ECONOMIC INTELLIGENCE WEEKLY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001500150019-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 14
• Document Creation Date: December 22, 2016
• Document Release Date: September 29, 2009
• Sequence Number: 19
• Publication Date: April 24, 1974
• Content Type: REPORT

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Secret
Economic Intelligence Weekly
Secret
CIA No. 8031/74
24 April 1974
Copy N2 354
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SI',(;It1s'I'
Pie
Saudi Arabia Wants Foreign Investment Outside support for
industrialization is being encouraged by new investment policy. I
China: Small Plants Perk Up Economic Development Small plants
boost the agricultural sector at low cost.
Soviet Chemical Industry: Market for Western
Equipment Shortcomings in Soviet chemical machine building will
compel reliance on advanced Western equipment.
India: Economic Problems Pile Up inadequate grain supplies,
industrial lags, and trade deficits add up to a bleak 1974. 4
Japan: Soaring Wages and Slipping Production Inflationary wage
hikes make government hesitant to stimulate economy. 5
Canada: Test of the New Foreign Investment Law Ottawa adopts a
tough policy on screening takeovers of domestic firms. 6
Peru: The Anchovies Are Back 7
Soviet Birth and Death Rates Inching Up 8
Possible Attempt to Set Copper Prices 8
Dominican Republic Seeks Better Deal from ALCOA 8
Comparative Indicators
Recent Data Concerning Internal and External
Economic Activities Al
The oil situation is now being covered mainly in
International Oil Developments, published each
Thursday morning.
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S I',C R E'I'
ECONOMIC INTELLIGENCE WEEKLY
Articles
SAUDI ARABIA WANTS FOREIGN INVESTMENT
The Saudi government is welcoming foreign investment - less to attract
capital than to insure sound economic development.
The Saudis' fast-growing wealth and favorable investment climate have
generated widespread business interest abroad. In the past year, investors
have proposed hundreds of joint ventures. Saudi officials foresee as much
as $2 billion worth of foreign investment annually over the next several
years. Total foreign investment in Saudi Arabia now amounts to about
$2.5 billion, of which four-fifths is held by US firms.
The government favors competition among potential investors as the
most effective means for selecting projects and obtaining low-cost
production. Foreign partners are valued for their administrative and
technical expertise and for their access to international markets. The Saudis
prefer a minimum of 25% capital participation by a foreign firm to assure
its interest in the venture; private Saudi participation improves chances of
acceptance by the government.
Investment opportunities range from multi-billion-dollar industrial
complexes to small projects to serve the local market. The larger projects
will feature energy-intensive and capital-intensive industries producing
primarily for export; these are favored because of the small domestic market
and lack of skilled labor.
The Saudis hope to use their huge output of natural gas - now
wasted - in plants producing; iron, steel, aluminum, magnesium, copper,
zinc, and other metals.
The Eastern Province, along the Persian Gulf, is to be developed as
the primary industrial center. Under the 1975-80 development plan, several
Large petrochemical projects, fertilizer plants, and oil refineries will be
added to existing facilities in this area.
A smaller program of industrial and agricultural development is under
consideration for western Saudi Arabia, around Jidda. To curb the rush
to urban areas that usually accompanies industrialization, the Saudis are
seeking to create modern communities centered on new local industries.
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SF'CRE I'
from customs duties, and exemption of a foreign partner's share from the
tax on corporate profits. The government also will assist new companies
by providing space at industrial parks and helping to train Saudi workers.
The government has assured foreign investors that it will respect private
ownership and allow capital to move freely. Other incentives, intended
primarily for Saudi investors, should also benefit their foreign partners --
loans on easy terms, exemption of imported equipment and raw materials
CHINA: SMALL PLANTS PERK UP ECONOMIC DEVELOPMENT*
China's small plants program has speeded up the modernization of the
countryside through the vigorous mustering of low-cost labor and materials.
Hundreds of thousands of' small plants located in outlying areas now
contribute more than half of output of chemical fertilizers, 50%%
of the cement, 301/o of the coal, 15% of the iron and steel, much of the
farm machinery, and 5% of the electric power. The quality and technical
level of output, while below the standards of major urban plants, are
sufficient for simple rural uses.
