SURVEY OF INFORMATION ON USSR FOREIGN TRADE AND FINANCE IN 1950 WITH EVALUATION OF FACILITIES AND SOURCES AND RECOMMENDATIONS.

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00662R000300060002-4
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 119
• Document Creation Date: November 9, 2016
• Document Release Date: July 9, 1998
• Sequence Number: 2
• Publication Date: January 1, 1950
• Content Type: REPORT

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- TION
1950
SYALUATXON FAC
AND
CONSHDAT401113 ?
I.)
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ocuinicuu - mpprovvu rt.n melecipe . E." vvv. 2R000300060002-4
ND
IN
UAT
tiT
"ub
TA
ct
I.
-- Foreign Tr
Importance at Into rwtiion on ove
Foreign Trade to U.3. Intelligence
2
A. General Importance
2
B. Lmportance in Specific Areas
4
II.
ummary of information an 1950 Trade
.
5
General
5
B. Trade 4th the Orbit
5
1. General
5
2. Albania
6
3. Bulipria
10
4. Csochoslovakia
12
5. Hungary
17
6. Poland
18
7. Rumania .
20
m
8. East Gerany
22
9. .3oviet one of
28
10. China
30
L. Trade With the Non-Orb Avid
34
1. Centime'
34
Principal Commodities
34
Principal Countries
35
as The Sterling Area
35
b. US
36
c. Italy *MOO
37
d. Sweden
37
o. Finland
37
f. Baamm
38
g. Iran
39
h. Afghanistan
40
UI.
Evaluation of Facilities and
42
L. Internal Facilities; Collection & DiSDernination
...
42
1. Library
42
2. 30 .
43
3.00
43
4. :MD
44
. External Fax and Information Collect
....
44
1. **stern Countries
44
2. Other Nu-Orbit Countries
45
3. Soviet Orbit
45
SC11111.1LCU MIJIJI1JVCU I LJI IN I Cl . C,Ir-rL,r I ?Jn.M1
%. L
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Table of Centents -- 2.
Pa
IV. Reccomendations
A. Internal
1. Library
2. Document Distribution
3. so
4. 00
48
48
48
49
49
49
5. FDD
50
B. EXternal
50
1. Western Countries
50
2. ?them Non-Orbit Countries
51
3. Satellites
51
Part II - Finance.
I. Evaluation of Information and Sources . .
52
et. General Government Fiscal Policy' .......
52
B. Monetary, Banking, Investment and
Credit Policies . .
52
C. Budget and Budget Analysis
54
D.? Gross National Eroduet mod lutional Income ....
54
II. Sample Test Nith OCD Vachine Run in Testing
Adequacy and Availability on National Income
And Related Financial -Subjects of the'DNSI
57
III. Yat We Know On Soviet Finance .
64
Sample Project -- The Soviet State Budget
64
Summary
64
A. Importnee of Information an Soviet State
Budget to National Intelligence
64
2. Methods of Finance Planning
65
C. Planning Agencies
65
D. Manning for the Fiscal Year
66
E. Control of Fulfiilment? of the Budget P1 .
67
F. Soviet Unitary Expenditures for 1950
68
IV. The Areswer Ignorance in
The Field of the Soviet Budget
68
V. Comparison of 1941 and 1950 Statistics
On Soviet Budgets.
70
VT. llat We Could Find Out Through
?
Further Study of the Soviet Orbit Finance
74
Fart III
1. General Survey of Research 5 ources and
Facilities for Soviet Orbit Trade and Finance
75
!, ,Iltallability of Information on and
Circumvention of Export Controls
75
B. Av13nbility of Information an
Transshipments of Strategic 14Literia1.1
77
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Table of Contents --
C. Methods and Limitations in the
3,3,udy or Trade of Hungary and Peland 86
D. FDD Facilities and Potential .. .. 95
.-N7,d1abi1ity of Trade jtatistics
the Department of Commeroe(Pttentiala). 99
F. Availability of State Department
Information on East-West Trade 103
C. Librarir Facilities for Research
Related to Albania, Bulgaria, Rumania 104
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INTRWMTICti
1. The military strength ot any nation depends upon
its economic strength.
2. The ecalomic strength of any nation depends upon
the availability, and efficiency in utilization, of national
international
and isseseemilserod resources, and human mental and manual skills
for the accomplishment of desired ends.
3. Trade and finance are primary tools in the direc-
tion and mobilization of human and natural resources for the pro-
duction and distribution of economic 'wealth, both nationally
and internationally.
4. Ultimate imerican security depends upon a peace-
ful world situation.
5. WOrld peace or war depends upon the conditions and
character of ccmmercial and financial agreements as well as the
decisions reached and the policies pursued by the major nations.
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ART I.
rat
jaRcirtanos at liforsoitpoi on80
To U.S. ;,44.1Liasoco.
A la L..1 eel e 2 .1 I
raids% Trade
Knowledge of the foreign trade of any country is
essential in order to evaluate the condition and direction
of its domestic sconce", its international economic position
and policies, its diplomatic as well as its economic per-
poees, ani the extent of its preparedness for war. This is
particularly true of the USSR, or of any Commenist dictatorship,
in which economic programs are designed to serve ideological
and political porpoess, and in which the well-being of indi-
viduals and groups are sacrificed to those ends.
In an scow!, of private enterprise, foreign
trade develops in response to public demands and opportu-
nities for private profit. In the USSR and its
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Communist satellites, hvor, foreign trade is as rigidly controlled as
&Ay phase of the domestic *canopy, and forms an integral part of commie
planning. The facts of Soviet foreign trade are, therefore, an accurate
reflection of its economy, its development and directioos its weakness*. and
strength. Without such informatioa, it is impossible to Oringe the euffili,
eonsumption, or probable use of any sommedity. It is impossible to judge the
sucesse of the various Soviet five-year plans, the relative emphasis plaosid
won various phases of the industrialisation program, and the major shortages
which must be overcome for fulfillment of the Olen.
Foreign trade is also a reflection of the international plan. and
policies of oor country. The details of that trade its volume, value,
quality and direction are as vital to the aseliment of economic purposes
as diplomatic statements and moves are to the evaluation of international
political aims. In fact, the actual statistics of foreign trade may speak
louder than the voles of diplemasy in revealing national motives and planet
Again this is espesially true of the Commumist state. Under a system of free
enterprise, foreign trade may develop saunter to national long.tora seemrity
and diplomatic policy. On the other hand, Soviet international economic
relations and foreign trade are as closely ("patrolled by the IJSR as Soviet
diplomatic policy. . Without the facts of Soviet foreign trade, no aceurate
assessment of soviet success or failure in the international economic field
is possible.
Finally, the details or any country's foreign trade reflect basic economic
alma They are essential to any estimate of the nature and tempo of suck
aims, which are refloated in the type of imports and experts, the degree of
artificial barriers to international maned* intereourse? the probable
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extent of stockpiling, and the probable time before preparations for
launching a war would be complete. They are essential to any estimate of
joviet c4pabilitic:4 and vulnerabilities in the event of war.
B. Importance in Specific Areas
1. Soviet OTbit. Facts concerning *Jot trade with its satellites
are essential in order to assess:
a. The extent of Soviet exploitation of the satellites.
b. The degree of economic integration within the Orbit.
c. Economic strength ana weaknesses of the Orbit.
1. Ability of Orbit countries to moot each other's economic mods,
2. The degree of economic self-sufficiency of the Orbit countries.
2. 4onpiOra;t:Wwld? Facts concerning Soviet trade with the outside
world are vital in assessing:
a. shortages; limit of self-sufficiency.
b. Priorities in imports; unusual demands for certain ccomodities.
e. Degree of emcees in obtaining critical items, and the offset
on (2) industry and the economy, and (2) domestic and international
d. Measure of mood and of determination to obtain certain commodities
for the fulfillment of aims, as shwas by (1) pricea paid as well
as quantilw and guilty of commodity, and (2) devious methods
employed to evade "stern export control..
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II. Suaeary et inforpation on 1950 Trede
?
A. General
Soviet foreign trade in 1950 amounted to an estimated 42,326 million
an increase of 14.4% over the 1949 estimate of 42035 millions. Imports are
estimated to have risen 11.1%, from 61,140 millions to 1,270 millions and
exports 18.2%, from 095 millions to $1,056 millions.
1950 trade revealed an acceleration of trends which first Weans
evident in 1948. 'The outstnding features are:
1. The increasing absorption of USSR trade by the Soviet Orbit
and the curtailment of trade with the West to a necessary minimum. The
increasinE integration or the Soviet.eatellite economies is eaphasised by the
fact that soviet.satellite trade increased an estinat0134%ever 1949, while
trade with the non.Orbit world declined by 26%.
2. The acceleration of Soviet and satellite industrialisation.
3. Accelerated purchases of raw materials necessary to the
industrialisation program which are not available in the Soviet Orbit
4. Increasing emphasis on both the industrial equipment and the
raw materials necessary for war production.
B.Zra0m Alitthe Orbit
1. goals&
Soviet trade with the ..astern uxopsan satellites and China is
..atlamtwd at $1.8 billion dollars, as compared with 41.4 billion in 1949. It
is estimated that imports rose from 4771 million to 41,024 millions and
exports from 4596 million to 4611 million. Thus the WM received an es.
tinated 61.4% of its imports from the Eastern Suropean satellites and China
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ia 19504 as emesmiod wttb 644 in 2949. tuporto to %Imo omeutries row& frau
au estimated 67.0 of total exports in 1949 to 76.7% in 1950. The artinated
value of trade by eountries for the two years is shown in the following tables
=awl
ESTIMATED TRADE OF USER WITh Z SATELLITES AND 1949 and 19,0e
fill Virg* ar PI
isigarie
MIMI
7
4
&MU
49da
Coseboalovai
205
195
Vapor/
50
56
Mead
115
2.45
lhamaula
S5
75
lest Osrusor
1s5
e2
Chisayom
#
3.4
12511
59
195
67
190
8)
127
41 Commercial tratle only. Reparations do/traria@ from the satellites ti
the UNTR me estimated to have amounted to $1,213 .V.Iiims in 1950 mni
44412 atilisme in 1949
2? and&
amitAmmical
11 Dee 49 TAW soneteised the erri
Albanian trade delegation to conclude an *moment AM 1950
However, no annoonoment was made either in Tirana or %sew ma the
revolts of the negotiations, and no agreement appears to has.
beam signed between the two countries. The return of the del*.
Ration in Feb 50 wee tarediatsly followed b7 purges of communist
loaders in the Ministries of Industry, Public ',efts 40 comimmUm.
estIone? tom after theme purges, greater quantities of suppling
free the USSR and its satellites reseed Albanian ports, and
Rime this tuerossod amounts of geode hse been sent. (OIR
DRE Into Peeper 92, 11 Lee 50 eoretPostwar Treaties am4
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Agreements between Albania' and
4the Soviet Orbit.)
b.$ovigt Import*
A source of dubious reliability r (Jen 50) that:
1) The 5 Albanian Orem, nines (with a total production
in 1949 of 77,000 tons) exported 7,100 tons to the SU in Jam.
ary 50. (9,700 tons in previous Quarter).
2) SixtY per cent of the output of the R
reportedly goes to the UtI3R. Exports in ore from Pubic in
JaaugrY 50 amounted to 2,700 tons. (5,000 tons in previous
quarter.)
3) Soviets took 65% of Alban.tan production of ferro-
manganese, bauxite and chrome for Jan 50, as well aa 50% of
the output of pyrites and bitumihous products, while 69%
of Albanian tobacco factory ouput was exported to the USSR is
Jan 50. In addition Saviot advisers are reportedly asking
for tho allocation of 600 million lek 12 million) to deep
boring in 1950, in the exploitation of the oil industry.
25X1A2g
4) Soviet investments for 1950 eliy include 165.2
million lek (07.3 million) in mines, manufacturinp industries,
transport and agriculture, of which 800 million lek ($16 million)
is in mines.
5) Sovt authorities are highly interestad in Albanian
forests. In 1949, 413,000 meters of tinber out of the total
out of 1,500,000 meters, or 27.5% were exported to the USSR.
The Timber Department of the anistry of A ioulture is to be
put under a Soviet Inspector General, and it has reportedly
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been decided to Increase the timber out to 3000,000 25X1A2g
meters a year (an increase of 133% ewer 2949).
25X1A2g
25X1A2g
In addition to the petroleum aission, informant otates
that four other Soviet Aissions are in Albania, concerned with
development of mineral deposits; construction of a textile
factory, a sugar refinery and a leather manufacturing plant.
c. ;1019t,LxiRortpa
Premier Hectha announced in Miust i9I9 That th14-SR would
furnish equipment for the textile conbtne in Tirana the sugar
factory &i aliq, two wood 8ocLSoninf estub1ithente and other
wood and tobacco factories in .1949 and 1950 on credit. In
addition, it would furnish various kinds of machlnery, inatrate.
umate, pipes, rails, etc. 25X1A2g
Tirana Pedio announced. 27 May 50 that the following goods bad
arrived from the USSR: motor vehicles and spare parts, Um,
equipment for the oil industry, material and tools for repair
shops tractor-driven plows, rolled metal, concrete, iron,
topper and tin pipes, pharmaceuticals and ledicinee, sugar and
tea. (FBID, 7 June 50-c.)
Albanian. press in Kfty roted aia1 from the UR of
Wheat, geode, saplings, rubber articles, dyes and acids, blam.
kets, railroad oars and tracks, autos und other vehicles,
iheet metal, various steel uroduets, pipes for the patrols=
? industry, electric motors and olcctrical inotruments construe..
tiebissahin, drilling 11101pment spare parte, (In addition
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to item ineluded in the MB report abeve),
Manisa press 12 Jn]1 Or
USSR in the latter pert of Awe
tires steel product., CI7 motor
petroleum industry, etc., geological equipment
Instruments, eta.
Shipments of Soviet arms
being made in Soviet vessels. These arms, man
the Kharkov area, are loaded for shipment to Albania at
Imports frau the
batrieiting oils
equipment ter the
pireeielse
and Nikolayev.
25X1A2g
25X1A2g
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a. Trod? Arepeles#
The Soviet-Bulgarian trade agreement for 1950, signod in Vicscow
18 February 1950, called for an increape in trade of over 20 es compared
with 1949. Soviet exports were to consist of cotton, metals oil products
industrial cquipnento agricultural machinery, etc. (According to the *Quetta
de Lausanne" of 23 June 50, as reported by Bern 810 of that date, the Soviets
also agreed to deliver 160,000 tons of wheat. Soviet iMpOrtil Were announced
as lead ar4 zinc concentrates, tobacco and cement. (Tess broadcast, 21 Feb
50; Moscow cki6, 21 Feb 50, lain).
The announcod agreement sLiLtr to that of 1949, exe4t t t the 194
increase specifically excluded the value of egelpment supplied to Bulgaria on
The 1950 agreement failed to mention any doviet deliveries on credit.
credit./ (Moscow 616, 21 Feb 50, Lea.
b SOViit 1112200$
Since late 1949, th U1 i sald to have controlled not only
Bulgarian rta and exports but their prices.
25X1X4
A member of the Bulgarian Legation in l'aris was
early in 1950 that Bulgaria was under strict orders not to sell any of its
products to the lest except after Soviet clearance. The greater pert of
aulgariats Lobacco is taken over bi Lae Joviets under barter arrangements
extremely unfavorable to Bulgaria. The 11.?JL then sella Bulgarian tobacco to
the United Jtates? Italy, and elsewhere for dollars pooketln& Saw prow..
25X1A2g
proximately .2/. pi' Bulgarian tobacco production placed at the disposal
tue 1..L, The Uj5h then cuts Bulgaria froa at.rketo for the remaining
tobacco (14 rose oil) by undersellinE them in the world market.
25X1X4
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25X1C8b
A Bulgarian refugee who entered Turkey 21 Oct 50 reports ?
wateninc tae loadinz of uranium ore in 22,-kgm. sacks aboard. Soviet ships in
June 50 at Varna. He adds that Burgas is the principal part for such ship-
ments, dLL. that they are currently beiw-, unloaded at Odessa.
25X1A2g
c. Soviet L'xnerts
Shiptents of electrical equipment, tractors, combines, har..
venters, trucks, etc., were reported periodically by the lgrian press and
radio as having arrived from the Uii. 3800 tons of machinery reportedly
arrivod at the Jtalin Fertiliser i/ant during one month in late 1950.
,coordini. to a broadcast of 2 'Aag 504 iiilorts of natural rubber in 1950 from
the USIt were 667% of the amount received in 1945 while the increase for
synthetic rubber sae 367%.
Since the Koruan conflict began, 3 or 4 boviet ships have been
reported unload g arms weekly at Varna. Heavy tanks, guns, shells and
f.pare parts are said to have been included.
eouree - fairly- reliable, frau a rian refugee who entered Turkey 21 Oct 50),
Durire ,uguat 1950, oviot vessels reportedly discharged 240
tanks, 6...0 vsnicle, 180 heavy trucks anc an unknown number of artillery i..;uns
at 3urgas. 4coording to reports circulated Jsillcing the local population, 12
boviet vessels wilich docked at Varrn and I?lureas since early September were
originally scheduled to load food for the U...;SR; but plans were changed
25X1A2g
/1
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since the food to bc used instead for newly arrived ,oviet troops in
Bulgaria
ive r44i.ort
Lame shipments of medical supplies arriving from the 1!,:in
oeei: stored in the vicinity of ofia. (Jt. ka. 10-
25X1A2g
..;omeet-,trust, Trieste; ).E Aug 50-6.)
