IMPASSE IN SOVIET ECONOMICS

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP81-01036R000100120029-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 2
• Document Creation Date: December 22, 2016
• Document Release Date: September 17, 2012
• Sequence Number: 29
• Publication Date: February 3, 1954
• Content Type: REPORT

RHIN
Declassified in Part - Sanitized Copy Approved for Release 2012/09/17: CIA-RDP81-01036R000100120029-7
U.S. Officials Only 50X1-HUM
SECRET
*
,;FITRAL INTELLIGENCE AGENCY
INFORMATION REPORT
COUNTRY USSR
SUBJECT impasse in Soviet Economics
ITHIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES, WITHINTHEMEANING OF TITLE IS. SECTIONS 793
AND 794. OF THE U.S. CODE. AS AMENDED. ITS TRANSMISSION OR REVE-
LATION OF ITS CONTENTS TO OR RECEIPT SY AN UNAUTHORIZED PERSON IS
PROHIBITED BY LAW. THEREPIDDUCTION OF THIS REPORT IS PROHIBITED.
THIS IS UNEVALUATED INFORMATION
DATE D I STR .5 PER k 954
NO. OF PAGES
NO. OF ENCLS.
SUPP. TO
REPORT NO.
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1.
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serious trouble the soviet
autnorities are having in thereendeavors to stave off agricultural 6Isastf?,r.
2. All ofithrushcheAt's !gyni4a,s4c oratory" dues not serve to cover up the real
situation. That situation will be revealed as catastrophic, unless there ;.re
very large importation,sof dairy produCtS, meat and canned food. Thr7, will be
paid for in gold.. Since the end of summer 595377, they have been urgently needed.
The veritable exhaustion of agricultural production i6 emphasized by .ne
shortage of beef cattle. All this is very likely to prevent the raising of the
Soviet standard of living, which Malenkov has been promising ever since he came to
power.
3. The official statistics are false. It can now be proved that the reduetier in
prices (due entirely to demagogic purposes) in the Spring of 1953, has mrely-nac
the lack of balance between supply and demand even worse. It is true that
importations from beyond the Soviet "glacis" and intensified spolition of the
Satellite states have partly met the_difficulties. But only partly. Incidents ere
still taking place, which are due to the increase in the workersf purchaeing power,
Inadequately covered by production of definitely Soviet food products. it was
therefore natural that there should be another state loan, to drain off the intas&,J.
purchasing power granted the proletarians. The increase was thus granted with
se
hand,- while it was being wiped out with the other. .
U.S. Officials Only
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40100111
DISTRIBUTION ? ESTATE [ARMY I I NAVY j
AIR FBI
I I MR EV I I
This report is for the use within the USA of the Intelligence components of the Departments or
Agencies indicated above. It is not to be transmitted overseas without the concurrence of the
originating office through the Assistant Director of the Office of Collection and Dissemination, CIA.
Declassified in Part - Sanitized Copy Approved for Release 2012/09/17: CIA-RDP81-01036R000100120029-7
Declassified in Part - Sanitized Copy Approved for Release 2012/09/17: CIA-RDP81-01036R000100120029-7
SECRET .
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4. Despite theseempirical ak,tempts, the situation had not really iwproved a, the
beginning of the winter of 1955 and 1954. The "tapping" uf the Satellites ,,an
hardly be started all over again, especially since the revolt in east .ermany
and the uproar in Czechoslovakia and Hungary. It is even said that it has been
necessary to slraw up on the ration reserve of th Soviet Armu, in order to restock
the State cooperatives. The fact that the Army's enuance oervice had to replace
these supplies, explains the hasty negotiations so as to vet
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supplies of frozen and canned meat. A special ministry for stockpiling was
recently set up under Leonid Korniets, a deputy member of the ,;entral Committee.
This shows how seriously the Soviet Government regards the matter.
5. However that may be, the failure of forced collectivization appears in the urgency
of governmental measures, decreed primarily to cover up the collapse of agricultural
policy. This collapse has been especially clear in cattle breeding.
6. Peasant passivity, not to say resistance, has made the fiercest kolkhozians recoil.
The proposed "agrovilles," or super cities based-on.tleA,-011s-hdzee., beeeLning
to disappear into the silences. No one accuses even the i:alaks ?r ;eying
sabotaged them. The regime is always having to appeal fur peasL.le o will
work well, plant, harvest, and deliver their production without cr.4c1fcery. "r.is
fact, in itself, shows that passive resistance is being practiced and that
coercive measures are not adequate to Vreak the ill will of the pet.Ints. 50X1 -HUM
SECRET
Declassified in Part - Sanitized Copy Approved for Release 2012/09/17: CIA-RDP81-01036R000100120029-7