Given China's vast population and inadequate land and capital, the
small plants program makes sense economically; failures are attributable to
overzealous implementation during periods of political turbulence, such as
the Leap Forward. Economic benefits from the program include:
? Provision of additional materials, equipment, and power
needed to boost agricultural production;
? Fuller use of China's huge rural labor force;
? Reduction of transport costs;
? Diffusion of capital plant and technology into the
countryside: and
? Increase in local control over local economic tasks, which
lessens the burden on central administrative resources.
for the further development and upgrading of small plants are excellent
because their basic economic and political advantages will persist.
The Chinese tout the small plants program as a part of Chairman Mao's
general political design - of preventing the dominance of a central
bureaucracy, reducing the cultural differences between city and countryside,
and establishing self-sufficient rural bases for strategic defense. Prospects
* For further details, see the forthcoming OER report, China: Role of Small Plants in Economic
Developmen
2
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SFI(:I( L'I'
SOVIET CHEMICAL INDUSTRY: MARKET
FOR WESTERN EQUIPMENT
The USSR, unable to supply enough equipment for its chemical
industry, must continue to rely on the West, especially for advanced items.
Leonid Kostandov, Minister of the Chemical Industry, recently blamed
shortages on the failure of machine building plans to reflect the needs of
the chemical industry. Moreover, production of chemical equipment in 1973
fell 12`% below plan, the shortfalls being particularly pronounced in
equipment for modern production processes.
In his critique, Kostandov pointed out that:
? Output of major lines of equipment satisfies only 50%-70%
of chemical industry requirements, far less than previously
claimed.
w Production of plastics processing equipment remained
practically unchanged during 1966-72, while plastics output
more than doubled.
? Inadequate output of corrosion-resistant eouipment compels
the substitution of pumps and other equipment ill-suited for
chemical plant operations.
Delays in deliveries from Eastern Europe have aggravated the shortages.
In the two years 1971-72, the. area shipped only 21% of the $1.4 billion
worth of East European chemical equipment scheduled for the Soviet
1971-75 plan.
Kostandov's complaints help explain the record 1973 orders for
Western chemical equipment - estimated at $900 million. Although orders
in 1974 may not mctch those of 1973, current negotiations suggest that
they will be large. Western firms will have a new opportunity to make
sales in September during a petrochemical trade fair to be held in Moscow.
3
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INDIA: ECONOMIC PROBLEMS PILE UP*
India faces a bleak year of tight grain supplies, retarded industrial
production, and a massive foreign payments deficit.
Grain reserves were exhausted during the 1972 drought, imports in
1973 were minimal, and the 1973/74 grain crop is not providing the surplus
needed to rebuild depleted stocks. Meanwhile, India needs an additional
2.5 million to 3 million tons of' grain each year to feed the 14 million
persons added to the population. The 1974/75 crop will be hurt by fertilizer
shortages; weather remains the major unpredictable factor. A good crop
in 1974/75 would meet immediate consumption needs without doing much
to rebuild inventories. A poor crop would push New Delhi's grain import
requirements up to 10 million tons or more. Most of this grain, which
would cost India a minimum of $2 billion, would have to conic from the
United States.
Industrial production, recently increasing at less than 5%, will continue
to be held back by government restrictions on private foreign investment
and by inadequate funding of public investment. Transport bottlenecks and
chronic energy shortages also impede production. New Delhi must import
two-thirds of its petroleum requirements, and increased crude oil production
is a long way off. Coal production and construction of new power stations
lag far behind schedule.
Increased prices of petroleum, fertilizer, food, and industrial raw
materials will push the import bill up 43%/o to an estimated $4.7 billion
in the fiscal year ending 31 March 1975. For instance, fertilizer imports,
even at last year's inadequate level, will cost an extra $300 million in 1974.
Prices for the country's key exports - cotton textiles, tea, and jute - have
not increased commensurately. India's exports will increase only about 13%
to $3.4 billion.
Under these conditions, a balance-of-payments deficit of $2.3 billion
is expected. About $825 million would be offset by the $200 million
remaining from the Soviet food loan, the $250 million oil credits from
Iran and Iraq, and a recently requested $375 million IMF standby credit.
Additional means to finance the remaining $1.4 billion deficit would be
required. The government, as always, will be reluctant to draw down its
foreign exchange reserves, now totaling $1.1 billion. Unused non-project
aid of about $450 million cannot be drawn down rapidly, because it is
generally tied to specific products and countries. If large amounts of new
foreign aid are not forthcoming, the government would probably squeeze
the volume of imports down below last year's austere level.