4...;soii,igigmq.cmakka
a. Trade am:Himont
The 1950 Ooviet-sech trade aLreement, signed 22 Feb 50,
called for the exchenze of a wide range of commodities with a "significant"
inemase in the 16;ve1 of trate originally envisaged for 1950 in the 5-.year
agrement sic:fled in 1947. The Uk would import from Czechoslovakia pipes,
rOalls, cable, l000motiveul power equipment, steel products, machinery, sugar
footwear, textiles, etc. In return it would supply 460,000 tons of ahoato
100,000 to:; of corn, 150,000 tons of barley, and 15,W tons of other fodder,
in addition to butter, meat, rice, tea dud other foods; alz-io 4300,000 tons
of iron ore, lw.nganose and ferroalloys, nonferrous mtAals inc1udi4c copper,
lead, aluminurt, eine, etc,, petroleum products, industrial equipment
(Inc1e4Lin roller bearings), cotton, wool, chemical raw materials, industrial
timber, etc, 6chedu1ed iron ore deliveries exceeded thf; eotimted volume
-pt,lier: in 1949 by 200,000 tons. The amount of wheat scheduled aas believed
to oe in e.-i:cess Or ,;seon demands to the extent o soue 150000 tons. The
agreewent ,rt:0 oxtAtoteU LO account for mom than 25% of total Usech foreien
tra, in 1950. (Moscow 671, 25 'i,:cc.;c01; ieek4 9, 3 2ar 93 3;
'Arah4 277, 4, i'Vxs 50 - h; wio r rana 24 Fat; 50 -
A special paragraoh in tae tr3Je Retlent provide5 .or the
Zoviet rur-chaso 41moet tile entire Jseen production of seamless high compression
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resisting Minnesota pipes, to to used in the onestrustion of nee
and ell
conduits: in the BSSR, Production ouput is to be increased by 150%. (USFA
Spec. Bi-Wkly Rpt. 112, 3 Mer 50-5.)
A long-term agreement, covering 1951-55, was conclded early in
November 1950. It was announced that the average annual volume of goods to
be exchanged would exceed the 190-50 average by more than 50%. The USSR ie
committed to deliver rharplyinsreemad supplies of a wide range of maahinery,
equipment and raw materials. As compared with 194:6,60, the folloiding increases
sere announced: iron ore - 250%.(an estimated 2.5 - 3 million tone); copper
400% (an estilated 12,000 tone); and aluminum - 3CC%.
In return, Czech deliveries are to be limited solely products
of the netal-morking industry. The communique announcing the agreement stated
that annual dell.veries to the USSR alone would exceed total foreign orders
placed w1tb the Czech metal-working industry in any previous year. US hebessir
Praha eormented that the Czech economy will be sorely pressed to expand =Mei
dently to bear the full burden of Soviet denands. It added that, in view of
labor shortages, particularly in the AirvIT:g and heavy industries, CzeChoslo.
vain would be forced to institute more stringent allocation of labor. (Praha
291.- 7 Nov 5(, - C.) It is believed that much of this emphasis on the Czech
amtal-worIcing ieThistre will be on armament production. The agreement stremphs00
evidence that Czeehoslavakia has been assigned the role of a major arsenal of
the Soviet Orbit.
b. psalgUmgda,
The extent of Soviet ecp1oit&tion of the 6
sated by the followings
1. The final and only beneficiary of all Ceeoh economic
ogresesets is the USSR. For example, the forced delivery by
Germ of 1,000 tens of scrap iron per ds y to CsodhoSiewatia is
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solo37 for the purpose of asonfactoriog goods for the USSR.
Prices paid CzeChoslovakia for export goods are without regard far 25X1X6
production nne rawmatenlal costs.
2. According to a confidential source believed reliable, Csodbo....
slovskia sold 100,000 tons of refined sugar to the USSR fral its
1948-49 crop, and is committed to sell 70,000 tons from the 1949-
1950 crop. The prices pale by the Soviets are based on f.o.b.
Cuban prices, wLich are considerably below those available in Furepean
markets. Luch of this sugar is resold by the Soviets in hard curren4 Euro-
pean Lres, competing with normal Crech markets and undercutting
C7cch prices. Moreover, the sugar from this year crop III sold
4n bars nsrhed 'Imp, exrort sugar." Other commodities are used
In the., name nanntr. (Praha 152 - 16 Feb 50 - S.)
3. All C7eeh textile produetion is going to the USSR, according
to a Czech Army officer (CT Memo - 27 Pee 50 - s.)
IMER 25X1A9a
4. A ern6h0?Soviet agrement of 7 May 50 not only granted
the r:SSR extraterritorial rirhts over all uranium mines in Cnseho-
slnwkin, but provided that sueh rigt;ta will be extended to any
Czech territory Where new uranium deposits are diocovered. 25X1 A2g
Acquired in Cermany froi, a reliable 07oeh
. refugee with contacts inride: Czechoslovakia.)
Evidences of the priority given war materiel in oviet-
CzeCh trade include the followings
a) A KCVO representative fron Czechoslovakia told the
!Cow distributor for Austrial early in May in Vienna, that the
Soviets had ordered Czech =perte to Astern nations to be
curtailed inaediately, and made only in exehange for high.APellt,
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25X1X6
raw materials suitable for armament purposes. (Mh Prague
P-5246 - 8 Jay 50 - S.)
b) The large %mid* car repair ahop s in the Prague
ama ',ere recently transformed. into munitions factories.
c) On June 5, 1950, the T7R. ordoreil from the Czech rub-
ber industry 600 pieces of rubber packinr an other peeking
material for ure in rubmarine construction, to b corpleted by
Y September. Perinning 30 June, monthly reports on production
progress were rr:021ircd.
d) On 3 March 50, the USSR or3cred 1,760 two-way reio
rets for irrtallation in Soviet T-34 tanks. These sets were for.
warded 25 June 5r for trons-shipm.cnt to the Stalingrad Tractor
Factory. kbort the sane tine, 2500 electric motors (5-7 hp) were
.river ed to the Soviet Commercial AttaChe for forvarding to the
Stlnrr1Trretor Factory,
25X1A2g
25X1A2g
e) The CzeCh '(44.rister to Palestine, in response to inquiry
from the Israeli Covernment conceroIng the rit db27C of arms is
sqid to hear replied that the Czedh Government hvd an iron-clad
contract providing for the shipment of all acer manufactured in
Czechoslovakia for the nomt 50 years.
Confirmation concerning a contract giving the WE
a monoply on Czech arms exports la lacking. However, it is knows
that Czech factories are being re-tooled to produce Soviet-typo
/5
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25X1X6
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adlitery equipments While it is not kamis bow tor the Program
has progressed, various factors indicate it is well...advanced.
Soviets are being appointed bees of CseCh arms industries,
evirlently to direct re-tooling for Soviet patterns. (Priem
Unnum., 9 Nor 50-5)
aularagixada
Cseeh Foreign Commerce Ninister Gregor is said to have stated
faIleming his return from 1950 trade negotiations in Moscow, that Soviet eqp-
plies for Cmschoelevekla woule, amount to at /east 3 million tons of goods.-
average- of 10,000 tons a day. Be added that, due to transportation diffiw
culties in direct rail communications with the USSR, supplies would be shipped 25X1A2g
over Polish railroads and over waterways.
Soviet exploitatioe of Cseeheelevlikia in the export as well as
the import field is evident from ouch reports as the follsedegm
1. The iron ors Uhl& the USSR sends to Ceedheslovakia Is of
isubegrade t??reporting letter from former Casa
Arey anew 27 Dee 504S)
2. Cseeh buyers of optima glass are fo
their orders vith Soviet companies, vith the
getting a very inferior prodWerts The entire predmetion of the
Optical Co. of Bratislava, Uhl& islands. binoculars end
prianatie glass used in artillery fire-eantrel instruments, is going
Into Soviet or satellite military Shansele
25X1A2g
Ureport that the USSR had a:speeded grain Shipments to Czetho..
alevabila in retaliation fSr Creek failure to meet 1950 mmehinerY
deliveries quotas uss carried in a despeteh datatineet nom by the
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11111 Ilan ea 26 alu 51.Isportoily? Csoshoulsmakia hot
amide& to Mini 1950 immeitinsets fir exports of machinsey
sod precision instrts to the West in order to obtain
orgintly noshed raw natoriols? and postponed sshodulod dolivarlos
to the USSR until 1951. !hip usSR did step up its dsmonds for befor
industrial equipment from Csimboalmeakial tulips in 1950, end shoal.
tmommerlyiulusod to filfill Comb requests for suffielset
moisrials to madatain its weli.dovelipsd light industry ospaoltp
It seems probable therefore. that Cassis dilivories of hoary machlwea
in 1990 failed to meet Samba dommado. Confirmation of tho report
that the MR seopeodod grain deliver/ea in retaltatlis is Isdking
Howsvor. the Thesolav Radio picked op the stem ACseih broodiest
indientiag that workers hod boas token down to railroad stations?
to sow the shipment& of Soviet graft would soon to *ply that
If Soviet groin shipments Imo mot temporarily sumPanded at least
the report hod boom onfficimortlyiddemprood to warrartriMfthstioo
end apparently, stops to cieetoroot.
5. MINK
04 ibMilLid01011110k
Thor Soviets sod Romgprions signed a ogromest I arch 1950
Proslelee for as over.oll insrosie of 200 over the 1949 agroommato as possib27
a total of sago swum Owen, 750 .Aokor50-0). ilesgerrein import ootton.
Iron ors, sok% metals, indastalal oquipment1 agricultural nashinosp wed pro.
duetag ten provide the USSR with industrial aquipmint, stoma locemo.
thee, freight oars, Urges, textiles. This relatively small Immo* of
20% ow 2949 triode an compered with 3040% tearooms for the other satellites
has besa commented woe as eviden? of possible diffiamItlos domerloping in
Sovist.Hongarion trade. Diffieultios may be duo to possible sirloins lebar and
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produotion difficulties as a remit of reaent restrictive measures,
shortages of akil/ed workers, and leen? shortives of food staples *sem
750 - A. NW. 50-0/ Buispest 34,1Wka /0 10 Mir 504 Mt Poispeet L2I/0 11 Hey
5G-3)
b. Siovivt lanortp
25X1A2g in 1950 the Soviets arranged to ship during
tune of bauxite throngl T4Esshert (A Sino-Sevlet entorprise) fcantles
The Soviet ?enmities In Th emanipmasting
s to shov losses or little profit for the
? The Soviets also improve their terms of trade
by demanding mersherdise of high quality
Hungarian tux
besides their dumping
claiming ccepertsation 'under fantastic pretexts of deviations from the high
stessierds. Until :une 1950 only eneuel merchandise s Chipped to the UStM
to cover the invisible transfer of profits nede in Hungary; nhereas, rosently,
exports have increased to the point thnt all USX-Whol textile mil/s are ship-
plug their entire output to the 'USSR,
C. it Jnrta
The SU exported to Hungary in ber 1950 ten trainloads of
munitions, including 10 carloads of el/inanition /7 open gondolas coutaiuing
bombs,
and 251 carloads of sasitime. 25X1A2g
MO
a.
itilitavininNut
The USSR and Poland 1 a trade ont 25 3i 1950
Prodding for a 30 ever.all luommuwtsieve 2949 *Ile eoporte of the J
mould be 50% greater. The agrommrt covers the following aoreieditiess Soviet
imparts--coia, ooke, rolled products, non-ferrous metals, textiles, transport
equipment. glase. per, sow, Soviet experts--tentile row materials (cotton
25X1A2g
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25X1A2g
25X1A6a
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sod Moil, dip
USW, lid raw matarialsmtLas
(rypertedar vie main supply of mtoryehittle4 farm madoinery and i laments
nonhIno tools TYamos scientific ana wassurinr combo ball bearings and
groins.
neat oeo of a
batmen the two
(Yon Com
Juno the bowie fivamyear trade agreem
destpAod to emend fartNsr trade
25X1A6a
taw 11.49)
A Soviet...Polish protocol, signed on 29 Jane
(2) an inarcifteecl oanbango of goods in 1952; (2) a longi-tern agreement rar
1953.-58; (3 Soviet exports of oepital $mvsetment *quirt:eat due
to lel:Artie/1y ooveree by n loan or 4m,ono monthly (fIrP1000,000)
(Moscow 11 - 2 aLly 5C - Pl.; arson, 3 Jer 50 C.) The agreement is
balance to inelcatz thc ieg nt.r*tStn ot Polieb proeustion to So
ocoacirdo punning!, 412-4 the inereasin7 -7.kortsnes land as a field for
Seals exploitation.
b. ..gatitidr.241aiddl
e ";oviet 1:nion rec(ivel
inns of roils in .iruery alone.
25X1A6a
Aecording
1950 increased over -LIKA of thtrorrelt7omUnr periae,
Ness , igest, flopt, ac)
It is emcee 1
ttontrorts
Impart., all of her rangansse Importe
70 rLrcrt5 A" rats. (IPTC 21 J11:42. 50.7
POLAKP, MAY 1^45, 195(i)., Up to kvtober 1dha&
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4
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meeceeese . (Istanbul D244, 20 Oct. 50 C.)
had shipped 200,000 tone of hi-grade iteat and 40
(Werimmylaca. 24, 16 June'50 - S.) 200 tractore,(FB
and 100 beet harvesting combines were received by
13 Oct. '50 .)
7. nummita
46 Trade Agreement
The USSR-Rumanian trade agreement, an
signed February 17, 1950, Provided Ar Soviet expor
25 Uion rubles worth
of petroleum equipment, 30 minion rubles of industrial equipment, 10 million
of electric motors 30 million rubles of agricultural machinery, 40 million
rubles/of unprocesee4, cottony 20 million rubles of medicine, 14 million
rubles of mineral ores, 12.5 million rubles of special steels, and large
quantities of industrial raw materials and supplies, (coal, ?eke, copper
sheets, bearings, typewriters, calculating machines, ste.)$ Soviet ice.
ports under the agreement are predominantly Petroleum products (1,800,000
tone), foodstuff* (approximate17 250?000 tom), processed cotton 36,000,000
rubles, and construction materials (over 200,000 tons, plus 20 million rubles
of construction luaber). The total exchange of Goode is of a total value
of 700 ninlon rubles, or 30 percent over the 2949 yaw).
ci Moscow 621, 22 Feb. 150 P1k1 Budepeet 137, 10 tol
1950
Recent $
=WWI annom-ferrous metals, insurance, chemicals, coil 01. de la
Marine Marchande, 10 Nov. '49.) On 21 February 1950 protocols were signed
providing for further development of joint...stook companies. (Bucharest
weekei-8, 25 February '50, Secret.)
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rubles
25X1A6a
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tons were teported via pipeline in the
under the Peace Treaty term):
acity of the reports that 15,000 tons
of May along
84,000
OCO tons
The ver-
iz shi Zron
Constant a to the U R by Sea and that, therefore Rumania mui
additional oil products abroad is &bioua J daily Import o
is apparently greater than the total output of Rumanian oilfields
acquire
; ction of petrolmm appeare to
soviet bands a
tons
25X1A6a Atrik The Soviet also
obtain much meat, fish, butter and Cheese from Rumania, upwards of 40 or
50 retriterator cart weekly.
25X1A2g
ng jams*. 25X1A2g
May 1950, the Reeanian Government contracted aend e,00 tons of tobacco
and 465,000 tone of cement to the USSR but tent 679 tons of tobacco and
134,000 tons of cement. During the same period, the Soviets received
300 tons of lead with antimony content, 1,000 tons of cotton thread
(4,505,000 rubles); and under the terms of the Peace Treaty they re-
ceived 55,7o5 tans of cement 25X1A2g
c. #ctist, ExPorte
At the end of 1949 Soyict deliveries represented the
of Rumania's consumption$
coke 57% Dal 3erings 47%
31% Rae Cotton 92.%
81,1 to Rubber100%
25X1X7
The following fi
r,
ateirioatione
of 1950 were
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25X1A2g
25X1A2g
25X1X7
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compiled from various souroess
Trneportation equipment and
Pstrammtuumbincry
Ustals
Chemicals
Machinery, all other
(Sources: uSfA (Naval), Vienna, Austria, 9
Rumanian ) 400,4-91900 27 March 150, Conf.
In late July or early A
100 tanks arrived from the SU for the wian sr
4 August '50)
8. East germanY
a. Trade Atrienew$*
Soviet-CDR trade in 1950 was planned
1949, and to absorb over half of foreign trade
TheSoviet-00DR trade reeLe
nosoom? called for an increase in trade of
Soviet exports mould include grains otos,
Apatite concentrates and ores, automobile trucks,
products, coke, station, and moclo The UWE would
meet and machines, cement, potassium milt, ebeimicals, coal briquettes,
upsseda and precision engineering goods. patlith, glessmArs, etc. Soviet
exports mould consist 15% of finished goods, 85% of ram, materials mhile
its imports would consist of 85% finished goods and 1.5% raw materials
(Bosom 1128, 14 Apr. 150 j Berlin radio amount of Orotomebl report
on 20 Apr. '50, ?BIS, 21 Apr. '50 Res.)
674 tons
620 toms
tons
VS
:50
0,
25X1A6a
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25X1 X4
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Detailed figures concerning Soviet
are given in
..,,le latter litt is arently
former in SOUk reapecte, Th
of tho ipportant items, shich
aMbstattlal anent, houeva,
llamas case of alight
agreement, the figure from the seconkillis given later in parenthesis
Crude Xi 200,000 T (210,000); Rolling nill products - 140,400 T.
(164500); Asbestos 1,330 T. (1,200); Copper - 4,000 T*I
Lead 2,500 Ts; Zinc 5,400 Ts; Tin - 200 T.; Alustmma .1,500 T.;
Antimony 285 T.; Brows 1,700 T.; Nickel - 400 T.1 Mercury - 250 T.;
Cadmium 30 T.; Navigational IquiPment and Ships' Diesel Engines
M50,000 Rubles ($940,000); Natural Rubber - 1,000 T.; Kepthalin
41500 T.; Co1o0aors, 500 T.; Cotton - 23,700 T.; Wool -.44000 T.
Electric Equipment for Locemotivse - 13,500,000 Rubles, (33,375,000)1
Tale 1,500 T.I Pyroluoito 1,500 T.
