FURTHER SLOWDOWN IN SOVIET INDUSTRIAL GROWTH IN THE LAST QUARTER OF 1963

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CIA-RDP79T01003A001900150001-4
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November 29, 1999
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March 1, 1964
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AppgMf py Release 2000/04/17 CIA-RDP79TO1 003AO01 900150001-4 Current Support Brief FURTHER SLOWDOWN IN SOVIET INDUSTRIAL GROWTH IN THE LAST QUARTER OF 1963 CIA/RR CB 64-20 March 1964 CENTRAL INTELLIGENCE AGENCY Office of Research and Reports SECRET GROUP 1 Excluded from automatic downgrading and declassification Approved For Release 2000/04/17 : CIA-RDP79T01003AO0190015 001-4 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 This material contains information affecting the National Defense of the United States within the meaning of the espionage laws, Title 18, USC, Secs. 793 and 794, the trans- mission or revelation of which in any manner to an unauthorized person is prohibited by law. Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 :SCLA-tZ-Rf 779T P1003AO01900150001-4 FURTHER SLOWDOWN IN SOVIET INDUSTRIAL GROWTH IN THE LAST QUARTER OF 1963 Preliminary plan fulfillment results reveal that Soviet industry advanced at an exceptionally low rate in the last quarter of 1963. Because of the poor fourth quarter, civilian industrial production -- which had dropped from an annual rate of growth of 9 to 10 percent in the late 1950's to 6. 5 to 7 percent in the 3 years 1960-62 -- may have grown considerably less than 7 percent for, the year as a whole. * Rates of growth in 1962-63 for the three major components of civilian industrial production are given in Table 1, and rates of growth for 56 important commodity groups are given in Table 2. a. Explanatory notes for Table 1 are given in Appendix A. USSR: Rates of Growth for Major Components of Civilian Industrial Production a/ 1962-63 Percentage Change from Corresponding Period of Previous Year Periods in 1963 Full Full Half-Year- Quarter-Year Year Year - ' -~ 1962 1963 Jan-Jun Jul-Dec Jul-Sep Oct-Dec Industrial materials 7.0 5.9 6.8 4.4 6.3 2.4 Civilian machinery 9.7 8.2 8.7 7.0 8.5 5.3 Consumer nondurable :goods 5.7 4.1 4.1 4.2 5.7 3,3 The percentages for years before 1963 are derived from the ORR index of Soviet civilian industrial production. The calculations for 1963 are tentative because of the incompleteness of the list of commodities included. See CIA/RR ER 63-29, Index of Civilian Industrial Production in the USSR, September 1963 (UNCLASSIFIED). S-E-C-R-E-T Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 S-E-C-R-E-T A number of developments account for this slowdown in industrial growth. As expected, last year's agricultural reverses held down the production of consumer nondurable goods. In addition, certain of the following possible developments also could have had a detrimental effect: an accelerated retirement of obsolete capital equipment, the changeover of plants to support the new chemical program, altered production sched- ules for military end products, the technological problems of mastering the more complex processing techniques in newly completed plants, and local shortages of labor. Background At the end of the first half of 1963 the general expectation was that growth of civilian industrial production for the entire year would be at about the same level as that of the previous 3 years. The estimates in Table 1 for the first half of 1963 indicate growth at about that level. Production data recently published for the full year, however, indicate a perceptible reduction in growth for the year as a whole, a reduction largely attributable to the low rate of growth in the fourth quarter. Because of the shortness of the time period and the transitory and specu- lative nature of several of the possible alternative explanations for the decline, it is too early to judge whether these lower rates of growth will persist into 1964. Details of the Decline in Growth Although the slowdown in growth in the fourth quarter of 1963 was common to