FURTHER SLOWDOWN IN SOVIET INDUSTRIAL GROWTH IN THE LAST QUARTER OF 1963
Document Type:
Collection:
Document Number (FOIA) /ESDN (CREST):
CIA-RDP79T01003A001900150001-4
Release Decision:
RIPPUB
Original Classification:
S
Document Page Count:
26
Document Creation Date:
November 16, 2016
Document Release Date:
November 29, 1999
Sequence Number:
1
Case Number:
Publication Date:
March 1, 1964
Content Type:
BRIEF
File:
Attachment | Size |
---|---|
CIA-RDP79T01003A001900150001-4.pdf | 1.03 MB |
Body:
AppgMf
py Release 2000/04/17 CIA-RDP79TO1 003AO01 900150001-4
Current Support Brief
FURTHER SLOWDOWN IN SOVIET INDUSTRIAL GROWTH
IN THE LAST QUARTER OF 1963
CIA/RR CB 64-20
March 1964
CENTRAL INTELLIGENCE AGENCY
Office of Research and Reports
SECRET
GROUP 1
Excluded from automatic
downgrading and
declassification
Approved For Release 2000/04/17 : CIA-RDP79T01003AO0190015 001-4
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
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 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 :SCLA-tZ-Rf 779T P1003AO01900150001-4
FURTHER SLOWDOWN IN SOVIET INDUSTRIAL GROWTH
IN THE LAST QUARTER OF 1963
Preliminary plan fulfillment results reveal that Soviet industry advanced
at an exceptionally low rate in the last quarter of 1963. Because of the poor
fourth quarter, civilian industrial production -- which had dropped from an
annual rate of growth of 9 to 10 percent in the late 1950's to 6. 5 to 7 percent
in the 3 years 1960-62 -- may have grown considerably less than 7 percent
for, the year as a whole. * Rates of growth in 1962-63 for the three major
components of civilian industrial production are given in Table 1, and rates
of growth for 56 important commodity groups are given in Table 2.
a. Explanatory notes for Table 1 are given in Appendix A.
USSR: Rates of Growth for Major Components
of Civilian Industrial Production a/
1962-63
Percentage Change from Corresponding Period of Previous Year
Periods in 1963
Full
Full
Half-Year-
Quarter-Year
Year
Year
-
' -~
1962
1963
Jan-Jun
Jul-Dec
Jul-Sep Oct-Dec
Industrial
materials
7.0
5.9
6.8
4.4
6.3 2.4
Civilian machinery
9.7
8.2
8.7
7.0
8.5 5.3
Consumer nondurable
:goods
5.7
4.1
4.1
4.2
5.7 3,3
The percentages for years before 1963 are derived from the ORR index
of Soviet civilian industrial production. The calculations for 1963 are
tentative because of the incompleteness of the list of commodities included.
See CIA/RR ER 63-29, Index of Civilian Industrial Production in the USSR,
September 1963 (UNCLASSIFIED).
S-E-C-R-E-T
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
S-E-C-R-E-T
A number of developments account for this slowdown in industrial
growth. As expected, last year's agricultural reverses held down the
production of consumer nondurable goods. In addition, certain of the
following possible developments also could have had a detrimental effect:
an accelerated retirement of obsolete capital equipment, the changeover
of plants to support the new chemical program, altered production sched-
ules for military end products, the technological problems of mastering
the more complex processing techniques in newly completed plants, and
local shortages of labor.
Background
At the end of the first half of 1963 the general expectation was that
growth of civilian industrial production for the entire year would be at
about the same level as that of the previous 3 years. The estimates in
Table 1 for the first half of 1963 indicate growth at about that level.
Production data recently published for the full year, however, indicate
a perceptible reduction in growth for the year as a whole, a reduction
largely attributable to the low rate of growth in the fourth quarter.
Because of the shortness of the time period and the transitory and specu-
lative nature of several of the possible alternative explanations for the
decline, it is too early to judge whether these lower rates of growth will
persist into 1964.
Details of the Decline in Growth
Although the slowdown in growth in the fourth quarter of 1963 was
common to industrial materials, civilian machinery, and consumer non-
durable goods, there were notable divergencies within each group in the
behavior of separate commodity categories.
