SATELLITE COMMITTEE SERVICES DIVISION

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP61S00527A000200030012-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 9, 2016
• Document Release Date: July 31, 2000
• Sequence Number: 12
• Content Type: REPORT

Approved For Rerease 2000/08/22 : CIA-RDP61 Sft27A000200030012-0
'L'i T A 94 a
N.9A 1@. ~~ M
Satellite committee
Services Division
on 13 Warch, the Caumittee discussed the present ;Mate of economic
coo ?din=motion within the Soviet Bloc. Since mid-1956 there has been an
apparent partial disintegration of the coordinated system of mutual
pl e ring as it affects both production and trade, The problem was posed
in the following termst Is this disintegration to be explained as the
result of some fundamental flaw in bloc plans for extended coordination,
or merely as the result of a temporary maladjustment ter',. thin the Bloc?
ex le of the first approach might be found in the fact that, in
sr-t,, plans for Bloc coordination have little basis in economic reality,
in large areas Satellite economies are not sufficiently comp'liaren-
tart' and the essentials of a free trade area encompassing the Satellites
are :lac: togs Tnsofwr as this is true., coordination can be e` .forced, but
there are no inherent bases motivating the Satellites to par?sue i.t. On
the other hand, the apparent disintegration may be the result of a tem-
porary ad;uatment to a lower and more realistic rate of growth, which
when achieved, will make the whole coordinated system a more healthy as
stronger came,
In the discussion,. several points, were made which had particula.,
bearing on the problem. As far as nonferrous metal imports are con..
seared, the Satellites depend on the West first, the other Satellites
second, and on the USSR. third.. In electric power, interchange between
Satellites is still sponsored by CENA, but despite the fact that it
would be advantageous to the countries concerned, observed progress in
this direction is limited. In ferrous metals,, the USSR shipped more
than her commitments of iron ore to Poland. The USSR price of ore to
Poland has been 20% less than the world unit price. In no~i-?ferrals
metals, the USSR is developing substitutes for bauxite while Czechoslovakia
and the GII will not, according to their plans, need ether bauxite or
aluznira from Hunga -y in the future, These latter two points imply that
} r a?cy' s future specialization in alumina and bauxite for purposes of
a Bloc-trice dlvins3.on of labor, has not been coordinated among Bloc
members,.
25X1A9a
At the meeting on 20 March 1957 the Committee will hear a panel
discussion on unemployment in the Satellitese The panel will be comma 25X1A9a
posed of
25X1 A9a Mr. - of FDp will be i.n 'Q' Building on Thu day morrdng, 25X1 A2g
March 2:L, to discuss the exploitation of (153 pages in
German) w ..th interested analysts,
25X1A9a
Approved For Release 2000/08/22 : CIA-RDP61 SO0527A000200030012-0