ECONOMIC INTELLIGENCE WEEKLY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP85T00875R001500150026-8
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 16
• Document Creation Date: December 22, 2016
• Document Release Date: September 29, 2009
• Sequence Number: 26
• Publication Date: June 12, 1974
• Content Type: REPORT

Approved For Release 2009/09/29: CIA-RDP85T00875RO01500150026-8
Secret
Economic Intelligence Weekly
Secret
CIA No. 8038/74
12 June 1974
Copy N2 367
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Secret
Further Increases in Fertilizer Prices Short world supplies will undercut
plans to increase grain yields.
Canada: Meeting with Commodity Exporters Countries seek high prices for
their minerals.
Japan: Real GNP Drops Sharply Stimulative action is held back by fear of
further inflation.
Grain Outlook in Communist Europe Area may need sizable grain imports
in FY 1975.
Stir in World Gold Market Decline in last two months has been punctuated
by short-run swings.
Chile Boosting Nitrate Production Natural nitrates stage comeback on
booming world fertilizer market.
China Awards Air Navigation Systems Contract to UK Firm
GM to Help Poland Build Delivery Vans
Austria: Enrichment Contract with the USSR
US Finances Truck Sale to Yugoslavia
Summary of a Recent Publication
Comparative Indicators
Recent Data Concerning Internal and External
Economic Activities
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Secret
Chemical fertilizer, already at record high prices and in short supply, will
become even more expensive.
? Morocco increased the price of phosphate rock by 50% in June after
tripling prices in January.
? 'Togo announced that its rock prices would be based on Morocco's
and voided existing contracts.
? Prices of phosphate rock exported from the United States more than
doubled in January and will increase by an additional 32% in July.
Before the latest increases, spot prices of nitrogen and phosphate fertilizers
were four to six times the level of June 1973. Potash prices increased by 30%
to 40% in the same period.
The bill for importing countries could be three times the 1973 outlays. India,
for example, may pay $500 million for fertilizer in 1974/75, compared with an
estimated $200 million in 1973/74. Western Europe will be hard hit by the increased
price of phosphate rock; its import bill in 1974/75 probably will jump to $1.2
billion to $1.4 billion, compared with $300 million in 1973/74.
Fertilizer will remain in short supply over the next year or so, undercutting
plans to increase crop yields. In recent years, fertilizer has accounted for about
40% of increased grain yields in the United States, 33% in Taiwan, and 60% in
India.
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In recent months, Canada has sent observers to several meetings of less
developed countries planning cooperative action to raise minerals prices. Ottawa's
actions underscore the statement by Minister of Energy MacDonald last March that
Canada might be willing to associate with these countries to obtain high prices
for their minerals
Canadian officials attended exporter meetings on:
? Iron ore in Geneva in March, when a working group was established
to examine formulas for joint pricing policy.
? Copper in Vienna in April, when Chile, Zambia, Zaire, and Peru
considered how world prices could be kept up.
? Mercury in Algiers in May, when six exporting countries agreed to
cooperate in raising prices by 20% to 3010.
Canada accounts for 10% of world exports of iron ore, 22% of copper, and
10% of mercury. Most Canadian shipments go to the United States.
Canadian officials have played down the significance of their attendance at
these meetings. They claim that Ottawa sent representatives merely to keep abreast
of mark.-t developments. Trade officials emphasize that they did not sanction the
price hike for mercury.
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Secret
JAPAN: REAL GNP DROPS SHARPLY
Japan's real GNP fell even more than expected in the first quarter of 1974.
Tokyo announced last week that output dropped 5% from the last quarter of 1973,
on a seasonally adjusted basis - or 2% from the first quarter of 1973. The decline
was the steepest in 20 years and one of the largest among industrial countries.
In real terms:
? Private demand fell sharply, as inflation, tight money policies, and
soaring oil import costs eroded purchasing power.
? Household income decreased for the 'irst time in years, causing a
5.5% drop in personal consumption.
? Tight money and weak sales finally ended the investment boom.
To help maintain employment, firms allowed inventories of finished goods
to rise 30% above the yearend level and reduced working hours. Total hours worked
during the first quarter were down 5%, largely because of a cut in overtime. The
hard-hit auto industry began operating on a three-day workweek in March.