Among the industrial materials, there were moderate to sharp
downturns in rates of growth for forest products, construction materials,
rolled metal, and electric power. The slowdown in the growth of pro-
duction of electric power in the last quarter of the year apparently was due
,= In mid-1963, there were indications of a possible slowdown in the rate
of expansion, but both Soviet and Western sources suggested that these
indications probably were a result of the severe weather conditions in
the early months of 1963, which were not expected to affect greatly the
results for the entire year (see Appendix A).
Approved For ReIeases 260O/O4/1?-:TCIA-RD P79TO1003AO01900150001-4
Approved For Release 2000/04/17 :14_ ~DD7~ T91003A001900150001-4
to a decline in the rate of increase of demand rather than to the effects
of drought or a shortage of generating capacity.
Among the: categories of civilian machinery for which data are
available, there were lower absolute levels of production for metal-
lurgical and oil equipment, turbines, forging press machines, and sew-
ing machines for the second half as a whole'.'; for the fourth quarter,
production was lower than in the same quarter in 1962 for electric loco-
motives, looms, and excavators. Perhaps as a reflection of current
priorities in the USSR, output of agricultural equipment and consumer
durables expanded at steady high rates throughout the year. ***
Production trends in consumer nondurable goods industries depend
heavily on events in agriculture. Recent developments in farm output
could explain most of the significant changes in production trends. The
most surprising result in production of processed foods was the absence
of a large increase in production of meat in the last half of 1963 above,
the previous year. The reduction of 42 percent in inventories of hogs
because of a lack of feedstuffs would have suggested a sharp upturn in
output of meat. Apparently the light weight of the young animals removed
from inventories under the distress slaughtering campaign kept the in-
crease in total output of meat relatively low. The sharp decrease in out-
put of dairy products indicates a shortage of feed supplies other than
grain, such as silage and hay. In the USSR, cows are fed only small
amounts of grain, and a decrease in milk yields reflects a significant
decline in nongrain feeds.
* Production data for metallurgical and oil equipment and for sewing
machines are available for 6-month periods only; absolute levels of out-
put for these categories of machinery also were lower in the first half
of 1963 compared with the last half of 1962.
.l< In addition, output in physical units of trucks, automobiles, and
buses was off 1. 0 percent from the fourth quarter of 1962. Because of
the Soviet practice of rounding output indicators (physical units or ruble
values of output), however, and because of a possible undetected re-
vision of quarterly production data for the preceding year, an error of
2 percentage points either way may be introduced in the output of any
one commodity. Major revisions of quarterly or semiannual data for
1962 could be detected and adjustments were made.
*** The lack of consumer demand for sewing machines (at least for the
quality of machine that is produced currently) probably explains the
drastic decline in this level of production. An unknown proportion of out-
put of sewing machines is for industrial uses.
- 3 -
S-E-C-R-E-T
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 : CIA-RDP79T01003A001900150001-4
S-E-C-R-E-T
3. Alternative Explanations of the Decline in Growth
Other plausible explanations for the slowdown in rates of growth for
major sectors of industry in the last quarter of 1963 are as follows:
a. There may have been a slowdown in the rate of increase in
net capital formation for 1963. Gross additions to industrial capacity in
1963 were about the same as in recent years -- 12 to 13 percent -- but
a possible increase in the proportion of capital stock retired could have
lowered the net increase in the stock of plant and equipment.
b. There may have been a disruption of production flows from
facilities already in use. This effect on output could have been more than
normal because of two events. First, commissioning of new capacity, a
high proportion of which is normally achieved through expansion or re -
equipping of existing facilities, was particularly heavy during the last
half of the year. Second, the possible conscription of plants to aid in
the expansion of industries supporting the new chemical program may
have caused a dropoff in production because of temporary shutdowns of
at least part of their facilities. =, * There could have been a conscious
decision to hold down the production of certain consumer goods so that
the chemical program could be supported.
c. The longstanding problem of bringing production from new
plant and equipment up to rated capacity may have become worse during
1963. Soviet planners, designers, and engineers have had increasing
difficulties in recent years in bringing output in the more complex
processes embodied in newly completed facilities up to expected levels
of output.
d. Substantial changes in production schedules of various mili-
tary and space programs could cause short-run disruptions in production
* The USSR has been able to maintain annual increments to productive
capital stock in industry of 12 to 13 percent per year in spite of a sharp
downturn in the rates of increase in new fixed investment. This has been
accomplished in part by foregoing the retirement of old plant and equip-
ment and in part by drawing on the backlog of unfinished projects.
