7 45.2 912.6 Sodium bichromate 10.4 11.3 Sodium sulfate (salt cake) 10.5 10.7 Calcium carbide 11.0 29.7 e/ 268.0 Hydrochloric acid 11.3 9.4 Sulfuric acid, chamber 12.4 21.4 Sulfuric acid, contact 14.3 6o.3 Sulfuric acid, fuming 16.4 7.5 Magnesium oxide 12.5 7.0 gf Sodium silicofluoride 12.8 1.9 Aluminum chloride i2.9 2.2 Zinc sulfate 14.0 1.3 Synthetic ammonia, anhydrous 14.1 23.6 Synthetic ammonia, aqueous 15.8 1.5 Phosphorus 18.0 / 13.6 Copper sulfate 15.1 9.6 Sodium sulfide 16.2 3.4 * Footnotes for Table 17 follow on p. 52. S-E-C-R-E-T US Mix (Rubles per Dollar) Soviet Mix (Rubles per Dollar) 4 Approved For Release 19.99/09108 : CIA-RDP79SO1046A000500040001-2 Approved For Release 19J9/09108 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Table 17 Weighted Price Ratios of Chemicals in the USSR and the US (Continued) Price Ratio US USSR US Mix Soviet Mix SIC No. Item (Rubles per Dollar) (Million US..$) (Million Rubles) (Rubles per Dollar) (Rubles per Dollar) 2819 (Cont'd) Ammonium chloride Trisodium phosphate Aluminum sulfate Potassium chlorate Barium chloride Calcium arsenate Hydrogen peroxide Sodium hydrosulfite Iodine Sulfur dioxide Bromine Hydrofluoric acid Sodium phosphate, dibasic Phosphoric acid Calcium chloride,, liquid Calcium chloride, solid Calcium chloride, flake Borax (sodium borate) 2821 Cyclic (coal tar) crudes 1 19.2 3.7 18.0 11.9 20.4 13.8 21.3 2.2 22.3 1.3 93.6 23.3 1.9 34.1 24.9 6.9 26.4 7.4 28.5 1.1 30.6 28.7 2.3 30.2 0.2 31.7 4.2 39.2 3.0 39.3 5.8 45.4 0.4 54.4 0.2 108.3 4.9 123.6 7.3 45.6 667.4 1/ 20.2 aJ Naphthalene 12.4 9.7 102.2 Benzene 21.6 24.8 319.1 Xylene 24.1 2.0 34.8 Tuolene 27.6 6.9 150.5 Phenol 11.9 2.2 / 6o.8 2826 Explosives 83.3 18.4 aJ Permissible explosives 7.1 17.0 High explosives other than permissible 21.3 66.3 - 51 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Weighted Price Ratios of Chemicals in the USSR and the US (Continued) SIC No. Item (Rubles per Dollar) Industrial organic chemicals, n.e.c. c/ J Ethylene dichloride 2.4 Carbon tetrachloride 18.5 Acetic acid 18.9 Methanol 25.0 Formaldehyde 27.0 Acetone 36.3 Butyl acetate 53.7 Ethyl acetate 63.2 Acetic anhydride 94.6 a. b. C. e. f. g. h. i. j. k. 1. M. n. (Million US $) (Million Rubles) 4.2 n/ 8.3 13.8 12.7 13.9 21.0 20.0 10.9 18.5 J Based on values for all commodities. Based on values for commodities where a corresponding Soviet value appears. Not elsewhere counted. Average of ratios for weak and concentrated acid. Value of shipments for "other calcium compounds," the major part of which is calcium carbide. Ratio for tower acid. Value of shipments-for "magnesium compounds." Average of ratios for yellow and red phosphorus. 1947 US values for entire 2821 category from Li/. Includes small amount from petroleum sources. Includes natural phenol from petroleum. 1947 US values for entire 2826 category from source 1947 US values for entire 2829 category from source (Rubles per Dollar) (Rubles per Dollar) 43.7 J Approved For Release 1999/09/,08 : CIA-RDP79S01046A000500040001 2 $1 .1 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 4. Petroleum Products. Detailed specifications for petroleum products are lacking. It is, therefore, difficult to make exact comparisons of US and Soviet petroleum products. Often it has been necessary to make rough ap- proximations in selecting the US product most comparable to a given Soviet product. For example, prices are given for "automotive gaso- line," whereas there are a number of grades of automotive gasolines in both countries. In the case of "motor oil M and T," comparability with a US product can be only approximate, as viscosity data are not given.. A US grade believed to be most representative of Soviet out- put was therefore selected for comparison. With the exception of the "petroleum asphalt and semiasphalt" category, prices for US petroleum products are average June 1950 prices. / Available Soviet prices are wholesale release prices effective on 1 July 1950. 75 These prices are known to include transportation charges and turnover tax. On the basis of an analysis of available information, Soviet transportation charges have been removed from the prices before computing ruble-dollar ratios in the manner described below. An examination of Soviet prices shows that for a number of mis- cellaneous petroleum products such as transmission grease, condenser oil, and petrolatum, the Russians have one fixed price. For more important products, however, the country is divided into price tones. Comparison of zonal prices with the areal composition of the zones as given in the price handbook indicates that for each of different groups of products, Baku (the largest petroleum-refining center in the USSR) is located in the zone having the lowest price. The price zones generally appear as broad bands radiating from the Baku price zone, with prices increasing as the zone distances from Baku increase. The areal composition of the zones and the size of the respective price increments suggest that those increments derive either entirely or in part from increasing transportation charges. In computing f.o.b. refinery prices for all products, it has been assumed that the differences in zonal price increments are due entirely to transporta- tion charges. Since transportation charges are included in all prices, it is clear that for each product some price below the lowest zonal - 53 - Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 price must be derived in order to more closely-approximate-an f.o.b. refinery price. For each petroleum product, there has been deducted a sum equal to the ruble increment from the lowest zone to the next higher zonal price. The resulting price is assumed to be the f.o.b. refinery price, inclusive of turnover tax. On account of the absence of official Soviet gross value data for petroleum products, production and consumption estimates have been used in estimating value weights. US value weights have been computed by multiplying physical pro- duction 76 by the price used in computing the ruble-dollar ratio. Then production data were available only for broad categories or groups of products, the corresponding-prices have been averaged for the computation of value weights. Table 18* gives specifications, prices, and price ratios of petroleum products in the USSR and the US. Table 19** gives weighted price ratios of petroleum products in the USSR and the US. 5. Construction Materials. Ruble-dollar ratios were computed for five construction materials, basic to both the US and Soviet construction industries. These mate- rials are asbestos cement shingles (for siding), brick, cement, flat" glass, and roofing felt. Comparability of most of the products in this category, particularly glass and cement, is believed to be very good. Bricks are comparable, with the exception that Soviet stand- ard sizes are larger than US standard sizes. Ruble and dollar prices used in computing the-ruble-dollar ratios were those in effect as of 1 July 1950 with the exception of some 1 January 1950 prices which have been adjusted to a 1 July 1950 basis. Prices of some of the materials in this section are quoted on the basis of specific sales zones within the USSR. (This system probably reflects different costs in production and transportationwithin the USSR). As no Soviet data were available on which to choose prices for comparative conditions in the US, the prices in each country were arranged in their order of magnitude. The highest Soviet price was compared with the highest US price, and so on through the series tom Table-17-follows on p. 55? Table 19 follows on p. 58. * Text continued on p. 60.. -54 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001'-2 Table 18 Specifications, Prices, and Price Ratios of Petroleum Products in the USSR and the US' SIC No. Item USSR US 2911 Petroleum refining Aviation gasoline B-100 and above B-78 B-74 B-70 Motor gasoline Auto gasoline (etlxylated) Special gasoline for ZIS-110 White spirit Gas oil (diesel fuel) Diesel fuel Solar oil Motor fuel Machine oil S Machine oil L Machine oil SU Diesel oil Turbine oil L and UP Compressor oil M Compressor oil T 100/130 Gulf Coast cargoes 91/96 Gulf Coast cargoes Average of 91/96 and 80 octane, Houston Average of 91/96 and 80 octane, Houston Regular 80 octane, Oklahoma, Group 3 Regular 82 octane, Oklahoma, Group 3 Mineral spirits, f.o.b. Group 3 Average 43-47 and 48-52 diesel index gas oil, Gulf Coast cargoes Light diesel. Ships bunkers (45 cetane 45 diesel index) (ex lighterage), Houston Heavy diesel. Ships bunkers (ex lighterage), Houston Pale Neutral Oils Conventional Vis @ 100?F, 0-10 Pour Point. 180 Vis. No. 3 color, f.o.b. Tulsa 150'Vis. No. 3 color, f.o.b. Tulsa 200 Vis. No. 3 color, f.o.b. Tulsa 200 Vis. No. 3 color, f.o.b. Tulsa 250 Vis. No. 3 color, f.o.b. Tulsa 300 Vis. No. 3 color, f.o.b. Tulsa 150 Vis. No. 3 color, f.o.b. Tulsa 280 Vis. No. 3 color, f.o.b. Tulsa 300 Vis. No. 3 color, f.o.b. Tulsa Rubles per Metric Ton Dollars per Metric Ton Ratio (Ruble-Dollar) 1,149 60.31 19.1 1,000 55.63 18.0 936 55.33 16.9 904 55.33 16.3 720 36.49 19.7 960 36.54 26.3 548 37.04 14.8 24.06 15.0 228 24.77 9.2 238 22.86 10.4 428 36.38 11.8 448 34.88 12.8 688 36.75 18.7 456 38.22 11.9 844 20.42 20.9 608 34.88 17.4 680 39.69 17.1 848 40.42 21.0 -55- S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Table 18 Specifications, Prices, and Price Ratios of Petroleum Products in the USSR and the US (Continued) Rubles per Dollars per Ratio US Metric Ton Metric Ton (Ruble-tDollar) Spindle oil AU Spindle oil 2 Spindle oil 3, refined Special avtol for ZIS-110 Avtol 4-8 Avtol 10-18 Cylinder oil 2 Cylinder oil 6 Bright stock, plain Residual and Furnace mazut others Fleet mazut Oily mazut Pale Neutral Oils Conventional Vis. @ 100?F 200 Vis. No. 2-3 color, South Texas f.o.b. refineries 100 Vis. No. 1 1/2-2 1/2 color, South Texas f.o.b. refineries 100 Vis. No. 1 1/2-2 1/2 color, South Texas f.o.b. refineries 2,000 Vis. No. 4 color, South Texas f.o.b. refineries 500 Vis. No. 2 1/2-3 1/2 color, South Texas f.o.b. refineries 1,200 Vis. No. 3-4 color, South Texas f.o.b. refineries 2,000 Via. No. 4 color, South Texas f.o.b. refineries Pale Neutral Oils Conventional Vis. @ 100?F, 0-10 Pour Point 86-110 Vis. No. 2 color, f.o.b. Tulsa 60-85 Vis. No. 2 color, f.o.b. Tulsa Bright Stocks (Conventional). Average of 150-160 Vis. @ 210?F, 10-25 pour point; and 120?F, 0-10 pour point f.o.b. Tulsa. 56o 416 860 688 688 440 542 33.01 17.0 30.07 13.8 30.07 13.0 44.77 19.2 37.42 18.4 32.31 13.6 31.52 17.2 52.42 11.49 19.1 11.49 20.0 15.32 18.6 Bunker C fuel, Gulf Coast cargoes 220 Bunker C fuel, Gulf Coast cargoes 230 No. 5 fuel (0-10 pour point), Gulf Coast cargoes 285 56 - Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 19199/09108 : CIA-RDP79SO1046A000500040001-2 Specifications, Prices, and Price Ratios of Petroleum Products in the USSR and the US (Continued) US Metric Ton Metric Ton (Ruble-Dollar) 2911 (cont'd) Petroleum asphalt and semiasphalt Slow-curing free from water 212 20,53 of 10.3 SC-1 Vis. 75-150 (122? S.F.); 150+ flash point 0?F SC-2 Vis. 100-200 (14o? S.F.); 175+ flash point 0?F SC-3 Vis. 250-500 (140? S.F.); 200+ flash point 0?F SC-4 Vis. 125-250 (180? S.F.); 225+ flash point 0?F White paraffin 124-126 Amp. Wax, white crude scale, W. Pennsylvania, tank cars in bulk 1,212 77.21 15.7 a. Average price of the four items shown in the specifications. Prices are first-quarter 1950 manufacturers' prices. - 57 S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001--2 S-E-C-R-E-T Table 19 Weighted Price Ratios of Petroleum Products in the USSR and the US Value Weights Weighted Ratio SIC N Item Price Ratio (Rubles per Dollar) US (Million US $) USSR (Million Rubles) US Mix (Rubles per Dollar) Soviet Mix (Rubles per Dollar) o. 2911 Petroleum refining 7,508.0 13,388.2 18.0 17.9 Aviation gasoline 356.9 928.8 18.7 18.4 B-100 and above 19.1 278.4 643.9 B-78 18.0 a/*J B-74 16.9 a/ J 78.5 284.9 B-70 16.3 ~a J Motor gasoline 4,o86.9 3,330.0 20.3 .1 20.2 Auto gasoline (ethylated) 19.7 / 2,932.7 Special gas for ZIS-110 26.3 / 347.7 White spirit 14.8 a/ 49.6 Kerosine 426.5 4,267.9 17.3 17.3 Diesel fuel 1,271.2 763.4 11.5 c/ 13.3 Diesel fuel 15.0 / 576.2 Solar oil 9.2 / 6o.6 Motor fuel 1o.4 126.6 - 58 - A Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001.-2 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001'-2 Table 19 Weighted Price Ratios of Petroleum Products in the USSR and the US (Continued) SIC No. Item Price Ratio Rubles per Dollar) US (Million US $) USSR (Million Rubles) 2911 Lubricants 276.7 1,179.4 (cont'd) Machine oil S 11.8 -/ J Machine oil L 12.8 J J 140.2 Machine oil SU 18.7 aJ Motor oil M and T 11.9 / 75.5 Diesel oil 20.9 / 192.2 Turbine oil L and UT 17.4 J Y. Compressor oil M 17.1 29.5 Compressor oil T 21.0 a J Spindle oil AU 17.0 a Spindle oil 2 13.8 aJ J 94.4 Spindle oil 3, refined 13.0 J b Special Avtol for ZIS-110 19.2 Avtol 4-8 18.4 J J 462.6 Avtol 10-18 15.9 J J Cylinder oil 2 13.6 / J 101.6 Cylinder oil 6 17.2 J J Bright stock, plain 19.2 a] 83,4 Residual and others 1,089.8 2,918.7 Furnace mazut 19.1 aJ 1,881.9 9 Fleet mazut 20.0 J J 849?0 Oily mazut 18.6 / J 845.5 Petroleum asphalt and semi- asphalt 10.3 197.2 111.6 White paraffin 15.7 43.6 79.7 a ? Ruble-dollar ratios used in the computation of weighted ratios for a US mix. b. Ruble-dollar ratios used in the computation of weighted ratios for a Soviet mix. C. Simple average. US Mix Soviet Mix Rubles per Dollar) (Rubles per Dollar) 16.4 c/ 16.8 17.4 18.5 - 59 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 the lowest price in each country. The arithmetic average of these prices was used in computing the ruble-dollar ratio. This method was used for several Soviet price zones for brick and cement. In the case of,glass,.Zone I prices were compared with New York average prices for single- and double-strength glass. Assuming equal production of the two, the arithmetic average of the price was used in computing the ruble-dollar ratio. For the US the values of shipments for 1950 have been used as weights for roofing felt, flat glass, and asbestos cement shingles. 