ECONOMIC INTELLIGENCE WEEKLY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001500150023-1
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 15
• Document Creation Date: December 22, 2016
• Document Release Date: May 14, 2010
• Sequence Number: 23
• Publication Date: May 22, 1974
• Content Type: REPORT

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Secret
Economic Intelligence Weekly
Secret
CIA No. 8035/74
22 May 1974
Copy N2 159
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Brazil: Inflation and Indexing Brazil has gradually lowered its inflation rate
from 90% to 15%. 1
Concern Over Eurodollar Market Stability Grows Rapid influx of oil money
strains system. 2
Pakistan Renegotiating Consortium Aid The United States proposes a 75%
increase in the amount of debt rescheduling recommended by the IBR.D. 3
US Cotton Exports to Decline Higher foreign production of cotton and
sluggish world economy depress demand. 4
Jamaica: Implications of Tax Increase on Bauxite Other bauxite exporters
are likely to increase levies. 5
Climatologists Bearish on World Food Ot'tlook The world's favorable
climate seems to be changing, with a potentially serious effect on agriculture. 7
Soviets Sign With IBM for Kama Computers 8
Gulf Withdraws from Sakhalin Project 8
Canton Fair: More US Firms, Less Business 88
Indonesia Gets Large-Scale Aid
Dollar Decline May Be Over 9
Summary of a Recent Publication
Comparative Indicators
Recent Data Concerning Internal and External
Economic Activities
The oil situation is now being covered mainly in
international Oil Developments, published each
Thursday morning.
i
Note: Comments and queries regarding this publication are welcomed.
i
Secret
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Secret
ECONOMIC INTELLIGENCE WEEKLY
Articles
BRAZIL: INFLATIOPJ AND INDEXING
Since the military coup of 1964, Brazil has gradually lowered the rate of
inflation from 90% to 15% through a mixture of controls, with the help of a
system of "indexing." The success of the anti-inflation program is largely
attributable to the government's pervasive authoritarian control over the economy.
Meanwhile, Brazil has enjoyed one of the world's highest growth rates, averaging
about 10% since; 1967.
Indexing is the annual adjustment (according to the wholesale price. index)
of the book value of inventories and fixed assets, contracts and commercial paper,
savings accounts, loans, government securities, mortgages, and rents. The increases
in nominal value are not regarded as real income and are not taxed. Wages are
not directly indexed. Minimum wage rates and officia, wage guidelines, however,
are adjusted periodically according to formulas that take productivity gains into
account and compensate labor for past and expected inflation. The exchange rate
is devalued every 30 to 60 days to Compensate for the difference between domestic
and international inflation. Finally, Brazil's personal income tax is adjusted annually
so that nominal gains in earnings will not force the taxpayer into higher tax
brackets.
Monetary correction, the Brazilian term for indexing, has helped to restore
financial order to an economy threatened with chaos. The market for government
securities, which had disappeared during the early 1960s, has been restored. Brasilia
can now borrow from the public rather than resort to inflationary financing by
the Central Bank. Moreover, open market operations in government securities have
strengthened the monetary authorities' ability to control the money supply. Finally,
by restoring the attractiveness of savings accounts and other financial assets,
indexing has encouraged private savings.
Indexing has had the broadest possible application and has pro-tided every
economic interest with basic protection against inflation. The favorable
psychological climate created by indexing helped the government both to restrain
excessive wage demands and to force business to improve its efficiency and absorb
some cost increases through lower profits. During the first years after the military
coup, labor bore the brunt of the stabilization program and real wages were reduced.
Subsequently, profits have been squeezed fairly steadily and business enterprise
has been under heavy pressure to help contain further price increases.
The stabilization program made steady progress until 1973, when inflationary
pressures began to build up. Accelerating consumer demand, the elimination of
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excess industrial capacity, and sharply rising prices for petroleum and other imports
resulted in a 15% price increase in the first four months of 1974 - about the
same increase as for all of last year. The recent feeling amon Brazilian officials
that indexing could be phased out now seems premature
25X1
CONCERN OVER EURODOLLAR MARKET STABILITY GROWS
The turbulent growth of the Eurodollar market as a consequence of the inflow
of oil producers' funds has heightened concern that the market is overextended.