Even after last week's announcement, Minister of Finance Fukuda reiterated
his plans to stimulate demand only gradually while continuing to provide financial
assistance to hard-pressed industries. He is particularly concerned about the intense
inflationary pressures. In April, for example, retail prices rose at a 38% annual
rate. Another inflationary spurt is likely this summer when the government lifts
price controls placed on key items in March. We judge that, if stimulative action
is not taken soon, real GNP will increase no more than 2% this year.
GRAIN OUTLOOK IN COMMUNIST EUROPE
Good weather in May improved grain prospects in Eastern Europe, whereas
the outlook for the Soviet crop remains indifferent. Assuming average weather
throughout the remainder of the crop season, the gain harvests in both areas will
be well below the record 1973 levels. This could result in substantial gain imports
in FY 1975.
East European Drought Broken
Although average rainfall and below-average temperatures in May alleviated
the drought in Eastern Europe, we project breadgrain output at 34-1/2 million
tons, still 7% less than last year. The harvest of coarse gains also is expected
to fall short of 1973's near record of 34.8 million tons.
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In the southern countries -- Bulgaria, Romania, and Hungary - the May rains
brought most of the winter grains out of the long drought in good condition.
They also aidhd germination and early development of spring sown grains, especially
corn. Flooding in Bulgaria and Hungary caused crop losses in some areas. However,
because on balance soil moisture remains below normal, a hot, dry summer could
reduce grain production even more.
In the northern countries - Czechoslovakia, East Germany, and Poland --
rainfall ranged from 7% to 15% above normal and subsoil moisture at the end
of May was only 10% below normal. III Poland, however, grains suffered from
both winterkill and drought, and winterkill may also have been higher than average
in East Germany.
Poor Weather Threatens to Reduce Yields in the USSR
Above-average winterkill and delays in spring sowing, taken together with
average growing conditions in the important June-July period, indicate a Soviet
grain output this year of 190 million tons or less. Although far below the planned
output of 206 million tons and last year's record 222.5 million tons, a crop of
this size could still exceed the pre-1973 high of 187 million tons.
The USSR normally relies on winter grains for about one-third of its grain
supply. In the fall of 1973 the Soviets planted the largest area to winter grains
since 1968. Temperature extremes and sparse snow cover damaged about one-fourth
of these fields, leaving a smaller acreage than the average harvested in 1966-71.
Moreover, yields on the remaining area may be no more than average because of
spotty germination last fall, temperature variations, and spring frosts.
Spring sowing got off to an early start, but cold, snow, and rain in mid-April
stalled the campaign. Unusual cold in late May killed some of the newly seeded
grain in the European RSFSR and the Ukraine. More important, when the last
of the late grains is planted this week, the total grain area is likely to be 5 million
to 10 million hectares less than the planned 130 million. On the basis of growing
conditions so far, yields on spring grains would be below the average of the past
10 years. Weather, however, has its greatest effect on spring grains in June and
July.
Shortfalls Could Spur Imports
Eastern Europe's import requirements for FY 1975 are likely to be higher
than the 8 million tons estimated for FY 1974 and exports lower. Romania --
usually a net exporter of grain -- entered a precautionary request for US grain
before rains improved harvest prospects. Grain imports by the northern countries
may also increase because of the reduced output of rye and the possibility of
a poor potato crop.
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Estimated Soviet domestic requirements and export commitments are at least
6 million tons more than the projected crop. The USSR probably increased grain
stocks - mostly wheat - by 15 million to 25 million tons in 1973 following its
record harvest. Nevertheless, wheat imports may be necessary to correct imbalances
in domestic supplies since the quality of a large share of the wheat stocks may
be below milling standards and the share of breadgrains in the 1974 acreage is
smaller than usual. If world prices for wheat and feed grains were right, moreover,
Moscow might buy to avoid a stock drawdown and to maintain flexibility in meeting
requests for grain from Eastern Europe or Third World countries such as India.
STIR IN WORLD GOLD MARKET
Gold prices have trended downward from a peak of nearly $180 an ounce
in early April to $157.25 an ounce in London yesterday. In the last two weeks,
major oscillations have mainly reflected the market's reaction to US developments:
0 30 May - up $6.50 when the US Senate passed a bill allowing US
citizens to own gold.