** The partial or complete conversion of machine building plants from
one product line to another. See CIA/RR CB 64-8, Soviet Conscription
of Plants to Produce Chemical Equipment, January 1964 (SECRET), for
evidence of planned future conscription of machine building plants to pro-
duce chemical equipment.
Approved For Releasei60 417T: CIA-RDP79T01003A001900150001-4
Approved For Release 2000/04/17 :W-RC71TT1003A001900150001-4
trends. Although there is no evidence that industrial activity related to
the defense effort has leveled off or been reduced in absolute size, such
a possibility exists. Large-scale diversion of plant capacity to support
civilian programs could cause short-run slowdowns of expansion or con-
traction in such supporting industries as electric power.
e. Soviet planners during the past year have attempted to ex-
pand production by increasing the number of shifts of machine building
plants. Because of a possible shortage of labor, especially of certain
skills, the extra shifts may not have been implemented. The over-all
increase in the industrial labor force -- in absolute numbers -- was
about the same for 1962 and 1963.
f. Rates of growth in the last quarter of 1963 could have been
low either because growth in the last quarter of 1962 was abnormally
high or because weather conditions in the last quarter of 1963 were. unique.
These possibilities are discussed -- and dismissed -- in Appendix B.
The above list, incomplete as it is, appears to cover the more
plausible explanations for the deceleration in the fourth quarter of 1963.
The impact of each of the above factors on levels of output could be
mitigated by the passing of time, with the important exception of a pos-
sible secular rise in the rate of retirement of industrial capital stock.
This latter factor could be overcome only by a significant increase in
new fixed investment for industry.
S-E-C-R-E-T
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
S-E-C-..R-E-T
USSR: Rates of Growth. in Production of Industrial Commodities a/*
1962-63 -
Percentage Change from Corresponding Period of Previous Year
Periods in 1963
Full
Full
Half-Year
Quarter-Year
Year
Year
Commodity
1962
1963
Jan-Jun
Jul-Dec
Jul-Sep
Oct-Dec
Usable iron ore
8.9
6.9
7.9
6.1
9.1
3.0
Pig iron
8.6
6.1
5.9
6.4
8.0
4.9
Crude steel
7.8
5.1
5.3
4.9
5.3
4.6
Rolled steel
7.4
5.2
6.5
4.0
4.1
3.9
Steel pipe
17.3
10.1
12.9
7.5
8.6
6.5
Fuels and power
Electric power
12.7
11.6
13.3
9.9
N.A.
N.A.
Of which:
Central supply b/
13.1
12.3
13.9
10.8
17.8
4.7
Coal
1.3
2.8
1.6
4.1
3.8
4.7
Petroleum, crude
12.1
10..6
10.9
10.4
11.1
9.8
Gas
23.6
21.7
21.9
21.4
23.5
19.8
Chemicals
Sulfuric acid
7.0
12.0
12.0
12.2
12.7
11.8
Caustic soda
7.1
9.2
9.0
9.3
11.9
6.9
Soda ash
10.3
9.0
9.1
8.9
8.9
8.9
Mineral fertilizers
12.7
15.0
13.3
16.7
14.3
18.8
Artificial and
synthetic fibers
10.7
11.1
11.0
11.1
13.6
8.9
Automobile tires
9.7
8.0
7.8
9.4
9.6
9.3
* Footnotes follow on p. 9.
Approved For Release h0 %a4A7 T CIA-RDP79T01003AO01900150001-4
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
S-E-C-R-E-T
USSR: Rates of Growth in Production of Industrial Commodities
1962-63
(Continued)
Percentage Change from Corresponding Period of Previous Year
Periods in 1963
Full Full Half-Year Quarter-Year
Year Year
Commodity 1962 1963 Jan-Jun Jul-Dec. Jul-Sep Oct-Dec
Cement 12.7 6.o 10.0 3.2 6.6 0.0
Precast, reinforced
structurals (con-
crete)
17.5
8.0
9.0
5.9
8.5
3.4
Window glass
8.2
2.1
4.0
0.3
-5.9
5.3
Asbestos cement
shingles
9.5
3.0
5.6
-1.1
0.0
-2.2
Commercial timber
haulage
3.8
4.o
6.2
1.8
5.9
-2.0
Paper
6.7
4.0
2.9
6.8
2.9
10.3
Furniture c/
15.4
10.0
10.4
9.6
12.5
6.7
Civilian machinery
Chemical equipment ?
9.5
9.0
8.0
9.6
12.3
7.1
Metallurgical equip-
ment
12.2
-1.7
-0.1
-3.4
N.A.