1_11 Value weights for cement and brick have been computed by multiplying production data from sources _! and /, respectively, by unit prices. All Soviet value weights are based on estimated production data multiplied by unit prices. Table 20* gives specifications, prices, and price ratios of construction materials in the USSR and the US. Table 21** gives weighted price ratios of construction materials in the USSR and the US. 6.. Abrasives Products. Grinding wheels were selected to represent the abrasives products category, not only because of the availability of prices for both the US and the USSR but also because in 1947, grinding wheels alone accounted' for more than 40 percent of the total value of nonmetallic abrasives and for 32 percent of the total value of all abrasives produced in the US. Also, grinding wheels were entirely comparable in respect to shape., grit, bond, grain, and size. Comparability could not be established with respect to quality. Ruble prices for abrasives products were effective 1 January 1950 ~jo and remained in effect throughout the year. They are factory prices and do not include packing. In the USSR, there is a price reduction of 10 percent for abrasives products of second quality, but it is not known whether there is any discount for quantity orders. US_prices were taken from the price list of a representative US manufacturer and were effective-20 July 1953. Prices were f.o.b. point Table 20 follows on p. 61. Table 21 follows on p. 62. -6o- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A00050004000?-2 Specifications, Prices, and Price Ratios of Construction Materials in the USSR and the US SIC No. Item USSR US Rubles per Unit J Dollars per it J Ratio (Ruble-Dollar) 2952 Roofing felts and coatings Roofing felt Soft roofing-Ruberoid ROM-500 (20 meters/roll) Asphalt felt (100 pounds) 1.6/square meter 0.29/square meter 5-5 Soft roofing-Roofing tar paper T-350 (15 meters/roll) Tar felt (100 pounds) 1.6/square meter c/ 0.29/square meter 5.5 3211 Flat glass Single strength COST 3-11-41, thickness from 0.063 to 0.075 inches, area of 10 to 13 square feet, Class I. Zone I Double strength, COST 11-41, thickness from 0.ll to 0.13 inches, area of 10 to 13 square feet, Class I, Zone 1 Single strength, A quality, New York Double strength, A quality, New York 3241 Cement, hydraulic Mark 400 3251 Brick Clay building brick, COST 530-41 standard clay brick, 9.8 inches by 4.7 inches by 2.6 inches, grade 1. Clay building brick, straight hard, 8 inches by 3 3/4 inches Mark 100 by 2 1/2 inches 32.93/1,000 1 3292 Asbestos products Asbestos cement Corrugated asbestos cement shingles, 120 centimeters by shingles 68 centimeters by 0.55 centimeters inch, including felt 4.1/square meters / 1.00/square meters 4.i a. Unless otherwise noted, Soviet prices are from source 1 and adjusted to 1 July 1950- b. Unless otherwise noted, US prices are from source c. L3/ d. Average price of single and double strength, assuming equal production of the two. e. Prices for several areas in both countries have been averaged. f. This ruble-dollar ratio has been computed by adjusting the Soviet price by a factor of roughly 60 percent to insure comparability with US price. 60 percent larger by volume than the US brick. g..84 h. 61 S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Table 21 Weighted Price Ratios of Construction Materials in the USSR and the US Value Weights Weighted Price Ratio SIC No. Price Ratio Item (Rubles per Dollar) US (Million US $) USSR US Mix (Million Rubles) (Rubles per Dollar) Soviet Mix (Rubles per Dollar) 1,511.9 7,971.0 8.2 6.2 2952 Roofing felt 5.5 331.6 333.0 3211 Flat glass 8.4 235.1 803.0 3241 Cement 10.6 670.2 1,760.0 3251 Brick 6.2 208.6 3,272.0 3292 Asbestos cement shingles 4.1 66.4 1,803.0 - 62 - Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001,-2 Approved For Release 1999/09/08 CIA-RDP79S01046A000500040001-2 of shipment. As all prices were subject to quantity discounts ranging from 36-1/2 percent to 65 percent of list, the middle discount rate of 43 percent was taken as an average to arrive at representative prices for the wheels. Using Bureau of Labor price indexes 86 , the July 1953 prices were adjusted to annual 1950 prices for grinding wheels. To establish an average ratio for the abrasives products class, 85 Soviet grinding wheels were matched with 85 comparable US grinding wheels, all weighted according to the pattern of production of a major US producer in 1952. Such a comparison results in an average ratio of 2.5 rubles per US dollar. In view of the structure of the abrasives products industry, this pattern was considered representative of the industry as a whole in the US. No information on the Soviet pattern of production was available.* Table 22** gives specifications, prices, and price ratios of abrasives products in the USSR and the US. 7. Iron and Steel. a. General. Prices and specifications for most of the products of the iron and steel industries of the USSR and the US have been taken from _ 25X1A5a1 - Ruble prices are those in effect on 1 January 1950,*** and dollar prices are those in effect during the first quarter of 1950. Additional sources of price data will be noted when appropriate.**** 25X1 A5a 1 For detailed methodology, see source .87/. Table 22 follows on p. 64. On 1 July 1950, wholesale prices were reduced by 5 percent for (a) steel of ordinary quality (structural and shaped steel, cable wire, beams and girders, sheet and wide strip steel, excluding tinplate and tin-plated and lead-plated sheet steel), and.rails and other products for railroad transportation (rail fastenings, bands, seamless rolled wheels and centers, the preparation of forgings, axles, beam rollers, and iron castings) and (b) steel and cast iron tubing and cylinders (all steel piping without exception -- welded, electric welded, seamless, boiler and steam, for the oil industry and drilling, for machine con- struction, rust resisting, basic types of cast iron water pipes, shaped joints for cast iron water pipes, and steel cylinders of general and basic types). 88 *XXX Text continued on p. 69. - 63 - Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Specifications, Prices, and Price Ratios of Abrasives Products in the USSR and the US Ratio US Rubles per Unit Dollars per Unit (Ruble-Dollar) 3291 Abrasives products coarse grit) ht wheel trai h l ( , g ee s s Grinding w Diameter Thickness Diameter (Millimeters) (Millimeters) Inches Thickness (Inches) Vitrified bond 50 25 2 1 0.52 0.28 1.9 Aluminum oxide 1 2 00 0.94 2.1 100 50 id 25 25 4 2 1 . 0.66 0.33 2.0 2 2 e White aluminum ox i00 25 4 1 2.40 1.10 . 100 25 4 1 2.75 1.09 2.5 Silicon carbide Green silicon carbide 100 25 4 1 3.65 1.14 3.2 Resinoid bond 8 1 4 id 100 25 4 1.80 1.2 . 8 1 e Aluminum ox Silicon carbide 100 25 4 2.45 1.37 . 100 25 4 1 3.15 over 4 Inches Diameter and up to 10 Inches 1 2 70 1.37 2.0 125 150 25 55 25 l . 3.35 1.67 2.0 175 25 7 4.45 2.04 2.2 2 2 200 25 8 1 5.55 2.50 . 250 25 10 1 7.85 3.85 2.0 250 50 10 2 13.40 6.75 2.0 -64- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001.2 Approved For Release 19'99/09/08 : CIA-RDP79SO1046A000500040001-2 Specifications, Prices, and Price Ratios of Abrasives Products in the USSR and the US (Continued) Vitrified bond (cont'd) White aluminum oxide Green silicon carbide USSR US Over 4 Inches Diameter and up to 10 Inches Diameter (Millimeters) Thickness (Millimeters) Diameter (Inches) Thickness Inches 125 25 5 1 125 50 5 2 150 25 6 1 175 200 25. 25 7 8 1 250 25 10 1 1 175 25 7 1 200 25 8 1 250 25 10 1 175 25 7 1 200 25 8 1 250 25 10 1 150 25 6 1 200 25 8 1 250 25 10 1 150 25 6 1 200 25 8 1 250 25 10 1 Rubles per Unit Dollars per Unit Ratio (Ruble-Dollar) 3.65 1.61 2.3 5.95 2.60 2.3 4.68 1.95 2.4 6.io 2.38 2.6 7.80 2.91 2.7 11.40 4.49 2.5 6.90 2.36 2..9 8.80 2.88 3.1 12.80 4.45 2.9 9.95 2.47 4.0 12.80 3.02 4.2 19.20 4.65 4.1 3.05 2.43 1.3 5.20 3.55 1.5 9.70 5.21 1.9 5.10 2.59 2.0 7.75 3.79 2.0 11.80 5.55 2.1 - 65 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Specifications, Prices, and Price Ratios of Abrasives Products in the USSR and the US (Continued) Rubles per Unit Dollars per Unit Ratio (Ruble-Dollar) 10 Inches Diameter and up to 18 Inches Diameter (Millimeters) Thickness (Millimeters) Pole (Millimeters) Diameter (Inches) Thickness (Inches) Hole (Inches) 300 25 127 12 1 11.16 5.25 2.1 350 25 127 14 1 15.70 7.03 2.2 400 50 203 16 2 8 31,30 15.09 2.1 450 25 203 18 1 8 26.70 11.00 2.4 450 50 203 18 2 8 45.60 19.18 2.4 300 25 127 12 1 15.30 6.13 2.5 350 25 127 14 1 22.00 8.20 2.7 400 50 203 16 2 8 44.30 17.60 2.5 450 25 127 18 1 41.80 13.43 3.1 450 50 203 18 2 8 63.70 22.38 2.8 300 25 127 12 1 17.30 6.06 2.9 450 50 203 18 2 8 70.60 22.15 3.2 300 25 127 12 1 24.90 6.35 3.9 6 4 450 50 203 18 2 8 148.00 23.18 . um oxide Al i 300 25 127 12 1 12.60 6.84 1.8 1 6 um n 40o 50 203 16 2 8 30.10 19.00 . 450 50 203 18 2 8 44.80 25.20 1.8 rbide Sili 300 25 127 12 1 15.20 7.28 6 2.1 4 2 con ca 400 50 127 16 2 55.30 22. 7 . Rubber bond 300 25 12 1 16.10 8.51 1.9 400 25 203 16 1 8 25.60 12.08 2.1 -66- Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09%08 : CIA-RDP79S01046A000500040001-2 S-E-C-R-E-T Table 22 Specifications, Prices, and Price Ratios of Abrasives Products in the USSR and the US (Continued) SIC No. Item USSR US Rubles per Unit Over 18 Inches Diameter and up to 28 Inches Diameter Thickness Hole Diameter Thickness Hole (Millimeters) (Millimeters) (Millimeters) (Inches) (Inches) (Inches) Dollars per Unit Ratio (Ruble-Dollar) 13.63 2.4 12.52 2.3 23.74 2.5 21.82 2.2 22.55 2.0 32.89 2.4 27.69 3.0 25.45 2.6 38.36 2.8 27.40 3.4 25.19 2.9 35.92 2.8 28.68 4.7 26.36 4.0 37.58 4.0 31.29 1.8 27.03 1.7 41.26 1.9 33.36 2.6 28.80 2.3 43.97 2.5 29.42 3.4 500 25 203 20 1 8 33.40 500 25 305 20 1 12 29.20 500 50 203 20 2 8 59.10 500 50 305 20 2 12 47.10 6oo 25 305 24 1 12 45.00 600 50 305 24 2 12 77.70 500 50 203 20 2 8 82.40 500 50 305 20 2 12 65.10 600 50 305 24 2 12 109.00 500 50 203 20 2 8 92.90 500 50 305 20 2 12 73.60 500 75 305 20 3 12 101.00 500 50 203 20 2 8 135.00 500 50 305 20 2 12 106.00 500 75 305 20 3 12 150.00 500 500 600 500 500 600 203 20 2 8 57.90 305 20 2 12 46.50 305 24 2 12 77.60 203 20 2 8 86.00 305 20 2 12 57.10 305 24 2 12 110.00 500 50 305 20 2 12 100.00 -67- S-E-C-R-E-T Approved For Release 1999/09/08 CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Specifications, Prices, and Price Ratios of Abrasives Products in the USSR and the US (Continued) Item USSR US Rubles per Unit Dollars per Unit Ratio (Ruble-Dollar) Over 28 Inches Diameter Diameter (Millimeters) Thickness Hole (Millimeters) (Millimeters) Diameter (Inches) Thickness (Inches) Hole (Inches) 750 50 305 30 2 12 14l.0O 56.21 2.5 750 75 305 30 3 12 198.00 77.86 2.5 goo 52 305 36 2 12 245.00 85.99 2.8 900 78 305 36 3 12 351.00 117.07 3.0 750 50 305 30 2 12 197.00 65.57 3.0 750 75 305 30 3 12 277.00 90.85 3.0 750 75 305 30 3 12 197.00 97.90 2.0 750 100 305 30 4 12 255.00 128.65 2.0 - 68 - Approved For Release 1999/09108 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79S01046A00050004000.1-2 25X1A5a1 A representative sample of 45 ratios of the total number of 523 ratios computed was selected for the iron and steel indus- try. This sample of ratios was selected in order to facilitate the computation of a set of weighted ratios for a four-digit industry class- ification based on Soviet value weights. Soviet weights are available for only a limited number of items, b. Derivation of Value Weights. In most instances, gross value weights for both the US and the USSR have been estimated by multiplying physical production data by the prices used in computing the ruble-dollar ratios. US production figures have been obtained primarily from data published by the American Iron and Steel Institute. 