M/AG CONTRIBUTION TO PROJECT 20.637

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01049A001100100004-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: November 16, 2016
• Document Release Date: January 27, 2000
• Sequence Number: 4
• Publication Date: January 10, 1955
• Content Type: MEMO

Approved For Release 2 00/05/15: CIA-RDP79TO1 049AO01 1 Q, 00004-4
Chief, St/PR
TWU ! Act Chief, D
Actin
X/A0 Contribution to Project 20.637
i M10St 25X1A
10 'an.ry 1955
1. Information most readily available indicates that the net
export of tobacco f?rc the UWR to the Vest is negli
2, 1953 the USSR exported tobacco to the following countries s
Yai. L Do11au
Sweden
Danmark
an
Italy
50
2
989
990
79
31
1750
1752
3. In the 1954 WSR/Sweden trade agreement, the USSR is to
export 75 tons of tobacco to Sweden. In other agreements with the
mast, the tESR is importing tobacco.
4= The only instance found of rose oil being exported by
SR was in 1953 to France (value - $4000).
Information on the valuation of goods involved in the Bul-
vrrent trade agreement is not available. The valuation
for the period 1945 to 1947 for the purpose of background
ion is attached to this report at SECRET level.
Approved For Release 2000/05/15 : CIA-RDP79T01049AO01100100004-4
 Approved For Releasev2000/05/15: CIA 1049AO011 0004-4
S /TFts Contribution to Project 20.637
Information on the valuation of goods involved in Bulgarian-USSR
current trade agreements is not available. Available information on the
valuation of goods in the period 1945 to 1947, therefore, has been given
for the purpose of background information.
There has been some evidence that a discriminatory once policy was
employed by the USSR in trade with Bulgaria during the early postwar years.
Ixamples can be cited of Soviet exports to Bulgaria priced above world
market prices and of USSR imports from Bulgaria either at prices substantially
lower than world market prices or at the cost of production. From 1945 to
1947 the prices of major USSR exports to Bulgaria showed a proportionately
greater increase as compared to free market prices than the prices of major
USSR imports from Bulgaria. 1/ In 1945 Bulgaria sold 5,000 kilograms of
attar of roses to the USSR at a total price of 550 million leva, i.e., only
X386 per kg. using the official rate of exchange of 285 leva to the IflS.
dollar. Calculated at the free exchange rate of about 1,000 leva to the U.S.
dollar, the price equalled only $110 per kg., whereas the world market price
was about ''l,200 per kg.
This discriminatory price policy enabled the USSR to re-sell Bulgarian
products on the world market at considerable profit. Moreover, Bulgaria was
handicapped in selling any large amounts of marketable products to other
countries at higher prices because the bulk of these products was being
exported to the USSR. On the other hand, exports from the USSR included
products purchased from other countries and resold to Bulgaria at prices
higher than Bulgaria would have had to pay if they could have been purchased
on the open market
Approved For Release 2000/05/15 : CIA-RDP79T01049AO01100100004-4
SEC I
 Approved For Release 00/05/15: CIA-RDP79T01049AO0110WI 0004-4
An extensive study of the USSR-Bulgarian terms of trade is anticipated
at some later date.
Approved For Release 2000/05/15 : CJA-F DP79TO1049AO01100100004-4
 Approved For Releas*2000/05/15: CIA-R[ P79I0?1949AO01100100004-4
2. Margaret Dewar, Soviet Trade with Eastern Europe 1945-49o Royal Institute
of International Affairs, London 1951, page 51, Unclassified
Approved For Release 2000/05/1 PCB P79T01049AO01100100004-4