industrial materials, civilian machinery, and consumer non- durable goods, there were notable divergencies within each group in the behavior of separate commodity categories. Among the industrial materials, there were moderate to sharp downturns in rates of growth for forest products, construction materials, rolled metal, and electric power. The slowdown in the growth of pro- duction of electric power in the last quarter of the year apparently was due ,= In mid-1963, there were indications of a possible slowdown in the rate of expansion, but both Soviet and Western sources suggested that these indications probably were a result of the severe weather conditions in the early months of 1963, which were not expected to affect greatly the results for the entire year (see Appendix A). Approved For ReIeases 260O/O4/1?-:TCIA-RD P79TO1003AO01900150001-4 Approved For Release 2000/04/17 :14_ ~DD7~ T91003A001900150001-4 to a decline in the rate of increase of demand rather than to the effects of drought or a shortage of generating capacity. Among the: categories of civilian machinery for which data are available, there were lower absolute levels of production for metal- lurgical and oil equipment, turbines, forging press machines, and sew- ing machines for the second half as a whole'.'; for the fourth quarter, production was lower than in the same quarter in 1962 for electric loco- motives, looms, and excavators. Perhaps as a reflection of current priorities in the USSR, output of agricultural equipment and consumer durables expanded at steady high rates throughout the year. *** Production trends in consumer nondurable goods industries depend heavily on events in agriculture. Recent developments in farm output could explain most of the significant changes in production trends. The most surprising result in production of processed foods was the absence of a large increase in production of meat in the last half of 1963 above, the previous year. The reduction of 42 percent in inventories of hogs because of a lack of feedstuffs would have suggested a sharp upturn in output of meat. Apparently the light weight of the young animals removed from inventories under the distress slaughtering campaign kept the in- crease in total output of meat relatively low. The sharp decrease in out- put of dairy products indicates a shortage of feed supplies other than grain, such as silage and hay. In the USSR, cows are fed only small amounts of grain, and a decrease in milk yields reflects a significant decline in nongrain feeds. * Production data for metallurgical and oil equipment and for sewing machines are available for 6-month periods only; absolute levels of out- put for these categories of machinery also were lower in the first half of 1963 compared with the last half of 1962. .l< In addition, output in physical units of trucks, automobiles, and buses was off 1. 0 percent from the fourth quarter of 1962. Because of the Soviet practice of rounding output indicators (physical units or ruble values of output), however, and because of a possible undetected re- vision of quarterly production data for the preceding year, an error of 2 percentage points either way may be introduced in the output of any one commodity. Major revisions of quarterly or semiannual data for 1962 could be detected and adjustments were made. *** The lack of consumer demand for sewing machines (at least for the quality of machine that is produced currently) probably explains the drastic decline in this level of production. An unknown proportion of out- put of sewing machines is for industrial uses. - 3 - S-E-C-R-E-T Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 : CIA-RDP79T01003A001900150001-4 S-E-C-R-E-T 3. Alternative Explanations of the Decline in Growth Other plausible explanations for the slowdown in rates of growth for major sectors of industry in the last quarter of 1963 are as follows: a. There may have been a slowdown in the rate of increase in net capital formation for 1963. Gross additions to industrial capacity in 1963 were about the same as in recent years -- 12 to 13 percent -- but