ECONOMIC BACKGROUND OF THE POLISH RIOTS

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP85T00875R001600030196-2
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
26
Document Creation Date: 
December 22, 2016
Document Release Date: 
October 31, 2011
Sequence Number: 
196
Case Number: 
Publication Date: 
December 1, 1970
Content Type: 
IM
File: 
AttachmentSize
PDF icon CIA-RDP85T00875R001600030196-2.pdf1.33 MB
Body: 
Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 .1 fri0&k. 4(-Tf" '/O - /`/ secrete DIRECTORATE OF I NTELLIGENCE Intelligence Memorandum Economic Background Of The Polish Riots DOCUMENT SERVICES BRANCH rkc purr u0 NOT OI$TROY ER IM 70-195 Decemter 1970 Copy No. i A. Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 WARNING This document contains Information nfltcting the national defense of the United States, within the meaning of Title 18, sections 703 and 704, of tile US Code, as amended. Its transmission or revelation of its contents to or re edit by all unauthorized person is prohibited by Inw. Ad.d?! 1?.~ ..,.-.A Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 lassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SECRET CENTRAL INTELLI'3ENCE AGENCY Directorate of Intelligence December 1970 Economic Background of The Polish Riots Introduction The Gomulka regime, which came to power in Poland in October 1956 in the wake of the Poznan L.re .d riots, did much to improve the living conditions of workers and to advance the national interests of Poland. Nevertheless, Gomulka was forced to step down in December 1970 after now riots by workers in response to sharp price increases for necessities. How did the regime happen to adopt such an un- popular measure and to announce it just before Christmas? What lay behind the violent response of the workers? What choices in dealing with the workers has the now Gierek regime? This memorandum proposes answers to these questions out of the recent economic and political history of Poland. Eight Days in December 1. The riots came in the wake of a resolution adopted by the Council of Minister's on Saturday, 12 December that called for sweeping revisions in the retail price structure, to take affect the next day. On the following Monday, in protest against the price hikes, an open demonstration erupted among 1,000 or so shipyard workers in the city of Gdansk on the Baltic. Riots continued, with angry Note: T zo memorandum was produoad solely by CIA. It was prepared by the Offioe of Eoonomio Rssaaroh and was ooordinated with the Offios of Currsnt Intsliiganoa. SECRET Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SECRET housewives joining in, and quickly spread to the northern cities of Gdynia, Sopot, and Szczecin; lesser disturbances were reported to the south in Lodz and Bydgoszcz, and scattorad work stoppage oc- curred in several cities, including Warsaw. Polish accounts on 17 December list at least 12 dead and several hundred injured, including security police and militiamen. Daily production losses of 25 mil- lion zlotys in the Gdansk shipyards wore reported. 2. The Gomulka regime throughout the week held out no hope of a rollback in prices, although the former Party boss of Gdansk Province reportedly promised the Gdansk shipyard workers pay increases in 1971. Instead, the regime strongly defended ito action as economically vital and proceeded to quell the riots with armed force. 3. This inflexible position helped maintain tension in major Polish cities and in turn led to the downfall of Party Secretary Wladyslaw Gomulka. On Sunday, 20 December the Polish radio suddenly announced that Gomulka would retire because of bad health. Four of his politicae.' allies also were forced out of office, includ,;4.ng Zenon Kliszko, the Party's leading theoretician, and Boleslaw Jaszczuk, Gomulka's economic adviser and a leading) apologist for his economic policies. Gomulka was succeeded as Party first secretary by Edward Giorek, tough, efficient former Party boss of heavily industrialized Katowice Province,, a member of the policymaking Politburo who had long waited in the wings. He took office along with four newly named members of the Politburo, Poland's twelve-member policymaking body. The Price Revisions 4. The Council of Ministers resolution of 12 December prescribed sharp price hikes for two major categories of consumer goods, food and fuels, bus. also for building materials and cotton and textiles, together with substantial reductiorn in prices for many industrial consumer goods and some adjustments in family allowances. According to official claims these measures