89/ The estimating procedures employed in deriving gross value and physical production estimates for the US and the USSR for the principal categories of finished steel products are set forth below. (1) Pipe and Tube. Although the pipe and tube category is the only finished steel product for which official Soviet production data are available, the great diversity of types within the category makes an accurate estimate of the gross value difficult. It is estimated that 70 percent of the category is seamless tube, the remainder largely welded pipe. Ithas been assumed that 35,000 metric tons of the seamless category is stainless steel (purposely established on the high side to reflect other pipe and tube items of a special nature), the remainder being regular high-quality seamless. (2) Heavy Sections 25X1A5a1 The three principal types of heavy sections are channels, I-beams, and angles, prices for which are given in Gross value output estimates for the US and the USSR were obtained by multi- plying physical production estimates for heavy sections by the average price for channels, I-beams, and angles. In computing a Soviet average price for heavy sections, the prices for beams, channels, and angles were weighted in the ratio of 2 to 1 to 1. -69_ Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 (3) Light Sections. In the USSR, production of light sections is divided into two groups -- ordinary and quality grades. In 1950, of the total pro- duction in the light -section category, 4.01 million metric tons was of ordinary quality consisting of roughly equal parts of light channels, angles, small beams, and hot rolled bars, and the remaining 1.34 million metric tons was of quality grade. One-half of the quality grade con- sists of hot rolled alloy bars, and the remaining production is esti- mated to be divided evenly between cold finished bars, high speed tool steel bars, and hot and cold rolled stainless bars. The "ordinary" and "quality" groups do not accurately correspond to the division of production of light sections in the US. Theief ore, for purposes of comparability, the light section category has been divided into two main groups -- "structural" and "bars." The structural category consists of light channels, junior I-beams, and angles. The bar category is made up of all bars. US gross value of output for the structural category has been derived by multiplying total physical production by the average of prices for light channels, junior I-beams, and angles. In computing the gross value of bars in the US, it was necessary to average the prices for hot rolled, cold finished, and hot rolled alloy bars, since the production figure used included these items. 90/ (4), Wire Rod. In the USSR, wire rod is produced in the ordinary and quality grades. For purposes of computing US gross values, it has been assumed that Soviet ordinary wire rod and US carbon steel wire rod are compar- able and that Soviet quality wire rod is comparable to US alloy steel wire rod. Production data used in the computation of US values were found in source 91/_ (5) Plate. For purposes of computing US gross values, it has been assumed that Soviet ordinary plate and US carbon steel plate are comparable and Soviet quality plate is comparable to US alloy steel plate. Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 25X1A5a1 Table 23* gives specifications, prices, and price ratios of iron and steel products in the USSR and the US. Table 2)l** gives weighted price ratios of iron and steel products in the USSR and the US. 8. Nonferrous Metals. US and Soviet prices for nonferrous metals have been taken from except where otherwise noted. Ruble prices are those in effect on 1 January 1950, and dollar prices are those in effect during the first quarter of 1950. Prices for various sizes and speci- fications of the rolled and drawn products considered have been averaged as the resulting ratios closely approximate the ratios computed for the corresponding primary metal. US gross value of output data, or data used in the computation of gross values, have been taken from the Minerals Yearbook. 92 Values for copper and magnesium have been computed by multiplying physical production by the average yearly price. Values of production for lead, zinc, and aluminum were reported. The weights for the components of SIC Number 3339, Primary Nonferrous Metals, n.e.c., except cadmium, have been derived from consumption data multiplied by average yearly prices. Since relatively small quantities of these items are produced in the US, it is believed that value weights based on consumption data are more meaningful for purposes of combining ratios. The value of shipments has been used for cadmium. Gross value weights for the USSR have been derived by multiplying physical production by average prices. 93 No attempt has been made to value rolled and drawn products. Table 25*** gives specifications, prices, and price ratios of non- ferrous metals in the USSR and the US. Table 26*3* gives weighted price ratios of nonferrous metals in the USSR and the US./ Table 23 follows on p. 72. Table 21i follows on P- 75- Table 25 follows on p. 78. Table 26 follows on p. 80. Text continued on p. 81. - 71 - ,Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Table 23 Specifications, Prices, and Price Ratios of Iron and Steel Products in the USSR and the US Basic pig iron Bessemer pig iron Foundry pig iron (gray castings) Foundry pig iron (malleable castings) Ferromanganese Spiegeleisen Ferrosilicon Rails Railroad accessories Pipes and tubes Welded Seamless High quality Stainless Channels I-beams Angles Light channels Junior I-beams Angles 25X1A5a1 25X1A5a1 Price --/* Rubles per Dollars per Ratio Metric Ton Metric Ton (Ruble-Dollar) 476 52.80 J 9.0 400 51.70 7.7 427 c/ 48.69 c, 8.8 660 51.20 12.9 1,487 190.00 7.8 600 70.40 8.5 720 / 80.00 of 9.0 621 81.59 7.6 590 92.61 6.4 1,350 138.21 9.8 6,830 445.67 15.3 564 82.67 6.8 80o 81.57 9.8 - 660 80.48 8.2 587 92.59 6.3 815 92.59 8.8 650 74.97 8.7 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001.; 2 Approved For Release 19'99/09108 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Table 23 Specifications, Prices, and Price Ratios of Iron and Steel Products in the USSR and the US (Continued) 3312 (cont'd) Rubles per Dollars per Ratio USSR US Metric Ton Metric Ton (Ruble-Dollar) 25X1A5a1 Hot rolled stainless 10,320 699.96 14.7 Tool steel 25,760 4,211.55 6.1 Hot rolled 786 J 83.24 g/ 9.4- Cold finished 1,172 117.97 9.9 Hot rolled alloy 1,218 136.71 8.9 Ordinary 777 i/ 96.65 J 8.0 Quality 1,300 J 118.00 / 11.0 Hot rolled 828 84.89 9.8 Cold rolled 960 99.23 9.7 Galvanized 2,640 147.07 18.0 Tinplate 6,670 155.28 43.0 Electrical 2,350 277.83 8.5 Stainless 13,360 893.03 15.0 Hot rolled 891 111.35 8.0 Cold rolled 1,670 143.33 11.7 Stainless 17,500 826.88 21.2 Ordinary 829 91.51 9.1 Quality 1,200 / 120.00 / 10.0 Stainless 12,780 927.20 13.8 Approved For Release 1999/9/0$ 6IAT-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Specifications, Prices, and Price Ratios of Iron and Steel Products in the USSR and the US (Continued) Specifications Price Rubles per Dollars per Ratio USSR US Metric Ton Metric Ton (Ruble-Dollar) Ferrosilicon Ferrochrome Grade Khr 000 (Cr 60%, 3321 Gray-iron foundries Gray-iron castings 3322 Malleable-iron foundries Malleable-iron castings 3323 Steel foundries Steel castings 3391 Iron and steel forgings Quality 3,610 223.00 16.2 a. Unless otherwise noted, all prices are taken from source 2J21 b. Allows for high Mn. c. Average price of Northern pig iron (high phosphorus) and Southern pig iron. d.. e. Average of prices for ferrosilicon from source ~. f. Average price for size 0.98 and 3.54 inches. g. Average price forsize 1 and 3 1/2 inches. h. It has been assumed that Soviet ordinary wire rod and US carbon steel wire rod are comparable and Soviet quality wire rod is comparable to US alloy steel wire rod. i. Average of wire rod category. j. Estimated from price data in source 9J5. k. Estimated. 1. / - m. 97/ n. ~0 o. Average of the four principal marks of gray castings of medium complexity. 99 P. !LO/ q. Ratio estimated. Reasoning is predicated on a ratio of 12.9 for the grade of pig iron used in malleable castings. r. The ruble price was determined by averaging the carbon and low alloy grades of castings of medium complexity which in the US account for 80 percent of all steel castings and adding the average of alloy and high alloy grades of castings of medium complexity which account for the remainder. 12.1/ B. 1947 price adjusted to 1950 price. Between 1947 and 1950, AISI composite iron and steel index increased 7 z percent, which was applied to the 1947 price. -74- S-E-C-R-E-T 25X1A5a1 1,650 223.00 7++ 3,700 , 411.11 J 9.0 25X1A5a1 3,855 J 362.00 1 10.6 Approved For Release 1999/09/,08 : CIA-RDP79S01046A000500040001,-2 Approved For Release 109/09108 : CIA-RDP79S01046A00050004000?-2 Weighted Price Ratios of Iron and Steel Products in the USSR and the US SIC No. Price Ratio Item (Rubles per Dollar) (Million US $) (Million Rubles) (Rubles per Dollar) (Rubles per Dollar) 3311 Blast furnaces 3,516.5 9,041.2 9.0 Basic pig iron 9.0 2,629.4 6,537.9 Bessemer pig iron 7.7 418.8 436.o Foundry pig iron (gray castings) 8.8 136.3 1,469.7 Foundry pig iron (malleable castings) 12.9 163.8 194.7 Ferromanganese 7.8( 200.7 Spiegelelsen 8.~ 104.2 J* 159.0 Ferrosilicon 9.0 64.0 , 43.2 8,700.5 25,177.4 13.1 Rails 7.6 146.9 908.0 Railroad accessories 6.4 64.8 328.0 Pipes and tubes 1,274.7 2,934.0 10.2 Welded Seamless High quality 9.8 454.7 1,843.0 Stainless 15.3 4.5 239.0 Channels 6.8 I-beams 9.8 angles 8.2 1,608.3 12,005.4 8.9 7.7 7.9 f 7.9 Light channels 6.3 588.2 Junior I-beams 8.8 651.3 Angles 8.7 816.6 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Table 21 Weighted Price Ratios of Iron and Steel Products in the USSR and the US (Continued) SIC No. Item Price Ratio (Rubles per Dollar) US (Million US $) USSR (Million Rubles) US Mix (Rubles per Dollar) Soviet Mix (Rubles per Dollar) 3312 (cont'd) Hot rolled stainless 14.7 24.0 2,311.7 Tool steel 6.1 237.5 5,770.2 Hot rolled 9.4 787.6 9.9 1,251.4 262.5 8.9 817.3 505.3 902.0 8.0 8.7 Ordinary 8.0 498.3 634.0 Quality 11.0 7.0 268.0 3,282.2 J 3,707.0 18.6 13.5 Hot rolled 9.8 848.4 1,375.0 Cold rolled 9.7 837.4 450.0 Galvanized 18.0 300.0 264.o Tinplate 43.0 779.6 1,068.0 Electrical 8.5 338.2 216.0 Stainless 15.0 178.6 334.o 786.8 J 549.o 12.8 11.2 Hot rolled 8.0 229.5 220.0 Cold rolled 11.7 281.9 154.0 Stainless 21.2 205.4 175.0 672.6 2,089.0 9.8 9.5 Ordinary 9,11 640.3 1,650.0 Quality 10.0 247.0 . Stainless 13.8 32.3 192.0 - 76 - Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001 r2 Approved For Release 1999/09108 : CIA-RDP79S01046A00050004000i-2 Table 24 Weighted Price Ratios of Iron and Steel Products in the USSR and the US (Continued) Value Weights Weighted Ratio SIC No. Item Price Ratio (Rubles per Dollar) US (Million US $) USSR (Million Rubles) US Mix Soviet Mix (Rubles per Dollar) (Rubles per Dollar) 596.0 Ferromanganese 6.0 236.0 Ferrosilicon 7.4 116.0 Ferrochrome 9.0 244.0 3321 Gray-iron foundries Gray-iron castings 3322 Malleable-iron foundries Malleable-iron castings 13.0 274.5 2,220.0 3323 Steel foundries Steel castings 10.6 362.0 3,080.0 3391 Iron and steel forgings 1,058.0 Ordinary 12.7 740.0 Quality 16.2 318.0 Includes ferromanganese and ferrosilicon produced in electric furnaces. Simple average. Average ratio of channels, beams, and angles; however, beams were given twice the weight of the other two. US production data used in the computation of values from source 102 . - 77 - S-E-C-R-E-T Approved For Release 1-999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Specifications, Prices, and Price Ratios of Nonferrous Metals in the USSR and the US Rubles per Dollars per Ratio SIC No. Item USSR US Metric Ton Metric Ton (Ruble-Dollar) 3331 Primary smelting and refining of copper 25X1 A5a 1 Primary copper 6,612 407.50 16.2 3332 Primary smelting and refining of_lead Primary lead 3,650 260.19 14.0 3333 Primary smelting and refining of zinc Primary zinc 12.6 J 3334 Primary refining of aluminum Primary aluminum 6,650 375.00 17.7 3335 trimary refining of magnesium Primary magnesium Magnesium ingots (99.8%) 16,500 J 465.00 1 34.0 3339 Primary refining and smelting of nonferrous metals, n.e.c. J 25X1 A5a 1 Cadmium 248,000 4,410.00 56.2 Cobalt 456,000 ff 4,410.00 103.4 Nickel 36,000 970.00 7.1 3 Tin 111,600 1,643.00 6 7.9 Mercury 100 2,120.00 47.2 Antimony 20,300 623.00 32.6 3351 Rolling, drawing, Copper rod 17.5 J Copper sheet 16.0 J Copper tubing 12.4 J Aluminum sheet 15.4 J Aluminum rods 19.1 J - 78 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09%08 : CIA-RDP79SO1046A000500040001-2 Specifications, Prices, and Price Ratios of Nonferrous Metals in the USSR and the US (Continued) Sheet lead Sheet zinc d. Average 1950 price from source 10 C. Not elsewhere counted. f. 108 Price a Rubles per Dollars per Ratio Metric Ton Metric Ton (Ruble-Dollar) 5,800 375.00 15.5 4,925 342.00 14.4 79 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08: CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Table 26 Weighted Price Ratios of Nonferrous Metals in the USSR and the US Value Weights Weighted Ratio Price Ratio US USSR US Mix Soviet Mix SIC No. Item (Rubles per Dollar) (Million US $) (Million Rubles) (Rubles per Dollar) (Rubles per Dollar) 3331 Primary copper 16.2 515.8 1,978.1 3332 Primary lead 11+.0 137.2 386.4 3333 Primary zinc 12.6 240.1 377.6 3331+ Primary aluminum 17.7 236.0 1,482.6 3335 Primary magnesium 34.0 6.9 181.5 3339 Primary nonferrous metals, n.e.c. aJ 378.2 2,703.8 60.0 52.1 Cadmium 56.2 18.6 72.0 Cobalt 103.4 11.0 652.1 Nickel 37.1 89.0 1,152.0 Tin 67.9 246.5 714.0 Mercury 47.2 4.0 57.9 Antimon 32.6 9.1 55.8 y 25X1A5a1 3351 Rolling, drawing, and alloying of copper 13.8 3352 Rolling, drawing, and alloying of aluminum 16.3 3359 Rolling, drawing, and alloying of non- ferrous metals, n.e.c. a/ 15.0 b 14.9 J 3392 Wire drawing 14.2 / 14.1 J a. Not elsewhere counted. b. Simple average. Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001,-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 9. Tractors and Trucks. Prices for Soviet tractors are those believed to be in effect on 1 January 1950. Prices of 1 January 19+9 were adjusted to 1 January 1950 on the basis of known price changes. US prices for tractors were in effect on 1 January 1950. Prices for US and Soviet trucks were those in effect on 1 July 1950. With the reservation that little is known about the operational life of Soviet machinery, comparability is good for tractors and trucks. Value weights have been computed for the USSR only. Estimated production data have been multiplied by the price to derive value weights. Table 27* gives specifications, prices, and price ratios of tractors and trucks in the USSR and the US. Table 28** gives weighted price ratios of tractors and trucks in the USSR. 10. Metalworking Machinery. a. General. The classes of commodities considered in this category include machine tools and metalworking machinery (except machine tools). The selection of these classes has been dictated largely by availability of comparable US and Soviet data. Comparability of,wholesale prices for the US and the USSR is affected by a number of factors. In the US, depending upon the indus- try and manufacturer concerned, prices quoted may or may not include such items as shipment, installation, discounts, electrical equipment, and accessories. The Soviet wholesale price lists used in this research aid specified that prices are f.o.b. station of shipment, and they in- cluded the cost of packing. Little is known concerning possible discount practices and the inclusion of accessories and the like in the USSR. For these reasons, it is not possible to say that US and Soviet whole- sale prices always include the same items, nor is it usually possible -to adjust for differences. Table 27 follows on p. 82. Table 28 follows on p. 83. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Specifications, Prices, and Price Ratios of Tractors and Trucks in the USSR and the US SIC No. Item USSR US Rubles per Unit Dollars per Unit J (Ruble-Dollar) 3521 Tractors S-80 DT-54; track-laying; diesel; 54 hp @ 1,300 rpm; bore, 125 mm; stroke, 152 mm; tractor weight, 5,400 kg; over-all length, 3,660 in; over-all width, 1,865 mm KD-35; track-laying; diesel; 37 hp @ 1,400 rpm, bore, 100 mm; stroke, 130 mm; tractor weight, 3,700 kg; over-all length, 3,040 mm; over-all width, 1,430 mm 3711 Motor vehicles Trucks GAZ-51, net weight with body, 5,975 ibs; payload 2-1/2 tons; gross weight, 11,500 lbs; tire size, 5.70 x 20; wheelbase, 130 inches, dual rear tires ZIS-150; 2-axles cargo; net weight, 3,900 kg (8,600 lbs)? gross weight, 8,050 kg (17,750 lbs); wheel base, 4,000 mm (157 inches); tire size, 900 x 20; dual rear tires Caterpillar, D-4; track-laying; diesel; 50 hp @ 1,300 rpm; 53-1/2 hp @ 1,400 rpm; bore, 4-1/2 inches (114 mm); stroke, 5-1/2 inches (140 mm); tractor weight, 4,730 kg; over- all length, 3,050 mm; over-all width, 1,575 mm Caterpillar D-2; track-laying; diesel; 38 hp @ 1,400 rpm; 41 hp @ 1,525 rpm; bore, 4 inches (103 mm); stroke, 5 inches (127 mm); tractor weight, 3,050 kg; over- all length, 2,730 mm; over-all width, 1,415 mm Ford, F-6 series; Model 9HTH; conventional; heavy duty; payload, 2 tons; net weight with body, 5,494 lbs; gross weight, 15,500 lbs; tire size, 7.50 x 20; wheel base, 134 inches, dual rear tires; 6-cylinder engine GMC, FC 453; gross weight, 19,000 lbs; weight, chassis only, 5,440 lbs; cab, 500 lbs; platform express body, 1,100 lbs a. Unless otherwise noted, all US prices from source 109- b. Prices for tractors were constructed from 1949 prices in source 110 and adjusted to 1950 prices on the basis of known price changes. c. Prices for Soviet trucks from source 111 . Approved For Release 1999/09108 : CIA-RDP79S01046A000500040001.-2 Approved For Release 19'99/09108 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Weighted Price Ratios of Tractors and Trucks in the USSR Value Weights Weighted Ratio SIC No. Item Price Ratio Us (Rubles per Dollar) (Million US $) USSR US Mix Soviet Mix (Million Rubles) (Rubles per Dollar) (Rubles per Dollar) s-80 5.8 1,054.5 DT-54 5.9 1,096.2 KD-35 9.7 165.0 3711 Trucks 3,096.7 GAZ-51 8.6 1,420.2 ZIS-150 6.o 1,676.5 - 83 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T b. Derivation of Price Ratios. (1) Machine Tools. Ruble prices as of 1 July 195Q have been used to establish the 1950 ratios for machine tools, as they presumably reflected an attempt by the Soviet government to bring prices of machine tools in line with the new prices for other capital goods. These prices are f.o.b. station of shipment and include the cost of packing. 112 US 1950 prices for machine tools have been estimated from 1951 prices in the absence of readily available data for 1950. Mid- December 1951 prices have been used as the base prices. 11 A 21-per- cent increase was noted between 1 July 1950 and mid-December 1951 in the wholesale price indexes for special groupings of machinery and steel products, including the machine tools class. 114- Using BLS base value weights for 19)+7-49, it was established that the weight of the machine tools class was 43 percent of the total weight of all classes included in this special grouping. In addition, the "machine tools designed primarily for home workshops" class, which comprised 3 percent of the total weight of the special grouping, was included. Thus the two ma- chine tools classes accounted for 46 percent of the base value weight. On the-basis of data published by BLS, it was possible to establish a weight and a price index for each of the 26 commodities included in the 3 remaining classes of the special grouping. 11 It was found that these classes, accounting for 54 percent of the weight, showed a price increase, of 15.7 percentand that the machine tools class, account- ing for 46 percent of the weight, showed a price increase of 27.2 per- cent between 1 July 1950 and 1 January 1952. Base prices as of mid- December 1951 were then adjusted to 1 July 1950 on the basis of a 27.2- percent.price increase. (2) Metalworking Machinery (Except Machine Tools).* Ruble prices as of l July 1950 have been used to establish the ruble-dollar ratios of metalworking machinery (except machine tools). The 1 July 1950 prices represent a flat 7-percent reduction over 1 Jan- uary 1950 prices, which in turn represent reductions of as much as 25 percent over 1949 prices. * All of the machines used to represent this class are classified as metalforking machinery. Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Prices of US metalworking machines (except machine tools) have been constructed by using mid-December 1951 prices. 116 ?A price index for metalworking machinery (except machine tools) was established between 1 July 1950 and 1 January 1952, and the price increase for each commodity was weighted according to BLS base value weights. 11 The resulting average price increase of 19 percent was used to adjust the mid-December 1951 price of each metalworking machine to 1 July 1950 prices. Weighted ratios have been computed for machine tools and metalworking machinery (except machine tools) only for the US. Value of shipments data for 19+7 have been used as weights for the broad cate- gories. For purposes of weighting, ruble-dollar ratios have been.aver- aged in cases where ratios had been computed for more than one compon- ent of a broad category. Table 29* gives specifications, prices, and price ratios of metalworking machinery in the USSR and the US. Table 30** gives weighted price ratios of metalworking machinery in the US. 11. Textile Machinery. It is estimated that, in 1950, cotton accounted for approximately 88 percent of all textiles produced in the USSR and 77 percent of all textiles produced in the US. 118 In view of the overwhelming impor- tance of cotton in the textile industries of the two countries, the machines selected for this research aid are all machines found in the cotton textile industry. Prices for the Soviet models were effective on 1 January 1950, 119/1 were f.o.b. point of shipment, and included the cost of packing. The Soviet price list contained specifications of the textile machines as well as prices. These specifications were submitted to manufacturers of textile machines in the US, who in turn furnished prices for US models which most nearly approximated the Soviet models. One weakness here, however, was the failure of some manufacturers to indicate specifications of the US machine they were using for comparison. As US prices were for February 1953, they were adjusted to January 1950 prices. On the basis of data furnished by BLS, it was possible*** Table 29 follows on p. 86. Table 30 follows on p. 88. Text continued on p. 89. - 85 - Approved For~Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Specifications, Prices, and Price Ratios of Metalworking Machinery in the USSR and the US Ratio SIC NO. Item USSR US Rubles per Unit Dollars per Unit (Ruble-Dollar) Boring machines, horizontal 262G, 85 mm 262D, 11o mm 265V, 150 mm Drilling machine radial Gear cutting and finishing 255 machines Gear bobbing machine, universal 532 Grinder, centerless 3180 Grinder, plain cylin- drical 3151, 150 mm by Cincinnati Gilbert, 3g inches 119,380 19,911 , 6.0 Lucas, 42B30, 4 inches 112,800 26,638 4.2 Giddings and Lewis, 560P, 6 inches 756,700 112,318 6.7 Cincinnati Gilbert, 36 inches by 11 inches Gould and Eberhardt, 36H, 36 inches by 15 inches 65,800 16,228 4.1 Gould and Eberhardt, 24H, 24 inches by 15 inches Fellows, 615A 750 mm Landis, 6 inches by 30 inches 23,124 9,992 2.3 Grinder, horizontal spindle 3724, 2,000 mm by 400 mm Thompson, 23-C, 16 inches by Grinder, vertical spindle 3756, 750 mm 96 inches Blanchard, 30 inches 51,418 7,449 6.9 Laths Lathe, engine Reed-Prentice, AA, 16 inches 13,160 5,165 2.5 Lathe, 6-spindle chucking by 30 inches 19,393 5.6 Lathe, 6-spindle vertical 1A283, 300 mm Bullard, 12 inches 126,712 33,450 3.8 Lathe, 6-spindle vertical 1284, 400 mm Bullard 16 inches 140,248 38,945 Lathe, turret 1K36, 65 mm Bardons and Oliver, 21A, 22 inches - 86 - Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001,-2 Approved For Release 1999/09%08 : CIA-RDP79S01046A00050004000'I -2 f Specifications, SIC No. Item 3541 Machine tools (Cont'd) Milling machines Horizontal (plain) Horizontal (universal) Broaching machine, hydraulic, horizontal Planer S-E-C-R-E-T Table 29 Prices, and Price Ratios of Metalworking Machinery in the USSR and the US (Continued) 6N82G, 1,250 mm by 30 mm 6N82, 1,250 mm by 300 mm 7530, 30 tons 7231A, -900 an by 3,000 mm 3542 Metalworking machinery (except machine tools) Mechanical presses K231, 10 tons K232, 15 tons K30, 30 tons Pipe and structural bending machines Iron worker N633 Ratio Rubles per Unit Dollars per Unit (Ruble-Dollar) 28,200 10,126 30,080 11, 562 8,945 5.1 192,700 30,708 6.3 31,678 6,665 4.8 13,536 2,457 5.5 3,860 718 5.4 6,045 962 6.3 11,467 6.0 Cincinnati Gilbert, 2, high-speed dial Cincinnati Gilbert, 2, high-speed dial . La Pointe, 50 hp, 25 tons Gray, 36 inches by 120 inches Rockford, 28 inches Landmaco, lZ inches Zeh and Hahnemann, 9 tons Zeh and Hahnemana, 16 tons E.W. Bliss, 32 tons Power shearing machines Shears, plate Forging hammers N461, 1,640 kg Peck, Stow, and Wilcox, 3,900 pounds Forging hemmer, pneumatic M412, 150 kg Chambersburg, 300 pounds 17,484 5,218 3.4 m415, 400 kg Cbambersburg, 750 pounds 39,860 11,483 3.5 Other forging machines Rotary swager V202, tube diameter, Etna, tube diameter, 3/8 inches 7.3 mm - 87 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Weighted Price Ratios of Metalworking Machinery in the US Price Ratio US Value Weights US Mix Soviet Mix SIC No. Item (Rubles per Dollar) (Million US $) (Rubles per Dollar) (Rubles per Dollar) 35+1 Machine tools 369.8 4.5 Boring machines 5.6 25.8 Drilling machines 4.2 33.5 Gear cutting and finishing machines 2.7 17.7 Grinding and polishing machines 5.6 56.4 Lathes 3.6 92.9 Milling machines 2.7 35.3 Other machine tools 5.4 108.2 35+2 Metalworking machinery (except machine tools) 103.6 6.8 Mechanical presses 5.9 77.9 Pipe and structural bending machines 10.9 1.8 Power shearing machines 7.3 12.6 Forging hammers 3.1k 4+.3 Other forging machines 16.9 7.0 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 to set up a wholesale price index for textile machines between January 1950 and February 1953. The 1953 prices were adjusted to January 1950 on the basis of a 22-percent increase during the period. A weighted ratio for textile machinery has been computed only for the US. Value of shipments in 19+7 for broad categories has been used as value weights. Ruble-dollar ratios have been averaged in cases where ratios had been computed for more than one component of a broad cate- gory for purposes of weighting. Table 31* gives specifications, prices, and price ratios of textile machinery in the USSR and the US. Table 32** gives weighted price ratios of textile machinery in the US. 12. Electrical Equipment and Electronics. Soviet wholesale prices for electrical equipment and electronics (with the exception of electron tubes) were those in effect on 1 Jan- uary 1950. Soviet prices for electron tubes for 1950 were obtained by adjusting 1 January 1949 prices by means of an average price index for mining, manufacturing, electric power, and rail transport. 