? For further details, sec CIA ER IM 74-5, India: Economic Performance and Prospects, April
25X1 1974
4
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S I CRE'I
The United States, for its part, has been reviewing its economic policies
toward India since December 1971, when US aid was suspended. US officials
will discuss the resumption of aid with Indian officials in New Delhi later
this month. Both sides have taken steps to move away from a donor/client
relationship. US aid, if resumed, will be small compared with the $500
million per year provided during the late 1960s.
JAPAN: SOARING WAGES AND SLIPPING PRODUCTION
The sharp wage hikes won in organized labor's "spring offensive" will
keep Japan's inflation rate in the 20%-25110 range this year, making it one of
the highest among the developed countries. Tokyo thus will move cautiously
in trying to stimulate a flagging economy.
So far, wage increases averaging out 30% have been won by railway
employees, seamen, postal emplovees, auto workers, steel workers, and
shipbuilders. Small and medium-sizad manufacturing firms generally have
been slow in coming to terms. The recent credit squeeze, rising materials
costs, and slumping demand have proc;,.iced a wave of bankruptcies among
such firms.
Labor's push for big pay increas..-s was spurred by rapidly rising
consumer prices. In the second half of 1973, consumer prices rose at an
annual rate of 20%; by January, real wages were 4% lower than a year earlier.
Unions sought gains that would both compensate for recent price increases
and offer protection against future rises. Government units such as the
national railways and postal system offered little resistance because the
ruling party wanted to avert labor disputes before the coming parliamentary
elections.
The new pay increase will push up prices much more strongly than did
the 20% pay increase in 1973. Under the impetus of the boom, last year's
increase was largely offset by sharp gains in labor productivity. With
production sagging and firms observing the custom of not laying off workers,
productivity gains will be small this year. In 1971, during a less severe slump,
labor productivity rose by only 4`7,,, compared with the long-term average of
11%.
Other inflationary factors should ease as the year wears on. The jumps
in international oil prices during the past seven months are not likely to be
repeated, although past increases still are working through the system to the
consumer. Electric power rates, for example, will have to be hiked soon.
5
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Recent surges in the cost of key imports such as coal and copper are
expected to taper olT, and grain prices should remain below last year's highs.
On the demand side, fiscal and monetary restraints have brought a noticeable
cooling.
Meanwhile, production continues weak. Industrial output declined 2%
in December, stagnated in .anuary, slipped another half percentage point in
February, and showed little if any improvement in March. Inventory
buildups and a 5% drop in shipments of manufactures in February suggest
that further production cuts are coming. Demand for automobiles and steel
is way clown, and orders for machinery (excluding ships) and construction
have declined sharply.
The course of produc-
tion during the rest of the
year depends on how
quickly and decisively
Tokyo eases monetary and
fiscal restraints and relaxes
price controls. Because the
high inflation rate is a sensi-
tive political issue, the gov-
ernment will continue to re-
strain demand at least until
the summer election is past.
Minister of Finance Fukuda
and central bank head Sasaki
imply that restrictive pol-
icies will be maintained be-
yond that time, despite the
pinch on economic growth.
We still expect real GNP to
grow between 3% and 5%
this yea
INDUSTRIAL PRODUCTION'
Annual Growth Rate (Percent)
17.6
150
140
s
130
120
0
110
10011i ]]II I I I I I I
J FM AMJJ AS OND JFMAMJJ AS 0 N DJ F
'SusonslN Adjusted
CANADA: TEST OF THE NEW FOREIGN INVESTMENT LAW
Ottawa intends to stringently apply the new foreign investment law,
which became effective on 9 April. A test case of the law's first phase,
which provides for the screening of takeovers of Canadian firms, involved
the purchase by a medium-sized US manufacturer of a 49% interest in a
Canadian company in February. Although not bound by the new law, the
6
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SEC R El'
US company agreed to Ottawa's request for government review of the
transaction.
In his review, Trade Minister Gillespie emphasized that the government
wanted the manufacturer:
? To submit a letter of commitment detailing specific actions
the firm was prepared to take to benefit the Canadian
economy.
? To refrain from limiting exports through licensing restrictions
or sales agret!n-,,nts with its Canadian partner.
? To keel) a large share of the firm's earnings in Canada, either
through reinvestment or distribution of stock dividends.
Gillespie apparently was conducting a dry run to uncover weaknesses
in the first phase of the law and to work out interpretations favorable
to Canada's interests. Under this phase, takeover bids for Canadian
companies with assets above $250,000 or annual sales exceeding $3 million
will be screened by Ottawa to control the number of such firms passing
out of Canadian hands. A second phase, which regulates establishment by
foreign firms of new businesses in Canada and expansion by foreign firms
already in Canada into unrelated activities, will become effective at an
unspecified date.
