USSR: Olympic Games Preparations
.an inlcuigence AssessiMni
APPROVED
1 sep
National
USSR: Olympic Games Preparations (u)
An Intelligence Assessment
Information available as of79 has been used in the preparation of this repon
Ihe Office of EconomicOffice of Geofirapr.ic
and Cartographic<nd|
^Soi the Of',ccPolitical AfTj'.-iTi contribuied to the preparation of this paper. This repcr: -ishe National Intelligence Officer (or LSSR-Eaitern Europe. Comraenis and queries are welcome and may be addressed to Chief. USSR/Eattern Europe Division. OER. on
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USSR: Olympic Games Preparations (u)
Soviet Union worked hardbtain ihe right to host0 Summer
Olympics and undoubtedly considershowcase event of the first order. It fa engagedassive effort to build and renovateacilities, most of (hem in the capital area. Moscow probably will spend the equivalent of about S3 billion, making the Summer Olympics (he costliest co date, (u)
Moscow should be ready for opening day ceremonies, but only by reshuffling domestic construction prioritiesime when the country alreadyerious backlog of construction projects. Officials charged with balancing Olympic demands in the broader context have become increasingl> critical of the amount of resources channeled into the Olympic effort. Construction workers have been imported from other areas of thend in some cases the USSR has contracted for foreign construction teams. Non-Olympic building in the capital has been curtailed to keep Olympic construction on irack^'X
The games will present the USSR with several problems. Handling the unprecedented number of foreign touristsonumental task for authorities not attuned lo Western travelers. In spile of increased hotel capacity, new restaurants,ajor effort iq (rain Soviet personnel in Western tastes. Moscow will beourist frontier town Sovje: leaders will also have to cope with troublesome political issues. Team accreditation issues such as Chinese and Taiwan. Israeli, and German representation are sure to surface as they do before every Olympiad. Perhaps of greater concern to organizers will be how to handle interaction between Westerners and Soviet citizens, including possible actions by dissident Soviet groups^^p^
On the economic front Moscow will benefit from (I) upgraded cityore housing after (he games are over,mproved tourist accommodations. Soviet officials can >ay realistically that the bulk of the nonsport facilities would have been built whether or not Moscow hosted0 Olympics. Even Olympic-related facelifting falls under the Soviet interest in polishing Moscow's international image. As for new construction, the Olympic Village will be added to the ci(y's stock of rental apartments while the main Olympic Ptess Center is scheduled to become the headquarters of the Novosii Press Agency. And by all accounts ihe new passenger terminal at Sheremet yevo Airport and Ihe new central post office also were badly needed, (u)
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CDiiliiiirniti
Foreign participationey element in Olympic preparations in spite ol' Moscow's desire to keep theoviet show. In areas such as electronic support ecuipmem and accommodations for tourists, the Soviets simply lack the expense to meet Western standards. Orders Tor Olympic-related goods and services with Western suppliers have risen to an0 million,^
The Soviets have launched an aggressive program co generate income to case the hard currency strain caused by such outlays. Expected revenues of0 million should offset about one-half of the projected hard currencyosts; more than SlOO million will be obtained from television broadcast rights alone. Substantial sums alsobe pul'ed in from foreign visitors: the Soviets, for example, require US travelers to sign up for package tourjday itinerary in which Moscow is only one of several stops in the USSR. Even though hard currency revenues will fall short of costs, the Soviets have reduced the drain on foreign exchange reserves by making extensive use of low-cosi Western credits. In effect, they have pushed iheir Olympic payments burden into, when increased earnings from tourist facilities left over from the Summer Games will be available to offset loan payments due the West for Olympic purchase*
Indeed. Moscow may wellet hard currency inflow from the Olympics: Our calculations show that, overall, the USSR's Olympic account could be in the black by next year.he Soviets couldrofit even if the tourist utilization of the Olympic facilities averages onlyercentIi*rf
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USSR; Olympic Games Preparations (u)
Introduction
The Soviet Union il well along *ith preparations totd Olympiad. Tbe USSR looks forward to the international prestige rt eipects from successfully staging the games before worldwide audiences. The Olympic effort alsoeshuffling ofprioritiesime when the leadership faces growing economic difficulties. In political terms, media coverage and large numbers of foreign visitors will open ihe Soviet Union to an unprecedented level of public scrutiny, in which actions by dissidents and contacts between Western lourisis and Soviet citizens could become problems to Soviei leaders. Thisassessment discusses these issues andhe extent of Soviet Olympic preparations (the iiaius of facilities and the resources mobilized to stage thehe economic costs faced by the USSR and the role of Western suppliers:he means by which the USSR is financing the Earr.es and its success in covering
Tsarnt Russia was involved in the Olympic mo>emcnt from in earliestussian was one of theembers of ihe Internationalnd Tsarist athletes competed in several Olympiads6evolutionary Russia withdrew from the movement after Worldnd organized its own Spartakiad (USSR Peoples* Games) and Red Spirt International as alternative sport contests. The Soviets rejoined the Olympic movement following World War II when, after competing in several regional European championships, they sent aiMctes to2 Summer Gamel in Helsinki, (u)
Although Khrushchev expressed interest in hosting the Olympic games as earlybe first serious bid came0 when the USSR competed against Los Angeles (which wanted the gamesapstone for the bicentennial celebration) and Montreal, ihe eventual