on balance would moan only a temporary 2% loss in real income, even for the poorest workers, who would be the hardest hit. But for most workers, that was not the points they were not interested in acquiring more clothes and durable* if they could not also maintain and increase meat consumption. SECRET Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SECRET 5. For the increase in the price of meats had the greatest impact on workers' attitudes. Meat prices, including pork and beef, rose by about 18%. This increase about equalled the last major change in meat prices, a rise of 17% in November 1967. Other recent price increases -- in the price of alcnc~+3 lase spring (culled both to conserve potato stockMM fox livestock feed and to curb ex- cessive drinking) acid in tobacco products in 1966- 67 -- also touched closely on items of special interest to workers and the'r fgmilies. 6. As shown in Table 1, other basic foodstuffs affected by the 12 December price hike included lard, flour (wheat and rye), milk and milk products, fish and fish products, and cakes and bake goods. The price hikes for cakes and baked goods, up 12%, coupled with increases for some sweets, coffee, jams, marmalade, fruit, and cheeses were particu- larly galling in the pro-holiday season. 7. The resolution also provided for a 10% rise in hard coal prices -- only a year after one of the most severe winters in modern Polish history, with the pouaibility of an equally severe one coming up -- and a 14% price rise in lignite (brown coal). Lignite, although less efficient than anthracite, is a favorite house fuel among lower income groups because of its cheaper, price. Building materials jumped an average of 288 and include such popular items as bricks, ceramic tiles, and sawn timber. The price of cotton texttlea, for which Poland de- panda largely on imports, also inerased signifi- cantly. Cotton textile prices increased 15%; natural silk, 57%; and linen fabric, 54%. Q. The cumulative effects of the foregoing in- creases for foodstuffs, fuels, building materials. and textiles hr surpass the ber>Afits received from simultaneously decreed price cuts in other goods and from other adjustments offered by the regime. The most important price reductions were for pharmaceutical products, down 318; synthetic tex- tiles, down 251; and consumer durables, mainly popular household appliances. The retail prices of TV sets, radios, refrigerators, washing machines, sawing machines, and tape recorders were shaved by SECRET Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SECRET Poland: Major Revisions it i tail Prices and ",stimated Shares of Retail Trade 1 Price increases Price Change Share of Retail December 1970 Trade 1969 Percent In",zeases) (Percent) Foodstuffs Flour, macaroni 16 1.4 naked goods 12 3.6 Meat and ineat products 18 9.'r Lard 33 1:0 Fish and fish products 12 1.0 Nilk (winter price) 8 1.0 b Nilk products 4 2.3 Of which: Cheese 37 0.5 Sweets and cubed sugar 14 4.0 1 Coffee 92 0.7 Cotton textiles 15 1.3 Silk fabrics 37 0.3 Linen fabrics 54 N.A. Overcoats 69 N.A. Leather gloves 14 N.A. Steel and metal goods 7-12 1.2 Aicycles and motorbikes 12 N.A. Coal and lignite 10-14 2.8 biding materiEl* 28 2.0 minimum total SECRET Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SEC EU Table 1 Poland: Major Revisions in Retail Prices and Estimated Shares of Retail Trade 1 (Continued) Price decreases PAico Change Share of Retail )acomber 1970 Trade 1969 (Parcont Ineroasos (Percent) Drugs Radios, TVs, tape recorders Appliances -31 -13 to -21 N.A. 2.4 1.8 1.3 Refrigerators -16 N.A. Washing machines -17 N.A. Vacuum cleaners -15 N.A. Sewing machines -10 N.A. Synthetics textiles -25 1.3 1 Nylon stockings -46 N.A. Shirts and blouses -16 N.A. Razor blades -38 N.A. Phonograph records -18 N. A. Matches -20 N.A. Paints and laccuerr -10 N.A. Minimum total a. Many prise changes affect it:aro or groups of items, not wh-oFa- oal'egorisie of goods, and are excluded from thin table. Estimates of the sharer of retail trade reflect data from 1969, from Poland's ?tat.atioaZ yearbook for 1970, p. 331-332. These data inolude soars to institutions as well as sales to individuals. b. Frtimated by applying the shares of the various milk products given in household budget studios to the figure for milk, mizk produots, and eggs given in the retail trade data. o. InoZudirt;g ail _ sugar and swaete. d. 1naiiuding oil for heating and lighting. e. Assumed to represent the unitemined residual in the category of textile fabrics. SECRET Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SECREI, significant margins -- from 10% for sewing machines to 21% for tape recorders. Price cuts also affected various other goods, much less important in the budget of the average worker, such as matches, soaps and detergents, phonograph records, paints and lacquers, and Polish-made razor blades. 