120 US prices, in most cases, were annual average prices. US 1950 prices.for electron tubes were estimated by adjusting prices in effect on 1 January 1949 by means of an electron tube price index. 121 On account of the lack of gross value of production data for the US and the USSR, it was not possible to compute weighted average ratios for most four-digit categories. In this case, simple averages of ratios were computed for the four-digit categories.- A simple average of ratios for most of the four-digit categories would differ only slightly from a weighted average because of the small dispersion of the ratios. Table 33*** gives specifications, prices, and price ratios of electrical equipment and electronics in the USSR and the US. Table 31I* gives weighted price ratios of electrical equipment and electronics in the US./ Table 31 follows on p. 90. Table 32 follows on p. 91. Table 33 follows on p. 92. Table 34 follows on p. 97. Text continued on p. 98. -89- S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T SIC No. 3552 Specifications, Prices, and Price Ratios of Textile Machinery in the USSR and the US Textile machinery Cleaning and opening machinery One-process picker Vertical opener Blending feeder Carding machines Card Drawing and roving frames Drawing frame Roving frame Silver lap wider Spinning frames Spinning frame for cotton yarn Twisting fr?es Dry twist twister Winding machines Winding frame Other yarn preparing machines High-speed warping machines Slashing cylindrical -hi- Power looms Automatic weaving 1ocmm Hosiery knitting machines Automatic machine for production of hosiery Bleaching, dyeing, and finishing machinery Dyeing machine for cotton Two-roll finishing machine Ratio Rubles per Unit Dollars per Unit (Ruble-Dollar) 80, 000 i6,ooo 10,716 1,982 1,455 7.5 8.1 7.1 L-305 or L-254 Whitin, KSF 15,200 RTP-192 Whitin (10 by 5 by 7-1/2 48,000 LS-235 inches) 20,000 P-66 or Pu-66 M-150 SV-140 S'bB-14o ATK-100 KhK-110 PD-110 100,000 110,000 293,500 18,000 7,068 8,322 2,805 6,330 13,120 16,400 1,228 15.8 8.4 17.9 14.7 Approved For Release 1999/09108 : CIA-RDP79S01046A000500040001,-2 Approved For Release 1999/09%08 : CIA-RDP79SO1046A00050004000 01-2 Weighted Price Ratios of Textile Machinery in the US Price Ratio US Value Weights SIC No. Item (Rubles per Dollar) (Million US $) 3552 Textile machinery 173.9 Cleaning and opening machinery Picker 7.5 2.2 Other cleaning and opening machinery 7.6 6.4 Carding machines 5.7 16.8 Drawing and roving frames 5.0 10.5 Spinning frames 5,0 17.2 Twisting frames 6.9 10.2 Winding machines 6.6 16.2 Other yarn preparing machines 12.1 4.2 Power looms 8.8 34.4 Knitting machines, hosiery 6.1 35.8 Bleaching, dyeing, and finishing machinery 16.3 20.0 US Mix (RublesEer Dollar) Soviet Mix (Rubles per Dollar) - 91 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Table 33 Specifications, Prices, and Price Ratios of Electrical Equipment and Electronics in the USSR and the US 3511 Turbines Steam F[ydro * Footnotes for Table 33 follow on p. 96. 12.5 mw J* 25 mw 50 mw 100 mw 150 mw 38.5 mw 75 mw 12.5 mw 46.o mw 65.0 mw Ratio US Rubles per Kilowatt Dollars per Kilowatt Ruble-Dollar) 12.5 mw 25 mw 50 mw 100 mw 150 mw 38.5 mw 75 mw 12.5 mw 46.o mw 65.0 mw Copper, hard drawn, round, solid, Copper, hard drawn, round, solid GOST 2112-46 0.6 mm in diameter 42 AWG J 0.30 mm in diameter 28 AWG 2.5 mm in diameter 10 AWG 6.0 in in diameter 2 AWG Copper, annealed, round, solid, Copper, annealed, round, solid GOST 2112-46 0.30 mm in diameter 28 AWG 2.5 mm in diameter 10 AWG 6.0 = in diameter 2 AWG - 92 - 150 J 30 J 5.0 108 25 4.3 80 21 3.8 6o 17 3.5 50 15 3.3 47 50 0.9 68 50 1.4 202 75 2.7 201 75 2.7 185 75 2.5 1,114 e/ 218.12 5.1 384 34.66 11.1 346 29.82 11.6 346 29.57 11.7 386 34.76 11.1 348 29.92 11.6 348 29.67 11.7 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09108 CIA-RDP79SO1046A000500040001-2 Table 33 Specifications, Prices, and Price Ratios of Electrical Equipment and Electronics in the USSR and the US (Continued) Ratio SIC No. Item USSR US Rubles per 1,000 Feet Dollars per 1,000 Feet Ruble-Dollar 3631 (Cont'd) Paper-insulated, single-conductor elec- Paper-insulated, single-conductor, lead- tric power cable with copper conductor, sheathed cable, noncompact strand insulated with impregnated cable paper, lead-sheathed, GOST 340-41 Volt Cross Section (mm2) / Volt Description 3,000 16 2,500 AWG 6 945 314 3.0 3,000 35 2,500 AWG 1 1,500 449 3.3 3,000 95 2,500 AWG 4/o 3,261 700 4.7 3,000 240 2,500 500 M 7,528 1,237 6.1 6,000 16 7,500 AWG 6 1,219 377 3.2 6,000 35 7,500 'AWG 1 1,8.10 493 3.7 6,00o 95 7,500 AWG 4/0 3,718 749 5.0 6,000 240 7,500 500 MLM 7,955 1,308 6.1 10,000 16 15,000 AWG 6 1,588 469 3.4 10,000 35 15,000 AWG 1 2,249 634 3.5 10,000 95 15,000 AWG 4/0 4,237 920 4.6 10,000 240 15,000 500 MCM 8,504 1,541 5.5 Rubber-insulated, single-conductor elec- Rubber-insulated, single-conductor, tri lea c power cable with r d-sheathed, GOST 433 ubber insulation, -41, 500 volt lead-sheathed bare, 600 volt, 60?C, type RL Cross Section (mm2) Description 1 AWG 16 (=1 mn2), solid 259 40.20 6.4 6 AWG 10 mm2), solid 457 100 4.6 6 AWG 10 (=6 nm2), stranded 457 112 4.1 35 AWG 1 (=35 mm2) stranded 1,798 439 4.1 95 AWG 4/0 (=95 mm stranded 3,749 929 4.0 150 300 MM (=150 mn 5, stranded 5,456 1,395 3.9 240 500 WM (=240 mm2), stranded 8,321 2,015 4.1 - 93 - S-E-C-R-E-T Approved For.Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Specifications, Prices, and Price Ratios of Electrical Equipment and Electronics in the USSR and the US (Continued) Ratio SIC No. Item USSR US Rubles per 1,000 Feet Dollars per 1,000 Feet (Ruble-Dollar) 3631 (Cont'd) Electric control cable with rubber insu- Rubber-insulated, copper conductors, lation G05T1508-49, lead-sheathed, lead-sheathed, armored with steel tape, armored with steel tape, with external with external jute covering, 600 volt jute covering, unspecified voltage Cross Section (mm2) Conductor AWG Conductor 2.5 5 14 5 (=2.5 mm2) 1,676 508 3.3 2.5 14 14 12 3,109 841 3.7 2.5 19 14 19 3,718 1,120 3.3 2.5 37, 14 37 6,431 1,816 3.5 6 6 10 5 (=6 mm2) 2,621 612 4.3 6 10 10 12 3,810 1,128 3.4 normal quality Copper round enamel Copper, round, enamel , , , Diameter (mm) AWG 2.02 6 373 43.55 8.6 0.80 20 445 47.10 9.4 0.25 30 614 60.65 10.1 0.08 4o 2,227 157.70 14.1 Field wire Coaxial cable 10.0 5.0 1 -94- Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001,-2 Approved For Release 1999/09108 : CIA-RDP79S01046A000500040001-2 Specifications, Prices, and Price Ratios of Electrical Equipment and Electronics in the USSR and the US (Continued) Pear shape, inside frosted, for 115-, 120-, and 125-volt circuits 15 watts 135 volts TU-1-3-101 15 watts 0.80 0.09 8.9 25 watts 110 volts GOSC-16o8-47 25 watts 0.87 0.09 9.7 40 watts 110 volts GOST-1608-47 40 watts 0.97 0.09 10.8 60 watts 110 volts GOS1-1608-47 60 watts 0.97 0.09 10.8 100 watts 135 volts TU-1-3-101 100 watts 1.20 0.11 10.9 150 watts 135 volts TU-1-3-101 150 watts 1.20 0.15 8.0 300 watts 220 volts GOST-2239-43 300 watts 2.50 0.34 7.4 500 watts 220 volts GOST-2239-43 500 watts 2.80 0.75 3.7 750 watts 220 volts GOST-2239-43 750 watts 5.50 2.29 2.4 1,000 watts 220 volts GOST-2239-43 1,000 watts 6.00 2.48 2.4 3661 Radios, radio and television equipment (exce t radio tubes) and radar and p , related detection apparatus Moskvich, 3-tube receiver US cost estimated for Soviet specimen . 500,x 34.95 W 14.3 VEF Super M-557, 6-tube receiver US cost estimated for Soviet specimen 1,000 57.50 17.4 Belarus, 13-tube receiver US cost estimated for Soviet specimen 2,000 iTl 199.50 10.0 Iskra, 4-tube receiver Leningrad T-1, Type 18 LK 1B, tube US cost estimated for Soviet specimen 9 x 10-3/8 inch screen, 18 tubes, 400 1 39.95 10.0 7 inches in diameter, 22 tubes, table model multichannel, table model Ratio Dollars per Unit (Ruble-Dollar) -95- S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Specifications, Prices, and Price Ratios of Electrical Equipment and Electronics in the USSR and the US (Continued) 6V6S, P.O. pentode 6Kh5S, 2X power rectifier 6s5s 6F5M, detector-triode 12N11 (12AH7GT) 5V4S, 2X power rectifier 6N9M (6sL7GT) 12SK7, RF pentode 12SR7, double diode-triode 6N8M (6SN7GT), 2X triode 6Zh5M (6J5GT), detector-triode 6x10 (6sc70T) 6627 6SJ7, RF pentode 6AC7, RF pentode 6165 (6G6GT), P.O. pentode 12J5GT, detector-triode 12SJ7, RF pentode 6SH7, RF pentode 6SQ7, double diode-triode 12SQ7, double diode-triode 12SG7, RF' pentode Ratio US Rubles per Unit Dollars per Unit (Ruble-Dollar) Megawatts. Soviet prices for entire category 3511 from source 122. Unless otherwise noted, US prices are. from source 12. AWG = American wire gauge. All Soviet prices for category 3631 are from source a4 j. Ml2 = square millimeters in diameter. MM = million circular mills. Ratio estimated on the basis of the technology of its production. Soviet prices for. 3651 are from source 125/. Retail price is from source 126 All US prices for consumer radios are retail prices from source 12 Retail price. 128 Retail price is from source 12 . Retail price., 1 0 Retail price .1 1 Retail price. a22 US and Soviet prices are 1949 prices adjusted to 1950 prices by using price index shown 6v6GT 6X5GT 6C5GT 6F5GT 12AH7GT 5v4G 6SL7GT 12SK7 12SR7 6SN7GT 6J5GT 6SC7GT 66117 6SJ7 6AC7 6H6GT 12J5GT 12SJ7 6sH7 6sQ7. 12SQ7 12SG7 25X1A5a1 11.85 1.57 7.5 11.25 1.29 8.7 7.50 0.80 9.4 7.50 0.80 9.4 15.00 1.29 11.6 9.30 0.74 12.6 15.00 1.18 12.7 12.45 0.92 13.5 13.50 0.98 13.8 15.00 1.08 13.9 10.50 0.74 14.2 15.00 0.98 15.3 13.50 0.88 15.3 12.52 0.81 15.5 22.50 1.42 15.8 14.02 0.88 15.9 12.00 0.74 16.2 13.50 0.82 16.5 19.05 1.08 17.6 13.50 0.74 18.2 13.50 0.74 18.2 18.75 0.98 19.1 - 96 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09108 : CIA-RDP79SO1046A000500040001-2 Table 34+ Weighted Price Ratios of Electrical Equipment and Electronics in the USSR and the US Value Weights Weighted Ratio SIC No. Item Price Ratio US (Rubles per Dollar) (Million US $) USSR (Million Rubles) ) US Mix (Rubles per Dollar) ( P ~ Soviet Mix (Rubles ( per Dollar) 3511 Turbines 454.0 3.0 / 3.0 Steam 4.0 a / 343.0 Hydro 2.0 ^ ' 1 111.0 3631 Insulated wire and cable 6.2 a/ 5.0 , 3651 Electric lamps 7.5J 5.4J 3661 Radios, radio and television equipment (except radio tubes), and radar and related detection apparatus 3662 Radio tubes 13.2 J 12.6 J 14.1 1 13.2 1 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T 13. Communications Services. a. General. The sectors of the communications industry considered in this report include the telephone, telegraph, and postal systems. Not in- cluded in the analysis are special, functionalized communications sys- tems, such as those maintained by the military, police, and civil air fleet. Telephone, telegraph, and mail service are believed to be repre- sentative of the sectors of the communications industry being considered and are reasonably comparable in both countries. It should be pointed out that in dealing with a service, as opposed to a commodity, it is difficult, if not. impossible, to measure value accurately. No attempt has been made here to weight the services se- lected in regard to efficiency or quality. Instead, the main reliance has been placed on selecting services with the same general character- istics in both the US and the USSR. b. Derivation of Price Ratios. In developing ruble-dollar price ratios for the selected ser- vices it was necessary to determine typical charges for comparable ser- vices. In both the US and the USSR, charges for long-distance tele- phone calls are based on distance spanned and time consumed in conver- sation. Although it is possible to arrive at an average charge for a typical call in the US, corresponding data forthe USSR are not avail- able-for such a computation. Therefore, instead of utilizing an aver- age charge for the US long-distance telephone call, the schedules of rates for the two countries-were compared. 133 Ratios were cal- culated. for each distance unit in the schedules and an arithmetic aver- age of these ratios was taken as a representative ratio. US home telephone subscription rates vary by locality, numbers of telephones in the exchange, and type of service offered. The charge ranges from about $3 to $7.50 per month. 134A typical charge appears to be $t+ per month, or $18 per year. The yearly Soviet subscription fee for a home telephone is 300 rubles. 135 - 98 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Business telephone subscription charges in the US vary in the same manner as home telephone charges and range between $5 and $15 per month. 