winner for6 games. Four years later Moscow won the bid for0 Summer Games over Los Angeles because of (a) Soviet guarantees to finance requisite sport and tourist facilities andeneral feeling among ihe IOC membership that the time had come to hold ihe gamesommunist
Organizational Structure
0 Olympics presents an enormous challenge to the Sovietcoast ruction, management, provision ofnd securityo deal with these challenges, Moscow established the Oiytn-piad-SO Organizing Commiitee int oversees all aspects of theconstruction of sports facilitieshe organization of Ihe games themselves, including fund raising, security, ticket sales, media relations, and personnel staffing. The Commiitee, working ia pan through commissions, coordinates ihe activities of Soviet ministries,and other organizations in matters related to the gameshe Committee has been given
Organizational Structure of0 Moscow Olympics
SOVIET ORGANIZATIONS
Main Atfrtifisslraison lo
holding ord Olympic Games
MM AdrttirviiratiCn for
n iWism
Sopc rt
|HTO *or to'eign
COftttruCljon
Staie Cc^miuee for Broaccastinc
Personality
Viaiy Smirnov
*
vtaMi* promy^OT
COMMITTEE
Non-Olympic Position
ouncilinister* ol the USSR, Chairman or ne State Committee
lorir*
n;er>iahonal
Olympic Comm*ttee
Chairman or the USSRfor Pnystcal Culture and Sjorti
Carman. Mosco- City E'eCJttVe Commttie*
Vce Chapmane Iniernationat AKitn Commission of tne USSR
5e
INTERNATIONAL 3LYMPIC COMAJl'TTE
_ USSR NATIONAL OLYAlffTC COMMITTEE
SlJ/OOtiQ- TASS EMor
SPORTS COMMITTEE
Chairman of the RSFSR
Council ol Masters
K G'ei
Chairman of tn* Estonian Sovncii or
Mvrticioa-ubcontracting Si-j'^ Facilities and Technical Maintenance Te<cvis.on ana Radio 8'Oaacaating Communication*
Automated Control Systems aad Technical
Information Reception and Accommodation Transport
wu-tJc'pai ant* Domestic Services Catering and Trade Organization
Sacurjly and Public Order
Pore ign Aerations Organization or tha Events ZolcufAt Program* and Service* 5altcnon and ProCucUon of Goods deanng ihe Olympic Ematem
ST AFP DEPARTMENTS Uaisonwim the IOC
m national Olympic Committees
Protocol and Olympic Ceremon.es
nd Iniormation
fte'eree Supaon Information
Program-Meihod
Foreign Relations
Technology and Construction
Supply
.ogisnci
Piaftjthrttj anc* Revenue
Propaganda
SpO'tS Pf3if*mi
iff*ip te
Ci'*et
AflfrtfOry Soi*
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foreign trade organization status so that it can deal directly withfirms to buy ec,uipmem and sell rights to Olympicommission on Security and Public Order is headedeputy Minister of Internal Affain while the Chief of Intourist directs the Commission on Reception and Accommodation. The Committee also has separate administrations for Propaganda and Sports Programs and Stafffor public relations, logistics, and liaison with other Olympic groups. Smaller subordinate organizing committees have been set up in other Olympic cities, (u)
Members of the Committee have been chosen for their skills, experience in sporting matters, and/or theirhe government bureaucracy. TheChairman. Ignatiy Novikov, brings to theeffort high-level experience in government and the construction industry. One ofeputies to Premier Kos-gtnoting member of the CentralNovito* chain the State Committee for Construe.
Affairs (Gossvoy) and is (bus the highest ranking official of that industry His appointment undoubtedly refiects the priority the government attaches to the completion of Olympic sports facilities and related building. Experience with past Olympics is being provided by (he Committee's Secretary General. Aleksandr Gresko. who negoriMed with the IOC in bringing the games to Motcow and served as the USSR's liaison officer to the Montreal Olympics. Other leading members include Sergey Pavlov, forears Chairman of the Committee for Physical Culture and Sports and head of the USSR's National Olympic Committee: Vladimir Promyslu. Chairman of Moscow's Executive Committee; and Allanhief TASS editor. (U)
The Montreal Contrast
6 Olympic preparations offer some object lessons for the Moscow effort0 From the beginning, the Montreal Organizing Committee {COJO. for Comitc Organisateur des Jeux Olympiques) move lo make the Olympicpectacular artistic monument. It neglected toight rein on costs,ealistic timetable, or avoid overly complex building methods. Minimal cooperation between the local organizers and the federal government inpart reflecting
nci! feelings aver the separatist movement also added to Montreal's Olympic difficulties Moreover, labor shortage and strikes compounded the effectsate building startesult. (I) planned costs *cre exceededhe province of Quebec and the city of Montreal were saddled with0 million debt despite COJO's original claim ihat the Olympics would behe Olympic stadium was embarrassingly incomplete when the games began,he facilities found little immediate use after the games (u)
Moscow should be able to avoid many of Montreal's problems, in part because of inherent features of ihe Soviet system and ihe benefits from planning at ihe national rather than local level. In addition, strikes are rare in the USSR and the regime can employ youth labor and the military to expedite important projects and move manpower among regions and projects awe easilyarket economy could. Soviet organircrs also have viewed the Olympicsifferent and longer perspective lhan did Canadian officials. The Soviets wish to minimize expenditures on facilities. In particular, (hey arc avoiding buililing facilities thai can only be used for the Olympics, (it)
The Spartakiad Expetitnet
The recent Spartakiad wai widely billed in both trie West and Soviet pressress rehearsal for next year's games. By most accounts it wasechnical success in spiteumber of organizational difficulties thaisurfaced at the Last minute. In addition to viia problems that prevented some athletes from participating in the games, the spartan facilities were criticize: by the foreign athletes. Most other problems were minor. Difficulties reportedly wcrecncouniered with the information system, especially withnames into (he Cyrillic alphabet before entering them into computers and then recovering them in original alphabets. Because the main track at Lenin Central Stadium was not ia good shape, times were well off both world and personal records THe buildings at Prospekt Mira were also not ready for use Readily acknowledging these problems. Soviet officials say they will iron them out before the Olympics, (u)
Nonetheless, the Spanakiad vatrue ten.