9. in the off}cial explanation of the price revisions, it was conceded that, with the retail, trade structure of 1970, the resulting increase in expenditures would amount to 15.7 billion zlotys, whereas the reduction would cut expendi- tures by only 10.9 billion zlotys. But these changes represent only a 3/% increase in ( ;penditures in retail trade and a 2/% reduction in expenditures -- that is, they would involve on the average less than a 1% price rise in net coat of retail trade pur- chases and less than a 1% increase in the cost of living. 10. The government sweetened the kitty for con- sumers somewhat by easing credit restrictions an installment purchases of some durables and by'cut- ting back monthly subscription fees on TV sets from 40 zlotys to 30 zlotys. Revised Incentives in the Shipbuilding Industry 11. A twin cause of the disturbances, one that may explain the coincidence of the most severe disruptions in Poland's shipyard cities of Gdansk. Gdynia, and Szczecin, is a new system of material incentives proposed for the Polish shipbuilding industry. Promulgated by the Council of Ministers as Order No. 80/70 on 31 October, the revised in- centives are scheduled to take effect on 1 January 1971. 12. The proposed scheme of incentives, never before tried in Polish industry, aims to tie workers' bonuses by means of complicated formulas to the "profitability" of final output. About 80% of Polish ships to be produced in the upcoming five- year plan have been targeted for sales abroad, and apparently the sales prices received from foreign buyers for Polish-made ships will determine whether the workers in production units gain or lose, and by how much. The uncertainty of such SECRET Leclassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SECRET rewards by all accounts has caused widespread con- cern among the rank and file, who have become ac- customed.to viewing bonuses more as a matter of right than as something to be earned, 13. Shipyard workers have much to lose. Their wages average 30% higher than those of industrial workers in general and have been increasing more rapidly. They object to having their bonuses de- pend heavily on factors outside the control of individual workers and brigades, such as interna- tional market conditions for ships, on the imagina- tion of architects and engineers in the country's maritime design offices, and on the sAlesmanship of Polish exporters. Polish snipbuilding in the past has not met world standards, except for some colliers, fishing trawlers, and small-size general cargo ships. Most have been saleable only in the Communist world and then only through price con- cessions. Part of the fault lies ii,a the still primitive sales and service organization of Polish industry 14. As every shipyard worker must surmise, even higher profit margins could mean lower bonuses. It is a widely held belief in Polish blue collar circles that wage and incentive reforms generally favor bureaucrats and white collar workers, who make up about one-fourth of the 37,000 employees in the shipbuilding industry. Hence, some workers doubtlessly fear that any new scheme of income dis- tribution could work to their disadvantage, not- withstanding official claims from Warsaw that ex- isting differences between white and blue collar workers are to be narrowed in the 1971-75 plan. 15. Part of the reason for the uneasiness of the shipyard workers may have come from the failure of the Gomulka regime to explain the proposed reforms properly. In a speech made in mid-November, the Secretary of the PZPR Voivodship Committee, Wlodzimierz Stazewski, said*: In connection with the repeated working out of this system and the amendments introduced into it, there has been no * Glos Wybrzeza, No. 275, 29 November 1990. SECRET Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SECRET possibility yet to got the perso%nel thoroughly acquainted with its principles. Therefore, certain things are unclear in people's minds and some enterprises aro anxious about what this new system will bring. These obscurities and anxieties should be dispelled as soon as possible by a matter-of-fact and lucid explanation of the basic principles to come into force in the shipbuilding industry and by the explanation of their economic and social contents. The Rationale of the Price Changes 16. The price changes introduced in December 1970 and others made since 1967 reflect a long- standing recommendation of the planners to dis- courage increases in the consumption of heavily subsidized goods and services -- especially goods incorporating agricultural products or im- ports -- and to encourage expanded consumption of industrial products, which have been greatly over- priced. This view was reflected as early as August 1968 in an article by Grzegorz Pisarski, editor of Zyoie gospodarose, Poland's economic newspaper.