? 31 May -- down $5.25 when US Treasury officials emphatically
opposed private ownership.
? 5 June - up $7.25 when Secretary Simon suggested the United States
may be amenable to a rise in the official price.
? 7 June - down $3.50 when EC finance ministers failed to propose
a revaluation in the official price.
The recent downward trend in price is largely explained by the decline in
commercial demand for gold, which has been only partially offset by increased
speculative demand. Commercial users have gradually withdrawn from the market
because of high prices and the worldwide economic slowdown. Some sources
estimate commercial gold purchases are down about one-third from their 1973
peak. At the same time, new gold sales by South Africa and the Soviet Union
are almost as high as last year.
Sharp fluctuations in Vie gold price are likely to continue as uncertainty
persists about gold's future role in the international monetary system. International
financial officials are holding a series of meetings this week at which the role of
gold will be on the agenda. EC finance ministers started discussions last week in
Luxembourg. The dialogue will continue at the annual meeting of the Bank for
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Sucre!
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Dollars per London Free Market Gold Price* 1974
troy ounce
180
11Junl yV YY..
*Based on the afternoon fix in London on the
last trading day in each week.
**Gold was fixed at an all time record high of $179.50 on April 3.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
556012 6-74
International Settlements in Basic and at the Group of Ten and Committee of
Twenty meetings in Washington this week.
The participants will discuss arrangements to permit the use of gold at a higher
price in financing payments deficits, without increasing its future role in the
monetary system. No agreement is likely to be reached. Th'; Europeans most likely
will only reaffirm their consensus that it would be advantageous to use gold reserves
in inter ,ank settlements at a value closer to the free market price. If no action
is taken, price movements will probably become somewhat more settled, while
the downward trend continues.
CHILE BOOSTING NITRATE PRODUCTION
High world prices for fertilizer have spurred Chile to expand output of natural
nitrates, a substitute for petroleum-based nitrogen fe utilizers. Santiago is seeking
more than $30 million of foreign credits to purchase the machinery and equipment
necessary to raise output 25% to I million tons in 1975. It also hopes to obtain
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concessionary terms to avoid exceeding the short-term credit ceiling imposed in
an IMF $95 million standby agreement.
Chile is the world's dominant commercial supplier of natural nitrates, largely
sodium nitrate found with little or no overburden in the Atacama Desert. These
nitrates are particularly valuable because they contain elements useful for sugar
beets and crops delayed by frost and drought. In 1973 the Netherlands and the
United States purchased 40% of the 420,000 tons exported. Thus far this year,
China has contracted for 70,000 tons of Chilean nitrates. Natural nitrate prices
are now about double the 1973 level. Prices of petroleum-bawd fertilizers
meanwhile have tripled, making the prices of natural nitrates -- on a nutrient
content basis - only slightly higher.
Production of natural nitrates has been declining for decades because of the
expanded use of cheaper chemical fertilizers. Chilean production in 1965 totaled
about 1.2 million tons but dropped to 674,000 tons in 1973 under the Allende
government. Rising prices and more efficient management probably will push 1974
x ~c
Notes
China Awards Air Navigation Systems Contract to UK Firm
China has awarded Britain's Plessey Navaids a $2.2 million contract for nine
Instrument Landing Systems (ILS) for key airports. Delivery begins in four months.
Offers by several US firms were apparently ignored in favor of Plessey, China's
longtime supplier of commercial avionics. The equipment is sorely needed to
support China's expanding air service. In addition to 10 Boeing 707 aircraft, Peking
thus far has received 6 Hawker Siddeley Tridents as well as a number of Soviet
GM to Help Poland Build Delivery Vans
General Motors has signed a Memorandum of Intent to assist Poland in the
design and production of a light vehicle for use as a delivery van, minibus, and
ambulance. In payment for technical assistance, machinery, and components, GM
will receive finished vehicles over a 15-year period for sale on Western markets.
Production is to start in 1978; capacity output of 100,000 vehicles a year by
1980 is planned.