Foreign representation was smjll. as few world class athletes from the West accepted Soviet invitations to compete More important, spectators were not crccur aged to attend; queried about (he absence of specu-tors. Soviet officials blamed the poor showing am unseasonable weather.ull Moon test of Olympic readiness will not come-until next summer when record numbers of tourists descend on Moscow
TheSo'ieisns Hosts
Moscow will beumber of foreign political problems prior to the Summer Olympic Games: the dilemma of China aad Taiwan, the participation by nations not recognized by or unfriendly to the USSR, the participation of the Federal Republic of Germany and West Berlin, and the threathird World boycott. The leadership also realizes (hat the unique publicity of international sportanger of ideological contamination as well as an opportunity for national exhibition It will be difficult for the Olympic host to keep tourists from observing (and judging) the Soviet lifestyle and standard cf living It nuy also be bard to conceal from their own cititens the conspicuous wealth foreigners will display at the games.the Soviets have committed their international prestige to holding the games and. on balance, wc think they will want the games to go forward with as little incident as possible, fu)
The Team Credentials Issue Most of the issues involving represeniation have earned over from past Olympics. They put the USSR in an especially uncomfortable position, however, because in the past it has openly favored onein each of the controversies, (u)
China-Taiwan. In late November the IOCesolution that assures the participationRC team in Olympic competition. The People's Republic of China would be allowed to participateegitimate member of the IOC. Taiwan, which would not be allowed to use its flag or anthem, would compete under the aegis of the "Taipei Olympic Committee of Chinahe IOC decision comes close to meeting Beijing's demand thai its team be the only Chinese
s
national team. Moscow wants the PRC to participate in the games without incident, and would particularly relish any propaganda benefits it night gain in pursuit of improved relations wiih China. To allow Taiwan, but not Beijing, into Moscow would havepectacle of ihe world's first "socialist Olympics" without the presence of ihe world's most populous Communist state, (it)
Israel. It is too early to predict how (he Soviets will handle the issue of participation by nation ihcy do not recognize, such as Israel. The Soviets do notlat policy of boycotting contacts with Israel. Although ihey did noi invite Israel to the Spartakiad games this summer. Moscow on manyother occasions has hosted Israeli groups and delegations. Since Sporting relation! involve only tacit diplomatic recognition, tbe Soviets could admit Israeli athletes and stiD main inn an official policy of nocrccof nitron and opposition to Zionism Moscow could explain its action by citing the Olympic Code. According to the Code, individuals participate as private individuals even though (hey may march in opening and closing parades in national group* and with nationalas anthems and flag houtisgs. If Moscow did this, it might accompany its action with stepped up ami-Israeli propaganda.(v)
West Germany/Berlin. Citing the Olympic Code could alsoay for the Soviets to handle the question of participation in the games by athletes from West Berlin and West Germany. Despite the existence of two German teams. West Germany still sends its athletes to sporting events in uniforms readingspousing the theme that it is the true representative of the German nation. Under Soviet pressure Donn has apparently agreed to send its athletes to Moscow in "West German" uniforms. Although the USSR docs not recognize West Berlin as part of FRG territory. Moscow, in return, has agreed to the presence of West Berlin Olympic athletes on the Wot German team. The Soviets still could require the West Berlmers to be singled out in some manner, perhaps byormula under which they would marcheparate unii behind the West German delegation, (u)
fiamliil -
Third World Boycott. The fear ofn Third World boycott of the gamesorry to Moscow. (At the Mooireal Games athletes Fromfrican countries and Gayana and Iraq walked out rather than cocnpctc against New Zealand, which had sports ties with Southo ensure Third World attendance, the Soviets recently reaffirmed their intention to ban South Africa and Rhodesia from0 Olympics The Chairman of the Soviet Olympic Committee. Ignatiyas said that the Soviet Union, agreeing wiih ihe African nations,advocates the exclusion of the racists of the Republic of South Africa and Rhodesia from all internaiional sportso ensure future Third World good will and participation in the Olympics. Moscow may pick up Ihe tab for many of the Third World teams as ii did for Spartakiad. (uj
Internal Control Problems
irst priority for0 Summer Olympics clearly is to preseai to ihemoothly run. efficiently produced pageant. To accomplish this, the regime must be prepared for the security problems created by ihe multinational aspect of the games and the incursion of foreign tourists and reporters. In addition, the authorities must deal wiih the expected demoasi rations by Soviet dissidents and human-righis acti* ists and protests from foreign countries and organizations inay as to minimizepublicity, (u)
The Committee for State Security (KGB) and the Ministry of Internal Affairs (MVD) have the primary responsibility forrouble-free Olympiad. Their personnel will be increased during the games, particularly in Moscow, to cope wiih ihe large crowds and to provide surveillance of likely troublemakers Tight control of internal travel will keep unauthorized Soviet tourisu out of Moscow, and tickets for the competitions will be distributed internally by trade union and youth organizations, (u)
Effective control can be mainiained over most of the foreign visitors through the usual Soviet restrictions on hotel and travel reservations. The USSR hopes to prevent an embarrassing tourist overflow bysiricilya fairly rapidnumber of foreigners in Moscow at any one time. Western countries are beinget number of visas for
iravel to the USSR during the games, with allocations based on ihe size of ihe nation's Olympic contingent, its population, and the number of tourist* from tbe country thai have traveled to the Soviet Union in the past. Only travelers who have accommodationsthrough Inlourisi via the officially designated travel representative in their home country will be granted visas^sf^
The United States has been allocated ihe largest block of these) while West European countries will gelach ofeds in the city set aside for Americans during the Olympicsurn over two to three limes during the lb-day Olympics Each American tourist must sign upwo- or ihiee-wcek tour allowing for only lii nights in Moscow. Time not speni at the games will be filled with lightly scheduled sightseeing, lectures, andForeigners who succeed in breaking away from their tour groups to strike out on iheir own can expect close surveillance
From Moscow's point of view, the most troublesome foreign visitors will be found among iheewspaper and television repeners covering the games. To keep reporters under control, ultramodern press centers have been set up io provide them all tbe information they should need on Olympic aciivities and all accredited journalists are to be housed at Ihe new Kosmos Hotel, The authorities, no doubl. will attempt to restrict ihe media to certain Olympic areas, but preventing all contact between reporters and publicity-seeking dissidents may prove difficult. NBC. for example, reportedly plans to use five mobile vans as pan of it* television coverage-^K.
The determination of Soviet dissidents, refuseniks. and emigrese ihe Olympicslatform for publicity could prompt the authorities lo takeaction before the games begin Tbe mostdissidents will probably be removed frombefore the games. Although some may be arrested and chargediolation of Ihe Criminal Code, the majority will most likely simply be detainedoutside Moscow, without having formal charges lodged against themossibly relatedihe Moscow diliideni community noiedharassment of Jewish and human rights admits in ihe fall9 JK
fi^K
The regime probably does not look for trouble fiom the ordinary Soviet citizen during the Olympics.recent decrees from tbe Central Committee of the Communis! Party of tbe Soviet Union, onthe maintenance of law and ordernd on strengthening ideological indoctrinationave implications for control of the Soviet public during the games. For example, the la* and order decree came down hard againstroblem which is often obvious to visitors to the Sovietollowup editorial in Pravda attacked failures by law enforcement units in reducing crimes in publicertain embarrassment if Olympic tourists are victims, (u)
Two members of the top leadership already have directly warned the Soviet public to beware of idcologi* cal contamination from Olympic visitors Inoscow city party chief Viktor Crishin advised Muscovites who come in contact with these visitors to stress the advantages of the Soviet way of life and at the same time rebuff "propaganda of ideas and principles alien toeorgian party chief Eduard Shevardnadte was even blunter when heeeting of republic party officials in9 tbat "forces'" in the world were preparing "not only for sporting batiks but also political and ideological battles" and that groups hostile to the Soviet Union intended to use the Olympics lo carry out "ideological saboiagc."Such admonitions will probably increase as the opening or the games draws nearer, (u)
Students in Moscow are being warned to stay away from Olympic tourists, who. the authorities claim, are hostile to ihe Soviet lifestyle. Youngsters arc being told to report offers of gifts to local authorities According to some sources, school children already are being signed up for summer camps and excursions out of the city, and the school lerm will end one month early.^Urf
Other measures may be aimed at preventing the overuse of limited accommodations and services during the Olympics and toun on consumer goods "on display" to impress Westerners. There have been rumors lhal Moscowbe transformedoupon zone for the Olympics to prevent Soviet citizens from buying up consumer goodsoviet foreign trade bank official, however, hasenial of ihesc rumors^f
Finally, Soviet authorises are showing increased interest in procuring surveillance devices fromfirms. This pest Summer,S firmequestuotationransmitters andutomatic directionhe possibility ofd of terrorist strike like that at Munich2 seems minimal, given the strictness of the Soviets' system and the controls placed on the influx of
The Cost of Ihe Olympics
Soviet Olympic planners believe they will betrong position to reap ihe benefitshowy international event. Above all. the USSR wants loirst-class sporting eventell-groomed city.the estimated S3 billion price tag for thefar the costliest tois suredd fuel to the fires of Western critics who argue that the modern-day games are loo expensive and unwieldy to continue in their present form. (Concern over spiraling Olympic costs has led Los Angeles organizers to emphasize financial skills in searching for an executiven Moscow ioo. financial aspects arcincreased attention from officials acutely aware of tbe "financial disaster" label so widely pinned on theillion Montreal Games Vladimir Alkhimov. Chairman of ihe USSR Slate Bank, is one of several high-ranking officials who have voiced concern that ihe Olympics wouldet loss and divert too many resourcesoscow.