The flow of oil producers' surplus funds continues to to concentrated in the
Eurodollar market. If present trends continue, the value of Eurodollar assets and
li, bilities will jump nearly 50% by the end of this year, to about $150 billion.
This rapid expansion is cat sing many financial analysts to reevaluate the market's
weaknesses. These include:
The potential instability of the deposit base, particularly when a
few oil producers control a substantial and growing proportion of
the market's deposits.
? The absence of a lender of last resort to assist a bank in the event
of an unexpected drawdown of deposits or other development that
would erode the bank's liquidity.
? The extremely low and continually declining equity ratios of most
of the banks active in the market.
? Recent financial difficulties, most evident in the Franklin National Bank, the
Union Bank of Switzerland, and the Westdeutsche Landesbank, but involving
other banks as well; these difficulties stem from unsuccessful speculation in
foreign exchange.
Although the failure of a major Eurodollar bank is still unlikely, the potential
has increased. A recent decision by some Swiss banks to move about $200 million
from London to the United States indicates that fears of a failure are becoming
strong enough for some banks to accept lower US interest rates in return for the
increased protection the US capital market offers.
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US parent banks with access to the Federal Reserve as a lender of last resort
wauld probably support an imperiled overseas branch but would be under no legal
obligation to do so. Parent banks of other nationalities might have more difficulty
in securing assistance and will likewise be under no obligation to support their
Eurodollar banking affiliates.
Islamabad began negotiations with consortium members last week in Paris,
with debt division, rescheduling, and new aid the main items on the agenda. The
United States, as the major creditor, has taken a leading role in the talks by
proposing a 75% increase over the $360 million in debt rescheduling previously
recommended by the IBRD. Several creditors will refrain from considering new
aid until Pakistan and Banglad:;sh work out the division of liability for aid drawn
prior to Bangladesh's independence in 1971. Without rescheduling and new aid
comii-iitments, the possibility of Pakistan's declaring a debt moratorium appears
strong.
Pakistan claims that its total liabilit" to the consortium was $2.4 billion when
Bangladesh became independent. Islamabad has indicated a willingness to accept
responsibility for nearly $900 million of pre-1971 nonproject assistance to Dacca
if (1) it is granted debt relief of $1.2 billion and (2) a major rescheduling of
its remaining debt is included. Islamabad has cited two major reasons for seeking
relief.
Its debt service burden, including the accented portion of the
pre-1971 debt, will average more than 30% of foreign exchange
earnings during the remainder of the 1970s.
Its anticipated 1974 trade deficit will be on the order of $400
million, with little likelihood of improvement before the end of the
decade.
The consortium is considering accepting the US rescheduling proposal of $600
million to $650 million for FY 1975-78 - about 50% of repayments due in that
period on aid disbursed prior to 1971. The consortium at this time will not consider
rescheduling aid drawn since 1971. IBRD estimates that currently committed aid
and new aid flows for FY 1975 could approximate $350 million. This amount
would be sufficient to cover a rescheduled debt of the size being proposed by
the United States and to provide net aid of more than $100 million.
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Growing weakness in international cotton
markets points to a drop in US export prospects
for the 1974/75 marketing year, reversing the
trend of the last several years.
The value of US cotton exports during the
current marketing year ending on 31 July should
total about $1.4 billion, a 75% increase over the
value of exports in 1972/73. Strong foreign
demand is boosting export volume 13% to 1.3
million tons - nearly 30% of world exports. A
relatively poor US crop and resulting concern
about possible supply shortfalls contributed to a
more than doubling in cotton prices.
