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Report, Central Intelligence Agency, Iceland, Situation Report 14

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A return to economic stability is contingent upon a return to a considerably lower living standard supportable by Icelandic foreign trade. The basic problem arises from the inflated production costs of the Icelandic fish industry, in the face of renewed foreign competition and falling world prices for fish. Opposition to wage reduction, led by the Communists who control the labor move- ment, is an important deterrent to effective deflationary legislation. Recent meas- ures taken to increase government revenues and to absorb excessive purchasing power include a capital levy and a sales tax, as well as the abandonment of consumer subsidies. II-5

Page data

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20
Source index
0
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Context sent to Scholar

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