25X1A2g also lists 500,000 tone of grains, including 220,000 tons of
sheet, 160,000 tons of barley and U$,000 tons of oats, and 21,000 tone of
animel and vegetable fats
Aro' W-717627 (11 utp. 50 &) ve. the save quots
lead, antimony, tin and eine, but differe in the bollweings
Babbitt - 150T.; and Cadmium 100 T.
upplomentary agreement covering tho lact half of i$0, aped in
25X1 A2g
25X1 A2g
T.;
Berlin on 21 duly ]$50, providsd for Soviet delivery, preoumably on credit,
including 20,000 tons of moat, 17,000 tons of fish, 10,000 tons of vitae--
table oil, 5,000 tons or butter. 2,500 tons of butter fat, and 2,500 tone
Of bacon, in addition a 8,000 tons of cotton, to be sent in November-
December 1950. (Berlin 108 22 July 150 - C.)
Another protocol to the original agreement d 15
reportec04 provided !Or Soviet exports of an additional 2,
steel and products, at a price of 20245394 rubles, OM
25X1A2g 25X1A2g
23
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Sanitized Avv.,,vvu FUI RGIUclbe : tAik-kui-itb-oUb62R000360060002-4
b. Soviet Import,
In the foreign trade orania
to the USSR the Artionerny Otdel(Ainistr
firms) apparently ranks; first. Located in B
of the CDR, in relation
of SAG or Soviet-ovned
headed by a General
Nebula, it receivee orders direct from oscow, and is not subordinate to
the Soviet Military Administration except in the case of pure1y local proh-
lams. The organisation has top priority on ill raw materials of the Soviet
Zone, and the majority of produetc are exported to the USSR. SAC firm
include eU the most important engineering concerns, and two plants be-
longing to the organization aro devoted exclusively to production of elec-
trical appliances for the USSR.
The Soviet "Ulital, dainictration controls four agencies,
listed in order of priority (a) Reparations Committee, which directs the
flow of reparations shipments to the IZSR, including cameras and photo?.
graphic equipment, China, sewing machines, typewriters, eta.; (b) OVI!, the
Soviet Military and Contracting Consissio% which is the largeet purohager
of German goods; (e) the Foreign Trade Conniesion, which controls the for-
eign trade of nonmSAG firms, thee obtaining from foreign countries esse*.
tial items needed by the SOVIAS either in the GIOR or in the USSR; (d) the
Trade Administration of the Group of Soviet Occupation Tomas vhich top
eommoditiee it 1944 prices for sale in VariOUS Soviet Army Elan). Stores in 25X1A2g
Bast Germany to officers and civilian personnel only.
25X1A2g
In the spring of 1950, it s stimated that
704. 3? iLfl industrial pro?tion found its j to the ti6S1 by
SAG% Soviet trade corporution?ongaged in eploiting OD indtutrialwealth
and overt trade igreementeatc., (Oa-44
17 Lay $0 ?
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25X1A2g
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eVen bier ObIX of reparations i?rie
(ID Uonthly Sumer/ 23 )1 Jan. N
?
SAO otion in 19O
(based on 1944 pricey), of -dhichthe leri
of chemical products, (inettudik 34945 mallow worth of pooling)), and
3191 millions worth of machinery? Of the total amount, 49$4 millions vorth
of commoditiee mere to be furnished directly to the Soviet Control Occesinion
for exports
date ?.30 Dec
The excesa
at of th, first f 1),:vezlbor the ale had a
I:. An avoraile balance
below on sl.l eocestrelAl trade to :Zia nation. By
favorable balance with the other satellites (including China) stood ata
$23 million under old acreasents, 00.4 million under current acroenente
and half a million on trade outside of agreements -- a total or ;0?9
million. Trade with the non-Orbit world brought the total delimit for 25X1A2g
trade other than with the U-CalttoZ14.5
It is evident therefore, that reports or failure to deliver
on aChexle o the UbsR is dae primarily to the burden oi. reparations. Thc>
extent of the total burden of trade plus reparation deliveries to the U05R
lcdUctollOytbe tact Mt deliveries contracted for Oe& '50 amountsd to
ItAl million ethics (4134 million), while the backlog of delivorios as of
1 October amounted to 474 million ruhlwe a totalof 100.8 million rubles
7 million to be delivered in the roma. The goods to be delivered
inclwiod=Ailing twit an6 other induptrial oquillment, 44 Vali 40 4b4M10410
source GDR of:141414 inlbroation
t that
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Sanitized -Ap
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twit OctSat arri uporto under verionw other trade espeesente are elleceUd
to 0DR indgertriesi etas the masirdme 20 are at direct to the USSR.
25X1A2g
in the yew at 50 slUice D*, (312.S
2/3 weld entelato (about OM miumiss). or Zed aid 4040 or metweizsavi
eel pret4nete? ( thIStmarlr 23,431
A leter mark Mem WA= ewe Duniery 22 flew, $50
Oteted that t4)$40. Om= inperts tore planned at Mita, of *IA the
as half (12P9tN sad that of nod tagalift
toad 014,17 60$ (or Wo
0
%nth, or
2
mindin the rnt had bece deUverod. of the $00
01" lead, WU the mointeed 200 tone of tin and 14a00o toce out a
of i had ease been rewired by Beet *mew rour4siao attime inn
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25X1A2g
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only 300-350 tone, and of Dabbit, only 135110 tons1 tile deliveries or
25X1A2g
cadmium were 65-00 tone.
the promised 23,700 tone of cotton, all but 2,300 tons of tianAsbneuni 25X1A2g
cotton had been delivered by the end of June, 1950.
According to one report, cotton and wool to be delivered by the USSR
to the GDR after 1 July 1950 were to be used exolusively for the production
of goods for illegal sale, in order to earn lest German marks, both direct/7
and indirectly through the Netherlands and Svitierland. (R419-50-1D-.6965180
26 Jul. 150.)
Soviet exports of crude iron for the first
1950 anounted to 32,926 tons valued at $17,794,000. (The original plan
celled for 210,000 tom) Exports of rolling mill products JSM6
totalled 260,13:i tons, viAlut:ct 361966,000. (161,500 tons had been
promised originally.)
of 1950, 125,560 tow of iron and steel products
pared with 12,0)6 tone in 1910
The USSR Apparently did not do so
firstduring the half of the year. A letter fro
and riosestic Trade to the Soviet Trod* Agway complained that only 70,000
tons of the 160,000 tons of barlev to have been delivered during the first
half of the year, and that the East Germs food 04PAY vms seriously teldangered.
It asked immediate delivery of 60,000 tons of *hest instead of the remaining
90,000 tons of Wisp, plus another 70,000 tone of wheat outside the ogres-
In the
irot 10 months 25X1A2g
tiailMarftdp as coo-
25X1A2g
f food
oroiett
ment by 15 July.
planned4, 25X1A2g
ports during the third quarter of 1950, following the signing of the supple-
mentary agreement, included 9,000 tone of fate, 6,000 tons of beef 3,900 tons
of ood fillet, and cod fish
se) Apparently not even all the foodstuffs sent by the USSR, harem, are 25X1A2g
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Sanitized - App
for East German cansumpti
regrigeration care from the USSR to the GDR* al th.t canned moat is
shipped to the U55R in return. The informal', believes it probable that
the meet deliveries continually reported in the GDR press are not reel tau.
ports* but only processing orders.
25X1A2g 25X1A2g
9. So4t Zofle at Atiptria
a.
eneete
have not manifested amy
'51-S.)
I of
at $1040 million eenually1 the source of Soviet fu
prise prints* Austrian occupation coots which were
of Soviet
midi, and unpaid taxes Soviet prote from the oil industry are **time'
ted at ZI7 million annually (of which 84% would under the treaty be re-
ceptured in the form of tong)
The Soviets pay the RAG 122 echiUine end charge 215* the difference of
93 schillinge being profit. (Vienna 1269, 22 De '50 -SO
Soviet *ports of goods handled by Jusehmeschtrane from
20 January 1950 through 3 January' 1951 r be computed under the *alining
170Ve I
Sanitized -
114
cin
(lhlo tone f p
Wood
Chemisals
Electrical machinery
Mambismor !A'. parte (other
Metals and products;
Sheds* basilisks* & parts
machine tools
-4 ? ?
25X1A6a
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25X1X7
25X1A2g
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25X1A2g
lo*figure for
in tons. About half of the metals and products were cates; nearly al]. of
the ohemicali wore paints and products) whileappro:disately all of tho sheds
barracks, and parts group Imre corrugated sheet metal barrack*.
Potroleum is another large Soviet import. Production at
the beginning of the year was expected to be 1.2 minim to (DMA /5
#258, 26 Ray 150 - S), but oilfield* operated by the Soviet Oil Administra-
tion produced annually Giese to 1.7 adllion tons of crude oil. (8elsburg
Vka. 22 Deo. 150 - well-over a million tons are probably imported by
the Soviets) 90,000 tons of oil from the Zieterdorf oilfields are alone
said to be exported monthly by the USSR to ODR and Poland. Some oil is 25X1X7
sold by the Soviets to Austria, eatinsted at 5,000 tons no thly
The Soviets have exported largeamounts 30..
40 carloads of iron pipe fron J.nuary thomIgtillard0 to their Oil Administra.,
in efforts to increase pro-
tion in Austria
eActim and imports
Soviet exploitation is a
taros of forests administered by USIA as German
9 June *50 -54 Soviet Imports of mod, wood proAic
62h tans (20 Jan. 150, .3 Jan. #51) of *AA 130 tone
ng he 67,000 hoc-
(uSFIA, IS i260
and paper total
School notebooks
The Soviets are using Austria as an entrepot point for pur.-
chasing Iestszn goods for trans-shipmant to the USSR or its satellites.
In October, the Soviets 'ere negotiating with a British firm for 5,000 tons
of Chilean copper for shipment to the uSSR. 25X1A2g
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25X1A2g
Later the Dritish offer was reported ithdrei.___
early aznay, XI increase in SOVirt Order Mid 7-
cor,per and lead vas noted. (Vienna V4lka, P--4978 19
S.) A
Soviet trade delegation representative in Vienna in February ordered 4,000
tone of magnesite brick (for the lining of blast furnaces) a firm in
the international sector; it in believed intended for ahiment to Berlin.
(659527, USFIA IS 252, 14 Apr. 150 - S.)
In late November, it ems reported
*ere daily being sent by Juscheresehtrans to the USSR, or approzt stately
460 carloads. 25X1A2g
C.
Soviet ex,orts to
slat principalk, of luxury items, cent to Luis
USIA stores, in competition viith Ibustrian 'MM. The principalliusvone
is to acquire schillit3gs for the purchase of Austrian and .4.? trian-ixo-
1?ortril roods.
10. China
a. Trade and Barter Agreements
Details of trade agreements of 1950 are lacking in t cacee.
The major exception is the agreement on sdneral =plot cal in ainisimog
of March 1950, mhich establishes UTO Sino-eoviet joint-stock semp,Lnice
for mineral exploitation and r rats almost uelleited Soviet activity in
Siekisne. (State, Moscow, i976, 29 March 50 - Pl..) The Soviets) are also
initiating upon IC repayment of the loans mac* to Nationalist China; paymekt
each year of several thousand tons of Tungsten concentrates, antimony, mid
25X1A2g tin. 5everal barter agreements are recorded
They con-
fer sale in
under which China s
al raw materials in e7chanee for capi
tab goods, eood pulp, and petroleum products.
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Sanitized - Apfproveu rur melease : L.IM-rcurt o-uuoozmui.)0300060002-4
b. Soviet Iorts
Export* have almost exklusively been raw nateriala. henever
capital equipeent has been traded to the Soviets China has received capital
equipment in exchange.; thus American automailes and equipment have been
exchanged at the rate of one American truck for two new soviet trucks.
or passenger care being exchanged for Soviet
In all oases Soviet goods have
25X1 A2g
25X1 A2g busses*
25X1 A2
25X1 X4
been delapidated or of very poor quality.
bristle production
etint.d 2C of Chi /(or about 680 M4 tone) is
U5S1
beans u
moved from Harbin in 1949. (state, j Jan
ports came through in February the the 1I
tons of soy beans, (w324.4 million)
Again in Octobers Hukden authorities cone
USSR.
25X1 A2g
Korean police action.
for June 1950.
Natftni
to the
Liaohsi
to send 500,000 tone to the
25X1 A2g
t-China trade.
has been in psrticulr demand since the
620,000 shipment of vegetable oil ems scheduled
25X1 A2g
that 4,000 tons of foodstuffs
theTiontainVukow railroad
pite ds in Jebel ane
4 n tons of foodstuffs
25X1 A2g
25X1 X4
5X1 X4
25X1 A2g
150, Pl.)
ly 1950
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25X1A2g
25X1A2g
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of a total production of 10 million tons exported to the
Peanuts and tea are other important ex,-
ports.
Large quantities of molt cotton, and silk are
the USSR, presumably for the Soviet armed forces.
The minerals of China, and particularly of Sin
great lnterett to the Soviets. Nearly 411 of China's tongs
? are of
ti
many production goes to the D5U. Ne4rly 2,000 tone of Tungsten and $00
tons of antimony mere shipped Via North China railroads during the second
quarter of 1950.
Meat 60 tons of i tin are oh
all molybdsnum
are ehipped to the USSR. (Ibid.) The Soviets
minerals such as uraniumy coal, oil, irons tunge
copper, but to what extent is unkaown.
The terms of trade Appear to faor the SU in st cases
For example, the Soviets take Chines, bristles and duep them on the load
market at 36.50/Pound, or v.65 under the worLI price. (IFX $100, 14 Apr. $0,
Res.) In a. more devious manner, the Soviets improve their terms of trade
by selecting the best quality goods for which ther return goods of poor
quality.
thly to the USSR.
trates of South Chine
plotting
gold, silver, and
C.
25X1A2g
25X1A2g
and wood products, capital equipeent, and luxuries. i1it supplies a
probably the most important. Capital goods have been imported
automotive and transport equipment; and industrial machinery to 4 lesser
25X1A2g
25X1A2g
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SailltIZeka - mpprovvu rui rteICC1*C . %.#1P%-l-Nlar *I -ww..L.-.1,00300060002-4
extentOver 1,500 tors of the former sre imported via North China
railroads in the secone quarter of 1950. U874, state OIR DRF apt.#289.,
25X1 A2g 21 Aug. 150 - SAS During the same period,
830 tons of machine tools were imported, as well as 700 tons of mining and
metallurgical machinery. (Ibid.) April 3.950 witnessed the first staple:It 25X1 A2g
25X1 A2g
of agricultural equipment for whidh contracts were made.
In mid-November, 2 Ships tith 2,000 tons of rails and radio
25X1 A2g ouPPUes arrived?
25X1 A2g
There have been but
two reports of importation of luxury items; yet one American businessman i's-
ported that the bulk of iet goo** on sale in Tientsin Appear*, to be such
items as perfume, chocolate, and food specialities.
25X1 A2g
33
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ammaigimommi
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reediting
Swaim and servals
Seat
Pinata
SSW
traits sad vegetables
Vegetable ell'
Peletees
Wren"
st=:.
gsberese
Weber sed
forlillsor 1::::!
Petroleum predict"
Siloam
Oeel end robe
Motels end pasisets
Zr,. end steel eredmeta
Sam?terrens metals
Tie
Load, it.., and maseentrates
Copper
Camila en
Solyteleame
1:11:11;
lanodle
Tramline
firiaelt
?
=fat 1441"
' ties equipment
Ihriatimin ledustrial equipment
Slectrisal equipment
Chem:teals
lahher Probes
Claes end probate
Optima eel 'reclaim lestmeeets
Sheds, Wreaks, sad parts
Textiles ? mitten, =el. Yam
Footwear
mama wasa man SaTILLI7S5 1950
(rilaree are ledisaisi is tons (1), rabies '-Cr), or in 'mite if met otherwise ledieeted)
ALUM =LULU
(a)
(a)
1:3
Ca)
700,000 1 (4)
Ca)
(r) 120,000 t (11) (b)
75,000 t
Lutail--- sous
MAO Qnn
250,000 1
125,000 t
'MOO t
390,000
2,500,000
45, 000 t
25,000 $
C.) 2,030 $
(a)
ao,000,oce
iisoo,000 t
11
al
11,000,000 r
ir
)6, coo, co5 Ca)
4,000,000 (1)
(&)
, moot t
$10,000.mo le)
Substantial shipments reported. Zefereatiem ineuffisient to satinet* deliveries ter the year.
1950 trade agreemeat oomalteent. &moot L. the ease oilumaela, Hearse are est available.
leporte.1 essaiteent from the 1949-50 erop.
Adverted 19,3 eammitment.
May 1950 shipments reportedly amemeted to 134,000 toes en emenerclal aesemets, plea 55,701 toss es reparations payments.
. Marrs givea represent sempllstiom et reported Jueshenestrens Shipment', 20 Jan $0 - I Is.5/.
Unmet" based en reported emathly average or percents's of prodestima ping So the 02121.
Aspertedly lead's large arkipereta of dreat am2 rise, bet presumably also ineledes eolbean shisneate.
Imported total of tee eamtracts.
Itzpleitrd by joint Sine-fieviat emnpanies, through shish the 5282 reportedly has ? monopoly on Ohlea's strategis eleerel reamers's.
An eetimated 75$ of German last iedestrial production goes to the 1S31 by various means, imaleding reparations payments, Sal omtorprimrs, it..
CEO RET
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mm1tt11T?6???
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2411.1IT
mace Krum worm to fla Calf ? 1990
(Timm. are !allotted to Sass (t), ruble. Cr), er in emits it osi othorwis0 id41oets41._
?4111, 0.?
Foodstuffs
Mal?
Meet
Fats
row
fertil^ ise?
-Sett?
Deni
Umber a? predeete
Madsen prods,?
Oahe sod ?el
IVO% sod ?eel end probate
lard metals
Naomi moo
lerforpros metals
ewer
rla
Lied
Sins
Debit'
Dispel
alsaisms
Oedatma
lisSanaws
Drina
Autism
Nem?
