SOVIET UNION EASTERN EUROPE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00865A002100150002-2
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 8
• Document Creation Date: December 12, 2016
• Document Release Date: June 5, 2001
• Sequence Number: 2
• Publication Date: November 7, 1975
• Content Type: NOTES

Approved For Release 2001/08/08 : CIA-RDP79T00865A002100150002-2
Secret
NOFORN
-
Soviet Union
Eastern Europe
Secret
November 7, 1975
SC No. 00537/75
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Warning Notice
Sensitive Intelligence Sources and Methods Involved
(WNINTEL)
NATIONAL SECURITY INFORMATION
Unauthorized Disclosure Subject to Criminal Sanctions
DISSEMINATION CONTROL ABBREVIATIONS
NOFORN- Not Releasable to Foreign Nationals
NOCONTRACT- Not Releasable to Contractors or
Contractor/Consultants
PROPIN- Caution-Proprietary Information Involved
USIBONLY- USIB Departments Only
ORCON- Dissemination and Extraction of Information
Controlled by Originator
REL... - This Information has been Authorized for
Release to ...
Classified by 010725
Exempt from general declassification schedule
of E.O. 11852, exemptIon category:
058(1), (2). and (3)
Automatically declassified on:
Date Impossible to Determine
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NOCONTRACT
SOVIET UNION - EASTERN EUROPE
This publication is prepared for regional specialists in the Washington com-
munity by the USSR - Eastern Europe Division, Office of Current Intel-
ligence, with occasional contributions from other offices within the
Directorate of intelligence. Comments and queries are welcome. They should
be directed to the authors of the individual articles.
November 7, 1975
Poland: "Cheap, But There Isn't Any" . . . . . . 2
New First Deputy to Ponomarev Contirmed. . . . . 4
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Poland: "Cheap, But There Isn't Any"
According to the US embassy, Warsaw appears to
be following the precepts of Adam Smith instead of
Karl Marx as it tries to convince the Polish people
that price hikes would benefit both the consumer
and the national economy. Although food prices
have not been specifically mentioned, the average
Pole will conclude that prices on basic food items--
which have been held stable for more than five
years--will soon go up.
On Pionday, a popular Warsaw daily printed an
article entitled "Cheap, but There Isn't Anv," that
implicitly argued that supply and demand should be-
come the major forces in setting prices. The author
candidly and without the use of heavy economic
jargon suggests that the current price system de-
prives consumers of influence in the selection of
goods, thereby creating shortages and long lines
in front of stores.
The author comments that many consumer items
whose prices are frozen have disappeared from the
market because manufacturers, who lose money pro-
ducing them, turn out only the minimum required
by the plan. Real wages, she asserts, will con-
tinue to increase and prices should not be an un-
touchable "taboo," but an instrument to spur pro-
duction in the direction that will best satisfy
the needs of society.
The article does not answer questions about
how future prices will be set and fails to point
out that price increases will not quickly remedy
the most irritating shortages, particularly of
meat and milk products. (CONFIDENTIAL)
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New First Deputy to Ponomarev Confirmed
Vadim Zagladin has been publicly identified for
the first time as first deputy chief of the Central
Committee's International Department. Pravda of
November 4 carried the story.
The department, which handles CPSU relations
with non-ruling Communist Parties, is headed by
Boris Ponomarev, a CPSU Secretary and a non-voting
member of the Politburo. Zagladin's promotion was
almost certainly approved at the party's highest
levels.
Zagladin has been described as a talented and
intelligent man who works from 12 to 18 hours a
day. He also has a flair for public relations.
Zagladin started his career as a journalist and,
according to his own admission, was able to make
the "good contacts" with higher authorities that
enabled his career to advance. (SECRET NOFORN/NO-
CONTRACT)
November 7, 1975
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Secret
Secret
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