ECONOMIC INTELLIGENCE WEEKLY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001500150006-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 17
• Document Creation Date: December 22, 2016
• Document Release Date: September 28, 2009
• Sequence Number: 6
• Publication Date: February 7, 1974
• Content Type: REPORT

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Secret
Economic Intelligence Weekly
LOA COPY
Return to DS13
_ R 1107, 11q,
Secret
CIA No. 7925/74
7 February 1974
Copy N? 199
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Banner Agricultural Year Spurs Soviet Economy Real GNP was up
8%, with record harvests leading the way.
US-Bulgarian Trade: The Opening Wedge' US trade with Easter,,
Europe's most Soviet-oriented economy increased by 7.5"x, in 1973.
US-China Trade: Up, Up, and Away! Trade has jumped from only
$5 million in 1971 to .$755 million in 1973.
Eastern Europe Needs Less US Grain A brnnpcr grain harvest and
increased imports from the USSR coca,, lower purchases front the
United States.
Monetary and Fiscal Policy in Major OECD Countries Tight
policies persist in spite of economic slowdown.
Mexico: Growth Prospects Still Enviable Anti-inflationary policies
will brake strong economic expansion.
China: Dry Weather Threatens Winter Crops
Soviet Defer All US Wheat Shipments
Capital Controls Relaxed in Europe
Publication of Interest
Summary of a Recent Publication
Comparative Indicators
Recent Data Concerning Domestic and External
Economic Activity
The oil situation is now being covered mainly in
International Oil Developments, Published each
Friday morning.
Page
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ECONOMIC INTELLIGENCE WEEKLY
Articles
BANNER AGRICULTURAL YEAR SPURS SOVIET ECONOMY
The USSR's year-end claims, published last week, show that the
economy recovered sharply from the dismal performance of 1972. Among
the achievements in 1973 were
? a real economic growth rate of about 8%;
? record harvests of grain, potatoes, vegetables, sunflower
seeds, and cotton;
o recovery of industrial growth from the slowdown of 1972:
? marked increases in the availability of consumer goods,
especially food.
The spurt in GNP reflects largely the comeback of farm output, from
a drop of 7% in 1972 to an increase of 1 5% in 1973. Exceptionally good
weather and greater supplies of chemical fertilizers were mainly responsible.
The record grain harvest, following on massive imports, will enable the
Soviets to rebuild stocks and even to export grain outside the Communist
area.
Machinery production grew by 8`h to lead the advance in industry.
Output of industrial materials increased by 5.5%I~ and production of
consumer nondurables by 3.3%. Growth in energy production slowed
somewhat as the depletion of older oil and gas regions intensified; as time
passes, more and more investment in new capacity is required merely to
maintain previous levels of output.
The chronic problems of slow assimilation of new technology and
delayed completion of new facilities persisted in 1973. Nevertheless,
programs to curtail the proliferation of new construction projects and
concentrate investment in projects nearing completion were more successful
than usual. Gross additions to new plant and equipment increased at nearly
i.wice the previous year's rate, while the increase in unfinished construction
dropped from 1310 to less than 3%.
Soviet consumers benefited from substantial increases in food
supplies - especially fruits, vegetables, and dairy products. With the help
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of the grain imports, the leadership managed to maintain meat consumption
at about the 1972 level. Production of soft goods and certain consumer
durables -- notably furniture and television sets - grew faster than in
1972. Enough housing was built to permit a moderate increase in per capita
living space.
Major aggregates
Real GNP
4.2
1.7
7.9
Industrial production
6.0
5.2
5.9
Agricultural production
0.3
-7.2
15.3
Energy
Coal
2.7
2.2
2.0
Oil and gas
6.9
7.3
6.9
Electric power
8.0
7.1
6.7
Per capita consumption
3.5
1.5
3.7
Food
3.2
0.1
3.9
Soft goods
3.3
1.3
2.1
Durable goods
4.2
6.0
5.3
Housing
2.3
2.4
2.1
Investment
New fixed investment
7.2
7.1
4.0
Gross additions to Fixed
capital
6.3
3.4
7.7
Volume of unfinished
construction
10.3
12.6
2.8
Soviet trade with the developed West increased by one-third in 1973,
after a 25% increase in 1972. Trade with the West exceeded $9 billion
and again featured large imports of machinery and grain. The Soviet hard
currency deficit of $1.7 billion exceeded the previous record of $1.4 billion
set in 1972. The USSR financed these deficits by selling about $1.3 billion
in gold in 1972-73 and by drawing on Western credits for the remainder.