a possible increase in the proportion of capital stock retired could have lowered the net increase in the stock of plant and equipment. b. There may have been a disruption of production flows from facilities already in use. This effect on output could have been more than normal because of two events. First, commissioning of new capacity, a high proportion of which is normally achieved through expansion or re - equipping of existing facilities, was particularly heavy during the last half of the year. Second, the possible conscription of plants to aid in the expansion of industries supporting the new chemical program may have caused a dropoff in production because of temporary shutdowns of at least part of their facilities. =, * There could have been a conscious decision to hold down the production of certain consumer goods so that the chemical program could be supported. c. The longstanding problem of bringing production from new plant and equipment up to rated capacity may have become worse during 1963. Soviet planners, designers, and engineers have had increasing difficulties in recent years in bringing output in the more complex processes embodied in newly completed facilities up to expected levels of output. d. Substantial changes in production schedules of various mili- tary and space programs could cause short-run disruptions in production * The USSR has been able to maintain annual increments to productive capital stock in industry of 12 to 13 percent per year in spite of a sharp downturn in the rates of increase in new fixed investment. This has been accomplished in part by foregoing the retirement of old plant and equip- ment and in part by drawing on the backlog of unfinished projects. ** The partial or complete conversion of machine building plants from one product line to another. See CIA/RR CB 64-8, Soviet Conscription of Plants to Produce Chemical Equipment, January 1964 (SECRET), for evidence of planned future conscription of machine building plants to pro- duce chemical equipment. Approved For Releasei60 417T: CIA-RDP79T01003A001900150001-4 Approved For Release 2000/04/17 :W-RC71TT1003A001900150001-4 trends. Although there is no evidence that industrial activity related to the defense effort has leveled off or been reduced in absolute size, such a possibility exists. Large-scale diversion of plant capacity to support civilian programs could cause short-run slowdowns of expansion or con- traction in such supporting industries as electric power. e. Soviet planners during the past year have attempted to ex- pand production by increasing the number of shifts of machine building plants. Because of a possible shortage of labor, especially of certain skills, the extra shifts may not have been implemented. The over-all increase in the industrial labor force -- in absolute numbers -- was about the same for 1962 and 1963. f. Rates of growth in the last quarter of 1963 could have been low either because growth in the last quarter of 1962 was abnormally high or because weather conditions in the last quarter of 1963 were. unique. These possibilities are discussed -- and dismissed -- in Appendix B. The above list, incomplete as it is, appears to cover the more plausible explanations for the deceleration in the fourth quarter of 1963. The impact of each of the above factors on levels of output could be mitigated by the passing of time, with the important exception of a pos- sible secular rise in the rate of retirement of industrial capital stock. This latter factor could be overcome only by a significant increase in new fixed investment for industry. S-E-C-R-E-T Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 S-E-C-..R-E-T USSR: Rates of Growth. in Production of Industrial Commodities a/* 1962-63 - Percentage Change from Corresponding Period of Previous Year Periods in 1963 Full Full Half-Year Quarter-Year Year Year Commodity 1962 1963 Jan-Jun Jul-Dec Jul-Sep Oct-Dec Usable iron ore 8.9 6.9 7.9 6.1 9.1 3.0 Pig iron 8.6 6.1 5.9 6.4 8.0 4.9 Crude steel 7.8 5.1 5.3 4.9 5.3 4.6 Rolled steel 7.4 5.2 6.5 4.0 4.1 3.9 Steel pipe 17.3 10.1 12.9 7.5 