?bests
Ommesete
:=1:1te
raw materials
Pharamentimals; ?died equipment
Cass
Seisetifie end precision ineimuments
RdWeer and ?efts?
agrimalterel saddsmery
ledowtrIal equipment
Petroleum equipment
trameainerr end sprains teals
Sleetrieel mehimarr moi taraipmat
Dell mad roller burlap
treesportmation equipment
Viliter7 'applies; wanes?
1606coo t (I)
725,003 ? OD)
4)
It)ti 40,020,000 r
(1)
(b)
430,000 t 300,000 t
(t) ? 1,)Xr,0210 t (a) (b) 12,500,000 r 71119t
noockaoo r
14,000,tcre r
Of) (b) 1%oxi Cr)
(a) gi 200 t
500,000
31,000%
17,000 t
31,000 t
51,700 t
4,0001
al
(e) (a)
al (a)
al al
al
MOO t
200 t
MOO t
5,400%
150 t
400$
1,500 t
100 t
50,050 t (d)
1,700 t
2S5 t
250 I
(1) WOO 1
(a)
1.300 t
20,000,000,
(b)
S.,000,
1,000 t
(t)
70.00O3,000 r
50,000,000 r
25,000000 r
(b)
(a)
10,000,000 r
15,500.030 r
120,003
150,000
5.595,000 r
(a)
(a)
(I)
(a)
1; Large skipmate ?part?. laeuffisimit data to estimate deliveries in 1950.
g fe be delivered under 1Z50 'agreement.
Deported delivered, Jaa ? Sep 1910.
Special steels.
Seni-msaufestured predeets.
325,924 tom of snide Lima end 260,153 tons of selling mill products reported delivered .Jeamarr ? August 1950, plus 125,560 Una of Irma
mai steel products reported delivered :Lamm - October 1950.
?
1441e
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Sanitized - Approved For Release : errklrirrtRMITURF300060002-4
C. Trade With theItork-Orb t World
1.
Soviet trade with the non-Orbit world
tonal cation of the following trends already evident
sok EsOhasie on the importation of vital raw atertais, such as
in and rubber, which must be obtained outside the Orbit and which are
essential to the &oviet industrialisation and mobilisation programa
b. Emphasis on the importation of needed machinery, such as
electric generators, machine tools, ball and roller bearings, etc., which
can still be obtained from the Vest despite export controls
c. Use of short-term barter arreemerti or sales contract* when
these au!'1ce to serve the ends desirtx1, as in the cases of the United
Kingdom, Egypt, etc
d. Use of trade areente oniy when (1) the economic bend its
treat and perhaps otherwise unobtsi.nable, as in the case of
3e1giunj or ends
(2) political as well as oconomiciare served, as in the cases
of i re -- Finland, Iron and Afghanistan*
e* Use of exports (1.) to finance imports, or ( ) to
foreign exchange, as in the case of salts to the LK ane the U$
fors and lalber accounted for well over half of ,oviet exports to the non-
Orbit world, with such items as crshmeat Aid caviar also for eels.
Principal Commoditisa
Of Soviet ieports from the non-Orbit worldof approein6Ite1y
250 million industrial raw materials acco'nted for over 4481 million, of
vela re than A.6 million represented parchAaes of rubber, over 415
million move and mooe prociucts, ane the balance approximatey 20 million
metals of various types. Nachinery imports amounted to million, of
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
which electrical machinery and apparatus accounted ibr over';',131
or nearly half. ?urchases of mol exceeded 428 million hilt Cotton imports
amounted to more than 425 million.
3. Principal Countries
a. The Sterling Area
A striking feature of the direction of Soviet trade with
the non-Orbit 'world in an increased orientation toward the sterling aria,
which has supplied needed machinery as well as vital raw materials. In
1950, the stealing area accounted for roughly 40% of the machinery imported
by the USSR from the tett, as roll as nearly all of the rubber, cotton and
wool. In 1949, the UK, Zgypt, India, Malaya, New Zealand and Australia
provided Z138 million out of 069 million worth of Soviet *port& from the
non-Orbit world, or approximately 37.4% of the total. In 1950, Soviet im
ports from these countries remained at approximately the same level but
because of the decline in trade with the Vest, these accounted for more
than 55% of total non--Orbit imports. Soviet mports to these countries
rose from 385 million to more than $111 million, or from 28.6% to approx-
imately 45% of all deliveries to the non-Orbit world.
The ug provided $28.7 million out of total 1,,
of machinery of approximately 368 million. Included was electrical mach-
inery and apparatus valued at 419.3 million out of about 431 million worth
received from the West in 1950. While total UK exports remained at approx-
imately the eame level as in 1949, shipment, of certain important items
rose sharply. Deliveries of electric machinery and apparatus rose from
10,354 tons in 1949 to 148728 tons in 1950. Deliveries of machine tools
more than quadrupled: riming from 724 tont to 3479 tons. An increasing
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Sanitized - Approved For Release : ..,-666611(000099960002-4
share of UK exports to the USSR was due to re-exports of imported goods
principally rubber. British sales of rubber to the USSR rose from 540 tons
in 1949 to 10,237 tone in 1950.
The sharp increase in U rchasee of Soviet
in an increas , favorable balance of trace o the
possible Soviet purchazee elsewhere in the sterling area.
balance rose from Z12 million in 1949 to Z56 million in 1950.
time, due to heavy USSR purchases of rubber, wool, cotton, etc. the Soviet
deficit in trade with Eypt, India, lialeyao New Zealand and Australia rose
from 465 million in 1949 to roughly 01 million in 1950. Increased British
imports - principally of grain and lueber - thus reduced the Soviet deficit
with the area from approximately 453 million in 1949 to about $25 million
in 1950.
Next to the UK in importance, as a source of imports, vas
Malaya* The profits made from the sale of rubber in 1950, and Soviet
willingness to pay rising prices are reflected in the fact that the USS*
paid 440 million Apr 68,058 tons of rubber, whereas in 1949 it had puri-
dhased 63,414 tons for 425 million. Egypt ranked third in the sterling
area, providing .25 million worth of cotton, about half of which yes
paid for by Soviet exports, of which the most important VAS whatit. Australia
COMO next, delivering $24 million worth of wool.
b. The US ranked next to theta as a source of revcme from
exports. US purchasee of Soviet producto race from million in 1949
to 440 million in 1950. By far the lareest item was fare, which accounted
for more than $21 million - over half of US purchases and nearly two-thirds
of total Soviet fur sales to the non-Orbit world* On the other hand, US
export controls resulted in a decline in American exports to the USSR of
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Sanitize - Approvea ror Keiease : GIA-RDP75-00662R000300060002-4
from nearly 7 million, in 1949, to aproxiz.a tely 63O,oOo in 1950.
Thus, US purchases from the U3J11, increased
Soviet earninrs of needed dollars from ;36 million in 1949 to near1y
10 million last year.
Soviet exporte to the US also furnish an eL.?;.ese-.10 of urql ax-
planation of the satellites in itc trade with the West. Durinc 1950,
US Embassy, Uoscow, certified invoices for exports to this country with a
total value of $41.6 million. Of this total, only 25.6 million repre-
sented Soviet oods. The remaining 316 million was acoounted for by
Soviet sales of satellite products, Chinese coolie - principally bristlee,
hair an furs accounted for $4.0 million; German potash, Z3.7 nillionl
Bulgarian tobacco and rose oil, ;*,2.2 million. (Source:Sc
aspatchce reportint monthly on certification or invoices.)
c. Italy rankod second to the a as an exporter of machinery
to the USSR in the int eleven months of 1950 providing ;13.1 million
ias of Moscow
wo
The second largest category was traneportation equipment - 7cipally
ships, tugs, etc. valued at 41.7 million*
d* Sweden was third in its machinery expo
612.4 million in the first clown months of 1950. Accorcthg to es
for the firstntne months of the year, preibably over 60% was delivered under
the terms of the five.-year credit agreement of 1947. (Stockholm D 640i,
15 ))ec. 150 Res.) exam it alio know) to be an important ourrplier of
ball bearina to the USSR but details are difficult to obtain.
e. Fin1an4 signed A trade agreement with its Soviet neighbor
on 13 June 1950, rtor negotiations hue dragged on for monthe and trade
between the two countries Lad droppee sharply. The agrecent the first
to be the U.:XR vith any non-Orbit country in .1.950 provided for
most of it non-electrical out of tots/ exports of ;17.0 million.
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SanitizediPleprmremOrmsoRehiliaippoimakagapaom0002-4
trade during the last six months of the year, and a lang-termapwesmok
calling for an =Change of $705 million worth of goods over the period
1951-55. Finnish lumber and products metal-working suohinery and trans-
portation equipment were to be exchanged for Soviet deliveries of wheat,
petroleum products, various types of machinery, textile febrile*, etc.
As Finnish reparation peymente decline, Finnieh oemmercial deliveries
to the USSR will increase. In 1951, they are expected to absorb 400
of the production of the Finnish setalmorking and shipbuilding idiom-
tries, and by 1955, 70%. Thus, the USSR is assured of a continued flew
of needed goods from Finland after reparation deliveries end in 1952
The agreement is in terms of the Soviet ruble, with the UM promising
to Pay world prices for Finnish goods. (islabild 312 - 14 Jun 50 - P1,4
Helsinki D. 530 - 22 JUn 50 - F1.1 Helsinki 544 - 27 Jun 50 - F1*)
Concerning the Soviet commitment to per world prime, the Landes Emit
ma observed, (24 Jun 50), "Prices Should be world prices, but the
Finns fear that, so long as the Rumelane ars the sole buyers at those
products, the prices may be affected by the desire to apply political
pressere.?
f. IWO= finally concluded a trade ag
17 November 1950 the only other commtey in
the Soviets siereed such a treaty during the year. The agreement
retroactive to 1 ligy 1950 end scheduled to rum tor ems rsor prowbbiet
for an emphases of geode valued at between $12 and $14 mini= each
The most impertamt Belgian commitmeots are 64,000 tons of steel plates
and sheets, 10,500 tons of copper std copper wire, 7,000 tons of crude
and laminated lead, 660 toms of tin, an imitated amount of indmetria
diamonds, and ship repairs valued at 6301 million. Principal Soviet
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25X1A2g
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exports are to be 300,000 tapsof ram ,000 tons of ferro-eanganese
and manganese mineral, 25,000 tens of industrial salt, and 50,000 tens at
potassius salt. (Brussels D. 596 - 24 Nov 50 - S.)
The Belgian Foreign Mips informed US anbasey twee
the agreement, no copper or lead would be delivered to the
843 - 29 Nov 30 - S.) However, a thoroughly reliable soiree in
Switzerland, reported that Belgian copper interest had concluded sales to
Soviet agents of 6,003 tons of copper and 5,030 tons of copper sheet.
(Bern 856 - 11 Dec 50 - C.)
Belgian trade statistics fail to shoe any Un to the 133R
rAe
in the firet 11 months of 1950. However, it has bereporteillelgisa
firms have been supplying the USSR and its satellites with tin which sus 25X1A2g
purchased for Belgian consumption :ran Nalera
Belgian salsa of industrial diamonds direct to the U338 apparentl7.
dropped sharply in 1950. However, exports to Switzerland have 4101111
marked increase, and it is estimated that up to 95% of the industrial
diamonds bought from Belgium by Seitzerlaad are reexported to the USRa
(Intwerp D. 118 - 31 Mar 50 - C). This eetimate is strengthened by seri
dance that 88% of the Belgian, industrial diamonds Imported bY Suing flans 25X1A2g
in 1949 were reexported hy those same firms to the USSR.
(40..Tiem, like Finland, eland astagainfoonent with its Soviet neighbor
after protracted negotiations,. CoaCluded on 4 November 1950, the treat,'
calls for an exchange of goods valued at #25 to iya nillicn each way.
Principal Iranian exports will be 35,800 to 60,000 tons of rims 3,000
tons at cotton, 1,000 tone of wool, and 300,000 goat and shoe shins.
Sanitized - Approved For Relttse : CIA-RDP75-00662R000300060002-4
banitizea -by. ?
Re 00300060002-4
It le estimated that this yin absorb tsar* all Iranian rise
avaihoble for export* and mot of Jr* cotton and nool. Soviet export.
vd11 Unlade 75000 tone of sugar (estimated at tvarthirvial of Iran's
isport needs), 20,000 tore of seem*. and 50 million raters of %Atm
pier* pods (an estimited 50 of treats inert mods). Tbe sgreozsat
Overt the =SR a virtue mow* on the agricultimal averts of
Den. It is also expected to curtail Mutters marlints and to *nese the
imbastry of Central Inn thmatt
the imptntation of cheap Soviet
worm miipatou 376 - wov 30
50 - 8.) Peers that the USSR mould also find fresh
(*partway towpropaganda and infiltration have teen fortified by the
Iranian decision to Awoke the plan to cooduot the trade with the USSR
through govarimentrapormered corporation, thus perottting the Soviets to
deal directly eith individuals and private firms. (Teheran *oda 5
2 Feb 51. 8.) alanlikties the develepornt of trade under the apeman*
vas apparently slow in starting. The Paris Mao **Parted that nO *dr"
meets Isere side under the agicesset anti/ Amery 1954 (Y1S 16 Jen 51.
Res.) Soon contreets had been demi and deliveries mole * end of
?
an
period.
elationin rotura for Soviet gaeoline agricultural meohivemy and textiles.
The USSR deliveries of gornoline *ere set at 3 ndlUon gralons (presumably
a Isisa). ammo' 156 - IS they 1950 - CA7 knahoor report placed the
21131 501 26 ilan 51
rimulatamme the fourth soxr'Ct country to sign a trade
the Mi. The treaty sigood 17
COrMsdittirs vaned at $2.0 IOU= e
950
ghardetion agreed to provide Incas bides* and 4500 tone of
Sanitized -Approved Forgtelease : CIA-RDP75-00662R000300060002-4
Sanitized - Approv,...1 J-LnotmArw 0300060002-4
gssolive (prelenndar over the
25X1A2g
lamenting
25X1 A2 g
the Afghan Foreign
on the vooi being fuendsbed to
a bad bargain it at be carried
out. (Zabel 225
Details of
glom Nr value in Table IV and 4i major Ci
Tables V and VI. These amp incomplete in
or categories in
because 1) coep
tietiee ere not available, (2) sufficient, breekdoeme of en& categories
onindwirmayu are net published, or (3) time did not permit the trenalios
tion of evenly item listed On Table II, estimates have been nada 40 to
00 'WW2 trek iii* Vtablivin European countilas when on4Uxonthe
wiediebia, In ehe ease of rgypto for 4ocarp3e* *Are AttottiOt100 for only
7 ?maths Iwo available and the trade is *Object to considerable finOhnero
no attenp4 was made at nulannmel estimate On Table VI total fir
or.. for etch categories as machinery imports represent known minimal
huend in port on 11 months and are therefore ineomplete
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as175
LV
Sanitized - Approved Fore4 . -RDP75-00662R000300060002-4
Westerrn Swops
Austria
Belgium
Denmark
Finland
Franco
Germany
Italy
Motherlands
Norway
Portugal
Spain
6veden
suitalorland
United Wing4on
Yugoslavia
Total
Western Hemisphere
United States
Canada
Argmatina
Brasil
Chile
*ado?
Uruguay
Total
Middle &tat
Afghanistan
BMA
India
Iran
Pakistan
Other
Total
Far Mast and Ceosnia
Australia
Hong
on
Japan
Malaya
Now isalsia:1
?thin.
Total
:LCVliT TRADE ,11TH THE NON-OHEUT
(in adllions of dollars)
21242
40,Prtio
(a)
29
10
61(j)
1$
7
23
22
6
40
6
2Z2
7
a
12
ports
(a)
6
16
49
6
16
22
24
Alb
3
3
52
6
20,3
150
19 (h)
10(b)
1 (b)
7 (b)
27 (k)
31.
3
5
22
6
4
2
40
96
145
153
1 (o)
4
4
2 (4)
13
2
25
12
27
la)
4 f)
1 (g)
1 (g)
h)
10
5
1
5
41
44
33
2
6
2
5
2
1 (f)
25
1
40
15
1
3 (1)
10
94
ba
4111M
3.
Total teallaitialft4411PrOved 5ey Release : qff-RDP75-00?42R00030006902-4
Sanitized - ApproverraMVIIIIWPWRI1011011101WitersialiaNafiP060002-4
(a) Figures not available. In recent years the 11R is estimated to halls tiketi
between 410 million and 420 million annually from Austria in various
(b) Latimated on basis of figures for eleven months.
(c) Five months, January-Uay 1950.
(d) Estimate.
(e) Javan months, January-July 1956.
Ueven months, Januarpaovember 19W.
(e) Fiscal period of September 1948 to September 1949.
(h) Fiscal period ofaptember 1949 to fieptember 1950.
(i) Nine months, January-September 1950.
(j) Finnish reparations deliveries in 1949 amounted to .uother 88 siiilion.
(k) Finnish reparations ueliveries in 1950 amounted to another E37
NA Not available.
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Sanitized - App 00060002-4
BEST COPY
AVAILABLE
Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
,:. ;7,959 Machinery 27,519 28,734
".: m3,946 Electrical macLinery and goods . 19,377
3,963 electriva machinery 14,728 19,555
..,, 752 e/ectrica goods and ammaratus 752
.". A.863 Non-olectricsl machinery
? _1,710 mschlne tools - 3,479 2,319
' 264 Scientific and 7recision instruments
', 5,427 TransArt evipment
' !,,000 Snips, tugs, etc.
691 Other
62,604 Agricultural
1,637 Fish
, 4,3/7 Fats and oils
337 Unmenufecturel tobacco
1,377 Fabrics and manufactures of heel, flax, Jute
245 Vegetable fibers (other than cotton)
r 626 Silk
' /1,433 Aool
' 21,213 Cotton
319 Chemicals
159 Drugs, medicine
,337 Industrial materials.
