THE HUNGARIAN PRICE-EQUALIZATION FUND

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R007000320007-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 19, 2016
• Document Release Date: February 2, 2006
• Sequence Number: 7
• Publication Date: March 12, 1951
• Content Type: REPORT

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SUB,JECT The -oitrgnrian Price:-Equalization Fund NO. OF PAGES I
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NO, OFENCLS..
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO,
THIS IS UNEVALUATED INFORMATION
1. The IIui?.gar an trice Equalisation Fund (Arklegyenlitesi Alap) exists for the
25X1 purposes of reimbursing Hungarian exporters for any adverse rrargin between
the pr ce paid by the foreign purchaser and converted at the fixed rate of
exch~.n~e, and the sun of the productionr cost and the producers o and exporters e
profa tr,, The fund is also used for increasing the remuneration resulting from
arw e:: .orts to satel7.i.te countries which are not covered by trade treaties.
2. The Price -Equalizing Couiiittee, which administers the funad, meets weekly in
the Fu.ig-trian 21in:istry of Foreign Trade and consists of he following, two
delegates from the Ministry of Foreign Trade (usually Barabas and Somkuti);
one from the Finance Division of the Ministry of Foreign Trade; and two from
the fiungnrian National Bank. The delegate from the Finance Divisr.onu who is
also the Cor :iunis-'.- I trty l s representative, has the decisive role at these
meetings.
3. The Gon i i !tee s policy varies with day-today Hungari an requirements of individual
foreign currencies, and i-r_th different Hungr rian industries.
4, An increase in remuneration to the exporters of about 100 percent of the foreign
exchanbs earned, and converted at the o:i`ficirl ra:te9 can usually be relied on
when hard currency is involved, but the fund has on. occasions (e.g.. on the open-
ing of new markets) extenc7er-i itself to 2 percent? For Hagyab K ? forgalmi a s
(Ilungir tan ~.xport Thad s Corp.) business with . estern countries a figure of
160 ,-)ercent was usual.
5. Before -projected deals are submitted to the Committee for, pricing;, they first
have to be approved as desirable by the Export Committee Kiviteli Bizottsag),
which consists of ti ee r:ienl ers of the Price Equalizing Cormittee, a delegate from
the Pla.::lning Corinittee, and one from the Ministry for Light industry or the
Ministry for Heavy n.ustry, or both., according to the types of exports under
discussion.
Doct;me'll PC
No
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'._ 1.2 JUL 1978
STAYS
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CIA-RDP82-00457R007000320007-6
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