N.A.
Oil equipment
13.5
-5.1
-0.5
-10.1
N.A.
N.A.
Agricultural equip-
ment c/
21.2
17.4
17.0
17.7
17.1
18.4
Instruments J
15.4
13.0
16.0
7.4
13.2
1.9
Trucks, buses and
autos
4.0
1.6
2.1
1.2
3.4
-1.0
Tractors
8.9
13.2
16.9
9.9
10.8
9.1
Metal cutting machine
tools
6.7
3.4
4.2
2.8
0.9
4.6
S-E-C-R-E-T
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
S-E-C-R-E-T
USSR: Rates of Growth in Production of Industrial Commodities
1962-63
(Continued)
Percentage Change from Corresponding Period of Previous Year
Periods in 1963
Full Full Half-Year Quarter-Year
Year Year
Commodity 1962 1963 Jan-Jun Jul-Dec Jul-Sep Oct-Dec
Civilian machinery
Producer durables
(Continued)
Turbines (kilowatt-
hours)
11.2
-0.2
10.9
-9.4
3.7
-18.9
Generators for
turbines
16.6
8.2
9.6
6.9
N.A.
N.A.
Electric motors
12.6
9.0
8.8
10.3
11.3
9.4
Diesel locomotives
1.9
2.3
-4.5
8.9
5.8
12.1
Electric locomotives
10.8
4.2
7.4
1.3
5.8
-3.1
Weaving looms
21.2
5.2
11.5
0.9
5.1
-7.0
Excavators
6.9
4.0
6.0
2.1
7.1
-2.4
Forging press machines
9.2
1.5
6.2
-2.9
0.0
-5.7
Television sets
11.2
14.0
10.0
17.1
19.2
15.3
Washing machines
39.8
28.0
27.8
28.2
26.9
29.4
Refrigerators
22.0
8.7
11.0
6.6
6.1
7.2
Radios and radio
phonographs
0.5
12.9
0.9
22.7
30.0
16.7
Motorcycles and motor
scooters
5.6
4.2
5.3
3.1
4.5
1.7
Bicycles and motor
bikes
10.1
7.0
7.0
9.9
14.3
6.3
Clocks
0.0
3.9
5.0
2.2
1.5
2.9
Sewing machines
1.5
-22.2
-15.0
-29.0
N.A.
N.A.
Approved For Release 2d06%047T! TCIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
S-E- -R-E-T
Table 2
USSR: Rates of Growth in Production of Industrial Commodities
1962-63
(Continued)
Percentage Change from Corresponding Period of Previous Year
Periods in 1963
Full
Full
Half-Year
Quarter-Year
Year
Year
Commodity
1962
1963
Jan-Jun
Jul-Dec
Jul-Sep
Oct-Dec
Based on agricultural
raw materials
Cotton fabrics
0.8
3.2
0.5
7.8
8.3
8.3
Woolen fabrics
3.2
0.4
-1.7
2.5
2.5
2.5
Linen fabrics
-1.7
5.0
3.6
6.5
9.4
4.1
Silk fabrics
15.3
1.8
8.4
-4.1
-3.4
-4.7
Leather footwear
3.0
1.5
0.4
2.5
2.7
2.3
Meat d/
13.1
13.0
21.4.
8.8
16.7
4.5
Milk products d/
2.2
2.2
2.1
2.2
4.0
0.0
Butter d/
6.3
-7.0
-6.9
-7.0
-2.7
-18.3
Vegetable oil d/
17.6
5.0
7.0
0.0
0.0
0.0
Canned goods
6.6
8.2
9.1
6.8
7.4
6.7
a. Unless otherwise indicated, both annual and quarterly rates of growth
are computed from output data expressed in physical units. The rates of
increase by half-years and quarters for 1963 reflect changes in absolute
levels of output in 1963 compared with absolute levels of output within
the corresponding period in 1962. Because the published data for periods
within a given year are rounded (in physical units or ruble values of out-
put) and because of the possible undetected revision of quarterly produc-
tion data for the preceding year, an error of plus or minus 2 percentage
points may be introduced in the output of any one commodity.
Output data (expressed as absolute quantities) are published quarterly
during the year. Significant official revisions of the quarterly produc-
tion data for 1962 could be detected because of the publication during
1963 of quarterly performance data. Thus the cumulative measures of abso-
lute output published for the four quarters of 1963 were related to the
cumulative production of 1962 by means of index numbers. If a comparison
of cumulative indexes of growth indicated that revisions had been made in
the official data, the data on absolute levels of output, originally pub-
lished in 1962, were adjusted.