136 It is believed that $8.50 per month, or $102 per year, represents a typical charge. The Soviet charge for a business or enter- prise telephone is 500 rubles per year. 137 In the US, there are three types of telegrams -- full rate, day letters, and night letters. The charges for these three services vary according to the number of words sent, the distances spanned, and the time in delivery. In the USSR, there are also three types of tele- grams -- common, urgent, and lightning. The charges for these three services vary with number of words and speed of delivery, but the charge does not appear to-vary in proportion to distance spanned. From the fragmentary data available on the Soviet telegraph service, it is impos- sible to correlate Soviet telegram classifications with those of the US. Since common telegrams are the most typical sent in the USSR and full- rate telegrams the most typical in the US, these two services were selec- ted as representative of the telegraph service in the two countries. The average full-rate telegram in the US costs $0.89. This rate was determined by dividing the total yearly revenue for full-rate messages by the number of telegrams sent. 138 The average number of words per telegram is not known, but it would exceed the base rate of 10 words. The Soviet charge for a 10-word common telegram is 4 rubles. 139 The Soviet average telegram will also exceed the minimum wordage, and it is therefore assumed that an additional 12-1/2 percent of the base charge would be a reasonable addition for the excess wordage, yielding an aver- age charge of 4.5 rubles. To check the validity of these assumptions, it was found that the average US telegram price of $0.89 would buy a full-rate, 10-word telegram sent for a distance of about 1,100 miles. To call this distance on the telephone in the US would cost $1.82 for a ratio of telephone charge to telegram charge of about 2 to 1. To call 1,100 miles in the USSR costs about 8.20 rubles. When this charge is compared with the above-determined average telegram charge of 4.5 ru- bles it yields a ratio of about 1.8 to 1. Thus the ratios of tele- phone charges to telegram charges in the two countries appear consis- tent, and as they are close substitutes for rapid communications this ratio tends to validate the comparability of the services in the two countries. Letters and post cards mailed are believed to be represen- tative of the mail service category. The price for mailing a letter Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 in the US in 1950 was $0.03, and in the USSR 0.40 rubles. 140 The price for mailing a post card in the US in 1950 was $0.01, and in the USSR 0.25 rubles. 141 c. Derivation of Value Weights. Revenues received from the various communications services have been used as value weights for both the US and the USSR. In instances where revenue data were not already published, volume figures have been combined with price data to determine revenue values. Various considerations were made in arriving at volume data for the different services, and for this reason each service will be discussed separately. (1) Long-Distance Telephone Calls. Total revenue from long-distance telephone calls in the US in 1950 was published. 142 The corresponding Soviet revenue figure was developed by taking the average rate for US long-distance calls -- $0.52 -- and multiplying it by the ruble-dollar ratio pre- viously computed -- 4.5 to 1 -- to get a Soviet average rate per call of 2.34 rubles. This rate was multiplied by the number of calls 143 to get the total revenue figure. (2) Home or Private Telephone Subscriptions. The number of home telephones existing in the US in 1950 was 30 million. 144 This figure included extension telephones, extra telephones, telephones used only part time, and dead telephones not connected. It was assumed that only a net of 25 million of these 30 million telephones would represent full-year, full-rate subscribers. The number of home telephones in the USSR in 1950 on a full-year, full-rate basis was estimated to be 300,000 out of a total number of 1.4 million. 14 The ratio of home telephones to business telephones in the USSR is not known, but home telephones are known to be in the minority, and this division appeared reasonable. The net number of US home telephones -- 25 million,-- was multiplied by the average subscription rate of _$48 to get total reve- nue. The Soviet subscription charge of _300 rubles was multiplied by the number of home subscribers -- 300,000 -- to arrive at total reve- nue. S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T (3) Business or Enterprise Telephone Subscriptions. The total number of business telephones in the US in 1950 was 13 million. 146 It has been assumed that only 10 million of these would represent full-rate, full-year subscribers.' The number of business or enterprise telephones in the USSR -- 1.1 million -- again was arbitrarily selected as reasonable from the total number of telephones in the USSR. The total revenue for both the US and USSR has been com- puted by multiplying the number of subscribers by the appropriate charge. (4) Telegrams. Total revenue in the US from telegrams in 1950 was $151.4 million. 14 Soviet telegram revenue of 1,090,071,000 rubles was obtained by multiplying the US average price of $0.83 per telegram (average for all telegrams sent in the US) by the ruble-dollar ratio of 5.1 to 1 for telegrams to get an average Soviet price per telegram of 4.23 rubles. This price was then multiplied by the number of telegrams sent in the USSR in 1950 -- 257.7 million. 148 (5) Mail Service. The volume of letters and post cards mailed -- 22 billion and 3.9 billion, respectively 149 -- has been multiplied by the postage fees to arrive at total US revenue data. Volume figures for letters and post cards mailed in the USSR -- 2,278 million and 570 million, respectively -- were derived by taking the 1929 and 1937 figures reported by the UN 150/ and making a straight extrapolation through time to 1950. The ratio be- tween letters and post cards was estimated to be 4 to 1, which appears reasonable in light of the US ratio for these categories. The volume figures thus derived were multiplied by the postage rates, giving revenue estimates. * To verify the figures of 25 million home and 10 million business subscribers, these figures were multiplied by their respective yearly subscription rates, and the resulting total revenue of $2,220 million compares favorably with the total revenue of these services of $2,287 million published by the FCC. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Table 35* gives specifications, prices, and price ratios of communications services in the USSR and the US. Table 36** gives weighted price ratios of communications services in the USSR and the US. l4-. Electric Power. Rate structures for electric power sold to consumers, in both the USSR and the US, are very complex and differ considerably in their makeup. Industrial power rates in both countries are based on two charges -- a use charge, based on the kilowatt-hours of elec- tricity consumed during a billing period, and a demand charge, based either on the maximum power demanded during a billing period or on the maximum capacity of installed electrical equipment. In- dustrial power rates differ for the two countries in that in the US the rate charged industrial consumers decreases as the quantity con- suiaed increases, whereas in the USSR the rate usually remains stable regardless of the amount of power consumed. Also, rates in the USSR are often inflated to discourage industries from locating in c-ertain areas and are often deflated to -subsidize certain industries. Power rates for most residential and commercial consumers (stores, offices, and the like) in the USSR are on a "flat rate" basis regard- less of the local production and distribution costs. For example, residential consumers in both Moscow and Siberia pay the same rate for electric power. Often the residential consumer is merely charged a flat monthly rate depending upon the number and size of light bulbs in his dwelling. In addition, nonessential, or "luxury," users, such as churches, restaurants, and gasoline filling stations, are charged exorbitant rates. On the other hand, power rates for residential and commercial consumers in the US vary considerably from area to area and usually reflect actual production and distribution costs, and flat rates are virtually unknown. The rate for industrial consumers in the US has been derived by taking the average 1950 rate per kilowatt-hour for the category "Large Light and Power" as defined by Edison Electric Institute. 151/ Table 35 follows on p. 103. Table 36 follows on p. 104. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1499/09108 : CIA-RDP79SO1046A00050004000i-2 Specifications, Prices, and Price Ratios of Communications Services in the USSR and the US 4811 Telephone communications (wire and radio) Telephone service 4821 Telegraph c o cations (wire and radio) Telegraph service 4899 Ccumunications services, n.e.c. J Mail service US Long-distance telephone calls Long-distance telephone calls Home or private telephone subscription Home or private telephone subscription Business of enterprise telephone subscription Business or enterprise telephone subscription Letters Letters Post cards Post cards Rubles per Unit Dollars per Unit Ratio (Ruble-Dollar) 4.5 300 48.00 6.2 500 102.00 4.9 0.40 0.03 13.3 0.25 0.01 25.0 - 103 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Table 36 Weighted Price Ratios of Communications Services in the USSR and the US SIC No. Item (Rubles per Dollar) (Million US $) (Million Rubles) (Rubles per Dollar) (Rubles per Dollar) Communications services 4,250.8 3,063.9 6.6 6.4 4811 Telephone service 3,400.4 920.1 5.2 4.8 Long-distance telephone calls 4.5 1,180.4 280.1 Home or private telephone subscriptions 6.2 1,200.0 90.0 Business or enterprise subscriptions 4.9 1,020.0 550.0 4821 Telegraph service Telegrams 4899 Mail service Letters Post cards 13.3 25.0 151.4 1,090.1 5.1 5.1 699.0 1,053.7 14.0 14.2 66o.o 911.2 39.0 142.5 S-E-C-R-E-T Approved For Release 19.99/09408 : CIA-RDP79S01046A000500040001,-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 For the USSR an average rate for electric power.consumed by in- dustry has been computed by using an average rate for each of 53 power supplying organizations. ' The average rate for each area was weighted against power consumption 1 3 for the corresponding area, thus yielding a weighted average rate for the USSR for in- dustrial consumers. Rates used in this computation were in effect in 1949. A rate reduction of 10 percent was made in January 1950. It is not clear whether the reduction applied to the annual charge based on transformer capacity as well as the rate per kilowatt-hour consumed. For purposes of this research aid, it has been assumed that the reduction applied to both. Some industrial plants and municipalities in both countries generate their own power. This power has been arbitrarily priced at the amount these enterprises would have paid had the power been pur- chased from public supply sources. The rate for residential consumers in the US has been derived by taking the average of the category 154/ for 1950. The average rate for commercial consumers in the US was assumed to be approximately equal to the rate for the category "Small Light and Power" as defined by Edison Electric Institute. IZ/ The average rate for residential and commercial consumers was derived by weighting the two rates by the proportion of power consumption accounted for by each category. According to, a 1949 Soviet source, 156 residential and commercial consumers in the USSR are divided into nine rate groups. The first and second groups are basically residential consumers and are charged 35 and 40 kopecks per kilowatt-hour, respectively. The remaining groups fall into a category referred. to as "commercial" in the US. The rates for these groups vary from 30 kopecks per kilowatt-hour for transportation terminals, military barracks, and the like to 250 kopecks per kilowatt-hour for churches, restaurants, and gasoline filling stations. There are no available data. on power consumption for each of the nine rate groups. An analysis of the type of consumers included in each group indicates that the second group, with a rate of 40 kopecks per kilowatt-hour, would account for the largest proportion of power consumption in the residential and commercial category. The next two largest groups would probably be those with rates of 35 and 60 kopecks per kilowatt-hour. An average rate of 40 kopecks per kilowatt-hour is assumed to be realistic. This rate should be considered as a minimum, Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 however, as the average rate may be as high as 50 kopecks per kilo- watt-hour. No adjustment has been made for the 1950 price reduction as it is believed that this reduction did not affect rates for resi- dential and commercial consumers. There is evidence that the 1949 prices for these consumers were still effective in 1955. 