EASTERN EUROPEAN INTELLIGENCER

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79B00864A001200020039-5
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 2
• Document Creation Date: December 20, 2016
• Document Release Date: July 13, 2006
• Sequence Number: 39
• Publication Date: October 26, 1972
• Content Type: STUDY

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ONFIDENTIAL
#201 EASTERN EUROPEN INTELLIGENCER OCI #0966/72
-- 26 Oct. 1972
State Dept. review completed
Food Price Increases in Poland?
Following the December 1970 riots over food-price
increases which brought in the Gierek regime, the Polish
government imposed a two year freeze on food prices. That
freeze ends on 31 December of this year and rumors are already
beginning to circulate that prices for a great many items--
including food--will go up in January. Some increases, in
fact, have already been announced or instituted; telephone,
telegraph and postage rates have recently been hiked, as have 25X1
prices for woolen yarn and silk. Also rumored for increases
are such things as furniture, gasoline, electricity and
natural gas, public transportation fares and cloth.
regime is, of course, most sensitive to this issue, and
relative prosperity. If this were threatened, it might disturb
political equilibrium, weaken Gierek's current popularity, 25X1
and perhaps tempt the workers to flex their muscles once again
to force price roll-backs as they did in early 1971. The
most price increases will be in the area of
uxury consumer items to minimize the impact on workers.
Food prices, however, are an entirely different can of
worms. Although there is fairly good economic justification
for raising food prices, this must be weighed against politi-
cal considerations. Recent economic gains--wage increases
averaging 11% accompanied by an increasing supply of food
and consumer goods--have brought the workers a new sense of
25X1 is making efforts behind the scenes to
assure workers t at food prices are to remain stable. Premier
Jaroszewicz reportedly told representatives of the Gdansk
shipyard workers recently that, while some consumer items
would be going up, food prices would be kept at present levels
for the foreseeable future.
In all probability, political considerations will win out
over economic ones with regard to food prices, and they will
remain at present levels well into the first of the year.
Possible increases in selected foods would be balanced by
lower prices for others, so that the worker's "shopping
basket" total cost would remain about constant. This should
be of some comfort to the Polish worker, who now spends 5
Approved
CONFIDENTIAL
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Queen Elizabeth's Visit Boosted Tito's Prestige
The US Embassy in Belgrade reports that the Queen's
highly successful visit to Yugoslavia on 17-21 October had
the effect of boosting Tito's prestige at home and abroad.
This was the first visit by the British royal family to a
Communist country and, coming at a time when the Western
press is speculating wildly about Yugoslavia "turning to the
East," it demonstrated dramatically that Tito is still
maintaining friendly ties in the West. Tito in fact took
special pains, including the unusual attention he showered
on the royal family, to highlight the event.
Domestically,. the visit came at a crucial period in
Tito's campaign for tightening party discipline throughout
Yugoslavia, but especially in the key Serb party organization.
Press juxtaposition of photos of Tito squiring around the royal
family and articles about tensions in party activities
undoubtedly had the effect of deemphasizing the dangers of
the internal situation for the average Yugoslav.
In purely bilateral terms, the visit seems also to have
been an unqualified success. Yugoslav media gave extensive
coverage to the Queen's activities in Yugoslavia and the
British now feel that their relations with Belgrade have
never been better since the end of the war. Indeed, the only
remaining problem seems to be "how do we top this?"
For Tito, personally, the visit also meant a lot. His
international and domestic prestige were enhanced. More-
over, Tito genuinely enjoys the pomp of such occasions--he 25X1
is not called the "last of the Hapsburgs" for nothing--and
the opportunity to demonstrate the highly refined art of
Yugoslav hospitality.
NOTE THE VIEWS EXPRESSED ABOVE REPRESENT
ONLY THE ANALYSIS OF THE EE BRANCH
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