(Sanitized)LETTER TO CONGRESSMAN HORAN REGARDING SOVIET RUBLE REVALUATION AND INTERNAL PRICES

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP75-00662R000200170026-7
• Release Decision: RIPPUB
• Original Classification: K
• Document Page Count: 1
• Document Creation Date: December 12, 2016
• Document Release Date: May 16, 2000
• Sequence Number: 26
• Publication Date: March 12, 1951
• Content Type: MEMO

ce Memorandum ? UNITED STATUS GOVERNMENT
Approved For Release 2001/11/01 : CIA-RDP75-00662R000200170026-7
Chief, Services Division ,)
FROM : Trade and Finance Branch
25X1A9a
SUBJECT: Letter to Congressman Horan Regarding Soviet Ruble
Revaluation and Internal Prices
1. CIA has followed Soviet price and monetary developments very seriously
and is considering the results of these developments in their relations to Soviet
internal and external economy.
25X1A9a
2. However, the problem suggested by - cannot be solved by mere
redeemability of paper currency or bank credits or government deficit in the United
States.
3. It is true that there have been several retail price reductions in
the Soviet Union since 1947. The consumer prices, however, still remain far above
1940 levels and the current consumer prices in the US. Nevertheless, the Soviet
Union has been successful in stopping postwar price inflation, which, however, has
no relationship to the revalued ruble in terms of gold. Furthermore, the Soviet
Union can manipulate the commodity prices as it wishes for the simple reason that
the Politburo does not have to meet demands of pressure groups from organized
labor, organized farmers, or organized consumers. In this respect, the Soviet
Union is not concerned with parity prices for farmers, with cost of living index
wages for workers, or with special favoritism to various segments of the electorate.
4. There is no question that all democratic and free nations are involved
in the battle against inflation, which requires various economic and financial
measures in order to meet it successfully; and as stated above, it cannot be solved
alone through currency redeemability in gold.
Approved For Release 2001/11/01 : CIA-RDP75-00662R000200170026-7