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US-BULGARIAN TRADE: THE OPENING WVEDGE*
US trade with Bulgaria -- Eastern Eu!rope's most Soviet-oriented
economy - increased about 751/0 in 1973 and should continue to rise in
1974. Longer term prospects have brightened as a result of new trade
contracts and a recent agreement with Kaiser Industries.
US exports grew considerably faster than imports, boosting the export
surplus to $2 million. Cigarettes, dried beans, and iron and steel plates and
sheets accounted for almost one-halt' of the exports. The bulge in exports
in 1970 reflected a large order for coke and other fuels. Rose oil, paprika,
and the^se make up about one-half of US imports.
Visits last year by Deputy Ministers of Foreign Trade Lukanov and
Peev underscored Bulgarian interest in US products and credits. American
Can Co. signed a cooperative technology agreement, and million-dollar
contracts were awarded to IBM and to the Farm Machinery Co. of
California. The agreement between Bulgaria and Kaiser Industries has the
greatest potential for expanding US-Bulgarian economic relations. Kaiser
signed a memorandum of understanding on 26 January calling rot studies
on a number of high-priority projects, including a I 2-million - ton steel
complex, a large cement plant, reconstruction of port facilities, and possibly
an aluminum combine. Kaiser offered to seek financing for the projects.
Sofia also has ambitious play- for the chemical and farm sectors, which
will require Western assistance.
Some projects could be held back by Western misgivings about
Bulgaria's debt position. The debt service ratio in hard currency
transactions - approximately 40% -- is one of the highest in Eastern
Europe. Moreover, if Bulgaria has to turn to the West for increased supplies
of oil, basic chemicals, and other raw materials, foreign exchange problems
will be further aggravated.
US-Bulgarian Trader
1965
1970
1971
1972
1973
US exports
3.6
15.3
4.4
3.4
6.5
US imports
1.7
2.4
2.6
2.9
4.5
US trade balance
1.9
12.9
1.8
0.5
2.0
with the East European countries.
~3E- ~F ~F 9F
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US-CHINA TRADE: UP, UP, AND AWAY!
US-China trade jumped f'rolll only $5 million in 1971 to $95 million
in 1972 and to $755 million in 1973. It could reach the billion dollar
mark in 1974.
The United States replaced Hong Kong last year as China's nunlber
two trading partner, behind Japan. US exports of almost $700 million
consisted primarily of agricultural products.. Other exports included
Boeing 707 aircraft and scrap metals. China sold the United States
$65 million worth of light manufactures and specialty products.
Commercial relations on an institutional level also progressed in 1973:
? liaison offices were established in Peking and Washington;
? US representation at the Fall Canton Fair reached a new
high with 250 businessmen representing 130 firms;
? the Chase Manhattan Bank of New York established a
correspondent relationship with the Bank of China;
? the National Council for US-China Trade, a private group
composed of major American corporations, sent its first
official delegation to China;
? China's counterpart. the China Council for Promotion of'
International Trade, agreed to a return visit some time this
year.
We expect further substantial expansion of US-China trade in 1974.
Poking already has signed contracts for 4.6 million tons of US grain for
delivery in 1974, compared with 4.1 million tons delivered in 1973. Exports
of American machinery and equipment also are expected to be higher this
year than last year. China will import additional Boeing 707s and equipment
for the petroleum, mining, and machine tool industrics. Machinery for eight
American-made ammonia plants, worth $200 million, will start flowing into
China this year, and the United States will supply technology and equipment
for many of the $1 billion worth of industrial plants China ordered front
Japan and Western Europe in. 1973.