8.6 6.5 Fuels and power Electric power 12.7 11.6 13.3 9.9 N.A. N.A. Of which: Central supply b/ 13.1 12.3 13.9 10.8 17.8 4.7 Coal 1.3 2.8 1.6 4.1 3.8 4.7 Petroleum, crude 12.1 10..6 10.9 10.4 11.1 9.8 Gas 23.6 21.7 21.9 21.4 23.5 19.8 Chemicals Sulfuric acid 7.0 12.0 12.0 12.2 12.7 11.8 Caustic soda 7.1 9.2 9.0 9.3 11.9 6.9 Soda ash 10.3 9.0 9.1 8.9 8.9 8.9 Mineral fertilizers 12.7 15.0 13.3 16.7 14.3 18.8 Artificial and synthetic fibers 10.7 11.1 11.0 11.1 13.6 8.9 Automobile tires 9.7 8.0 7.8 9.4 9.6 9.3 * Footnotes follow on p. 9. Approved For Release h0 %a4A7 T CIA-RDP79T01003AO01900150001-4 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 S-E-C-R-E-T USSR: Rates of Growth in Production of Industrial Commodities 1962-63 (Continued) Percentage Change from Corresponding Period of Previous Year Periods in 1963 Full Full Half-Year Quarter-Year Year Year Commodity 1962 1963 Jan-Jun Jul-Dec. Jul-Sep Oct-Dec Cement 12.7 6.o 10.0 3.2 6.6 0.0 Precast, reinforced structurals (con- crete) 17.5 8.0 9.0 5.9 8.5 3.4 Window glass 8.2 2.1 4.0 0.3 -5.9 5.3 Asbestos cement shingles 9.5 3.0 5.6 -1.1 0.0 -2.2 Commercial timber haulage 3.8 4.o 6.2 1.8 5.9 -2.0 Paper 6.7 4.0 2.9 6.8 2.9 10.3 Furniture c/ 15.4 10.0 10.4 9.6 12.5 6.7 Civilian machinery Chemical equipment ? 9.5 9.0 8.0 9.6 12.3 7.1 Metallurgical equip- ment 12.2 -1.7 -0.1 -3.4 N.A. N.A. Oil equipment 13.5 -5.1 -0.5 -10.1 N.A. N.A. Agricultural equip- ment c/ 21.2 17.4 17.0 17.7 17.1 18.4 Instruments J 15.4 13.0 16.0 7.4 13.2 1.9 Trucks, buses and autos 4.0 1.6 2.1 1.2 3.4 -1.0 Tractors 8.9 13.2 16.9 9.9 10.8 9.1 Metal cutting machine tools 6.7 3.4 4.2 2.8 0.9 4.6 S-E-C-R-E-T Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 S-E-C-R-E-T USSR: Rates of Growth in Production of Industrial Commodities 1962-63 (Continued) Percentage Change from Corresponding Period of Previous Year Periods in 1963 Full Full Half-Year Quarter-Year Year Year Commodity 1962 1963 Jan-Jun Jul-Dec Jul-Sep Oct-Dec Civilian machinery Producer durables (Continued) Turbines (kilowatt- hours) 11.2 -0.2 10.9 -9.4 3.7 -18.9 Generators for turbines 16.6 8.2 9.6 6.9 N.A. N.A. Electric motors 12.6 9.0 8.8 10.3 11.3 9.4 Diesel locomotives 1.9 2.3 -4.5 8.9 5.8 12.1 Electric locomotives 10.8 4.2 7.4 1.3 5.8 -3.1 Weaving looms 21.2 5.2 11.5 0.9 5.1 -7.0 Excavators 6.9 4.0 6.0 2.1 7.1 -2.4 Forging press machines 9.2 1.5 6.2 -2.9 0.0 -5.7 Television sets 11.2 14.0 10.0 17.1 19.2 15.3 Washing machines 39.8 28.0 27.8 28.2 26.9 29.4 Refrigerators 22.0 8.7 11.0 6.6 6.1 7.2 Radios and radio phonographs 0.5 12.9 0.9 22.7 30.0 16.7 Motorcycles and motor scooters 5.6 4.2 5.3 3.1 4.5 1.7 Bicycles and motor bikes 10.1 7.0 7.0 9.9 14.3 6.3 Clocks 0.0 3.9 5.0 2.2 1.5 2.9 Sewing machines 1.5 -22.2 -15.0 -29.0 N.A. N.A. Approved For Release 2d06%047T! TCIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 S-E- -R-E-T Table 2 USSR: Rates of Growth in Production of Industrial Commodities 1962-63 (Continued) Percentage Change from Corresponding Period of Previous Year Periods in 1963 Full Full Half-Year Quarter-Year Year Year Commodity 1962 1963 Jan-Jun Jul-Dec Jul-Sep Oct-Dec Based on agricultural raw materials Cotton fabrics 0.8 3.2 0.5 7.8 8.3 8.3 Woolen fabrics 3.2 0.4 -1.7 2.5 2.5 2.5 Linen fabrics -1.7 5.0 3.6 6.5 9.4 4.1 Silk fabrics 15.3 1.8 8.4 -4.1 -3.4 -4.7 Leather footwear 3.0 1.5 0.4 2.5 2.7 2.3 Meat d/ 13.1 13.0 21.4. 8.8 16.7 4.5 Milk products d/ 2.2 2.2 2.1 2.2 4.0 0.0 Butter d/ 6.3 -7.0 -6.9 -7.0 -2.7 -18.3 Vegetable oil d/ 17.6 5.0 7.0 0.0 0.0 0.0 Canned goods 6.6 8.2 9.1 6.8 7.4 6.7 a. Unless otherwise indicated, both annual and quarterly rates of growth are computed from output data expressed in physical units. The rates of increase by half-years and quarters for 1963 reflect changes in absolute levels of output in 1963 compared with absolute levels of output within the corresponding period in 1962. Because the published data for periods within a given year are rounded (in physical units or ruble values of out- put) and because of the possible undetected revision of quarterly produc- tion data for the preceding year, an error of