In 1974/75, both the volume and price of US
cotton exports should be lower:
? Foreign production (including
US Cotton: Spot Pricesl
Cents per Pound
1.973 1974
Jan 32.29 78.08
Feb 33.15 68.56
Mar 35.04 62.38
Apr 40.24 63.35
May 45.15 58.202
Jun 45.98
Jul 52.09
Aug 66.94
Sep 80.50
Oct 75.29
Nov 66.71
Dec 76.62
1. Monthly average for strict low
middling, 1-1/16 inch in 11 major
Communist) is expected to increase markets.
3% to a record 10.4 million tons. 2. Average for first 20 days.
Most of the increase will take place
in traditional exporting nations such as Pakistan, Turkey, Iran, Syria,
Mexico, and Brazil.
? Growth in foreign consumption will probably slow to less than 3%
because of sluggish economic conditions in developed countries and
foreign exchange stringencies in LDCs.
? Importer stocks, which will be at record levels by 31 July, will be
drawn down if he market continues weak.
Foreign contracts for about 700,000 tons of US cotton from the 1974/75
crop were negotiated before the end of 1973; sales have subsequently dwindled
as the softness of the market has become evident. Some countries are now trying
to renege on contracts, and others are delaying purchases in the expectation of
lower prices. China, for example, has contracted for only 85,000 tons so far from
the US 1974/75 cotton crop, compared with 725,000 tons in 1973/74.
Cotton prices have declined nearly 30% since, January and are likely to go
lower. Favorable growing weather and a 19% increase in US planted acreage have
contributed to the recent price decline. Prices are not expected to fall to the level
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of early 1973; for one thing, prices of substitute man-made fibers have been rising
rapidly because of increases in the cost of petroleum feed stocks and labor. Because
of the low level of US stocks, cotton prices will remain sensitive to changes in
crop prospects.
Jamaica, source of one-half of US bauxite supplies, plans to raise taxes and
royalties from $2 to about $11A a ton in the next few weeks. This increase will
hike the cost of Jamaican bauxite to US aluminum smelters by about 80% but
will add only about 8% to the cost of the final aluminium. Most other bauxite
exporters probably will take similar action.
The government also plans to set minimum production quotas at the record
level of last year. Jamaica thus should gain about $160 million from the bauxite
industry in 1974, compared with $ 25 million in i 973. Bauxite revenues henceforth
are to be linked to US aluminum prices and could reach $200 million by 1976.
For the short term, the aluminum companies have little alternative but to go
along with Jamaica's plans.
It would take six months to a year to replace one-fourth of Jamaican
supplies with production elsewhere and at least two years to replace
all Jamaican output.
Although the US stockpile still equals a year's supply of Jamaican
bauxite, large increases in aluminum output in the last nine months
have sharply reduced world bauxite stocks.
60 Failur- to comply with the minimum production quotas could
expose the companies' $850 million investment to expropriation.
The aluminum companies have no pressing financial reasons to resist the tax
rise. Bauxite represents only 10% of aluminum costs. A near-doubling in bauxite
prices will add only 2-1/2 cents to US aluminum costs; the price of US aluminum
currently is controlled at 31.5 cents per pound. Since aluminum demand is strong
and rising, the producers should have little difficulty passing on the hike after
US aluminum prices are decontrolled 1 August.
Since bauxite normally makes up two-thirds of Jamaica's export earnings, the
jump in revenues would eliminate this year's prospective balance-of-'f-,ayments
squeeze. A $100 million increase in oil imports this year and large increases in
the cost of grain and other food imports already have forced the government to
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Bauxite Holdings of the Six Aluminum Companies Operating in Jamaica
1973
Location of Bauxite Production
Capacity
Total Bauxite
Production Capacity
Percent of Com-
(Thousand Tons)
Country pany Total
Alcan Aluminium, Ltd.
5,600
Jamaica
55
Guinea
14
Malaysia
11
Other
20
Aluminum Company
of America
12,200
Surinam
38
Australia
23
Dominirsn
Republic
12
Jamaica
11
Other
16
Anaconda Company
910
Jamaica
100
Kaiser Aluminum and
Chemical Corporation
11,850
Jamaica
58
Australia
40
Other
2
Revere Copper
and Brass, Inc.
