SATELLITE COMMITTEE

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000200030003-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 9, 2016
• Document Release Date: July 31, 2000
• Sequence Number: 3
• Publication Date: July 31, 1957
• Content Type: REPORT

Approved For Release 2000/08/22 :CIA-RDP61 S00527A000200030003-0
Satellite Cgmn~.ttee
Services Pivisiosi
At its meeting of 1? July the Committee discussed the possible
ramifications for the Satellites of the current Soviet internal reor?
ganizationo It was pointed out that official reports from Last Germany
note that this country is following, in briea', the Soviet decentralizaQ
lion progr~n, It is probable, however, that Fast Gex~nan officials are
merely carrying out their earlier ecaananic reox~,anization, and a~-e not
plarmin? any wholesale decentralization,
25X1A9a S/Tr/FE, addressed the Committee on 21.R July 3.957
cn a recent paper of his intit3.ed "Current Forei~ Exchange Problems
of the #uropean `~at,ellitese" The minimum trade avid shipping deficit
of the Satell~.?~es *~rith k~estern countries during l~'~}m5s trataled ~~Tt3
r~illi?~n? ~'orei gn exchange deficits accumulated during much of ?the
ear3.3~ post~.~ar per? od as vaell as in 1953?55~ Sy 195E~s ttxe economic
situation ~sf ~~ost csf the European Sa-~e13.ites necess~.tated substantial
Soviet financial a~_dd
To x?emedy thw sitzaation, the Satellites have u~;3.liaed 2 r~a~or tvpes
of remedies ~ red~xction of the neod far hard curren~? earnings (pri.nci~
pa:~~~ through att23.izat_fan of c~?ed3ts), and use off' bar~;er a?nd an increLss~
in ;?~a~ curre~;cy- ecry~s;~in~s thre~u?h gr~.ce reduc-~ians and resale of t~,Tester~:
cota.~tries of na6ads pcR.rchas~ taithirz the Bloc These expedients have
beez~. :~.xtadey.za~,e to vo3.?~e foreign ea~change shortages the c~ly adequate
sv3:~ztion being; x~a~de~ct~.?~~ of increased quantities c~~' effort goods which
are s~.a'nle ~.n ~~~estern caurttrie~sg Some impr?vement in the export posies
lion of the Furopear~ Satellites has take~a ~~3.ace ~.r$ recent years, but
iilGre~.e~?~ ef~'orts are s~:~.~.1 necessax?~o
Cn ,~l Ju3.y, the Gorr~nittee *,a3.~.3. _liscuss current i~~~.~ of in~i~erest~
i`he ,k3~ ~xas the only svailab3.c copy of the n f~~~ra:~.a~a statistical
handb~;olc~ ~.h~_s '~arzdbo~aA~, coverin ia:tergrii tten t years ~:~~zcliad'~nQ part
of :~_9r;T) wa:~ll be av~..31ab~.e in F~ unti' cop~.es as?x~,ve for ON~t?
25X1A9a
Approved For Release 2000/08/22 :CIA-RDP61 S00527A000200030003-0