Sireaiout Construction Effort In all,fficially designated Olympic construction projects are under way to provide sports, hotel, transportation, and other servicein Moscow (seenside back cover) and the rest in four other cities *here events will occur: Tallinn. Leningrad. Kiev, and Minsk Based on progress to date and the current pace of construction, we believe all
Olympic and related projects will be ready for opening
day ceremonies |
Sports Facilities. Several entirely new sportsare being constructed and many existing ones are being renovated throughout Moscow. In addition lo the Olympic Village, the city has officially desig-
1 SI9
S'ttctcni,.
limaylouo-Sokorniki
career cop library
luzfiniki Panorarru
sport* centers: Luinmki in (he
southwest. Prospckt Mirerylaukoyc in the Leningradskij Protrxkt initlievskiy Lesopark in ihe northwest, arid
rincasi. 'ul
uru:or tha new
Thehicki zompltx. acrosscr from Moscow Statehe premier Olympic site. The opening and closing ceremonies will be held in the Lenin Central Stadium athe stadium's exterior has been bolsteredaddi:ional concrete supports, and new teats, lights, press Soxes, an overhang coveting part of the grandstands, artificial playing surface have been installs games. To the southeast it Druihbaultipurpose gymnasium whose facade nukesiant crab This hall was completed? and vi jj first used to host volleyball competitions during the recent Spanakisd. Other competition sitesihnikt include the Malaya (Small!pen-air facility which has been covered, and the Pa bee of Sportsuimmirtg pool, boil of which have been renovated. (V)
On Protptk: Mira. .ust outside the Garden Ring Road that encircles downtown Moscow, stands the largest new sportscovered" with grind-stands forpectators and an ad.-yiring arena .'or
water sports. Construction of these facilitiesar behind (hat at other sues, but aneffort during the pas: tear hjs brought substantial progress lehelarger thanCapital Centrea skeleton of Steel girders, but one year later the structureexternally complete. Much work still needs to be completed inside and around this at *ctl as the adjacent .wjrr.ming arena. During the games, the stadium will be partitioned to hold soxirg and basketball competitions simultaneously. The main shimming and di'ing eventsorc scheduled lor the arena. Located near museums and theaters, this new complex willocus for senrts and cultural activities after the Olympics Jjuf
Built in an ellipt
track, it will1orld-renowned
K/ylaitkoye. in western Moscow, houses another nc*.
"c. the Velodrome rrors the enclosedNearby, the rojS'COUntry bicycle
completed. The
in-
structedand extra .icatinj; has rccertli beenhe grandstands at th; end of the-
The Lemngratiskiy Protptkl Spom Complexfacilities of two sports clubs. Dinamo and Central Army. Modernised facilities atseat stadium and the Malaya Arena.
Acros* the road, at the Central Army Sportsarge structure enclosing two separate arenas was first
used for competitions during the Spartakiad Nearby.
a multipurpose gymnasium Is being constructed;
during the Olympics it will be the site of the women's
basketball contests, (u)
Equestrian competitioni will be odd at 6tttie*skly Leiopark (Forestll Ihe facilitiesshow ring, grandstands, stables, and the steeplechasebeing specially built for the Olympics. In Izamaylovo, adjacent to the Central Institute of Physicalniversal sports hall is being builtoccer stadium has been reconstructed. Several kilometers to the west, at Sokol'mki. the Palaceports is being enlarged, (u)
Several other sites will be used for Summer Games events. Inortheast suburb, the Dinamo shooting club has been renovated and inew universal spoils hall is almost finished. In addition to the construction and improvement of sports facilities in Moscow, soccer stadiums have been modernized in Leningrad. Kiev, and Minsk, and a
yachting center has been developed in Tallinn. All will host Olympic competitions, (u)
ore0 foreign athletes, coaches, and trainers will be housed at the new Olympic Village in the rapidly developing residential area of southwest Moscow. Three groups ofstory apartment buildings are nearing completion, together with nearby training facilities, restaurants, stores, and cultural and medical centers. The Olympic Village will be convenedicrceayonelf-contained community of apanments and servicethat will0 people after the games. Another smallereing completed in Tallinn. Remarkable progress has been made at the Moscow site, which inas in the earliest stage of construction. The Olympic Village was modeled after an existing Soviet apartment-house series and the prefabricated units being used here were already in production This decision, coupled with the top priority given to Olympic projects in terms of manpower and materials, greatly enhanced construction. Unlike most Soviet construction, the quality of workmanship appears to be quite high
Izmaylovo Complex
Soviet record in building lourist facilities is not as good. Receiving therom overseas) will strain Moscow's resources to the limit. Aided by foreign construction teams. Soviet construction organizations will addotels in Moscow and increase theloial capacity byotal ofccommodationsne of the largest bote! complexes in the world is nearing completion at limaylovo in northeast Moscow, where five JO-ttory units will0 visitors during the games. Large campgrounds,one for international youth groups, and several motels are being built on ihe outskirts of Moscow. New dormitories with space for-tO.OOO will be used to house Soviet visitors. In addition, several floating hotels, orderedinnish shipbuilding firm, will be used for Olympic tounsts. (u)
O-bed hotel-capacity figure is well beiow original plans of Soviet organizers who initiallyoubling of hotel space in Moscow tooreign0 at any oneate construction starts, protracted negotia-;ions with Western firms ewer quality control, and the need to use non-Soviet labor, however, led the Soviets to scale back plans forr more new hotels in the capital00 beds tootch0 beds.Jaf
Among the new hotels being built, only ihe Kosmos will be luxury class Overall, only about two-thirds of0 total beds available in Moscow will measure up to Western quality standards and that number will be reduced further by the need to reserve rooms for IOC officials, newsmen, anduests. Many Soviet hotel rooms lack the amenities taken for granted by Westerners sucb as room service and private baths Accordingly0 Western foreign tourists will be the maximum the city's hotels can handle a; any one time. Visitors from Eastern Europe and Third World countries will be put up in the poorer Quality hotels and will have to rely on other accommodations, especially university dormitories, student hoilels. and camping facilities.^i
As plans have changed, Ihe Soviets have pared the number of foreign spectators that the USSR will allow inio Moscow during the games From aa original estimate. the number expected has steadily dropped.8 the Soviets wereisitors. Moreestern source put the figure even lower, jtisitors :
Table I
USSR: Ne- Olympic Hotels
Hum
CoaifBraU
ber
'so,-
nailhuil Mowo- "ill Irnuylova Park: live JO-noi(
iaJoL
toulhon Ntotcow Milikiy LeKCurk.ull br VaiattM
Mr=i' Freaek lira.