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Austria: Enrichment Contract with the USSR
Austria has become the eigi,th nation to conclude a deal with the USSR for
uranium enrichment services. The $56 million contract calls for 1.26 million
separative work units with delivery beginning in July 1978. The enriched uranium
will be used for Austria's second nuclear powerplant, an American-style light water
reactor to be constructed at Enns. Austria was forced to rely on the Soviet Union
for enriched uranium for the Enns plant because of inability to meet the USAEC's
30 June 1974 contract deadline for enrichment services to be provided before
mid-1982. Vienna, which has not made tip its mind on the size of the plant, could
not furnish the details required by the USAEC.
US Finances Truck Sale to Yugoslavia
The Ex-Im Bank and a New York commercial bank will finance most of a
$3.1 million sale of quarry trucks to Yugoslavia for use in mining iron ore. The
banks are extending direct credit for 90% of the purchase at 7% interest. The
19 trucks on order will be built by WABCO of Illinois. (FOR OFFICIAL USE
ONLY)
Publication of Interest
Nuclear Power - The Lon =- Japan's Energy Problems
(ER IR 74-12, June 1974, 25X1
This report examines Japanese plans for the development of nuclear power
through 1985. It surveys Japan's dependence on foreign technology in developing
a domestic capability to provide a complete nuclear fuel cycle. It concludes that
by 1985 the planned increase in the use of nuclear power will generate large savings
for the economy, while affording substantial market opportunities for foreign
nuclear industries.
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INTERNAL ECONOMIC INDICATORS
GNP'
Constant Markel I'rices Avuralle Annual
Growth (late Since
WHOLESALE PRICES
Industrial Aualage Annual
G
I'urcenl Cliaugu
rowth Halo Since
-
latest 187111 I'fiuililis I Year l iewous
Quarter Quarter
1911) Earlier Quarter
Percent clially
u
latest hen Previous I Year :1 Munlhs
United States
74 1
-1.6
3
9 0
2
Montle Month 1910 radial
Ear her
Japan
741
-5.0
.
6.2
.
-2.4
-0.3
-18.0
United States
Japan
Apr 74
Apr 74
8.0
11
2
20.8
35
6
30.2
22
9
West Germany
73 IV
-0.1
3.1
3.4
0.3
West German
Mar 74
.
6
8
.
13
1
.
30
3
France
73 IV
1.8
5.8
5.7
7.3
y
Franco
Apr 74
.
12
8
.
34
0
.
45
3
United Kingdom
73 IV
-0.4
3.1
3.9
-1.4
United Kin
dom
A
74
.
10
7
.
23
9
.
45
2
Italy
73 1
0.8
3.1
5.2
3.4
g
Italy
pr
Jan 74
.
11
8
.
33
9
.
08
3
Canada 73 IV 2.8
6,1
7.2
11.0
Canada
Mar 74
.
10.4
.
20.7
.
39.1
Average Annual
Growth note Silica
Average Annual
Percent Cha
ng
e
Growth [title Sinn
'
Lalesl Iron Previou
Month Month
s
I Year 3 Months
1910 Earlier Earlier
1
crcen1 Change
tatest hum Previous I Year
3 Months
United States
Apr 74
0.4
I
4.6
0.7
-6.2
Un
ited State
s
Month
Apr 74
Month
0
6
1971) Ear her Earlier
5
8 10
3 1
Japan
Apr 74
-1.7
21
-9.9
Ja
pan
Apr 74
.
2.7
.
11
4
.
24
9
2.9
30
8
West Germany
Mar74
-1
1,1
-2.2
We
st Germa
ny
Apr 74
0.6
.
8
3
.
7
1
.
7
3
France
Mar74
-0
5.0
5,4
Fra
nce
Apr 74
1.6
.
7
7
.
13
2
.
17
7
United Kingdom
It
l
Mar74
M
2.
.1
-4.0
-21.1
Uni
ted Kingd
om
Apr 74
3.4
.
10.3
.
15
2
.
27
0
a
y
Canada
ar 74
Feb 74
-2.4
0.9
I
3.9
6.7
11.0
4
5
- 5,3
7.0
Ital
y
Apr 74
1.2
9.2
.
16.3
.