157 Gross value weights for industrial, residential, and commercial consumers for both countries have been computed by multiplying the amount of electric power consumed by the average selling price per kilowatt-hour. Table 37* gives specifications, prices, and price ratios of electric power in the USSR and the US. Table 38** gives weighted price ratios of electric power in the USSR and the US. 15. Rail Freight Transportation. Ruble-dollar ratios based on railroad freight rates, as shown in Table 39,*** range from 2.3 to 1 for manufactured iron and steel to 6.2 to 1 for iron ore with a weighted average ratio based on US revenue data of 4.2 to 1 for all commodities. The ratios for individual com- modities are based on US revenue per ton for the US average length of haul, compared with the Soviet freight rate for the US average length of haul. The results from such a comparison are believed to have a relatively low margin of error, with a few exceptions, because of the excellent data available on US traffic and revenue and Soviet freight tariff. Ruble-dollar ratios for individual commodities based on Soviet freight rate per ton for Sovietaverage length of haul, compared with the US revenue per ton for the Soviet average length of haul, were not determined, because data on Soviet average length of haul are avail- able only for major commodity groups and because freight rates vary for some of the individual commodites within a major commodity group. In addition, available US revenue data are for relatively large mileage blocks, so that the US revenue figure based on Soviet average length of haul might have a significant margin of error. Table 37 follows on p. 107. Table 38 follows on p. 108. Table 39 follows on p. 109. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09708 : CIA-RDP79S01046A00050004000i -2 Specifications, Prices, and Price Ratios of Electric Power in the USSR and the US Specifications Kopecks Cents Ratio SIC No. Item USSR US per Kilowatt-Hour per Kilowatt-Hour, (Ruble-Dollar) 4911 Electric light and power Industrial Residential and commercial 15.6 1.01 15.4 4o.o 2.78 14.4 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Weighted Price Ratios of Electric Power in the USSR and the US Table 38 Price Ratio US USSR SIC No. Item (Rubles per Dollar) (Million US $) -a/ (Million Rubles) 4911 Electric light and power 5,182.0 14,160.0 Industrial Residential and Commercial 15.4 14.4 1,929.0 9,360.0 1 cf 3,253.0 4,800.0 US Mix Soviet Mix (Rubles per Dollar) (Rubles per Dollar 14.8 15.1 a. Consumption data used in computing values are from source 15th . b. Assumed that industry consumed about two-thirds of the electric power produced in the USSR during 1950-55. 159 c. Consumption data used in computing value are from source ILO/. -108- Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79S01046A00050004000i-2 Table 39 Calculation of Ruble-Dollar Ratios for Rail Freight Transportation Freight Revenue Soviet 1949 Soviet 1950 Metric Tons Received US Average US Average Rate per Rate per Short Tons Originated, US, 1951 b by US Railroads, Short-Line Haul per Short-Line Haul per US Revenue per Metric Metric Ton for US Average Ratio of 1950 to Metric Ton, for US Average Originated, (Thousand 1951 c Short Ton J Short Ton e/ Ton $) Haul J 1949 Soviet Haul J Ratio Commodity US, 1951 J* Metric Tons) US (Miles) (Kilometers) (us (Rubles) Rate Yl (Rubles) (Ruble-Dollar) Wheat 365,472 332 2,186,134 392 630 6.60 28.32 0.85 24.0 3.6 Corn 189,238 171 1,013,653 368 590 5.94 27.12 0.85 23.0 3.9 Irish potatoes 37,881 34 653,791 1,093 1,759 19.23 97.75 0.80 78.2 4.1 Fresh meat 25,592 23 763,738 943 1,517 33.20 187.54 0.80 150.0 - 4.5 Wheat flour 93,934 85 605,273 658 1,059 7.11 47.30 0.85 40.2 5.6 Food products, n.e.c. 104,241 94 1,650,029 925 1,488 17.55 88.50 0.80 70.8 4.0 Anthracite coal 281,638 255 899,087 187 300 3.54 13.44 0.90 12.0 3.4 Bituminous coal 3,592,931 3,259 10,998,411 300 482 3.37 19.83 0.90 17.8 5.3 Coke 245,881 222 728,234 197 316 3.28 14.29 0.90 12.9 3.9 Petroleum products Gasoline 117,508 107 593,649 242 389 5.55 36.63 0.90 33.0 6.o Fuel and road oils 118,780 107 649,625 343 550 6.08 31.63 0.90 28.5 4.7 Refined petroleum, n.e.c. 83,283 75 893,454 587 944 11.91 57.69 0.90 51.9 4.4 Ores Iron ore 1,520,103 1,379 2,092,905 158 254 1.52 l0.40 0.90 9.4 6.2 Iron and steel Manufactured iron and steel 327,490 296 3,239,333 437 702 10.94 27.71 0.90 24.9 2.3 Iron and steel pipe 84,394 76 1,385,341 792 1,274 18.22 58.63 0.90 52.8 2.9 Scrap iron 244,590 222 1,164,507 215 346 5.25 16.93 0.90 15.2 2.9 - log - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S -E-C -R-E-T Calculation of Ruble-Dollar Ratios for 'Rail Freight Transportation (Continued) Freight Revenue Soviet 1949 Soviet 1950 Metric Tons Received US Average US Average Rate per Rate per Short Tons Originated, US, 1951 t by US Railroads, Short-Line Haul per Short-Line Haul per US Revenue per Metric Metric Ton for US Average Ratio of 1950 to Metric Ton, for US Average Originated, (Thousand 1951 c Short Ton J Short Ton 5 Ton J Haul / 1949 Sovilet Haul 1 Ratio Commodity US,.1951 J* Metric Tons) US (Miles) (Kilometers) (us (Rubles) Rate J (Rubles (Ruble-Dollar) Mineral building materials Gravel and sand 584,591 530 665,093 85 137 1.26 8.50 0.75 6.4 5.1 Crushed stone 486,087 441 700,480 117 188 1.59 10.36 0.75 7.8 4.9 Phosphate rock 205,188 186 613,699 295 474 3.30 15.13 0.90 13.6 4.1 Lumber, shingles 280,123 254 3,566,262 1,090 1,754 14.03 72.05 0.85 61.2 4.4 Portland cement 286,107 260 1,244,865 170 273 4.80 19.00 0.90 17.1 3.6 Chemicals Sodium products 87,283 79 659,477 411 660 8.33 35.97 0.70 25.2 3.0 Fertilizers, n.e.c. 123,599 112 564,266 291 567 5.04 26.36 0.70 18.4 3.7 Chemicals, n.e.c. 83,712 76 1,225,770 808 1,300 16.13 65.04 0.70 45.5 2.8 Machinery and equipment Machinery, machines 32,704 30 865,018 803 1,292 28.83 123.00 0.80 98.4 3.4 Passenger automobiles 14,557 13 705,822 787 1,266 54.29 269.00 0.57 153.3 2.8 Vehicle parts, n.e.c. 74,380 67 1,664,942 751 1,208 24.85 118.50 0.80 94.8 3.8 Paperboard, fiberboard 56,971 52 727,881 710 1,142 14.00 67.60 0.70 47.3 3.4 Feed 177,579 161 806,318 363 583 5.03 27.12 0.85 23.0 4.6 Total or average, all commodities 14,175,284 12,857 77,356,097 344 553 6.02 to Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A00050004000 i -2 Table 39 Calculation of Ruble-Dollar Ratios for Rail Freight Transportation (Continued) a. One percent sample. 1 1 b. One percent sample. Data in column 1 multiplied by 0.907 to convert to metric tons. c. 162/ . 1 3 e. Data in column 4 multiplied by 1.609 to convert to kilometers. f. Column 3 divided by column 2. g. All of the commodities listed were obtained from source 164 with the following exceptions: for phosphate rock the rate for ores and ore concentrates was used; for refined petroleum, n.e.c., the rate for kerosine was used. h. Rate reductions for 1950 over 1949 from source 1651. i. Column 7 multiplied by column 8. j. Column 9 divided by column 6, with the exception of the ratio for all commodities. This ratio was obtained by weighting the individual ruble-dollar ratios by the freight revenues for each commodity given in column 3. k. Not elsewhere counted. - ill - S -E -C -R-E -T Approved For Release 1999/09/08 CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T Specifications, Prices, and Price Ratios of Highway Construction and Multistory Housing in the USSR and the US Rubles Dollars Ratio Type of Construction USSR US per Unit per Ui;dt (Ruble-Dollar) Highway Black top highway, 6 meters Bituminous concrete highway, 517,882 45,970.00 (19.68 feet) wide, Leningrad 20 feet wide, N.Y. State per kilo- per kilo- meter a/ meter 11.3 Multistory at Kishinev, Multistory (low-cost 1,407 99.10 Moldavian SSR, 1950-51 housing), Buffalo, N.Y., per square per square 1950-52 meter C meter 15.4 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T APPENDIX C GAPS IN INTELLIGENCE The lack of information on Soviet prices in 1950 for various seg- ments of the economy represents a major gap in intelligence. Price data are not available for ordnance items, leather and leather products, and miscellaneous manufactures. Price data are inadequate or unavailable for the,following machinery and equip- ment items -- agricultural machinery (other than tractors), loco- motives and railroad equipment, aircraft, ships and boats, com- mercial machines, food products machinery, printing machinery, petro- leum refining equipment, and most chemical equipment. Currently, available ruble-dollar ratios for construction are inadequate. Research is being continued, however, in order to exploit available data and increase the coverage for this sector. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 S-E-C-R-E-T APPENDIX D SOURCE REFERENCES Evaluations, following the classification entry and designated "Eval.," have the following significance: S ource of Information Doc. - Documentary 1 - Confirmed by other sources A - Completely reliable 2 - Probably true B - Usually reliable 3 - Possibly true C - Fairly reliable 4 - Doubtful D - Not usually reliable 5 - Probably false E F - Not reliable - Cannot be judged 6 - Cannot be judged "Documentary" refers to original documents of foreign governments and organizations; copies or translations of such documents by a staff officer; or information extracted from such documents by a staff officer, all of which may carry the field evaluation "Documentary." Evaluations not otherwise designated are those appearing on the cited document; those designated "RR" are by the author of this report. No "RR" evaluation is given when the author agrees with the evaluation on the cited document. 25X1A5a1 Approved For Release 1999/09/08 : CIA-RDP79S01046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 25X1A5a1 3. Organization for European Economic Cooperation. An International Comparison of National Products and the Purchasing Power of Currencies, by Milton Gilbert and Irving Kravis, nd. U. Eval. RR 2. 4. Bureau of the Budget. Standard Industrial Classification Manual, vol 2, May 49. U. Eval. RR 2. 5. CIA. CIA/RR 78, The Soviet Economy in 1955 and Plans for 1956-61, 21 Sep 56, p. 90-91. S. 6. President of the US. Economic Report of the President Transmitted to Congress, 24 January 1956, p. 1 U. 7. 8. 9. 10. Kaser, M.C. "Soviet Statistics of Wages . 42. U. Eval. RR 3. 25X1A5a1 and Prices," Soviet Studies, 11. 25X1A5a1 12. President of the US (6, above), p. 165. U. 13. Labor, Bureau of Labor Statistics. Industry Classification Manual for the 1947 Interindustry Relations Study, 20 Mar 53. U. Eval. RR 2. 14. Labor, Bureau of Labor Statistics. Table I-- Interindustry Flow of Goods and Services, by Industry of Origih and Destination, Oct 52. U. Eval. RR 2. 15. 25X1A5a1 16. Protopopov, S.N. Analiz khoz a stvennoy deyatel'nosti stroyek i stroitel'nykh organizatsiy Analysis of the Economic Activity of Building and Construction Organizations), Moscow, 1952, p. 76, 251, 307. U. Eval. RR 2. 17. Kaser, op. cit. (10, above). 18. CIA. ORB Project 14.1541, Soviet Investment Policy and Selective Analysis of Investment Statistics (to be published). S. 19. Ibid. 20. CIA. ORR Project 14.441, Soviet National Accounts in Current Rubles for 1953 (to be published). S. 21. CIA. CIA/RR 78 (5, above), p. 93-94. S. 22. Ibid., p. 90-91. S. 23. Ibid., p. 93-94. S. - 116 - Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 24. President of the US (6, above), p. 165. U. 25,. Ibid., P. 199. U. 26. Labor, Bureau of Labor Statistics. Median Prices for Selected Items of Clothing, Shoes, and Textile Housefurnishings, Mar 50, 25X1A2g unpublished. U. Eval. RR 2. 27. 28. Labor, Bureau of Labor Statistics. Median Prices for Selected Items of Clothing, Shoes, and Textile Housefurnishings, Mar 50, unpublished. U. Eval. RR 2. 29. Commerce, Bureau of the Census. Special rpt P-E no 1B, Occupational Characteristics, 1956. U. Eval. RR 2. 30. Commerce. "Incomes of Physicians, Dentists, and lawyers, 1949-51," Survey of Current Business, Jul 52, p. 5-7. U. Eval. RR 2. 31. Ibid. 32. Commerce, Bureau of the Census. Special rpt P-E no 1B, Occupational Characteristics, 1956. U. Eval. RR 2. 33. Commerce. National Income a Supplement to Survey of Current Business, 1954, p. 197. U. Eval. RR 2. 34. Ibid., p. 201. U. Eval. RR 2. 35. Commerce, Bureau-of the Census. Statistical Abstract of the US, 1952, 73d, 1952, p. 219. U. Eval. RR 2. 36. Commerce. National Income a Supplement to Survey of Current Business, 195 , p. 207. U. Eval. RR 2. 37. Health, Education, and Welfare. "Social Welfare Expenditures, Fiscal 1955," Social Security Bulletin, Oct 56. U. Eval. RR 2. 38. Commerce. Survey of Current Business, Jul 56, p. 21. U. Eval. RR 2. 39. Commerce, Bureau of the Census. Statistical Abstract of the US, 1956, 1956, p. 404. U. Eval. RR 2. 40. Commerce. National Income, a Supplement to Survey of Current Business, 1954, p. 209. U. Eval. RR 2. 41. Ibid., p. 208. U. Eval. RR 2. 42. Commerce, Bureau of the Census. Summary of Governmental Finances in 1955, 20 Aug 56, p. 7. U. Eval. RR 2. 43. Ibid. 44. Commerce. Survey of Current Business, Jul 56, p. 22. U. Eval. RR 2. 45. Ibid., p. 21. U. Eval. RR 2. 46. Commerce, Bureau of the Census. Statistical Abstract of the US, 1956, 1956, p. 243. U. Eval. RR 2. 47. CIA. FDD Summary no 794, 18 Jan 56, p. 120. OFF USE. Eval. RR 1. 48. USSR, Verkhovnyy Sovet SSSR. Zasedaniya verkhovnogo soveta SSSR pervaya sessiya, stenograficheskoy otchet (Proceedings of the Supreme Soviet of the USSR, 1st Session: Stenographic Report), Moscow, 1954, p. 227. U. Eval. Doc. (hereafter referred to as USSR, Verkhovnyy Sovet SSSR. Zasedaniya) - 117 - S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 49. Finansy SSSR, no 4, Apr 56, p. 19. U. Eval. RR 1. 