* He noted, for example, that "securing equal growth in food production requires two to three times higher expenditures than growth in the production of clothes; shoes; and metal, chemical, and rubber products." He acknowledged that some low income groups were still not well fed and that an improve- ment in quality and an increase in prc'cessing were still needed. He recommended, first, a greater dii`ferentiation of food prices to reflect demand and, second, a shift of effective demand toward non- food articles by price changes and by increasing the supply and range of good quality clothing, electrical and electronic equipment, and automobiles and other transportation equipment. In general, he observed, food consumption was already high: "com- pared to countries with a higher national income per capita., food consumption in our country is main- tained at a definitely higher level," while the supply of non-food products was relatively low. He went on to note that any general Shift in prices would perhaps benefit the well-to-do and would at Zycie gospodarcze, 11 August 1968. SECRET Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SECRET least have little effect on their standard of living, while involving a loss for poor families. "This," he said, "is one of the most important reasons why we have delayed changes in the price structure postulated long ago." And he went on to discuss various ways of minimising these effects. 17. As Pisarski claimed, working class families in Poland eat as much -- in quantity -- as working class families in many West European countries. In quality and range of choice, Polish food on the whole is inferior. Moreover, Polish housewives must spend more time shopping for food and preparing it than housewives in Western Europe, and many more of them must hold down jobs to make ends meet. in addi- tion, many heads of households work at two jobs; moonlighting probably is more common in Poland than anywhere else in the world. But working class families in Poland eat large amounts not only of bread and potatoes but also of milk, meat, fish, butter, and other fats and vegetables -- more, for example, than working class families in West Germany, and nearly as much of several other foods, as shown in Table 2. Shipyard workers probably eat even more. The relatively high demand for food by Polish workers is in good part explained by the larger number of working members in the family, the greater percentage of workers doing heavy manual labor, the colder climate, the less comfortable living conditions, and they relative scarcity of housing and durables on which to spend money.* 18. The Gomulka regime initially gave a high priority to raising food consumption of urban work- ers. In 1956, members of the prewar industrial workforce "had ample reason to believe that they were * It s ou be noted that food consumption by manual workers and their families is close to the national average in Poland, but in West Germany is substan- tially below the national average. Even so, average consumption for all Poles is higher in calories and fats than for the West Germans, and animal protein is nearly seven-eightheof the West German level. I,i; is only when quality, assortment, and processing are taken into account that the Polish diet can be seen to be markedly less desirable than the diet in West European countries. For example, in 1964, average Polish food consumption (excluding tobacco and beverages) valued in sehiZZinge was 83% of the !footnote continued bottom of p. 111. SECRET Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SECRET Table 2 Per Capita Food Consumption in Middle Income Families of Manual Workers in Poland and West Germany 1 169 Kilo1!ams 1 Poland West Germany Flour 15.9 5.6 Bakery goods 109.4 51.5 Noodles 1.9 2.5 Rice, groats, oats 5:6 5.8 Potatoes 146.1 50.1 Vegetables and vegetable products 59.3 31.0 Fruit and fruit products 35.6 45.3 Meat and meat products 47.2 37.3 Fats (except butter) 13.9 8.9 Fish and fish products 6.7 3.5 Milk (liters) 106.6 71,6 Butter 6.7 5.4 Cream 6.3 6.5 Cheese 6.8 7.1 Eggs (units) 171 168 Sugar and confectionery 25.9 18.2 a. Based on sample surveys. The data for Poland are for families of manual workers in the middle income range, whose incomes are 1% higher than the average for all families of manual workers, The data. for West Germany are for middle income fami- lies of manual and white collar workers, with incomes 8% above the average for manual workers. For both Poland and West Germany, statistics ex- clude restaurant meals, which amount to 6% of food expenditure?e in Poland, 9% in West Germany, Polish data include and West German data exclude consump- tion from private plots. b. Unless otherwise indicated. 