S-E-C-R-E-T
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
S-E-C-R-E-T
USSR: Rates of Growth in Production of Industrial Commodities
1962-63
(Continued)
The rate of increase in output for the year 1962 compared with 1961
was computed from unrounded production data appearing in the statistical
yearbooks. The rate of increase in the full year 1963 was computed from
production data (rounded) published in the announcement of plan fulfill-
ment (Pravda, 24 January 1964) and the unrounded data appearing in the
annual yearbook (Narodnoye khozyaystvo v 1962 g.). These rates of change
were computed to the nearest tenth of one percent. If on rounding these
percentage rates of change for the full year 1963 to the nearest full per-
centage point, it was found that the increases did not correspond to rates
of growth recently published in the announcement of plan fulfillment (ex-
pressed in full percentage points) the computed percentage was rejected
and the published percentage increase (rounded) was used. This "rounding"
procedure for the full year 1963 was found to be necessary for 17 of the
62 commodity categories used in constructing the indexes in Table 1.
b. The electric power industry (central supply) produces 95 percent of
the urban supply of electricity. The remaining 5 percent of the supply
in urban areas is generated by small subsidiary plants attached to indi-
vidual enterprises. In addition, about 5 percent of total production of
electricity is produced by small generating stations in rural areas,
mostly in agricultural enterprises.
C. Percentage change computed from output expressed in rubles.
d. Excluding production of collective farms and individual households.
Approved For Release O6b%W7T CIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 : c1AJ 2p,,z9 E 1003A001900150001-4
a. The rates of growth indicated in Table 1 show the change in out-
put for each period in 1963 compared with production within the same
period of the previous year. For example, the 6. 3-percent increase in
industrial materials in the third quarter of 1963 is a rate of growth re-
flecting change in output for that quarter compared with the absolute
level of output in the third quarter of 1962.
b. The following commodities are excluded from the rates of growth
for the third and fourth quarters (data available only for semiannual periods):
Civilian machinery -- metallurgical and oil equipment,
generators for turbines, and
sewing machines.
Consumer goods -- confectionary products and knitted wear.
c. The sample of commodities included in Table 1 cover the follow-
ing percentages of the total value of output (final sales) of commodities in-
cluded in the ORR civilian industrial index -- industrial materials, 66 per-
cent; civilian machinery, 78 percent; and consumer goods, 71 percent.
These are shares of the total commodity coverage, often for broad cate-
gories, such as coal., and do not reflect changes in the relative shares of
output within a commodity group, such as for bituminous and lignite.
The rates of growth for 1962 over 1961, derived by use of the
limited sample of commodities used in Table 1, can be compared with
rates of growth computed from the ORR indexes, which have more exten-
sive coverage, as follows:
1962 over 1961
Industrial materials
6.5 7.0
Civilian machinery
8.7 9.7
Consumer nondurable goods
5.7 5.7
S-E-C-R-E-T
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 : CIA-RDP79T01003A001900150001-4
S-E-C-R-E-T
d. Output indicators are shown in Table 2 for most of the commodi-
ties included in Table 1.
2. Element of Seasonality in Soviet Industrial Growth
The analysis in this publication of trends of industrial output over the
past 2 years has been based -- appropriately -- on a comparison of levels
of output for the same period of time in the 2 years under review. An
alternative method is to compare rates of change in output for a given
period of time over the preceding period -- for example, change in abso-
lute levels of output in the last 6 months of 1963 compared with output in
the first 6 months of 1963. The "same period" approach is more appropriate
for the present analysis because it eliminates, to a certain extent, the
seasonal effect on production. As indicated in Table 3, the strongest
seasonal element in Soviet industrial production is -- as would be expected --
in changes in the levels of output of processed foods. But an element of
seasonality also is present for industrial materials and civilian machinery.
This tends to result (in any given year) in a predominate share of growth
in industrial materials in the first half of a year -- but in civilian machinery,
in the last 6 months of a year. As noted on p. 2, above, there were indica-
tions of a possible slowdown in the rate of expansion in the first half of 1963,
possibly caused in part by the severe weather in early 1963 and because
output of civilian machinery did not maintain its usual seasonal pace in the
first half of 1963 (see Table 3, below). But because the expansion of in-
dustrial materials required to support the machine building sector appeared
to be holding up well for the first 6 months of 1963, it was believed that
output of civilian machinery during the last 6 months would result in an
over-all annual rate of increase comparable to that of recent years.