20.6
,
Can
ada
Apr 74 0.7
6.0 9.9
11.4
RETAIL SALES"
Current Prices Average An,iual
Growth Rate Since
Average Annual
th P
G
Si
Percent Change
row
nce
ale
P
Latest bans Previous I Year 3 Months
Month Month 1910 Earlier Earlier''
ercent Change
Latest front Previous 1 Year
3 Months
United States
May 74 1
0 1
Month Month 19111 Earlier
Earl
r
.
0.3
0.8
13.9
Unit
ed State
s
May 74
1
6
7
0
ie
7
0 10
0
Japan
Nov 73
3.4
14.6
27.4
32,0
Jap
an
Feb 74
.
1
2
.
17
6
.
15
8
.
8
7
West Germany
F
nc
Feb 74
F
b74
0.9
8.7
0.9
11.4
Wes
t German
y
Feb 74
.
0.5
.
8.8
.
1.1
.
8.6
ra
e
e
0.8
7.0
12.9
29.0
Fran
ce
Feb 74
-0
3
11
9
9
0
14
9
United Kingdom
Jan 74
-1.3
11.5
13.1
16.9
Unit
ed Kin
d
om
Apr 74
.
2
7
.
9
3
.
3
0
.
1
0
Italy
Oct 73
0.6
16.2
29.1
56.7
Italy
g
Dec 73
.
2.6
.
21
2
.
17.9
.
22
1
Canada Mar 74 -1.0
11.4
11
8
23
1
.
.
.
.
Can
ada
Apr 74 4.2
13.8
14.4
18.5
1 Year 3 Months 1 Month
Representative Rates
Latest Date Earlier Earlier Earlier
U
i
d S
n
te
tates
Prime finance paper
8 Jun
9.25
7.25
7
25
9
00
Japan
Call money
3 Jun
12.50
6
63
.
12
00
.
12
00
West Germany
Interbank loans (3 Months)
31 May
9.38
.
14
00
.
10
50
.
9
50
France
Call money
28 May
13.00
.
7.63
.
12.15
.
11
75
United Kingdom
local authority deposits
30 May
13.13
7
52
14
63
.
13
75
'Seasonally adjusted,
Canada
Finance paper
31 Ma
12
00
.
.
.
"Average for latest 3 months compared
Euro?Dollars
Three-month deposits
y
31 May
.
11.88
6.50
8.69
8.50
8.88
10.85
11.50
with average for previous 3 months.
12 June 1974
Office of Economic Research/CIA
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EXTERNAL ECONOMIC INDICATORS
EXPORTS'
I.uIt.
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
IMPORTS"
t.u.b.
United States
Japan
West Germany
Franco
United Kingdom
It,.i I
Canada
Conuthdive
alert Merrill ------_--------------- -
Million US S Percent
Million US S 1074 11)73 Change
Ali; 74 8,230 30,024 20,900 40.6
Apr 74 4,207 15,293 10,041 39.0
Apr 74 7,734 20,070 10,070 47.2
Apr 74 3,704 14,305 10,024 34.0
Apr 74 3,040 10,749 0,001 22.1
Apr 74 2,602 8,027 5,708 63.0
Apr 74 2,429 10,020 7,970 25.0
Latest Mouth
Million US $
Apr 74
Apr 74
Apr 74
Apr 74
Apr 14
Apt 74
Apr 74
TRADE BALANCE'
tu.b./t.o.b.
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
4,076
5,423
4,141
3,981
3,308
2,306
Million US S
Apr 74 92 1
Apr 74 -409
Apr 74 2,310
Apr74 -377
Apr 74 -934
Apr74 -866
Apr 74 123
BASIC BALANCE"
Current and Long-Term- Capital Transactions
Latest Permit Cumulative (Milliner US $1
United States*
Japan
West Germany
France
United Kingdom
Italy
Canada
73 IV
Apr 74
Mar 74
73 IV
73 IV
72 IV
73 IV
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
Million US S 1973 1972
214 1,209 -9,838
-1.005 -9.702 1,137
1,176 3.950 4,566
-352 -2,391 -369
-1.394 -3,184 -1.989
800 N.A. 2.983
27 376 1,155
Cernulativn
Million US S Percent
1174 1913 Chaggn
29,843 21,545 38.5
16,034 8,785 09.3
19,720 14,994 31.5
15,302 10,092 62.2
14,670 9,790 48.7
11,580 0,400 80.8
9.605 7,290 31.7
1974
781
-1.342
8,355
-1.051
-3.821
-2.753
415
1973 Change
-637 I 1,418
2,156
4,07'
532
-995
-638
688
-3.498
4.280
-1,589
-2,826
-2,115
-272
1 Year
End at Billion US S Jun 1970 Earlier
Apr 74 14.7 16.3 14.0
Apr 74 12.7 4.1 16.8
Mar 74 32.9 8.8 32.3
Apr 74 8.1 4.4 11.5
May 74 8.9 2.8 6.7
Mar 74 6.7 4.7 6.3
May 74 6.2 4.3 6.1
'Seasonally adjusted.