plus or minus 2 percentage points may be introduced in the output of any one commodity. Output data (expressed as absolute quantities) are published quarterly during the year. Significant official revisions of the quarterly produc- tion data for 1962 could be detected because of the publication during 1963 of quarterly performance data. Thus the cumulative measures of abso- lute output published for the four quarters of 1963 were related to the cumulative production of 1962 by means of index numbers. If a comparison of cumulative indexes of growth indicated that revisions had been made in the official data, the data on absolute levels of output, originally pub- lished in 1962, were adjusted. S-E-C-R-E-T Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 S-E-C-R-E-T USSR: Rates of Growth in Production of Industrial Commodities 1962-63 (Continued) The rate of increase in output for the year 1962 compared with 1961 was computed from unrounded production data appearing in the statistical yearbooks. The rate of increase in the full year 1963 was computed from production data (rounded) published in the announcement of plan fulfill- ment (Pravda, 24 January 1964) and the unrounded data appearing in the annual yearbook (Narodnoye khozyaystvo v 1962 g.). These rates of change were computed to the nearest tenth of one percent. If on rounding these percentage rates of change for the full year 1963 to the nearest full per- centage point, it was found that the increases did not correspond to rates of growth recently published in the announcement of plan fulfillment (ex- pressed in full percentage points) the computed percentage was rejected and the published percentage increase (rounded) was used. This "rounding" procedure for the full year 1963 was found to be necessary for 17 of the 62 commodity categories used in constructing the indexes in Table 1. b. The electric power industry (central supply) produces 95 percent of the urban supply of electricity. The remaining 5 percent of the supply in urban areas is generated by small subsidiary plants attached to indi- vidual enterprises. In addition, about 5 percent of total production of electricity is produced by small generating stations in rural areas, mostly in agricultural enterprises. C. Percentage change computed from output expressed in rubles. d. Excluding production of collective farms and individual households. Approved For Release O6b%W7T CIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 : c1AJ 2p,,z9 E 1003A001900150001-4 a. The rates of growth indicated in Table 1 show the change in out- put for each period in 1963 compared with production within the same period of the previous year. For example, the 6. 3-percent increase in industrial materials in the third quarter of 1963 is a rate of growth re- flecting change in output for that quarter compared with the absolute level of output in the third quarter of 1962. b. The following commodities are excluded from the rates of growth for the third and fourth quarters (data available only for semiannual periods): Civilian machinery -- metallurgical and oil equipment, generators for turbines, and sewing machines. Consumer goods -- confectionary products and knitted wear. c. The sample of commodities included in Table 1 cover the follow- ing percentages of the total value of output (final sales) of commodities in- cluded in the ORR civilian industrial index -- industrial materials, 66 per- cent; civilian machinery, 78 percent; and consumer goods, 71 percent. These are shares of the total commodity coverage, often for broad cate- gories, such as coal., and do not reflect changes in the relative shares of output within a commodity group, such as for bituminous and lignite. The rates of growth for 1962 over 1961, derived by use of the limited sample of commodities used in Table 1, can be compared with rates of growth computed from the ORR indexes, which have more exten- sive coverage, as follows: 1962 over 1961 Industrial materials 6.5 7.0 Civilian machinery 8.7 9.7 Consumer nondurable goods 5.7 5.7 S-E-C-R-E-T Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 : CIA-RDP79T01003A001900150001-4 S-E-C-R-E-T d. Output indicators are shown in Table 2 for most of the commodi- ties included in Table 1. 