Table 3 gives the average rates of change by 6-month period compared
with the previous 6-month period for the years 1959-62 and presents a
comparison with the performance for the same period of 1963.
Approved For Release_20001 4A7T CIA-RDP79T01003A001900150001-4
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
S-E-C-R-E-T
Semiannual Rates of Growth of Soviet Output for Three Major Components
of Industrial Output
Percentage Change
First 6 Months of Year Last 6 Months of Year
over Last 6 Months of over First 6 Months of
Preceding Year
Same Year
1959-62
1959-62
Industrial Category
Average
1963
Average
1963
Processed foods
-34.2
-20.2
52.6
34.1
Industrial materials
5.9
6.6
o.6
-1.0
Civilian machinery
3.6
1.8
7.0
5.4
S-E-C-R-E-T
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 ~ 4cR[AP-T_9T01003AO01900150001-4
It is possible that the low rates of growth for the three major com-
ponents of civilian industrial production in the fourth quarter of 1963
were the result of relating a recent level of absolute production to a
base -- same period of time in 19.62 -- which, in turn, reflected an
abnormally high rate of increase. For example, the annual rate of
growth in 1962 in the production of rolled steel (7. 4 percent above that
of 1961) possibly obscures wide fluctuations in the quarterly rates of
growth during the year. Thus the rate of increase for the fourth quarter
of 1962 may have been much above the annual average or, alternatively,
higher in relation to the annual average than usual. Deriving a rate of
increase in the fourth quarter of 1963 by relating absolute levels of out-
put for the same quarter in 1962 and 1963, therefore, possibly could
lead to spurious results.
An examination of the data on rates of growth in output for 1962 com-
pared with 1961 (both annually and quarterly) leads to a rejection of this
element as an important factor. Of the 49 commodities for which the
relevant data are available, the rate of growth in the fourth quarter of
1962 (over the same quarter in 1961) can be compared with the annual
rate of growth for 1962 (over 1961) as shown in Table 4.
Table 4
Divergence Between the Rate of Growth in Output for 1962
(Full Year) and Fourth Quarter of 1962
over Same Periods in 1961
Number of Commodities
Annual rate of growth more than
1 percentage point above rate
of growth in 4th quarter
18
0 to 1 percentage point above
9
Annual rate of growth more than
1 percentage point below rate
of growth in 4th quarter
16
0 to 1 percentage point below
6
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
S-E-C-R-E-T
As shown in Table 4, there does not appear to have been a significant
distortion in the pattern of growth in the fourth quarter of 1962 compared
with that for the full year. Thus the computation of rates of growth for
1963 over 1962, as computed in Table 2, probably is not biased as a
result of this effect. To carry out a more complete demonstration of
the lack of a possible statistical aberration in changes in the rates of
growth in the fourth quarter related to that of previous years, the above
analysis should be carried back to 1960. Although such a statistical
presentation is not undertaken, a visual inspection of patterns of growth
for years before 1962 suggests no divergency from the pattern indicated
in Table 4.
Weather conditions are a cyclical element that can dampen substan-
tially the rate of growth in industrial activity over the period of one
quarter. The extremely cold weather of the early months of 1963, for
example, apparently was a contributing factor to the slowdown in the
first quarter in industrial activity in Western and Eastern Europe and
in the USSR.
An inspection of weather data for November and December of 1962
and 1963 does not suggest this element as a disturbing factor in levels
of Soviet industrial output. Temperatures in November for both years
were well above normal for the country as a whole; in December of
both years temperatures were below normal, but colder in December
1962 than December 1963. In both years the magnitude of the tempe.xa-
ture differential (compared with normal) was not enough to have the
depressing effect on industrial output that occurred.
Analyst:
25X1A
S-E-C-R-E-T
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release & ` Y : CIA-RDP79TO1 003AO01 900150001-4
SECRET
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Analyst: A/U
Approved For Release 2000/04/17 : CIA-RDPX1ao3A'Oc15 150 1~~
; t r` ' t W' AM) cl . r'?_?R
SECRET
33
34
83
213230
165
166
_.___
167
168 - 171
172
173
'
4 - 176
17
177
178
179
180
181
182
183
184 - 186
CIA/RR CB._64-20
March 1964
AD /.RR
DAD/RR
A/U
187 OB /HRG/CGS, 3F30
188 - 190 Filed in St/P/C
/e- 4.
