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    "localId": "486498734",
    "label": "Report, Central Intelligence Group, Norway, Situation Report 5",
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    "title": "Report, Central Intelligence Group, Norway, Situation Report 5",
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    "productionDates": [
        {
            "day": 1,
            "logicalDate": "1947-09-01",
            "month": 9,
            "year": 1947
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{
    "seq": 20,
    "pageIndex": 0,
    "type": "photo",
    "url": "https://s3.us-east-1.amazonaws.com/NARAprodstorage/lz/presidential-libraries/truman/hst-psf/602196/875496/875496-02-020.tif",
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    "ocrText": "SECRET\nbudgetary deficit at a cheap rate. The policy was successful to the extent\nthat the increased economic activity more than offset the increases in mone-\ntary mediums. High level of production and external borrowing to finance im-\nports probably will prevent inflation from becoming more serious than it is now.\nNational income in 1946, in terms of 1939 Kr., , was about 4,938,000,000\ncompared to 4,800,000,000 Kr. in 1939. The 1946/47 budget was of record pro-\nportions (2,517 million Kr. ) and involved a $155,000,000 deficit. A 2,117 mil-\nlion Kr. ($425,600,000) budget was introduced for 1947/48 showing estimated\noperating expenditures of 1,886 million Kr., $39 million less than the 1946/47\nbudget. Operating income has been estimated at 1,650 million Kr. ($330,000,000),\n82 million Kr. below the 1946/47 budget. Major cuts in the budget are in the\nDefense, Commerce, Supply and Reconstruction Departments, price control subsi-\ndies, and occupation and liberation expenses. The deficit of 463 million Kr.\npresumably will be covered by new financing. The Government has recently is-\nsued two relatively short-term state loans at low rates of interest, thus\ncarrying forward its easy-money policy. Those offerings were favorably re-\nceived by the public, and additional loans up to a total of 350 million Kr.\nmay be offered in the near future.\nCurrency in circulation continued to increase and in December 1946 amounted\nto 1.9 billion Kr., compared to 574 million Kr. in 1939 (presently about 1.8\nbillion Kr. Part of the increase reflects higher business volume, but it\nalso emphasizes the need for vigilance to check inflationary forces.\nNorway has $50 million to her credit with the Eximbank. This has not been\nused because of Norway's objection to the stipulation that all goods purchased\nwith this credit should be transported in US flag ships. This stipulation has\nsince been modified to permit 50% of the goods purchased to be transported in\nother than US flag ships and it is thus probable that Norway will soon avail\nherself of a portion of the credit. Her dollar credits have also been recent-\nly augmented by the highly successful sale of $10 million worth of Norwegian\nbonds in the New York money market. Since the Storting has authorized borrow-\ning up to $50 million, the success of the first offering probably indicates\nadditional bond offerings in the near future.\n5. Government Controls and the Price Control Law.\nIn Norway, commerce and industry have long been influenced by two types\nof control: control by Government and control imposed by private business\nmonopolies. Three government monopolies in liquor, fuel, and grain, directly\ncontrol the operation of domestic and foreign trading in these commodities.\nThe Government owns and operates the railways, telegraphic services, and about\n75% of the telephone system. In most of the hydroelectric plants, the State\nholds a substantial if not a controlling interest, there are private combines\nwhich fix prices, establish sales and production quotas, and determine busi-\nness practices. In acting as referee between these combines, the Government\nexercises a degree of control over them. In spite of government controls\nDECLASSIFIED\nE. O. 11652, Sec. 3(E) and 5(D) or (E)\nC.I.Q.\nletter,\n2.15.1974\nOSD\nII-7\nNARS\nDate\n6.727\nNLT-14C\nSECRET\nBy"
}