.,032 Iron and steal and manufactures
:,785 Con--es' ani manufactures
Lead and manufectures
Tin and manufactures
0,654 Other common metals
Rubber
,250 Cork
Wood and wool products
PRINCIPAL SOVI-47 IVX,111; tt;:7'w.; 909-0e81t ViOnLD - 1950
(in thousands ofdollarm)
,NT-J .h...1),444 NO:4.1');.Y. Ja)M a) 0 ) (b)
B
,L12,.....tial4,. .19.1,22 v:1?a e'lue tons value tons value tons value tn vain.
' 1391 12,419 202 : 7,749;"4218 .13,C09
3,211 4,197 7581 4,131
3,211 2,037 4,197 .
1391. 9,20e 232 , , . 3,906 3,552 8,948
6492 1391 .'
...? 264
900 387
2098 1,377
617 245
J.,101 626
1,433 15,977 24,141 2330 2859
26,915 25,213
319
159
6,770 1800
530 281 12,732 1100
2,810 703
10,237 6,489
6)6,653 , 712
15,595?1,939 4427 712
6,099(ip,9e5
1,73/E) 475
(650) th)
% 265 1,254
60oo tons)'
8972 1250
MAL EY CCONTSL,3
TOTAL IATOnti
'e Incommlete, sum of items shown
As: Eleven menthe, January - November /950
11.... Nine 2cnths, January - Sentember 1950
.1-' Seven mrnths, January - July 1950
_T
'''..id Aluminum
? Train agreement of 1 May /950 - / May 1951 calls for Soviet immorts of 64,000 tons of et, : sheets an-i notes
. f) Trade agreement calls for Belgian delivery of 4500 tons of con.er plus 60C? tons of coo -.2r vire
,..;: Trade agreement rrovides for 5000 tons of crude lead :quo 2000 tons of lemim6tei lead -
(M. Commitment under tvmde agreement. No deliveries to US-d11 re;ortel in Belgian trade stetist'xs for January - November 1950
(., Estimated ream -orts for 1950
(1: Commercial exports only. Re2arations shimments amountel to $37,226,292
37,256 1800 142' 18,906 7404 202 , 250 15,028 17,491 24,141 2859 25,213 39,764 1250 2;,4at
39,702 2650 400:' 19,017 7550 1156 , 507 /6,825 17,781 ? 24,141 2859 25,213 39,764 1250 2,...307
PRINCIPAL SOVIET EIPOsTS St THE NON-ORBIT mORLD - 1950
(in thoussndi of dollars)
tons valve tons
P,:t: products (fodder, and foodstuffs) 37,850
? (,,,alsys 675,204 37,850
Corn 266,853 /5,124
Barley 324,566 18,594
Oats 83,852 4,132
and fish products
Shellfish and products
::gar and,confactionery
N. food products
-evtilisers
Ave, skins
dzistles, hair
..mcce sod manufactures
504 11,559 69 14:7
712 2,461
iWs%ton, raw and manufactured
SL01, FIT endIana/MUM
Rs: wisteria's
7.ecious motels
* 'Almonds
s, cinders, ales
l'as and steel, crude and semi-menufactursd
acwnstrial raw materiels '
Nv:zo alloys, ores, metals
GAmer, crude and semi-manufactured
rka
tar '.
'Asbestos
food and wood products
'nod and timber
taper pulpiSkr'.'
C'4.11.ca1s 4
.11ycerin .i.
tU., fats,-resin.,-; :?
? '.7'14.6.
lksia!acturd"s
. /rum, cast, .steel
' lit:?Unory
T,m1sport equipment
Istrolsum and bituminous products
ilinsral fuels
TszAles
29,237 502.(d)
11,471 784
2,543 44P
31,624 1,122 128
29,239
2,385 1,122 128
668 1,454 6/3.
1,454 613
1111.4! TAM tong value tons value ...tsalve_avi maid dialiS
764Y 3412 1592* 9,057. 15,926 3,626 79,120
7643 26,889 1592 94,766 9,057 104,495 4,844 65,986
22,767
76431 18,594
4,132
3,626 3,626 v
2,344 . .2,3444AA
4,944 :-4,944!T
1,035 1,038
47,923
2,736 E06 5,111
167 475 21,061 34,712
382 2,843
385 667 2;466 3,/33
153
t 1,706 /A706'
265 ? 265
51,430
903 941 2,057
213
1129 10,397 416 1,545
(11
13,077 1,014 1,4
910
4,832 4,832
694 279 279
12,692 313 . 824
784
446
36,138
29,239
2,523
2,611
?6 68.
S. 12,6476,366 748 ',...
748 .
875 875
1,855 1,855
5,728 5,728
1991 ? 1,991
649(0) 1,450
84,963 4455 1024 9217
93,827 4863 2/55 9542
12,154 ' ' 27,669 37,471 191,120
12,250 30,608 40,310 211,143
? T.' -gmaste, sus of items shown
(e) :Leven months, January - November 19'50
(b) Industrial chemicals
Ici tattoo and cotton products
-d - A? proved For Re eas-
Priktrihrkirl Cl.
(1)
A.
Sanitized - 017. nnrrc
III. EVALUKUON 7ACILITIE6 AND INFORWTION
Internal Facilities; Information Collection an Diskemination
1. Library
In making this survey, the principal facility employad to map,-
plement. information already available in the Trade and Finance Branch
was the CIA Library. The following tablt,:a ahow the results obtained on
a run for information on Soviet traue with the Satellites uuring 1950.
25X1X12-
11
COUNTRY
LIBRARY RUN
OTHER
MATERIAL
NOTED
TOTAL
,INAILABLE
TOTAL
PREVIuUSLY
NOTED
NUT
NOTED
Albania
15
3
12
6
21
Bulgaria
29
5
24
16
45
Czechoslovakia
91
5
86
21
/12
&agar,'
36
-
36
12
48
Poland
40
7
33
28
68
Rumania
67
4
63
15
82
East Germany
132
6
126
45
177
China
594
43
551
227
821
It will be noted that from the 594 40M140114S recorded in uhe
Library run only 43 hau been previously noted by TraUe and Finance Branch.
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Sanitized - ArrreIfferri,MeltonWrelOPRININNealiiiiMMA060002-4
Of the remaining, probably 73 percent had been seen by 4/TY and sent on
without being recorded -- either becauae they duplicated information al-
ready known or were too unimportant to warrant note It is also estimated
that the remaioing (1010-odd) documents never came into S/TF. In some
cases, their general titles give no clue as to inform& ion on trade or
finance they contain -- probe-14y only a few lines -- and assessment would
be impossible without time-consuming perusal. On the other hand
run aid allow up two SU documents of great value which had not been seen
before -- one giving the text of a Czech/Soviet agreement grenting the
USSR extraterritorial righta to Czech uranium mines and the other list-
ing Soviet commitmente to East Germany under the 1950 trade agreement.
At the sane time, it will. be noted that 227 documents retained
or noted by S/TF did not appeir in the Library run. Probably 514 to 60%
of these were cables, which woulo not appear. The remainder, however,
-- including J) and 00 reports, as well as State Department despat.ches
ahoulu have shown up in the run.
An inconsistency in the coding came to light in the case of
regular despatches from Moscow reporting the invoices certified for Soviet
exports to the US during the month, showing the commoditiee of satellite
origin. Three of the despatches appeared in the run; the others did not.
2. SU as will have beenTsM9(42oa the breakdown given, was an out
-
25015,144u*, source of information
Generally speaking, the inform tionIs very valuable. (Two
doubtful reports in the case Of Iturtaiqill hL.ve already been noted.) }*w-
ever, most of the information is too fragmentary and spasmodic to contrib-
ute substantially to the over-all picture.
3. U is doing a good job with its contacts. The tranelations o
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Sanitized - Appro4wu r?. mrto7c nnan9R(M200060002-4
foreign press articles are also useful in providing fragmentary informa-
tion, as is the FLITS summary of broadcasts -- particularly ttiose ralating
to traU4 ami finance.
4. FDD was not exploited in connection with this project and NUht
have some uaeful material. However, experience has boon that the trans-
lation of documents is quite slow.
5. Domaent Distribution. Publications giving foreign tra sta-
tistics of the nonOrbit world are the primary source of information
concerning the trade of those countries with the Soviet Orbit. Rost of
these publications apparently do come into CIA. However, after efforts
extending over more thaa a year, WT7 has yet to obtain a complete list
of such publications and their distribution. There has been no regular
system of collection or distribution. They mey come in by regular sub-
scription, as enclosures to State documents, or in one of several other
different ways. Their distribution evidently dpsflda at least in part
on their boort.. in. the reorganization, 3/TF has been receiving more
of these publications; but some apparently go straight to the Library;
while some evidently find their way to other branches, divisions, or
offices, which fail to pass tilem on. For example, the December 1950 issue
of the "UK Trade and Navigation Reports" -- which was seen in February
by a member of the 4TF staff who was serving at the time on the Reading
Panel -- cannot be located. Repeated inquiries made of the Library, OCI
the Economic Analysis Section, etc., were fruitless. Thus, it was finally
necessary td go to the Department of Commerce in order to obtain statis-
tics of Soviet-UK trade for the year 1950.
B. External Facilities and Information Collection
1. Western Countries. In the countries of Western Europe and other
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
countries reporting their foreign trade on, a moathly basis, collection
of official statistics presents no problem. The information is adequate
as to over-all dfficial trade. Often, however, details of strategic
exports to the Soviet Orbit are generaliy hidden under such headings as
"other countries" or *other commoditiee or "miscellaneous Details of
transit trade or re-exports are also lacking. The UK is one of the few
countries to publish an itemized list of reexports by country anu by
commodity -- and conaiderable informAion is hidden there as mall
Abile reporting of official statistics is generally good, Embassy
despatches frequently give over-all figures which reveal that more detailed
information is available but fail to report the needed details. (For
example -- UE trade with Eastern Europe in 195U was blank eillion pounds,
with no breakdown by countries.)
An Embassy will often report the signing of a trade agreement
with the USSR in a few lines, tiring scarcely ioru than the bare announce-
ment. Further information is often not received the arrival of a
despatch -- perhaps a month or ao later.
2. Other Non-Orbit Countries, particularly in the Near situ 44le
East ,report their information less frequently and systematically? render-
ing regular reporting more difficult and the infOrmatide less reliable.
Over-all statistics, if anu when available, may lag six months or more
in these countries, including such strategic areas on the Soviet periphery
as Iran, Afghanistan, etc.
3. Soviet Orbit Countries present the greatest problem, since the
made public are
only specific figures/announced for propaganda urposes, generally to show
the munificence of the USSR. Over-all trade agreement commitments are
announced only in percentages. It will have been noted frar, Tables II/
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SarlitiZed Annmvpri For Release ? CIA-RDP75-00662R000300060002-4
and IV of this report that only in the owe* of Bhhohla the
figures for trade commitments both ways under the 19514..j agreement ana a
monetary haws of the established goal for over-all trade. Mess were
25X1X4 In-
fo on is available on USSR .raQa agreement commitments to East Germany
25X1X4 but none is available on scheduled imports
from that country. Reported shipments ana contracts, etc., indicate that
some Soviet commitmenta,such as iron and steel, here over-fulfilled, but
not enough is known to estimate over-all fulfillment or to reconcile the
widely conflicting reports of scheduled Soviet exports to East Germany
With any degree of confiaence. Concerning the Eastern Eurapean Satellites
outside of East Germany ana Rumania, far fewer figures are available.
For the Soviet one of Austria Lela for China, only abort lists of reported
shipments can be compiled.
For these reasons, it--is thatthe estimates given for Soviet trace
with the Satellium may be off anywhere from 5% or more in the case of
Rumania to 10-24 in the cases of East Germany and China The average
margin of error is probably 10%-12%.
Because there are a multitude of reports giving small fragments
of information on single shipments, because espy of these -- particularly
in the case or East Germany -- have never been translated because map;
lengthy documents would have to be carefully perused for the one or two
figures they might (or might not) contain, it is estimated that it would
take at leaat a year to make a complete compilation of all the information
available in ClA on Soviet trade with the Satellites in 1950. The time
for various countries would range, from a probable two weeks in the case
of Albania to nearly two months for Eat Germany or China. The remits
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
mould still be far from complete and would in most cases still be insuf?
ficiect to serve as tbe basis of accurate estimates.
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A.
Sanitized - AprOMITEPPRIVIMIekkolit@WfweireigliWASIWAS60002-4
Mani
depend on it to turn vp all milable inforsatice an a given setrb
jet*. If the Librostr is expected to supplant the files of the warious
brushes, the coding ow% be done )4v, the analyete 'he an to use the 11110'
tortal rather than err separate groups The (socking is actually a foes of
evalnation, of salseldrot the it signifies** to intelligens* reser&
and production. of 'sting their present and potential use. Sfen a person
idth theorekisal 'molded., of a subject cannot be expeeted to code the
inforwirtion adequately unless he has the actual experience of Ising the
material and reeliess its preatioal applicaticn. its probable value, both
present and future, in the sulutisa of specific problem, and its relation
to Wieder Additional analysts are needed ? act in the Libramr or
on the luading Panel, but la the offices where the naterial is to be sled
in intelligens resew* and prediction.
b. Additional Lamy persosmel will be needrd if the Library is
to Imp the sterial efficiently end handle down& tor it promptly. It
ssy be possible to have a arrinsi note and obtain the results quiday during
amok melopms. Nowaver, rhea several diviaions of OAR are working on the
awe projeet as is so often the ems it is phydaally bgeesible for
the &Marl to nest promptly dooms of einultanoous requests from all the
bass*** involved without mostly =Panda, facittlitios
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tt
OVICU FUI rteledbe . %.#1M-INL11- / J-IJIJOOLINIJIJIJJ1J1J1J60002-4
t t a
b. Tr should h priority nd epotbiWlie
siU and vital ite field while the tatarerr
of these publimationas they ahoy:14 oesto
is
4e arbor midi*
2 5X 1 X1
a a nthe or a years or at
dz4urn et bade tables and chart,
be sent to the Maw
Sanitized - Approved For Relwe : CIA-RDP75-00662R000300060002-4
Sanitized
25X1X1
A
gi
b
bY 25X1 X4
neadosion than is
nother ountrios
edfta; ghat the pertain to the
nsd.t tvado rbe to tho Semi Wait,
teit
ti aid and participants in
the W&T allianoe pertionler should bito ot?y intonation ot
ore desoribed in b. *.
Sanitized -Approved For ReleaseCCIA-RDP75-00662R000300060002-4
Sanitized -Amm?ovedm."11.....1 Release . 1014Wirefeilli000300060002-4
git/O32
to ik
the
d an the S
A
be
a a
Uon
a
00
fl
A
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iteJvi melease : L,IA-RDP75-00662R000300060002-4
reserves amount to 43 billion.
The 'study of 3oviet golo rescrves anu the possible future implica-
tions In the intermtional economy should be one of the projects tu be
undertaken by Cl!. Vie would consume at lest one year oy u covable
analyat sath g000 financial background. information on this subject is
rEther schnty in the CI; Library, out the ato4 could be -one through
accernulation of all information available in major libraries, bi
sultation, through interrogaAons? Lna through contacts 'with universi-
ties, financial experts, an... Institutions.
Information in the CIA Library, in State Department ano NIA agencioe
is inaaequat and not available ecept for the USA. Long-term attempts
to obtain inform. ion on Ooviet foreign exchange noloings in the non-
countries nas produced no results so far.
Banki Investment and Credit Policiesa
Information as to banking, investment, and credlt policies of the
thiSR seems to be quite auequL,te an available eit2.5EX1Xthe Cfp or Con-
gressional Libraries and in FDD? supplemented by
\/
reports. Pull exploitation of the subject may take at. least ttr sbaths
of one analysts time. However, informhtion on MIA orations is
2V144 un, further exploitation of this subject is nec
LI
ry
25X1X1
Internal ?inanc1ni J.LoAsti_2_40_,..xon ustr
General sources of informiltion on t. is subject s m to be seut
and available. However, more Oetailed informotion as to the volume um
velocity of credit allocated to the vi,rious se gamonts of economy is insuf-
ficient, since 1')41. .tonalve axpkoite.tion of the defectors
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
appears to be the beet ;sossiole source for this intorno Lion.
ernal F #. of r Tent - Gov r nt o 2, meal P3.ic
InformaLion in the above field appez,ro to be available in the CI:
ani Congressaional Libraries. Full axploitaLion should take about one
month.
.10eleat ?.-et ? Bu et t a oia
Informi-tion, except in moat general terms, is ,juite inadequate tor
detail.1-d analysis of the soviet oudgA since 1941 because of the USoR
policy tO reduce the informetion to 1.1 minimum. Site of informa.tion have
..14 be gatLereu from verioug puolic utterances of ::yovist officials soviet
publications on various economic subjects, or from tLe various 4renas
and symptoms of the general economic policy, defectors Arnhem'', and
Attache reports. 4hat the 3aviet tAtiiget fires do disclose is tile
fact that it represents the fimncial framegork AtLin enich limits
the ..,oviet economy -4.11 to function. It aloe reflecLe trie over-all
national economic policy anu delkye of effectivene s or its program.
Cross National Prouuction anu Nationai. Inc
economists in various economic ortenizetions here ana abroeu are
still busy in attempting to figure out Grose Nutional Proeuctien and
Netionel Income of the soviet Union. Cit has used sole of these eel-
culetions as appmxlm to ineications of national income on the basis
of one'aoviet uefector economist oh() was not in the doaseszion of data
goinu into the catA4 of nt-tionul income, but remembered from paet ex-
periences thet the ::;ovist etLte budget represents about 75 percent of
the a; version of national Immo on the producers/ level of cost and
prices in the current rubies. Trbae en.; Finance dranch, .ervices Uvi-
sion has not previously been enk,aLed in ti.ie study of reeeerch on the
subject.