The level of trade beyond 1974 will depend heavily on China's import
needs for American agricultural products. Peking turned to the United States
because of poor harvests and worldwide shortages of grain. China, which
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has grain contracts with Canada, Australia, and Argentina extending through
1976, plans to rely on the United States only as a contingency supplier.
Even so, domestic and international agricultural developments could easily
force Peking to continue substantial purchases from the United States.
The United States will remain a major supplier of high-technology items
because of the involvement of US firms in existing Chinese contracts and
the evident interest of Peking in spurring industrial modernization.
US-China Trade 1
January-October 1973
Million US $
US Exports
US Imports
Total
440.9
Total
Wheat
213.7
Manufactured goods
Of which:
Corn
83.7
Cotton fabrics
4.8
Tin and tin alloys
4.0
Works or art
4.3
Cotton
54.0
Aircraft
20.6
Raw materials
Scrap
19.2
Of which:
Raw silk
4.0
Soybean oil
17.9
Animal materials
5.4
Soybeans
9.4
Chernical products
Other
22.4
(including fireworks,
oils, and resins)
Foodstuffs
(including spices, nuts,
tea, and fruit
Miscellaneous items 6.9
Although purchases of Chinese goods will continue to rise, the US
export surplus will remain large for some time. Chinese exports are
hampered by supply problems as well as problems of meeting the styling,
packaging, and labeling requirements of the American market. Higher tariff
rates on Chinese exports resulting from lack of MFN status, although
irritating to PekinQ_ have yet to be a major constraint on trade expansion.
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EASTERN EUROPE NEEDS LESS US GRAIN
Last year's bumper harvest and increased imports from
reduce Eastern Europe's demand for US grain in FY 1974.
Agricultural production in EASTERN EUROPE
Eastern Europe in 1973 was up Imports of Grain
for the third successive year. 15
Output rose by 4% on the MIIIIonTons
strength of a record grain har-
vest of nearly 74 million tons
and a boost in livestock produc-
tion. On the minus side, 10
important non-grain feed crops Total
were reduced by late summer
drought. The northern coun-
tries will need about 8 million other
tons of imported grain to assure
'`~,
x~
continued growth in livestock 5 r--.
production. But Eastern us
Europe's net imports of
grain USSR
will drop from about 7 million
to 6 million tons because of
larger exportable surpluses in
Bulgaria, Romania, and Hun- 196,9 66 67 68 69 70 71 72 73 74'
FY Prolim.
gary. ?Forecasl.
5020002-74
The USSR - coming off a bumper grain harvest - is expected to increase
deliveries to the northern countries by 1.2 million tons this fiscal year. Imports
of Western grain by these countries thus can drop by a similar amount.
Purchases from t1:, United States are expected to be down by about 700,000
tons, largely in wheat.
To judge from the current status of winter wheat, another record
production year is unlikely in spite of an increase in sown acreage. Soil
moisture levels are nearly 40% below normal in the area from Slovakia south
into Bulgaria, and an inadequate snow cover over most of Eastern Europe has
increased the vulnerability of grain plants to wintvrkill.
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MONETARY AND FISCAL POLICY IN MAJOR OECD COUNTRIES
Monetary and fiscal policies remain tight in six major OECD
countries -- Canada, France, Italy, Japan, the United Kingdom, and West
Germany. These countries are aware of the potential contractionary impact
of sharply increased oil import bills. Nonetheless, they cite other concerns --
inflation, balance-of'-payments problems, and international competitive
position -- in justifying restrictive policies.
Of the six countries, only West Germany has recently taken stimulative
measures, in order to soften the highly restrictive policies of last year. Bonn
has now removed the 1 I 'lo investment tax, liberalized depreciation
allowances, offered incentives for housing construction, and increased
expenditures above budgeted levels. The Bundesbank - still a strong
advocate of a tight money pol.,cy -- is liberalizing loans to hard-pressed
firms.