wuik-es:Mono
orm tlcninjied an ini< national vouih Silcl.
Tunui
ton h" tit) lionet
Aiilina
north-til m nine Morla: aetuoa olfxairr-wal lirftna
mMiI norm: ml
nono-osc1 iLjfm. built bi VuiosUvs.
Laopatk
omo*.
Wand; bu.ltdu
Kraawikiyn-MOr. Wtt-ftp
> Fin-itS^ntom.-s
ChcrtM-M* Hill
Kinguopi Sneci;iorttt; built by Finns.
ihat early planset up US-Style fast food restaurants have been rejected, the Soviets plan to erect temporary dining halls near tourist aceomrncda-lions. athletic facilities, and parks and to install automated vending machines at the mam Olympic stadium and the primary lootm airport at Sheremet'yevo. Ne- restaurants and cafes also are being built and existing ones renovated and expanded.
Communications. Several new communications centers arc being constructed far the Olympics. The Seven* story Olympic Press Center on Zubovskiy Bul'var near the city's center, will provide facilitiesoo journalists. After the games, the center will house the Novosti Press Agency and the Soviet Journalists' Uiion. The Ostankino television complex is being enlarged with tbe additionroadcast building for the Olympic Television and Radio Center. In Luzhniki. near the universal sportsechnical control Center will house computers and serve as the official broadcast information center. An international long-distance telephone switching center and two new post offices are also being built in other areas of Moscow All these facilities are either completed or nearly so JX,
Transportation. Transportation will becriiical during the Olympics, as competition sites are scattered throughout most of Moscow. The main transportation link will be the well-developed and expanding Moscow subway. Three major Olympic sportsLuzhniki. Prospcki Mira. and Leningradskiynext to subway stations, and other sites are short distances from the nearest slops.airline arrivals and departures will use Moscow's new Shcrcmefyevo-Il Terminal, still underTwo other Moscow airports. Domodedovo and Vnukovo. and one ai Tallinn are being expanded. Roads are being improved, and bridges, bypasses, filling stations, and rest areas built. OfficiallyOlympic highway routes are being widened and improved within Moscow, and new avenues are being built lo tie ihe Olympic Village and Prospckt Mira complexes to existingomputer-controlled traffic system is being installed and fringe parking lots are planned for the outer Ring Road lo relieve
expected downtown congestion The city is also beingace lifl with tree plantings and new parks and gardens (u)
Labor Sfobilized for iht Olympici
To complete the Olympic building program described aoove. the USSR has had to assemble considerable construction resources. Olympic Commiitee Deputy Chairman Kcwal has indicated taat Olympics coo-stfuction amounts to over JO percent of consiruciion in Moscow. The desire to finish the sports complexes, lourisi accommodations, and other civic improvementsime for the games has ledeallocation of reiources away from non-Olyrnpic endeavors,in the construction sector. Nonetheless, wc have no evidence that non-Olympic priority construction has been slowed by the Current Olympic push: for the most part lower ranking protects have been affected. Skilled workers such as masons and electricians are being transferred or hired to Moscow to expedite lagging Olympicrocessh has probably exacerbated problems in already labor-short areas such g| the Far East and Siberia
Despite the diversion of workersoscow the manpower shortage in the building trades reportedly continues. Inepresentativees; German construction firm was toldoscow deputy mayor that tbe local construction industry was0 workers, or aboutercent ofotal construction labor force. The strains associated wuh labor shortages are bemg alleviated in par. by the allocation0 Komsomol volunteer youths and army troops to Olympic sue construction. Moreover, some priority projects have simply been turned over to foreign consiruciion firms;
A Finnish company. Pcrusyhtyma. signed an S3 million contract tootel for Olympic tourists in Tallinn whose frame was put ip by Soviet builders. Two-hundred fifty Finnish workers are to have the hotel ready by the end of
The contract for the Kosmos Hotelurnkey deal wuh the French providing all labor, supplies, and architectural and engineering services. Finnish firms have been awarded similar deals.
West German contactors were given the go-ahead toew passenger terminal at Sheremct'ycvo Airport.
Yugoslav labor is being used to build two Moscow hotels x
Some non-Olympic projectsbeen curtailed ia the Moscow area as labor has been reallocatedbuilding Jus slowed, and moratoriums have been placed on other planned construction, includingfacilities, telephone.systems, and most administra-liveestern visitor io Moscow has noted an apparent halt on building new medical facilities and additioni to existing hospitals andosplan officials reportedly complain thai ihe shift io*ard Olympic priorities is disrupting planning and wasting labor and productive
Aside from ihe construction activtiy. the Soviets are training workers to cater to foreign tourists. ViiaJiyeputy Chairman of the MoscowCommittee recently indica'tcdpeople would be required io handle the crowds expected inhey reportedly plan ioew cooks in Wesiern tastes. The success of ihe ambitious feeding pan depends on ihe ability of the Catering Department of ihe Light Machinery and Food Industry, which will supply food for Olympic tourists, to meet Otymprc-rclaicd demands while operating under the comirami that all food for ihe games must be of Soviet and East European origin. The Soviets reportedly have already begun to stockpile some foodstuffs for ihe games."