2. Element of Seasonality in Soviet Industrial Growth The analysis in this publication of trends of industrial output over the past 2 years has been based -- appropriately -- on a comparison of levels of output for the same period of time in the 2 years under review. An alternative method is to compare rates of change in output for a given period of time over the preceding period -- for example, change in abso- lute levels of output in the last 6 months of 1963 compared with output in the first 6 months of 1963. The "same period" approach is more appropriate for the present analysis because it eliminates, to a certain extent, the seasonal effect on production. As indicated in Table 3, the strongest seasonal element in Soviet industrial production is -- as would be expected -- in changes in the levels of output of processed foods. But an element of seasonality also is present for industrial materials and civilian machinery. This tends to result (in any given year) in a predominate share of growth in industrial materials in the first half of a year -- but in civilian machinery, in the last 6 months of a year. As noted on p. 2, above, there were indica- tions of a possible slowdown in the rate of expansion in the first half of 1963, possibly caused in part by the severe weather in early 1963 and because output of civilian machinery did not maintain its usual seasonal pace in the first half of 1963 (see Table 3, below). But because the expansion of in- dustrial materials required to support the machine building sector appeared to be holding up well for the first 6 months of 1963, it was believed that output of civilian machinery during the last 6 months would result in an over-all annual rate of increase comparable to that of recent years. Table 3 gives the average rates of change by 6-month period compared with the previous 6-month period for the years 1959-62 and presents a comparison with the performance for the same period of 1963. Approved For Release_20001 4A7T CIA-RDP79T01003A001900150001-4 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 S-E-C-R-E-T Semiannual Rates of Growth of Soviet Output for Three Major Components of Industrial Output Percentage Change First 6 Months of Year Last 6 Months of Year over Last 6 Months of over First 6 Months of Preceding Year Same Year 1959-62 1959-62 Industrial Category Average 1963 Average 1963 Processed foods -34.2 -20.2 52.6 34.1 Industrial materials 5.9 6.6 o.6 -1.0 Civilian machinery 3.6 1.8 7.0 5.4 S-E-C-R-E-T Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 ~ 4cR[AP-T_9T01003AO01900150001-4 It is possible that the low rates of growth for the three major com- ponents of civilian industrial production in the fourth quarter of 1963 were the result of relating a recent level of absolute production to a base -- same period of time in 19.62 -- which, in turn, reflected an abnormally high rate of increase. For example, the annual rate of growth in 1962 in the production of rolled steel (7. 4 percent above that of 1961) possibly obscures wide fluctuations in the quarterly rates of growth during the year. Thus the rate of increase for the fourth quarter of 1962 may have been much above the annual average or, alternatively, higher in relation to the annual average than usual. Deriving a rate of increase in the fourth quarter of 1963 by relating absolute levels of out- put for the same quarter in 1962 and 1963, therefore, possibly could lead to spurious results. An examination of the data on rates of growth in output for 1962 com- pared with 1961 (both annually and quarterly) leads to a rejection of this element as an important factor. Of the 49 commodities for which the relevant data are available, the rate of growth in the fourth quarter of 1962 (over the same quarter in 1961) can be compared with the annual rate of growth for 1962 (over 1961) as shown in Table 4. Table 4 Divergence Between the Rate of Growth in Output for 1962 (Full Year) and Fourth