Canada has continued to adhere to its moderately restrictive policies
of last year. France, Japan, the United Kingdom, and Italy have all further
tightened their policies since November 1973. To curb accelerating inflation,
Paris has imposed various price restraints, squeezed credit, and speeded up
tax collections. Japan raised its discount rate in December and subsequently
announced a 1974 budget calling for slower growth in spending this year
than last year. In response to serious labor problems and supply bottlenecks,
the United Kingdom has taken several steps to dampen demand, including
sharp cuts in government spending and limitations on installment credit.
Italy is considering new tax measures to reduce its fiscal deficit.
As unemployment rates continue to rise, most of these nations can
be expected to take steps to bolster demand some time in 1974. They
mad be tempted, however, to use exchange rate policy rather than fiscal
and monetary tools to stimulate their economies. France, for example,
probably will resist following up its decision to float the franc with
expansionary domestic measures.
MEXICO: GROWTH PROSPECTS STILL ENVIABLE
A shift to restrictive policies probably will cut Mexico's growth rate
in half this year. Expansionary monetary and fiscal policy in 1973 sparked
an 8% rise in real gross domestic product. It also created strong inflationary
forces, which produced an 18% increase in wholesale prices, the sharpest
rate in recent history. The government is switching to a restrictive monetary
policy and an austere budget. As a result, economic growth in .1974 is
expected to slow to 4% or 5%, still an enviable rate, compared with
prospects in most major industrial countries.
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Mexico: Balance of Payments
Jan-Jun
Jaa-Jun
1970
1971
1972
1972
19,13
Trade balance (f.o.b./c.i.f.)
-1,045
-891
-1,052
-392
-619
Services and transfers
122
188
263
111
185
Current account balance
-924
-703
-789
-281
-434
Errors, omissions, and
short-term capital
477
194
214
97
-72
Long-term capital
504
669
790
397
491
Of which:
Direct foreign investment
201
196
215
178
137
Amortization of public debt
-536
-456
-504
-270
-378
Allocation of SDRs
45
40
50
50
Balance of payments
102
200
265
263
Financial developments last year contrasted sharply with Mexico's
long-standing reputation for prudent economic management.
? Federal spending in 1973 exceeded budget limits by $2.3
billion, or 16%.
? Public sector imports rose 70% in the first nine months;
much of the increase reflected capital goods purchases by
decentralized agencies such as the government oil monopoly
and the federal electricity commission.
? The liberalized import policy led to a 45% increase in the
trade deficit, despite a 30% increase in exports.
Declining business confidence in the government's policies
caused a $72 million outflow of short-term capital and an
appreciable slowdown in growth of direct foreign investment
in Mexico during the first half.
? Government borrowing abroad increased sharply, with new
loans in the first half of 1973 nearly equaling the total for
1972.
? The balance of payments registered a $14 million deficit in
the first half of the year, the first since 1965.
? During the second half, the government bad to arrange a
standby credit of $500 million to support the peso in the
foreign exchange markets.
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Mexico: Selected Economic Indicators
Growth of Money Supply Deficit In Merchandisc Trade
Increase in Wholesale Prices
Percent 18.0
562925 2.74
Domestic stabilization efforts will be complicated by the need to slow
imports. Mexico presumably will reverse its liberal import policy to improve
its foreign exchange position. The country does not have the production
capacity to expand exports much further in 1974. Foreign markets probably
would not be available anyway because of the general economic slowdown
stemming from the energy crisis.
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China: Dry Weather Threatens Winter Crops
China's driest winter in recent years may depresF output of winter
crops, which account for one-fifth of China's grain and for one-third of
its oilseeds. From October of last year until mid-January no precipitation
was recorded over much of North China, and South China received only
25%/, to 50% of the nornm. Drought prevails in the central Yangtze Valley,
only partially relieved by rainfall in mid-January. Szechwan Province is the
sole major agricultural region with nearly normal moisture conditions.