In an equally ambitiousoscow taxi drivers and many restaurant headwaiters are being trained in basic English. German. French, and Spanish. Sefri. tbe French builder of the Kosmos Hotel, isne-year training ptogram in Preach hotels for its future Russian chefs, waiters, maids, and porters. Imourisi ii doubling ihe number of guides and translators available lo foreign visitors, drawing on university students currently receiving
foreign language training. The SovietsOO translators will be required "
Adding Up Iht Com
Soviet official* have shiedfrom discussing the cost of Olympic preparations. Because they plan to use existing facilities extensively, the Soviets Originally estimated costs for (he sports complexes alone acillion rublesillion converting6 constructionparityhis value, however, does not include the substantia! investments required for the Olympic Village, tourist facilities, and other supporting structures such as the main press center andw post office. Adding in the costs for this construction would raise the total Olympic bill
Western press report* have speculated that the real cost of the Olympics could go ai high asigure which appears excessive in view of Soviet attempt* toairly tight rein on costs. The USSR leadership has scaled back plans for new hoteland Soviet purchasing agents negotiating with Western firms have repeatedly complained of tight budgets and limited
Given the heavy Soviet reliance on existing renovated sports facilities and known new construction, weore realistic cost estimate for the Olympic effort i*igure for Moscow cited by Vladimir Promyslov. Chairman of the Moscow City Executive Committee (about S3 billion convening at ruble/dollar constructiondding the cost of hosting activities outside Moscow at the other Olympic sites would addew hundred million dollars io this(
According to numerous Soviet officials, Olympic organizers arc trying to minimize the role played by foreign firms in game preparations No doubt this reflects security concernsesire to keep theoviet affair as well as the need to balance Olympic needs against other economic requirements in
* Fordcjilfd dii-wu,un of lfc( mcihodoloir far com<iiia| indntM/dOlls- itaOK yesoUf Hi-CtnMrarno*i. tiadufefkri Tba*ilia* apdaieC5 ippurht
Joint Ceo*Oma Committer Compendium. Vol. I. "VS Slid USSR
CompanionneUuirted. (u)
allocating scarce foreign exchange. At first the Soviets targeted Eastern Europe as the source forercent of the equipment and services withercent to be supplied by Western firms. The rest was to be provided by marcoviet enterprises reportedlysupport tc (he Olympics, (u)
Moscow has. in fact, placed substantial Olympic orders in Eastern Europe and other soft currencyin Hungary, Yugoslavia, and Finland. In Hungary alone Soviet order* have approachedillion. Hungary, among (he mosi advanced of ire East European countries in producing electronic technology, doubtless has benefited from its roleupplier to past Olympic events, especially to the Montreal Games. The deals with Budapest for which we have information focus on electronicranging from tape recorders, amplifiers, lighting fixtures, and control monitors for new broadcast facilities to information boards for posting event
Yugoslavia and Finnish firms have beeneavily involved in Olympic construction projects. Yugoslavia was awarded the contract for the Sevastopol' Hotel and the smaller Soyu* Hotel while Yugoslav labor wa* subcontracted for the French-built Kosmos Hotel Because of its location, Finlandatural advantage over other foreign firms competing for work in Tallinn. Aside from construction the Finns are providing radio telephone* for security and medical communication* and fire protection equipment for the computer centers set up for the games Information on contracts with the remaining East European countries isolish firm il providing electronic broilers for restaurant cateringumber of small deadbeen noted with some Romanian firms. Reports of East German contracts have beenabsent, (l)
While (here will be no golden archc* in Moscow, foreign suppliers areubstantial input into the games, and more lhan Moscow planned. To date. Soviet planners have placed orders with Western firms Tor an0 million worth of equipment and services. The figure would be higher but for the successful Soviet solicitation of free equipment and
services in exchange for "official ijppiiei" siaiuj.0 million figure is based on known orders valued cr.0 million, including financinge believe the tally includes ail major Olympic projectshich Western firms arc involved;haveercent to account for smaller contracts which were probably signed but for which wc have no information. The largest contracts involved various computercolor TV equipment, communications equip-meni. and constructionumber of hotels and tourist facilitlevJxC
More than half of0 million in orders for goods and services from Western suppliers have been placed in France and West Germany and less than S5 million,ercent, in the United States (secisting of contracts with Westernrench businessmen, supported with official low-cost credits,een the most successful in winning Olympic orders. In addition to0 million deal lorOO-bed Kosmos Hotel. French firms have been0 million worth ot" color TV cameras and mobile communication equipment andillion worth of computers. German sales revolve aroundillion contract for the new Shcrcmet'yevo Airport passengeride array of smaller deals ranging from outfitting the Olympic Village discotheque and hairdressing salons so TV' support and the sale of goods and service: by Daimler-Benz is also being supplied. Japan is the third leading Western supplier, providing moreillion worth of broadcast and electronic equipment.
x
andful oflab testingartificial track surface materials, and aservice minicomputer for the Kosmoswere signed with USombination of factors accounts for this weakack of competitiveggressive competition from Westand Japanese suppliers who have comparableoviet reaction to delays in approving export licensing for the TASS computer deal (finally
" Th< US number only includes direct purchases. Eicluced from 'M tally arenial deals and ccuipincnl being taken to the USSRUS firmsare lo be icmiccd after ihe garnet end. the totals af "hick may beeviewicense applications, for suir-p'e.moiei [ironvideo recorders atone have Seen ordered 'or (he Olympics:O noi fcnaw bow many of these have aciuatly been sold JxT
Table 2
USSR: Selected Olympic Contracts With Western Suppliers
Country and Fit-ii
US S
Geimnny
in
Reulier
Thy lien
Sierr.ag Rosentiimer
2.3
Airpori Terminal
Inenlabeik He-pen Kannegiesser
it
undo ecuipment.
Beit!
Hotel.
cameras/eat torn units.
computer system
Trade De-elor. ment
-'i'v
line.
Electric
for TV relay facilities.
J
for Tallinn TV
Kinedom
Compute!*
results system.
.Xerox
duplicating equipment.
Inscunxnit
i
monitoring control eauipneni.
ision
'-|
ronie eqoipnien;
Electric
paging system
Pickering
ting
Suics
anufacturing
n track material.
drug letting ecuipme.it.
system for Kosmos Hotel.
cma -is Oiler rich
oguipntcnt.
