Created: 8/9/1954

OCR scan of the original document, errors are possible


IKTEIilOSKCE AOZKCT Office of the Chief, Economic Research Office of Research end Roporte

Current Support Memcrnnduu



SUBJECT: Soviet Cold Shipments Continueigh Level

Tho level of Soviet geld shipments in the first tour months4 and nego-.iations currently underway indicate the continuation of tha heavy sales begun in Shipments for January through April are estimated

O million.

Host of the gold -as believed to have been shipped to the UK. Sales vera rise nade on the Paris gold markotj throughout this period. Offers and sales were reportedly made in January to Switzerland through the Soviet-dominated sancue Cosmerciale pcur l'Europe du Hord/ Little gold was believed to have Men sold in Switzerland because of thatercent turnover tax levied on all private purchases of gold bars and coins. This tax,emoved oni.

The sits of potential Soviet gold exports is indicated by reportedations for the sale0 worth of gold. 2/ Negotiations reportedly beganarch between USSR and tho Union Bank of Switzerland and Sameland Company, Ltd. 2/ Another report confirmed that both Montagu and Union Bank werearge scale transaction of Soviet gold. 4/ Italeas consummatedesult of these negoti-

Oneportoviet representative in London had informed Samuel Montagu and Company that his government would not sell gold until further Betweenarchpril, however, the UK made an additional purchase of gold, worth00 froa the USSR.

From January to April, there were several rsporte of gold ofterod by the USSR. One report stated that Soviet representatives had offered gold to the elgian government In return for dollars or free sterling. 6/ eportS broker stated that "The USSR ltsslf is not asking for credit and ia selling gold continuously to Western Europo. ound the prevailing opinion among Western European businessmen to be that tho supply of Soviet gold Is. , 2/ Another source reported that the sales were to the French Equalization Fund, probably to be applied against the French debt to the SPU.r. the UK, most sales were presumed to have boon made diroet to the Bank of


Sngland aad, litererch when the London gold market reopened, Soviet

Continental newspapora report that Soviet gold gales on the London gold market are continuing but fall to give an indication of the level. Britiah sources neither eonfirs nor deny thU.

Into the gold estimated to have been shipped to the West, the concluded agreements for repayments, of claims with two other free-world coun.rics, Finland and Iran. The agreement with Finland providedold payment in partial settlement of4 Finnish trade credit. 9/ Thewas implementedune with the arrival of gold valued atillicn dollars. uly the Soviets agreed to pay eleven tons of gold valued at approximatelyillion dollars to Iran in partial settlement of claims arising from wartime occupation of the Country by the Soviet

The continued offer of Soviet gold haa had no appreciable effect on gold prices which neeredevel at the end It haa been apecuieted tbat prices have been stabilised in part because of Sooth African refusal to asli gold at belowevel and the consequent withdrawal of her etccke from the market for periods of time during the past few months. U/


Sew lork. il/ L'Scho De La Bourse,4

Original document.

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