Quarter of 1962 over Same Periods in 1961 Number of Commodities Annual rate of growth more than 1 percentage point above rate of growth in 4th quarter 18 0 to 1 percentage point above 9 Annual rate of growth more than 1 percentage point below rate of growth in 4th quarter 16 0 to 1 percentage point below 6 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 S-E-C-R-E-T As shown in Table 4, there does not appear to have been a significant distortion in the pattern of growth in the fourth quarter of 1962 compared with that for the full year. Thus the computation of rates of growth for 1963 over 1962, as computed in Table 2, probably is not biased as a result of this effect. To carry out a more complete demonstration of the lack of a possible statistical aberration in changes in the rates of growth in the fourth quarter related to that of previous years, the above analysis should be carried back to 1960. Although such a statistical presentation is not undertaken, a visual inspection of patterns of growth for years before 1962 suggests no divergency from the pattern indicated in Table 4. Weather conditions are a cyclical element that can dampen substan- tially the rate of growth in industrial activity over the period of one quarter. The extremely cold weather of the early months of 1963, for example, apparently was a contributing factor to the slowdown in the first quarter in industrial activity in Western and Eastern Europe and in the USSR. An inspection of weather data for November and December of 1962 and 1963 does not suggest this element as a disturbing factor in levels of Soviet industrial output. Temperatures in November for both years were well above normal for the country as a whole; in December of both years temperatures were below normal, but colder in December 1962 than December 1963. In both years the magnitude of the tempe.xa- ture differential (compared with normal) was not enough to have the depressing effect on industrial output that occurred. Analyst: 25X1A S-E-C-R-E-T Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release & ` Y : CIA-RDP79TO1 003AO01 900150001-4 SECRET Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Analyst: A/U Approved For Release 2000/04/17 : CIA-RDPX1ao3A'Oc15 150 1~~ ; t r` ' t W' AM) cl . r'?_?R SECRET 33 34 83 213230 165 166 _.___ 167 168 - 171 172 173 ' 4 - 176 17 177 178 179 180 181 182 183 184 - 186 CIA/RR CB._64-20 March 1964 AD /.RR DAD/RR A/U 187 OB /HRG/CGS, 3F30 188 - 190 Filed in St/P/C /e- 4. Hq It 16 Mar 64 16 Mar 64 25X_1A 25X1 C 25X1A 25X1A 25X1A SAOUP 1 ExcIudld from uutomatk dowsgrrldtng i d doelossittcs lon 25X1A ` e 50001 2~ ~ & 10 X1 A 25X1A 25X1A ' ' ' ~ Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 Approved For Release 200$ : CIA-RDP79T01003A001900150001-4 SUBJECT: Distribution of Current Support Brief No. 64-20, Further Slowdown t Industrial Growth in the Last Quarter of 1963 --- March 1964 (SECRET) Copy No. Recipient 1 O/DDI, Room 7E32, Hdqtrs. 2 - 3 NIC 4 - 12 OCI Internal 13 - 15 ONE 16 - 21 St/CS/RR 22 O/DDI - Cheater Cooper 23 - 31 25X1A 32 NSAL 33 - 230 ORR Distribution, St/A/Document Support Section, Room GH0915, Hdgtrs. (sent direct to St/A/DSS, 13 Mar 64). (Distributed by OCR) GRDUP 1 Excluded from avtomatlc 7 : C-dDai 7 Approved For Release 2 NIT I 101003A001900150001-4 SECRET. trial Growth in the Last Quarter o Slowdown in Soviet Indus 196 SECRET N Recipient o. Copy 33 AgkiaR 128-137, 156-159 DIA, DIAAQ- 3, Arlington Hall Station , ? f~ 23 . ZOAWM St/P/A a it 35 Ch / E U 163 St/PR 36 - 40 DIA (1 each branch) 41 - 46 D/MS (1 each branch) 47?- 52 D/R (1 each branch) 53 - 60 D/M (1 each branch) 61 -69 17/I (l each branch) 70 - 71 D/GG 72 - 73 D/GC 74 D/GC/X 75-SO RID/AN, Unit 4, Room 1B4004, Hq. 81 St/FM 33 tltSrw=k S$ 82 GR/ CR 84 BR/CR 85 FIB/SR/CR. Room 1G27, Hq. 86 Library/ CR 87 IPI/ CR 88 VMR, A-18 89 AD/ 00 90 Chief, FDD 91 CDIOO 92 OCI/RP/PS, Room 7G15, Hq. 93 DDI/CGS, Room 7F35, Hq. 94 DDI/CGS/HR, Room 3F30, Hq. 95 - 97 OSI 25X1A 98 OBI OTR/SIC) (1 d 99 - 100 g. OTR/IS/IP Room 532, Broyhill Bl 101 10Z NPIC/CSD/REF, Room 1S518, MOM Classified Comman dant Nat'l War College, Ft. Les ie McNair, Attn: , 25, D. C. Records Section, Rm. 26, Nat'l. War College Bldg., Wash.. 103 - 113 ACSI/Army, Room 1C460, Pentagon 114 - 177 Navv. Director, ONI, Room 5B659, Pentagon 138 - 139 o 4D825, Pentagon Asst. Secretary of Defense, S ildi 140 - 143 ng, Room USIA, Warren Phelps, WalkepJohnson Bu 1734 New York Avenue, N. W. Bld D t 144 - 155 g. . ep State, INR Communications Center, Room 7818, State 160 - 161 162 Dr. Neilson Debevoise, NSC, Room 3b5, x:xecuzave vatic. c y~?i~??