EFFECTIVENESS OF THE WESTERN EMBARGO

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP82-00457R012100280005-6
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 1
• Document Creation Date: December 14, 2016
• Document Release Date: April 3, 2003
• Sequence Number: 5
• Publication Date: May 19, 1952
• Content Type: REPORT

Approved For Release 2003/08/15 : CIA-RDP82-00457RO12100280005-6
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FEI 1952 s>~sM
CENTRAL INTELLIGENCE AGENCY
25X1
REPORT REPORT NO.
CCR
DO NOT CIRCULAR'E I-
SUBJECT Effectiveness of the Western Embargo
COUNTRY Hungary/Rumania/Austria
NO. OF PAGES
25X1 DATE OF
INFO.
PLACE
ACQUIRED
THIS DOCUMENT CONTAINS INFORMATION AFFECTING THE NATIONAL DEFENSE
OF THE UNITED STATES, WITHIN THE MEANING OF TITLE 18, SECTIONS 793
AND 794, OF THE U . S . CODE, AS AMENDED. ITS TRANSMISSION OR REYE-
2 cJ LAY ION OF ITS CONTENTS TO OR RECEIPT BY AN UNAUTHORIZED PERSON 15
v PROHIBIT ED BY LAW. THE REPRODUCTION OF THIS FORM IS PROMIBI TED.
25X1
a. The embargo is becoming less effective as the Satellites find new channels
for the procurement of goods from the West. The inability to establish
hard-currency letters of credit abroad, is canceled by hard-currency
payments to the suppliers through the Satellite legations in the West.
b_ There are new industries in Hungary and Rumania which are producing
goods not available from the West during the first half of 1952. The
ball-bearing industry, for example, has been expanded. An estimated
85 per cent. of the Hungarian and Rumanian requirement is produced
locally. The Hungarian and Rumanian industries are assembling their
own races and cages with balls received from Sweden and Holland. They
also have no trouble in procuring ball bearing wire.
2. Solti, in stressing the coming danger to the Austrian economy when the
embargo is lifted, said that Austria will lose a natural outlet for finished
goods since Hungary is successful in turning to more satisfactory suppliers.
CLASSIFICATION SEC$E
NO. OF ENCLS.
(LISTED BELOW)
SUPPLEMENT TO
REPORT NO,
THIS IS UNEVALUATED INFORMATION
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19 May 1952
1. The Hungarian Commercial Attache in Vienna is reported to have
said in reference
trad r embargo on Satellite
.
STATE x
ARMY I x
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Approved For Re ease - - 100280005-6