Reynolds Metals
G)mpany
8,000
Jamaica
58
Australia
40
Other
2
tighten import curbs. These restrictions have accelerated inflation and have helped
hold down the real economic growth rate to about 3% -- half the long-term
average. The new bauxite revenues would raise government receipts 30%-40%
permitting expanded public investment to alleviate the serious unemployment
problem.
Kingston's lead probably will be followed by other bauxite-exporting countries.
Six other exporters - Australia, Guinea, Guyana, Sierra Leone, Surinam, and
Yugoslavia - recently joined Jamaica in forming an Intergovernmental Bauxite
25X1
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Association. The seven ccantries account for three-fourths of Free World bauxite
exports and 70% of commercially exploitable bauxite reserves.
Higher bauxite costs will make alternative aluminum-bearing ores more
competitive. Although these ores are available in the United States in vast quantity,
exploitation has been confined to four small pilot plants. A substantial shift to
their use would require replacement of a corresponding share of alumina refinery
capacity and would take at Icast a decade.
CLIMATOLOGISTS BEARISH ON WORLD FOOD OUTLOOK
At a recent private meeting, seven top-drawer Anglo-American climatologists
endorsed the following contusions:
The favorable global climate of the last 50 years seems to be
changing, with a potentially serious effect on world agricultural
output. The expected deterioration includes lowered temperatures
in certain areas and redirection of rain-bearing winds in others. There
is a lack of consensus as to what areas o the world would be most
adversely affected.
None of the climatological forecasting techniques are advanced
enough to be applied operationally other than to forecast the general
direction of change over 5 to 10 years. Shorter term forecasts (one
to five years), in either direction or magnitude, are not currently
possible.
o Climatological forecasting based on correlation analysis of key
statistical series has the best chance for an early payoff, although
the dynamic mathematical models based on global patterns of air
circulation must ultimately be used to explain climatic change.
Past climatic charges of this kind have lasted from several decades to several
centuries. Since the United States has a more stable climate and yields than other
major agricultural countries, we may play an even more important role in supplying
future world food needs.
The adverse effects from climatic changes can be offset in time by (a) shifts
in the location and extent of sown acreage, (b) development of plant varieties
to match better the new weather patterns, and (c) increases in inputs of fertilizer,
cultivating machinery, and irrigation equipment.
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Soviets Sign with IBM for Kama Computers
According to the US Embassy in Moscow the USSR recently signed a contract
with IBM to provide a "complete computer system" for the Kama River Truck
Plant. Details are not available. IBM had been negotiating for more than two years
for the sale of a highly automated production and management system for Kama
valued at $60 million to $70 million. The package includes six large model 370
general purpose computers; 70 process control computers; extensive disc storage,
data transmission, and display equipment; software; and training.
Gulf 14 ithdraws from Sakhalin Project
25X1
Gulf Oil informed Japanese firms last Friday that it is no longer interested
in participating in Sakhalin offshore oil exploration. A month ago the USSR and
Japan signed a memorandum on the project which provided for a maximum return
of $200 million on a $100 million investment and zero recoupment of costs if
oil was not found. Japan has already arranged for the $100 million in credits and
at this stage the success of the project is keyed more to the availability of US
technology than capital. Although Gulf considers the profit arrangements
insufficient in view of the risks, it is willing to provide technical assistance on
a contract basis. Japan probably acceded to the terms becaus.; of its intense interest
in securing additional sources of crude oil. 25X1
Canton Fair: More US Firms, Less Business
The -- ently concluded spring Canton Fair was a disappointment to US
businessmen. In spite of attendance by a record 175 US firms, US purchases were
only about $15 million, compared with the $25 million level at the 1973 fall
fair. US sales were also off from the $15 million total of last fall. Only 10% of
the US firms invited were exporters and few of these were major US manufacturers.