Soviets Defer All US Wheat Shipments
Soviet Deputy Minister of Foreign Trade Alkhimov announced on
Tuesday' that shipment of the remaining wheat bought from the United
States will be delayed until the new US wheat crop is harvested. This brings
total deferred deliveries to 1.3 million tons. Alkhimov said that press reports
of his "offer" to resell wheat to the United States were a misinterpretation
of his remarks at a news conference last Monday. He claimed that "at the
present moment, we are not going to supply anyone with grain, except
the socialist countries." (UNCLASSIFIED)
Capital Controls Relaxed in Europe
Capital controls have been relaxed in a number of European countries
in an effort to foster capital inflows and help offset the higher cost of
oil imports.
? Bonn has !owered the cost of foreign borrowing while
doubling the borrowing limit.
? Brussels has suspended the prohibition of interest payments
on non-resident accounts.
? Bern has lifted the ban on foreign purchases of domestic
securities.
? Paris has relaxed restrictions on foreign borrowing and
lowered the cost to French banks of accepting non-resident
deposits.
These moves reverse the rend toward greater regulation of capital flows
evident during the financial crises of 1973
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(CIA ER IR 74-2. February 1974,
Soviet Economic and Technological 13eneli+s from Detente
US-Soviet detente has brought a succession Of economic and
technological benefits to the USSR: grain to offset a crop failure, access
to technology and equipment previously denied, and long-term credits to
finance imports. Moscow will bencl'it still further if it can acquire key
military-related technology under the umbrella of detente.
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DOMESTIC ECONOMIC INDICATORS
GNP'
A
A
l
WHOLESALE PRICES
verage
nnua
Cunstunt Market Prices
Growth Rate Suite
Iminsitial
Average At nue
Growth Role Since
Poicuill change
latest train Previous I Year thevinus
Dustier Quarter 1910 Earlier Quarter
Percent Change
Latest Iron Previous
Month Month
I Year 3 Months
1970 Earlier Earlier
United States
7J III
I 0.9
6.0
5.7
3.7
United States
Doc 73
6.0
16.0
32.0
Japan
73 III
0.5
8.5
10.0
2.0
Japan
Doc 73
8.9
29.0
61.0
West Germany
73 III
3.3
5.3
0.5
West Germany
Doc 73
5.3
0.8
11.0
France
73 11
0.2
8.7
7.9
Franco
Nov 73
8.6
19.9
27A
United Kingdom
73111
4.5
11.3
3.9
United Kingdom
Doc 73
8.0
10.2
15.8
Italy
73 1
3.1
5.2
3.4
Italy
Nov 73
9.0
21.1
17.5
Canada
73111
5.7
6.9
1.7
Canada
Nov 73
10.2
24.0
6.1
Average Annual
Growth Hale Since
Average Annual
Growth Rate Since
Percent Changn
Latest from Previous I Year 3 Months
Month Month 1970 Earn Earlier ??
Percent Change -
Latest from Previous 1 Year 3 Months
Month Month 197U Earlier Ear her
United States
Doc 73
-0.2
5.6
5.4
1.3
United States
Doc 73
0.7
5.2
8.9
9.5
Japan
Doc 73
-2.0
8.1
11.9
13.3
Japan
Dec 73
3.0
9.1
19.1
21.8
West Germany
Oct 73
-1.1
3.8
6.5
7.7
West Germany
Dec 73
0.9
6.2
7.9
12.4
France
Nov 73
1.5
7.3
7.4
-2.0
France
Doc 73
0.6
6.7
8.5
10.9
United Kingdom
Nov 13
0.4
3.5
4.1
1.8
United Kingdom
Dec 73
0.7
8.9
10.6
14
8
Italy
Nov 73
10.1
7.0
20.2
35.3
Italy
Dec 73
1.7
7.7
12.3
.