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Sanitizedakisisososelmrsowiitolewrremerterpr3-erreanierintitto- 6o o o2-4
However, the USSR Central St:Aisticel Administration figures for
gross industrial production ere 4?vai1ab1e in percentage form ane bre
used Ls a basis for cblculation by various agencies and conomists. The
question is: How reliable are the ::;oviet perce*tag of stbtistics?
On the basis of Soviet statistical the following figures are cal?
culated by our Moscow aribassyt
Gross Ineustrial Proauction
Year in PreduiEgriX24.47,Mt2.111921
1937 95.5
1940 138.5
1945 127.0
1946 106.0
1947 128.5
1 163.0
1949 195.0
1950 240.0
National Income
(in billions of moles
1, 26, ruble values
149.1
174.5
211.1
George Grossman of the Feral Reserve Beard estimetee soviet gross
National Income au follows:
194.
Gross investment 165
Military use 90
Consumption 12.2
Gross National Income 650
of Soviet National Income at R le Values
Year
1950
1949
1948
1947
1946
of Rubles
ow
570
54U
520
490
These figures appreximiitely corresdono to 125 i)ereeut of annual atiA.
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
budgets with some upward adjustment in order to compromise with various
reputable attempted c.Lcu.iationi warc thus subject to error of about
lk; percent. It is possible that the American Statiztical Society can
clarify the situation in their forthcoming M4y 1951 bulletin.
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? r?In_onp7c_nn662R000300060002-4
Sanitized - f.r.,3. &vs II ref
?
a, The subleet re
b,
?r' 4
25X1A9a
of
0
25X1A9a
Xl
13
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
,4'?'
National
di
of met noteriol
of im
t
to
a
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Sanitized - Fopi vvau oi rwiecibU . %.4A-murt o-uuoo2R000300060002-4
'
, ? A
'it
in Top
required to so tier*
of the
a
1
of tlao
,
itt tits
on Ude operatleal
libren* IA
32
eller the tim
in
g A
f
25X1A9a
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Sanitized - Approved For Release : CIA-RDP7s_nnAA9pnnn100060002-4
those runs
in pat
COI The
5
la
to
ITO
tat
a the
:440"
to e
The, IA5t WAS eeeeNeS Ape% $24.
4
et
ii
too
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Sanitized Approved For Release :
b. On , if flot
title is the only
addition4 ini
ally is more of
Than an index
'rheas two conditions resat III a sit
broad flold is so 3
able tine for
listed to Gaazd
the other hand, if all. doousente axe not
Vat .413.
If the
appears that the
referenne to the
not be nisei% to
of the tion
rants (2 10
eita
tion is
*Lit eilldnate a large
the USCOS549 det
Of t
he
4374 r,
of
d nfo
a
' 4
VO?7 7
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Sanitized - ApproaftsligisiplisilemeloPreMBTRU00300060002-4
6
If it is determined that OCD shall
files and remory for CIA, it would appear that
be fans
1.
2. The litnew must hen a
ing at the
I ? , JiT
all dolmen
3, Contonts rather than
it wsv. paid for or free',end
the factor utsich determines
and be
Lk CIA pubiteatione
index. ',fare a stu4r of so
to be o it wtvi
ana3,Tat to utilise the wog* alreattr tr
the CCD j This should be indexed
factors as
on
4"16
t completely listed
5, It appears t
the d
with finding the
through the channels
(deewlbed in
time,
OCD turns up a
iva a CIA.
t CCD *wad
ti7
d to obtain
histeay above) al;
6. Cable
Used. Cables should al
six maths. This period
Do
to be a asts of OiRlitte
lost at p nt if
bet
rM* ire extension,
Cables are
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. r?IA prIP7g_no662R000300060002-4
Sanitized - re. Rile,?
As
a.
at)
be A Ear
above
h'ntv
manta relating to yew few subjeets
tion to &itemise
eV above would pro?
yeeoent on] zr thoz dominate vial* a,1d be at
It a to that the abova
to the elladzat
a
IOW
0
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
SOVISTJUnGeT FOR 1950
,
?
Summary....1.
Soviet financial policy as reflected in the State I3udg?is subordinated
The direction
and supervision of thil policy is through the budgetary plan, as reflected in
to one primary aim -- the maximum militarization of the nation.
the maintenance of about a 5 million peacetime army and vast investments in
capital inaustries anu enterprises, both of which greatly reduce the volum
of available consumerst goods. Various estimaLee place the total amount of
national production going into Inv stments and defens at 60-70 percent. CIA,
URR, L)/S, Trade and Finance Branch is willing to accept the Federal Rea
rite
Board estimate that about 40 percent of national ffort goes into production
of consumers' goods ane 60 percent into capital goods and purely political-
military expenditures; or, stating it the othr way, only 40 percent of atone-
tau income earned as a result of prouuctive activity originates from the
proauction of goods ane services for purchase by ultimatt consumers.
ortance of information of Soviet Stets BueLet to National int
ce
The study of the Soviet State Budg t for 1950 was selected as a sample
project for testing the ignorance and intelligence in the financial aflairs
of the USSR beausz (1) the State Buaget is a basic machine for mobilizing
the accumulations (financial reseurcs) of the economy and distributing ei010
in accordance with the needs of the Communist economic plan; (2) it reflects
about 75 percent of the Soviet national income and serves as a convenient
method of ase4;seing the distribution of the total national prouuction toward
consumption and invtstment channels; (3) it represents the most reliable over-
ail pictur
as to the eirection of Soviet efforts in terms of economic cat
gories ane values; (4) it indicates the eogree of exertion the Soviet Union
is exercising in co bating inflation while speeding up ineustrial expansion
b
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
and military power; (5) it reflects the major sources of th state revenue and
the burthn placed by the economic planning on the population; (6) trade, in-
vestment, banking, monetary ana currency policies only supplement the work of
the budget, which functions as a control ane directive mechanism in the finan-
cial planning; (7) it serves as a clue to the pricing system in the Soviet
Union and to the purchasing power of tLe rubl for the puelic ana to the gov-
rnment.
Methods ot-Einelegallaaatai
The economic policies of the Soviet Union are realized by means of eco-
nomic ane financial planning. The prob1,4a of the method of financial plan-
ning employed in the USSR is quite considerable in scope and reflects it; 41f
best in the Soviet State Budget.
Financial planning is inseparably related to
conomic planning. Informs-
tion concerning financial plans appekrs to be based on economic plans, and,
in other cases, the financial limits of the bueget aeciee the direction of
economic planning.
In the first category are: wages and income taxes, the extent of pro-
ducLion &nu accumulation of inventories of various branches of the economy,
the turnover of goods, the turnover tax, taxes on indiviuuals aria profits and
on state and cooperative enterprises.
In the secone category are: the planned volume of revenue of the buuget;
the financing of various branches of economy; capital investments; expenui-
tures in social ana cultural affairs, puelic health, social security, cost of
administration; military expenditure; Ac.
Planning Agencies
4^
While economic planning is within the competence of the State Planning
Agency and the competent ministries, ruhiseisi planning, reflecteu in th
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Sanitized - De.I.-tn."... ? r?I Arirtrie ""
119%171999190060002-4
State Budget, is within the joint competence of the State Planning Agency,
the People's Ministry of Finance, other appropriate ministries concerned, and
the State Bank -- with their suboreinatee separate and local agialcies.
Planninfor the Fiscal Yeir
The planning for a given fiscal year is bused on the followings (a) tar-
gets set by the Five-Year Plan and (b) directives of the All Union Communist
Party and the central committees of the parties of the republic according
to expected fulfillment of the plan for the fiscal ye4.r.
The fiscal economic plan embraces a broad range of various economic fac-
tors, such as cost of production as compar u to the expenditures the range
of goods to be put into production, the volume anu variety of goods to be
put into production, the requirements of raw an tined mat rial require-
ments for skilled lebor, assessment of the productivity of labor, stockpiling
requirements, reqeiremenLs for imports for bottleneck items or items in short
supply, ana export requirements from import payments or for acquisition of
foreign exchange.
Financial pl nning embraces all aspects of economy, aeminietration, mili-
tary, ana cultural life of the country; for example, agricultural planted
areas of grains and technical crops, harvest and yielu of marketable crops,
animal brooding, construction and
e haniam for agricultural methoes and
Machiee Tractor Stations, prices of produce, gov,s,rnmental r
Industrial finesse
4;
serves, etc.
planning takes into consiueration prouuction targets
cost of production, wages, labor productivity, added investment an mechani-
sation requirements, stockpiling, wholeesle or robes pric4s to gov rnmental
agencies fine to the public, etc.
For trees, the finance planning is concerned hith the volume of turnover
of goods in citiee an in villages through state amu cooperative networks
price policy, turnover tax, the trade network, personnel quotas, etc.
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Saniti
ror cultural affairs, finance planning Lek
00060002-4
s into consieeration the
school network and the quotas of the teachieg staff, e ecU as stueents
in the univreities, in secondary schoale, in technical schools; funds for
wages, scholarships, and equipment; the network of scientific establish-
ments and research institutes (inclueing those for national defense); =etc.
For national defense, the finance planning is concerned with the frame-
work of military organizations for various types of troops, the supply of
armaments, the maintenance of military schools, the supply of uniforms and
foodstuffs, the creation of military reserves, military training, etc.
The expenditures in national uef nee measures envis ipd in the finance
plan by the Ministry of Armed Forces ana Munitions are subdivided according
to the sources of financing. For example, a compulsory retraining of the
officer p rsonnel (three to four months each yearaeitma_exeepaiivrfrom
the basic field of activity) is financed at the expense of various economic
atencieo. The construction of industrial installations of purely military
significance is financed by other ministries in their fields of activity.
Financing of expenditures for the maintenance of a number of res;,a ch insti-
tutions of military significance are also financed by the funes outsiee of
the defense budget. This financial procedure permits artificial reduction
of the scale of military expenditures as shown in the budget.
Control of Fulfillment of the Buuget
The aeministration of the reveeue and expenditure parts of the Budget
is entrusted respectively to the USSR Minister of Finance anu the Ministries
of Finance of the republics anu their local agencies. The progress report
on the Budget is examined monthly and quarterly by the same agencies who
are examining economic planning; I.
. by the following administration
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Saniti8eriWVVJUVVUVO02-4
agencies: the Council of Ministry of the USSR an the Central Committee of
the All Union Communist Party.
Soviet Military Expend.ttures for 19
The Soviet expenditures for military purposes in 1950 are estimated by.
Trade anu Finance Branch to be at least twice the amount announced in the
budget message an disclosed by Soviet statistica (see table on Military
Expenditures). The degree of error in this estimate may be about 10 percent
either way. The financing of military needs by the USSR buuget is diffaseu
throughout varieus branches of the economy, such as coal, petroleum, elec-
tric power, ferrous metallurgical, light metallurgical, chemical, building
material, construction, evietion, shipbuilding, munitions, armaments, heavy,
light, and medium machine building, feods t xtile, and agricultural indus-
tries, as well as Social and Cultural Ministries.
In its structure, the USSR budget differs sharply fro th budgets of
capitaliet countries of the world. As it is more similar in its economic
content to the concept of the national income, its military expenditures
are therefore not comparable in percentagewise with the buegetary expenui-
tures of capitalist nations but should be weighed against national income
figures.
Financial relotions of the USSR with its union republics and with the
Satellites are asea on complete economic subjugation of the latter to the
USSR by means of withdrawing the greater pert of the populations income
into the Soviet State eudeet ene? thus, inLo the Soviet economy for financ-
ing large-scale investments for militery preparedness without the consee
quenees of ueficit, currency, price, or bank credie
The Areas ol Igoranc in the FieLu of Soviet iucet
1. Since 1941iinforw_tion is lacking as to the buagetary allocations
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Sanitized 2R000300060002-4
for investments to the various individual branches of ineustry.
2. Informetion is leceing as to the amount of contributions made to
th military preparedness by the various economic social and cultural organi-
zations.
3. Trade ane Finance Branch has not maee any study of the functions of
republic anu local budgets in the Soviet economy.
4. There is an area of aisagreement as to the purcha-ing power of the
Soviet butecet ruble. Trace and Finance Branch estimates thEt in 1949 the
budgetary ruble velue was about 10 cents and in 195t, about 13 cents. Thes
estimates are based on the following assumptions:
(a) In 1949 the public purchasing power of the Soviet ruble on the
average was about 4 cents. The turnover taxes an roteil profits and ex-
pensos incrased the prices of consumers/ goods to the public on the average
by 150. The procurements by Government and govern zeneal agencies, especially
by the Military .nu useries supporting the Military requirements, were in
e position to buy at or oelow U. cost of proeuc,ion levels.
(b) For 1950, tee purchasing power of the ouagetary ruble probaoly
increased in relation to uollar on the averse by 3t, percent cue to reduc-
tion of producers' prices through an increased inaustriaL efficiency and
reeuction of aholesale oricernd fertly eue to the reduced purchasing power
of dollar.
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(a)
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UNIeT MINICET ? 1941 wad 1950
tin billions of rabies)
1941
(Planned)
19,0
(Actual)
Turnover Tax
9)42
2J6.1
Deductions from Profit
31.7
40.4 (a)
Taxa?, on Interpria4;
(b)
(b)
jtate Iowa
Taxt on Population
8.3
2.0.3
1540
33..o
4Jocial Insurance Funds
10.0
(b)
Other Revenues
.1121,91
Total
'
191.4
1941
(Karol
422.1
1950
(Actual)
National Economy
73.2
157.3 (4)
social and Cultural
3104
116.0
Wens
70.9
62.9
Adelnistration
7.1
1,348
jtat4 Lona
3.4
5.5
Ministry of dtate Security
7.3 (0)
21.0 to)
Other apenditures
Total
203.2
412.7
Budget dUrplus
26.1
9.4
U3 of ustries Lor I
estimated
actual
Industry
LiOw o. r OBI
35.3
Agriculture and Forestry 1.9
Transportation sno. Communication 12.2
Trad and Procurements 0.0
Public Utilities 2.4
70.0
65.5
(b) Not available.
f:/) ? 0'1,1 t,0*1,-; ioL ilea that t!,is item includes reporatiem
u t tpit.id Construction 106.5 billion ruble, plus
29 billion rubles front the accumAxted funds of state enterpri
k ) 4stimated. Last official figures elven in 1937 on Internal zseourity
expenditures.
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Sanitized - ApprovgirTerltel00060002-4
USSR 31.1101tla EXPENATUREts
(in billions of rubles)
A
or Anti=
State Parma and ?oreetry
Tr sportation and Communications
Trade and Preeurement
Co unal Housing
Other
7.9
4,
1941
011
38.3
12.7
19.0
17.6
/950
(Planned)
05.3 (a)
)6.6
o.4
15.0
1.9
9.3
2.5 ke)
7.0
....PWALVIRCO?111011iataMNIVI
Total 73.2
Percent of Total Budget 36
According to a budget ssage of March 19,10 157.3 OWL
ually spent on the financing of hation4,1 sconcmy dwin 1950.
a
Scientific nese
ation
Te 0 Wool.
Laz1Reserve Schools
Public Health and Physical Culture
Assistance to *there
Social insurance
Pensione and AUowanoee
0th r
So ial assistance
Total
AiLeirtton and Justice
Local Administration
Total.
(a) Apparently 2 billion rubles were spent
ct of the earning of induatries.
(b) This is aupplemanted by 2,4 billion rublea from WI tuna of various
economic enterprises.
(c) Mot ,mailahis.
(d) Calculated from e nopio flotes of the dudget Meneag
ke) amated.
1.1
1.4
4.1
3.0
2.6
.7
10.9
1.2
5.6
47.9
7.3
164.4
38.4
bias
126.7
7,9
21.1
tion on caoitol repair
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
USA ANHQUNCLD oaLUSE dUJOET
HE) =WM HIEWOX L;ieNNUITURES
4tt,.
War Mini try
Navy Ministry
Tot 1
(in billions of rubles)
,g_atiitursa
C A's 0 nch
OS or itrial
support of Armed Forces
Materials support provided ta
various ministrie for
Armed Forces 21
Educational and Health appropria-
tions; including scientific
research 22
Security organisaLions performing
military or para-military
functions and services j.dt
16
Total 90
Total Satimated Minter
Sxpanditures Accordi to CIA
58.3
7008
.12,2
04.1
79.3
Law Dar timate
Heavy Industry 42
National Economy
Education
Public Health
Capitol Construction
Total
12
9
Total Astimat?d Military
169 Sxpenditures According
to a Sovi t Detector 18304
Detoradmits the
ty of error from 1U to 15 b
rubles in eaU3iating the amount o
3oviat hidden, military expenditures.
(a) Capitol Construction ler 1950
a achadul u at 13506 anion rubles,
106.5 billion from the tate Budge
end the bal noe from the funds of
n4 rprises whose profits were est'
mated t 70 billion rubies for 1950
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San itizasighpfikerifarm?eism: ,ftReu,pu q00300060002-4
1940 1941
Budget Plan Budget Plan P d
itures 1790913 216,052
1,944
cum Coos lel 1,745
c Poser and Power Station 669
Ferrous Metallurgical Cm ariat 1,139
Light Metallurgical Commissariat 1,0397
Chemical C so Kat 524
Building Materials C issariat 289
Construction Commissariat 540
Aviation Commicu3ariat 2,127
Shipbuilding C asariat 2,903
Munition Commissariat 81
A ta Commissariat 1,050
Heavy Machine Building Commissariat 393
Medium Machine Building C ssariat 313
neneral Machine Building Commisaariat 97
chary Commi sariat 318
at anu Dairy Cc eariat 507
Food C ssariat 414
Textile C ssariat 763
Light Indu try Co eeri& 219
Lumbar C mast 1,780
Cellulose Paper C e ri.t ...