Because of the lackluster fair, US imports from China in 1974 may not reach
the earlier expected level of $100 million. Shortage of Chinese manufactures and
raw materials available for export was a major cause of the low volume of
transactions.
Indonesia Gets Large-Scale Aid
Indonesia was recently assured of continued large-scale foreign assistance. Nine
of the 13 members of the IGGI (Inter-Government Group on Indonesia),* the
IBRD, and the ADB have together pledged roughly $770 million in spite of the
* The members of IGGI, who provide bilateral assistance, are: Australia, Austria, Belgium. Canada, France,
Germany, Italy, Japan, the Netherlands, New Zealand, Switzerland, the United Kingdom, avd the united
States.
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improved economic picture brought by increased oil revenues. Unsure of the validity
of Indonesian aid requests, Japan has yet to pledge. If Japan should provide its
usual one-third of the bilateral portion, total aid could reach a record high of
$910 million, exceeding the $850 million request.
Dollar Decline May Be Over
Press reports of a central bank agreement to halt the dollar's decline helped
push the dollar up sharply last week. The psychological impact of the reported
agreement, given cadence by token West German dollar purchases, convinced the
market that authorities would force its exchange rate up. High US interest rates
are also contributing to its strength. The dollar's extended decline -- which dates
back to mid-January - may finally be over.
The Middle East: An Arms Race
(CIA ER IM 74-6, May 1974
The Middle East constitutes the most lucrative arms market in the less
developed world. Arms purchases by Middle Eastern countries jumped from an
annual average of $1.1 billion during 1967-69 to almost $5 billion in 1973 and
appear to be headed still higher during the next few years.
9
Secret
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GNP'
Constant Market Prices
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
RETAIL SALES"
Current Prices
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
United States
Japan
West Germany
France
United Kingdom
Canada
Euro?Dollars
PercentChanga
Latest from Previous
Quarter Quarter 1970
741
73 IV
73 IV
73 III
73 IV
73 1
73 IV
Percent Change
Latest from Previous
Manth Month 1970
Apr 74
Mar. 74
Jon 74
Feb 74
Mar74
Mar 74
Fob 74
-1.0
1.4
-t1,1
0.9
-0.4
0.8
2.8
0.4
-0.7
-0.6
-0.8
2.0
-2.1
1.2
INTERNAL ECONOMIC INDICATORS
3,9
8.3
3.1
5.0
3.1
3.1
0.1
4.6
7.8
3.2
0.8
1.7
3.9
8.7
Percent Change
Latest from Previous
Month Month 1970
Apr 74 1.4 10.6
Nov 73 3.4 14.0
Dec 73 0.5 7.8
Jan 74 -2.7 7.0
Jon 74 -1.3 11.5
Oct 73 0.6 18.2
Feb 74 3.4 12.0
Representative Rates
Prime finance paper
Call money
Interbank loans (3 Months)
Call money
Local authority deposits
Finance paper
Three-month deposits
Average Annual
Growth Hale Since
I Year Previous
Earlier Quarter
0.2 -0.3 United States
7..0 5.8 Japan
3,4 - 0.3 West Germany
0.1 3.8 France
3.9 -1.4 United Kingdom
5.2 3:4 Italy
7.2 11.6 Canada
Average Annual
Growth Rate Since
1 Year
Earlier
0.7
5,7
0.0
5.0
-4.0
13.3
4.6
Average Annual
Growth Rate Since
1 Year
Earlier
3,3
27.4
5.8
16.3
13.1
29.1
14.0
3 Months
Earlier"
-6.2
-8.5
-4.3
1.1
-21.1
-2.8
8.7
3 Months
Earlier"
10.8
32.0
7.6
29.2
16.9
58.7
18.8
Latest Date
3 May 8.50
15 Mar 12.50
29 Mar 11.38
26 Apr 11.75
2d Apr 13.03
12 Apr 10.00
29 Mar 10.00
1 Year
Earlier
6.75
5.50
NA.
