RUSSIAN GOLD POLICY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00662R000100060060-2
• Release Decision: RIFPUB
• Original Classification: S
• Document Page Count: 6
• Document Creation Date: December 9, 2016
• Document Release Date: July 29, 1998
• Sequence Number: 60
• Publication Date: March 18, 1952
• Content Type: REPORT

Approved For Release 2000/08/27 : CIA-RDP75-00662R000100060060-2
BEST COPY
A VAILABLE
Approved For Release 2000/08/27 : CIA-RDP75-00662R000100060060-2
 C R R T_
RUSSIAN U IQ POLICY
75-006WROQg100960060-2
1. A note dated 16.3.50, outlined the trends of Russian
gold policy during 1949 and reviewed probloras connected
with Russian Cold stocks and the rouble, and with Soviot
bloc movements of `old to the We at amounting to about
L50 million.
2. The prosont note re:viowe Russian gold policy during
1950 and 1951, tho chief features of which are:
a) A decline in Soviet Bloc gold movements to tho West
(no direct shilsnonts of Cold have corilc from Russ Li) .
b) Incruasud Russian financial control ovor?tho Satellitc,:g.
GULL F01.ICY
~~. Just prior to the occupation of China by the Cor~.,unist3,
the Chinos: were, paying up to 80 U.S. dollars por ounce for
gold. The occupation elo.;od the Chinoso gold :market and
pricc3 in ;,orid gold markets alumped. At one; period, frec
r.larkot prices full to nearly 3,15 dollars per ounce, which is
the official price laid down by the Intornationul Monetary
Fund. The participation of the Ch{ noeo in the Korean War
sti.i.latud world don and for gold and prices roso z;nin.
I oru recently, the incroaso-' demand in ~:ndia and in the Far
Ea.-It,, prosulaably cn,iced by tho uncurt.ain political outlook,
4. .
hr.: bec!n rc:sponciblc for maintaining the frec ruarlaot prico
of fold at about 40 dollars per junco.
The e izo of the Russian gold stock is still unknown, A
former crxiployco if the Soviot goad industry has cxprc scod the
view thmt 1,000 tone is the absoluto minimury figuro. Annual
output in Russ is is oztiraatcd t-) bo botwo;,n 300 and 400 t )r 3
u,id thQ area of -old production has been ox ndinn. There
are clans of an Ltonsification i:z the Rues^n thirst for
Cold. Russia has obtained Cold from China, Manchuria,
Sinkiang znd the Satollitca. Tho total Roumnian annual
output, which is so*,-o 7 tons, is under duss.ian control and
is taken by Russia. Again, Russia still holds tho 11 tons.
of gold which should bravo boon tranaftrrod to Pors iz in
oxchan o for currency notos issued by Poratn to the Russian
occupation foreos' during the war.
5 Our last note referred to the Soviet declaration that the
roublo had boon pplaood on a gold basis. Wo havo roocivod
no further dotails. It is still not oloar whether Russian
gold plays any part as a normal ourronoy backing and fore iJn
exchange reserve.
Llthou.h rates of oxahnngo Ix vo boon ostnblishod botcioon'
ii ido to Gov l+o t.. Union..
within tai`` Soviet 1100, it =door not .oirculat.; as a. currency
rb
e mile arid-FloaIffo*ont. nto lito ourrcncios n r lthaa;;1:
Appr"o' ' Fo elease 200010etWA- P75-00662R000100060060-2
 ' Y
improved I or Fejease 20 #: CIA-RDP75" 0662R000100060060-2
7. Daring 19x1, 9atollstoe doepatohod missifts to Mose v.
with tho objoot of -studying tho Russian financial syztcr: .id
cxploring. tbo possibilitios of dpvolop1mg tmdo undor loni;-
torn arrangamonts. Bilatoaa1 A90Q onts on a roubic ba:3 i3,
lasting uiitit 31.12.35 havo since boon coneludc;d. It li
be liovod that a dova lur iOA of .:Batc htto currt:r.c is s nr y be
a f urthol' out oozoo of the so negotiations. SOVIET 3100 MOW$g' Oi~' FOLD.
8. Tho follo ie ;a list W6 branologlahl odor of tho
principal, m'voe f?=Sovlot B1o4 old to tho ;lost roportod ':s
taking place duri.Z 1950.51. Poo' uniformity, dollar v., luc
Lavo boon quoted ?
1950 %5;7280,800 Czecho8lovzkin to U.K.
