PLAN FOR GENERAL PRICE REDUCTION IN AUSTRIA

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R001300170009-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 14, 2016
• Document Release Date: April 30, 2002
• Sequence Number: 9
• Publication Date: February 13, 1948
• Content Type: REPORT

25X1A
INFORMAT1O
COUNTRY Austria
582-00457WCR?;0
1
PORT
SUBJECT Plan for General Price Rreduotion in Austria
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The Ministry for Property Control and Economic Planning is' investigating possible
industrial reaction to any projected general cut in prices. In order further to
implement the recent currency reform law, the Austrian Government is considering
a general price reduction and is now sounding out various large industrial
concerns on their ability to bear and their willingness to go along with such a
measure. It is envisaged that a priqa cut will also strike a blow at USIA firms
and their exorbitant price scales. Comments According to a prominent 25X1A
industrialist, a price cut at this time is out tithe question since a Meat
member of plants are producing at only a fraction of their full capacity and are
barely masking ends meet under the present price structure. In some quarters close
to the Ministry for Property Control and Economic Planning, price reduction without
increased production is regarded as ruinous folly.}
The movement for the adoption of this scheme is supported mainly by moderate
elements of the Socialist and People's Parties. Chancellor Figi, Ministers Kraulanda.
Helmer, and Sagmeister, State Secretaries Graf, Schaerf, and Mantler, and such others
as Haab and Reither are supporting the plan. It in opposed, on the other hand,by
the Coffinnist Party, the left-wing Socialists, and the extreme right of the People'
Party under Minister for Agriculture and Forestry Kraus and Engineer VInzenz
Schumve
However, the officials of the Siemens.chuckert central office in Nibelu ngengasse,
Vienna I, have stated that Siemens is both able and willing to back the plan,
provided other electrical firms also support it. The Siemens directors indicate that,
they could stand an average price cat of 10 to 15% and as much as 20% for some
articles. Before making a definite commitment, the Siemens directors wish, however,
to be informed of the reaction of other electrical goods manufacturers and also
request time to consult Johannes Boehm, president of the Austrian trade unions?
4. Subsource does not believe it likely that price cuts will actually be applied
without the full support of industry and a thorough canvass of expert opinion.
STATE
ARMY
CLASSIFICATION
I NM ---T7
DC CURIArit .;140.
ss. CI1AIT FJ T
DDA D,1 n.iot
e 200 IA-RDP82-00457R001300170009-7