$ Frank M. Charrette, Agency for International Development, Chief, ... w N.U. 7 Statistics and Reports /a ision, ------- `_ -URjUP 1 5-190 ~ pi atGFOM ei ,6l20W1o 4Vd:ic1* ~'79tb 1k6b19 6gq TR!jV 1-212S9tx c' 8O Records Center ~ l,L 1 Approved For Release 2000/04g,7, : -RP 7 %TVQp j&401900150001-4 St%A/DSS Distribution of Current upport e f 1963 March r*r Approved For Release 20 g A :CIA-RDP79T01003A001900150001-4 18 March 1964 MEMOPtANDUM FOR: Chief, Dissemination Control Branch, DD/CR FROM : Chief, Publications Staff, C RR SUBJECT : Transmittal of Material It is requested that the attached copies of CIA/RR CB 64-20, Further Slowdown in Soviet Industrial. Growth in the Last Quarter of 56 3., March 19642 Secret, be f orwar ed as follows State, INR Cc munications Center.. Rogan 7818, State Dept. Bldg. For Embassies in Berlin, Moscow, Bonn, Frankfurt, London, and Paris 25X1A Attacbments: Copies #188, #191 - +195 of CB 64-20 cc: CGS/RB ET The dcrser,nation re.,ur ;[,; J by this memor ndum has been completadi OY: fJ zf ?ate-l / e Approved For Rel 00'; ~` DP79T01003A001900150001-4 Og ~ i^i~2 Soy 60 Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4 yrojerct No. 14.5102 Report Series CIA/RR CS 64-20 of 1963 (SECRET) 'eponsible Analyst and Branch A/U RECOMMENDED DISTRIBUTION TO STATE POSTS 14.triin, Germany flacharest, Romania Rt.dapest, Hungary -Moscow, USSR 1-'rague, Czechoslovakia rufia., Bulgaria Warsaw. Poland Ir3eigrade:. Yugoslavia ern. Switzerland lonn, Germany tlrusseLs, Belgium Copenhagen, Denmark - ? rankfurt., Germany. Geneva, Switzerland. ?1elsinki, Finland The Hague? Netherlands Lisbon, Portugal 4,,ondon, England Luxembourg, Luxembourg Madrid. Spain Oslo, Norway "iris, France I:tome, Italy Stockholm, Sweden Vienna, Austria 'acific 'Wellington, New Zealand Manila, Philippines Canberra. Australia Melbourne, Australia Far East Bangkok, Thailand Djakarta, Lndonesia. Hong Kong Rangoon, Burma Kuala Lumpur. Malaya Saigon, Vietnam Seoul, Korea Singapore, British Malaya Taipei Formosa Tokyo, Japan Vientiane, Laos Phnom Penh, Cambodia Colombo; Ceylon Near East & South Asia Ankara, Turkey Athens, Greece Cairo, Egypt Damascus, Syria Kabul., Afghanistan Karachi, Pakistan New Delhi, India Nicosia, Cyprus Tehran, Iran Baghdad, Iraq Tel Aviv, Israel Beirut, Lebanon Amman, Jordon Jidda, Saudi Arabia Ottawa, Canada. Mexico Guatemala Panama B.razillia, Brazil Buenos Aires,; Argentftia Bogota, Colornbi.a Santiago. Chile La Paz., Bolivia. Montevideo, Uruguay Caracas, Venezuela Africa Yaonde, Cameroun .Leopoldville, Congo Addis Ababa, Ethopia Accra? Ghana Abidjan. Ivory Coast Nairobi, Kenya Monrovia, Liberia Tripoli, Libya Rabat, Morocco Lagos, NigerV4 Mogadiscio, Sonial Khartoum, Suc;arj Tunis, Tunisia Pretoria, South Africa Algiers, Algeria Cotonou, Daho.ney Dakar? Senega.t, Bamako, Mali 25X1A GROUP I Approved For ReleSC( 0/ /dl anatat DP79T01003A001900150001-4 ae-uctttration 'itle Further Slowdown in Soviet Industrial Growth in the Last Quarter Apq fpKekS,?LIeAe see 200Q/04~,/ 7O CIA RDP 9 01 03A001900150001-4 `.it bjee t _G'/,1/ C% ~y Q AAnalyst and Br nc unedited draft Z `E dited draft ")ther a. Text check ha Sou, ce check c. Releasable to. 25X1A /; low-t- I/W 11,1xw, / ' 25X1 C 25X1 C 25X1 C / 91 i sent to. AD/RR Fier to D:Dx 3 necked for release 3L/PSD notified to Disse.-mir-ate Firs' - - - /,,- ~-), downg:;-acing ;r:id decias ificahi I d l Approved For RoIease 2000 04/1 ` a-If9f3jO-f t 0 4 25X1A Approved For Release 2MQ4I17 : CIA-RDP79TO1003AO01900150001-4 2'-7v7 a~ g~ Otis- . 25X1 C Approved For Release 2000/04/17 : CIA-RDP79TO1003AO01900150001-4