A NEW SOVIET HANDBOOK GIVES ADDITIONAL INVESTMENT DATA FOR 1959

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T01003A000900280001-1
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 8
• Document Creation Date: November 16, 2016
• Document Release Date: April 5, 2000
• Sequence Number: 1
• Publication Date: May 20, 1960
• Content Type: BRIEF

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CONFIDENTIAL
CIS:/~R CB 6o-2s
Cop No.
20:~ay-1960
CURRENT SUPPORT BRIEF
A NEW .SOVIET HANDBOOK .GIVES. ADDITIONAL
INVESTMENT DATA FOR 19.59
OFFICE OF RESEARCH AND REPORTS
CENTRAL INTELLIGENCE AGENCY
This report represents the immediate views of the
originating intelligence components of the OfFce
of Research and Reports. Comments are solicited.
This document contains information affecting the national defense of
the United States, within the meaning of the espionage laws, Title 18
USC, Sections 793 and 794, the transmission or revelation of which
in any manner to an unauthorized person is prohibited by law.
COIVFIDENTIA L
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ANEW SOVIET HANDBOOK .GIVES ADDITIONAL
IN T
The new .edition of USSR in Figures indicates that the growth of
capital investment during 1 was an impressive 12 percent, in the
face of an .average annual growth of 8-9 percent required in the Seven
.Year Plan, l/ As expected, however, some weaknesses continued, espe-
cially in tie supply of equipment. A matter of continuing concern to
the regime is the possible .effect on material supply of the growth in
decentralized capital investment. .Investment outside of the state plan
amounted to more than 100 billion rubles (the total for kolkhozes,
;private housing, and decentralized investment), ar some one-third of
total investment, with .the consequence that the allocation and control
of expenditure of investment resources has became difficult.
There .are some significant omissions of data in the 1959 Handbook
which had been .given in the 1958 edition of the same book, far example
the table giving the structure of capital investment by sector (indus-
try, agriculture, and o on).
-The Handbook-states that total capital investment, excluding the
investments of the kolkhozes and investment in private housing, grew
12 percent above the 1958 level to a total of 275 billion rubles.*
The additional facts are revealed that total construction work grew
to a total of 171.5 billion rubles, or by more than 14 percent and
acquisition of machinery and equipment by the state sector grew to a
total of 85 billion rubles, or by 9 percent.- When the acquisitions
of new machinery by the kolkhozes .are included in the 1958 .and 1959
totals, the total increase in acquisition of machinery and equipment
amounts to 1.3 percent,.** because of a substantial :'~.nerease .cif. new pur-
chases by the kolkhozes following the agricultural reorganization.
Of the total capital investment, state capital investments a-
mounted to 225 billion rubles* and the so-called decentralized invest-
ment amounted to 50 billion rubles. Decentralized .investment, which
includes the investments of the producer and consumer cooperatives,
investments financed from modernization loans, and investments from
such other sources as the enterprise funds., continues to grow rapidly,
having grown some 25 percent during 1959 despite the specific efforts
of the regime to reduce its rate of growth..
State capital investment--that investment controlled by the state
planning authorities as to allocations and audit of fulfillment--grew
only 10 percent to a total of 225 billion rubles'* which, according to
the 1959 plan fulfillment report, amounted to a 5 percent underfulfill-
ment, implying that the Plan had been augmented during the year from
reserve funds to a total of 231 billian rubles.. The original version
a:f the P~,an had been 226 .billion rubles, at the time of approval of
the 1959 budget.
~ Data indicated by the asterisk are inclusive of expenditures for
project design work, in accordance with the new Soviet definition which
includes these expenditures as capital investment, beginning in 1959.
Soviet statisticians have recomputed totals for previous years in
accordance with the new definition. In structural breakdowns, these
expenditures are defined neither as construction .costs nor equipment
costs but as "other" expenditures.
'~'~ Total growth of production may have been less, since it is believed
some :of the agricultural machinery may have come from inventory, that
is, 1958 production,
20 .May 1960 ~i-A/RR CH- 60-28
C?1YFIDEIV T'[AL
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.Reports from the construction industry indicate that the construc-
tion plan for state capital investment had been fulfilled, thus it is
quite certain that the underfulfillments in the state plan occurred pri-
marily in the delivery of the .equipment. Recent criticisms in the Sovie~;
press indicate that this was indeed the case.. Nevertheless, as noted
.ear-tier, deliveries of equipment to all consumers, including kolkhozes,
expanded by 13 percent during 1959, Further, the 39 percent increase
i_n investment in machine-building industries realized during 1959 should
help assure future growth in the supply of equipment.
Significant shortfalls in the planned volume of investment occurred
i.n the chemical industry, in the gas and oil industries, in the cement
.industry, anal to a more limited extent in the metallurgical industries.
Construction of state housing was overfulfilled and increased 15
percent in .volume .during 1959. .Private urban housing increased a disap-
pointing 9 percent, in the face of the planned increase of 19 percent.
For most republics, the increase in investment was larger than
the rate called for in the Plan. This is particularly true for the
Ukraine, which .appears to be expanding investment and industrial pro-
duction at a rate greater than originally planned.,
Comparison of Growth of Capital Investment in 1959, by Republic,
ga nst verage rowth ate equire y even Year Plan
Growth of Investment Growth of Invest-
under Control of ment under Control
Republican Councils of all Government
of Ministers .Organs, including
..Average Annual
Rate, 1959-6,5
4/
Percent.Tncrease
RSFSR
g,6
Ukraine
4.0
Kazakhstan
11:..4
Ge.or gi a
7 ..0
Lithuania
6.?
Latvia
g,3
Tadzhik
14..7
Armenia
12,7
Estonia
g,4
All-Union and De-
centralized Capi-
tal Investments
Actual .Increase Average Increase
1959 over 1.958 3/ 1959 over 1958 1/ 2/
Percent
Percent
10
11 .3
11
15 .4
17
16.1
9
11,0
15
20,4
20
22 .3
28
25 .4
15
16.0
14
16.2
epublics for which .Republican investment is not up to planned rate
but total investment is:
Belorussia 11.9
11
12.4
Azerbayzhan 10.1
4
11.6
Republics
which are not up to planned rated
Uzbek
13.3
5
9.9
Moldavia
18.5
15
16.8
Kirgiz
9.6
6
6,4
Turkmen
13.5
7
10.4
20 May 1960 C=~/nR-z~.~g~,
C0IVFIDENT lA L
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analyst:
Goord ,
Sources?
1. SSSR v Tsifrakh v 1959 Godu (USSR in Figures in 1.959),
.Moscow, 19 U.
2. Narodnoye khoz~a stvo SSSR v 1958 Godu (National Economy of
the T7 R in ,.Moscow, 19 p, 158, U.
3, 1959 Plan Fulfillment Pravd
4 ,.
2 0 .May 1960 CIA/RR .CB 60-28
Page 4
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 U.~UNCLASS~FI,~,D~,,~~~~ ,~?;~e EgNuN,~n ono~eTn~nn~nn?I~,,,C~NF.,LDENTIAL`'
FROM:
ROUTING AND RECORD SHEET
A NEW SOVITT HANDBOOK
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DATE
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