Ottawa's use of the new law will be tempered by consideration of
Canada's dependence on foreign investment. Ambitious plans to exploit
natural resources over the rest of the decade will require large amounts
of foreign investment. Moreover, most of the provinces are actively seeking
foreign investment as part of their industrial development programs.
Peru's anchovy catch for 1974 may be more than 4 million tons,
compared with 1.8 million tons last year. The size and quality of the
anchovies have been excellent, and fishmeal productic,,, is expected to total
about 900,000 tons. Encouraging reports of the Peruvian catch have
contributed to a drop in world soybean meal prices from a January high
of $ 173 per ton to $115 per ton. The soybean meal price may recover,
however, because fishmeal has remained at a high of $400 per ton.
7
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SFICRl1'1'
Soviet Birth and Death Rates Inching Up
The decline in Soviet birth and death rates of the last half' century
has been reversed, if only temporarily. The rise in the birth rate since 1970
results from the growing proportion of women in prime child-bearing ages
and the increase in the birth rate among these women. A tendency toward
earlier marriage suggests that couples are having children earlier; it is not
yet clear that family size is actually increasing. The rising death rate seems
to be related to increased industrialization and the accelerated pace of urban
life. The offsetting trends in birth and death rates have kept annual
population growth practically unchanged at about 1% since 1965. In the
United States, by contrast, a declining birth rate and a stable death rate
reduced annual nonulation growth to 0.71/o in 1973, compared with 1.2%
in 1965.
Possible Attempt to Set Copper Prices
Next week four major copper exporters - Chile, Peru, Zambia, and
Zaire - are meeting in Austria, with copper prices one of the major topics.
Trade sources belic?e that the copper exporters will seek to set a minimum
copper price in a range of 75 to 90 cents a pound. This range is well
below the current price of about $1.30 per pound. With world copper
supplies tight through 1974, prices are not expected to fall to this range.
Nonetheless, the excursion into price setting could break the ice for more
significant price setting in the future.
Dominican Republic Seeks Better Deal from ALCOA
The Dominican Republic intends to renegotiate its contract with
ALCOA Exploration Company. The firm currently exports about 1.0 million
tons of Dominican bauxite annually to the United States; these shipments
meet 41% of US needs. Santo Domingo will insist on increased revenues.
Moreover, it will probably pressure the company to process the bauxite
locally if supplies prove adequate to justify a $100 million to $150 million
alumina plant. Dominican officials meanwhile are considering joining the
new Intergovernmental Bauxite Association, 'hose members already
account for about 80% of Free World bauxite exports.
8
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INTERNAT. ECONOMIC INDICATORS
Al,?,al,. Annn.,l
WIIU1 (SAI I I'IIIC1
h
k
1
A,... Annual
I;niwill Ilahr ti~m,
il
1''.1
I
,,nwtli IIii, Snim
I Ii i
hnm 1'I' ,inr,
I Yv?r,
I :11 1 Itnn,
I'rr.ni l'.
I Yl it :IMnnih.
Iluaner
Ilunr hn
I a, hr,
(her lei
Minnh M
n,nh
Iy;11
f?inm, Inlm,
Illllir!II Slate';
141
14
411
114
56
United States
Mat 14
2!l
8 1
196
301
Japan
I IV
14
It :I
/11
58
Japan
Mar 14
07
I1 2
354
482
West Germany
/:I IV
01
.II
34
l1 3
West Germany
Jan 14
2 1
5 9
1116
205
Fri ce
/3 III
119
50
li l
38
France
Feb 14
:15
11 F.
295
626
Wnled Knn)dunl
1;1 11I
13
:i !I
li ll
52
United Kingduni
Mar74 1,
31
100
187
413
Italy
1:11
118
31
2
34
Italy
Nov 1:1 I
13
86
212
118
(:anad,l
1:1 IV
it
Il l
12
II6
Canada
Jan 74
3.3
94
198
218
Avrrayr AunuaI
6 1t1wlh lidh! 51,0
0
vv Aunu il
G, Alt, Hale S tire
Mnnlh
ti111?1,
I yed,
I'17n lame,
Wolf's
lot he, ??