7.62
7.28
5.75
8.63
WHOLESALE PRICES
Industrial
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
3 Months
Earlier
7.88
12.00
13.00
15.00
15.81
8.88
10.13
Percent Change
Latest from Previous
Month Month
Apr 74
Apr 74
Feb 74
Mar 74
Apr 74
Nov 73
Feb 74
2.4
0.7
2.3
4.0
3.3
1.3
1.5
Percent Change
Laic 11 from Previous
Month Month
Mar 74
Mar 74
Mar 74
Mar 74
Mar 74
Mar 74
Apr 74
Percent Changi
Latest from Previous
Month Month
Apr 74
Jan 74
Jan 74
Jan 74
Apr74
Oct 73
Mar 74
1970
8.0
11.2
8.6
12.8
10.7
8.0
9.7
1970
5.8
10.9
6.2
7.5
9.0
9.0
0.0
1970
8.8
17.6
8.9
13.2
9.3
20.7
12.9
Average Annual
Growth Rate Since
I Year
Earlier
20.8
35.0
11.9
33.4
23.9
21.2
19.8
Average Annual
Growth Rate Since
1 Year
Earliar
10.3
24.0
7.2
12.2
13.0
16.0
9.tr
Average Annual
Growth Rate Since
ar
Earlier
"I
6.7
18.3
0.6
12.3
3.0
23.0
11.6
1 Month
Earlier
8.50
12.00
10.38
11.88 'Seasonally adjusted.
16.00 -Averapa for lutist 3 months compared
8.38 with evenpe for previous 3 months.
8.88
3 Months
Earlier
30.2
22.9
20.5
72.7
45.2
17.0
27.0
3 Months
Earlier
14.0
39.4
7.7
18.0
19.8
28.8
11.4
3 Months
Earlier "
7.8
11.1
9.8
18.7
1.0
21.4
15.4
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EXTERNAL ECONOMIC INDICATORS
EXPORTS"
EXPORT PRICES
f.o.b.
us 1)
Million US $ Percent
Million US S 1974 1973 Change
United States
Mor74
7,074
22,304
15,421
46.2
United States
Japan
Apr 74
4,207
15,293
10,941
39.8
.1011011
West Germany
Mar 74
0,801
20,342
14,022
45.1
West Germany
Franco
Mar74
3,064
10,541
7,001
33.0
Franco
United Kingdom
Apr 74
3,112
10,814
8,001
22.0
United Kingdom
Italy
Feb 74
2,095
4,001
3,003
32.0
Italy
Canada
Feb 74
2,458
4,002
3,041
24.4
Canada
IMPORTS"
EXPORT PRICES
f.o.b.
United States
Japan
West Germany
Franco
United Kingdom
Italy
Canada
TRPM BALANCE"
f.o.b./i.o.b.
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
National Currency
Million US S Percent
Million US S 1974 1973 Change
Mor74 7,846 21,705 10,254 33.5
Apr 74 4,076 10,034 8,785 89.3
Mar 74 4,934 14;297 11,197 27.7
Mor74 3,945 11,221 7,613 47.4
Apr 74 M,086 14,055 9,790 49.0
Feb 74 2,847 5,017 3,298 52.1
Feb 74 2,507 4,733 3,637 1 30.1
Million US $ 1974
Mar74 -171 089
Apr 74 -409 -1,342
Mar 74 1,867 6,045
Mor74 -282 -680
Apr 74 -954 -3,841
Feb 74 -752 -957
Feb 74 -49 189
1973
-833
2,150
2,825
278
-995
-235
304
BASIC BALANCE""
Current and lung-Term-Capital Transactions
Latest Period
United States*
Japan
West Germany
France
United Kingdom
Italy
Canada
73 IV
Apr 74
Mar 74
73 IV
73 IV
72 IV
73 IV
United States
Japan
West Germany
Franco
United Kingdom
Italy
Canada
IMPORT PRICES
National Currency
Average Annual
Growth note since
Percent Changd-'"--
Latual Irum I'rI)vinus I Year 3 Months
Month Month IU7)1 Earlier Earlier
Fob 14
3.6
11.0
27.0
30.3
Nov 73
-0.8
13.2
27.4
11.0
Feb 74
7.1
12.5
23.9
5.0
Der 73
-1.7
13.4
27.4
-11.1
De; 73
0.1
8.7
17.4
12.0
Ott 73
2.1
11.0
23.7
29.1
Jon 74
4.0
11.3
31.5
03.2
Percent Change
Latest Iron Previous
Month Month
Fob 74
Nov 73
Feb 74
Dec 73
Dec 73
Oct 73
Jan 74
Percent Change
Latest tram Previous
Month Month
Change
1,522 United States
-3,498 Japan
3,220 West Germany
-958 France
-2,840 United Kingdom
-722 Italy
-135 Canada
Million US S 1973
1 200 l 1,18"
-9,702
3,950
-2,391
-3,164
NA.