Local Industry Commissariat 113
Local Fuel Industry Commisaariat 236
Cinemotogo uommittee 61
Various KMVD Construction Work 3,440
Sulphuric Acid & flyurolisis A Iniatraden 49
War Conotruction Administration 291
Cool* Affairs Committee .....ita
Total Financing Induatry
25,429
2,166
3,05
20955
1,852
2,092
207$6
2,730
1,971
10610
995
1,,176
385
369
4
110
50
3A54
1,310
10000
1,605
1,710
1,190
1,036
1,427
1,190
641
$46
226
224,
205
WO
507
149
581
296
697
177
567
170
2,075
32
422
140
320
62
118
165
59
65
6
260
66
57
223
80
...2411
36,311
31,076
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
FINANCE
SOVIET ORBIT
What N Could Find Out Thro
-th r Stud; on the Soviet Orbit
(Estimated Time quired -- 1 Analyst4Year5)
1. The extent that investment appropriations are utilized for capital
goods and consumer& goods industries.
2. The ext
nt that budg tary appropriations for Economy, Social and
Cultural categories are used for building up war economy.
3. Number of commercial and investment institution
4. Volume and velocity of long-term and short-term credit.
5. Volume of currency in circulation.
6. Volume of savings deposits.
7. Foreign exchange and gold holdings and movem in and through
international channels.
hoWiftgi
8. Utilization and purpose of gold and foreign xchange4 in th
Western world.
9. Soviet Orbit gold production and gold reserves.
10. Soviet Orbit utilization of international financial mechanism
and money markets for its objective and advantages:
(a) for circumventing trade controls;
(b) for financing Communist agents* activities abroad;
(c) for speculating in black markets of dollars ana gold;
(u) hiding Soviet Orbit foreign exchange in the Western cousuriea
for strategic purpoes;
(e) financial activities and objectives of CEMA.
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-- nnaglonnnlnnnm002-4
Sanitized - Approved rev Mils. ? r?IA Dr1137At
Circumvention and Violation of Western ee:ort Controls b he 5ovit Union
in Oruer to Ubtain Stra e ic MA
ncluded on the Control List
1. The following conclusions on this subject can be urawn from an
analysis of the available information:
a. It is difficult to obtain all the available information on
the subject through the OCD Library, as the present procedure is not
satisfactory for efficient exploitation. (See "Research on Transship-
ments of Strategic Materials to the Soviet Union" for a discussion of
this problee.)
b. The information on this subject is generally not useful for
quantitative analysis. "Industrial diamonds are being smuggled in large
euantities" is a good example of the type of reports most freewntly
encountered.
(1) Some of the reporting gives fact and figures, out these
are fragmentary and do not give an adequate basis for any estimate of the
gross quantities involved for any given commodity or by total values.
(2) In some instances, it woulu be possible to make fairly
accurate estimate of the minimum flow of commodities through intensive
study of traue figures with particular attention to changes from previous
years. A good example of this eouln be a stuey of the shift of thT, flow
of industrial eiamonds from Belgium to the Soviet Union. Oheras pre-
viously most of the shipments ..ere direct, presently the flow is through
Switzerlanu.
(3) The use of "rree I rts" and transit traue privileges
makes an eeequLte total estimete, ev
n unuer th
best of circumstances,
impossible. The most thet can be. hoped for is a statement that "it is
known thet this figure represents the minimum emount of this material
Sanitized - Approved For Releapr. CIA-RDP75-00662R000300060002-4
Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
procured by the Soviet Union for the period."
c. The substance of the information examined is that the Sovi
Union is not unduly active in the circumvention or violation of Western
export controls. There are, of course, such items as industrial di
occasionally bearings, prototypes, and specific limitld procur
sits.
onus:
The bulk of the activity in the field of evasion of Western export con-
trols, however, is conducted by the Satellit4s. Most of the material so
obtained is incorporated into products processed or manufactured by th
Satellites for shipm4nt to the USSR or for expansion of industrial plants.
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Sanitized - Approved For Release : CIA-RDP75-006624
a, TZS
xZerenoe 1i
which eh '4
that thi
which con
dereble w
been d
outs in 00Djimetion 1Nith the
to be u ed tnslaking run
It should be noted
liar and on
neint Agenrthwingthe
pact two to three years,
b, tape received contained 111 re
quested that the 1ibrat7 pel all of t
of dooments f"anss the tape was n rally not feasib2c d
sufficient inforcati
2. b
a. It wee abont tow to five working hours after first re-
questing the doomsa thatthe first batch wee available to ne
=1 the searchers
could go through t
b, The afaetiv
hw he fonewi
pull subsequent batches faster than
ltbraw
as a d o
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Sanitized Clnal....."na ? ('IA cirkertc AAG ?ICI Ar 111?2 1100600024
fourn 2t wo
dtplioate for
from this li t of 204
law414 eearth for the deem
eha ...out records bao1oa awt
mod that in order to get th 20 which
neeeea to ; iibazy request fors, in
d a looted gotz
3
a,
a
7
s' of th run
, the lib
the follow-
ta tehIsere pulled ty the library.
ver,
and tran
tion and n
of shich had
ad at
by the Svteis, ewa
, He feat
3 lore inquiries for g
knows.
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Sanitized - Approved77:7:750641fitilik)300060002-4
3
not Mu
part of the library to
vddoh
eoiae into the igenv.
and the aotivtiom
to
bin
problem at hand
cards (by tranthg
'what documents
shovad be ware
in the selection of
This am:17 t kLte
sobjectl but to extra
broader ceding emcee
ted that
acting) to
d from the
nee
honid be
thy/
the coding system
7%
U ie
&e In arbor to provIdo =Prow= lautiNgt
Irde thOSONLIVOS0
t additional informs
Sanitized - Approved For Release:
available on this
d r vire a
bly,? an UM
-RDP75-00662R000300060002-4
A rri.^Isetri Cett? DalcAnCet ? r1A_RnP7s_nnRs9R000300060002-4
4 -
of refers
uldbe uaettO
el zy?doeieits1'jj?h ave
CO at all,Gable
ethers an net coded at all, Thi
A
eabl Watch qentr contain valuable ifetallStills
Sanitized - Approved For ReleasOCIA-RDP75-00662R000300060002-4
Sanitized AmmmmimmTM.MMWMI.ICM.MaTeogeleetiliteii446?6. - 0002-4
RESEARCH ON TRANSSHIPMENT OF STRATEGIC MATERIALS TO RUMANIA
1. The lack of substantive material available OA th subject of
"Transshipment of Strategic Materials to the Sovi t Union" MOMS
dealing with that subject) made it evident that a true teat of th
Library facilities in relation to the general topic of tranashipm atm
would have to be don through a control problem. Personal kno ledge of
transshipment information available led to th choice of Rumanian pro-
curements through Switzerland for this purpose. The total number of
referencesturn d up as a result of a run on this subject, for 1950, was
seven.
2. This result was obviously inae quate. The problem was distuseed
with the reference librarianspand a further run was ma.ie. Knowing that
a great deal of trade activity in this field has been in bearings, a run
was made covering all references to bearings, naving to .to with Rumania.
The run was broken down by related areas: Switzerland first, Italy second,
all others, and lastly all cards dealing with Rumanian bearings which had
no related area code. This run, as nearly as can be determined at this
time, covered all the information on the subject which has come into this
Agency during the period covered. The specific results of the run which
turned up 67 references, were:
32 refer noes involving Rumania with Switzerland as the related
area; two of which were not related to the problem.
8 r ferences involving Rumania with Italy s the related area;
four of which were not related to the problem.
7 references involving Rumania with eli other areas; four of
which were not related to the probl
20 references which ha e no related area code; three of which
related to the problem.
ere
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Sanitized - Apprfflrffl.IPI'MERNMFONIMINalhrr~1W440300060002-4
3. There are several conclusions which can be drawn from this con-
trolled study:
a. Knowledge of the specific information available prov d
necessary to extract one largo section of the available material. A
person not familiar with the subject would find it necessary to code
a run for all commodities, for Rumania, with Switzerland as the related
area. This would involve tremendous machine operation.
b. An analysis of the Secoxio run shows that on the specific,
objective type coding, the ut ren_of rror is within reasonable limits,
as opposed to the complete inadequacy of the first run. This indicat a
that the fault Use not with the OCD coding analysts, but with tht code
iteelf.
c. The concept of "transshipment" is a false basis for objec-
tive coding by OCD analysts. A subjective, rather than an objective,
approach is required to arrive at satisfactory use of this code, and
such can only be done by an analyst familiar with the "transshipment"
problem.
d. A further eifficulty which is relevant to the present oie-
cussion was brought out in a conversation with
regarding
25X1A9a
the coding of such documents as th "Annual Economic Survey" from Argen-
tina. Theme were coded so as to include Argentinian trade, and not with
related areas. As a result of our conversation she agreed to use the
general code for the "Soviet Orbit" as a related area, if any of the
Orbit countries were concerned. This still means, however, that to un-
cover all the available information about, say, Czecho lovakian trade,
it would be necessary to make a run for all the countries of the world
with "the soviet Orbit" as well as Czechoslovakia, for a relat
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Sanitized - Ap4-r1I rtr ? r" A 17) r":" A"'""""10300060002-4
It would then be necessary to have the Library pull thousands of docu-
ments and search them for the bits of information necessary to draw up
detailed trade statistics for Czechoslovakia. The wqpitude of such a
job, and the waste effort that would go into it, would be enormous.
4. To correct the difficulties stated above, there are thalter-
native methods, which are:
a. To truly overhaul the coding system of OCD, which appears
to have been concAved in sin.
(1) likamination of the subject codes shows that the sub-
jective approach was used throughout. This has resulted in a bvilY
weightea index. The usefulness of this index is limited to two functions.
(a) A general inuex which will, however clumsily, turn
up most of the documents which have been received by the Agency. The
work necessary to uncover all the relevant material, however, is in many
cases out of proportion to the information which would b so gained.
(b) A subject index for the individual analysts, a a
supplement to, or substitute for, their personal files ane cards. .
(2) A larger portion of the cards should be used for machine
coding (punching) and less for textual coding (extracting and abstract-
ing). This would permit a reorganization of th code on purely objective
lines, with sufficient cross-indexing available on the cards to permit
selection of subjects on a much broader basis than at present. This
would also make the selection of material less depeneent upon transitory
interests, as the material could be pulled from o many more points of
view.
(3) The overhauling of the coding system should be done by
an expert in that field and not by the variow branches, divisions,
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Sanitized - Approved i-or Keiease . uik-Kurto-uuoocrw00300060002-4
departments and agencies as their inter t in res nt i ortant prob-
lams would inevitably sway their judge
(4) The pr_neipal disadvantages of this remedy are the physi
cal &nu administrative problems involved in a switch-over.
o. To have the URR analysts keep their Mee in th? Library,
by doing the, extracting, abstracting, and coding in detail would insure
the fuleest possible coding for the intellofax system under present con-
ditions. It woule admittedly tn, incomplete, and th emphasis would be
on th Orbit countries. It wole? however, reduce materially the problems
mentioned above related to subjective type coding, ane general documents
which are coded, on an over-all basis. As a method of keeping the ana-
lysts files, the advan,ages of this systeem are:
(1) The files are permanent and more r wetly available to
other analysts of CIA nu other IAC agencies.
(2) The degree of cross-indexing is much higher, and, the
fore, the files are much more useful than the usuel branch file system.
(3) It is quicker than the old ORE cyst
The disadvantages of this system would be that:
(1) It would take about two hours of the analysts' time p
day (less, however, than the prAtient system) to handle incoming mail.
(2) The coding, abstracting anu extracting woule still b
primarily subjective.
C. TO set up a team of abstracting an extracting experts in
OCD or ORR and make them responsibl
for the detailed analysis of all
incoming traffic. This eould amount to a stall-scale reproduction of
ORR for intellofax purpoees. The main advantaee of this system would
WWI
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
be:
(1) It would release the analyst from this kind of work.
(2) It would centralize the coding sufficiently to reduce
the duplications anu he hiatuses which would inevitably result from
ORR analyst coding.
The main disadvantages of this type of organization is:
(1) The personnel problem which would probably result from
having people doing nothing but that one type of work all day, every day.
5. Conclusions.
a. The entire code system should be overhau detailed
coding done by OCD.
b. Unless and until this is one, the beet use that can be made
of the Library coding system is to LABS the intellofax faciliti a as ana-
lysts files and as a general index to Icep the loss of incoming informa-
tion to a minimum.
c. The on analysts are the persona best able: and,at the
present time, the only persons able, to do this job. It might be feas-
ible to organize extracting, abstracting, ana coding teams a suggested
above, but it would probably be more effici
nt to provide the same numb r
of additional personnel to the functional branches.
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
gen
This would Unravel
abilit.r to
Led that th
ni) b
point of view of the nee
of.
1. Knowledge of the TO
Tents for the co no reed are s ad t
2. Similar knodedge for
3.
of longt
itno
tale
its meaning in conaodity
alma intercourse of the orzcorn
L. Knowledge of
bra ng efteats, vol
As adjuncts to thi
persons and institutions ii
and pattern o
of pai nt th
d of transfer future
bocty of know
v do effect
areas, and varto other metro:aim and
available from the compl tad at
In addition for odeguat p
formation, not actually within
tnibj ot should be vailabl
covarativ
economy, v
tor mesas and dietributiv
t and
d
'tonally;
of th
Advare inter-
CEE
information coneerning
othertona noworbit
rig time should be
the
Id include oousativ coat
data on wequirarite of the coined
national ino ta both, f
d be available veld ta
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Sanitized - 4noroved For Release : CIA-RDP75-00662R000300060002-4
on various production and conation
would appear that foreign trade would be studied
and that no complete af. Zysis of its ioe to the comity of the
United States can be made, Were info
in lesser degree without t ntirety of this
canoe of results is expotentialy matiplied
Jrais can be obtained
anal but the signifi
,vi d inconjwastiims
wIth it. Collection of the materials nece eary to p,
iawad study falls
nt such a fin
into two c to ri which Ia cone rtcd
with the maw t of goode and that -which is concerned with the methods of
payment and to other financial tt re. Re the move nt of goods, the
assembling of the data for the study falls tneraUy into two categorie
The first r-lates to the time prior to the pre-Communist co periods and
currant trade with Western. Urope, The second let to intormorbit trade.
Information rally en be a
and current weetern Um Prinery eoa
=racy of the s*
ernmental statistic
as fonmes
varies kr country
o"
4 will b
litted
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
both are reported. In other a trade th is not dot
modity breakdolos al ,4 vary and are not as detailed ae are noeded by thi
office.
b. The reporting countries generally report iorta at cif
prices and exports at fob prices, This results in a canctUdon rein
statistics of etatee 1th uhich a concerned y- be overstated re
exports and understted re imports..
o- Tranelt Tz'aA statistiosa t rag ti ioh
uniftra throughout the world, do not require ooli AAim of
al passing thro &moo a ge part of trade in eirtain
ver roperteds to wit. G
ports of a few thousand
tone of copper con igned to tngary would probably be list din the ether
oeuntly oat
Gdl tistio
uhidh the copper amid woeld not require
Upset or export fig and t nsit traffic
shi
neverbe reported through
fro parts VA
eluded in
d.
in
ee
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Sanitized - Aprn?m....o.M.M.IMISTENTEIBIMPIRIBlia?Werae000300060002-4
4
listed as prima so . Theas three prime itatione to the et
o
of pre-Comenvaist coups and present 'bra vith the msst own be overso
to a degre by theuse of the following a-*ondey eonrce.The o
soursP will also a Tve to avec the accuraoy of the
State. Dperbnt divot:heat Re hi
or dnzatorinl, them doo nts are derived fr
so
that pr dee the data for the official publications, They are abie
ho ors to achieve certain reporterdireotedprimerily to trade with t
oointriee of conoern rather than to the trade of the reporting country
saoond general tip of Stet dominants of considerable value is the
trade agre nt report mach allov in ea *caparison bet snow
neo achievement and plux tell ae indiaa as of val
of goods expected to move, Limitations of te documents,
agreement. is often unrealistic) that the ag eanerite often agr re to
allow trade rather than contraotas and that the aiailability of information
contained ie s in many aaeee insuffioient.
A third general typo of document constituting a sec
Bourse of considerable value is iD stat os goods is 25X1X4
vol
transit. flde allo
transit trade
an esti to of
ion oft extent of the unoov red
check on the pgreee of thy. tradt agreement and possibly
total movement of goods in particular oases.
A fourth naval type of aeconry souro of great
in covering the limit on th prime ecuree concerning &es and unreported
trade is the
P5r
25X1X4
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25X1X4gs
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25X1X4
SiiUe ropo
nd of shipments fromviestarn Europe
fin the holes in the
Other
era ort statistic
let in Western
be t blosk to
provide useful but the above
five arbitrary oiassifieations constitute the be
segment of t whole
ads Jour
As of thi
of this
le are
partly amenable within th ? agency. TLIie office, in oonjunotion with 0C11,
is presently attting to determine exactly whit% are and are not avail
able to this: office. In addition. sins the journals under ORZ
ordered and routed on a geogrephie railer than functional b is
allocation of the material to fit the pre t 0/Uft etruoture is a oonsider-
able ta k. ot determination of the. availability 11 apparently be
impossible prior to the re-est bliahmont of these chennole of diatx'ibntion.
There is no known re son known-to iralf precluding the vafl*bIlttj of
thace documents to this Branch within CIA except the current dministra?ive
problems -- covberned with the routing of and depository for doe nts.