6,798,240
1,850,240
2#2409000
1,120,000
1"380'#000
6,830,500
25.0t 000
19,040, 000
1051 1,12 0, 000.
Poland
t. H~%11aid
Pol-tnd/Czcor.o31cvc:ki..l t j 7: is r
Yugoslavia tr U.K.
Poland (50;1 So. tot
Switzcr 1_.n('
Poland It " t -
Hwigary tc Holl^.; d
3witzerland (Rourlr-ri-. ,
ArgL' it ins.?
Roun.anin to Ho11-irid
Urut;u .y
Czochoslovzkirt (R tt,L,r:iz
to H ) 11.?:~zd
Hunwary (vie. Sw it z(r la nc:)
Tbn
Czac alov,tkia t r IIru-_uzj
t H )llr,nd
kvtnaary to Sritzorl^rtc' (in
poriodical co.,sign:.tonts of 1 t :..)
10,080,009
. 1,462, 72 0
0#00U0000
6400000
48704,000
7,000, OO&
To to l: $114,444,500
i
Movomont's of gold on Hungarian account niiountod to 7.a
%5 ui1lton, whilst on Roumanian, Czoch and Polish acc rur.t s
to 'mounts wuro' 132, $18 and $9 million respcctivoly.
go A ' o&ppnnr icon- botwosn tho above total and that for
to ( 1$O mi111on , 4h0 that naves' of Soviet Bloc 1ld to
Wost taking p, co during both 1950 and 1951, wore
gubAtant 11y lose than thoso taking p1aoo in 1949.
Approved For Release 2000/08/27 : CIA-RDP75-00662R000100060060-2
 eireove* d For R le qe 2U40/0 2 Y, P75-0 2R000100060060-2
io. F : - ? id ly 0't oD' above" r 0 03 have boon by t ir.- Our
kn oQ o of the rot ons roN''t o ioyo and of the Cisp sa1
of b gold- Iq .11m1tod. ThO following exanplc s sh.wr
in acuo casoe, tho tigyos pro" the- rosult :'f atraI htforw?r:1
oatciCraiii transietiora, and, ih bthors tho object is to
provtdo furAs. Wo ofton loso? eight of tho Ccld o'~-ca it
nr*ivosat jta' ostonsiblo dostin~tt .on.
(i) I'gcft, bf tit ,798,240 consigrxlcnt frc Gzccr sl >vrtki^
to *o%lnnd was` dosing for the Dutch nsti / inc'.ustr;;,
j14rt l s ' ctlleCo4 to have boon usod -to act Ru s 3 L- in
dobt'to Pritzor tho -rotntndor
st aartigp tr p n e fgrio d to Parts , ac rc vrt , TIc
ntl ttn. '
( ii) A Poi`iah and Osekoh $2 940 000 c )^ s i 1 io nt t ~
TanCicr, took placo illoC0&1yy to benefit fr y. t'i;~ riao
in the (roe price cf Vold ful1oti,ii the ,utbrc:ak
the Kor-onn War.
( ill) The $13,800,000 cohai ont fr.zi P")1-:nd t''
Switzer lnrnd, half of which c ors istc d ?.~f
-was usod to pay for Polish kip irts Jf mac; is: ;;
under th( Swiss/Po113h exc..ar1 C Of `-. ,';c:3 a.r(;c t,
(iy) The larr*o oonairrwnt of $19' ills-r' of R
ol?d frrm witzcrlanc; t tho Arrontinu r(-pr(-!:.c tool
paynont- for grain dclivcrics ryndo by the Ar'?( :ti'a; t..
Rou:.tnnin In 1948.
(v). . Tho conatjmwnt of $7 riiliion from Hun;r:r ' t,:)
Switzorlcre. wns el. .for d,>11ars. Tt.c Stivis.i, ;:1.,:
judeo&, ttte L ^insi:rxior,' to be newly r.:inod Rust inn
dospetclid it f r re-.8-.10 in Sn ir-nn zn;?, 3-rrir .