Hq
It
16 Mar 64
16 Mar 64
25X_1A
25X1 C
25X1A
25X1A
25X1A
SAOUP 1
ExcIudld from uutomatk
dowsgrrldtng i d
doelossittcs lon
25X1A
` e 50001
2~ ~ & 10 X1 A
25X1A
25X1A
' ' ' ~ Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
Approved For Release 200$ : CIA-RDP79T01003A001900150001-4
SUBJECT: Distribution of Current Support Brief No. 64-20, Further Slowdown
t Industrial Growth in the Last Quarter of 1963 --- March 1964 (SECRET)
Copy No.
Recipient
1
O/DDI, Room 7E32, Hdqtrs.
2 - 3
NIC
4 - 12
OCI Internal
13
- 15
ONE
16
- 21
St/CS/RR
22
O/DDI - Cheater Cooper
23
- 31
25X1A
32
NSAL
33
- 230
ORR Distribution, St/A/Document Support Section, Room GH0915,
Hdgtrs. (sent direct to St/A/DSS, 13 Mar 64).
(Distributed by OCR)
GRDUP 1
Excluded from avtomatlc
7 : C-dDai 7
Approved For Release 2
NIT I
101003A001900150001-4
SECRET.
trial Growth in the Last Quarter o
Slowdown in Soviet Indus
196 SECRET
N
Recipient
o.
Copy
33
AgkiaR 128-137, 156-159 DIA, DIAAQ- 3, Arlington
Hall Station
, ? f~
23
.
ZOAWM
St/P/A a
it 35
Ch / E
U 163
St/PR
36 - 40
DIA (1 each branch)
41 - 46
D/MS (1 each branch)
47?- 52
D/R (1 each branch)
53 - 60
D/M (1 each branch)
61 -69
17/I (l each branch)
70 - 71
D/GG
72 - 73
D/GC
74
D/GC/X
75-SO
RID/AN, Unit 4, Room 1B4004, Hq.
81
St/FM
33
tltSrw=k
S$ 82
GR/ CR
84
BR/CR
85
FIB/SR/CR. Room 1G27, Hq.
86
Library/ CR
87
IPI/ CR
88
VMR, A-18
89
AD/ 00
90
Chief, FDD
91
CDIOO
92
OCI/RP/PS, Room 7G15, Hq.
93
DDI/CGS, Room 7F35, Hq.
94
DDI/CGS/HR, Room 3F30, Hq.
95 - 97
OSI 25X1A
98
OBI OTR/SIC)
(1
d
99 - 100
g.
OTR/IS/IP Room 532, Broyhill Bl
101
10Z
NPIC/CSD/REF, Room 1S518, MOM Classified
Comman dant Nat'l War College, Ft. Les ie McNair, Attn:
, 25, D. C.
Records Section, Rm. 26, Nat'l. War College Bldg., Wash..
103 - 113
ACSI/Army, Room 1C460, Pentagon
114 - 177
Navv. Director, ONI, Room 5B659, Pentagon
138 - 139
o 4D825, Pentagon
Asst. Secretary of Defense, S
ildi
140 - 143
ng,
Room
USIA, Warren Phelps, WalkepJohnson Bu
1734 New York Avenue, N. W.
Bld
D
t
144 - 155
g.
.
ep
State, INR Communications Center, Room 7818, State
160 - 161
162
Dr. Neilson Debevoise, NSC, Room 3b5, x:xecuzave vatic. c y~?i~??$
Frank M. Charrette, Agency for International Development, Chief,
... w N.U. 7
Statistics and Reports /a ision, ------- `_ -URjUP 1
5-190 ~
pi atGFOM ei ,6l20W1o 4Vd:ic1* ~'79tb 1k6b19 6gq TR!jV
1-212S9tx c' 8O
Records Center
~
l,L 1
Approved For Release 2000/04g,7, : -RP 7 %TVQp j&401900150001-4
St%A/DSS Distribution of Current upport e
f 1963 March
r*r
Approved For Release 20 g A :CIA-RDP79T01003A001900150001-4
18 March 1964
MEMOPtANDUM FOR: Chief, Dissemination Control Branch, DD/CR
FROM : Chief, Publications Staff, C RR
SUBJECT : Transmittal of Material
It is requested that the attached copies of CIA/RR CB 64-20,
Further Slowdown in Soviet Industrial. Growth in the Last Quarter of
56 3., March 19642 Secret, be f orwar ed as follows
State, INR Cc munications Center..