"Converted Into US dollars at current market rates of exchange.
Change
11.047
11,839
-816
-2,022
-1.175
N.A.
-779
3 Months
Earlier
14.6
11.8
33.1
8.3
6.0
6.4
0.2
EXPORT PRICES
11S$
United States
Japan
West Germany
Franco
United Kingdom
Italy
Canada
EXPORT PRICES
Notional Currency
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
IMPORT PRICES
Notional Currency
United States
Japan
West Germany
France
United Kingdom
Italy
Canada
Average Annual
Growth Ilale Siam
)'ercentChnngii----- __ -.
Montle Maviii
Apr /4 i 0.0
Doc 73
Mar 74
Jon 74
Doc 73
Oct 73
Feb 74
2.0
6.9
-5.9
0.1
2.1
4.1
19711
11.5
13.7
13.9
11.1
5.7
11.0
12.4
I Year
E rlun
30.3
32.0
21.9
10.9
17.4
23.7
34,3
3 Months
Earlor
23.6
14.9
37.5
-35.2
12.0
29.1
05.8
Average Annual
Gra.vth Yule Since
I'uir.ent Change
Latest train Piuvious
Month Month 19111
Apr 74 0.0 11.5
Dec 73 3.4 5.7
Mar 74 2.3 4.1
Jan 74 3.2 8.0
Dec 73 3.1 9.8
Oct 73 2.4 8.3
Feb 74 2.7 10.3
Percent Change
Latest tram Pneumus
Month Month 1970
Apr 74 61.3 I 19.0
Dec 73 9.3 7.2
Mar 74 1.8 6.2
Jon 74 14.9 11.3
Dec 73 4.5 18.3
Oct 73 3.4 14.0
Fob 74 3.6 7.9
EXCHANGE RATES Spot Rate
As of 7 Jun 14
Japan(Yen)
West Germany (Marplche
France Uranc) (Pound
United Kingdom Sterling)
Italy (Leal
Canada (Dollar)
US S
Per Unit
0.0035
0.4026
0.2047
2.4035
0.0016
1.0382
Dec 66
28.31
60.14
1.39
- '3.87
-2.87
12.55
I Year
Earlier
30.3
20.0
13n
17.0
18.8
20.4
31.8
3 Months
Earlier
23.5
42.6
30.6
31.3
33.0
17.0
51.5
Average Annual
Growth Role Since
1 Year
Earlier
48.6
29.0
25.7
33,0
42.6
38.7
21.3
3 Months
Earlier
98.2
81.5
56.1
12 7.4
50.6
30.8
42.4
Percent 111ange hen,
18 Dec 19 Mar
1971 1973
9.02 I -6.92
29.75
3.96
-7.76
-9.59
4.05
13.70
-7.12
-2.34
-12.15
4.06
TRADE-WEIGHTED EXCHANGE RATES
Uiriiud States
Japan
West Germany
France
United Kingdom
Italy
Canada
Dec 66
-17.57
16.72
34.34
-22.90
-34.09
-25.74
9.07
I n Dec
1971
-8.18
?2.96
17.15
-9.31
-19.81
-24.35
2.47
31 May
1974
-0.20
1.26
0.10
0.29
0.32
-0.19
19 Mar 31 May
1973 1974
-1.52
-8.96
12.09
-11.75
-5.48
-17.42
4.11
-0.16
-9.34
6.76
- 0.69
-0.02
-0.32
- 0.27
*"Weighting Is based on each listed country's trade with 16 other industrialized
countries to reflect the competitive Impact of exchange-rate variations
among the major currencies.
A2
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