11. :1:ilet thorc Lave bt , i-:) -' iruct 3:iipI~i.nts )f '1' f'r ..-:
Russia to the Wuit, the fact that a c insi~;rxr:rt 1l' fr
P^land to U.K. was fc,uncl ti be franlmd Vrit': 13Iar;~:i:,r.
rinrkir s Is farther evidence ,f tlossi'i.i 1` "'.. i 1 t',
m t,i the Ac-st throu3h Sntcilito. chinncls. A:i i:.ic ? i 1 r,
of Ruesinn .cahtrul over Sato tc ?.:ld is illastr^.tc -: ty !1,r
followirZ: lit ilay`, 1951,? thc ' umani^.na, -i thh.('. r.'crs ,)f
tho T.uesian Atabaseador irk Bucb ttrest; paid part f t ,c. pr c.: u(1';
frorY the solo of Ro ttnian g-dd h ld in witzorl-.;k' t t?.c
Czocha, in spl3 o of hnvi. Civon previous esur,tncc- s t, the
Swiss that the pp oooods uf any sale ould be usrd s plc ly
r
?
t? trde 12qu
ldat Rou:atnian dobte to 3wit.urla:u',.
f
"as .TUN TRAI?IIi2 FACTORS
12, In
liaou i ,.. RWain reains rod it balances c ,i c:crc is l
nit Poet 3lpiropoan aountriea and therefore docs
mat roll on the sale 'of told or the provision of funds,
(Poor, oxariplo, in Bol(;iur Russian balances nriount t )
ox unto 2?000 miilian Bo 3 tan franc a) ? Thu pr inc ipa 1
3
eo. x ll rotp in 'ufficicnt funds in tho Y1e t
1lttos a
&% ship 1sot Loon -840 brxi Yiost was bpsot in 1950-51.
. ' O id ' . ?
eult tt'ab u ` eoupat ion of Chinn, the
an ii & *a& ? to erde the Sowiot Bloc et.&ffonod and the
/b.S.A. plac,1.....,
Approved For Release 2000/08/27 : CIA-RDP75-00662R000100060060-2
 U. t.. p1o d, sq~-0 ! ,i'Qi t ictipr # On exports to that area.
(o and ~fl? tb n hood on innpbrts and the
Rue Mn4. t 1vop ofrning dollars iron ahipnonts' cf
abD d:to' tbo VeNA* irbicb the wore unable to spend -n
the o n trade rOquiroi nts, ? sin 1850 itussian dollar
bra lanoos ino 'oasod. ,
14. In }1951 tho picture ohangode Atyorican freezing of
Chino.eo dollar holdiz}gs, resulting from Chinos(; participation
in :urea., alai-mod tho lWailans. Fearing that similar ,i c t i n
r4c' t be, o,,,dcn agalrns $boi they be
an to unlo
d th
i
g
e
a
t
dol: are. In this latter knif of 1951 particularly, a c -nt 1 dun 1
rundown of Ruas,ian dollp holdings in the West took place.
On o c cqa i on, the Itus a lane have offered to pay in dollar ? w.: c rc
other currencies 'tore aocoptablo. Uognwhilo, Ar.:or ic,zr-;
purchases in Russia ceased.. Thus Russia hack novw 1-st c.r
source of d ollar ' earnings.
15. The position was further aggravutod curing 1951 by the
offocts of the Western onbargo which were twof X1:1: Fi
tl
rs
y
a decline in normal trado between EAbt and West cvw , gr.c _~iy~
considerable Soviet Bloc purchases of strategic. r. ateri^ 13 fit
inflated prioos. in the 'Yost, in a ireunvorit ior. . f thr? cr;bnr ,o.
Largo quanbit ion of dollars were paid. Until rc cont l;,', thorn
has boon no aptaront ahortago of -1o11rrs '--)r tt:usc pure tisu;
except in the case f Czochoslovakl zHu: ;'Lry, b}
which i:karrA cd to rectify the doficioncy either fron t;-.c.
Russians d cct, or frcn the salo of gofa.
16. T ,A~aln, Russia has iow subst'ni lal
pprroxirntc:ly it balance. In
agrocnont a!ul the offoctu
huesitt, -iavo Loft tt,o latter wt.1:
SUBVERSIVE FUNDS
17.
Gold s: iua~yli: as a :,ferns of f mane i.. 31-v i,. t
alma in the fleet was practise c3 i:r the r+ar:,r p st--ir
The Russians mado uea cf pr ufpsai::nal c:uricro n,i t it 1 1
ropresontativds to handlo and '!isp,jso :uf the f;.~1,1, h i i':` .:,
the Russians oro? reported to have, applied the pr .cc:c _',s= ::.f
both official ands gg~g~;.odd gold Salo-e to the credit of yk,;;tcra~
C?twunist Parties.- Thera has boon no ('vide ncc :'f thu :i.r3si