Lnesl Near Prevmus
Mnn,h Mnnlll 1971
1 Year 3 Months
E oilier Either
(United Stales
M,u 14
114 I
44
Il
19
United States
Mar 74
1.1
5.L
1 10.3
14.0
Japan
Ich14
115
82
81
29
Japan
Feb 74
3.4
11.0
263
56.3
West Germany
,Ian 14
ll(i
32
116
4 3
West Germany
Feb 74
0.9
63
76
10.2
France
Fc'? 14
115
66
41
20
France
Fell 74
1.3
7.3
115
156
United Kingdom
Jan 14
13 /
8 I
111
111
United Kingdom
Feb 74
1.7
95
132
19.0
Italy
Jan 14
36
54
191
246
Italy
Dec 73
14
7.7
12 5
145
Canada
Fell 14
1 2
6 7 45
8.7
Canada
Feb 74
1.0
5.8
96
9.9
1 I ,1 I I 11 ;
.,
Ave, aqe Annual
Grnwlh Hdh! SeeP
Aver ege Annual
Growth Hate Since
I .,Ie?,I
1'en en, Champs
hum Prnvmus I Year :I Months
Prn: our Churls ---
Idlest Ito Pitrvnms 1 Year 3 Monihs
Month
%I it, 1111 En, tier Falilr"
Mona, Morrill 1911) E ar her Earlier ??
United States
Mar 14
2 0
105
48
55
Unit
ed States
Mar 74
0.9
7.4
1.1
14
Japan
Nov 13
3 4
146
214
32.0
Japa
n
Dec 73
0
1
16 7
147
West Germany
lblc /J
ll 5 18
58
16
Wes
t Garman
y
Jan 74
0.1
8.9
0.6
98
France
Nov /3
2 4 56
152
20.1
Fran
ce
Jan 74
1.1
13.2
12.3
10.1
United Kingdom
Nov IJ
j II 1 121
141)
219
Unit
ed Kingdo
m
Feb 74
-05
9.0
3.6
02
Italy
Au0 /3
6 1 12.4
190
5.0
Italy
Oct 73
1.6
20 7
23.0
214
Canada
Jan 74
2 9 112 129 15.9
Cana
da
Feb 74
0
130
1 16
13.3
I Year 3 Mamhs I Month
nrquetrttiatwe Nail.
tatest Oate Earlier Earlier Ear her
United States
Prime Imance paper
29 Mar
8.00
66 3 1 800
125
Japan
Call money
15 Mar
12 50
5.50
12 00
1200
West Germany
Interbank loans (31101onlhl
29 Mar
11 38
NA
13.00
10 38
France
Call money
22 Mar
11 88
7,25
NA
12.75
United Kingdom
Local authority deposits
29 Mar
16.00
7.32
16.91
1463
'Seasonally adjusted.
"Average for Iate;t 3 months compared
Canada
Finance paper
29 Mar
9.00
5 13
9.50
8.50
with average for previous 3 months.
Eurn Dollars
Three month deposits
29 Mar
10 00
8 63
10.13
8.88
24 April 1974
Office of Economic Research/CIA
Al
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EXTERNAL ECONOMIC INDICATORS
I XPUIII S'
Inh
United Stales
,Japan
West Germany
France
)Jnltud Kingdom
Italy
Canada
IMPORTS'
till)
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
TRADE BALANCE'
fob/lab
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
Milluni 115 S
I Feb 14 1,611)
Mar 14 3.139
full 14 6 521
Mar 14 3,611
Mar 14 2,830
Jan 14 1,966
Feb 14 2,458
Million US S
Full 74 1,391)
Mar 74 4,390
Feb 14 4.316
Mar 14 3,953
Mar 14 3.890
Jan 14 2.170
Feb 14 2,501
Whirl US S
1!114 1913 I:haneu
14,120 10,042 466
11.023 8,1)82 30.4
13,541 9,324 452
10,542 1.913 33 2
7.704 6,434 197
1,960 1,494 31.6
4,902 3,941 24.4
CuII l ilrvu
Million IIS S Pen cot
1914 1111,1 L'hanq',
13,800 IU.822 281
11.949 6.356 88,0
9,303 1,449 25.7
11,226 1,633 47.1
1 U,592 7,313 44.8
2,170 1.487 46.0
4,733 3.637 30.1
Mdhin (IS S 1914 1913
Feb 14 220 860 . 780
Mar 74 -651 -926 1,725
Feb 74 2,151 4,178 1,875
Mar74 282 -684 280
Mar 74 - 1.060 -2,888 -878
Jan74 -205 205 8
Fob 74 49 169 304
Change
1,040
2,651
2,303
- 964
-2.010
-212