10 SECRET Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SECRET were worse off than before the war."* Thereafter their living cunditioiis imprevod markcaly, as- pocially in zeapect to food consumption, until the early 1960s. The growth of food consumption then tapered off, and since the mid-1960s there has ben little net increase. As shown in Table 3, consumption by workers' families of some important items, including meat, fat (except butter), sugar, end vegetables actually dropped a little from 1965 to 1969. An earier drop in consumption of cereal products continued, the normal accompainment of a rising standard of living. The mein offset was a fairly small increase in consumption of dairy prod- ucts -- butter, cream, cheese, rnd eggs. Especially important was a drop in consum^ ? ..on of pork, a key item in traditional Polish dies. The additional poultry and fish supplied in place of pork are regarded as poor substitutes by Polish workers. 19. Little or no decline in food consumption took place in 1970, judging from retail sales data through September. Per capita sales of meat, butter, and potatoes declined, and there were a few significant increases, the most important being for fats (other than butter), fish, and some dairy products. In effect, changes in the pattern of consumption in 1970 continued those from 1966 to 1969. 20. A leveling off in supply --di.ot in demand -- explains the decline in consumption of meat, fats, sugar, and vegetables in workers' families. Agricul- tural output, which rase substantially in the late 1950s and again in 1965-66, leveled off thereafter average Austrian ZeveZ In raw products, the value of average Polish consumption was even higher relative to the Austrian ZeveZ; in proaesaec, foods, Zess than one-half -- just one instance of the difference in composition. The dif- ference between average Polish and West German diets would be somewhat greater. Maurice Ernst, "Postwar Economic Growth. in pastern Europe (A Comparison with Western Europe)," New Directions ir the Soviet Economy, Part IV, Washington, 1988, p. 888. - 11 - SECRET 25X1 25X1 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Table 3 Average Per Capita Food Consumption in Poland in Families- of Manual Workers Outside Agriculture Kilograms 1565 19c.6 1967 1968 1969 Flour 18.3 17.3 16.7 16.4 16.1 Bakery goods 114.1 116.0 111.9 110.9 109.3 Noodles 1.9 1.7 1.9 1.8 1.8 --Rice, groats, cats 5.7 5.9 6.3 5.7 5.7 ` Potatoes 137.2 145.5 141.2 138.5 141.7 CO ~ Vegetables and vegetable products 57.7 58.7 60.8 56.0 56.5 Fruit and fruit products 25.5 38.0 34.0 37.3 34.0 S n' Meat and meat products 48.2 47.1 44.5 43.4 44.3 F-- ~ t~7 Fat (excluding butter3 14.8 14.9 14.6 14.0 13.6 r Fish and fish products 5.4 5.3 6.1 5.8 6.3 Milk (liters) 107.3 102.5 102.5 104.6 104.8 Butter 5.5 5.6 6.0 6.3 6.4 Cream 5-8 5.6 5.9 5.8 5.9 Cheese 6.3 5.9 6.5 6.4 6.7 Eggs (units) 138.9 148.9 125.5 158.9 163.5 Sugar and confectionery 29.7 31.0 25.4 25.9 25.6 a. Unless otherwise sndicated. Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SE l I U`,' .' and dropped in 1969 and 1970. For meat the pattern in different in that production held up in 1969 -- on the basis rf good inventories of feed -- and only began dropping for 1970. 21. The increnne in supply in the late 1950e was aided by US deliveries of agricultural product" on a very long-term Lntorest-free credit (under Public Law 490, Title 4) from 1957 to 1964. With these deliveries, Poland was able to raise meat production fast enough to nffoed both an incic:ease in moat exports -- an important source of hard currency -- and a rise in domestic consumption to an acceptable level. The US decigio:i to stop deliveries at the and of 1964 put a squeeze on Polish consumption and exports that could have had serious iim odiato affeccrs, had it not been for soma Soviet help and a providential rise in domestic output in 1965-66. 