376
-1,005
1,176
-352
-1,394
800
27
United States
Japan
West Germany
France
United Kingdom
Italy
11 Canada
End of Billion US $ Jun 1970
Me:74 14.6 16.3
Apr 74 12.7 4.1
Mor74 32.9 8.8
Mar 74 8.1 4.4
Apr /4 7.0 2.8
Mar74 8.7 4.7
Apr 74 6.2 4.3
1972 Change
-9,838 111,024 Japan(Yenl
2,13.7
4,568
-369
-1,989
2,983
1,155
1 Year
Earlier
14.0
16.8
32.3
11.2
6.1
6.3
8.1
221 Sanitized Copy Approved for Release 2011/09/20: CIA-RDP85T00875R001500150023-1
Dec 66
-18.35
18.36
35.22
-23.76
-34.64
-25.18
8.83
18 Doc
1971
-8.89
4.53
17.97
-10.13
-20.38
-23.78
2.24
19 Mar
1973
-2.22
-7.42
12.90
-12.58
-5.95
-16.86
3.88
10 May
1974
0.41
0.24
-0.37
0.02
-0.31
-1.01
0.01
..Converted Into US dollars at curtent market retell of exchange. countries to reflect the competitive impact of eochenge?rat..variations
-11,839
-618
-2,022
-1,175
NA.
-779
Feb 74
Nov 73
Feb 74
Dec 73
Dec 73
Oct 73
Jan 7 ;
5.4
3.7
3.5
9.0
4,5
7,4
2.3
EXCHANGE RATES Spot Rate
As of 17 May 74
r(Da Mark)
West West Gescile
Mark)
France (Franc) (Pound
United Kingdom Staring)
Italy (Lira)
Canada (Dollar)
US $
Per Unit
0.0036
0.4090
0.2051
2.4105
0.0018
1.0381
Dec 66
30.59
62.69
1.58
-13.62
-1.50
12.54
Average Annual
Growth Hate Since
1970
11.0
4.4
3.0
7.3
9.8
8.3
9.6
I Year
Earll?,
27.6
14.9
11,7
15.0
18.8
20,4
30.5
3 Months
Earlier
38,3
34.1
29.5
22.3
33.0
17.0
56.7
Average Annual
Growth Hate Since
1970
15.6
4.0
5.9
8.0
18.3
14.0
6.8
I Year
Earlier
40.0
19.8
22.7
16.4
42.6
38.7
17.3
3 Months
Earlier
71.4
31.0
75.7
37.3
50.6
30.8
25.7
18 Doc
1971
10.96
31.81
4.16
-7,49
-8,31
4.04
19 Mar
1973
-5,28
15.50
-6.94
-2,05
-10.90
4.05
10 May
1974
0.03
-0.99
-0.77
-0.82
-1.62
-0.14
TRADE-WEIGHTED EXCHANGE RATES"
As of 11 May 74 Percent C"dqo train
3 Months
Earlier
14.4 United States
11.6 Japan
33.1 West Germany
8.5 France
6.2 United Kingdom
8.4 Italy
5.9 Canada