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however, most Norwegian business is privately owned, and Norwegian economy is
basically one of private enterprise.
Wartime decrees of the Labor government, which have now been substantially
translated into the so-called Price Control Law have gone beyond the tradition-
al degree of control. Under the decrees, the Price Director was enabled to
(1) regulate and control prices and profits; (2) regulate and control produc-
tion, sales and other business activity in order to prevent harmful competi-
tion; (3) forbid businesses to limit or stop production; (4) require them to
produce certain goods or do certain work at prices or under conditions deter-
mined by the Director; (5) prevent new businesses from being further developed.
In addition, imports and exports are strictly controlled by license.
The decision reached in the matter of the Price Control Law will have much
to do with the future structure of Norwegian economy. Present indications are
that it will probably result in increased government control of private enter-
prise beyond the time that such control can be justified on the basis of an
existing emergency.
The Price Control Law extends the effective period of the wartime decrees
but in modified form. It is of a temporary nature, however, as evidenced by
the Prime Minister's proposal that it be replaced after a year by two laws,
one dealing with price control and the other with general controls for business.
A national labor law also has been passed which, in effect, gives the govern-
ment power to allocate labor on a compulsory basis.
The labor law was termed by the government as necessary in order to imple-
ment the provisions of the Price Control Act.
6. Foreign Trade.
Despite import restrictions, Norway's 1946* foreign trade resulted in an
excess of imports over exports of 995,000,000 Kr. ($199,000,000). This import
excess is still increasing. While imports are only about 70% of 1938 by vol-
ume, they are 234% of 1938 by cost. The net income of the merchant marine COV-
ered 600,000,000 Kr. ($120,000,000) of the deficit, leaving Norway with a total
deficit of $70,000,000. Decline in net revenue from shipping was the principal
cause; the rest resulted from the failure of export industries to resume full
production.
*
The export price index for 1946 is 190 (1938 - 100). This ratio should be
borne in mind in considering 1946 foreign trade as compared with 1938 fig-
ures.
DECLASSIFIED
E. O. 11652, Sec. 3(E) and 5(D) or (E)
C.I.A.
OSD letter, A4
2.15.77
II-8
By NLT-
He; NARS Date 6.7.77
SECRET
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"ocrText": "SECRET\nhowever, most Norwegian business is privately owned, and Norwegian economy is\nbasically one of private enterprise.\nWartime decrees of the Labor government, which have now been substantially\ntranslated into the so-called Price Control Law have gone beyond the tradition-\nal degree of control. Under the decrees, the Price Director was enabled to\n(1) regulate and control prices and profits; (2) regulate and control produc-\ntion, sales and other business activity in order to prevent harmful competi-\ntion; (3) forbid businesses to limit or stop production; (4) require them to\nproduce certain goods or do certain work at prices or under conditions deter-\nmined by the Director; (5) prevent new businesses from being further developed.\nIn addition, imports and exports are strictly controlled by license.\nThe decision reached in the matter of the Price Control Law will have much\nto do with the future structure of Norwegian economy. Present indications are\nthat it will probably result in increased government control of private enter-\nprise beyond the time that such control can be justified on the basis of an\nexisting emergency.\nThe Price Control Law extends the effective period of the wartime decrees\nbut in modified form. It is of a temporary nature, however, as evidenced by\nthe Prime Minister's proposal that it be replaced after a year by two laws,\none dealing with price control and the other with general controls for business.\nA national labor law also has been passed which, in effect, gives the govern-\nment power to allocate labor on a compulsory basis.\nThe labor law was termed by the government as necessary in order to imple-\nment the provisions of the Price Control Act.\n6. Foreign Trade.\nDespite import restrictions, Norway's 1946* foreign trade resulted in an\nexcess of imports over exports of 995,000,000 Kr. ($199,000,000). This import\nexcess is still increasing. While imports are only about 70% of 1938 by vol-\nume, they are 234% of 1938 by cost. The net income of the merchant marine COV-\nered 600,000,000 Kr. ($120,000,000) of the deficit, leaving Norway with a total\ndeficit of $70,000,000. Decline in net revenue from shipping was the principal\ncause; the rest resulted from the failure of export industries to resume full\nproduction.\n*\nThe export price index for 1946 is 190 (1938 - 100). This ratio should be\nborne in mind in considering 1946 foreign trade as compared with 1938 fig-\nures.\nDECLASSIFIED\nE. O. 11652, Sec. 3(E) and 5(D) or (E)\nC.I.A.\nOSD letter, A4\n2.15.77\nII-8\nBy NLT-\nHe; NARS Date 6.7.77\nSECRET"
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