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this troubled area. Although Communist China faces serious
economic problems which may impose some strains on the Soviet
economy, it is probable that the social and economic problems
faced by the free nations in this area present more than off-
setting opportunities for Communist expansion. Third, the
Soviet Union holds positions in Europe which, if it maneuvers what's
new
skillfully, could be used to do great damage to the Western
about
this?
European economy and to the maintenance of the Western orien=
tation of certain countries, particularly Germany and Austria.
Fourth, despite (and in part because of) the Titoist defection,
This
the Soviet Union has accelerated its efforts to integrate
cuts
both
satellite economy with its own and to increase the degree of
ways
autarchy within the areas under its control.
Fifth, meanmhile Western Europe, with American (and
Canadian) assistance, has achieved a record level of pro-
How
duction. However, it faces the prospect of a rapid tapering persons
No
off of American assistance without the possibility of achiev-
this
ing
by its own efforts a satisfactory equilibrium with
the dollar area. It has also made very little progress toward
"economic integration", which would in the long run tend to
improve its productivity and to provide an economic environ-
ment conducive to political stability. In particular, the
movement towards economic integration does not appear to be
rapid enough to provide Western Germany with adequate economic
opportunities in the West. The United Kingdom still faces
economic problems which may require a moderate but politically
difficult decline in the British standard of living or more
American assistance than is contemplated. At the same time,
a strengthening of the British position is needed if the
stability
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"ocrText": "TOP SECRET\n-16-\nthis troubled area. Although Communist China faces serious\neconomic problems which may impose some strains on the Soviet\neconomy, it is probable that the social and economic problems\nfaced by the free nations in this area present more than off-\nsetting opportunities for Communist expansion. Third, the\nSoviet Union holds positions in Europe which, if it maneuvers what's\nnew\nskillfully, could be used to do great damage to the Western\nabout\nthis?\nEuropean economy and to the maintenance of the Western orien=\ntation of certain countries, particularly Germany and Austria.\nFourth, despite (and in part because of) the Titoist defection,\nThis\nthe Soviet Union has accelerated its efforts to integrate\ncuts\nboth\nsatellite economy with its own and to increase the degree of\nways\nautarchy within the areas under its control.\nFifth, meanmhile Western Europe, with American (and\nCanadian) assistance, has achieved a record level of pro-\nHow\nduction. However, it faces the prospect of a rapid tapering persons\nNo\noff of American assistance without the possibility of achiev-\nthis\ning\nby its own efforts a satisfactory equilibrium with\nthe dollar area. It has also made very little progress toward\n\"economic integration\", which would in the long run tend to\nimprove its productivity and to provide an economic environ-\nment conducive to political stability. In particular, the\nmovement towards economic integration does not appear to be\nrapid enough to provide Western Germany with adequate economic\nopportunities in the West. The United Kingdom still faces\neconomic problems which may require a moderate but politically\ndifficult decline in the British standard of living or more\nAmerican assistance than is contemplated. At the same time,\na strengthening of the British position is needed if the\nstability\nTOP SECRET\nSERVICE"
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