A G. Osttetich
system.
turnednd (') Sov:et decisions toscale back the scope of foreign purchase* (Soviet planners, for example, scrapped plans to ;up Western fast-food restaurant service firms because of mounting foreign costs and because they viewed such investments asof marginalJMf
The US presence will not be missing tn Moscow.Numerous American as wdl as otherfirms have purchased "official supplier" status to0 Olympics cither for the title's advertising value or to help the firm break into the Soviet market. Agreements between the Organizing Committee and Western suppliers specify the donation of cash,or both, the values involved depend on the goods' importance to the Soviets and/or the level offor exclusive supply richis. Most cash donations have been in00 range, bul Coca-Cola paid S6 million in cash and is providing S4 million in beverage concentrateew bottling plant for the exclusive right to supply soft drinks at the Olympicsosition the company has held. Similarly. Levi Strauss is0 sets of blue jeans and jackets for officials and workers attached to the games.^
Firms dealing in expensive, high-technology products, to whom puNiciiy is of little value, have shown littleecoming official Olympic suppliers. The Soviets have had to purchase computers andequipment. The exceptions ire those situations where supplier agreements are pariarger agreement combining the saleestern company's product alongona Iexample, the sale of photographic supplies by Kodak-Pathe (France) and sports uniforms by AdidasV)
Moscow hit been experiencing some problems wiih Western supplied equipment.omputerized air traffic control (ATC) system for the Moscow regionessage-switching computer for (he Soviet news agency TASS may not be ready for next summer's Olympic Games. The Soviets preferred and initially planned to purchase US equipment for these projects. Cost and embargo difficulties forced them to turn to West Europeanecision largely responsible for<
Financingntci
The Soviet Union standsain substantially from hosting0 Summer Games, moti obviously simply byuccessful Olympics. Much will depend on ho* ihe USSR handles the games If ii is unable lo cope wuh the foreign tourists. Soviet society could come off badly. Moscow clearly is aware of this possibility and counts on avoiding ii through an all-out construction program and crash training courses geared to catering io Western tastes and needs The other ma/or potential pitfall will be the degree of interaction of Soviet and Western citizens How closely tbe Soviets can control this interactionuestion mark^tj
ost standpoint the net economic outlay is small. Revenue programs such as ihe national lottery should help to recoverillion-ruble direct cosi of Olympic snoris facilities. Based on an accounting model of known and estimated hard currency cash flows and fairly conservative assumpiront regarding residual tourism earnings after ihe games, the Olympic effort shouldet revenue generating project for ihe USSR. Our calculations indicate Moscow could breaka discounted cash flowus foreign costs as soonevenues arc being maximized largely through insistence on prepayments of rights, fees, and accommodations by tourists while expenditures are being held down through the use of low-cost Western credits ^tf^
Tbe indirect costs of hosting the games, however, may be considerably greater. For the most part the indirect costs arc intangible and cannot be measured As already noted, emphasis on the Olympics has been at the expense of other programs, especially allocating consiruciion resources and mobilizing and training labor, (u)
Sources of Rexnuc. The Soviets stand to earnincome, in both hard aad toft currencies, from the Olympics. In line with its goal to make the games as self-supporting as possible, iheommiitee is raising revenueet of
prof rami very much as was done in Montreal and Munich. Like the Olympic expenses, most revenuee in rubles or other East European currencies The largest caraer of soft currencies haseries ofin the Soviet Union and "Sportloto" in Hungary. Czechoslovakia, andBy the end of .these lotteries had already raised closeillion rubles, an amount exceeding the Soviet estimate of domestic outlays for Olympic-related ipons facilities. Roughlycicenc ofilfiOfl event tickets for the games are beingast European visitors: this sale should bring in aboulillion rubles. Soviet organizers are forgoing substantial additional revenue by subsidizing theillion tickets sci aside for Soviet spectators These tickets will be distributed through trade unions, enterprises, and collective farmspercent discount from regular prices, which the Soviets claim are geared to Western incomes and thus beyond the means of ordinary Soviet citizens.4jt1 f
Rut in terms of the number and extent of promoiions. the bulk of the Olympic revenue effort has been directed toward hard currency countries and their tourists. At present, the Soviets should recover roughly half of their hard currency outlays of SSOO million with Western revenues (table 3]
The Sovkiscollect more irunO million from broadcasthe West atone The mostof these deals is7 contract bet*een Gostcleradioand the National Broadcastingwhich has exclusive US broadcast rights for ihe games. The SS7 million agreement provides the Sovietsillion for the construction and equipping of the television ond radio center at Ostonkinoillion payment for broadcast rights (another SI) million rights fee was paid directly by NBC to thehese payments are being made in four yearly installments, the lastnd cover all of NBC'l financial commitment None of NBC's television equipment is to be left behind The Organizing
Committee is sealing smaller deals with TV networks
else* here, such as0 million).
nd secondary markets in Asia.
Africa, and*
Tiiblc 3
US!
Anticipated Olympic Hard Currency Earnings
rigbta
Slates
tickets
:our package
receipts
receipts
coins
ten
souvenirs
Foreign spectators will account for another large block
of hardillion.
Most of0 noa-Communist tourists expected, including all US visitors, are being required to buy an all-inclusive packjge deal that includesmeals, and tours.day US package will costxcluding air fare We assume other
Western tourists, mostly Europeans, "illess extensivehese revenues, due in full to tmourisi by the endill total moreillion Tourists will undoubtedly make miscellaneous purchases during their stay (souvenirs, extra meals, and thec assume sundrywill average SIer person per trip for Americans andor other Westerners,otal of close to SIO million. Our estimate of average sundry purchases may be overly conservative. Even with substantially higher average daily outlays, however, the totals would not change appreciablythe average tourist miscellaneous expendituresayoreill on or so to overall receipts >C
-
The USSR alio require* (hat ai leaseS tourists fly Aeroflat to and from the USSR. If one-third of other Western lOurim aUo fly on theOfficial Olympict prevailing market fare* the Soviet* would take in justiluon in hard currency. Aeroflot originally planned toarge number of theSoviet version of (he Airbusapacitylthough the current model of the* not capable of long-range Trans-Allanuc service, new versions of there available in sufficient quantities to handle the anticipated passenger load.
As main agents for foreign visitors, lntourist and the Central Council for Tourism will distributeillion event tickets allocated io all foreigners. The Soviets expectf these tickeis. priced on average. will be bought by tourists from hard currency countries, bringing the Soviet* S7 million.