The Office of Inter tional Trade Department et Coac 1a the
most neata file on these doe nts known to this office, ibis office
also contains sections devoted exclusively to the utIliwiation of the docu-
ments. CIA cannot, unfortu t1 place comple reliance on these sections
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
ere pointed pri
a
intelligenoe coll caon. llonever, as a result of
for info tion on Western European Trade ivith EE
been produced in the last year Joh are a tio
her than
papers ha
s trad
ure
officially presented, The papers ars ,rodna from the point of vi of
the stern reporting nation rather than from the P2 point of tew and
the papers involve considerable consumption of thai in job of al rioal
nature to put it in a form useful to this office. In addition, the produc-
tion of thee tables is neither regular nor pro and depends,it appears
upon continued Gong re 'sional interest,
Complete utilisation of these reports
possible, because a limited personnel.
the material referring to EE from one of thhe
function of the volume of trete of the count
the country vdth FS, of the weights and 19108.61,11,38 and the nnnetany system
office is probably isr
ary to extract
of courses a
concerned and the details of the rting doo That of th. UN is
pz'obab27 the one requiring the grsmtaet.znount of t to handle the
it be in Tngliah.. C
ably require out
-probably fall off to less then S
tAgaisamonts sexe to be oo
on
for
t:utSare based o Mug a table si
not include time neoessary to co uts a at
iue would probr-
req red mold
(aia
totals from the IC totals) Certain work of this nature has been
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25X1A9a
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myself for both Poaid end ihingay b in ooueid d una
Resole calms I oon erred with d than
f the no nahott e
the tiros, (b) no clerical check of the aocura
in
been made. In additiono/the etuiee nndefor specific proeote
tinal obi tion 4yed %ere not oonstrun d from th point of et
b7
oy at
r4k0tvoe
ulnae
ha,
C rtain of this week has al been done by h
a of Cow-
meroe /adios. is bing oontempla d. For a report on th po sibility of
having preliminary utilisation of thd.e source handled outside CIA see th
froii on the sObject.
In s opinions the i2. ufie of this atsrinl woLd be to construct
tables
ense of trends
oild be
ilisation of
necessary for oomparison: and =sly i
policy. C *Illation of thea
of the a ammo 1 thin i
ion of po
in existenoe. The
f value of this trade'
ideally should moo
dons the extent of el
tion cannot be determined nd the function of the sec
die
fill in the blanks., In view of the blanks in our information cones
facilitiee and infcavation available (aee on
Dept Co mm4 and OM
25X1A9a submitted tta it is impossible to nhe a reel estinst on the
time necessary to compdle the deeired table. A miasmal of three months
1935
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per country ld probablr be requred prsstng no e erioalhelp for
the analyst so charged, complete freedom from all other
responsibilities. This is nothing more than guess Aocurafey woubi de
pend on among other things, the vailabiiity of studies in the early
thirties lied& may or may not pnwi considerable help if they exi t
The net result using this sorce alene, should be knowledge on the
subjeot almost as cospIete as that available to the Poli s or the Hungarian
There should be only &w hoexisting in the documents concerned with
periods prior to about 194.5. Information not so derived probably
collected. From this p riod to be considerabl cheek n d. be ma by
the analyst concerned in reference to the use of the secondeiy t
Use of the secondary material would involve determination of d s rad
co di s, co Dation of tea agree nt statietio, checkleg an
reported, figure by u f geodseinetransit report filling in blanks
existing through broad c t gerylreporting in the offiOizl journal by
use of the State reporte on shipments of licensed or oontrolled item-
and relating reports of arrivals, departures, and contract.s for good
Unfortunately
bec1 use of the flexible mature of foz'ei the
second part of the nformation relating to the VOIR
aeeembl d prior to ccapl to understanding of the above sat
the post-0o e coup tra intra-orbit must also be
moor. This will be co idrabr more time conauffing? but whou3
be
possible within reasonable limits. To ome extent, certain of this mork
has been done.
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Sanitized - Approved Fo'................MmerrerTIMITIM0791150MR000300060002-4
9
The px'oo&e rid material used will besieebet
detereined trad vdAll the vests this vill be checked again
eta nt of total trade and percentage thereof tth the vest. Am
eo reasonable degree of correlation between the toe the commodities
reoeived from the west will be subtracted from the total commodity re
ceipt (when sudh is available), Following this, b7 use of various docu-
mentsand methods stay coverts the difference between trade and trade
with the vest will allocated to varies satellite trading partner
The USSR material section is elsewhere covered. Sources nee
satiefeetoey ewmp time of this section of the project are p
reporte FDD publications of official but genemtly most Inc
lit7 figure FRIO reports which g neral2er contain tre
information but contains those fee ut on Which the thole process must
eventually co to re t; and State Department summarie and tseb
reports, These last are not so =eel as could be possible, because of the
general convinction on the part of State that these fra
announoe rite In unrelated percenta are useless
The above presentation is highly oversimplified and pre ants the
vie of an easily achieved objective. The picture is tar more compli
ceded, but eumeseful compilation of tra statistics is po Me. It
should be noted that , this pidure is oo leted in conjunction with the
rest of the desired compilations, eaoh commie announoenents percent or
Index vie will have greater and greater msaning nd that the task should
relativ ly asier ono the basic data is a de The minium time
required would be an ad.titional 3 to 6 months per each orbit country,
al
92/
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
I. Material which may be of u
so urea consist of the following:
bLbed
00-Wla
00.41.1s Which are atid1av to the faniiliar 0
they are limited in di. VS gra Ox
00-7 mbish are similar to th familiar 00.W ewe
the terial cozro'e4 hae Boat little 1 interest that
copies produced, one of rwbict gos to the
vaster of the translation and the other to 00D. Library.
FDD summari a these Consist of t doumente abztraot
in a foreiconvenient for clipping and appear in ehat appears
to be nthly intervals.
FDD translations - full translations
ofoonsiderable 1 ngth? ezale of mach is the Hungian 13u
for 1950.
These .docinient should all be available to -0 -
Library facilities. A possible loophole
UseT
'which
below
d from FDD
COD
coneervda
teal publi d by FDD in th period before -0CD Hello:en
Canter was organic ad Into the pre ? nt library
ion a *Consolidated Surtr " listing material
MD on a monthly basis is also ptthlished,
93-
Im addi
d by
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S a nitized milpiririwmINFolimRelwm1101,441101^14MOON011011600060002-4
b. The second type of
wed
source from which
in part by S.D.8 anti uurs
tines
other
for
d.
re general:4 of ties
ar information eppent
Lable from
a re coil stied by the
tveyed in whole or
nteflien intaUa
of olippi
d in pre
$ and
no it coordinated intelligence repeek uhich
are pet to be aoaaroa3r Booed andprepa by repatabI re
search inetituttene snob a the Central St tietlee Amp he
X101 institute. As the e documents re r. to piOai iniiatio
and to preduation fort let Unions in the opinion of IUDs thay
areatily been fully ited. The material is available to
this Oeo in the IR fil A refre to other phase of the
don
that
ncluding tde and finance
to be eotedof this of",
e If arthin
ba been
reports are apparenUy
These LmUar to typo of report
covered mgy be. therefores
nd for the time period
In the opinion of ntis
a statamsnt that *all source been lise& I not urate
in the perio4 of approxteetely 2930 to 193 prior to utilisation of
t Bourses. Non of the material relating to th sateiltes ha
been nor than very eummargy catalogued.
c. The third type of infer tion ohiCh my be available to
thin Off io through MD is material uhich their tranalatoret have
es ed over through Ith. r insufficient priority for eabl,y at
the given times lack of knouledge that MD consumers re int
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Sanitized - Approved Forimmimim;m1ISWU.'aaAaUiagigAA=aaa"60002-4
3
tasted, or beoause of volu
battles of FDD b
of such material
requests to the persons
idi probably fall a large number of Soviet books which have been
Wed at about the mat of 250/ month sinoe 1946
on souro
upon
ouAT
ated tt in addition to notifying CCD refer
d translators of b
rid t informed of blanks in the project.
done, POD personnel be able to help in the following
a, clearing beeklo of anr material raiment to the project;
b. assisting with bibliographic information)
c. utilising per nal files of untapped or untranslats
It is also suggested that as soon as it be dretermined what informa-
tion for the period betzsen about 1930 and 1943 is desired and, not van
able, di *time be Oxen PDD for specific utilisation of the Ger
Doe nV Center material. Personnel from this offie will ap rently
be ne d d if only for di tion in thi proj
It is also s sted t t this offio
tranagation of irmoaring rate
9 I
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Sanitized For Release : CIA-RDP75-00662R000300060002-4
4
Extent of Info Currently eel by FDD:
As of this date FDD reCeives a large of documen
newspapers and periodicals fror the orbit. The exact extent is present4r
beyond the ken of any given person. Th. DD is corr nt1,7 gag d
in listing its receipts together with the made of the document which
list- is supposedly to be revised every six months. This would be of
considerable help to the gInventogr.
Within the seeki SO DBIs in to
II be routed to
OCD for cataloguing, and to FDD for an abstraction of about 250
The document will then be returned to the library wb it
will be available to those interest is aroused by the circulat,ed
b tract
qa
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
Trade Statistical Information Available at the
25X1A9a
1. On April 3, IIRIgged Mee. Mary D. Keyserling, Director of the
Division of International Economies Analysis, Office of International Trade,
Department of C? res. The purpose of the visit was to discover; (1) What
trade ftterialR are vailable within the Department of Comer in raw,
finished, and semi-finished form; and (2) th possible use which coed b
by us. of Department of Commerce facilities for the acquisition of avert trade
information in finished and semi-finiehed form.
2. The first, the inventoryA pheseff this probl is now being accompli
for us Mre. Key rling. Within the next we we will be suppli d with the
following information regarding the present avai1.bility of trade statistics
within the Department of Cooe
a. What trade manuals are at present in the Department, by oonntry
for all the countries of the world, for the years l93&37..38, and 1946 to
The information tdU bleu
(1) Wher the pub
(2) Whether they include quantity and vluo.
(A) Whether they are by commoditors or by trade totals.
b. The finished and aacni4injshd work which has been done by the
Department of Comoros through the use of these trade publieati
tede
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Arrrnwari For Release : CIA-RDP75-00662R000300060002-4
This information nill includes
a. The type of report; i.e., finished, , is d4 works/ eta.
b. The subject of the report, includi as eov d.
c. The period covered by the report.
d. The form of the report.
e. Present location of the information if in file; or source fron
-which it can be obtained if in published form.
3. Finel determination of th second phe of this investigation future
t upo (1) birth tut,
extact demands would be; and (2)
(see para. 4),. on previous
. Kemerling hovever, it is
possible to submit a preliminary estimate of the situation and the poseibilitie
a. At the pros t time the Division of international Icanonic Analysis
is coneolidati.g the six areas trade statistics into on eetral office,
Although this is not completed as yet, it is und r way and is a fora esbl
situation. The re ukte of this consolidation would be to:
(1) Centralise the trade statistics publications in olibrary,
which would probably be the t complete collection of su?h material in the
United States,
usefullneee of the
and discussion in o
a capabilities estima
partraeat of
to determine
from Mr , Key
experience, and my short conversation
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
(2) Standardize procedures for th
reooneiia figures,maintaining records and
(3) Permit concentration, of the b
the Division for this kind of work, both toco
to aid those
from ide th
b. . Keyseriing expressed the view that en an cffiee
provide the various Governmental Agencies heroic overt trade
The inforimMAWe would pro b2y be more aecrurate than that now use4
pres t the various Agencies aoh do their town
and are not properly eclaipped for au& a j
others) mould be epeeted to provide fends to the D
for such additional personnel might be n d to
to a
Agenele
I agree ompletely with this viewpoint, feel that th
Co?re head be deoWtated as the f for all basis
vailable from overt source and that au* funds as are
evellable. Sueh expenditure would be by far the
-tends for ther-purpsee-et Obtaining asoeptabla o
c. To exploit the availAble w aterial. with
trade r the years set forth
a year, an a fairly eh 4ve basis.. (Th
of additional personnel d aboire4
4. In aecordance with our conversations a writt
information referred to in paragraph n20 above is be
Mrs. Keyserling
vrt;
Liaison OCD. This letter also con
Mdetil
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Sanitize pprov
A ? ?
0002-4
request for an infor 1 comment directed at the new organisation of her
Divisions and its capabilities to service other Governnental Agencies
A copy of the draft letter is enclosed.
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Sanitized - Approved For Release : CIA-RDP75-00662R000300060002-4
1. In 01E/DRS are maintained three txde a eeent fiieai Nast-
lest; East-East; and Weit1eet, In additionot 0 files DO
0 kept giving
e to
the documents from -which the iafoVrnEtiOfl WAS obtained. A
ter is al o intai dl on an u tot basis, f
agreements, This oonstitntse an annotated index
summary of the trade agree situation of all the Orbtt
inteined4 an up-to-date card file of t.
the general oommodity structure, commitments,
2. 02E5
is new eeed as the baso format for
reports. Periodic revisions bring the tabl
s the most recent endeavors Orbit trade egression until
about 29 January 1951
3. It appea that the 3
tai current and c urat file
U A po
do ageemanta and die emirate
period report on this subj at, There is not sufficient
ever # to keep current infrn.iiation an act 1detailed trad
to make regular
of reports of a net
/03
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L b
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d to Albania Bs1aria. and aumania
1. Library tapes requested 31 March and received 4 April resulted
in 195 references concerning the following countries by subject;
a. Albania
15 references covering all CominfOrm credits, foreign exchange
holdings, currency, black market rates, credit structure,
foreign and internal trade.
b. Bulgaria
37 references re intra-Orbit tree
9 referT,nc s re imports of electric power equipment and
railroad equipment;
12 references r
currency, banking, financial policy, partici
pation in CENA credits to Albania and receipts of credits
from other CEMA partners;
4 references re tobacco exports by aestination.
c. Rumania
39 references re intra-Orbit trad
84 references re petroleum exports;
5 references re trade 4th Argentina.
2. While time aid not permit calling for refer need material, par-
tial analysis of the tapes by country anu by subject r
veal the following:
a. Practically no information is available concerning Albanian
tree an finance.
Of the fifteen references covering both fields, eight were
from CIA sources of which three were CIA Weeklies and one I. One ;source
was a study of Albanian finances made by the Treasury ana published in
1944. Another was the Army's "Civil Affairs Handbook", published
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25X1X4
Sanitized - Appr#i1l?' DI#'ir- . f'IA r"""` 996661:WWWW60002-4
22 De r 194j.
b. There is virtually no informeeion eeietent on Bulgarian intra-
erbit tradeof which thirty-one of the tnirtyeseven referenced mere moetly
sekttered111111111111111reports usus114 cov ring trade with country
only with as many products.
Bulgerian currency ane blanking e covered in twelve reports
dating from 194e terough early 1951.
The imeortetion of electric power euipment 440 not covered
in two of the twelve references but appeared as electric power, per se.
Rellroad equipment import was referenced only incidentally or us part of
"the plan".
Iobeeee exports, tho principal cuport product of Belgarie,
appeared four Limb OnCO in each trade agreement eith Zovzone Germany
and the r,oviee Union
25X1X4
There was one port study by Navy
period from 1947 to 17 Vey 1949.
c. Of thu five referencee to Rumeno-ArgeLtine trude, fOur were
by CIA, of ehich three were 00-3gs.
Rumanian letra-urbit treae produced nineteen refer awes to
1950, uf which thirteen were CIA reports The total of 25X1X4
thirty-nine references covers the period 3.946 to early 1951. Tmae is
scattered by spot reports or indirectly from Lraang partner ,;ourees.
*bile SMO reports carry various stetieticee Rumanian pet?
roleum exports are coverea in only thirty-one of the eigOey-four refer-
ences, Ports, ineestrial elle port activities, personnel, ieliiin Bulle-
tin?, joviet intentions, tn.:rims economic situations, as well as seortages,
in und out of Rumenie? negotietione for equipemnt? an tree? agreements
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covering the 25X1X4
are all referenced as petroleum export from 1943 through 19
ing three 194 studies and one ORE and ow IM in 1949.
3. Summary of content relative to trade and financ
0002-4
ud?
n the Balkans.
a. There is little anu inadequate reporting on intra?Orbit trade
and foreign and domestic finance.
b. Th re is little and incomplet cov age of above subjects
filed in OCD Library.
c. Documents are incompletely coded, in some cases incorrectly
coded for specified subjects, ana in other camas not coded at all.
4. Reasons and probable reasons for incomplete information.
a. Answers to specific requirements are sent directly to reques?
tor and not further diss*minated 25X1X4
b. In the past have not b en intellofaxed; some subjects?,,
tr,
111111111!
such as CEA have just been assigned a coee number; and the coding system
1,065041,ft
has not been in operatiou long enough to cover all sources. sfa,ao440.//P
c. In this particular case, the information was grossly lacking 25X1X4
because the requestor eid not sup?ly enough information and the librarian
did not cross?reference enough,
d. Some cards w
re out of place for particular tapes due to
being used in other tap s concurrently.
5. Specific gaps in information.
a. Rumanian press reports.
b. Peripheral reports.
c. URE's and IMIspaccounting for a large percentage of a tap
rev al that more informaAon is available.
6. auggestiona.
a. More complete and better cocaina of information relative to
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/06
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trade and finance, per se.
b. Direct routing of all documents to th Library for g
coding immediately upon receipt by th
series.
Agency.
c. A follow-up on documents to see whether there is a continuous
d. Answers to specific requirements should be, at least gen
rally, coded.
e. General documents require more coding, or suggest a revision
of the present code.
7. A follow-up of the information concerning the same subjects has
been requested of uCD Library to cev4r the sources that u
25X1X4 the original tapes. These are to include specifically:
re missing from
b. Plans, per as, in relation to finance of all countries.
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Sanitized -Approved For Release : CIA-RDP75-00662R000300060002-4
TOI
FROM Trade and Ptntno Brnah, OS
sUBJEGIo Draft Let
of
I* Mat fatU6
request is
2? Soares of Materials law/nation*
a, t troAie ma
Goseseros#
by evatatm. for
1936-37..38# and 1946 to date,
(1) 111
(2)
(3) tbether
1951 t to
25X1A9a
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SURVEY OF INFORMATION
ON
USSR FOREIGN TRADE AND FINANCE IN 1950
W TH
EVALUATION OF FACILITIES AND SOURCES
AND RF COMMENDATION
Sanitized - Approved For Release:
CIA-RDP75-00662R000300060002-4