CIA REPORT ILLUSTRATES FOLLY OF WHEAT DEAL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00149R000700250012-8
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 16, 2016
• Document Release Date: January 3, 2005
• Sequence Number: 12
• Publication Date: February 1, 1964
• Content Type: MAGAZINE

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FE B 1 1964 NP can -o I / ~ ~ 1 -~' t .
CIA Rpor? Hh s r ' s
Focn -5 - C)
Fonv of Wrc ? Deal
By REP. GARNER E. SHRIVER (R: Kan.)
A release by the Central Intelligence
Agency of a report on the Soviet
economy last week helped illustrate
the inconsistency and folly of the Ad-
ministration's recent demands on the
Congress for authority to extend gov-
ernment-backed credit to Communist
Russia.
The CIA report depicted the Russian
economy, and particularly the agricul-
tural sector, as being in dire trouble.
There was speculation that release of
the previously secret study was timed
to discourage our European allies from
granting long term credits to the
Soviets. Such credits would allow
Russia to 'break out of the economic
predicament which the CIA believes
it is in. The study also revealed that
Russia faces a gold shortage which
will force it to seek increased credits
to finance its necessary purchases. .
In the' light of the CIA analysis,
it is ironic that the Administration
vigorously sought last Christmas Eve
the authority to extend credit to the
Communists through the Export-Im
:port Bank.
The . Export-Import Bank credit .
issue which was debated by the Con-
gress did not" affect previously an-
nounced U.S., policy to sell wheat or
other agricultural products to the
Soviet Union. It did involve the terms
upon which such transactions would
be made-
The decision to sell wheat al-
ready had been made by the Ad-
ministration, , and the Congress
was not asked to vote its approval.
~? It should be remembered that the
Russian wheat deal was first pre-
sented. to the American people as., .
f ~ a private, commercial transaction . .
-a one-shot deal-for cash, pre-'
sumably gold, and it was sup-
posed to help the American wheat
farmer as ? well as the American
i taxpayer, and ease. our balance-
mnts problem.
of-pay
REP. GARNER E. SHRIVER (R.-Kan.)
It didn't take long to discover that
Russian commercial credit in. this
and international circles, was zero.
In fact, the Communist record of gov-
ernment-to-government credit also is
a sorry one. The Russians on June"
30 owed the United States over $621
million on their World War I indebted-
ness. ' 'T'hey received some $11 billion
from us in World War II aid, and
while they agreed to repay only some-'
$321 million, we have received only.;
about $110 million. They owe .the'
'Uni ted'Nations .huge sums.
Nevertheless, the Administration is
willing to let the American taxpayer,
underwrite with his money the faith,
intentions and the credit of Mr.
Khrushchev. ? `'+
The CIA report confirms that the '
wheat transactions constitute a minor j
phase of the Soviet bid for credit.pur-
chases. With the Communists ob-,
viously 'facing increasing economic
difficulties, the Administration is telling
our allies "Don't, do as we do,, do as
Approved for Release 2005/01/05 : CIA-RDP75-001498000700250012-8