135
EXPORT PRICES
IISS
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
EXPORT PRICES
National Currency
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
IMPORT PRICES
National Currency
United States
Japan
West Germany
France
United Kingdoi 1
Italy
Canada
Pu1.enl Chdogu
l itesl floor Pnl villas
Mouth Month 19111
Jan 14 00 102
Nov 13 03 13 2
Jan 74 15 10 0
Oct 73 2.9 1. 9
Doc 73 0.1 8.7
act 73 2.1 11 6
Duc 73 3.1 10 2
'un:um Change-
LAW mes Ptuvlous
Mono) Month
Jan 74
Nov 73
Jon 74
Oct 73
Dec 73
Oct 73
Dec 73
0.8
3.6
1.1
1.8
3.1
2.4
3.1
3.7 4.6 19.8 31 0
8.2 5.0 19.5 82.3
-1.5 5.3 14.3 35.2
5.2 16.4 43.1 53.1
3.4 14.0 38.7 30.8
2.4 6.3 15.8 19.5
Average Annual
Grnwlli 11 ,1111 Since
I Year
Ianher
26.6
21.4
21.8
31.9
1'7.3
23.7
26.8
:1 Months
tither
21.5
11.0
378
15.7
12.4
29.1
50.1
Average Annual
Growth linle Since
I Year
Earlier
26.6
14.9
7.1
10, 7
18.8
20.4
27.0
3 Munlhs
father
27.5
34.1
14.5
34.9
33.4
17.0
44.8
Average Annual
Growth Rate Since
Percent Clran(lr------ ---
Latest Inmr Pi !vunis I Year 3 Months
Month Month 19111 Earlier Earlier
Jan 74 3.7 14.3 34.4 58.6
Nov 73
Jan 74
Oct 73
Dec 73
Oct 73
Due 73
BASIC BALANCE"
Current and Long Term Capital Transactions
(Seal Period Cuninleirve IMelion US S)
United States'
Japan
West Germany
France
United Kingdom
Italy
Canada
73 IV
Mar 74
Feb 74
73 IV
13 IV
12 IV
73 IV
Million US S
200
1.150
1.161
-352
1.394
800
27
Change
11,024
11,839
-816
-2.022
!,175
N.A.
-779
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
1973
1.188
-9.702
3,950
-2,391
-3,164
NA.
376
1912
-9,838
2,137
4,566
-369
1,989
2.983
1,155
Billion US S
Lifesl Month --"-- - ----
I Year 3 Munlhs
End ill Billion US S Jun 1910 Earlier Earlier
Feb 74 I 14.6 16.3 14.0 14.4
Mar 74 12.4 4.1 18.1 12.2
Feb 74 32.0 8.8 29.7 34.1
Mar 74 8.1 4.4 11.2 8.5
Mar 74 64 2.8 6.0 8.5
Feb 74 5.4 4.7 8.4 6.1
Mar 74 6.1 4.3 6.2 5.8
'Seasonally adjusted.
"Converted into US dollars at current market retes of exchange.
24 April 1974
EXCHANGE RATES Spot Oat,
As of 19 April 74
Japan (Yeni
West Germany Ma lrrhl
France Uranrl (Pound
United Kin,,idom Stelling)
Italy n;-;ll
Canada 1Doearl
US S
Per Ural
0.00361
0.39840
0.20570
2.38450
0.00157
1.00350
19111
10.2
4.8
2.7
6.6
9.8
8.3
8.7
18 Dec 19 Mar
Dec 66 1971 1973
30.77 11.12 -5.13
57.68 27.75 11.95
1.88 4.47 6.67
-14.55 -8.49 -3.11
-1.81 -8.60 -11.19
12.26 3.78 3.79
TRADE-WEIGHTED EXCHANGE RATES'
As of 19 April 74 Percent Change from
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
Dec 66
-17.34
19.06
33.82
-20.95
-33.96
-23.42
8.89
18 Dec
1971
-7.93
5.21
16.69
-7.45
-19.76
-22.08
2.29
19 Mar
1973
-1.27
-6.75
11.64
-9.89
-5.39
-15.19
3.93
12 Apr
1974
-0.58
0.03
0.44
0.39
0.52
-0.75
0.45
"'Weighting is based on each listed country's trade with , d other industrialized
countries to reflect the competitive impact of exchange-rate variations
among the major currencies.
12 Apr
1974
0.25
0.99
1.08
1.00
0
0.59
Approved For Release 2009/09/29: CIA-RDP85T00875RO01500150019-6