22. Even with this help, Polish leaders were faced with some hard decisions on exports versus consumption after 1966, when output leveled off. Apparently they decided to hold both at about the same level. Total agricultural and food exports held fairly steady, although most exports vsrirad sharply -- they were out in 1968, mainly as a result of a drop in domestics pork production, jumped for- ward in 1969, and declined again in 1970. Meanwhile, agricultural and food imports increased. Per capita consumption increased somewhat, but only because of a continued rise in peasant consumption, already much higher than urban consumption in most respects. 'rho exceptions are meat and fish, of which peasants still eat somewhat loss than workers, althc.sgh the gap narrowed rapidly in the 1960n to loss than St. 23. Unfortunately, while the quantities sup- plied remained almost stable, affective demand continued to rise. Nonagricultural employment went up by 3/% per year in 1966-69, partly because of substantial now additions to the labor force and continued migration from agriculture, but also because enterprises, eager to fulfill output plans, stepped up hiring of women. At the samtt time, average wages rose by more than 4% per year, and the wage bill was 3ttl greater in 1969 than in 1965. Most other incomes, including payments to peasants, - 13 - SECRET Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SPICYR 1-1, ose less rapidly; teen so, total int2istAo Vont up 31% over the four years.* 24. tire rapid yrt th of 1n&- s durinj !Y66-61 Wan not by any NO-Ann t atahed by pi lee 1"Creat as.. Na t ntionati ear. lier, the ragit raise] rotax l prices of twat b;t 17% in 1061 thinly to d&tVcnsat4 for a daolina in supplias. athgt Signifi!ant re- tail prime increases in the Period for rloods %m-re for fish {1)%) and tobaodo (29t). Prtdea also grant up for nr products in the fray "rlkat -- twat, +s,tga, and vejetablas -= by 94'9*. Pricaa or a aervi+ es, heaviky tutbaldlte(l in Poland, krnre also rnitierl, notably rent Ca Whoppity 90$ but ot: a #mail bases) and public transport (164). taut otter?:11 the price rise vaa only but 0* for food, it for other f a, anal 141 for services -- an increase of about 94 tot +onstoption on bite whole 4urinj the four years. ',5. Polish consumara, to bFg ?'t spent a substantial part of their inureaaed putthasino potter on ulothas, t1urable#* and nervicea, incluf3in * those for wbith prices had risen. In nominal pracf4s* the total incr'eaae in no-ht' d plitc-hases of IoO'do Vas 14# in 1066-C )o and ex nti tug-rea for aervit-P-0 U-ote vp by 4$t. A* a result, an thwilh purchases of fo , + , b varutges, and tobacco chick teprasentsd a ~% 40% of total purchasca of o&s by houa+sholtis.o ,... roan by only 2l%,4.-* overall expatvt3it~raa on ,4a aJ aervi+ s roses by 10*. 1 o a the !It in reape ir, iiv ? did nut sl ate si ificaivt axcasa purchasitoj ptar in the hand of u*Otkarg. fA4A -1 T.14nrs t=3 saw a~~e $ ~~ ~, ~ any mash rc~~ a.. Lion rose, but rex:.ainat mall rglative to total inowV4. Taoa fn4 ta, reflector co T ably 4, help further to explain vhy the pdantvers, and the ldatera themaelvep. Who tr ditio.n4l,ly thitfk *t.att iy in t',er,++a of balanoas, stern not. I-eat ly -wooer as ut lb- flationar'y presauraa, the lass ao b ca~Af a t?tqlig#v R'jtlt af` ~a.? mT y.9?J J,a01t' l17 ; irk 1~'i ! 4 y J* 4ff. ? 3 r,~, t~ A ~4A~ +7iEO e, t `a 'r r~lff i 6 `~. Pi1 x.~yt. fi r t h .6 A. r 4 ;f **"to i tsar $~96~r 3fm, cr +11yrO40 Or a,,#; i., ierc Qd r al per 4GI i~t Ar e+t+ o !?~ # oi'"#; i A >t= iM1 : ' .1*7i~ - ~ #i~t!'11E Aar cr ?r~ #t;ct`a 1cr ~^s~ :ash. as #vo ,parr. 41 ("Ore4o fa r ce ~~a , - 14 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 eclassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 SfAa(.9 tT TAW* 4 hoy it* a ah4 rb t 1turjg? or t~ ,a t~ =l fh Pcolshxl __ D 1 1960 9 6 . 50 r pay h ,o to %rot t ro ah O I -yae 30.' 41.9 Uat i a iii 1#~3ahahl *rtiAAho 4.3.I fiat ar ht lpe-x o tPRet flhj Ih+ # ftt) 4Q. 4' . y,other not aartvihda ? si ,p ) 9yg~j *.P 1zq.4 Pehi 1 iho I. 3 L a ~lfat iaay hta Ate) n~",4vA~~#a i a $3. 1?1 Itat ?ana r cr Jit? a14 6110*hr-a*2f Iht*r*a'4 f sS vlh s a#?CAI 213 #A?'t i 4~alaa 1a1Yatt i l L ;"f i 'yam. R{y/, d... r Pt lvato trade "r # oark4t a l a {` J i.1+ trie ar are a y E .~rafa rt -an :` #d"tlt~,y~i 4tY #f.lt f:; #SIwaY L M6" a*.& I t 7t r J.: a w rf .. rt . r good# aft-4 tataicoQ TOW agrv1cVa _Is - I%F w f 'd 3" ? 5 f. Y~ s 3 4,1.' Y ') S%4 Declassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 eclassified in Part - Sanitized Copy Approved for Release 2011/10/31: CIA-RDP85T00875R001600030196-2 "it VV ~ ~3 !~?~'rr 4s1