50. CIA. FDD Translation no 566, 29 Jun 56, p. 247. OFF USE. Eval. Doc. 51. Ibid., p. 195. OFF USE. Eval. Doc. 52. Commerce. National Income, a Supplement to Survey of Current Business, 1954, p. l9 b. U. Eval. RR 2. 53. Ibid., p. 201. U. Eval. RR 2. 54. USSR, Ministry of Finance. Tsennik dlya sostavleniya smet v tsenakh de stvu shchikh na 1 Yanvarya 1950 (Price List for Making Estimates in Prices Effective 1 January 1950), pt 1, Moscow, 1950, p. 415-417. U. Eval. Doc. (hereafter referred to as USSR, Ministry of Finance. Tsennik dlya sostavleniya) 55. USSR. Spravochnik metallurgy o tsvetnym metallam (Metallurgist Handbook of Nonferrous Metals) vol 1, Moscow, 1953, p. 799-828. U. Eval. Doc. 56. NIS 26, sec 62-B, p. 62-9, 62-10. C. 57. Interior, US Bureau of Mines. Minerals Yearbook 1951, 1954, p. 316. U. Eval. RR 2. 58. Interior, US Bureau of Mines. Minerals Yearbook 1950, 1953, P? 363-364. U. Eval. RR 2. 59. Interior, US Bureau of Mines. Circular no 7538, Average Heating Values of American Coals By Rank and By states, Dec 49, p. 2. U. Eval. RR 2. 60. CIA. FDD Translation no 566, 29 Jun 56. OFF USE. Eval. Doc. 61. Interior, US Bureau of Mines. Minerals Yearbook 1951, 1954, p. 462. U. Eval. RR 2. 62. Ibid., p. 316. U. Eval. RR 2. Interior, US Bureau of Mines. Minerals Yearbook 1950, 1953, P. 363-364. U. Eval. RR 2. 63. Commerce,-Bureau of the Census. Census of Manufactures 1947, vol 2, 1949, p. 386-399. U. Eval. RR 2. 64. USSR. Spravochnik-tsennik na osnovnyye stroitel'nyye, tekhnicheskiye i vspomogatel'nyye materialy proizvodstvenno-tekhnicheskogo naznacheni a ihstrumenty i avtozapchasti v tsenakh 1950 goda, uchetom snizheniya tsen 1 Yula 1950 (Price Handbook on Basic Construction, Technical, and Supplementary Materials for Technical Production Purposes, Instruments, and Automotive Spare Parts, 1950 Prices, Taking into Account the 1 July 1950 Price Reductions), vol 2, pt 1, Baku, 1950. U. Eval. Doc. (hereafter referred-to as USSR. Spravochnik-tsennik, vol 2, pt 1) 65. Oil, Paint and Drug Reporter, 13 Feb 50. U. Eval. RR 2. 66. USSR, Ministry of Finance. Tsennik dlya sostavleniya (54, above), P? 390. U. Eval. Doc. 118 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 25X1A5a1 67. 68. USSR, Ministry of Finance. Tsennik dlya sostavleniya (54, above), p. 338. U. Eval. Doc. 69. Ibid. 70. Ibid., p. 391. U. Eval. Doc. 71. Perry, John H., ed. Chemical Business Handbook, New York, 1954. U. Eval. Doc. 72. Labor, Bureau of Labor Statistics. Unpublished Industry Report. U. 73. Perry, op. cit. (71, above). 74. Platt's Oil Price Handbook and Oilmanac for 1950, Cleveland, 1951. val. RR 2. 75. USSR. Spravochnik-tsennik, vol 2, pt 1 (64, above). 76. Interior, US Bureau of Mines. Minerals Yearbook 1951, 1954, p. 992-1011. U. Eval. RR 2. 77. Commerce, Bureau of the Census. Annual Survey of Manufactures, 1951, p. 86-87. U. Eval. RR 2. 78. Interior, US Bureau of Mines. Minerals Yearbook 1951, 1954, p. 246. U. Eval. RR 2. 79. Commerce, Bureau of the Census. Annual Survey of Manufactures, 1951, p. 209. _ U. Eval. RR 2. 80. USSR, Ministry of Machine Tool Building. Preyskurant optovykh tsen na 25X1 A5a181? abrazivn e izdeliya (Price List of Wholesale Prices for Abrasive Products), Moscow, 1949. U. Eval. Doc. 82. Engineering News Record, 6 Jul 50, p. 93, 97, 98? U. Eval. RR 83. Stroitel'na a promyshlennost', no 8, Aug 55, p. 39?' U. Eval. RR 2. 84. Ibid., p. 38-42. Eval. RR 2. 85. Means, Robert S. Building Construction Cost Data, 1951, Duxbury, Mass., 1951. U. Eval. RR 2. 86. Labor, Bureau of Labor Statistics. Prices and Price Relatives for Individual Commodities in the Revised Index 19 7-50, group 11, Feb 52. U. Eval. RR 2. Labor, Bureau of Labor Statistics. Prices and Price Relatives for Individual Commodities 1951-53, group 11, Oct 54. U. Eval. RR 2. Labor, Bureau of Labor Statistics. Base Value"Weights for Groups, Subgroups, Product Classes and Individual Commodities, Apr 52, p. 5. U. Eval. RR 2. 87. CIA. CIA/RR RA-9, Ruble-Dollar Ratios for Prices of Machine Tools, Metalforming Machinery, Textile Machinery, and Abrasive Products, 10 Oct 56, p? 35? C. Eval. RR 2. 88. USSR. Spravochnik-tsennik, vol 2, pt 1 (64, above), p. 199. U. Eval. Doc. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 S-E-C-R-E-T 89. American Iron and Steel Institute Yearbook, 1950, New York, 1954. U. Eval. RR 2. 90. Commerce, Bureau of the Census. Annual Survey of Manufactures, 1951, p. 211-213. U. Eval. RR 2. 91. Ibid., p. 211. U. Eval. RR 2. 92. Interior, US Bureau of Mines. Minerals Yearbook, 1951, 1954. U. Eval. RR 2. 93. USSR, Ministry of the Coal Industry. Nomenklaturnyy spravochnik i tseny na materialy i oborudovaniye primenya em e v ugol'noy promyshlennosti: gruppa II: tsvetnyye metally (Nomenclature Hand- book and Prices for Materials and Equipment Used in the Coal Industry: Group II: Nonferrous Metals), Moscow, 1950. U. Eval. Doe. (hereafter referred to as USSR, Ministry of the Coal Industry. Nomenklaturnyy spravochnik) 94. 25X1A2g 95. 96. Steel: the Magazine of Metalworking, Cleveland, 7 Jan 52, P. 558. U. Eval. RR 2. 97. USSR, Ministry of the Metallurgical Industry. Preyskurant optovykh tsen na kachestvennu stal' (List of Wholesale Prices for Standard Steel), MObCOW, 1949. U. Eval. Doc. 98. 25X1A2g 99. Steel: the Magazine of Metalworking, Cleveland, 7 Jan 52, p. 558. U. Eval. RR 2. 25X1A5a1 25X1A5a1 101. USSR, Ministry of Heavy Machine Building. -Preyskurant optovykh tsen na lit' ye iz serogo chuguna, lit'ye stal'noye okovki molotovnyyei pressovyye shtampovki (Price List of Wholesale Prices for Gray Iron Castings, Cast Steel, Forged, Pressed, and Stamped Products), Moscow, 1949. U. Eval. Doc. (hereafter referred to as.USSR, Ministry of Heavy Machine Building. Preyskurant tsen na lit'ye) 102. American Iron and Steel Institute Yearbook, 1950, New York, 1954. U. Eval. RR 2. 103. USSR, Ministry of'Heavy Machine Building. Preyskurant tsen na lit'ye (101, above). 104. Commerce, Bureau of the Census. Annual Survey of Manufactures, 1951, p. 211-213. U. Eval. RR 2. 105. 25X1A5a1 106. USSR, Ministry of the Coal Industry. Nomenklaturnyy spravochnik (93, above), p. 261-262. U. Eval. Doc. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 107. Interior, US Bureau of Mines. Minerals Yearbook, 1951, p. 791. U. Eval. RR 2. _ 25X1A2g 108. log. 110. USSR, Ministry of Finance. Tsennik dlya sostavleniya smet v tsenakh 1949 g. (Price Handbook for Making Estimates in Prices of 1949), pt 3, Moscow, 1949. U. Eval. Doe. 111. Avtomobil'nyy transport, no 11, 1955? 7 U Eval. RR 2. 112. USSR, Ministry of Machine Tool Building.. . U. Preyskurant optovykh tsen na metallorezhushchiye stanki i kuznechno-pressovo e oborudovaniye (Price List of Wholesale Prices for Metalcutting Machine Tools and Forging and Pressing Equipment), Moscow, 1950. U. Eval. Doc. 113. Office of Price Stabilization. Base Prices of Machine Tools, 2 Feb 53. U. Eval. RR 2. 114. Labor, Bureau of Labor Statistics. Wholesale Price Indexes for Special Groupings of Machinery and Steel Products, Washington, 1952. U. Eval RR 2. 115. Labor, Bureau of Labor Statistics. Prices and. Price Relatives for Individual Commodities in the Revised Index 1947-50., group 11, Feb 52. U. Eval. RR 2. Labor, Bureau of Labor Statistics. Prices and Price Relatives for Individual Commodities 1951-53, group 11, Oct 57-.U. Eval. RR 2. Labor, Bureau of Labor Statistics. Base Value Weights for Groups, Subgroups, Product Classes and Individual Commodities, Apr 52, p. 5. U. Eval. RR 2. 116. Office of Price Stabilization. Base Prices of Machine Tools, 2 Feb 53. U. Eval. RR 2. 117. Labor, Bureau of Labor Statistics. Prices and Price Relatives for Individual Commodities in the Revised Index 1947-50, group 11, Feb 52. U. Eval.RR 2. Labor, Bureau of Labor Statistics. Prices and Price Relatives for Individual Commodities 1951-53, group 11, Oct 54. U. Eval. RR 2. Labor, Bureau of Labor Statistics. Base Value Weights for Groups, Subgroups, Product Classes and Individual Commodities, Apr 52, p. 5. U. Eval. RR 2. 118. CIA. CIA/RR PR-98, Development and Potential of the Textiles Industry in the Soviet Bloc, 5 Feb 55, p. 34-35. S. 119. USSR, Ministry of Machine Building and Instrument Building. Preyskurant optovykh tsen na oborudovaniye dlya legkoy promyshlennosti i massovyye zapasnyye detali dlya tekstil'nykh, obuvnykh i trikotazhnykh mashin (Price List of Wholesale Prices of Equipment for Light Industry and Mass Spare Parts for Textile, Footwear, and Knitted Wear Machines),Moscow, 1949. U. Eval. Doc. S-E-C-R-E-T Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 25X1A5a1 120. 121. Ibid., p. 66, 69. U. Eval. RR 1. 122. USSR. Preyskurant opto kh tsen na turbiny parovyye, gidroturbiny, turbokompressornyye mashiny i turbonasosy (Price List of Wholesale Prices for Steam Turbines, Hydroturbines, Turbocompressor Machines and Turbine Pam-Ds),Moscow.1949. U'. Eval. Doc. 25X1A2 123. g 124. USSR, Ministry of Finave. Tsennik dlya sostavleniya (54, above). 125. USSR, Ministry of Communications Equipment Industry. Preyskurant o to kh tsen na svetotekhnicheskiye izdeliya (Price List of Wholesale Prices for Lighting Fixtures , Moscow, 1949. P. 5-7. U. Eval. Doc. 126. CIA. CIA/SI 82-52, Study of USSR Broadcast Receivers, 1 Dec 52. S/NOFORN. 25X1A2g 127. 128. CIA. CIA SI 82-52 126, above). 129. CIA. CIA/RR 11, Soviet Bloc Production of Civilian Radio and Television Receivers, 26 Sep 52. S NOFORN. 130. Ibid. 131. CIA. CIA/RR 11-S-1, Production of Civilian Radio and Television Receivers in the Soviet Bloc, 13 Dec 54. S NOFORN. 2 25X1A5 1 . 13 a 133. FCC. Interstate Message Telephone Rates, Effective 1 Feb 1946, 25X1A2g 134. National Association of Railroad and Public Utilities Commission. Compilation of Local Service Telephone Rates in the US in Effect June 1953, Washington, May 53. U. Eval. RR 2. 135. 25X1A2g 136. National Association of Railroad and Public Utilities Commission (134, above). 137? 25X1A2g 138. Western Union. Annual Report to the FCC, form 0, 1950. U. Eval. RR 2. 139. 25X1A2g 140. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 141. Ibid. 142. FCC. Statistics on the Communications Industry in the US for the Year Ended 31 December 1950, 1951. U. Eval. RR 2. 143. CIA. ORR Project 26-52 (WP T, Soviet War Potential, 1952-57, 12 Jan 53. S- 144. FCC. Statistics on the Communications Industry in the US for the Year Ended 31 December 1950, 1951. Eval.RR 2. 145. CIA. CIA RR RA 12, Economic Intelligence Statistical Handbook, 26 Feb 57, p. 145. S. 146. FCC. Statistics on the Communications Industry in the US for the Year Ended 31 December 1950, 1951. U. Eval. RR 2. 147. Ibid. 148. CIA. ORR Project 26-52 (WP) (143, above). 149. Commerce, Bureau of the Census. Statistical Abstract of the US, 1952, 73d ed, 1952, p. 219. U. Eval. RR 2. 150,, UN. Statistical Yearbook 1954, New York, 1954. U. Eval. RR 2. 151. Edison Electric Institute. Statistical Bulletin for the Year 1953, New York, May 54, p. 27, 45. U. Eval. RR 2. 152. USSR. Sbornik rukovodyashchikh materialov i konsul'tatsiy o stroitel'stvu (Handbook of Basic Materials and Consultations Relating to Construction), no 7, Moscow, 1949, p. 30. U. Eval., Doc. 153. Federal Power Commission. Electric Power Requirements in the USSR, .1950, 1952. S. 154. Edison Electric Institute. Statistical Bulletin for the Year 1953, New York, May 54, p. 27, 45. U. Eval. RR 2. 155. Ibid. po 156. USSR. Sbornik rukovodyaschikh materialov i konsul'tatsiy .stroitel'stvu (Handbook of Basic Materials and Consultations Relating to Construction), no 7, Moscow, 1949, p. 30. U. Eval. Doc. 157. CIA. FDD R-293, 23 Jun 55. C. Eval. RR 2. 158. Edison Electric Institute. Pocketbook of Electric Industry Statistics, New York, 1955, p. 17, 36. U. Eval. RR 2. 159. Trud, 29 Mar 55. U. Eval. RR 2. 160. Kutsenov, V.A. Vo ros tekhnika-ekonomicheskogo proyektirovaniya krupnykh gidrostantsii, v energosistemakh (The Problems of Technical- Economical Projecting of Large Hydroelectric Power Stations and Energy Systems), Moscow, 1953, p. 160. U. Eval. RR 2. 161. Interstate Commerce Commission, Bureau of Transport Economics and Statistics. Carload Waybill Analyses, 1951, Distribution of Freight Traffic and Revenue Averages by Commodity Classes, Terminations in 1951, statement-no 5220, Washington, Jun 52. U. Eval. RR 2. Approved For Release 1999/09/08: CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 162. Ibid. 163. Ibid. 164. USSR. Spravochnik po tarifam zheleznodorozhnogo transporta (Handbook of Tariffs for Railroad Transport), Moscow, 1949. U. Eval. RR 1. 165. Chernomordik, D.I. Zheleznodorozhn e gruzovyye tarify SSSR (Railroad Cargo Tariffs in USSR), Moscow, 1953. U. Eval. RR 2. 166. Lukjanow, W. Unpublished information from a ruble-dollar construction % ratio study, appendix 16, Aug 55. U. Eval. RR 2. 167. Engineering News Record, no 3,.13 Jul 50, p. 101. U. Eval. RR 2. 168. 25X1A2g 169. Engineering News Record, no 10, 4 Sep 52, p. 149. U. Eval. RR 2. Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2 SECRET SECRET Approved For Release 1999/09/08 : CIA-RDP79SO1046A000500040001-2