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SECRET SUMMARY Norway's political influence, economic resources, and military strength are negligible from the point of view of United States security. Its strategic significance lies in its geographical location as a potential base for operations in the North Atlantic and northwestern Europe. The government of Norway is one of the most stable in Europe. The present Labor Government, with an absolute majority in parliament, is likely to remain in power until at least 1949. Though the majority party favors eventual government ownership or control of the sources of wealth, it will not be led into the Soviet orbit through the process of socialization. Despite extensive government control and regulation, Norway's economy is at the present time still essentially one of free enterprise. It was not extensively disrupted by the war or the German occupation but wartime shipping losses and inflation of the currency have hampered recovery. The government controls enforced since the liberation have forestalled serious inflation and the gradual recovery of Norway's foreign trade virtually assures continued economic stability. Norway will not be able to contribute substantially to European recovery, but neither will it make any heavy demands for economic assistance. The disruption of European markets for Norwegian trade has caused a temporary shift in Norway's trade, mainly toward the United States. The in- crease in Norwegian-Soviet trade is based on experience and does not indi- cate a trend toward the East. Norway is not a military power and has no expectation of becoming one. Realizing this the Norwegians aim at maintaining a neutral position be- tween the East and the West and actively participate in the United Nations to promote world peace. Military occupation of the country would afford some ad- vantages in geographical location but the economic advantages would be rela- tively minor, principally the production of explosives by the fertilizer industry and the production of aluminum. The USSR has revealed a desire to control the Spitzbergen Archipelago, a Norwegian possession under the Svalbard Treaty, and therein lies a potential source of international dispute. Renewed Soviet demands for base privileges on the Archipelago would be of concern to the United States because the US is a signatory to the Svalbard Treaty, and because the establishment of Soviet bases there, closer to the major industrial centers of the United States than any now possessed by the USSR, would constitute an additional threat to the security of the United States. In spite of the proximity of the USSR to Norway, given reasonable Western support, the Norwegians will remain friendly to the Western Powers and a minor deterrent to any expansion of Soviet influence in Northern Europe. DECLASSIFIED E. O. 11652. Sec. 3(E) and S(D) or (E) - i - C.I.A 2-15-77 OSD letter, A SECRET By NLT NC ₽ NARS Date 6.7.77

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Page context
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    "ocrText": "SECRET\nSUMMARY\nNorway's political influence, economic resources, and military\nstrength are negligible from the point of view of United States security. Its\nstrategic significance lies in its geographical location as a potential base\nfor operations in the North Atlantic and northwestern Europe.\nThe government of Norway is one of the most stable in Europe. The\npresent Labor Government, with an absolute majority in parliament, is likely\nto remain in power until at least 1949. Though the majority party favors\neventual government ownership or control of the sources of wealth, it will not\nbe led into the Soviet orbit through the process of socialization.\nDespite extensive government control and regulation, Norway's economy\nis at the present time still essentially one of free enterprise. It was not\nextensively disrupted by the war or the German occupation but wartime shipping\nlosses and inflation of the currency have hampered recovery. The government\ncontrols enforced since the liberation have forestalled serious inflation and\nthe gradual recovery of Norway's foreign trade virtually assures continued\neconomic stability. Norway will not be able to contribute substantially to\nEuropean recovery, but neither will it make any heavy demands for economic\nassistance. The disruption of European markets for Norwegian trade has caused\na temporary shift in Norway's trade, mainly toward the United States. The in-\ncrease in Norwegian-Soviet trade is based on experience and does not indi-\ncate a trend toward the East.\nNorway is not a military power and has no expectation of becoming\none. Realizing this the Norwegians aim at maintaining a neutral position be-\ntween the East and the West and actively participate in the United Nations to\npromote world peace. Military occupation of the country would afford some ad-\nvantages in geographical location but the economic advantages would be rela-\ntively minor, principally the production of explosives by the fertilizer\nindustry and the production of aluminum.\nThe USSR has revealed a desire to control the Spitzbergen Archipelago,\na Norwegian possession under the Svalbard Treaty, and therein lies a potential\nsource of international dispute. Renewed Soviet demands for base privileges\non the Archipelago would be of concern to the United States because the US is\na signatory to the Svalbard Treaty, and because the establishment of Soviet\nbases there, closer to the major industrial centers of the United States than\nany now possessed by the USSR, would constitute an additional threat to the\nsecurity of the United States.\nIn spite of the proximity of the USSR to Norway, given reasonable\nWestern support, the Norwegians will remain friendly to the Western Powers and\na minor deterrent to any expansion of Soviet influence in Northern Europe.\nDECLASSIFIED\nE. O. 11652. Sec. 3(E) and S(D) or (E)\n- i -\nC.I.A\n2-15-77\nOSD letter, A\nSECRET\nBy NLT NC ₽ NARS Date 6.7.77"
}