The Organizing Committee is also overseeing the sale of silver, gold, and platinum Olympic commemorative coins. Inhe Soviets reached agreement with several Western customer* including OccidentalCompany and Larard Frcres et Cie. of France for thea fixedillion in ruble denominated coins. Sales have been less than anticipaied. however, and probably will notillion, tbe amount sold under ihe Mooirealcoia program. Inoreover, the USSR indicated that it had unilaterally canceled .isof coins to the West because of the rapid runup in Western metal*n all, the Committee may make aboutillion on the sales of medals, special seis of stamps forndouvenir*.
Foreigncontributed cash, sports equipment, and other goods to the Olympics as noted earlier. We believe gross cash receipts from these contribution* mayillion. Ingossirakh. tbe Soviet insurance enterprise, will insure foreignfficials, andduring their stay in the Soviet Union, coverage will apply to cars, TV gear, and spoils equipment as well as personalotal premiums, however, probably will be small,ew millionn*^
The Soviet Union cannot expect io earn much hard currency from Third World and East European ;ourisis since most will settle their bills in soft currencies. Among East Europeans, only Yugoslav citizens may be required io pay in hardj^
Balancing Costs and Revenues. The Soviets have been able to keep hard currency outlaysinimum through extensive use of low-cos( Credits and requiring that revenues be prepaid, effectively shifting mosi of the Olympic payments burdenhen increased tourist revenue will be available to offset loan payment schedules. On (he revenue side virtually all receipts related to Ihe Olympic* should be in hand by the time the games begin. The lastillion payment for US broadcaii rights is due in April, while package tour fees for accommodations are due by ihe endx
' Meal of those who-illrequited lopjylo harecan beto brinj In fir leu teenac than Wtiitri tntilcn because of (I) greater tie of nocdii iranspxiaiion, such ai it lie. bul. or car. lo the Soviet Olympiche uscof leueiptiuivc iccommoaiitoru suhascanpint (rounds and siti&oi hostel* father than hotels,he purchase, on average, of lew ctpciitvc event tickets, lu)
)
USSR:
Estimated Net Hard Currency Olympic Flaws
calculations show that next year Moscow will essentially break evenash flow basis and.1illet profit We believe our assumptions are generally conservative with respect to post-Olympic tourism earnings. Not unless post-Olympic tourist utilization drops belowercent will Moscowet hard currency cash drawdown. Wc also ran through an alternative calculation to measure the saving from utilizing Western Credits. Without use of Western crediis. the Soviets would have had additional outlays ofillion7 alone and probably would not break into the black until5
USSR: Western Suppliers for the Olympics
ConirKiS Si
CofriUa
or-fate for training tudiuiri
Gcnbh.
HuppTHbulOh
equipment for ihr OUmpte
uMn. for Iht
uiivio room io Mateo*.
Of
MbMturvMiaaco
ncial wpekrs
turn-ear.
F.
d>
Spiein
a'dtquipmeai
A.G.
iiki.
fine
Feinpaoiere Gmbh
product!
ComulUnf
Gmbh
of
Eihu
fitictt
:i
oo*oa oa prodwru aurUwdm
USSR: Westernor (be Olympic* (continued!
Viluf commcni* contnei Valueususd
l-auki Ekcutc Company
line (o'.-ictuity bulbs forheats.
, (
lek-i. uon relay
.uc hi Ltd
for TaUin. TV mm.
mm*,,
Co. Ltd. *
iad -am
neU
K. MiluooGcodi Lid.
Kogaku KK
Sum
anulaciurini
run trick.
drug testing
".II l
syiicmfo.
KosmofHoci
d Ena-aeerioa
iaapoeuo-eo-.jo-nc fatAirport
fw riassn to
j wft en-k.
lUnnBianbralM. il.sg punt (to be con-.trusted Oy the Mdndil lunfor concentrate
nc.
andpoio ceniptnen i
Mat* fact snag
paol
sums*
and aindix it in (or i>
official*.
Caip.
rceoideii.
Bo-cs
Eeuipment.
Wh-ky.Jr.
Company
cum.
Factory Spom
nihillympic and
Kinadoo
om.
(oe Olympics ruuiU Kficr
Xeiw li
and duplicating; ttiuipmat.
iMtrumcnu
LM.
lelcviioti
nvauionag
Senrtdvt- fl*
Eflu-pmen: Ltd.
Electrvc ompany
lyittmi
Pickering Lid. 11
maehi^ety
carcar cop librarv
USSR: Western Supplier! for ihe Olympics (conlinued)
Value (Million IKS)
vupptif fi
and fold
U4.
neu.
me Mockinuih
product
tmvfXm
Rubber SpA
Carnicli
SpA
dencc*
catering, and oar earn urn* ni
ill SpA
J-.'
cion
ele, it item.
iBootinf and tound iE>me,>l
mi Oiiertich
comc-mrm
suppliers
Gmbh
founuiM. cup
Value (Million OS 11
me nil
Oiueric*!
ijiiem
iu poller*
tope-tier*
Group. Lutein Ociuon
tape*
Initrna* tio-al
and bailcl-ball equipment.
Carter cop 1ibrary
rights3 million:
US contract callsillion in payments (SIS millionillionillionillion.
The Japanese deal calls for four equal payments totalingillion.
Eurovisionillion contractresumably with payments due9
The value of contracts in other smaller markets has not been reported. Moscow reportedly has alreadyeal with Australia and is currently-negotiating LDC markets rights, (u)
There willet addition, countrywide,0 new hotel beds suitable for Western (hard currency)day tourist seasonpercentwill mean, on average, anourist days each year. (An average Western touristay on air fare, accommodations, meals, and the like, the prevailing IntouristtT5*
The Soviets will earn anillion overseas from the sale of Olympic commemorative coins; half of this income will bealf
The Soviets willillion from official suppliers and sponsors fees which on an individual basis range from0 (The value of in-kind donations made by official suppliers is only referenced if explicitly mentioned in source material.)
X
The Sovieis will earnillion from the sale of miscellaneous Olympicandequally9JW
Moscow stands to take inillion from ticket sales io Westerners X
Expense*
All dealsillion are assumed to have been paid for in cash wiihin six monlhsof contract signing. Deals of more0 million are assumed to be on credit, the loan amortized over eighi yearspercenterCent downpayment iswith paymentsercent at signing andercent at delivery^srf
Discount Bate
Outlays and receipts were discounted6 pricesercent to adjust for inflation and the lime value of money. The rate approximates to the cost of capital in Ihe')
Original document.
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