13.4
Canada
Sep 73
1.8
6.0
8.3
-3.4
Canada
Dec 73
0.0
5.6
9.1
6.7
RETAIL SALES"
Current Prices Average Annual
Average Annual
Growth Rate Since
Growth Halo Since
Percent Change
latest from Previous 1 Year 3 Months
Month Month 197n Earlier Earlier"
Percent Change
Latest from Previous
Month Month
1 Year 3 Months
1970 Earlier Earlier
United States
Dec 73
-1.3
10.2
7.8
4.1
United States
Doc 73
0.6
7.2
4.9
3.1
Japan
Sep 73
4.8
13.9
25.3
26.0
Japan
Oct 73
-0.1
18.2
22.7
15.0
West Germany
Oct 73
4.1
9.1
9.2
1.2
West Germany
Nov 73
2.5
8.9
4.4
-1.6
France
Oct 73
2.2
6.5
12.5
3.1
France
Nov 73
-0.4
11.9
5.2
6.6
United Kingdom
Aug 73
0.1
1.1
12.1
14.8
United Kingdom
Dec 73
-0.2
9.6
3.8
- 8.9
Italy
Aug 73
6.7
12.4
19.0
5.0
Italy
Jun 73
2.8
20.8
22.2
26.5
Canada
Nov 73
0.3
10.1
10.5
80
Canada
Dec 73
3.0
13.0
11.7
2.9
United States
Representative Rates Latest Date
Prime fin
Japan
ance paper
Call money
18 Jon
11.50
West Germany
Interbank loans (3 Months)
25 Jan
11.83
France
Call money
1 Feb
14.00
United Kingdom
Canada
Local authority deposits
Finance paper
25 Jan
25 Jan
8.75
Euro?Dollars
Three-month deposits
1 Feb
9.00
7 Feb 74
I Year 3 Months 1 Month
Earlier Earlier Earlier
7.88
8.00
5.12
8.75
12.00
8.00
14.25
13.00
7.62
11.25
12.93
16.91
I
5.25
9.00
9.50
7.38
9.38
......., a ..e..,...
??Avo age for latest 3 menthe compared
with average for previous 3 months.
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EXTERNAL ECONOMIC INDICATORS
EXPORTS`
Iab.
Million US $ '
Million US $ 1973 1972
United States
Doc 73
1 0,930
70,790
49
221
Japan
Doc 73
3,417
35,937
,
27,078
West Germany
Doc 73
5,430
67,755
40,727
France
Doc 73
3,178
30,830
20,308
United Kingdom
Doc )J
2,304
28,401
22
875
Italy
Nov 73
2,004
19,831
,
10,549
Canada
Oct 73
2,149
20,233
10,420
llf' ORTS'
f.o.b.
Million US S
Million US S 1973 1972
United Status
Dec 73
5,990
09,070
55
553
Japan
Doc 73
3,464
31,918
,
18,995
West Germany
Dec 73
4,520
51,723
37,991
France
Dec 73
2,972
35,426
25,208
United Kingdom
Dec 73
3,154
33,946
24,627
Italy
Nov 73
1,981
21,973
15.296
Canada
Oct 73
2,106
19,020
15,463
TRADE BALANCi'
f.o.b./f.o.b.
United States
Doc 73
Million US S
940
Japan
Doc 73
-53
West Germany
Doc 73
916
France
Dec 73
205
United Kingdom
Doc 73
-770
Italy
Nov 73
23
Canada
Oct 73
43
BASIC BALANCE"
EXPORT PRICES
Us $ Average Annual
Growth flare Splice
Percent
Portent Chenga --- ---
Lulrtl from I'uivmiR I Year 3 Months
Change
Month Merrill 1970 Earlier Earlier
43.0
United States
Nov 73
1.4
9.2
28.9
Japan
Oct 73
1.0
13.0
26.8
20.0
45.0
West Germany
Oct 73
2.0
15.5
38.2
-5.2
39.5
Franco
Sop 73
1.0
15,5
35.2
11.5
244
United Kingdom
Sep 73
-1.8
9.0
12.8
-0.1
19.8
Italy
Aug 73
2.4
10.7
10.4
40.5
23.2
Canada
Sop 73
2.2
7.5
17.0
33.0
EXPORT PRICES
National Currency Average Annual
Growth Hat
Si
e
nce
-
Percent
w cell Chen'li
Latest 'rem Prowom I Year 3 Months
Change
Month month 1970 Earlier Earlier
24.3
United States
Nov 73
1.4
9.2
21.5
18.8
08.0
Japan
Oct 73
2.0
3.8
11.1
31
5
30.2
West Germany
Oct 73
1.7
1.8
4.6
.