Rogan 7818, State Dept. Bldg.
For Embassies in Berlin, Moscow, Bonn,
Frankfurt, London, and Paris
25X1A
Attacbments:
Copies #188, #191 - +195 of CB 64-20
cc: CGS/RB
ET
The dcrser,nation re.,ur ;[,; J by
this memor ndum has been completadi
OY: fJ zf
?ate-l / e
Approved For Rel 00'; ~` DP79T01003A001900150001-4
Og ~ i^i~2 Soy
60
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4
yrojerct No. 14.5102 Report Series CIA/RR CS 64-20
of 1963 (SECRET)
'eponsible Analyst and Branch A/U
RECOMMENDED DISTRIBUTION TO STATE POSTS
14.triin, Germany
flacharest, Romania
Rt.dapest, Hungary
-Moscow, USSR
1-'rague, Czechoslovakia
rufia., Bulgaria
Warsaw. Poland
Ir3eigrade:. Yugoslavia
ern. Switzerland
lonn, Germany
tlrusseLs, Belgium
Copenhagen, Denmark
- ? rankfurt., Germany.
Geneva, Switzerland.
?1elsinki, Finland
The Hague? Netherlands
Lisbon, Portugal
4,,ondon, England
Luxembourg, Luxembourg
Madrid. Spain
Oslo, Norway
"iris, France
I:tome, Italy
Stockholm, Sweden
Vienna, Austria
'acific
'Wellington, New Zealand
Manila, Philippines
Canberra. Australia
Melbourne, Australia
Far East
Bangkok, Thailand
Djakarta, Lndonesia.
Hong Kong
Rangoon, Burma
Kuala Lumpur. Malaya
Saigon, Vietnam
Seoul, Korea
Singapore, British Malaya
Taipei Formosa
Tokyo, Japan
Vientiane, Laos
Phnom Penh, Cambodia
Colombo; Ceylon
Near East & South Asia
Ankara, Turkey
Athens, Greece
Cairo, Egypt
Damascus, Syria
Kabul., Afghanistan
Karachi, Pakistan
New Delhi, India
Nicosia, Cyprus
Tehran, Iran
Baghdad, Iraq
Tel Aviv, Israel
Beirut, Lebanon
Amman, Jordon
Jidda, Saudi Arabia
Ottawa, Canada.
Mexico
Guatemala
Panama
B.razillia, Brazil
Buenos Aires,; Argentftia
Bogota, Colornbi.a
Santiago. Chile
La Paz., Bolivia.
Montevideo, Uruguay
Caracas, Venezuela
Africa
Yaonde, Cameroun
.Leopoldville, Congo
Addis Ababa, Ethopia
Accra? Ghana
Abidjan. Ivory Coast
Nairobi, Kenya
Monrovia, Liberia
Tripoli, Libya
Rabat, Morocco
Lagos, NigerV4
Mogadiscio, Sonial
Khartoum, Suc;arj
Tunis, Tunisia
Pretoria, South Africa
Algiers, Algeria
Cotonou, Daho.ney
Dakar? Senega.t,
Bamako, Mali
25X1A
GROUP I
Approved For ReleSC( 0/ /dl anatat DP79T01003A001900150001-4
ae-uctttration
'itle Further Slowdown in Soviet Industrial Growth in the Last Quarter
Apq fpKekS,?LIeAe see 200Q/04~,/ 7O CIA RDP 9 01 03A001900150001-4
`.it bjee t
_G'/,1/ C% ~y Q
AAnalyst and Br nc
unedited draft
Z `E dited draft
")ther
a. Text check
ha Sou, ce check
c. Releasable to.
25X1A
/; low-t- I/W
11,1xw, / '
25X1 C
25X1 C
25X1 C
/ 91
i sent to. AD/RR
Fier to D:Dx
3 necked for release
3L/PSD notified to Disse.-mir-ate
Firs' - - - /,,- ~-),
downg:;-acing ;r:id
decias ificahi
I d l
Approved For RoIease 2000 04/1 ` a-If9f3jO-f t 0 4
25X1A
Approved For Release 2MQ4I17 : CIA-RDP79TO1003AO01900150001-4
2'-7v7
a~ g~ Otis- .
25X1 C
Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4