4
5
40.2
France
Sup 73
2.7
6.3
14.3
.
12.4
37,8
United Kingdom
Sep 73
0.5
9.1
12
8
15
5
43.6
Italy
Aug 73
0.8
7.6
.
18
7
.
30
0
23.0
Canada
Sep 73
2.2
8.3
.
18.7
.
33.5
IMPORT PRICES
1973 1972 Change
1,714
-8,332
8,040
4,019
8,883
-4,864
16,028
8,735
7,293
1,408
1,129
278
-5,485
-1,751
-3,734
-2,143
1,253
-3,395
1.213
957
Current and Long-Tertn-Capital Transactions
Latest Period culnulativi, Million US S)
United States'
Japan
West Germany
France
United Kingdom
Italy
Canada
73 III
Dec 73
Oct 73
73 11
73 III
72 IV
73 11
Million US S 1973
2,540 I 990
-1,191
925
17
-522
Boo
93
-9,662
3,445
-559
-1,844
NA.
-151
End of
United States Doc 73
Japan Jan 74
West Germany Dec 73
France Dec 73
United Kingdom Jan 74
Italy Dec 73
Canada Dec 73
14.4 16.3
11.6 4.1
8.5 4.4
6.2 2.8
6.4 4.7
5.8 4.3
1972 Change
-8.400 9,390
2,184 -11,840
3.867 -421
-202 -357
-1,347 -497
2,983 NA.
434 -585
"IJonveried into US dolhn at current market ra:ao of exchange:
Feb 74'
3 Mouths
Earlier
14.0
14.0
35.3
11.2
6.8
8.5
5.5
National Currency Average Annual
Growth Rate Since
Percent Change
Latest train Previous I Year 3 Mantis
Month Month 1970 Earlier Earlier
United States
Nov 73
1 3.4
I 12.3
28.5
33.5
Japan
Oct 73
2.4
3.5
18.8
29.4
West Germany
Oct 73
1.9
0.7
4.3
16.8
France
Sep 73
4.0
8.0
11.9
45.1
United Kingdom
Sep 73
5.5
14.8
41.5
65.2
Italy
Aug 73
3.5
13.4
34.2
72.6
Canada
Sep 73
0.7
5.4
12.5
11.5
EXCHANGE RATES Spot Rate
As of I Feb 74
US S 18 Dec 19 Mar 25 Jan
Per Unit Dec 66 1971 1973 1974
Japan(Yen)
its
West Germany (M artk)che
0.0034
0.3644
22.04
44.95
3.70
17.43
-11.46
2.91
0.72
55
3
France (Franc)
0.2008
-0.84
1.88
-8.98
.
5.14
United Kingdom Sterling)
2.2048
-18.84
-13.08
-7.97
2.83
Italy (Lira)
0.0015
-4.87
-11.45
-13.95
2.21
Canada (Dollar)
1.0125
9.77
1.47
1.48
0.14
As of! 6.b 74
18 Dec 19 Mar 25 Jan
Dec 66 1971 1973 1974
United States
-13.00
-3.75
2.88
-1.43
Japan
13.34
-0.29
-12.12
0.01
West Germany
29.35
12.49
7.51
0.69
France
-17.63
-4.29
-8.74
2.33
United Kingdom
-35.05
-20.90
-8.55
0.93
Italy
-21.37
-20.12
-13.27
-0.84
Canada
7.95
1.35
2.98
-0.39
-"Weighting is based on each listed country's trade with 16 other industrialized
countries to reflect the competitive Impact of euchenoe?rete variations
among the major currencies.
Approved For Release 2009/09/29: CIA-RDP85T00875RO01500150006-0